John Gallagher

Detroit Free Press

Upping the ante in its bid for the Wayne County jail site in downtown Detroit, businessman Dan Gilbert's Rock Ventures on Tuesday released an economic-impact study by University of Michigan analysts, claiming its vision for remaking the site will create $2.4 billion in new development.

By contrast, finishing the jail project on its current site off Gratiot Avenue would create just $352 million in economic impact, the U-M study found, according to Rock Ventures.

Wayne County Executive Warren Evans immediately dismissed the study as meaningless to his decision on whether to accept Gilbert's proposals to make way for a potential Major League Soccer stadium by moving the jail and courts site from Gratiot to East Forest.

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“This study does nothing to sway my thinking," Evans said in a statement released shortly after Rock Ventures released the study. "My standard for Rock’s proposal has been absolutely clear: Is Rock prepared to build the county a criminal justice complex in a timely fashion, with buildings that meet our needs, at a price Wayne County can afford? If they can’t meet that standard, everything else is irrelevant. This study moves us no closer to answering that fundamental question."

That's not how Gilbert's team saw it, however.

“This study is a continuation of our efforts to provide the county and other stakeholders with the necessary analysis and information to fully evaluate the proposal we submitted on Feb. 6,” said Matt Cullen, principal of Rock Ventures. “The Gratiot site is a critical gateway to downtown Detroit, and we are excited about the opportunities a project of this scale and quality would provide for our entire community. This development will be a real catalyst for the city and county, and we need to make sure we get it right.”

Cullen added, “While we are excited about the impact this project would have, we are still very focused on the county executive’s direction that we need to deliver an effective, cost-efficient solution for the criminal justice complex.”

Wayne County broke ground for the jail in September 2011, citing the need for more beds and technology upgrades that would improve efficiencies. In June 2013, a 60-day suspension of construction on the $300-million project was imposed after estimated costs soared to $391 million — $91 million above the estimated cost. Major construction work has never resumed at the site, though the cost to taxpayers for the unfinished jail tallies to about $1 million a month.

The tit-for-tat Tuesday over the U-M study masked the fact that negotiations continue between aides for Evans and Gilbert over details of Gilbert's proposal. Much of the internal discussion and debate comes down to the final detailed numbers and questions, such as whether the new criminal justice complex that Gilbert proposes to build just east of I-75 would be big enough to meet all the county's needs.

Meanwhile, Evans is proceeding as though he'll need to finish the jail site on its current location. Chicago-based Walsh Construction was the only company to respond to a county request for proposals to finish the jail there. Evans has said he needs to proceed as though that will be his eventual course of action.

Rock Ventures said the economic study was done by the Center for Sport & Policy at the University of Michigan, commissioned by Rock Ventures and supported by the Downtown Detroit Partnership.

Announced earlier this year, the Rock Ventures plan envisions building the proposed Wayne County criminal justice center on East Forest instead of finishing the stalled jail project on Gratiot downtown. That East Forest site would be comprised of a new, $420-million state-of-the-art, consolidated criminal justice center that includes jails and courts.

On the downtown site instead, Gilbert's team hopes to build nearly $1.5 billion in new development, including a Major League Soccer stadium should Gilbert and his partner Tom Gores succeed in getting an MLS expansion franchise.

In the news release's details of the U-M study, Rock Ventures said the combined developments will support 32,133 jobs during the five-year construction period instead of 3,810 jobs if the jail project proceeds on the Gratiot site. The study also found a robust income and property tax benefit from moving the jail and courts project to East Forest and selling the Gratiot site to Gilbert for its soccer stadium and spin-off developments.

Contact John Gallagher: 313-222-5173 or gallagher@freepress.com