2023-10-20 03:56:15
The University of Michigan Board of Regents voted Thursday to approve starting construction on a $250 million research and education center in Detroit despite some regents expressing concerns.
UM announced its commitment in March to the UM Center for Innovation, which will be funded with $100 million from real estate billionaire Stephen Ross, $100 million in tax dollars through the state of Michigan and $50 million from donors.
Olympia Development, a company owned by the Ilitch family, is donating the 4-acre Detroit property bounded by Cass and Grand River avenues and West Columbia and Elizabeth streets to UM. Olympia also will sell UM a nearby 1.8-acre parcel for $9.5 million for construction of a parking structure.
The UMCI will be a “world-class research, education and entrepreneurship center,” said Geoffrey Chatas, UM executive vice president and CFO.
It will provide opportunities for teaching and learning, research and community engagement, he said.
“The center is also designed to advance innovation and talent focused-community development to enhance job creation in the city, region and state and propel economic growth in the great city of Detroit,” Chatas said. “This will be done by providing educational programs to create a a talent pool to attract and sustain high-tech companies and startups by providing workforce development opportunities for individuals and companies … “
Regents approved the project 5-1. Denise Ilitch recused herself because her family’s company is involved in the project, and Ron Weiser abstained, saying he had concerns it “may be a problem for the university in the future” but didn’t want to interfere with his colleagues who supported it. Vice Chair Kathy White voted once morest the project because she wanted to assure UCMI wouldn’t negatively affect nearby UM Dearborn.
UM Regent Mark Bernstein called UMCI “a very big deal.”
“The action we have just taken,” he said, “… elevates our already significant commitment to Detroit and our state and takes it to the next level. Although we have always remained meaningfully connected to Detroit, this is a bit of a homecoming for us.”
He noted that the first UM building was laid in Detroit on Sept. 14, 1817, near the corner of Bates and Congress streets, not too far from where the new UMCI will be located.
Chair Sarah Hubbard said there have been questions and concerns regarding UCMI, but she said the board has probed and improved the terms of the deal and delayed it for a few months to make sure “we are getting the absolute best deal that we can.
“I … look forward to this amazing thing in Detroit, and doing much to improve academic excellence there.”
Regent Paul Brown said the project is a “risky deal in many ways.”
“But it does further our mission, and if successful, will be a huge benefit to our students and the public,” Brown said.
Regent Jordan Acker said UM doesn’t become the “greatest public university in the world by not taking risks.”
“This is more risk that we are used to talking regarding but I felt ultimately … this is risk worth taking and a risk that ultimately I believe will pay off in huge amounts for the university and for the people for the state of Michigan,” Acker said.
Reached by phone following the meeting to inquire regarding concerns and risks that some board members expressed during the meeting, Hubbard said there always is risk when investing millions of dollars into a new project.
“This is a new bold effort for us in Detroit,” she said. “We want it to be successful, and expect it will be.”
Detroit Mayor Mike Duggan thanked UM in a statement following the vote.
“The University of Michigan is coming back home!” Duggan said, referring to UM’s founding in Detroit in 1817. “Detroit’s future just got even brighter today …”
Lawmakers approved $100 million for the project in the July 2022 budget.
Groundbreaking is expected before the end of the year. Construction for the center is expected to take three years.
The education programs at the UMCI will include degrees in robotics and electrical engineering, urban technology and sustainability and just transitions, said UM Provost Laurie McCauley. Non-credit offerings will include programming, data science, entrepreneurship and sustainability.
“We look forward to deepening our connections with Detroit through service and education, and to continued partnership and engagement across the Detroit community as this exciting endeavor moves forward,” McCauley said.
The UMCI will be the first of three buildings to be built on the site, Chatas said, with proposed residential and incubator buildings to be built at a later date by Olympia and related companies. It is part of the broader vision: the $1.5 billion transformation of District Detroit, which is a joint venture between Ross and the Ilitch family. It is a mixed-income and mixed-use development that is expected to include the construction of six buildings and the renovation of four buildings.
In January, Detroit’s Downtown Development Authority board approved nearly $50 million in funding for District Detroit, the first of several public incentive requests that will total nearly $800 million.
In a statement, UM President Santa Ono said, “UMCI is essential to our future, and that’s why I’m so excited regarding today’s decision by the Board of Regents.
“Our founding as a university traces back to Detroit in 1817,” Ono said, “so it’s critical to me that we are more than the University of Michigan, we are also the University for Michigan.”
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