Dan Gilbert is giving $1 billion to rebuild Detroit’s Renaissance Center, and won’t take a profit

Dan Gilbert, founder and chairman of Rocket Companies and Bedrock, has pledged about $1 billion to a new nonprofit that will redevelop, own and operate Detroit’s Renaissance Center, the former headquarters of General Motors, and the 35-acre east riverfront around it, according to the Oct. 19 announcement.

No profit to him. The money won’t be repaid, and Gilbert and his companies won’t take any profit. Revenue covers operations, debt and upkeep first; any surplus goes to Detroiters. Because the nonprofit is a 501(c)(4), the gift isn’t tax-deductible. Bedrock will manage the $2.2 billion project at no cost.

The partners. GM is putting $250 million toward the nonprofit, the Detroit Free Press reported. The plan calls for demolishing two of the RenCen’s office towers and turning the riverfront into a destination with housing, entertainment and public space, Axios Detroit reported.

Bedrock’s case. “100 percent of the surplus proceeds after the project pays its bills must go back to civic betterment and social welfare,” Bedrock CEO Jared Fleisher said at a city council committee meeting, WDIV reported. He said the 501(c)(4) structure is required because the project would not meet the rules for a 501(c)(3), and that the nonprofit’s bylaws will bar spending on lobbying or politics. Bedrock projects the redevelopment will create 8,000 union jobs and 3,000 permanent jobs, he said. The nonprofit’s board is to be largely recruited by the Rev. Wendell Anthony, president of the Detroit Branch NAACP, the Detroit Free Press reported.

The benefits deal. On Tuesday, Oct. 27, a neighborhood advisory council voted 8–1 to endorse a $43.5 million community benefits package, Axios Detroit reported. It includes $15 million for affordable housing and neighborhood development, $10 million for small businesses and $6 million for skilled-trades training. The vote is a recommendation, not a final approval.

Not done yet. The project still faces questions over its request for nearly $548 million in public incentives, Axios Detroit reported. Critics at public meetings have asked for direct public ownership and revenue sharing with the city. A City Council committee is set to discuss the benefits agreement Nov. 12, and City Council and state approvals are still required, according to Axios Detroit.

Status as of publication; approvals pending.