Henry Ford Health and three partners are undertaking a $3-billion plan to transform Detroit’s New Center neighborhood into a vibrant, walkable community with state-of-the-art health care, residential, commercial, retail, and recreational components.
As part of the development, Henry Ford Health, Michigan State University, Tom Gores, owner of the Detroit Pistons, and the city of Detroit have announced plans to begin an extensive Community Benefits Ordinance (CBO) process for a mission-driven community development and investment over the next decade.
The project will be anchored by a major expansion of Henry Ford Hospital that features a brand new 1-million-square-foot-plus facility and patient tower. It also includes a new, cutting-edge medical research facility for Henry Ford Health + Michigan State University Health Sciences, part of the two organizations’ 30-year landmark partnership.
Transforming New Center in an area at the southeast convergence of the Lodge Freeway and a set of railroad tracks, which currently houses the headquarters for both Henry Ford Health and the Detroit Pistons, the partners plan to create a destination to work, live, and play that’s infused with mixed income living spaces, commercial/retail options, and green space, while bringing connectivity between Henry Ford’s hospital footprint located north and south of West Grand Boulevard.
In summary, the project footprint will include:
- New state-of-the-art Henry Ford Hospital tower and expanded emergency department
- Cutting edge medical research facility
- Two new residential/commercial/retail/mixed-use buildings
- Renovation of One Ford Place to a new mixed-income residential/commercial/retail/mixed-use building
- New 800-space parking structure
“Detroit deserves a premier academic medical center and destination for the most advanced care, research and education,” says Robert Riney, president and CEO of Henry Ford Health. “As an anchor institution that has been committed to building strong, healthy communities for more than a century, we know we can deliver on that promise to double down on our commitment to being relentless advocates for those we serve.
“That includes not only charting a path to lead the health care of tomorrow, but also attracting the top health care professionals to our city, creating education and job opportunities, and removing barriers to wellness, particularly in our underserved populations.”
Detroit is the only major city to have a community benefits ordinance that gives residents living in the area impacted by a development a say in the project and the ability to negotiate certain benefits. To date, 12 completed CBO processes have resulted in tens of millions of dollars in benefits to neighborhoods beyond the initial development investments.
The Detroit Pistons voluntarily committed to a CBO process as part of their 2017 move back to the city and the $100 million Henry Ford Detroit Pistons Performance Center project. The team completed a 24-point agreement that included construction impact mitigation, construction workforce and contract participation, post-construction job creation efforts, and support for the Detroit Economic Solutions Corp., youth education and mentoring, along with refurbishment of basketball courts, free basketball camps, and free tickets.
“I have always viewed the Pistons as a community asset,” says Gores, CEO and chairman of Platinum Equity. “When we moved downtown, we had an ambitious agenda for using our platform to bring people together to effect change. We’ve worked hard to deliver on that promise and more, and then continued seeking new ways to be impactful.
“This development presents a new opportunity to accelerate growth and contribute to the revitalization of the city. We’re excited to work with our partners and the community we serve to transform our shared neighborhood.”
To begin the CBO process, the City of Detroit has mailed invitations to a series of community meetings with Henry Ford Health, Michigan State University, and the Detroit Pistons to 4,693 addresses identified inside a three-quadrant census tract impact area.
The first two meetings will be held Oct. 3 and Oct. 10. The initial meetings will allow members of the surrounding community to learn more about the proposed development plans and to share their feedback and to select community representatives on the Neighborhood Advisory Council (NAC) that will negotiate the community benefits agreement.
Every community benefits NAC is made up of 9 members: 2 selected by residents living in the area, 3 selected by City Council members (1 each by the councilperson representing the impacted district and two by at-large councilmembers), and 4 selected by the Planning & Development Department.
The city’s community benefits ordinance requires a minimum of 7 meetings. Members of the NAC, who must live in the impacted area and be at least 18 years of age, negotiate various community benefits specific to the projects to address anticipated impacts, such as programs to help residents participate in economic opportunities created by the development.
Once the NAC and developers agree on a series of benefits and timelines, the NAC votes to endorse the community benefits agreement. That agreement is forwarded to City Council for final approval.
The Future of Health development in its entirety will support approximately 25,000-plus jobs, which include an estimated 16,000 current jobs, 8,200 construction jobs, and 700 new post-construction related full and part-time positions.
Analysis from real estate consulting firm RCLCO estimates a potential $8.2 billion total economic output from the development, and an additional $340 million in total fiscal impact over 35 years when looking at the expansion of the local and state tax base through increased property values and job creation.
The future development vision builds upon the successful construction of the Henry Ford Detroit Pistons Performance Center, which opened in 2019. The publicly accessible center provides a series of community benefits, including Henry Ford’s state-of-the-art Center for Athletic Medicine and neighborhood retail amenities such as Planet Fitness and Plum Market.
The partners have already executed a robust schedule of preliminary community engagement meetings to brief neighborhood leaders on the project and seek input from residents, block groups and business leaders to ensure that the overall vision for the new development vision reflects and supports evolving local priorities.
“For more than a century, MSU has been working with communities in Detroit to improve health and support economic development while leading the nation in growth and development research, teaching, and outreach,” says Teresa Woodruff, interim president of MSU.
“The new Henry Ford Health + Michigan State University partnership and research facility supports our core values and fuels even more innovation and discovery that will directly benefit those in the region. Our goal is to set a new standard for how individuals and communities experience care across the state of Michigan and the nation.”
To learn more about the early September announcement of the Gilbert Family Foundation contributing $375M to help expand Henry Ford Health in Detroit, read DBusiness article here.
For additional project information, visit here.
