Whitmer backs expansion of powerful incentive program targeted for RenCen plan

Credit: Dean Storm/Crain Communications
The future of the Renaissance Center is in the hands of General Motors and Bedrock, as they pursue support for their plans to tear down two of the riverside office towers, create a public space and park, and convert part of the central hotel tower to residential units.

Gov. Gretchen Whitmer says she backs the expansion of a powerful state tax incentive program that has led to massive urban redevelopments and that developers statewide have said is in dire need of legislative action.

Speaking at an event at the Grand Rapids Area Chamber of Commerce on Monday, Whitmer said lawmakers “need to expand our successful bipartisan work on (the) transformational brownfields” program.

“This funding has helped local governments and developers turn abandoned, blighted sites into vibrant new housing and commercial space,” Whitmer said.

Funding for the Transformational Brownfield Plan program is nearly gone as it approaches previously approved caps, as Crain’s Grand Rapids Business previously reported. The powerful incentive tool would need legislative action in Lansing to raise the funding caps, which last happened in 2023.

Detroit Mayor Mike Duggan has called for the cap to be raised to allow for the partial demolition and renovation of General Motors’ Renaissance Center, which the automaker is leaving this year for a new global headquarters. The tax credits are a key component of GM and Bedrock’s proposed $250 million in subsidies for the $1.6 billion project.

It’s unclear whether a proposal to expand the caps in the program, which subsidizes projects by letting developers keep increases in various taxes for two decades, would gain enough support in the split Legislature where Republicans control the House and Democrats have the Senate majority. A previous House bill proposed in 2024 died without a hearing.

Whitmer suggested that such a proposal could emerge during the budget process, which is “in its infancy at this point, and I’m hopeful that we get that.”

Meanwhile, developers across Michigan say expanding the program would support more large redevelopments.

As of this week, $116.8 million remains in the program’s $200 million construction-period tax capture bucket, while just under $10.9 million is left for the $1.6 billion post-construction income, withholding and sales/use tax capture. The post-construction taxes are captured for 20 years.

Eight projects have received Transformational Brownfield incentives since the program was first established in 2017, including the Factory Yards development planned on Grand Rapids’ southwest side, and the Acrisure Amphitheater and Amway Stadium projects in Grand Rapids, which Grand Action 2.0 applied for together.

The DeVos and Van Andel families are also working to develop a $797 million mixed-use project called Fulton & Market. The development has been earmarked for its anticipated $320 million from the Transformational Brownfield Program, and has received local approval, but has yet to be considered for final approval by the Michigan Strategic Fund board.

Fulton & Market is one of multiple projects that are “under invitation to apply,” which means the funds are earmarked in the program even though the transformational brownfield plan still needs approval from the Michigan Strategic Fund board, which oversees the Michigan Economic Development Corp.

In her speech, Whitmer highlighted the Fulton & Market and Factory Yards projects. The $147 million Factory Yards project received approval in 2023 for a nearly $103 million Transformational Brownfield Plan.

Other priorities

Whitmer mainly used the speech to talk about her main budget priorities, including finding a “sustainable, long-term solution” to fund fixing roads throughout the state, addressing the housing shortage and supporting manufacturing. The governor also talked about tariffs and the thousands of communications her office has received from people sharing their concerns about rising costs of living.

“We know that this is already impacting companies across the state, including here on the west side,” Whitmer said. “… In the richest, most powerful, most innovative nation in the world, middle class families shouldn’t be worried about whether or not they’re going to continue to have a roof over their head or be able to afford the necessities like their next meal, and businesses shouldn’t have to deal with this much uncertainty, either.”

Whitmer said that the infamous blue folders she was photographed holding in front of her face in the Oval Office on April 9 contained the many emails and letters she’s received from Michiganders sharing their concerns about the tariffs.

“I did show the president the real impact of his economic strategy, and I urged him to take that into consideration, and change course,” Whitmer said. “I told him, as I’ll share again with all of you, the current approach is not working. We can make more advanced products in America, but we must work with our allies and against our adversaries. We need a targeted, thoughtful strategy to reshore American manufacturers because that’s a goal we all share. But we can do it without losing jobs or jacking up costs.”

Whitmer poked fun at the photo of herself during her speech, similarly to how she explained her meeting with President Donald Trump during a Detroit Economic Club event on April 14.

During the White House visit, Whitmer also told Trump that a presidential emergency declaration is needed to respond to northern Michigan residents who are still without power after an ice storm.

— David Eggert contributed to this report.

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