Detroit City Council OKs Detroit Medical Center tax exemptions through Renaissance Zone

The Detroit Medical Center will continue receiving tax exemptions, thanks to the Detroit City Council's approval of a 15-year extension of the Renaissance Zone Act.

Council members unanimously approved the extension Tuesday after postponing the vote for a week due to concerns about union contract negotiations. Dozens of DMC staff last week donned blue shirts and hats to show support while seeking a new agreement. The Renaissance Zone program gives tax abatements that would allow DMC to operate and provide services, DMC officials said.

Floyd Allen, a DMC representative, said officials in the past week were able to work toward resolving issues that were important to the company and unions.

"We had approximately 20 items, we were able to basically get agreement on all of them. We now have a tentative agreement," Allen said.

Valerie Dodson, a DMC employee, told council members last week that Tenet Healthcare Corp., which owns the DMC, had not been negotiating with workers.

'I will stand up for these people'

"Things have not changed, my health care has still risen. I actually make less in 2024 than I did in 2023 because we haven’t gotten a wage increase but yet, my health care went up," Dodson said. "It's like the company doesn’t support us, and I'm just asking you guys to support us and show us that you care. We stood out here, and I fought long and hard throughout everything and showed up to work ... we’re still struggling."

Kevin Moore, president of Teamsters Local 299, also claimed the company "failed to negotiate" a collective bargaining agreement for the workers.

"They stonewall, they cancel negotiations and now they're acting like they care about the workers in the city of Detroit," Moore said at last week's meeting. "Any employer in the state of Michigan that thinks they're going to treat our citizens like they're third-class, that they’re going to put them in poverty situations … I promise you to this, every day for the rest of my life, I will stand up for these people."

The Renaissance Zone is a joint endeavor among the city, Wayne County and the state to give tax incentives to residents and businesses to promote economic stability and development within the eight designated areas of Detroit. Incentives include waiving of city income and utility users taxes, city corporate taxes, county property taxes, and state income tax or single business tax.

$1.8 billion spent on uncompensated care for Detroiters

“Equitable access to quality health care is a right, not a privilege, of every Detroit resident,” Mayor Mike Duggan, who was the chief executive officer of DMC before his bid for mayor, said in a statement. “Today’s vote ensures every Detroiter will be able to receive top-level care, no matter their income level.”

In an hourlong discussion last week, DMC officials urged the City Council to pass the resolution because the Michigan Strategic Fund requires the approval before any amendment of the the existing Renaissance Zone.

In 1987, Detroit had 19 hospitals but now has six, four of which are part of DMC, officials said, adding that during the last 10 years of the zoning agreement, $1.8 billion was spent on uncompensated care of Detroit residents. As multiple DMC officials pushed for the extension last week, Council President Mary Sheffield said they were being "condescending" and "disrespectful" for questioning union employees' fight for a new contract.

At-Large Councilman Coleman Young II suggested postponing the vote for a week until all parties had necessary discussions to move forward on the collective bargaining process.

"When I was in the state, I knew about mandatory overtime that they had to work. I heard the story about nurses who literally broke their backs lifting up people who are two to three times their weight and still don’t have enough money to make ends meet," Young said.

DMC will provide emergency and health care services for Detroiters and care for patients who are uninsured and underinsured, as part of an agreement with the city. The hospital system is also expected to maintain and enhance health and wellness initiatives, community outreach and prevention programs, and quality improvement programs, according to the city. DMC will also support its supplier diversity program to provide opportunities for minorities, women and Detroit-based businesses to provide goods and services.

“The extension of this agreement between the Detroit Medical Center and the City of Detroit reflects a commitment of multiple parties to ensure our community maintains access to critical health care services they need and depend on,” Brittany Lavis, DMC chief executive officer, said in a statement.

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Dana Afana is the Detroit city hall reporter for the Free Press. Contact: dafana@freepress.com. Follow her: @DanaAfana.

This article originally appeared on Detroit Free Press: Detroit Council OKs DMC tax incentives with Renaissance Zone extension