The $3 billion New Center development led by Henry Ford Health, the Pistons, and MSU has moved another step forward today. After a delayed vote last week, Detroit City Council approved tax incentives and community benefits for the development.
The largest part of the development - the new $2 billion+ hospital tower - is not included in the incentive package. What's mainly covered is the residential component of the project - over 600 units in three buildings (two new, one adaptive reuse of One Ford Place), plus a medical research center, retail, community space, parking structures, and green space. These components come in at about $773 million.
According to the Detroit News, the incentives include a Transformational Brownfield tax capture of $231 million over 35 years. This will go to the Michigan Strategic Fund for approval this spring.
Approved community benefits include a $2 million home repair fund for the surrounding neighborhoods, $500,000 in rental assistance, $1 million for a community land trust, a possible redevelopment of the Fairbanks School, $100 million in small business spend, and $310 million in uncompensated care, which will go to area residents seeking care who are under-insured. Also included in the benefits package are parts of the infrastructure already planned, like $90 million for the research center and $10 million for a 1,500-space parking garage.
The development is expected to break ground later this year.
