City Council considers brownfield plan for Gilbert’s $2.14 billion in building projects

The Detroit City Council is considering approval of a transformational brownfield plan that would be the first of its kind approved in Michigan under a new state law aimed at reducing financing gaps for large-scale construction projects.

In September, Dan Gilbert’s Bedrock LLC lumped together four major developments and redevelopments in downtown Detroit totaling $2.14 billion, more than four times the $500 million threshold to qualify to capture certain state sales and income taxes under the state’s new MITHrive legislation. The tax captures are designed to bridge the gap that often exists between a project’s cost and how much traditional financing it can secure based on the rents it can command.

Read more

Posted Under: CBOR News