1

Brightmoor Land Use

Prepared by AAB Development Strategies, LLC

McKenna AssociatesAllen Associates

Spalding DeDecker Associates

2

Understanding Detroit Land Use

Global Issues 1924 – Ford Employs 70,000 People In Model T Plant on

100 Acres = 700 people/acre 1954 – Dodge Main Employs 43,000 People 5 story, 5

Million Sq Ft on 58 Acres = 730 People Per Acre In the 50’s, The Block-long Hudson’s Was 25 Stories

Tall, It Was The World's Tallest Department Store 1950s – Detroit Is Full – Essentially Most Land

Developed – over 1.8 Million people City Economy is Healthy City is Center of Manufacturing Detroit Cannot Respond to Changing Economy’s New Land Use

Requirements

3

Understanding Detroit Land Use

In the 50’s the World Starts to Change Peak of the Industrial Era Industry Starts to Move to One Story Plants Today, GM Poletown Plant Employs 2,500 People on

475 Acres = 5.3 People/Acre 1st Regional Shopping Center Built in ‘54 Contains 3

Story Suburban Hudson Lodge Opens in 54 – Detroit Builds Before Interstate

Purpose is to Feed Downtown Improves Access to Suburbs

Eisenhower Initiates Interstate Program in 56

4

Understanding Detroit Land Use

Important Statistic Since I776, Travel Time to Work Remains 25

Minutes – People Move to Be Near Jobs

Industry Moves to Build New Modern Facilities People Move with Them FHA Accelerates Housing Construction Suburban Housing Discrimination Leaves

African-American Population Behind

5

Understanding Detroit Market Jobs Are Leaving Detroit Faster Than

Population (Between 1970 and 2005) (-60.5% vs. -43.5%)

Detroit Loses 427,000 Jobs Creates Pent up Pressure For More

Population Exodus Detroit Loses 653,000 People Detroit Losing >4,400 Households/

Year Between 2000 and 2008 New Neighborhood Housing Buyers &

Tenants Are Detroiters Meaning Every New Unit = Demolition

Vacancy Rate Changes 10.3% to 16.1% - 57,000 Vacant Housing Units

Population & Job Data

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

1960 1970 1980 1990 2000 2010

Year

Detroit Population

Detroit Jobs

SE Michigan Population

SE Michigan Jobs

6

Where Detroit Residents Work

Detroit 154,933 48.6% Southfield 15,644 4.9% Dearborn 14,332 4.5% Livonia 12,893 4.0% Warren 10,082 3.2% Troy 7,040 2.2% Sterling Heights 5,263 1.6% Romulus 5,184 1.6% Farmington Hills 5,047 1.6% Highland Park 3,675 1.2% Elsewhere 84,908 26.6%

Detroit Working Residents 319,001 100.0%

More Detroiters Now Commute to Work in Suburbs Instead of DetroitMost of Detroit is Suburban in Use & FunctionBoston Has 682,000 Jobs for 286,000 Workers of 608,000 ResidentsDetroit Has 318,000 Jobs for 319,000 Workers of 825,000 Residents

7

Detroit’s Competitiveness

Loss of Jobs to Suburbs Pull People Out On Average, People will Locate Within 25 Minutes of Jobs If Roads are Congested People Move Closer to Work

Roads Are Congested Out of City Need to Convert Residential land Uses to Job Producing

Estimate City Needs 72,000+ New Jobs to Help Stabilize Population Base

Estimate City Needs to Maintain Existing Jobs to Stabilize at approximately 500,000 to 600,000 Persons

8

Detroit’s CompetitivenessHousing Cost DifferencesCost Impact on New Housing Values

Housing Cost Detroit Southfield Brownstown

Property Taxes $410.19 $335.94 $194.31

Local Income Tax $83.33 $0.00 $0.00

Auto Insurance $178.45 $91.41 $79.85

Home Insurance $95.00 $88.33 $54.92

Principal & Interest1,2 $333.03 $584.32 $739.31

Total PITI&I $1,100 $1,100 $1,100

HH Income $40,000 $40,000 $40,000

Value of New Home $150,000 $150,000 $150,000

Affordable Amount $62,037 $108,849 $143,608

$46,811 $81,571

9

Detroit Must Become Cost Competitive

Affordability High Insurance Costs Redline City

Major Barrier to Cost Competitiveness Estimated Loss to Property Values > $4 Billion Need to Review Legal & Legislative Response

Require Detailed Study to Build the Case Fairness of Cost Allocation Comparison w Other States Options

Governor’s New Initiative May Create OpportunityNeed Foundation Funded Task Force

Need Improved State Aid for Low Income City Revenue Losses Need Dramatic Change to Change Direction

Constitutional Amendment Cut Millage & Remove Income Tax In Exchange for Increased Assessment

Limit Assessment Changes to Inflation for 5 Years Need Detailed Analysis

10

Detroit’s Population Projection

The City’s Population Is Likely To Stabilize At Between 500,000 And 600,000 By 2025

Sustainable Detroit Action Team ReportSponsored by AIA

Detroit Needs to Plan Itself To House About 600,000 People by 2025

National Real Estate Institute

11

Summary Detroit Jobs & Population Are Shrinking

Road Congestion Force People Closer to Work As Discrimination Lessens, More People Leave Must Plan For Smaller City Job Creation & Neighborhood Preservation Must Be First Priority Land Management Critical to Future

Detroit Must Become Cost & Quality Competitive Detroit Has Excessive Affordable Housing

Freeze LIHTC Developments Unless Needed To Stabilize Neighborhoods

Must Demolish Excessive Substandard Housing Must Preserve Neighborhoods – Move People From Blighted Area Provide Home Improvement Loans for Quality Intact Neighborhoods Encourage Fair Housing in Region

Establish Incentives for Detroit Housing Down Payment Assistance Homeownership Tax Credit Loan Program Encourage DHC to Acquire Quality Neighborhood Houses Target Investment to Quality Intact Neighborhoods

12

Brightmoor Demographics

Population 2008 = 24,552 Change (from 2000) = -10.8% Households 2008 = 8,615 Estimated Vacant Units = 1,335 Change (2000) = -11.4% Owner Occupied Housing = 5,234

Declining Faster Renter Occupied Housing = 4,486 82.3% African-American Population Median HH Income = $40,341

20.7% Make <$15,000 11,416 City Lots

13

Original Brightmoor

Designed to Fail Low Cost Housing for

Appalachian Auto Workers 600–800 Sq ft Houses On Slab Small Lots Out House in Rear Substandard Construction City Annexes & Builds Sewers

14

Projected Number of Houses, Households & Vacancies in Brightmoor

Projected Number of Houses, Households, & Vacancies

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000# of Houses

Occupied

Vacant

Housing Exceeds # of Households by 1330+ Units

Normal Vacancy Rate is 1½ % for Homeownership & 5% for Rentals

Need to Demolish 1,100 Units to Balance Markets

Need to Demolish Estimated 107 Unit/Year Thereafter

Any New Housing Increases Demolition 1:1 Until Structural Issues Are Resolved Make it Part of Cost

Projected Number of Houses, Households, & Vacancies

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000# of Houses

Occupied

Vacant

15

Property Conditions

Quality Neighborhood Being Threatened by Foreclosure

New Housing Has Not Stabilized Neighborhood

Most Property is Privately Owned

  Total Quality

Area Other

Area

Vacant Lots 3,860 362 3,498

Renovate 1,112 254 858

Demolition 465 33 432

 Total 5,437 649 4,788

16

Public, NDND & Foreclosure Owner

Foreclosures Start to Affect Quality Neighborhoods

Need to Intercede to Protect Neighborhoods

Colors Emphasize Public Ownership Confusion Impossible to Have

Coordinated Development Strategy

Need to Assemble All Property Under Land Bank / Neighborhood Management

17

Fragmented Land Management

  Total Quality

Area Balance

Wayne County 678 43 635

NDND 621 14 607

MLBFTA 416 37 379

City 731 42 689

Bank Foreclosed 411 230 181

HUD 124 59 65

WCLBC 2 2 -

VA 6 6 -

Total 2,989 433 2,556

Need to Manage Property Under Single Management

18

Public, Foreclosed, Vacant, Demo Properties

Same Chart Made More Readable To Determine Land Availability NDND Property City Property County Property State Property Vacant Land Property Demolition Property Foreclosed Property

19

Street Maintenance

Maintenance Unrelated to Neighborhood Conditions

Street Maintenance Needs to Be Targeted for Quality Areas

20

Brightmoor Neighborhood Design

Quality Neighborhood Brightmoor Next Economy Tech Park BNETP Phase 2 - Southeast Section Commercial Areas Southwest Section Northwest Section Northeast Section Eliza Howell Redford HS Hubert School

21

The New Brightmoor Neighborhood

Preserve & Reinforce Quality Areas Create Opportunity Area

Encourage Residents to Move to Better Areas Offer Foreclosed Houses in Trade

Job Opportunity Brightmoor Next Economy Business Park

Move Outer Drive to Fenkell to Frame New Area Structure Residential Area for Large Lots –

Gardens + Farms Establish Homestead Program Eliminate Many N-S Streets Establish Homestead Program

Relocate LIHTC Homes - Fill SE Neighborhood Commercial Center On Fenkell East of Burt Rethink Hubert School Closing

Or Convert to Community Center Or Demolish

Redford HS Site is Development Opportunity Community Service Center Neighborhood Shopping Center

22

Preserve Institutions

Preserve & Improve Quality Residential Areas

Churches & Community Centers Preserved

Greenway Maintained

23

Proposal – Quality Neighborhood

Use Wayne County Nuisance Abatement Program for Land Control Demolish Blighted Vacated Housing Immediately – 120 days Use Systematic and Consistent Code Enforcement For Demolition- Use Deconstruction Techniques Using Local Residents

Create Employment Opportunities Grant Vacant Lot to Neighboring Homeowners

Conditional on Integrating Into Property Establish a Home Improvement Program – Use NSP for Foreclosed

Flipped Property Rehab & HOME Funds for Balance + MSHDA PIP Use NSP to Acquire, Repair, Sell Foreclosed & Abandoned Property

Trade For Owner-occupied House in Opportunity Neighborhood Create a THERE There – Still Defining – Reduce Neighborhood Access Include Quality Area in City Tax Abatement Program Any New Housing Should be in Brick & Homeownership

24

Opportunity Area Create Opportunity for Residents to Move to a Quality Neighborhood Establish DEDC/DFTLBA/Next Energy JV As Developer Use County Nuisance Abatement to Acquire Properties Needing Demo. Trade Other Foreclosed Properties to Homeowners for their Property NDND Acquire All Slumlord Properties

Manage Properties Until Relocation Opportunity Relocate Persons to Quality Neighborhood Foreclosed Properties or Relocate Persons to Tax Credit Developments or Public Housing Demolish Properties & Transfer to Brightmoor Next Economy Tech Park Review Tenant Selection Program to Open Opportunity for Ex-offenders

Acquire Private Vacant Lots Close Streets as Blocks are Vacated Relocate Outer Drive to Fenkell

Acquire south side of Fenkell - West of Burt Road Maintain as Limited Access Tech Park Keep Lyndon as Pedestrian/Bikeway Greenway

25

Opportunity AreaBrightmoor Next Economy Tech ParkJob Producing initiative

Establish a Green Business Park 420 Acres Outer Drive Entrance Move East-West Outer Drive to Fenkell Suburban Green Style, 40 Foot Setbacks Open Space Design 10 Megawatt Solar Energy Pilot w DTE

Need More Detailed Proposal – Propose to Governor for Stimulus Package

Targeted Green Uses at Next Economy Industries

Windmill Production PV Production Life Sciences Production Greenhouses – hydroponic farms Bio-fuels Production Next Economy Growth Firms

26

Opportunity AreaBrightmoor Next Economy Tech ParkJob Producing initiative

Can Create Value 2.6 – 4.4 Million Square Feet $325 - $544 Million in Value 5,200 – 8,700 jobs

Farm During Pre Sale Period Developer = DEGC/DEDC Or Private i.e., DeMattia or

Both

27

Brightmoor Next Economy Tech Park

Phase 2 Move LIHTC Housing Units to South Eastern Section Complete Acquisition Using of Balance of Property

Using Same Procedures as Phase 1 Area

28

Southwest Neighborhood Structure Larger Lot Residential Neighborhood

Recognizes Poor Projected Market for Housing Target Based on Land Availability

Establish Homestead program Create With Minimum Dislocation of Existing Residents Use Natural Forces as Driver Maximize Positive Impact on Homeowners

Initiate Systematic Street Closures to Reduce City Costs & Land Control to Create Controlled Green Spaces Lease Lots for Farming & Community Gardens

Can Hubert School Become Community Center If not, Demolish

Target Infill Development by NDND NDND to Manage Common Areas

29

Southwest Neighborhood Use Wayne County Nuisance Abatement Program for Land Control

Demolish Properties Set Up Program to Obtain All Tax Reversion Property Prior to Auction for

Demolition, If Good – Management by NDND Purchase & Trade Foreclosed Property in Quality Neighborhood for Existing

Owner - Occupied Homes Plan Systematic Street Closures to Reduce City Costs & Land Control to

Create Controlled Green Spaces Lease Lots for Farming & Community Gardens Locate LIHTC Housing to Protect & Expand Quality Neighborhoods – Need to

Close Unproductive Streets Permit NDND to Acquire and Build LIHTC Development – Brick Front –

Should Complete Neighborhood Create Neighborhood Management of Open Areas

Establish a Home Improvement Program After Infill – Use NSP for Foreclosed Flipped Property Rehab & HOME for Balance

Use NSP to Acquire, Repair, Sell Foreclosed & Abandoned Property Trade For Owner-occupied House in Reinvention Neighborhood

30

North of Fenkell Place All Property Under Single Control Structure Larger Lot Homesteading Program

Live – Work Land Use Use Business Loan Program Forestry, Organic Farms, Animal Raising, Bee Hives

Obtain All Tax Reversion Property & Demolish Targeted Based on Land Availability

Create With Minimum Dislocation of Existing Residents Use Natural Forces as Driver Maximize Positive Impact on Homeowners

Initiate Systematic Street Closures to Reduce City Costs & Land Control to Create Controlled Green Spaces

Use County Nuisance Abatement to Obtain Properties Needing Demolition

31

Eliza HowellImprovements + Soccer Fields – Private Management

Recreation Uses Service Regional Area & Neighborhood Splash Park, Skateboard Park, Improving Outdoor Sports Fields, & Outdoor Garden Spaces With An Urban

Farming Element Indoor & Outdoor Soccer Fields

32

Eliza Howell

Need to Find Non-city Operator Establish Indoor

Soccer Fields

33

Eliza HowellA Potential Alternative

Establish Joint Development Program to Develop Eliza Howell Park as Big Box Center + Developed Park

Detroit Exports $2.6 Billion In Retail Sales Access to I-96 & Telegraph Road Partnership of NDND, Trinity CDC, &

Residual Owner Option Auto Auction Operation in Redford

Township Need to Seek Developer Partner

Need Time to Go Beyond Today’s Economy If Attempt Fails, Park Returns to Existing

Role Community Profits, TIF Reinvested in Site,

Park & Brightmoor Community TIF to Finance Balance of Park

Establish Church Based Training Program Need to Reduce Store Pilferage Look at Manchester Bidwell Concept

Residual Owner Suing City to Obtain Property

34

Job Producing OptionCommunity Center or Shopping Center

Redford High School Best Available Location for Neighborhood Shopping

Center Community May Not Be Ready to Accept Demolition Recommend Initiation of Architectural & Economic

Study (Business Plan) to Determine Whether It Can Be Converted to Community Service Center a la Samaritan Hospital Donated to Holy Cross and SER

If Not, Demolish

35

Job Producing OptionsEncourage Local Entrepreneurism

All Implementation Activities Should Be Used to Create Local Jobs Use to Encourage Urban Entrepreneurism

Management & Maintenance of Land Banked Property Demolition Through Deconstruction Techniques Home Repair & Rehabilitation - Youthbuild

Farming & Homesteading Intermediate Solution Provide Training In Farming Techniques Encourage Greenhouse Farming of High Value Plants

Do Not Sell Until Development Plan is Approved Use Leasing of Land Bank Land For Farming

Maintains Future Flexibility

36

Recommended Organization Structure

Establish Brightmoor Neighborhood Improvement Authority (PA 61 of 2007) To Implement Plan Keep Local Leadership Involved

Establish Cooperation Agreement w/Land Bank Authority (PA 7 of 1967) To Provide BMIA with Land Bank Authority

Prepare PA 344 Plan to Eliminate Blighted Properties by Selective Use of Eminent Domain in 2nd or 3rd Year Suggest Limited Use to Non-homestead Property

Managed by NDNI or DEGC or Both

37

Land Management – Land Bank It is Proposed That All Land Owned by a Public Agency, HUD & NDND Be

Transferred to Single Land Bank - State Agrees County Treasurer & MFTLBA Agree to transfer Detroit Property to Detroit NDND Would to Store Their Property In Land Bank or Sell to Land Bank

NSP Funds Needs to be Used to Manage Property for Next Five Years Need Land Management Team

Create Urban Cooperation Agreement w Brightmoor Neighborhood Improvement Authority

Need Organization That Can Be Responsive to Community Managing Maintenance of Existing Property - Use Local People Perform Demolition – Use Local People Use NSP to Acquire, Rehab, and Sell (in Quality Areas) or Own Foreclosed

or Abandoned Property for Temporary Rent Offer Houses In Trade for Owner Occupied Homes in Reinvention Area

Use NSP to Demolish Houses Needing Demolition Excessive Renovation Cost in Reinvention Areas

Manage Agricultural Leasing Program

38

Land Management – Land Bank

Obtain Control of All Tax Reverted Property Manage Homesteading Program Establish Citizens District Council as Part of 344 Plan

Include Brightmoor Alliance Chair, Recommend Action to Land Bank for Final Decision Bind Everyone to Plan

Obtain All Tax Reversion Property Prior to Auction for Demolition or If Good – Temporary Management by NDND Prior to Sale

39

Sources & Uses – Quality Area

Use of Funds (x1,000) Source of Funds (x1,000)

Acquisition Road Funds $17,411

Demolition NSP $14,838

Relocation CDBG

Street Construction $15,670 HOME $3,183

NSP Demo $376 Foundation

NSP Acquisition $10,858 HUD 108

NSP Rehab $1,325 Mich. Tax Credit

Homeowner Rehab $2,750 NMTC

Project Management $3,543

Total $35,433 Total $35,433

40

Sources & Uses – Opportunity Area

Use of Funds (x1,000) Source of Funds (x1,000)

Acquisition $54,740 Road Funds $16,585

Demolition $8,408 NSP $3,724

Relocation $4,110 CDBG $4,968

Construction $17.332 HOME

NSP Demo $2,080 Foundation $24,051

NSP Acquisition $1,305 HUD 108 $22,186

NSP Rehab Mich. Tax Credit $12,750

Homeowner Rehab New Market T.C. $15,259

Project Management $8,798

Total $96,774 Total $96,774

41

Sources & Uses – Redevelopment Areas

Use of Funds (x1,000) Source of Funds (x1,000)

Acquisition $5,179 Road Funds $16,068

Demolition $1,452 NSP $4,943

Relocation $968 CDBG $8,359

Construction $14,606 HOME $3,256

NSP Demo $2,520 Foundation

NSP Acquisition $784 HUD 108

NSP Rehab $1,190 Mich. Tax Credit

Homeowner Rehab $2,851 NMTC

Project Management $4,120

Total $32,626 Total $32,626

42

Next Steps DEGC/NDNI Approve Strategy

Determine Target Completion Date – 5 Years(?) Form Neighborhood Improvement Authority to Implement

DEGC/NDNI to Manage Prepare Residential Area Regulations for Planning Commission Prepare Reuse Studies & Plans for Hubert School & Redford School Hire University School of Urban Planning Professor to Define Blight

Prepare PA 344 Plan – 2nd Year Form Team to Seek Howell Park Operator Start Now

Maximize Use of NSP funding in Keeping with Plan Assemble Financial Commitments to Implement Have DFTLBC Act to Assemble Targeted Property Including Tax

Reverted Property Prior to Auction

43

Brightmoor - Then – Now - Tomorrow