DETROIT | JW Marriott Detroit | 302 FT | 25 FLOORS

[DetroitMan]

Hotel project at Joe Louis Arena site secures $90M-plus in tax incentives

With public funding now secured, developers are expected to start construction this year on a nearly $400 million 25-story, convention-style hotel on the Detroit riverfront.

The Hotel at Water Square project on the former site of the Joe Louis Arena will receive a 30-year, $130.6-million Renaissance Zone tax break and an $11.6 million Public Act 210 Commercial Rehabilitation Act property tax break over 10 years. Approvals at the local and state level were granted last week. Although the total Renaissance Zone package is $130.6 million, there is a state reimbursement of $48.5 million for local school and library taxes, bringing the net value of the tax break to $82.1 million, a Detroit Economic Growth Corp. executive said earlier this year. The total package between the Renaissance Zone and the PA 210 abatement is valued at $93.7 million.

As proposed, the Hotel at Water Square will offer 600 rooms in a building attached to the Huntington Place convention center and is intended to help the city attract more convention and event business. The project is expected to start construction this year and finish in 2027.

The Sterling Group is developing the project through an affiliate, Atwater & Second Associates LLC, which is registered to the company's general counsel, Eli Halpern. The company is run by the adult children of Gary Torgow, who started the firm and is now chairman of the board of Huntington National Bank.

Renaissance zones allow for waivers of Detroit's income and utility users tax, city and county property taxes plus state income tax. The DEGC said earlier this year during the Community Benefits Ordinance process for the $396.5 million project that the economic benefits outweigh the value of the incentive package. Economic benefits are anticipated to be close to $2.6 billion — the vast majority of which would come from spending by Detroit visitors attending conventions and events. The organization also says that without the incentives, the project could not be built. If it is not built, the incentives are not awarded. The hotel would have five podium floors with restaurants, a lobby bar, a pair of ballrooms and 50,000 square feet of meeting rooms. A pedestrian bridge would connect it to Huntington Place. The tourism industry and broader business community have argued for years that the city needs more hotel rooms overall, but in particular such a hotel connected to its convention center.

https://www.crainsdetroit.com/real-e...tax-incentives

[BrickellBased]

Wow this is fantastic news.

A convention and events hotel is a perfect catalyst for downtown and the lakefront - I'd enjoy going to and staying downtown for a conference.

And with GM moving into Hudson Detroit I can see things really starting to come together. This bodes well for continued financing and development of the lakefront.

I feel like Detroit is finally breaking through and has tremendous momentum downtown.

[DetroitSky]

Awesome news!Someone with a subscription can post the article if they want:

Luxury JW Marriott hotel coming to former Joe Louis Arena site


Construction is underway to extend Second Ave to the river

[seabee1526]

Second Ave. is certainly one messy avenue. I read someone calling the area concrete spaghetti. I am wondering what the City’s long term goal is for it, how will they connect it all and make it flow beautifully.

[Velvet_Highground]

New 600-room Detroit hotel could be a JW Marriott

The world's largest hotel company has inked a deal to operate a luxury JW Marriott within the 25-story, 600-room hotel building that will soon be constructed next to Huntington Place on the city's riverfront, near where Joe Louis Arena once stood.

The $397 million new hotel project, first publicized in December as the "Hotel at Water Square," is being developed by Detroit-based Sterling Group and won local and state approvals this spring for $142 million in development incentives.

While there has been no official announcement yet as to the specific brand of hotel going in, it recently emerged that Sterling Group CEO Elie Torgow signed a management agreement with Marriott for a JW Marriott at the site.

That paperwork is dated last December, was recorded by Wayne County in April and its existence was first reported Tuesday by Crain's Detroit.

https://www.freep.com/story/money/bu...t/74208771007/