Dan Gilbert pledges $1 billion to redevelop Detroit's Renaissance Center

Dan Gilbert, the billionaire co-founder of Rocket Mortgage, says he will contribute $1 billion to the redevelopment of the Renaissance Center in Detroit, a set of skyscrapers that formerly housed the headquarters of General Motors. Set along the Detroit River, the center was hailed as a major success in revitalizing the city after riots in the late 1960s, but in recent years it has become almost entirely vacant and fallen into disrepair. By creating a nonprofit to manage his blockbuster $1 billion commitment, Gilbert says he is sending a signal to city residents that he is not in it for the money.

The total cost of the project might reach $2.2 billion and includes investments from General Motors. “We all share the goals of bringing new life to the Renaissance Center, of building a thriving riverfront district for all to enjoy, and of maximizing positive community impact,” Gilbert said in a statement. “I cannot think of a better way to accomplish these goals than through a nonprofit organization dedicated to this mission in perpetuity.” According to Gilbert’s statement, the new organization will be a 501(c)(4) nonprofit, which can engage in unlimited lobbying.

Donations to such organizations are not tax-deductible. Gilbert did not return requests for comment. Jamaine Dickens, chair of the city Neighborhood Advisory Council for the section of the city where the Renaissance Center is located, said the project could generate 8,000 local construction jobs.

It would also make the riverfront a more inviting place, he said. “Detroit is one of the most segregated communities in America, but that riverfront is where everyone comes together and enjoys it all at the same time, despite age, despite gender, despite race,” he said. Nonprofit structure can lead to public good Gilbert’s announcement is the latest in a string of commitments to Detroit from the Rocket Mortgage founder and one of many large-scale investments by philanthropy into the city’s future.

In 2013, a group of foundations put a combined $816 million into a plan known as the “grand bargain,” which allowed the city to fulfill its pension obligations and fend off bankruptcy without selling art treasures from the Detroit Institute of Arts. Last year, when the Kresge Foundation announced it would relocate its headquarters to Detroit from its longtime home in the suburbs, it committed nearly $200 million to d… Gilbert did not return requests for comment.Jamaine Dickens, chair of the city Neighborhood Advisory Council for the section of the city where the Renaissance Center is located, said the project could generate 8,000 local construction jobs.

It would also make the riverfront a more inviting place, he said.“Detroit is one of the most segregated communities in America, but that riverfront is where everyone comes together and enjoys it all at the same time, despite age, despite gender, despite race,” he said.Nonprofit structure can lead to public goodGilbert’s announcement is the latest in a string of commitments to Detroit from the Rocket Mortgage founder and one of many large-scale investments by philanthropy into the city’s future.