Detroit Implemented Developer Tax Break Screening

The city now mandates five-year background checks for developers applying for property tax incentives.

Updated on Sept. 22, 2026 in Remote Work

Bold flat-color editorial illustration of a brass property boundary marker embedded in concrete, evoking municipal oversight and policy review. — The Detroit Economic Growth Corp. now requires five-year criminal and civil background checks for all developers requesting property tax incentives. AI Illustration. Upload story photo >

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Should developers be required to undergo strict background checks to receive city tax incentives?

Detroit has launched a new background check policy for developers seeking tax breaks to protect taxpayer investments. The mandate requires comprehensive criminal and civil checks for applicants covering their business history over the past five years.

Why it matters

The city instituted this screening process to enhance due diligence on entities receiving public financial support. It aims to ensure that developers awarded tax exemptions demonstrate a record of business integrity.

The screening applies to developers like Landy Land LLC, which acquired 55 properties in 2023 and is currently seeking tax exemptions for three buildings along Woodward Avenue. Adam Kessler, who holds an indirect 10.5% interest in the firm, faces a separate pending civil fraud appeal.

The players

Detroit Economic Growth Corp.

This organization is responsible for conducting the newly implemented background checks on developers seeking city incentives.

Landy Land LLC

The real estate firm is seeking property tax exemptions for three of its buildings located along Woodward Avenue.

Adam Kessler

He is an investor who holds an indirect 10.5% interest in Landy Land LLC and is currently appealing an unrelated civil fraud judgment.

The details

The Detroit Economic Growth Corp. oversees the review process, which was formalized in August 2026. This policy change followed scrutiny regarding specific tax break requests from developers with ongoing legal challenges.

Landy Land LLC acquired 55 properties throughout 2023.
A council member questioned a tax break request in July 2026.
A confidential memo regarding the new policy was drafted on September 9, 2026.
The new background check policy went into effect on September 14, 2026.

Market Landscape

This mandate aligns with a broader trend of municipal authorities seeking greater accountability in urban development partnerships. It positions Detroit to tighten its oversight of private entities that rely on taxpayer-funded tax abatements.

Residents may see a more selective process for which building projects receive public funding, potentially shifting which developers are active in the city. The policy aims to ensure that future tax-subsidized developments are managed by firms with cleared background integrity.

The takeaway

The city is prioritizing transparency by requiring developers to disclose their legal and civil history before accessing public funds. Investors and firms seeking incentives should prepare for a more rigorous vetting process when initiating projects in Detroit.