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Development



Mayor and City Council Strategy on Community Benefits:
A Partnership That’s Working



In the last two years, the Mayor and City Council have committed to a partnership to make sure that every major development project in Detroit that receives any city financial support must agree to specific commitments for community benefits. In each case, those commitments are included in binding contracts with the developers, enforceable by the City.

The result of that partnership has led to unprecedented success in attracting new investment to the City with community benefits commitments.

In the last two years, the Mayor and Council have concluded 12 major projects with contractual community benefits commitments, with 3 more projects currently pending. The details on those projects are as follows:


City of Detroit Development Projects with Contractual Commitments to Community Benefits 2014 - 2016


Project Estimated Employment Investment Approval Date Project Details and Required Community Benefits
Hartford Village Construction jobs $16M residential new construction for seniors Groundbreaking – August 2015 24% of the 84 units required to be affordable
Recovery Park 128 permanent jobs $15M commercial development City Council approval of Development Agreement – 11/24/15, 9-0 vote Urban agriculture project focused on employing individuals with barriers to enter the workforce; minimum of 60% of employees required to be Detroit residents.
Sakthi Automotive 650 permanent jobs $30M facilities expansion Three City Council approvals:
EDI Fund Allocation – 7/28/15, 9-0 vote
Zoning – 11/10/15, 9-0 vote
Renaissance Zone – 11/17/15, 9-0 vote
Preserving the abandoned Southwestern High School to build a manufacturing and training facility; Required to hire 650 employees and a minimum of 51% of construction jobs required to be filled by Detroiters.
Strathmore 10 permanent jobs; 200 construction jobs $30M residential rehabilitation Groundbreaking – January 2015 40% of the 129 units required to be affordable
Orleans Landing 300 construction jobs $60M residential new construction Groundbreaking – October 2015 20% of the 270 units required to be affordable
Griswold Micro Apartments Construction jobs $34M residential construction Historic District Commission approval – 2/19/15 39% of the 218 units required to be affordable
Crown Enterprises / Linc. Logistics 150-200 permanent jobs; 300 construction jobs $20M facilities construction Economic Development Corporation approval – 3/11/15 Construction of new 500,000 sq/ft logistics facility; A minimum of 51% of construction jobs required to be filled by Detroit residents and 30% of construction contractors required to be Detroit-based
Ally Financial 1,500 permanent jobs $55M buildout of office building Downtown Development Authority approval – 3/31/15 Required to employ a minimum of 1,200 workers and partner with City to promote job opportunties for Detroit residents
81 Peterborough Construction jobs $10M residential rehab City Council approval of Development Agreement – 4/5/16, 8-0 vote 20% of the 29 units required to be affordable
Old Tiger Stadium 200 estimated retail jobs; 237 construction jobs $33M mixed-use and 15.5M
Sportsplex new construction
City Council approval of Land Trasfer Agreement – 11/24/15, 9-0 vote 40% of retail required to be subsidized to encourage small businesses and entreprenuers; 25% of the 125 residential units required be affordable. Sportsplex will support PAL’s athletic programming for Detroit children
Brush Park A+B 200 construction jobs $75M residential new construction Two City Council approvals:
Tax Abatement – 11/17/15, 9-0 vote
Development Agreement – 11/24/15, 9-0 vote
20% of the approximately 400 units required to be affordable
Paradise Valley Cultural District TBD $52M estimated development Downtown Development Authority approval – 6/29/16 Creation of a Downtown commercial and entertainment district that commerates the historic legacy of the historic, African American Paradise Valley neighborhood; 17% of residential units required to be affordable

Projects Pending Approvals


Project Estimated Employment Investment Expected Date Project Details and Required Community Benefits
Brewster Wheeler Recreation Center 150 permanent jobs $20M commercial rehabilitation Summer 2016 Saving and rehabilitating a historic City structure and building a restaurant and event space; Providing community event space and green space; office space will be provided free of charge to three community organizations - Alternative for Girls, Slow Roll, and Detroit Chess Club.
South Brush 200 construction jobs $60M residential new construction Summer 2016 20% of the 221 units required to be affordable
Flex-N-Gate 400-650 permanent jobs $95M industrial new construction Summer 2016 New auto-supplier manufacturing plant; A minimum of 51% of construction jobs required to be filled by Detroit residents and 30% of construction contractors required to be Detroit-based


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