The new tower is part of an overall $3.3 billion redevelopment of Detroit’s New Center neighborhood.
Henry Ford Health and Michigan State University broke ground in June on a new 335,000-square-foot facility on the site next to Henry Ford Health’s One Ford Place headquarters in New Center. The building, scheduled to open in 2027, will be the first physical materialization of the 30-year partnership signed between Henry Ford Health and MSU in 2021.
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Tom Gores, owner of Platinum Equity and the Detroit Pistons, is set to to take over One Ford Place in New Center and create a new neighborhood with housing, a hotel, retail and walkable areas, as part of the project. That project, alongside the Henry Ford Health, MSU research center, is supported by a $231.7 million tax incentive package that was approved by Detroit City Council in February.
The total brownfield development is projected at $773 million.
Henry Ford Health has not, at least yet, sought public subsidies for its planned hospital tower.
The Henry Ford Health-MSU center will focus on cancer, neuroscience, immunology and hypertension research. The new center will serve as a home for the Nick Gilbert Neurofibromatosis Research Institute, where researchers from all over the country, funded by the Gilberts, can put their collective work to use. Nick Gilbert died in May last year of complications from the disease, which causes rapid tumor growth on the nerves of the body.
Dan Gilbert — who rolled up his jacket sleeve prior to speaking at the podium at the Thursday groundbreaking, revealing a tattooed portrait of his late son on his forearm — said the overall development will add to the city’s reputation.
“It’s another beautiful day for our city,” Gilbert said.
The groundbreaking comes only weeks before Henry Ford Health officially takes over eight Ascension hospitals in Southeast Michigan. Under the no-cash deal, the hospitals and an addiction treatment center will be rebranded under Henry Ford Health. The deal is scheduled to close Sept. 30.
The combined entity would employ 50,000 workers at more than 550 sites across the state, and effectively double the size of Detroit-based Henry Ford Health. Henry Ford Health is growing its acute care hospitals from five to 14, surpassing Corewell East's (formerly Beaumont) footprint in the region of eight hospitals. Henry Ford Health also operates a hospital outside the region, in Jackson.
This story first appeared in Crain's Detroit Business.