The Michigan Strategic Fund Board on Tuesday approved up to $150 million in tax capture revenue bonds to support a series of downtown Detroit developments led by Bedrock Detroit.
The bonds, requested by Bedrock TBP Inc., will help finance the company’s Transformational Brownfield Plan, which covers four large-scale, mixed-use projects.
The projects include the Hudson’s Detroit development, a roughly 1.5 million-square-foot mixed-use project under construction and expected to be completed in 2027; the completed redevelopment of the historic Book Building and Book Tower, which reopened in 2023; the completed One Campus Martius expansion, and the Cadillac Square development now under construction.
The proceeds of the bonds will reimburse Bedrock for a portion of costs associated with the eligible activities in its Transformational Brownfield Plan, Nadia Sesay, chief community growth and development officer for Bedrock, said during the meeting.
“Most importantly, these completed projects are already generating tax capture revenues that support Bedrock’s TBP,” she said. “The proposed financing really allows us to access a portion of this tax capture revenues to reimburse capital already invested to support the continued advancement of Bedrock’s TBP fully consistent with this board’s prior approvals. We’re proud of the progress achieved to date through our partnership with the state and Michigan Strategic Fund and we appreciate the board’s consideration of this item today.”
According to a Michigan Economic Development Corporation memo, the bond financing will be backed by several tax capture streams generated within the project areas, including property tax increment, income tax, withholding tax as well as sales and use tax revenues. These revenues will first be used to pay bond debt service, with any remaining funds used to reimburse the developer for eligible construction and site improvement costs, according to the memo.
The Series 2026 bonds are expected to be issued through a limited offering and to close by the end of May 2026.
The Michigan Strategic Fund Board also approved incentives for Adrian Steel Company to expand its manufacturing operations in Lenawee County. The package includes a $320,000 Michigan Business Development Program grant and a five-year 100% State Essential Services Assessment exemption valued at about $228,000.
The project supports a $43 million investment and the creation of at least 40 jobs with starting wages of $30 per hour plus benefits, which is officials say is 33% above the regional median wage of $23.17 per hour. Officials said the incentives are intended to keep the expansion in Michigan rather than competing locations in other states.
cwilliams@detroitnews.com
@CWilliams_DN
This article originally appeared on The Detroit News: Bedrock downtown Detroit projects get $150 billion in state finance aid
Reporting by Candice Williams, The Detroit News / The Detroit News
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