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--> 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

--> 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