All of the proposed tax breaks and incentives require multiple layers of public approval at the local and state level.
In addition, more specifics on a series of mixed-use proposals have been spelled out, including a 154-unit, $79 million new apartment building; a new $54 million, 105-unit apartment building; and the $189 million proposed redevelopment of One Ford Place into 403 units of housing.
Overall, the buildings would have 311 studios averaging 540 square feet, with 63 of them being considered affordable; 288 one-bedroom units averaging 749 square feet, with 57 of them being considered affordable; and 63 two-bedroom units averaging 1,076 square feet, with 13 of them being considered affordable.
“We believe this development will provide great benefits for the neighborhood and for the city of Detroit,” said Pistons Vice Chairman Arn Tellem. “The CBO process is part of a healthy public-private partnership and we look forward to working with everyone involved to maximize the positive impact."
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The NAC presentation outlined mostly known designs for the Henry Ford Health development — such as the 21-floor, 1.2 million-square-foot new hospital tower with 877 patient rooms.
But the plan also calls for a new parking garage with 1,500 spaces and the central energy hub, which is projected to make the hospital all-electric.
HFH CEO Bob Riney mentioned the possibility of an all-electric hospital last month, but the system has yet to discuss the plan further. The first all-electric hospital in the U.S. is being constructed in Irvine, Calif. It's likely the new HFH tower will be the second in the country to do so.
The hospital campus will include the construction of 1.84 million square feet of new space, including a new $203.3 million, 150,000-square-foot shared services building. The total campus build-out is projected to cost $2.25 billion, while the other components total about $773 million.
The CBO process — which voters approved in 2016 — requires that developers proposing development projects with a $75 million price tag receiving $1 million or more in property tax abatements or $1 million or more in city land engage with a Neighborhood Advisory Council to establish community benefits. Those can include things like jobs, local hiring, environmental protections, land use programs and local small business and resident inclusion. The community benefits agreement must be approved by the Detroit City Council.
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In February, Henry Ford, MSU and Gores announced the proposal, which includes a massive new hospital tower rivaling the height of the nearby Fisher Building. It would be built on the south side of West Grand Boulevard on the site of the to-be-demolished Health Alliance Plan building at 2850 W. Grand Blvd. Henry Ford would also construct the already planned research facility with MSU on an existing surface parking lot across Third Avenue from One Ford Place.
In September, Dan and Jennifer Gilbert and their Gilbert Family Foundation said they were contributing $375 million to the creation of a 72-bed state-of-the-art physical medicine and rehabilitation facility and neurofibromatosis research center to the hospital tower. It would be managed by Shirley Ryan AbilityLab of Chicago.
The most recent CBO process in Detroit was for the $1.53 billion in new construction and redeveloped buildings proposed by the Ilitch family's Olympia Development of Michigan real estate company and New York City-based developer Related Cos.
Of the Detroit transformational brownfield packages approved, proportionally this one would be the smallest, at about 9.05 percent of the total project cost. The Ilitches and Ross received approval on at least $615 million in TBP funding on $1.53 billion of construction (39.5 percent); Gilbert received approval on $618.1 million on $2.14 billion in construction (28.9 percent).
This story first appeared in Crain's Detroit Business.
