Developers of a long-delayed $1.5 billion plan to redevelop a large area around Little Caesars Arena with hotels and housing gave a vague timeline this week of when construction could begin, with work on only one project likely to start next year.
The 10 projects in what’s known as District Detroit are being co-developed by the Ilitch organization’s Olympia Development of Michigan and megadeveloper Stephen Ross’ The Related Cos. The original plan was to begin construction on at least some of the projects in 2023. The plan has been awarded about $800 million in state and local development incentives.
But only one of the projects has a solid timeline, which was revealed Tuesday night at a public meeting held with dozens of residents and Detroit officials. The meeting was an annual update on the community benefits agreement that accompanies the projects.
Construction will begin in March next year on a new residential building intended to accompany the soon-to-be University of Michigan Center for Innovation, with a plan to open in 2028, said Stephanie Calhoun, vice president of construction for Related Cos. UM has agreed to lease the new 13-story at 2205 Cass Ave.
But no timelines were given for any other projects, including two proposed new hotels, an office building and residential developments, all part of District Detroit. Details may be given next year, said Keith Bradford, president of Olympia Development of Michigan, the real estate arm of Ilitch Holdings.
“Our goal is not to make a major announcement while I’m standing here, so just know that,” Bradford said.
Bradford said Olympia has received a lot of interest from chains that want to be part of the potential hotel that could have more than 200 rooms.
He also said plans for reviving the former American hotel at the corner of Temple and Cass and converting it into residential were progressing, including increasing the planned number of affordable housing units to 30%, compared to 20% previously.
“This is going extremely well, and hopefully we will be able to make an announcement on this here in ’26 on the exact timing and scheduling and development of this process,” Bradford said, regarding the plans for the American.
Officials didn’t provide any updates on the other seven proposed projects. When asked by a resident on Zoom why the projects have been delayed for years, Bradford mentioned rising construction costs, financing challenges and the downturn in the demand for office space.
In 2022, plans for the 10 proposed developments were released. They include building 695 mixed-income residential units, 1.2 million square feet of commercial office space, 100,000 square feet of retail and 467 hotel rooms. The project involves constructing six buildings and renovating four buildings.
University of Michigan’s new Center for Innovation, meanwhile, a $250 million center that aims to provide workforce development educational programs for individuals and companies to create a talent pool that attracts and sustains high-tech companies, is expected to be completed by 2027.
laguilar@detroitnews.com
