The Ilitch family organization and mega-developer Stephen Ross will seek nearly $800 million in incentives — a combination of the state's "transformational brownfield" program, a tax abatement and a new funding source from the Downtown Development Authority to support affordable housing — for their proposed collaboration to build or redevelop 10 buildings in and around downtown Detroit.

The incentives include:

• $616 million from the state's "transformational brownfield plans" program, which allows developers to capture a variety of taxes on large-scale projects. The incentive comes in the form of reimbursements over 35 years.

• $133 million in tax abatements, a reduction on property taxes.

• $48 million from a loan program through the Downtown Development Authority, a new financing tool announced Tuesday to offer more discounted rents for lower-income Detroiters.

The mixed-use development includes the construction of six buildings and the renovation of four buildings in the District Detroit. Plans for the 10 projects include 695 mixed-income residential units (20% of those at 50% of the area median income), 1.2 million square feet of commercial office space, 100,000 square feet of retail space and 467 hotel rooms.

The project will only move forward if all the incentives are approved. All of the incentives are subject to further approvals from Detroit City Council, the Michigan Strategic Fund, the Detroit Brownfield Redevelopment Authority and the DDA, as applicable.

"Developers do these projects in order to enhance the community but they have to have a return," Kenyetta Bridges, executive vice president of the Detroit Economic Growth Corporation, which staffs the DDA board, said at a city of Detroit community benefits meeting at Cass Technical High School that was also streamed online announcing the incentives.

Ilitch's firm, Olympia Development of Michigan, and New York-based The Related Cos., Ross' real estate firm, will invest $1.5 billion, which will cover development costs across all 10 projects.

All 10 projects must begin construction within five years, Bridges said. Once construction is started, each project could take between 18-24 months to complete, she said.

In a Tuesday afternoon interview ahead of the announcement, Bridges called the new financing tool for affordable housing that Mayor Mike Duggan announced at the Detroit Policy Conference on Tuesday "an unprecedented step."

"Creating this tool makes sure that we have a downtown that's for everyone," Bridges said. "Anyone who chooses to live downtown can live downtown."

For the District Detroit project, $23.7 million of the $48 million incentive comes in the form of forgivable loans with obligations that extend the 34-year term. Up to $25 million will be reimbursed to the developer after construction is completed.

Bridges noted that while this project happens to be the first to utilize this funding, she expects it will be used for other developments in downtown Detroit.

More: New $1.5B Ilitch-Ross development collab may face skeptical audience at meeting

More: $1.5B District Detroit buildout faced some critical questions at first meeting

If private financing and public incentives are secured, work is expected to begin on the office building at 2200 Woodward as soon as the third quarter of 2023.

If the project is built as proposed, it will ultimately support nearly 6,000 permanent jobs in the city of Detroit and more than $500 million in wages on an annual basis, the DEGC said. The construction work generated by the project is expected to support an additional 12,000 temporary jobs in construction and more than $800 million in wages.

Representatives from Olympia Development of Michigan and The Related Cos. took questions from both the audience and Neighborhood Advisory Council (NAC) members at Tuesday's more than two-hour-long meeting.

NAC member Steven Hawring asked Olympia Development of Michigan why it has taken so long to redevelop the District Detroit area, which Olympia has talked about redeveloping for years. "What do you think you can do better this time to make sure the vision comes to life?" he asked.

“If you go back and think about the vision that was laid out, I think what you're seeing today is just an extension of that," Keith Bradford, president of Olympia Development, said, noting some of the buildings Olympia has built and redeveloped. "It's the growth. As time goes on, we get smarter about what we need to do."

The community benefits meetings, like Tuesday's meeting, are required under a city ordinance pertaining to large developments seeking tax breaks or other development incentives. Seven more public meetings are scheduled, which are set for Jan. 17, Jan. 24, Jan. 31, Feb. 7, Feb. 14, Feb. 21 and Feb. 28.

Contact Adrienne Roberts: amroberts@freepress.com.

This article originally appeared on Detroit Free Press: Ilitches, Ross seek $800M in incentives for downtown Detroit projects