Committee moves $76,550 Grand Prix parking contract to formal session after questions about city cost

The Detroit City Council Neighborhood and Community Services Standing Committee moved a $76,550 contract to provide temporary parking for city employees during the Detroit Grand Prix to the council's formal session after committee members pressed administration for more information about who is paying and why the city is covering the cost.

Committee members said the contract, which covers parking from May 5 through June 8, 2025, is intended to replace employee parking displaced when downtown garages and lots are partially or fully closed for Grand Prix staging. The contract lists LAZ Parking Midwest LLC as the contractor and totals $76,550.

Why it matters: Committee members said the payment appears to come from city funds even though the Grand Prix is run by an outside promoter. Council members sought clarity on whether the event promoter reimburses the city, how much city departments are spending on related road and infrastructure work, and how the contract can begin before the council formally votes on it.

Council Member Scott Benson asked administration to explain the three-phase, 34-day contract and why the city is paying for parking caused by an outside event. "If this is...a direct result of an event that's being hosted, then why are we paying for it?" Benson said during the committee meeting.

Keith Hutchings, who responded for municipal parking, said the contract exists because the Grand Prix will require parts of the city's garages to be closed and the city must provide alternate parking for employees and customers. "The location does require the garage at various times to be closed down," Hutchings said. "We still have to then provide parking for employees and ... customers of the parking garage. So that is the need and reason for the contract."

DPW Director Gabe Brundage told the committee the Grand Prix is treated by the city as a "Detroit event" and that multiple departments signed the agreement with the race. "We view this as a city of Detroit event, and as such, the city of Detroit committed to support the Grand Prix brand in the city," Brundage said, adding that the city has accepted certain costs over time to keep the event returning.

Committee members pressed on whether the Grand Prix reimburses the city for employee parking costs. Municipal staff and department directors said they were not prepared to confirm reimbursement details at the meeting and agreed to follow up. Director Denise Starr provided high-level economic-impact figures cited to Downtown Detroit Partnership and DEDC studies, saying there is about a $300,000,000 financial impact to the city from the event, of which roughly $75,000,000 is direct impact and $225,000,000 is indirect.

Council members also raised the timing of the contract: the contract's listed start date is May 5, before the council would be able to vote at the formal session. Staff said that if approval were delayed to the next meeting there would likely be "just one day without coverage," but they would provide further details.

No final approval was given at the committee; the committee voted to move the item (agenda item 6.6, contract number 607139) to the council's formal session with a recommendation for approval. Administration agreed to provide additional information about reimbursement, funding sources and the scope of related roadwork before the council's formal vote.

The committee discussion also included details about roadwork funding: Brundage said previous years' road improvements for the circuit varied, with the first year near $500,000 and last year closer to $30,000; he estimated this year's work at about $30,000 to $50,000.

The committee's action sends the $76,550 LAZ Parking Midwest LLC contract to the council's formal table for an up-or-down vote, and committee members asked that administration supply the outstanding answers before that vote.