City of Detroit Downtown Development Authority, MI Tax Increment Revenue – Catalyst Project 2024 Surveillance Report

Rating Summary

The long-term rating continues to reflect the Detroit Downtown Development Authority’s (the DDA) legal status as a separate governmental entity from the City of Detroit (the City); the scope of the Development District (the District), which includes most of the City’s central business district; growth in the District’s incremental value and the resultant increase in revenues available for annual debt service. These strengths are offset by the concentrated nature of the property tax base and the possibility of declines in taxable value, an inherent risk in TIF financing, that could erode revenue generation and coverage levels.

The Series 2024 Tax Increment Revenue Refunding Bonds (the Catalyst Bonds) are payable from and secured by a lien on the incremental property tax revenues derived from an 843-acre development zone that encompasses much of Detroit’s most valuable real estate in the central business district. The incremental property tax revenues consist of two…