Businessman Dan Gilbert has pledged $1 billion to establish an unnamed nonprofit organization. This new entity is slated to redevelop and operate the Renaissance Center and a 35-acre section of the east riverfront. The announcement was made Monday, Oct. 19, and comes amidst an ongoing larger proposal by Bedrock and General Motors for a $2.2 billion redevelopment effort.
The broader plan, put forth by Bedrock and General Motors, involves demolishing the two Renaissance Center buildings situated closest to the Detroit River. The cleared land would then be used to expand existing riverfront attractions, while the remaining three towers of the RenCen would undergo renovation. For this extensive proposal, the companies are seeking nearly $548 million in state and local tax incentives, which would be spread over a 30-year period.
Public meetings regarding community benefits, a required part of the incentive deal, have continued, drawing what has been described as "considerable push back." The newly announced nonprofit is intended to take on the role of revamping and owning both the Renaissance Center complex and the designated 35-acre riverfront area. The next community benefits meeting is anticipated for Tuesday, Oct. 20.
Jared Fleisher, CEO of Bedrock, spoke at a press conference on Monday regarding the nonprofit's mission. He stated that the organization would be focused on "public benefit, social welfare and civic betterment," operating perpetually and without any commercial motivation. Fleisher also specified that the $1 billion contribution from Gilbert is not tax deductible. He added that any future surplus generated by the project, after expenses are covered, must be reinvested back into the community.
The overall Renaissance Center redevelopment plan, as proposed, is divided into two main components. A total of $1.6 billion is allocated for the redevelopment of the remaining RenCen site itself. An additional $624 million is designated for the buildout of the east riverfront portion, bringing the total estimated cost for the combined project to $2.2 billion. Previous reports indicated that Bedrock would contribute $1 billion in equity and debt towards the Renaissance Center portion of the project, with General Motors contributing $250 million in equity.
The board of the new 501(c)4 organization will include notable community and business leaders. Among them are the Rev. Wendell Anthony, who serves as the president of the Detroit Branch NAACP, and Bill Emerson, the former CEO of Rocket Companies. Furthermore, Bedrock has committed to providing project management services to the new organization without charge.
