Dan Gilbert and other Detroit and state leaders are expected to attend a groundbreaking ceremony Thursday for what is planned to be the tallest building in Detroit and the state.
The billionaire mortgage and real estate titan plans an 800-foot residential tower on the 2-acre site at Woodward and East Grand River avenues in to replace the former J.L. Hudson's department store building that was imploded in 1998.
The $909 million project includes approximately 330 apartments in the tower and a separate mid-rise building with a variety of uses. A construction timeline last month sets completion for summer 2022.
All told, it is expected to have approximately 1 million square feet with 103,000 square feet of retail, food and beverage space, plus a street-level market; 168,000 square feet of event and conference space; and 263,000 square feet of office space. Another 93,000 square feet of exhibit space is planned, along with at least 700 parking spaces in a below-ground garage.
It's part of a four-project slate attempting to qualify for $618.1 million in state incentives.
The total incentive package for $2.14 billion in construction activity for the Hudson's site project, the Monroe Blocks development ($830 million), the redevelopment of the Book Tower and the Book Building ($311 million) and an addition to the One Campus Martius building downtown ($95 million) includes the following:
$256.3 million in state income taxes on workers expected to be employed in the new properties.
$229.6 million in tax-increment financing, which is the increase in property tax value expected to be caused as a result of the new developments.
$60.6 million in state sales taxes exempted on construction materials.
$51.7 million in state income taxes on residents living in the new buildings.
$18.2 million in state income taxes on construction workers building the projects.
$1.7 million in city income taxes from the Hudson's site project, which are being given back to Detroit through a community-benefits agreement approved by City Council.
All but the construction materials taxes ($557.5 million) will be used to pay off $250 million in bond proceeds over 35 years at a rate of about $15.9 million per year.
The Hudson's project was designed by Detroit-based Hamilton Anderson Associates and New York City-based Shop Architects PC. Southfield-based Barton Malow Co. is the contractor.
The Detroit Hudson's store closed in 1983.