Detroiters are pushing for what some say is the most comprehensive list of community benefits yet under a law triggered by major construction projects that seek tax incentives.

Weeks of negotiations between a development team made up of Henry Ford Health, Michigan State University and the Detroit Pistons and a neighborhood advisory council of residents reached a major milestone Tuesday for a $3 billion project in New Center. The resident group presented roughly 150 demands for the entities to invest hundreds of millions of dollars in neighborhoods adjacent to the hospital expansion and housing project. 

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The demands, presented publicly for the first time Tuesday, aim to address issues related to housing, talent pipelines, health care and education access, neighborhood blight, environmental justice and recreation opportunities. The list includes financial contributions over the lifetime of tax abatements, as well as the creation of new programs and initiatives in partnership with community organizations.

“These are big asks from the developer and we’re making a big ask for the community,” said Joanne Adams, vice-chair of the council. “Public tax dollars really do need to be used for the public good, and that’s part of the purpose here. All these benefits seem like really big numbers, but they can be paid for by billionaire developers and they can realize a profit still. To mitigate the impact on the community, they could accept a little less profit.”

Representatives for Henry Ford, MSU and the Pistons had little to say about which demands are likely to survive the negotiations process. They are taking time to review the lengthy list and will present a response at the next meeting on Dec. 5. Another meeting scheduled for Dec. 12 could mark the end of the negotiations, which results in a signed agreement ultimately approved by the City Council, which resumes meetings in January.

“We have worked very hard over these last few weeks to try to incorporate, as much as we can, the wishes that are coming from all areas of our community, our neighbors and various organizations within the community,” said Lynda Jeffries, chair of the advisory council. “This is an exhaustive list of benefits but certainly represents what we see as the needs here in the community.” 

Michelle Jackson is a Detroit resident who served on a neighborhood advisory council that negotiated benefits with Stellantis for the automaker’s eastside plant expansion. She urged the advisory council to take their time to include clear timelines and funding amounts in the deal, expressing regret for not doing the same with Stellantis.

“(A few) weeks is really not enough time for folks that are trying to go up against big organizations and big companies,” Jackson said. “They’ve been planning this for years.” 

The advisory council’s  list includes increasing the number of “affordable” apartment units, providing rental assistance and funding home repairs for residents in adjacent neighborhoods, adding healthcare clinics and creating a healthcare fund for underinsured residents. Other provisions target investments in job training programs, programs to hire Detroit construction workers, hospital staff and increase the percentage of Black doctors. The list also seeks to exempt Detroit public schools from tax captures, redevelop blighted properties like the former Fairbanks School and provide a range of protections from construction impacts.

The “Future of Health” development plan includes a new Henry Ford Hospital campus, a joint research facility with MSU and three residential housing buildings financed by Detroit Pistons owner Tom Gores. The developers are seeking a combined $273 million in tax incentives, of which 80% would go toward Gores’ housing projects. 

The Pistons organization will seek $219 million in state and local tax incentives to help fund the $322 million housing project, while MSU and Henry Ford will seek $54 million in tax breaks from the city to help cover a portion of the $450 million investment for a research building and a parking garage. 

No tax incentives are being sought for the $2.2 billion hospital campus expansion, because Henry Ford Health is a nonprofit organization and does not pay property taxes.

The housing developments will create 662 new apartment units. Rent is reduced in 133 units to be affordable for people earning $33,150 – half of the area median income for Southeast Michigan. Detroit’s median income is $36,453, according to the U.S. Census Bureau.

Rent for the remaining 529 units would be set between $1,340 and $2,830, averaging $1,844 per month.

The neighborhood council wants to raise the number of “affordable” units to 199, increasing from 20 percent to 30 percent of the total units. They requested lower rental rates for half of those units for people earning $19,890. 

The group also called for a 10-year rental assistance program providing $13 million in rental subsidies for long-term Detroiters living in the impact area. The program could be modeled after “Live Midtown” and “Stay Midtown” cash assistance programs created more than a decade ago.

Developers were asked to make annual investments for the duration of a transformational brownfield tax reimbursement that has yet to be approved. The brownfield deals typically last 35 years. 

The neighborhood council is pushing for the following investments, calculated based on the 35-year brownfield period unless otherwise specified in the request document: 

• $350 million for community development corporations to administer a home repair grant program
• $105 million for a community land trust to steward affordable housing and home ownership projects  
• $52.5 million for the city’s affordable housing trust fund
• $17.5 million for a senior shuttle to take residents to grocery stores, shopping areas and medical appointments
• $11 million homebuyer downpayment assistance program for longtime residents 
• $8.8 million investment for nonprofit mental health clinics
• $3.5 million for an affordable senior services center 
• Between $3 million and $10 million for a community investment fund 
• $1.25 million for skilled trade training programs 
• $1 million over 10 years for New Center Park
• $1 million over 10 years for increased programs at the Joseph Walker Williams Recreation Center 
• $1 million over 10 years for a community air-monitoring program
• $250,000 over 10 years for other neighborhood parks and public spaces