Dan Gilbert pledges $1 billion to nonprofit that will own revamped Detroit Renaissance Center
Dan Gilbert pledged $1 billion to create a new nonprofit that will redevelop and own the Detroit Renaissance Center and a 35-acre east riverfront area, Bedrock announced Monday.
The unnamed nonprofit is intended to take control of the RenCen and riverfront land once the current $2.2 billion redevelopment plan is complete, according to a press release. That project is being proposed by Bedrock and General Motors, and would tear down the two RenCen buildings closest to the Detroit River, expand riverfront attractions, and renovate the remaining three towers.
Jared Fleisher, Bedrock CEO, said the nonprofit will be dedicated to public benefit rather than commercial gain. He said Gilbert's $1 billion contribution is not tax deductible, and any future surplus after the project covers its costs must be reinvested into the community.
The redevelopment includes a $1.6 billion overhaul of the remaining RenCen site and a $624 million buildout of the east riverfront. Bedrock and General Motors are seeking nearly $548 million in state and local tax incentives over 30 years.
The plan has drawn criticism during public meetings tied to the city's community benefits ordinance. The next community benefits meeting was scheduled for Tuesday, Oct. 20.
The nonprofit will be organized as a 501(c)4. Board members will include the Rev. Wendell Anthony, president of the Detroit Branch NAACP, and Bill Emerson, former CEO of Rocket Companies. Bedrock said it will provide project management services to the organization for free.
Bedrock is contributing $1 billion in equity and debt toward the RenCen portion of the project. General Motors is contributing $250 million in equity.
