With thanks to Leslie M

  • Overview of public investment requested by District Detroit
 
  • District Detroit developers want half of cost covered by public financing - from Bridge Detroit = see LM's Note: 
  1. The Detroit Brownfield Redevelopment Authority is to promote the revitalization of environmentally distressed and blighted areas. SUPPORTING STATUTE - Public Act 381 of 1996
  2. The Detroit Brownfield Redevelopment Authority is a nine-member body with four members appointed by the Mayor, and four members appointed by City Council; the eight appointees choose the ninth member. 
  3. February 08, 2023 - The Detroit Brownfield Redevelopment Authority voted 5-2 Wednesday to approve proposed tax captures for the $1.5 billion District Detroit project, including $616 million in buildout reimbursements to developers.
 
  • District 1 and All Meeting - Pro Temp. James Tate, chair of City Council’s Planning and Economic Committee will host a presentation and discussion of The District Detroit
 
  • People’s Platform = Call to Action
 
  • District Detroit Map - See any parking structures...how about low-income housing ????
 
  • Brownfield Grant and Loan Factsheet

 
 


District Detroit 
 
  • The total public investment requested is $797.75 Million. 
 
  • Over the next 35 years, the revenue and Tax loss related to the District Detroit will be $226.8M for Schools and $5.7M for libraries. 
 
  • In 2018, Ilitch Holdings total combined revenue was $3.8 billion
 
  • According to Forbes magazine, Ross has a net worth of $7.6 billion in 2020.
 
  • Like Ilitch and Olympia in Detroit, Ross and Related are known as bad landlords and bad neighbors in markets across the US. 
 
 
 

District Detroit developers want half of cost covered by public financing


January 13, 2023
Malachi Barrett
Bridge Michigan

District Detroit developers want half of cost covered by public financing

 

Developers behind the $1.5 billion “District Detroit” project are asking state and local officials to subsidize roughly half of the cost through taxpayer-funded loans and tax cuts. 

Residents who live near the proposed slate of 10 developments on the north end of downtown heard the details during a Tuesday night meeting of the project’s Neighborhood Advisory Council. 

While the development team – the Illitch family’s Olympia Development and Stephen Ross’ Related Cos. – will seek $797 million through multiple loan and tax cut programs, the city expects to collect $751 million in property taxes over the next 35 years.

Representatives with the Detroit Economic Growth Corp. (DEGC) posed the tradeoff as “all upside for the city.” 

“Incentives are only granted when there’s a net benefit,” said DEGC Executive Vice President Kenyetta Hairston-Bridges. “If at any point in time the developer does not follow through on these commitments, the City Council has the right to go to the state and ask to rescind the abatements. All tax abatements are governed by a legal agreement, and the city will never lose money on a tax abatement. The project will not receive the benefit of the tax abatement until they are totally constructed.”

map
A map of proposed developments in the “District Detroit” area. (Image provided by the City of Detroit)

Most of the financing would come from a $616 million 
[so-called] transformational brownfield plan, which needs approval from the Michigan Strategic Fund, Detroit City Council and the city’s Brownfield Redevelopment Authority. The program allows large-scale projects to have a portion of construction costs reimbursed through taxes collected from the project over 35 years. 

LM's Note: 

"The Detroit Brownfield Redevelopment Authority is to promote the revitalization of environmentally distressed and blighted areas within the boundaries of the City of Detroit."

How in anyone’s mind is that area considered environmentally distressed and blighted ? ? ?

See Fact Sheet below....

A brownfield, as defined by the US Environmental Protection Agency (USEPA), “is a property the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant.”  Brownfields are often abandoned or unutilized sites due to the presence of contamination or suspected contamination. 

 

Detroit's BSEED-Environmental Affairs (EA) has facilitated countless redevelopment projects, such as clean-up activities located along the Detroit Riverfront.  

Some recent revitalization projects include-  

  • Orleans landing  
  • Eastern Market  
  • Brodhead Armory 
  • Riverside Park  
https://detroitmi.gov/departments/buildings-safety-engineering-and-environmental-department/bseed-divisions/environmental-affairs/brownfields-redevelopment

Developers are also seeking to reduce property tax bills through a $96 million tax abatement for commercial properties and $37 million tax abatement for residential properties, which both require approval from the DEGC and City Council. Another $48 million in two loans were approved Wednesday by the city’s Downtown Development Authority, including a new loan program aimed at subsidizing “deeply affordable” housing.

Members of the DDA debated whether to award the loan to Olympia and Related Cos., with some arguing that a $23.7 million loan would exhaust available funding that could be used for other projects.

“I support housing, and I support infrastructure but I cannot support ($23.7 million) being given to one entity when there are so many needs for the continuation of redevelopment and property of this entire downtown,” said DDA member Marvin Beatty. “It’s too goddamn much money, too much tax money.” 

Another $25 million loan to reimburse infrastructure construction was less controversial. Both loans were ultimately approved by the DDA. Wednesday’s vote came a day after Mayor Mike Duggan announced the loan program, and said District Detroit would be its first recipient. 

The amount of financial help is “hard to wrap your head around,” said Francis Grunow, a frequent attendee at District Detroit meetings. Grunow is a Detroit resident who served on a now-disbanded neighborhood advisory board during the Illitch family’s construction of Little Caesars Arena.

“It just kind of underscores the need to really think about our taxing regime overall,” Grunow said. “It’s bigger than a district or Detroit, even. Is this the only way that we can do this kind of stuff? It just doesn’t seem sustainable.” 

Nevan Shokar, associate director for special projects at DEGC, said the incentives don’t go too far. He argued the District Detroit developers wouldn’t be able to attract investors for the project or secure bank loans without the help. 

“The big question is: Could this project happen without incentives?” Shokar said during the Tuesday night meeting. “No, this project would not happen without incentives.” 

DEGC representatives said the tax breaks will result in a long-term boon for the city’s tax revenues. Annual revenue from the properties today is only $249,000 per year; that would increase to $21 million annually after 35 years. The DDA would receive a net benefit of $375 million to use on future projects as well, according to the Tuesday night presentation. 

If all the pieces fall into place, the developers could have roughly 53% of the development cost covered through loans and tax cuts. However, all of the incentives are contingent on the projects being finished. Developers have a sprawling vision for the area, with plans for four residential buildings, four commercial offices, two hotels, on-site parking and public space enhancements. They plan to finish it all by 2028. 

Overall, the projects are expected to create 1.2 million square feet of commercial office space and 146,000 square feet of retail space, along with 467 hotel rooms and 695 residential units. 

Developers hyped dramatic changes for the area, displaying design renderings that promise bustling street corners and connected neighborhoods in the place of surface parking lots. Rian English Barnhill, vice president of government and community affairs for Olymipa, said the goal is “keeping the soul of Detroit” that represents a population that is majority-Black and working class. 

“We want this to be a downtown for everyone,” English Barnhill said. “We want to make sure the folks who have stayed through every economic downturn have a place to take part in all the excitement.”

One-fifth of the housing units would be offered at reduced rates that are affordable for a two-person household earning $35,800 or less. Those 139 units would be affordable for people earning $16 an hour, Hairston-Bridges said. 

“Our low-income residents in the City of Detroit will be able to live in downtown Detroit – where many of them work – and they will be able to join in the same amenities as the market rate units in this development,” Hairson-Bridges said. 

Duggan said the new loan program was created to prevent low- and middle-income Detroiters from being priced out of downtown housing. Only offering market-rate units creates “a bastion of wealthy folks in one area,” Duggan said, and contributes to economic and racial segregation. 

“I believe Detroit is a place where the doctor who works at Henry Ford Hospital should be able to be in the same neighborhood as the Henry Ford Hospital workers in the cafeteria,” Duggan said at Tuesday’s Detroit Policy Conference. “That’s what a city is about. It’s people of different incomes and different backgrounds living together.” 

The new DDA financing tool offers loans for projects where at least one-fifth of housing units are reserved for people earning between 50% and 70% of the median income for Wayne County. That’s between $31,350 and $43,890 for one person.

Portions of the loans could be forgiven if developers rent the units to people who have lived in Detroit for at least three years. Duggan says it’s a measure to give preference to Detroiters. 

“We don’t just want to preserve the affordable housing, we want to build it,” Duggan said. 

Housing affordability is based on the area median income for Wayne County, not the city of Detroit. Census data shows the median income for Detroiters is $18,000 less. Grunow said targeting rental rates at 50% of the area median income helps make up some of the difference. 

“Having the deepest amount of affordability is a good thing, but at what cost?” Grunow said. “It’s an incredible cost.”

Duggan said Detroit can attract new residents while protecting those who have lived here much longer and are worried about being priced out. 

“You see a number of these cities where they did not plan for the impact of gentrification,” Duggan said. “You start to bring in these kinds of jobs and housing costs go through the roof. There is a growing confidence that there’s a city in the country that can welcome new people, while still watching out for those who’ve been here.”

Another major question surrounding District Detroit is whether more office space is needed in downtown Detroit. Since the COVID-19 pandemic, average daily workers downtown slid by 68%, according to data presented at Tuesday’s policy conference 

Eric Larson, CEO of the nonprofit Downtown Detroit Partnership, said he doesn’t expect workers will be in the office five days a week as they did before the pandemic. Duggan said employers are using less space but companies still believe that in-person work is essential to their culture. 

“It’s not like Stephen Ross doesn’t know what he’s doing when it comes to building offices,” Duggan said. “Why is he building on the space? Because he believes when you add the University of Michigan grad school down the street, that Detroit is going to be a very desirable place for national and international companies.” 

https://www.bridgemi.com/business-watch/district-detroit-developers-want-half-cost-covered-public-financing
 
 


Are you familiar with

the $800M

Detroit Tax Credits

request from 



The District Detroit Project?

 

Find out about it:

This Monday at 6 p.m.

 

DISTRICT 1 AND ALL

MEETING 

 

Join the discussion on
 

The District Detroit Project

 

Get all your Questions Answered

 

dd1

Join Via Zoom

https://cityofdetroit.zoom.us/j/84293121846

 


People’s Platform NEWS
 
 
 
 
 
 
This Week
 
Monday, Feb 20 – Get Engaged – Ask Hard Questions
   
  • 6pm - District 1 and All Meeting
  • Pro Temp. James Tate, chair of City Council’s Planning and Economic Committee will host a presentation and discussion of The District Detroit
  • Zoom: https://cityofdetroit.zoom.us/j/84293121846
 
Tuesday, Feb 21 - Call to Action
 
  • 10am - Detroit City Council, Committee of the Whole
  • In Person CAYMC or Zoom - https://detroitmi.gov/Online-CC-Meeting
  • Agenda Highlight: Land Transfer: Moroun-owned Detroit International Bridge Company (See Below)
 
  • 6pm – Call to Action - District Detroit CBA Meeting
  • Cass Tech Auditorium North Entrance or Zoom bit.ly/DistrictDetroitCBO
  • Email the Neighborhood Advisory Council This email address is being protected from spambots. You need JavaScript enabled to view it.
  • Demand the NAC NOT sign the deal! This is a BAD CBA!
 
Thursday, Feb 23 - Call to Action
 
  • 11 am – Call to Action - Planning and Economic Committee
  • In Person
  • or Zoom - https://detroitmi.gov/Online-CC-Meeting
  • The District Detroit CBA and Transformational Brownfield Plan will be considered by the committee before going to full council for a vote.
  • The CBA is BAD! The Brownfield Plan takes too much! DPP says, “Stop the Deal!”
 
Don’t Miss…
 
Media Axios: District Detroit community benefits process nears finale
 
https://www.axios.com/local/detroit/2023/02/17/district-detroit-community-benefits-nears-finale
 
  • “By the numbers: The list has yet to be finalized, but District Detroit is proposing making around $12 million in financial community benefits contributions.”
 
  • “Reality check: The proposed benefits are mostly actions the developer should already be taking, Theo Pride of activist group Detroit People's Platform tells Axios. “They are not being critiqued enough by the NAC, are ‘business-centered’, and don't benefit the ‘average Detroiter’, Pride says.

 
DPP stands in solidarity with Hubbard Richard Resident demand for a CBA  
Transit - Detroit Free Press Letter to the Editor






Tuesday Call to Action!
 
Tuesday, Feb 21, 6pm - The Final CBA Meeting
 
  • 6pm – Call to Action - District Detroit CBA Meeting
  • Cass Tech Auditorium North Entrance
  • or Zoom bit.ly/DistrictDetroitCBO
  • Email the Neighborhood Advisory Council This email address is being protected from spambots. You need JavaScript enabled to view it.
  • Demand the NAC NOT sign the deal! This is a BAD CBA!
 
Detroit People’s Platform says, “THIS IS A BAD CBA!”
Call to Action demand the Neighborhood Advisory Council NOT sign the deal and call the city’s Planning and Development Department and tell them what you think.
 
There are many reasons why this is a bad CBA:
  • Three of the NAC members have been appointed by the Planning department on multiple NACs.
  • NAC Parliamentarian Jonathan Kinloch is a Wayne County Commissioner.
  • The NAC has been pressured by the city and the developers to sign off on the CBA quickly.
  • The NAC have voted in a manner that limits their power rather than builds upon it.
  • The numbers provided by the city in the community benefits package were inflated by including co-invested or leveraged benefits and failed to identify direct contributions.
  • This is our tax dollars, not a direct investment from the developer!
  • On average, residents in The District Detroit impact area voted for a strong CBA through Proposal A in 2016. THIS IS NOT A STONG CBA!
There are numerous other examples and reasons why the NAC should refuse to sign off on this CBA. They know it as well, because Detroiters have been telling them what to look out for the whole time. As board member Eric Duekeke stated during the DBRA vote “Well, I guess that’s on them.”

This is a BAD CBA and Detroiters have made that clear.
 
The NAC has failed to address the Equitable Detroit Coalition’s CBA Recommendations:
  • Make a substantial multi-year investment in the Affordable Housing Trust Fund.
  • Invest in a relocation fund to support those who will be displaced.
  • Make the libraries and schools whole!
 
The NAC has failed to address recommendations brought forth including for:
  • The project to utilize a Racial Equity Framework
  • The developers to include benefits specifically for Black Detroiters rather than label these as DISADVANTAGED.
 
Detroit People’s Platform says, “THIS IS A BAD CBA!”

Call to Action demand the Neighborhood Advisory Council NOT sign the deal and call the city’s Planning and Development Department and tell them what you think.
 
This entire process has been mismanaged by the Planning Department. Call Planning Director Antoine Bryant and CBA Manager Aaron Goodman and tell them what YOU think about the CBA process.
 
Antoine Bryant
Director, Planning & Development Department
(313) 224-1105
This email address is being protected from spambots. You need JavaScript enabled to view it.
 
Aaron Goodman
Manager - Community Benefits Ordinance
(313) 224-3577
This email address is being protected from spambots. You need JavaScript enabled to view it.
 






Thursday Call to Action!

Thursday, Feb 23 11 am - City Council Planning and Economic Committee
   
The CBA is BAD! The Brownfield Plan takes too much!

Detroit People’s Platform says, “Stop the Deal!”

Call to Action: Tell Detroit City Council What YOU Think!
 
  • The total public investment requested is $797.75 Million. (1)
  • Over the next 35 years, the revenue and Tax loss related to the District Detroit will be $226.8M For Schools and $5.7M for libraries. (1)
  • In 2018, Ilitch Holdings total combined revenue was $3.8 billion and according to Forbes magazine, Ross has a net worth of $7.6 billion in 2020. (2),(3)
  • Like Ilitch and Olympia in Detroit, Ross and Related are known as bad landlords and bad neighbors in markets across the US. (4), (5)
 
Detroit People’s Platform says, “Stop the Deal!”

Detroiters have attempted to address the many injustices embedded in the District Detroit deal at every opportunity thus far.

Opposition to the public funding, the public tax incentives for this deal has been loud and consistent.

Record numbers of Detroiters engaged in the Detroit Brownfield Redevelopment Authority approval process to embed rational opposition into the public records before the Planning and Economic Committee.
 
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See any parking structures...how about low income housing ????

This map shows the types of development and locations planned in the Detroit Detroit.
 



 
 
 
Please note that I do not send out notices for Detroit  City Council General or Committee Meetings....if you are interested in the General Meetings and Committee Meetings or wish to see an Agenda, please go to:   
 
      
City Council Meetings and Agendas City of Detroit (detroitmi.gov)
 





Forwarded by Midtown Alliance
     And by the 3rd Precinct Police/Community Relations Council
Per Leslie Malcolmson
313-831-7931
cell 313-378-1130

fax 313-833-3343
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"The question is not 'Can you make a difference?'  You already do make a difference.
It's just a matter of what kind of difference you want to make during your life on this planet."
– Julia Butterfly Hill
 
Hill is best known for living in a 180-foot (55 m)-tall, 1,000-year-old California Redwood tree for 738 days between December 10, 1997 to December 18, 1999. Hill lived in the tree, affectionately known as "Luna," to prevent loggers of the Pacific Lumber Company from cutting it down.
                            
I will remember Troy Davis
I will remember Rachel Corrie
I will remember James Chaney, Andrew Goodman, and Michael Schwerner.....REMEMBER THEIR NAMES.