DETROIT — Mortgage mogul Dan Gilbert has pledged $1 billion to establish a new nonprofit that will redevelop, own and operate the Renaissance Center and surrounding 35-acre east riverfront district, officials said Oct. 19.

The contribution comes as the $2 billion project with RenCen owner General Motors Co. moves forward with plans to reimagine the longtime fixture of Detroit's skyline. "It means that Dan will contribute $1 billion and his contribution will never be repaid," said Jared Fleisher, CEO of Bedrock, the real estate development arm of the Gilbert-controlled family of companies.

The Renaissance Center and East Riverfront Projects plan calls for demolishing the 300 and 400 towers closest to the Detroit River and creating five acres of riverfront park space. The 727-foot Marriott hotel tower would drop from roughly 1,300 rooms to 858, the 100 Tower would be converted to housing and the 200 Tower would be renovated into office space. The project will include 18 acres of programmed and publicly accessible civic space and is expected to create more than 8,000 local construction jobs and 2,600 permanent jobs, officials said.

“The Renaissance Center is a symbol of Detroit, and the riverfront is one of Detroit’s most treasured assets,” Gilbert said in a statement. “We all share the goals of bringing new life to the Renaissance Center, of building a thriving riverfront district for all to enjoy, and of maximizing positive community impact. I cannot think of a better way to accomplish these goals than through a nonprofit organization dedicated to this mission in perpetuity.”

Under the proposed new structure, the nonprofit — not General Motors and Bedrock — would own and operate a renovated RenCen; Gilbert would not be repaid for his $1 billion pledge; a nonprofit board would oversee the project; any profits generated by the project, if any, would be reinvested in the community.

The not-yet-named nonprofit will be structured as a 501(c)(4) social welfare organization focused on “civic improvement and community well-being,” officials said.

A nonprofit overseeing a property like the Renaissance Center is uncommon, Erik Gordon, a professor at the University of Michigan’s Ross School of Business, said in an email. The only common nonprofit real estate projects are affordable housing projects that usually are much smaller than the Renaissance Center plan.

“Gilbert doesn't want the RenCen to turn into another half-vacant symbol of Detroit,” he said. “Instead of abandoning his redevelopment plan that was slogging through growing obstacles, he is taking a creative route he has to hope will quell opposition and make it easier to get the $300 million government support package.”

The Rev. Wendell Anthony, president of the Detroit Branch of the NAACP, will serve on the inaugural board of directors, officials said, adding that he is expected to help lead recruitment of a “diverse and experienced” board to oversee the nonprofit. Bill Emerson, former CEO of Rocket Companies, also will serve on the board.

Detroit Mayor Mary Sheffield called the announcement a “historic” moment for the city, saying the $1 billion commitment to establish a nonprofit to redevelop and operate the Renaissance Center would help ensure Detroiters benefit from the riverfront's transformation.

“This project was already the largest, most transformative investment ever pledged in Detroit, and one of the largest ever in an American city,” Sheffield said. "Today's announcement of a $1 billion commitment to establish a new nonprofit with all surplus proceeds invested back in the community truly shows the depth of Dan Gilbert's generosity and his commitment to Detroit."

The announcement comes ahead of another Tuesday meeting of the Neighborhood Advisory Council, where developers are continuing discussions with residents about community benefits tied to the Renaissance Center and River East District redevelopment.

"If there was any uncertainty, today's announcement eliminates any question of Dan Gilbert's commitment to Detroit," Jamaine Dickens, chair of the Neighborhood Advisory Council for the Renaissance Center, said in a text. "It should not be ignored. Our focus as a NAC is to finalize a community benefits agreement that maximizes impact in Detroit and for Detroiters."

Dickens added that it's unfortunate the process can pit developer against the community, but he believes the project always has been capable of improving the quality of life for Detroiters.

"However, this doesn't hurt," he added about the Renaissance Center plan.

Under the nonprofit structure, any profits from the development will be reinvested in community benefits rather than go to Dan Gilbert, Fleisher emphasized Monday. Those benefits include public space, space for small businesses and affordable housing, he said, noting that the project also is projected to generate $300 million in fiscal benefits for the city.

Gilbert’s $1 billion investment is the same money he previously announced, not an additional investment, Fleisher said. The change is in the ownership structure, with the nonprofit taking ownership of the project.

“The structure is changing, and it’s that structure that gets to the heart of, is this for private benefit or public good?” Fleisher said. Bedrock will provide at no cost, project management services to the nonprofit, Fleisher said.

“The nonprofit’s in charge. They own it,” he said. “Their board is responsible, but Bedrock will donate the staff to work on it every day.”

General Motors Co., owner of the RenCen since 1996, will not receive payment for the building or its surface parking lots as part of the transaction, said David Massaron, vice president of Infrastructure and corporate citizenship at GM.

The automaker previously committed to directing any profits from its investment to charity, including public schools. The new structure further aligns GM with the project’s community-focused mission, he said: “We’re contributing $250 million and the building, so we’re not getting paid for this transaction."

The building and other assets will be transferred to an entity with nonprofit status, but the legal structure and governance arrangements are still being worked out, officials said. Massaron said the arrangement is complex because the Renaissance Center and the separate East Riverfront district have different requirements.

Massaron said GM will work with Gilbert’s Bedrock team on the development and have a contract giving it sign-off rights on major decisions, including the final design, major contracts and taking on debt.

GM’s long-term involvement after the redevelopment is complete remains undecided, Massaron said. The automaker wants to ensure the development delivers what was promised to the community.

“I think it’s more of a civic commitment on our part,” Massaron said. “It’s our job to help and do all that we can to make it successful for the city long term.”

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