In June Ford announced that it had purchased the Michigan Central Station and several other properties in the neighborhood for the purpose of building a tech campus where as many as 5,000 people eventually could work.
It had been implied, at the time, that tax abatement would play a role in the development, but the specifics had been vague, with Ford opaquely sharing last month that it planned to spend nearly $740 million on renovations and would seek from "federal, state and local economic development groups and officials" at least $250 million in "tax or other incentives" to support the project.
On Monday, the DEGC broke down how this would ideally play out — with $103,591,804 in tax incentives coming from the City of Detroit and $134,967,693 coming from other sources. The total estimated abatements come out to $238,559,497.
The tax abatements would come from an array of requested incentives.
According to the presentation, Ford is asking for:
*$208,796,791 in tax abatements for being in a Renaissance Zone. This is an abatement of real and personal property taxes, city corporate income tax, and utility users tax. It would occur over 30 years. Nearly $90 million would come from the City of Detroit.
*$8,056,085 from the Commercial Rehabilitation Act (P.A. 210). It would occur over 10 years. Nearly $4 million would come from the City of Detroit.
*$18,763,677 from the Obsolete Property Rehabilitation Act (OPRA). This act allows the taxable value of a property to be frozen at its pre-improvement value with some exceptions. It would last 12 years and nearly $9 million would come from the City of Detroit.
*$2,933,944 from the Neighborhood Enterprise Zone Act. This law allows taxable values of property to be frozen at their pre-improved value. This incentive lasts 17 years (it reduces at 15 years) and just over $1 million would come from the City of Detroit. The benefits accrued would affect future condo owners, rather than Ford.
To come up with these figures, the DEGC said it analyzed the economic benefit of having Ford move to Corktown. It said it anticipates a $370.1-million net fiscal benefit to the city over 35 years.