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Romulus council approves seven-year tax abatement for hotel at 8500 Wickham Road

5386454 · July 14, 2025
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Summary

The Romulus City Council voted July 14 to approve a commercial facilities exemption application and a seven‑year tax abatement for Detroit Airport Hotel Limited Partnership at 8500 Wickham Road, drawing debate over corporate tax breaks, blight and public safety calls to the site.

The Romulus City Council on Monday approved a commercial facilities exemption application and a seven‑year property tax abatement for Detroit Airport Hotel Limited Partnership at 8500 Wickham Road, voting to allow a phased tax break that the administration says will enable redevelopment of a boarded‑up hotel site.

Councilwoman Elaine Roscoe moved to approve the application; Councilman Wadsworth supported the motion, which the council approved. Later the council approved, on a separate motion by Roscoe seconded by Councilwoman Talley, a seven‑year exemption beginning Jan. 1, 2026 under Public Act 255 of 1978; that motion passed 5–2 (Roscoe, Talley, Wadsworth, Jones and the chair voted yes; Councilwoman Abdo and Councilman Croft voted no).

City officials and several council members said the site has been a recurring drain on city public‑safety resources and that redevelopment would increase tax receipts. “We have 700 calls for service for public safety at this building alone,” the mayor said, citing police and fire responses to the property. Director Kevin Krause, identified in the meeting as the director of community safety and development, described current total tax collections from the property as roughly $36,000 across taxing authorities, with the city’s share about $7,000–$8,000. He said the proposed development and the abatement would raise annual tax revenues to roughly $180,000–$200,000 during the abatement period and more thereafter, after the developer’s investment is complete.

Opponents on the council criticized the use of a corporate tax abatement. One council member said they had contacted residents and found little support for granting a corporate tax break; that member argued the city should prioritize developments that benefit residents directly, such as a grocery store.

Supporters said redeveloping the boarded‑up hotel would remove blight, reduce calls for service that draw police and fire resources, and create jobs. “If somebody wants to take this off our hands and knock it down, that’s a blessing,” Councilwoman Talley said during the discussion.

The application process on the council agenda noted compliance with the Commercial Redevelopment Act (MCL 207.656) and identified Julie Albert, director of assessing and financial services, and Kevin Krause as having reviewed the tax‑capture breakdown supplied with the application. The council first voted to accept the application for a commercial facilities exemption certificate and then separately set the length of the exemption at seven years.

Votes at a glance: the meeting included multiple other formal actions, all recorded by the council on July 14.

- Approve application for commercial facilities exemption certificate for Detroit Airport Hotel Limited Partnership 3, 8500 Wickham Road — motion by Councilwoman Roscoe, supported by Councilman Wadsworth; outcome: approved (roll call affirmative).

- Approve seven‑year exemption under Public Act 255 of 1978 for Detroit Airport Hotel Limited Partnership 3 (effective 01/01/2026) — motion by Councilwoman Roscoe, supported by Councilwoman Talley; outcome: approved 5–2 (Yes: Roscoe, Talley, Wadsworth, Jones, Chair; No: Abdo, Croft).

- Appoint Janine Baron to the Cemetery Board of Trustees (term to expire Nov. 2026) — motion by Councilman Wadsworth, supported by Councilwoman Abdo; outcome: approved.

- Authorize mayor and clerk to enter agreement with the State of Michigan for resurfacing Osgood Road (between Yarrow/Heron River Drive and Wick Road) — motion by Councilwoman Roscoe, supported by Councilman Kraut; contract portion to city: $222,819; council approved.

- Authorize purchase of a 2024 GMC Sierra 1500 pickup truck for DPW from Todd Wenzel Chevrolet, $44,539 (piggyback contract) — motion by Councilwoman Roscoe, supported by Councilwoman Talley; outcome: approved.

- Adopt resolution opposing renewal and expansion of Wayne Disposal Inc. licensing with Michigan Department of Environment, Great Lakes, and Energy — motion by Councilwoman Roscoe, supported by Councilwoman Talley; outcome: approved unanimously.

- Adopt resolution opposing Senate Bill 319 (minimum staffing mandates) — motion by Councilwoman Roscoe, supported by Councilwoman Talley; outcome: approved (one council member recorded a “no” on the roll call).

- Second reading and final adoption of Budget Amendment 24/25‑19 ($134,570 for health/dental insurance and staffing changes) — motion by Councilman Wadsworth; outcome: approved.

- Schedule a study session to discuss council vacancy procedure/policy for Aug. 11, 2025 (initially 30 minutes, council agreed to increase if needed) — motion by Councilwoman Talley, supported by Councilman Jones; outcome: approved.

- Schedule public hearing per charter (Chapter 14.2) for Aug. 25, 2025 at 6:45 p.m. to hear comments/objections to vacation of Cypress Road (north of Eastcourse and west of Metroplex Drive) — motion by Councilwoman Talley, supported by Councilman Jones; outcome: approved.

- Pay warrants (Warrant 25‑13), total $3,171,748.80 — motion recorded; outcome: approved.

Council discussion on the hotel centered on balancing concerns about granting a corporate tax break with the city’s stated need to remove a high‑crime, blighted property adjacent to the airport and to restore public‑safety resources. The council’s approval does not itself build the project; it permits the tax exemption if the project proceeds under the terms of the Commercial Redevelopment Act and the negotiated exemption schedule.

The exemption period approved by the council will begin Jan. 1, 2026, according to the motion; the city clerk’s report stated the council must also determine the length of the exemption, which the council set at seven years. Further administrative steps and any developer agreements were not detailed in the council record for this meeting.