BeyondDevelopment:ExposingLandGrabs&TheBlightRemoval

TaskForceReport

PeterJ.HammerProfessorofLawandDirectorDamonJ.KeithCenterForCivilRightsWayneStateUniversityLawSchoolDetroitersSpeak,February20,2018

*  PovertyEliminationTaskForce*  Federally“convened”taskforceoffederal,state,city,

publicandprivateactors*  Co-Chairedby1)billionairebusinessman,2)former

UniversityPresidentand3)non-profitleader*  Taskedwithdesigningaplantoeliminatepovertyin

Detroitinasrapidandcompleteamanneraspossible

*  LongawaitedReportreleasedTODAY!

NewsfromanAlternativeUniverse

*  “Povertyisacancer.Povertysucksthesouloutofanyonewhogetsnearit,letalonethosewhoareunfortunateenoughtolivewithitallaroundthem.Povertyisradioactive.Itiscontagious.”*  “Povertyisalsoasymbol.Itisasymbolofallthatiswrong

andallthathasgonewrongfortoomanydecadesintheoncethrivingworld-classcityofDetroit.*  PovertyEliminationTaskForceReport:*  Aggressiveplantoeliminateallpovertywithina5yearperiod!*  Commitmentof$2billiontotheeffort!*  “allhandsondeck”strategy!

NewsfromanAlternativeUniverse

*  “Blightisacancer.Blightsucksthesouloutofanyonewhogetsnearit,letalonethosewhoareunfortunateenoughtolivewithitallaroundthem.Blightisradioactive.Itiscontagious.”*  “Blightisalsoasymbol.Itisasymbolofallthatiswrong

andallthathasgonewrongfortoomanydecadesintheoncethrivingworld-classcityofDetroit.*  BlightRemovalTaskForceReport(BRTFR):*  Aggressiveplantoeliminateallblightwithina5year

period!*  Commitmentof2billiondollarstotheeffort!*  “allhandsondeck”strategy!

RealNewsfromDetroit

BlightRemovalTaskForceReport

*  BlightReportvalues“property”andnot“people”*  BlightReportisatoolforimplementationofDetroitFutureCityPlan*  BlightReportlackspoliticalandanalyticlegitimacy*  Norootcauseanalysisoftheproblem*  Nocredibleeconomiccasefortheproposal

*  Needalternativeapproachesto“blight,”landanddevelopmentintheCity

MajorThemesofPresentation

Recall:DetroitFutureCity

Extremefragmentationofland

*  GivenextremefragmentationofpropertyitisdifficulttoimplementDCF’s50-year,color-codedvision*  NoDFCrolefor“eminentdomain”*  Economiccostandlegalconstraints*  Clevermanipulationoftransactioncostsofholdingland*  Question:Howcandispersedlandbe*  1)convertedfrom“private”to“public”*  2)beaggregatedandreassembled,and*  3)beredistributed?

DFCisadeadletter...unless

Needanewwiz-bangmachine

*  Multiplewaystoforfeitland*  Criminalactivity*  Nuisanceabatement*  Taxforeclosure*  NewStateauthorized“blighttickets”*  [Watershutoffs]

*  Increasespeedandefficiencyofforfeiture*  Automateandoutsourcehearingnoticeprocess*  “bundling”oflandatauction

*  Landbankasmachineforreassemblyandredistribution

BRTFRasLandReassembly

*  Nomentionof“race,”“racism,”“discrimination,”“segregation,”“black,”“white,”“whiteflight”*  Nomentionof“redlining”or“reverseredlining”*  Nomentionof“poverty”(ignoredintaxforeclosure)*  Mentionof“predatory”concerningallegedabusesbypurchasersinthetaxforeclosureauction,butnotpredatorylendinginprivatemortgagemarkets

WhatisnotintheReport?(ThreeRs)

*  “Eventheswiftestandmostaggressivefightagainsttoday’sblightwillaccomplishverylittleifwedon’taddresstheconditionsthatledtoit.Detroit’scollapsingstructuresandvacantlotsdidn’tjust‘happen.’”*  [But]theseissuesclearlyfalloutsidethescopeofourreport.”(197)(seealso18)*  Artificiallycontrived“mandate”

Absenceofrootcauseanalysis

*  NoeconomicanalysisintheReporttojustifyaction*  MartiKopacz:nowaytoassesseconomicrateofreturnonblightinvestment(feasibilityassessmentofBOA)*  Noefforttomodelorexaminelocalpropertymarkets*  “Magicalthinking”basedonablindfaithinpowerofmarkets

EconomicCaseforBlightRemoval?

*  BlightRemovalTaskForceReportwasadeadletter*  NofundinginexitfinancinginbankruptcyPlanofAdjustment*  Federalinvestigationsintocityblightremovalactions

*  Thethreereports(DFC,BRTFRandBOA)functionasanMRIrevealingtheoftenhiddenvisionofthecityandthevaluesofdevelopers*  Howdoesthecityaccomplishthesameend?*  Rampuptaxforeclosures*  Rampupwatershutoffs*  Gilbert“brownfield”bill

Wherewearenow

*  Focusontheneedsofpeoplenotproperty*  Blightisasymptom,notacause–needcommunity-ledprocesstomangetheproblemofblight(demolishingpropertieswhenappropriate)*  Needprogramstokeeppeopleintheirhomesandtoincreasehousingoptionsforthoseindistress*  NeedprogramsthatcreateopportunityandmeaningforDetroitresidents

Needalternativeapproaches

Backtothefuture