Businessman Dan Gilbert pledged $1 billion to create a new nonprofit to redevelop and run the Renaissance Center and east riverfront.
The news comes amid an ongoing $2.2 billion effort, proposed by Bedrock and General Motors, to tear down the two RenCen buildings closest to the Detroit River, use the land to expand riverfront attractions and renovate the remaining three towers.
The plan, for which the companies seek nearly $548 million in a range of state and local tax incentives over 30 years, has gotten considerable push back so far as public meetings over community benefits as part of the incentive deal continue. The unnamed nonprofit, announced Monday, Oct. 19, is slated to revamp and own the RenCen and a 35-acre riverfront area, according
to a press release. The next community benefits meeting is expected to take place Tuesday, Oct. 20.
"This iconic symbol of our city and the people's riverfront will be stewarded by an organization dedicated not to any commercial motive, but to public benefit, social welfare and civic betterment, in perpetuity," said Jared Fleisher, CEO of Bedrock, at a press conference Monday, adding that the $1 billion contribution is not tax deductible. Any future surplus after the project "pays its bill" must be reinvested back into the community, he said.
The Renaissance Center redevelopment plan includes a $1.6 billion redevelopment of the remaining RenCen site and a $624 million buildout of the east riverfront.
The Free Press previously reported that Bedrock would contribute $1 billion in equity and debt toward the RenCen portion of the project, with GM contributing $250 million in equity.
Board members of the 501(c)4 organization will include the Rev. Wendell Anthony, president of the Detroit Branch NAACP, and Bill Emerson, former CEO of Rocket Companies. Bedrock will offer project management services to the new organization for free.
Free Press reporter JC Reindl contributed to this report.
Reach reporter Nushrat Rahman at nrahman@freepress.com.
This article originally appeared on Detroit Free Press: Nonprofit to redevelop, own revamped RenCen. Gilbert pledges $1B
