The proposal has already passed the Detroit City Council and the Wayne County Board of Commissioners, said Bryan Holdwick of the growth corporation. "The State has to approve the zones by the end of this year for them to take effect," Holdwick told GlobeSt.com.
The areas considered for zones in the CBD include the Campus Martius property, 18 floors of the Renaissance Center's Tower 500 for possible use by the EDS Corp., 25 acres east of the RenCen, and the historic but vacant Book-Cadillac Hotel property.
"The City of Detroit is investing $70 million in the Campus Martius project, and we want to make this area competitive so that tenants will want to establish here," Holdwick said, adding that tax-free zones allow the city to remain competitive with nearby places such as Ann Arbor and the suburbs of Oakland County, as well as large cities in other states.
The Campus Martius project includes a $350 million office headquarters for Compuware; a 15-story office building above the present Kennedy garage; a 12-story class-A office building on the Hudson block; a world-class hotel for the Farmer Street side of the block opposite the existing Downtown Library; and a 12-floor office/retail/entertainment facility on the Monroe Block.
The project has been slow in developing, however, mostly because tenants are wary of moving in. "It's a tough economy right now," Holdwick noted. "Campus Martius has had some problems. The development agreement requires that a certain number of tenants be signed before the project can continue."
The Clark Street Technology Park also needs assistance, Holdwick said. The former Cadillac Motor Car Co. headquarters, located in southwest Detroit, is already designated as an Empowerment Zone, and has received state funding for infrastructure.
"At Clark Street, we're also trying to add a little extra incentives to move ins," he said. "They've been doing well, but could use other help to finish filling the 88-acre property." He insisted that the State, which must still review and approve the tax-free zones, has not indicated its plans yet.
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