General Motors, Bedrock want Michigan taxpayers to foot $250M for RenCen redevelopment

Two weeks after firing 1,000 employees, General Motors wants Michigan taxpayers to pay $250 million to tear down and renovate the Renaissance Center, Crain’s Detroit Business reported.

GM offered to pay $250 million, and the real estate firm Bedrock said it would pay $1 billion, Crain’s reported, but lawmakers on both sides of the aisle said the companies should foot the entire bill.

In a Nov. 25 news conference, House Speaker-elect Matt Hall, R-Richland, said the proposal was insulting.

“They’re the ones leaving Michigan and leaving Detroit,” Hall said. “So wouldn’t it be a great part of GM’s legacy to just pay to tear down the building and redevelop it? How insulting is it to the taxpayers that these guys say ‘We’re leaving Detroit and we want you guys to pay to tear down the building on our way out?’”

Rep. Dylan Wegela, D-Garden City, also rejected the proposed handout supported by Bedrock, owned by billionaire Dan Gilbert.

“Dan Gilbert has a net worth of $25b. Someone making $50,000 a year would have to work for 500,000 years (saving every penny) to amass that fortune,” Wegela posted on social media. “GM is making record profits. Yet they still have the nerve to ask for a $250 Million handout.”

Bedrock LLC supports the plan. The company posted on social media:

“Bedrock and General Motors announce a conceptual plan to redevelop the Renaissance Center (RenCen) and 27 acres along the Detroit riverfront. The plan preserves the essence of Detroit’s skyline, ‘right sizes’ the RenCen’s footprint, and connects the site to the heart of downtown. The surrounding entertainment district would become a vibrant waterfront destination, drawing international visitors and featuring restaurants, hospitality, residential and market space—complementing Detroit’s award-winning Riverwalk, which draws more than 3.5 million annual visitors to the city.”

The plan would redevelop three towers into a mix of hospitality and housing, create a new pedestrian walkway connecting the city to the riverfront, and remove the base of the complex and the two office towers nearest the Detroit River, according to Bedrock.

“GM has the best possible partner with Bedrock in this effort to redevelop the Renaissance Center,” Dave Massaron, vice president of infrastructure and corporate citizenship for GM, said in a statement. “Nobody has repurposed more buildings in Detroit than Dan Gilbert and his Bedrock team. This is another chapter in their unprecedented commitment to building the best possible future for the city and Michigan.”

The proposal follows a banner year for corporate welfare in Michigan. Since 2023, Michigan lawmakers have approved $4.6 billion in handouts to select, favored companies.