Council committee advances tax-abatement request for 25 Cadillac Square Cosm entertainment venue

A Detroit City Council Committee of the Whole on May 20 advanced a request from Monroe 1 Phase LLC for a commercial rehabilitation exemption certificate under Public Act 210 of 2005 to allow construction of a 70,000-square-foot Cosm entertainment venue at 25 Cadillac Square.

The certificate would abate part of the property tax increases that the city says will follow a developer investment. City and developer representatives told the committee the project would create hundreds of construction jobs, about 125 tenant jobs, and deliver community benefits including a $1 million contribution to the city’s Affordable Housing Trust Fund.

Casey Jackson, Detroit Economic Growth Corporation, said “the developer currently pays about $121,000 in annual property tax” and that after an estimated $46,300,000 investment the property taxes are projected “to increase to about $744,000 a year.” Jackson and other presenters explained the PA 210 abatement would reduce the portion paid by the operator so the developer/operator would pay roughly $297,000 annually while the abatement would cover about $445,000 a year during the requested 10-year term.

Jared Fleischer, vice president of government affairs and economic development for ROC, described the city’s strategy to boost downtown foot traffic: “we want the downtown to be an economic engine for for the entire city,” and said Cosm locations nationally draw tens of thousands of monthly visitors in comparable cities. Fleischer and developer representatives said the operator will offer educational field trips and repeat quarterly programs for Detroit schools and senior facilities, and that the Cosm site will be fully ADA accessible.

Developer representatives said the package includes an upfront $1,000,000 community benefit targeted to the Preserve on Ash affordable-housing project in District 6; that grant is intended to fill a funding gap and enable construction of about 60 affordable units, with 21 units at 30% of area median income (AMI), 9 at 60% AMI and 30 at 80% AMI. Presenters estimated the 10-year abatement would provide approximately $4.8 million in tax savings to the operator and a net benefit to the city of about $1.66 million over the abatement term.

Committee members asked about operational details raised by public commenters. Presenters said general-admission ticket prices at Cosm sites are in a lower range than many sold-out professional sports standing-room options (presenters cited general admissions around $25–$29 vs. standing-room ticket comparisons in the transcript). They said Cosm will offer on-site alcohol sales but “no wagering” or sportsbook activity.

After questions from council members and a public comment period, a council member moved to send line item 5 to formal session with the recommendation to approve. Seeing no objections, the committee recorded the motion as carried.

Next steps: the item will appear at the council’s formal session for final consideration; presenters said staff will provide follow-up information requested during the hearing, including details about the Preserve on Ash funding timeline and specific field-trip logistics.