Detroit City Council OKs $60 million tax break for Hudson's site project

DETROIT(WWJ) -- The Detroit City Council has voted 5-to-4 in favor of giving billionaire developer Dan Gilbert's Hudson's site project a $60 million tax break.

The vote came at the end of Tuesday council meeting that lasted for nearly six hours, and several hours after supporters and opponents spoke about the project.

Eva Garza Dewaelsche, President & CEO at SER Metro Detroit, said the project, at Woodward and East Grand River avenues, represents a benefit for the city and its neighborhoods.

"Detroit must have a solid core," she said. "It must have a thriving, vibrant downtown Detroit, bustling with hundreds of businesses and thousands of people working and visiting there. The Hudson's project is exactly what we need to continue to build out city."

On the other side of the argument was east side Detroit resident Brian Silverstein, who urged councilmembers to reject the 10-year tax abatement for Gilbert's company, Bedrock.

"The issue with the Hudson's site is not, you know, whether or not the building should be created, but who should pay for it," Silverstein said. "If Dan Gilbert wants to invest in Detroit, that's great! He's got $20 billion to do it. So, let him use his billion. He doesn't need another $60 million from the pockets of Detroiters in the middle of a housing crisis."

Voting in favor of the tax break were City Council President Mary Sheffield, along with councilmembers Scott Benson, Fred Durhal III, Mary Waters and Coleman A. Young II. City Council President Pro Tem James Tate and councilmembers Latisha Johnson, Angela Whitfield-Calloway and Gabriela Santiago-Romero voted against it.

Sheffield, who had been one of the holdout votes, ultimately changed her mind. "In a perfect world, we would not need tax abatements," she said. "But unfortunately, Detroit has one of the highest tax rates in the nation, putting us at a competitive disadvantage."

Young said his "yes" vote was primarily about keeping workers at the site on the job.

"I think in a time of inflationary times — where gas and groceries are too expensive, and guns and ammo are too cheap, in a time of an oncoming recession — I think it would be irresponsible to not do everything we can to keep those young men and women working," Young said.

Danis Mitchell — with Barton Malow, which is managing the Hudson's project — said the company is committed to helping Detroiters and Detroit businesses.

"We've partnered to launch the $10 million Motor City contractor fund to build capacity for our Detroit-based diverse businesses," Mitchell said. "We have over 26 companies that have been selected, and they will not only receive technical assistance and mentorship, but more importunely increased access to bid opportunities on this project, as well as flexible and low-cost financing to ensure economic stability."

Construction on this development has been ongoing since Bedrock broke ground in 2017.

Since March 2021, the building has been steadily increasing in height, with the office building “topping out” at 220 feet in April of this year. Structural work on the Tower continues and will reach its final height of 685 feet in 2023, becoming the second tallest building in Detroit and Michigan.

The development is expected to be completed in 2024.

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