Detroit considers moving some city offices to the RenCen

The city of Detroit is mulling moving a chunk of its employees into the Renaissance Center, Crain’s has learned.

Multiple sources familiar with the matter said that while there has been no final decision made or deal reached, that’s one of the options being explored as General Motors Co., Dan Gilbert’s Bedrock LLC and others weigh the fate of perhaps the most iconic piece of Detroit’s skyline.

The city has close to 10,500 full-time employees and is its largest employer, just edging out Gilbert’s Rocket Companies Inc. mortgage company, which has 10,100 or so, according to the latest figures reported to Crain’s.

There are plenty of unknowns, such as where specifically the city employees would move from if a deal was reached, although sources said any potential move is not likely to impact employees at the Coleman A. Young Municipal Center, the city’s main base of operations at the corner of Woodward and Jefferson avenues downtown.

Through spokespeople, both the city and GM declined comment on Thursday. An email was sent to Bedrock spokespeople on Thursday, as well. 

Any potential relocation, if one were to take place, would likely involve some 100,000 to 200,000 square feet — a sizable footprint, to be sure, but just a small fraction of the complex’s overall office space. Over the last several years, the RenCen has become increasingly vacant, a victim of several factors ranging from the COVID-19 pandemic, increased competition for space downtown and GM moving many of its people to the Warren Technical Center.

Not all of the city’s operations run out of Coleman A. Young Municipal Center.

For example, the Health Department has space in Brush Park at 100 Eliot St., while the Municipal Parking Department has space at 1600 W. Lafayette Blvd., according to CoStar Group Inc., a Washington, D.C.-based real estate information service. The Office of the Inspector General is in the Ford Building at 615 Griswold downtown, and the General Retirement System is in the Ally Detroit Center at 500 Woodward.

Crain’s has submitted a records request for a complete list of the city’s locations and the number of employees at each.  

GM and Bedrock, plus consultants and public officials, have been exploring what to do with the RenCen after the automaker vacates the complex next year and takes space at Gilbert’s Hudson’s Detroit development on Woodward Avenue north of Campus Martius Park.

Although there has been no final determination made, demolition of at least some of the massive complex is being explored, Crain’s and others have previously reported.

Last month, a Republican legislative leader claimed Democrats, who control both legislative chambers and the governor’s office, were keeping $300 million-plus on the state’s balance sheet as part of a plan to fund Renaissance Center demolition and build light rail services. Behind the scenes, sources denied House Minority Leader Matt Hall’s assertions.

Mayor Mike Duggan said last month during the Detroit Homecoming event that while he isn’t sure what the final outcome will be for the towers, “all of us are trying to preserve as much of the Renaissance Center as it is possible to preserve.” 

In an interview with Crain’s reporters and editors last week, Quentin Messer, CEO of the Michigan Economic Development Corp., said there are “active discussions” at the state level with elected officials and the private-sector parties involved but said “it would be premature to talk about the dimensions of those conversations.”

In April, when GM and Bedrock announced the automaker’s pending move, executives with both companies set a self-imposed one-year deadline to make a determination on what to do with the 5.5 million-square-foot complex, the majority of which — four 39-story office towers flanking the 727-foot hotel tower in the middle — is owned by GM. The pair of smaller 21-story office towers that were developed as a second phase have separate ownership. 

Gilbert, public records show, has an option to purchase GM’s portion of the complex, Crain’s reported this summer. 

The city isn’t the only government that could occupy some of the buildings. There have previously been discussions about Wayne County, which has its main operations in the Guardian Building downtown, taking space in the towers, as well.

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