Chemical Bank said it would privately finance the full cost of a to-be-constructed 20-story building to serve as its headquarters in downtown Detroit. But things have changed since that promise — the Midland-based company has merged with TCF Bank, making it a building renter rather than owner, according to Crain's Detroit Business.
As a result, it has sought and received $30 million in state and city incentives. $17 million in brownfield tax captures were approved by the state Tuesday, and $13 million in property tax abatements were approved by the city, according to The Detroit News.
Crain's has more on the about-face:
"Chemical Bank will self-fund the Project in the amount of $116,000,000, together with a contingency of 10%, being an additional $11.6 million, for a total Project funding amount of $132,600,000" plus $5 million that allows it to access debt, William Collins, executive vice president and general counsel of Chemical Bank, wrote in a letter to the Michigan Economic Development Corp. in November.
"This has been the funding plan from the beginning; Chemical Bank does not anticipate obtaining funds for the Project from any other party."
In seeking the help, the bank reportedly argued that "Detroit developments regularly need incentives."
The project is expected to create 200 permanent jobs, according to the Michigan Economic Development Corporation.