Council approves 7‑year, 50% tax abatement for redeveloping former Roadway Inn at 8500 Wickham Road
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Summary
Romulus City Council approved a seven‑year, 50 percent commercial tax abatement on May 12 for a planned $60 million‑plus redevelopment of the former Roadway Inn at 8500 Wickham Road into a 210‑room Home2 Suites/Tru by Hilton.
The Romulus City Council on May 12 approved a seven‑year commercial facilities exemption for Detroit Airport Hotel Limited Partnership 3 (Cooper Hotels) to redevelop the former Roadway Inn at 8500 Wickham Road into a new 210‑room, dual‑brand hotel combining Home2 Suites and Tru by Hilton.
Developer representatives, including Bates Cooper and Jeff Thompson of Cooper Hotels, told the council the site is blighted and creates recurring public‑safety and code‑enforcement calls. They said the total development cost is expected to exceed $60 million. The developer asked for a 50 percent abatement of the new real‑property taxes for seven years to help cover acquisition, demolition (the team estimated demolition and remediation costs in the low‑to‑mid millions) and site preparation; developers said they will continue to pay full personal‑property taxes and that the city’s tax receipts on the site would increase substantially after redevelopment.
In the council discussion, administration staff and the developer said the site currently generates roughly $50,000 a year in tax revenue; with the project and the 50 percent abatement in the first seven years, the developer projected the city would receive about $250,000 annually after the hotel opens. The mayor and other council members described demolition and replacement of the Roadway Inn as a long‑sought opportunity to remove a public‑safety burden and restore a prominent corridor near the airport.
Councilmember Carol Abdo said residents who contacted her opposed another corporate tax break and urged caution; she and Councilmember Kevin Kraut voted against the 7‑year abatement. The motion to approve the certificate for seven years passed on a 4‑2 recorded vote. The motion, moved by Council Chair Celeste Roscoe and seconded by Councilmember Jones, recorded the following votes: Roscoe — yes; Jones — yes; Kraut — no; Wadsworth — yes; Abdo — no; Chair (Talley) — yes.
What the abatement does: the council’s action authorizes a commercial facilities exemption certificate for the parcel and sets the exemption term at seven years. City staff asked the council to determine the length of the exemption period; the 7‑year term was presented as covering a substantial portion of acquisition and site‑remediation costs while still leaving the city with half of the new tax revenue each year and full personal‑property tax receipts.
Why this matters: supporters said the project will remove blight, reduce recurring public‑safety calls and increase long‑term tax receipts; opponents said residents have grown wary of tax incentives for well‑capitalized corporations and requested additional taxpayer protections and financial detail before granting an abatement.
