$1.6 Billion Demolition? The Shocking Plan for Detroit's RenCen | 8:19
Build Core | 23.5K subscribers | 35,061 views | January 3, 2025
Posted on 01/04/2025 8:20:54 AM PST by SunkenCiv
General Motors' decision to leave Detroit's iconic Renaissance Center (RenCen) has sparked debate about the building's future and the city's ongoing revival. Originally envisioned in the 1970s as a symbol of Detroit's rebirth, the RenCen became GM's headquarters in 1996 after a $500 million renovation. However, shifting workplace trends and declining office demand led GM to announce its move to the Hudson's Detroit development—a $1.4 billion mixed-use project in downtown. The relocation raises questions about the RenCen's fate, as GM and Bedrock Detroit propose a $1.6 billion redevelopment plan. The controversial proposal includes partial demolition, residential conversions, and public funding requests, drawing criticism from taxpayers and preservationists. Despite opposition, GM insists the project is necessary to revitalize the site. As Detroit's skyline evolves, the RenCen's transformation remains uncertain, leaving residents and officials divided on how best to preserve its legacy while adapting to modern needs.
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$1.6 Billion Demolition? The Shocking Plan for Detroit's RenCen | 8:19
Build Core | 23.5K subscribers | 35,061 views | January 3, 2025
--> YouTube-Generated Transcript <-- 0:00 · this is one of the most iconic Tower 0:02 · complexes in the world and General 0:03 · Motors recent announcement to leave has 0:05 · sent shock waves through the city today 0:07 · I'm at the Renaissance Center once a 0:09 · symbol of Detroit's Automotive Legacy 0:11 · now facing an uncertain future GM's 0:13 · decision to relocate just a few blocks 0:15 · away has sparked all types of questions 0:18 · at the same time the company is pushing 0:19 · for a $1.6 billion Redevelopment plan 0:22 · which is asking for hundreds of millions 0:23 · in Public Funding critics argue that 0:25 · it's wrong to use taxpayer dollars to 0:27 · demolish a Historic Landmark but the 0:29 · debate is far from settled and the 0:31 · decisions made here will play a pivotal 0:32 · role on the future of both the rensen 0:34 · and a city on the brink of 0:38 · Revival on April 15th 2024 GM made a 0:41 · groundbreaking announcement they were 0:43 · leaving the rensen to relocate to a 0:44 · brand new facility but why walk away now 0:47 · to tell the story let's jump back to the 0:49 · year 1970 Henry 4 II envisioned a 0:52 · massive development to revitalize 0:53 · Detroit's struggling economy which was 0:55 · beginning to decline after its golden 0:57 · era as the automotive capital of the 0:59 · world with enthusiastic support from the 1:01 · city's mayor construction began on what 1:03 · would become the world's largest private 1:04 · development at the time with an 1:06 · estimated 1971 cost of $500 million 1:10 · equivalent to about 3.9 billion today 1:12 · dubbed a city within a city the 1:14 · Renaissance Center opened its first 1:15 · phase on July 1st 1976 the complex 1:18 · featured five Towers clad in 2 million 1:21 · squ ft of glass and built using 400,000 1:23 · Cub yards of concrete the centerpiece 1:25 · was a cylindrical central tower housing 1:27 · the Detroit Plaza hotel which became the 1:29 · tall smallest all Hotel skyscraper in 1:31 · the world the complex also boasted 1:33 · upscale shopping restaurants in the 1:35 · summit a revolving restaurant perched a 1:37 · top the central tower in 1996 General 1:40 · Motors purchased the Ren Center and 1:42 · relocated its Global headquarters there 1:44 · by 2003 GM had completed a $500 million 1:47 · renovation transforming the complex into 1:49 · a key symbol of Detroit's hoped for 1:51 · revitalization today the Renaissance 1:53 · Center is the most recognizable piece of 1:55 · Detroit's Skyline at its core is a 73 1:57 · story 727 ft luxury hotel which is still 2:01 · the tallest all Hotel skyscraper in the 2:03 · Western Hemisphere surrounding the 2:04 · central tower are four 39-story office 2:07 · buildings each 522 ft tall collectively 2:10 · offering 2.2 million ft of office space 2:13 · and 660,000 ft of retail two additional 2:16 · 21 story Towers added in 1981 and 2:19 · acquired by GM in 2001 bring over 2:21 · 600,000 ft of office and Retail capacity 2:24 · to the complex tying it all together is 2:26 · the Winter Garden a five-story glass 2:28 · Atrium that provides access to the the 2:29 · riverfront and serves as a connective 2:31 · hub for the complex despite its 2:33 · prominence the renan has faced mounting 2:35 · challenges the Suburban office Market 2:37 · has long been a formidable competitor 2:38 · and the covid-19 pandemic delivered a 2:40 · crushing blow to office demand in 2:42 · southeast Michigan by early 2024 it was 2:45 · reported that Detroit's office vacancy 2:46 · rate soared to 25% one of the highest in 2:49 · the country and these factors have 2:51 · brought us to a pivotal 2:54 · [Music] 2:55 · moment before we get into why they're 2:57 · leaving let's talk about where they're 2:59 · going Hudson business Detroit is a $1.4 3:01 · billion mixed use development that's 3:03 · currently under construction in the 3:04 · heart of downtown Detroit the site 3:06 · occupies the entire block bounded by 3:08 · Woodward Aven Farmer Street as well as 3:10 · Grand River and grit Avenues it was once 3:12 · home to the iconic JL Hudson's flagship 3:15 · store which was demolished in 1998 with 3:17 · the largest controlled implosion ever at 3:20 · the time expected to be completed in 3:21 · 2024 the development will feature a 685 3:24 · ft skyscraper set to become the second 3:26 · tallest building in both Detroit and 3:28 · Michigan alongside of Fort story midrise 3:30 · building Hudson's Detroit will include 3:32 · retail office and event spaces as well 3:34 · as exhibition areas residential units 3:36 · and a hotel both structures will connect 3:38 · to a 700 space underground parking 3:40 · garage construction began in 2017 face 3:42 · delays during the covid-19 pandemic and 3:44 · is expected to be completed soon the 3:46 · tower topped out in April 10th just 5 3:48 · days before GM made the announcement 3:50 · they were moving under a 15-year lease 3:52 · GM will occupy the top office floors of 3:54 · the 12-story building adjacent to the 3:56 · tower that will have hotel and 3:57 · residential housing there also will be a 3:59 · public showroom for GM on the ground 4:01 · floor so naturally we ask the question 4:03 · why pick everything up and move half a 4:05 · mile from a building that you own to 4:07 · lease a space in one that you don't GM's 4:09 · CEO Mary Bara said the following we're 4:12 · proud to remain in the city of Detroit 4:13 · in a modern office building that fits 4:15 · the evolving needs of our Workforce 4:17 · right in the heart of downtown our new 4:19 · headquarters will provide collaboration 4:20 · areas for our teams Executive offices 4:23 · and display space for our vehicles as 4:25 · mentioned earlier the working landscape 4:26 · is evolving and GM's use of the 4:28 · Renaissance Center has shifted 4:29 · significantly over time in 2024 the 4:32 · average daily Workforce in the rensen 4:34 · was just 20% of what it was in 2019 4:37 · additionally data from 2023 shows that 4:39 · total foot traffic including visitors 4:41 · reached only 38.5 of pre-pandemic levels 4:44 · in 2019 and this all fed into jm's 4:47 · decision but what about the heavily 4:48 · contested future of the 4:53 · rensen as mentioned GM still owns the 4:55 · Renaissance Center but they're not 4:57 · primarily a real estate company often 4:59 · even when large corporations face 5:01 · challenges they streamline operations to 5:03 · focus on their core Industries auto 5:05 · manufacturing in GM's case however it's 5:07 · unclear if that's the strategy here as 5:09 · GM has partnered with billionaire Dan 5:11 · Gilbert in his company Bedrock Detroit 5:13 · to consult on Redevelopment plans for 5:15 · the complex interestingly Bedrock is 5:17 · also the real estate firm behind 5:19 · Hudson's Detroit the project I just 5:21 · talked about in April GM bedrock and the 5:23 · city announced they would spend a year 5:25 · evaluating the future of the Renaissance 5:26 · Center with Mary Bara stating were wide 5:29 · open by November plans for a $1.6 5:31 · billion Redevelopment were revealed The 5:34 · Proposal includes the demolition of the 5:35 · two Riverfront Towers 3400 the central 5:39 · tower would remain a Marriott hotel but 5:41 · reduce its capacity from approximately 5:42 · 1,200 rooms to around 850 the upper 5:45 · floors of the tower would be converted 5:47 · into 200 high-end Family Apartments one 5:49 · of the remaining adjacent Towers would 5:51 · be transformed into 3 to 400 residential 5:53 · Apartments while the other would undergo 5:55 · renovations to continue his office space 5:57 · additionally there's potential for other 5:58 · developments like added public space and 6:00 · entertainment venues along the river 6:02 · demolition could begin within 2 years 6:04 · with the refurbishment of the central 6:05 · tower and construction of the multif 6:07 · family housing expected to take an 6:09 · additional 2 and 1/2 to 3 years but 6:11 · before assuming this is a done deal 6:12 · there are significant challenges the 6:14 · Redevelopment is estimated to cost $1.6 6:17 · billion with Gilbert's Bedrock 6:19 · contributing 1 billion and GM 250 6:21 · million to bridge the gap GM and Bedrock 6:23 · are seeking 250 million in public 6:26 · subsidies from the state of Michigan and 6:28 · 100 million in tax increment financing 6:30 · from the Detroit Downtown Development 6:31 · Authority unsurprisingly this proposal 6:33 · has faced considerable opposition One 6:36 · Michigan house rep called it insulting 6:38 · for GM to request funding to demolish 6:40 · the iconic building as they exit similar 6:42 · sentiments have been echoed by other 6:44 · politicians across the state critics 6:46 · also highlight that GM received state 6:48 · tax credits back in 2009 to retain 6:50 · employees at the rensen though most of 6:52 · those employees have since been 6:53 · relocated to the nearby Warren office in 6:55 · response to all this push back JM and 6:57 · Bedrock stated that they're prepared to 6:59 · demolish all five primary towers and 7:01 · cover the cost themselves if Public 7:03 · Funding isn't secured a move some have 7:05 · labeled as extortion according to the 7:07 · Detroit Free Press demolishing the five 7:08 · Towers would likely be the largest 7:10 · voluntary skyscraper demolition in world 7:12 · history such demolitions are exceedingly 7:14 · rare especially for structurally sound 7:16 · buildings in an attempt to alleviate 7:18 · concerns GM pledged that any returns 7:20 · from the renen renovation would go 7:22 · toward Detroit education however it 7:24 · sounds as if this promise was made 7:25 · solely by GM and not echoed by Bedrock 7:28 · which has a much larger Financial stake 7:30 · in the project although that's still 7:31 · only speculation at this point while 7:33 · many in the public oppose even partial 7:35 · demolition real estate experts generally 7:37 · agree that the building cannot remain as 7:39 · it is for its potential to be maximized 7:41 · in a VP at GM said that selling the 7:43 · rensen wouldn't ensure its future 7:45 · success which GM is still committed to 7:47 · it'll be very interesting to see what 7:49 · happens to this project over the next 7:50 · few months as it's a highly visible 7:52 · topic that Detroit residents are deeply 7:54 · interested and invested in remember that 7:55 · my goal is to Simply present the facts 7:57 · as best I can in under 10 minutes 7:59 · allowing you to form your own opinion 8:01 · and you can feel free to share that 8:02 · opinion in the comments below at billore 8:04 · we're building America one story at a 8:06 · time with your help the channel has 8:08 · grown to over 20,000 subscribers in the 8:10 · last year there's so many new projects 8:12 · all over the country that the channel 8:13 · will be covering and I'm super excited 8:15 · for what the future will hold with that 8:16 · being said thank you and I'll see you 8:18 · next time
Why not let it return to nature like an abandoned factory?
Remember visiting it once so long ago, must have been before its auto life, for a professional meeting. The neighborhood was flaky, but the hotel was very fancy.
Wouldn't 1.6 billion be better spent in demolishing these?
It could probably be spun out to an LLC for mixed-use redevelopment — high rise posh condos overlooking most directions is now marketable in Detroit, it doesn’t look like Mordor any longer.
Successful bars, for example, have bought derelict neighbors (usually the rest of the block they’re in) and demo’d them for parking. Lot more green than when I was a kid. Used to be block after block of old brick low-rise storefronts but covered by bars and/or plywood, ugly as hell, no reason to get out of the car.
After the riots, the official figure for the death toll seemed very small, but the missing were not included. Over the following weeks and months, bodies kept popping up in the river, having slipped their bonds and leaving the cement blocks and whatnot on the riverbed.
The short version of the story of its development back in 1970 was interesting, btw. :^)
No, Jimmy Hoffa’s remains are not in the foundation.
More to be done, but a lot of demolition has already been done, and not just after arson / homeless fires.
My last trip into Detroit was more than 20 years ago, and I was pleasantly surprised at the area around the museum. Both Detroit and Flint used to be bustling / hustling places, they’ve spent most of the 21st century slowly vanishing. The auto industry has been killed off by Michigan’s Demwit tax structure (some of which has been dumped, but it sure took long enough), UAW greed, OPEC’s jihadist politics, and the DNC.
The BS about Flint’s (Democrat Party) water supply problem was allowed to go basically unchallenged because of the DNC’s focus and that of their media shills was to blame the Republican governor, pretty much as soon as he was sworn in, maybe even before.
This move by the moron head of GM — it’s being done to build the incompetent broad’s ‘legacy’ — is going to be another one of her money losing ideas. It’s obvious. What is less obvious is, staying there could be worse. I do wonder why a smaller new space is needed for collaboration areas teams, since there’s 2.5 million sq ft in the Ren Cen and some of it must obviously be underused or vacant.
The secret history of GM’s Chinese bailout
https://qz.com/594984/the-secret-history-of-gms-chinese-bailout
I took my girlfriend on a date to that restaurant at the top. It was an awesome view and a 5 star except for one thing. She set her purse on a ledge behind her and it took some time before we noticed. That was part of a window that did not rotate like the rest of the whole restaurant. It took me some time harassing a number of people before I found the purse.
While fitting it would be too obvious for the dim overlords to allow that.
Better footage, multiple angles:
https://www.youtube.com/watch?v=JP1HJoG-1Pg
I attended a conference in Detroit a few years ago. The meetings were mostly in the Ren Cen. Nice but weird. A huge turntable contained various years of Corvettes moving slowly around the basement. There is also a strange little automated people mover around downtown and some excellent local restaurants.
Overall? Once was enough.
Whoops. I hope she learned her lesson. :^)
Renaissance-Center
Why not just move it to Shanghai and make it official? /s
Probably includes kickbacks to others after people pocket a bunch of the money.
Where would the drug users squat?
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