The facility will replace an underground parking garage and is located on the city-owned Kennedy Square block, located at Woodward and Michigan avenues near the Compuware Building. It is expected to house about 500 information technology employees for auto supplier Visteon Corp. Construction is anticipated to begin in the summer or fall, with occupancy to follow about 18 months later.

This incentive comes on the heels of a $3.2-million gap loan issued by the Detroit Downtown Development Authority. Other financing sources for the building include a $30-million loan from Charter One Bank, $15 million provided by Redico and $6 million in other short-term loans.

Redico is a well-known developer around the region and has several office buildings in the Troy and Southfield submarkets. It owns or manages about 4.5 million sf of office space in the Detroit region. It also has 1.5 million sf of industrial space and 2 million sf of retail space in its portfolio.