Detroit City Council Approves $198M Stadium Project Amid Calls for Community Benefits Reform

Detroit City Council gave the green light to tax breaks and a community benefits agreement for a $198 million Detroit City FC soccer stadium in Corktown. The vote took place at the final formal session of the year on Tuesday.

The project will bring a 15,000-seat stadium, a 421-space parking deck, and 76 apartment units. Construction will happen on the site where Southwest Hospital once stood at 20th Street and Michigan Avenue. The aging building must come down first.

Council members approved a $74 million reimbursement to Detroit City FC using property taxes captured from the site over 30 years. Another tax abatement valued at $1.8 million got the nod from the council. The soccer club is seeking a third exemption worth $12 million, bringing total tax incentives to $88 million.

The benefits agreement commits $1.2 million over the next 12 years to community organizations. Other commitments include a $17 minimum wage and union neutrality for arena workers, 3,000 free tickets each year for residents, a new youth soccer mini pitch, and a $50,000 investment in art installations.

Council Member Gabriela Santiago-Romero said the community benefits ordinance fails to deliver what residents deserve. She wants to pursue an arena tax instead to create revenue for community investments.

Creating an arena tax would require a change in state law. The proposal is part of Mayor-elect Mary Sheffield's agenda.

A study by Wayne State University found one-third of arena employees live in poverty. Seventy-two percent have no employer-provided health insurance. Eighty-five percent of arena workers cited wages as their top concern.

Francis Grunow, a policy consultant, said the deal reflects a genuine intention to do right by the city. "I also believe they'll make good on what is agreed to as well as continue to be a different kind of developer and neighbor," he said per Bridge Michigan. "I look forward to seeing DCFC show us what is possible in terms of corporate responsibility."

Final authorization of the brownfield plan is contingent on the Michigan Strategic Fund.