Great Lakes Wire

SBAM President and CEO Brian Calley discussed newly proposed changes to Michigan’s SOAR fund on the Small Business Briefing. Democrats are considering linking next year’s budget to an economic development reform proposal that could transform Detroit’s Renaissance Center (RenCen) from General Motors’ headquarters to new housing and a regional hub for mass transit.

Behind the scenes, General Motors, the Renaissance Center’s owners, and mega-developer Dan Gilbert’s Rocket Companies are advocating for reforms to Michigan’s corporate incentive fund – the Strategic Outreach and Attraction Reserve (SOAR) Fund – which is set to receive $500 million in corporate income tax revenue in the Fiscal Year 2025 budget, according to multiple sources.

During the Detroit Regional Chamber conference on Mackinac Island, Dave Massaron, General Motors’ chief economic development and real estate officer, and Jared Fleisher, vice president of government affairs for Rocket Companies, lobbied lawmakers and other interest groups to support the proposal.

The proposed legislation – HB 5768, HB 5769, and HB 5770 – allocates $600 million annually into the SOAR Fund over the next decade. Of this amount, $250 million annually is designated for grants to large corporate developments, $200 million for significant transit projects, and $100 million for affordable and workforce housing.

Fleisher testified in favor of the bills during a House Economic Development and Small Business Committee hearing. He argued that adjusting SOAR would promote good transit and affordable housing that create desirable communities. “This is a package that brings it all together,” he said.

MIRS has learned that if some Democrats decide to proceed with this idea, it will involve more than just funding developers to transform the Renaissance Center into apartments and commercial spaces. The plan includes various projects such as infrastructure improvements, transit enhancements, and local education opportunities aimed at making the surrounding area more attractive.

The Renaissance Center project would not be the sole recipient of grants allocated for corporations; several other projects are also under consideration by the Michigan Economic Development Corporation (MEDC).

Revamping Detroit's iconic skyline remains a priority. Ensuring that the riverfront property remains a business hub connected to key areas like Oakland and Macomb Counties could preserve its regional significance.

One idea being considered involves tying up $600 million per decade into one large bond proposal so funds can be used upfront for transformative projects across Downtown Detroit and other parts of Michigan.

The Renaissance Center has been occupied by General Motors since 1996. In April 2024, GM announced plans to move out in 2025 to a smaller space in Gilbert’s Hudson's building. Bedrock will be involved in repositioning RenCen following GM's departure. A report indicated that 80 percent of current office occupiers have adopted or will adopt hybrid work schedules post-COVID-19 pandemic.

MEDC Public Relations Manager Danielle Emerson confirmed that while RenCen is recognized as an iconic component of Detroit by MEDC officials like Quentin Messer Jr., it has no specific designations or protections assigned by either MEDC or the State Historic Preservation Office.

Senate Economic and Community Development Chair Mallory McMorrow expressed excitement about retrofitting RenCen as housing but noted she hasn't participated in legislative conversations about it specifically. She emphasized balancing funding between developing new sites versus redeveloping empty or brownfield sites through economic incentives.

Rep. Tom Kunse voiced opposition against using state funds for RenCen's transformation due to his district's financial constraints. He criticized previous allocations of SOAR Fund incentive grants benefiting GM without adequate returns for taxpayers outside Detroit.

Governor Gretchen Whitmer supports House bills aimed at delivering long-term resources for job-creating projects alongside a balanced budget due by July 1 for FY ’25.

Article courtesy MIRS News for SBAM’s Lansing Watchdog newsletter