Detroit City Council to vote on $60M tax break for new Hudson’s site project
Dan Gilbert’s latest real estate development project in Detroit is rebuilding the famed Hudson building. He’s asking the city for $60 million in tax breaks over the next 10 years to help finance the project. Mayor Mike Duggan is in favor of the project, but it’s unclear if the city council will approve the move.
DETROIT (FOX 2) – The Detroit City Council is expected to weigh in on tens of millions of dollars in tax breaks for Billionaire Dan Gilbert’s latest real estate project at the former Hudson building site.
The city council postponed a vote on the tax break last week, which would give $60 million to real estate firm Bedrock over 10 years for the construction of the new Hudson building, which is expected to be completed in 2024.
The 49-story building is expected to cost $1.4 billion in construction costs by the time it’s completed. It would bring living and office space to the downtown area.
But some are wary of providing another massive break for a business that would benefit the downtown area while offering little relief for the city’s surrounding neighborhoods. Resident pushback at last week’s meeting prompted some city councilmembers to request a delay in the vote.
One city official who is in support of the tax break is Mayor Mike Duggan.
“Two-thousand permanent jobs. Those 2,000 workers pay city income taxes. There’s 7,500 construction jobs. Those jobs pay city income taxes and those taxes do go to the neighborhoods,” he said. “The police, the fire, the parks and the like. We want this building to be built as large as possible or the long term viability of the city.”
RELATED: Dan and Jennifer Gilbert to invest $500M into Detroit, wiping property tax debt for residents
Gilbert has had his hands in both downtown real estate development and financing neighborhood projects to bolster investment outside the city center.
The city council meets at 10 a.m. to discuss the matter.
