$616 Million in Development Incentives Approved for District Detroit

The “Transformational Brownfield” incentives approved by the Detroit City Council for the $1.5 billion District Detroit still require approval by the state.

1 minute read

March 31, 2023, 7:00 AM PDT

By James Brasuell @CasualBrasuell


Detroit Sports Arena

Linda Parton / Shutterstock

The Detroit City Council approved a $616 million “Transformational Brownfield” development incentive for the $1.5-billion District Detroit project, proposed by the Ilitch organization's Olympia Development of Michigan and New York-based Related Cos.

According to an article by Dana Afna and JC Reindl, most of the development incentive included in the project’s community benefits agreement would generate revenue by capturing future state-level taxes, “including state income taxes paid by workers and residents in the planned buildings.”

“The balance would come from future property taxes that would otherwise go to the Downtown Development Authority, or DDA,” according to the article.

“Separately, the developers also will get from the DDA a $23.7 million forgivable loan and $25 million in cash reimbursement for infrastructure improvements.”

The Transformational Brownfield incentive will still require approval by the Michigan Strategic Fund.

The District Detroit development proposal, which has been on the books for a decade, “calls for 10 new and rehabilitated buildings for 1.2 million square feet of office space, 695 apartments, retail spaces and two new hotels: a 14-story, 290-room hotel adjacent to Little Caesars Arena and an adaptive reuse of the 10-story Fox Theatre office building, 2211 Woodward, as the 177-room Fox Hotel,” according to the article.

The article, linked below, provides more details on the politics of the community benefits agreement approved by the city this week.

Tuesday, March 28, 2023 in Detroit Free Press

Sweeping view of Portland, Oregon with Mt. Hood in background against sunset sky.

Oregon Passes Exemption to Urban Growth Boundary

Cities have a one-time chance to acquire new land for development in a bid to increase housing supply and affordability.

March 12, 2024 - Housing Wire

Aerial view of green roofs with plants in Sydney, Australia.

Where Urban Design Is Headed in 2024

A forecast of likely trends in urban design and architecture.

March 10, 2024 - Daily Journal of Commerce

Cobblestone street with streetcar line, row of vintage streetlights on left, and colorful restaurant and shop awnings on right on River Street in Savannah, Georgia.

Savannah: A City of Planning Contrasts

From a human-scales, plaza-anchored grid to suburban sprawl, the oldest planned city in the United States has seen wildly different development patterns.

March 12, 2024 - Strong Towns

Aerial View of Chuckanut Drive and the Blanchard Bridge in the Skagit Valley.

Washington Tribes Receive Resilience Funding

The 28 grants support projects including relocation efforts as coastal communities face the growing impacts of climate change.

March 18 - The Seattle Times

Historic buildings in downtown Los Angeles with large "Pan American Lofts" sign on side of building.

Adaptive Reuse Bills Introduced in California Assembly

The legislation would expand eligibility for economic incentives and let cities loosen regulations to allow for more building conversions.

March 18 - Beverly Press

View from above of swan-shaped paddleboats with lights on around artesian fountain in Echo Park Lake with downtown Los Angeles skylien in background at twilight.

LA's Top Parks, Ranked

TimeOut just released its list of the top 26 parks in the L.A. area, which is home to some of the best green spaces around.

March 18 - TimeOut

News from HUD User

HUD's Office of Policy Development and Research

Call for Speakers

Mpact Transit + Community

New Updates on PD&R Edge

HUD's Office of Policy Development and Research

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.