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The Michigan Economic Development Corp. announced Tuesday that it has authorized, through its Michigan Strategic Initiative, the redevelopment of brownfield sites in downtown Detroit, according to a plan offered up by billionaire Quicken loan founder Dan Gilbert’s Bedrock Management Services. The approval will generate an expected $2.1 billion through the initiative’s financing tools.
The money is earmarked for four separate projects under one Transformational Brownfield Plan, and one of those projects is the construction of a $909 million, 800-foot tower – slated to be the tallest in Detroit – on the former site of an iconic city department store. The other three projects are a mixed-use building on multiple sites known as the Monroe Blocks; an expansion of the One Campus Martius building, where Quicken Loans is a tenant; and the renovation of two historic structures, the Book Building and Book Tower. The plan for the last two is to create room for office and retail space and possibly for a hotel as well.
The initiative’s approval will allow Bedrock to capture several taxes during various phases of construction and development. The expected net benefit for the state is $3.20 in revenue for every $1 generated for the project through the initiative. In addition, according to REBusinessOnline, all four projects will result in the creation of 15,000 temporary construction jobs.