DETROIT (WWJ) — A final decision on millions of dollars in requested tax abatements to support a $3 billion investment — led by Henry Ford Health, Michigan State University and Detroit Pistons owner Tom Gores — has been put on hold.
Detroit City Council on Tuesday voted to delay the vote on the so-called “Future of Health” project in the city’s New Center neighborhood, with President Mary Sheffield saying it’s “best if we would postpone” the vote after receiving additional documentation in the days prior to Tuesday’s meeting.
The proposed $3 billion expansion of the Henry Ford Health System would include a 21-story hospital and patient tower, a medical research center in partnership with MSU and a mixed income apartment building backed by Gores.
When the project was unveiled just over a year ago, Mayor Mike Duggan said the development would give Detroiters “more opportunities to live, work and play, right here in this neighborhood."
But after three hours of public comment on Tuesday, the vote on tax incentives that could total up to $300 million over more than 30 years for the MSU and Gores aspects of the project was put on hold.
Detroiters siding on both sides of the development let their opinions be heard, including Russ Velant, a retired treasurer of the State of Michigan Apprenticeship Council.
“Henry Ford is using their financing and doing it properly. However, we have to oppose Tom Gores building luxury housing, oppose us funding Tom Gores building luxury housing.”
Former Pistons big man Rick Mahorn spoke in favor of the tax incentives, saying it would grow the New Center area in terms of business and job creation, as well as “put Detroit among the national leaders when it comes to the best healthcare.”
Denise Brooks-Williams with Henry Ford Health says all three aspects of the deal are critical to the project's success.
“You’ve heard the vulnerabilities of not having the abatements tied to housing, but I would remind you that those abatements also support the research facility. So when we say that we need to have it all come together, we need to have it all come together,” she said. “We haven’t envisioned it being separate, because that truly is not what we think is transformational for the community.”
With investment money Gores, HFHS CEO Bob Riney said at last year’s unveiling of the project that new housing, retail, dining and green space would be brought to the area. Exact details of the mixed-use development have not yet been disclosed.