Hudson's project site in July. (Photo: Michael Lucido)
In a story titled "Can anything be built in Detroit without subsidies?," Curbed Detroit raises some interesting questions about the state of development in Detroit.
Author Dennis Archambault writes:
Development is booming in Detroit. Every month there’s new announcements for transformational projects, multi-million dollar mixed-use buildings, and countless other smaller developments.
But behind nearly all these developments are subsidies, adding up to billions of dollars in tax incentives, grants, low-interest loans, and cheap land provided by various government entities at the city, state, and federal level.
Despite its identity as a comeback city, Detroit still remains a “weak market” in development terms. Most projects are unable to secure sufficient financing, leaving a “gap”—the difference between development costs and what market rents or projected commercial revenue can support. For Detroit, that gap can be significant.
