federal reserve detroit economic development challenge

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Eligibility: Any Michigan high school Groups of 3-5 students 1 team per school Proposed Partners: Detroit City Council, Roundtable members, community foundations (Kresge) Scheduled Implementation: 2015-16 school year The Detroit Economic Development Challenge (DEDC) would be an economic development challenge for high school students, modeled after the successful Euro Challenge period. In the DEDC, students would present information surrounding a challenge facing the city, how it could be used as an economic development tool for the city, and would give a recommendation on how to implement the tool, addressing the challenge. Students should present as specific of a solution as possible to help address the challenge the city council district they chose faces. Organizations whose mission is on economic development normally focus on specific programs they can implement. They don’t try to solve problems that plague an entire city because they most likely couldn’t because of size, scope, and costs. Economic development organizations focus on the good they can do. Ideas that lead to economic development may come from business leaders, entrepreneurs, or government officials, not necessarily an economic development organization. Local examples include: The Detroit Mower Gang who mows the grass in city parks so they can be used by city kids. The opening of Meijer’s at 8 Mile and Woodward Slow’s-to-go barbeque opening on Cass Ave. in Midtown Community gardens Farmer’s markets Real estate developers, i.e. Dan Gilbert, turning Detroit’s old skyscrapers into retail, residential, and office space. Because of the large amount of empty space in the city of Detroit, ideas can be as creative as possible. We encourage students to think as outside of the box as they can because of the opportunities Detroit’s empty space provides for development. Students would then answer questions from a panel of judges on their challenge and recommendation. The judges would score each team based on the quality of their presentation, overall teamwork, the depth of research and analysis involved, knowledge of the challenge and neighborhood chosen as well as Detroit, and their per- formance during the question & answer period. Prizes would be awarded to the top 3 teams. Prize money would be provided by donors such as foundations, non-profit organizations, or private firms with Detroit City Council serving as a possible conduit. Students would be allowed to have as many as 5 on a team. When presenting, the students may act as a private development firm, a community organization, or a public/private partnership.

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The Federal Reserve Bank of Chicago-Detroit Branch is sponsoring this competition.

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Page 1: Federal Reserve Detroit Economic Development Challenge

Eligibility:• Any Michigan high school• Groups of 3-5 students• 1 team per school

Proposed Partners:Detroit City Council, Roundtable members, community foundations (Kresge)

Scheduled Implementation:2015-16 school year

The Detroit Economic Development Challenge (DEDC) would be an economic development challenge for highschool students, modeled after the successful Euro Challenge period. In the DEDC, students would present information surrounding a challenge facing the city, how it could be used as an economic development tool forthe city, and would give a recommendation on how to implement the tool, addressing the challenge.

Students should present as specific of a solution as possible to help address the challenge the city council districtthey chose faces. Organizations whose mission is on economic development normally focus on specific programsthey can implement. They don’t try to solve problems that plague an entire city because they most likelycouldn’t because of size, scope, and costs. Economic development organizations focus on the good they cando. Ideas that lead to economic development may come from business leaders, entrepreneurs, or governmentofficials, not necessarily an economic development organization. Local examples include:

• The Detroit Mower Gang who mows the grass in city parks so they can be used by city kids.

• The opening of Meijer’s at 8 Mile and Woodward

• Slow’s-to-go barbeque opening on Cass Ave. in Midtown

• Community gardens

• Farmer’s markets

• Real estate developers, i.e. Dan Gilbert, turning Detroit’s old skyscrapers into retail, residential, and office space.

Because of the large amount of empty space in the city of Detroit, ideas can be as creative as possible. We encourage students to think as outside of the box as they can because of the opportunities Detroit’s emptyspace provides for development.

Students would then answer questions from a panel of judges on their challenge and recommendation. Thejudges would score each team based on the quality of their presentation, overall teamwork, the depth of researchand analysis involved, knowledge of the challenge and neighborhood chosen as well as Detroit, and their per-formance during the question & answer period. Prizes would be awarded to the top 3 teams. Prize money wouldbe provided by donors such as foundations, non-profit organizations, or private firms with Detroit City Councilserving as a possible conduit.

Students would be allowed to have as many as 5 on a team. When presenting, the students may act as a privatedevelopment firm, a community organization, or a public/private partnership.

Page 2: Federal Reserve Detroit Economic Development Challenge

Each team’s 20 minute presentation would consist of the following:

1. Stating which economic challenge and city council district the team has chosen. (Example: We would liketo improve access to public transportation in District 6)

2. Background information on the city of Detroita. The most important three economic indicators from the following list that pertain to your chosen challenge. These indicators will be provided to the students. It will be up to the students to include the most important 3(and no more than 3) in their presentation:

i. GDP by Metro Areaii. Personal Income by Metro Areaiii. Family/Household/Per Capita Income by Cityiv. Unemployment Rate by Cityv. Median Home Price by Cityvi. Detroit Housing Startsvii. Southeast Michigan PMI

b. An update on political and social conditions

3. Present background information on the challenge, which would come from the following list (proposed list,will be shortened based on early research), and how it relates to Detroit:

a. Educationb. Retailc. Manufacturingd. Real Estatee. Transportationf. Public Services

4. When presenting the challenge, the economics concepts and policy challenges listed on the fact sheetshould be addressed during the presentation.

5. Present background information on Detroit and the specific City Council District chosen to be analyzed. The 7 City Council Districts as they existed in the 2013 election would be used.

6. How does the challenge relate to or affect the District?

7. Propose a solution to the challenge in the chosen neighborhood. (Example: We would like to build apedestrian walkway linking the Rosa Parks Bus Terminal with the M1 Campus Martius terminal to make bothstations easier to access for pedestrians)

8. Once the solution is proposed, the following questions should be addressed:a. Has your project or program ever been tried previously?

b. How would you work with existing economic development groups who are doing work in the area?

c. What would be the positive and negative effects of the proposed solution? We expect the students to describe positive and negative effects of the walkway in a general sense. We wouldn’t expect students to provide more specific analysis such as detailed cost estimates, environmental impact studies, etc.

d. What are some potential challenges you may face in trying to implement your solution? What road blocksmay prevent your idea from becoming a reality?

In short, the presentation should start with a big idea, turn into a conversation about how best to implement anidea that gets at the big idea, then deciding on the specific change that addresses the challenge picked. Thepresentation would be followed by a 10 minute question & answer period in which a panel of judges would askquestions pertaining to the group’s presentation, Detroit, and the subject of economic development. Duringthe presentation and question & answer period, students may refer to any notes or resources that may supporttheir policy or program proposal.

Page 3: Federal Reserve Detroit Economic Development Challenge

Detroit Economic Development Challenge: Consumer Retail

For many years, Detroit was a destination for shoppers. Consumers flocked to Hudson’s in Downtown Detroit.The Woodward and Gratiot Avenue corridors also attracted many shoppers with their numerous shops. But asthe population left, so did the retailers. Arguably, the most symbolic moments involved Hudson’s. It opened adepartment store at the then-new Northland Mall in the 1950s. Hudson’s opened more suburban locations whichled to the closing of its downtown location in 1984. But Detroit’s resurgence has led to new retail projects, in-cluding the openings of Whole Foods and Meijer within the city’s limits. More retail plans are in the planningphase as many see them as one way to attract people to Detroit.

Eastern Market is one of Detroit’s mainstays. From 1850 to the present day, Detroiters and visitors have flockedto Eastern Market to shop for all kinds of goods and enjoy different cuisines. Eastern Market’s annual flower salearound Mother’s Day normally draws one of the market’s largest crowds of the year. In recent years, EasternMarket has become prime tailgating real estate for Lions fans. Also, the food cart phenomenon has invadedEastern Market and can be taken advantage of during the week.

Many plans for retail development revolve around the opening of “mom and pop” stores, who are usually ownedby people who live in the neighborhood and want to open their own retail establishments. It is city government’sdesire for all of Detroit’s main thoroughfares (Michigan, Grand River, Woodward, Gratiot, and Jefferson) to become retail destinations for consumers again, which would require the return of small businesses to Detroit’smain avenues. In order for small retailers to return to Detroit’s main thoroughfares, population density must com-plement Detroit’s retail corridors, justifying the placement of new retail establishments on Detroit’s retail corridors.

Economic Concepts: entrepreneurship1. How can retail boost economic development?

2. What types of retail do you feel would be most likely to succeed?

3. What are other variables that allow retail shopping centers to be effective economic development tools?

4. How would retail impact the specific district you chose?

5. What would you do to attract retailers to Detroit?

6. How can entrepreneurship promote economic development in Detroit?

7. What groups (non-profit organizations, community foundations, etc.) could be of help to entrepreneurs?

8. How would you help entrepreneurs gain access to credit and other forms of investment capital?

Page 4: Federal Reserve Detroit Economic Development Challenge

Detroit Economic Development Challenge:Public Transportation

The Motor City had an extensive streetcar network until the 1950s. Since then, Detroit’s public transportationsystem has consisted of a maligned bus network and the People Mover, a small, above-ground rail line thatconnects a small circle of downtown buildings and attractions. Detroit is the largest U.S. metropolitan areawithout an extensive light rail network.

The city does currently contain some public transportation infrastructure. Rosa Parks Transportation Center, located in Downtown Detroit, allows residents and commuters easy access to the Detroit (DDOT) and suburban(SMART) bus systems. However, both systems lack funding as metro Detroit is the largest metropolitan area tonot have some kind of taxing structure to help fund its existing public transportation system. Both systems’ busesare worn and are in need of replacement. In addition, riders’ safety can’t be guaranteed, dissuading potentialriders from using the buses.

Amtrak is another method of transportation Detroit travelers can utilize. Amtrak’s Wolverine line provides dailyservice to and from Chicago. However, Detroit’s Amtrak station is located in an inconvenient place for manyresidents. Currently, Detroit’s Amtrak station lies in the New Center Area, north of Downtown, requiring travelersto find another way to get there. Driving and leaving one’s car isn’t an option because the station lacks on-siteparking. With the bus system’s inconsistency, taxi cab is the best way to get to the Amtrak station.

But in 2016, the M1 rail line is expected to open, giving Detroit its first light rail line as it will run from CampusMartius in Downtown Detroit to New Center in Midtown Detroit. The introduction of the M1 gives Detroit a chanceto begin closing the gap with other metro areas and their respective public transportation networks, especiallyin the use of real-time information. In other metro areas, consumers can check their cell phones to see whenthe next bus or train will arrive at their stop. Currently, that capability is just coming online in Detroit.

A regional transportation authority has been created to investigate creating a more extensive regional transitnetwork that would include rapid buses and the potential for regional light rail lines. One plan includes commutertrain lines that would connect Metro Airport with Detroit and Ann Arbor with Detroit. But in order to implementsuch a system, regional cooperation among mayors, county executives and other policymakers on the highestorder will be needed.

Economics Concepts: smart technology, infrastructure, regional cooperation1. How can public transportation boost economic development?

2. What types of public transportation do you feel would be most likely to succeed?

3. What are other variables that allow public transportation to be effective economic development tools?

4. How would public transportation impact the specific district you chose?

5. Do you feel one form of public transportation is better than another?

Page 5: Federal Reserve Detroit Economic Development Challenge

Detroit Economic Development Challenge:Real Estate (Residential or Commercial)

According to 2010 Census data, 83% of Detroit’s residential housing stock was built before 1960. Census Bureaudata also indicates that current levels of new residential building permits are approximately 30% of levels expe-rienced during the mid-late 1990s when Detroit’s residential real estate market experienced a growth spurt. Sodemand for new residential housing has been lacking. Falling population levels, rising crime rates, and strugglingschools have depressed demand further.

However, the Downtown and Midtown neighborhoods have witnessed influxes of younger demographics movingin, supplying energy to Detroit’s turnaround. People moving into these neighborhoods and others are findingaffordable housing prices because of Detroit’s struggling economy. These recent movements have also providedgreater optimism that what’s happening in Downtown and Midtown could happen throughout the city.

The migrations of younger people into Detroit have gotten the attention of commercial real estate developerslooking to start new projects. Detroit Red Wings’ owner Mike Illitch’s plan to build a new hockey arena, retaildistrict, and entertainment district within the Cass Corridor has grabbed a lot of attention as it would connectthe Downtown and Midtown neighborhoods. Another area that is getting a second look is I-375. There is talk ofremoving the freeway and transforming the space into a park or pedestrian-friendly walkway/bikeway, linkingDowntown with Eastern Market, Gratiot Avenue and Jefferson East.

But all of the challenges listed earlier remain, along with the many blighted properties that dot Detroit. Anemerging challenge is the pricing out of Detroit residents from the more attractive real estate markets becauseof higher demand leading to higher rental prices. Also, how might Detroit’s other neighborhoods secure realestate development that is taking place in Downtown and Midtown? One way city government is addressingthis challenge is providing a 50% discount to city employees or contract workers for any home purchased throughthe Detroit Land Bank. Also, residents can apply for 0% interest loans that could be used to help renovate theirexisting home.

Other questions surrounding real estate include how much of Detroit’s land should be developed? Also, to whatextent should urban agriculture, tree farming, and other environmental concerns be considered when consideringland use options for Detroit?

Economics Concepts: land use, blight, infrastructure1. How can real estate and new developments promote economic development?

2. How would you capture the momentum from Downtown and Midtown and spread it to other neighborhoods, boosting their respective real estate markets?

3. How much time should be spent on developing new residential real estate given that the Detroit Future City plan only calls for 600,000-800,000 residents in the city going forward?

4. Many of Detroit’s new residents live in office buildings that were turned into apartment (multi-residential) buildings. Should Detroit focus on multi-residential real estate or single-family, traditional housing?

5. How would new residential housing impact the District you chose?

6. How can commercial real estate promote economic development?

7. Would something like urban farming work in your District?

8. Why is it important to remove blight from your neighborhood? How would you make sure it didn’t interfere with your proposed project?

9. How would commercial real estate impact the District you chose?

Page 6: Federal Reserve Detroit Economic Development Challenge

Detroit Economic Development Challenge:Education

Established in 1842, the city of Detroit has its own school district which is known as the Detroit Public Schools(DPS). DPS is a school district that covers all of the city of Detroit, Michigan, United States. The student populationof the Detroit Public Schools is about 47,000 (2014–15). Detroit Public Charter Schools educate an additional75,000 students for a combined total of approximately 122,000. In December 2008, a financial emergency wasdeclared after it was determined that DPS was unable to manage it finances. That financial emergency still existsand in late 2014, the State of Michigan approved a deficit elimination plan that included a $111 million loan fromthe Local Emergency Financial Assistance Loan Board to help with the district’s cash flow. Financial difficultieshave led to the decaying of infrastructure, not providing ideal learning environments for Detroit’s students.

Crumbling buildings and outdated materials have contributed to declining enrollment levels. This has been metwith an increasing population in newly minted academies that have sprouted up all around Detroit. The academiesoffer better resources and services for students, but there is much debate on whether or not they are more effective in regards to student achievement. DPS graduation rate stands at 67.39%, which is 16% below the stateaverage of 80.1%.

Another aspect to education is the redevelopment of workers who lost their jobs during the most recent recessionand are looking for new employment opportunities. At the end of the 1990s economic boom, Detroit’s unem-ployment rate had fallen into single-digits, reaching a low of 7.3% in 2000. Unfortunately, because of Michigan’srecession and the 2007-09 U.S. recession, Detroit’s unemployment rate rose to 25.0% in 2009. During that time,Detroit’s labor force, those eligible to work, decreased 12%. Leading to the rise in unemployment has been thedeparture of heavy manufacturing from the city to the suburbs and other areas in the U.S. along with the lackof skills many Detroit residents possess.

To try and help workers successfully reenter the labor force and find a job, numerous workforce redevelopmentagencies have been created. Groups such as the Detroit Employment Solutions Corporation and the DetroitRegional Workforce Fund were created to help match workers with jobs that fit their skills. With many of theseopen jobs involving skilled trades and vocations, community colleges such as Wayne County Community Collegehave gotten involved and are now partnering with firms on workforce development issues.

Economic Concepts: workforce redevelopment, infrastructure1. How can education promote economic development in Detroit?

2. What district will most directly benefit from improved schools and why?

3. What are some ways that public and charter schools can work together to ensure children of Detroit excel?

4. How can DPS use its funds to become more efficient?

5. Propose an education model that would work in the district you’ve selected, and why?

6. What are other organizations (schools, businesses, churches, nonprofit organizations, etc.) you would like to partner with or combine to accomplish workforce redevelopment?

7. Which skills would workers learn in your workforce redevelopment training programs?

8. How would you fund your workforce redevelopment programs?

a. With national, state, and local funding?b. With grants from philanthropic organizations?c. With donations?d. With participants’ tuition?

9. How can workforce redevelopment promote economic development?

Page 7: Federal Reserve Detroit Economic Development Challenge

Detroit Economic Development Challenge:Public Service Delivery

The relationship between government and citizens is crucial. Ultimately, government is accountable to citizensfor decisions taken. Many cities like Detroit need to improve the substantive elements of democracy and itschecks and balances to ensure that public goods are delivered according to citizens’ expectations. Somemethodologies for assessing the extent to which service delivery is accountable have been developed. The cityof Detroit emerged from bankruptcy with $1.7 billion to invest in city services over a decade. The problem withcity services in Detroit is that with 138 square miles and a shrinking population, the public service delivery hassuffered because of falling tax revenues. Tax revenue is directly linked to public service delivery, so with decliningpopulation, and consequently, a shrinking tax base, Detroit’s public service delivery has suffered.

One of the most important public services cities can deliver is police and the sense of security that comes with.Detroit has seen most of its population leave due to the reduction in the police force and the resulting increasein crime. The city of Detroit is currently responsible for delivering public transportation, snow removal, maintainingroads, traffic signals and many more essential services. Detroit has recently sold off the management of trashpickup due to budget constraints. Now, trash pick-up is contracted out to two private entities, Rizzo and Advanced Disposal. Also, Detroit’s parks and recreational facilities are maintained by the city, many of whichhave deteriorated because there isn’t enough money to mow lawns, clean buildings, and fight vandalism.

Another challenge for Detroit is the number of homeless, hungry, and needy people living within the city’s limits.Because city government is limited in what they can provide, in scope and financially, other organizations havelooked to provide the services Detroit’s most underprivileged people desire. Groups like Neighborhood ServiceOrganization provide housing, counseling, and job training to help the homeless regain their footing. But Detroit’sunderserved population is significant and more help is needed.

Local governments that encounter financial difficulties sometimes look to share services with neighboring government entities in order to reduce costs. Unfortunately, the history of regional cooperation between Detroitand its neighbors hasn’t been friendly. Detroit and its suburbs have been at odds arguably since the riots of 1967which led to a mass exodus of white residents who lived in the city to the surrounding suburbs. This lead to avery segregated region with Detroit being predominantly black with a population greater than 70%, and suburbsbeing the exact same but white.

Regional cooperation is very beneficial to the region as well as the City of Detroit. In fact regional cooperationwas considered the source of an expedited bankruptcy process, in which regional players as well as Detroitpoliticians came together to get the city through bankruptcy. Regional cooperation led to Cobo Hall, the DetroitWater and Sewerage Dept., and Belle Isle all becoming subject to regional authority in recent years. The regionalauthorities allow for representatives from neighboring suburban cities to sit on board seats that decide the direction of the entities listed above.

Economics Concepts: health care, regional cooperation, neighborhood services, parks & recreation 1. What are some ways the City of Detroit can improve city services efficiently?

2. How would the district you chose directly benefit from improved public service delivery?

3. What are the benefits of privatization for a municipality such as Detroit?

4. What are some ways Detroit can move beyond the history of a segregated region and promote diversity and inclusion in Detroit?

5. List some benefits of regional cooperation, please provide specific examples.

6. Describe an attempt of regional cooperation in the past that has not worked? Why?

7. What are the prospects for regional cooperation?

8. Why are well-maintained parks and recreational facilities important to a city’s economic development?

9. What kinds of services would you provide, either by yourself or by partnering with an existing organization to help those in Detroit who are struggling to make ends meet?

http://www.npr.org/2012/09/11/160768981/racial-regional-divide-still-haunt-detroits-progresshttp://en.wikipedia.org/wiki/Southeast_Michigan

Page 8: Federal Reserve Detroit Economic Development Challenge

Detroit Economic Development Challenge:Manufacturing

As we all know, Detroit is the Motor City. The automobile industry’s unofficial capital became Detroit, especiallyafter Henry Ford built his first Model T, then his famous assembly line in the suburb of Highland Park. Ford,General Motors, and Chrysler became the “Big 3”, each with multiple facilities within the city of Detroit. But asthe 20th Century wore on, the Big 3 and their suppliers started to relocate their assembly plants to Detroit’ssuburbs, ridding Detroit of its heavy manufacturing presence. As foreign competition increasingly took moreU.S. market share from the Big 3, not only were assembly plants lost but jobs as well, forcing the Big 3 to startrestructuring their operations. From 2000-09 alone, Detroit manufacturing employment decreased by more thanhalf, and while it has rebounded since General Motors and Chrysler emerged from bankruptcy, manufacturingemployment remains well below 2000 levels. Auto assembly continues within the city at the Jefferson Northand Detroit-Hamtramck Assembly Plant where the Jeep Grand Cherokee and Dodge Durango are built at theformer and the Chevy Volt at the latter.

While Detroit will always be known for its auto-related manufacturing, recent years have brought an influx ofnon-auto manufacturing businesses and entrepreneurs to the point that entrepreneurship has become a buzzword in Detroit. Detroit’s rebound has attracted manufacturers such as the watch maker Shinola, a companythat most probably never thought would be associated with Detroit. Also, microbrewers (of beer) and bicyclemakers can now be found in the city.

Among the many entrepreneurship programs in the city are Dan Gilbert’s Startup Accelerator and Wayne StateUniversity’s TechTown. Detroit possesses other advantages for budding entrepreneurs, including affordable rent,access to young talent, and availability of space. However, Detroit entrepreneurs face many challenges, of whichaccess to bank capital may be the biggest.

Economics concepts: entrepreneurship, education, smart technology1. What district will most directly benefit from increased entrepreneurship and why?

2. What kinds of businesses would you choose to fund if you were in charge of a large pool of (seed) money for entrepreneurs?

3. How has Detroit’s reliance on manufacturing impacted the city’s history?

Page 9: Federal Reserve Detroit Economic Development Challenge

DISTRICT 1: NORTHWEST

Page 10: Federal Reserve Detroit Economic Development Challenge

Detroit Economic Development Challenge:District 1

City Council Representative: James Tate2010 Population: 105,185Percent Non-Hispanic African-American 91%Per Capita Income: $17,606Percent of Households in Poverty: 26%Percent without High School Diploma: 16.8%Percent with High School Diploma: 32.1%Percent with Some College: 27.8%Percent with Associate’s Degree: 7.9%Percent with Bachelor’s Degree: 9.5%

Source: www.datadrivendetroit.org

City Council District 1 is comprised of primarily Northwest Detroit. Telegraph Road runs through District 1’s west side while the Southfield Freeway is on District 1’s eastern edge. Grand River Avenue runs diagonally andbisects District 1. The Brightmoor neighborhood, one of the most severely blighted neighborhoods which hasreceived attention from the Detroit Blight Task Force and Bill Pulte’s Detroit Blight Authority, is in District 1. Under the Detroit Future City Plan, Brightmoor is scheduled to become home to low density housing andurban agriculture. Next to Brightmoor is the Grandmont-Rosedale Neighborhood, one of Detroit’s more stableneighborhoods. Its strong neighborhood association has attracted new homeowners who have contributed tothe neighborhood’s livelihood. District 1 amenities include the Northland Skating Rink, the Rouge Valley Parkway,and other parks and recreation centers. The main centers of business in District 1 are the Gateway Industrial Center,an industrial transportation and logistics complex at I-96 and the Southfield Freeway, and a soon-to-be built Meijeron the site of old Redford High School.

District 1’s open space has allowed for the creation of many community gardens. Detroit’s large, forested RougePark is in District 1, providing recreational opportunities for residents. Those recreational opportunities includean 18-hole golf course, driving range, swimming pools, baseball diamonds, tennis courts, picnic tables, playgrounds,and lots of wildlife that can be viewed while hiking.

Page 11: Federal Reserve Detroit Economic Development Challenge

DISTRICT 2: NORTh central

Page 12: Federal Reserve Detroit Economic Development Challenge

Detroit Economic Development Challenge:District 2

City Council Representative: George Cushingberry Jr.2010 Population: 105,931Percent Non-Hispanic African-American 94%Per Capita Income: $18,292Percent of Households in Poverty: 25%Percent without High School Diploma: 16.3%Percent with High School Diploma: 31.1%Percent with Some College: 28.2%Percent with Associate’s Degree: 7.0%Percent with Bachelor’s Degree: 9.3%

Source: www.datadrivendetroit.org

City Council District 2 is comprised of North Central Detroit. District 2 extends from the Southfield Freeway overto Woodward Avenue and the former site of the Michigan State Fairgrounds. District 2 extends south to theedge of Midtown and Highland Park. Neighborhoods such as the University District, Sherwood Forest, and PalmerWoods can be found in District 2. District 2 has the highest per capita income of the 7 Districts, allowing District 7to have the highest tax base.

The University District contains the University of Detroit Mercy and Marygrove College. Palmer Woods possessesPalmer Park and the Detroit Golf Club. In the western section of District 2 along McNichols Boulevard lies oneof Detroit’s magnate high schools, Renaissance, along with Sinai-Grace Hospital. The stretch of McNichols inDistrict 2 was identified in the Detroit Future City Plan as one of the city’s targeted employment clusters. Thisdespite McNichols housing miles of mostly abandoned store fronts that are in poor physical condition.

The old Michigan State Fairgrounds has been turned into a commercial retail center with a Meijer and Marshall’sas the anchors, the first major grocery chain to locate back into Detroit in decades. Other plans for the fairgroundsinclude Magic Johnson’s investment group turning part of the complex into a retail/entertainment complex. Inthe southern portion of District 2, one can find the old Bell Building that was renovated by Neighborhood ServiceOrganization, Inc. into a facility that provides financial literacy and addiction treatment to the homeless population.

Even with all of its amenities, District 2 faces challenges. The biggest challenge District 2 faces is retaining population. With thriving suburban communities such as Ferndale and Royal Oak very close to District 2’s borders,many residents are tempted to move, which would destabilize District 2’s neighborhoods and tax base.

Page 13: Federal Reserve Detroit Economic Development Challenge

DISTRICT 3: NORTHeast

Page 14: Federal Reserve Detroit Economic Development Challenge

Detroit Economic Development Challenge:District 3

City Council Representative: Scott Benson2010 Population: 97,082Percent Non-Hispanic African-American 86%Per Capita Income: $12,561Percent of Households in Poverty: 36%Percent without High School Diploma: 24.5%Percent with High School Diploma: 37.7%Percent with Some College: 24.8%Percent with Associate’s Degree: 6.0%Percent with Bachelor’s Degree: 4.4%

Source: www.datadrivendetroit.org

District 3 extends northward from Hamtramck up to 8 Mile Road, west to I-75 and John R, while extending eastto Gratiot Avenue and Kelly Avenue. Northeast Detroit is the relatively least educated of the Detroit City CouncilDistricts based on the graduation rates listed above. In addition, District 3 suffered the greatest population lossby percentage of Detroit’s 7 Districts.

Coleman A. Young International Airport is located in District 3. The airport hasn’t serviced passenger traffic since2000 and would need millions of dollars in renovations and upkeep in order to attract developers. Holding oneof the keys to the redevelopment of the area around City Airport is the Moroun family. The Morouns own landsurrounding the airport, in addition to the Ambassador Bridge and Michigan Central Station in Southwest Detroit.If redevelopment occurs around City Airport, the Moroun family will have a say.

Among the amenities District 3 contains includes the only neighborhood multi-screen movie theater in Detroit.Also, District 3 is home to a Joe Randazzo’s fresh fruit market, giving Northeast Detroiters a taste of what Detroit’ssuburban residents experience daily. District 3’s major places of employment are its 2 Chrysler assembly plants,2 of Detroit’s 3 vehicle assembly plants. The most recognized neighborhood in District 3 is Conant Gardens, whichhas been designated a Historic District. High schools in District 3 include Pershing, Osborn, Cornerstone, andDavis Aerospace High School, which is one of just a few high schools in the nation that has a Federal AviationAdministration approved curriculum.

District 3 isn’t as recognizable as Districts 5 and 6, which both contain the Downtown and Midtown neighborhoods,but that may change soon with the many things starting to happen there. There are plans to bring back a walk-able Gratiot Avenue business corridor. New retail establishments and rental housing are set to go into RegentPark. Community activism is increasing with the transformation of old school building into a recreational centeras well as the increased presence of after-school sports leagues for youth. New and rejuvenated block clubsare planned to dot every square mile of District 3, creating an even more active community.

The major challenges for District 3 are blight and youth. Even with youth sports leagues, government donations,the reestablishment of block clubs, and the presence of AmeriCorps, a national community service foundationthat provides additional grant money, District 3’s need is still great. District 3 needs more volunteers to come andhelp remove blight. Also, job training is needed for District 3’s residents so they can contribute to the ongoingprojects. District leaders are asking the city to accelerate blight removal so the impacts become more noticeable.In regards to youth, District 3 has the largest youth demographic of all the City Council Districts. Hence, there’sa call for more volunteers and youth-based projects.

Page 15: Federal Reserve Detroit Economic Development Challenge

DISTRICT 4

Page 16: Federal Reserve Detroit Economic Development Challenge

Detroit Economic Development Challenge:District 4

City Council Representative: Andre Spivey2010 Population: 98,666Percent Non-Hispanic African-American 91%Per Capita Income: $13,786Percent of Households in Poverty: 35%Percent without High School Diploma: 22.2%Percent with High School Diploma: 35.6%Percent with Some College: 25.6%Percent with Associate’s Degree: 6.4%Percent with Bachelor’s Degree: 7.0%

Source: www.datadrivendetroit.org

District 4 possesses many examples of the successes and struggles occurring currently throughout Detroit.Among the many positives are the Chandler Park Golf Course & Aquatic Center, Chrysler’s Jefferson North Assembly Plant, St. John Hospital and Medical Center, and Wayne County Community College’s East Campus.District 4 possesses a diverse list of attractions and businesses. In District 4, you’ll find the Better Made PotatoChip Factory and Outlet, in which you can buy and eat the chips right off the assembly line. Jefferson East, Inc.,a community organization is spurring development along East Jefferson Ave. Streetscapes will line the avenuenear the Grosse Pointe border, which will hopefully attract shoppers to the retail storefronts along the avenuethat are beginning to take shape.

However, District 4 also has the many challenges of its 5,000 buildings that were defined as “dangerous”, alongwith the urban prairies surrounding old Finney High School. The strong neighborhoods of East English Village,Morningside, and Jefferson Chalmers are located in District 4. The “Detroit Wall” dividing Detroit’s northeasternsuburbs from the city continues to remind citizens of Detroit’s past. Currently, the Detroit Future City Plan hasa major portion of this area returning to its natural ecological state, except for the areas along and near EastJefferson Ave.

Page 17: Federal Reserve Detroit Economic Development Challenge

DISTRICT 5

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Detroit Economic Development Challenge:District 5

City Council Representative: Mary Sheffield2010 Population: 98,100Percent Non-Hispanic African American 89%Per Capita Income: $16,613Percent of Households in Poverty: 36%Percent without High School Diploma: 22.4%Percent with High School Diploma: 31.8%Percent with some College: 24.9%Percent with Associate’s Degree: 5.8%Percent with Bachelor’s Degree: 8.3%

Source: www.Datadrivendetroit.org

City Council District 5 is the largest of the seven districts by land mass. It borders the Detroit River to the southand runs zigzags as it borders both Hamtramck and Highland Park to the north. District 5 splits part of downtownwith District 6 on its western border at John R and borders District 4 to the east at Clairpointe and McClellan atits most northeastern tip.

District 5 is home to many notable landmarks and sights. One of the most notable is Belle Isle, Detroit’s IslandCity Park designed by New York City’s Central Park architect Frederick Law Olmsted. District 5 contains moreof Detroit’s more prominent recreational amenities, including Detroit’s first RiverWalk section, the bike-friendlyDequindre Cut pathway, and Miliken State Park. Comerica Park and Ford Field can be found in District 5. Detroit’sGreektown neighborhood, which contains the Greektown Hotel and Casino and the Atheneum Hotel, are in District 5 as well. It is also where some of the most notable historic neighborhoods reside, such as Boston-Edison,Virginia Park, Indian Village, and Berry Subdivision where the Manoogian Mansion is located. The ManoogianMansion is the official residence of Detroit’s mayors. Also in District 5 is Henry Ford’s old Piquette Model Tplant which is now an automobile museum.

Some well-known businesses also reside in District 5, such as GM world headquarters, Blue Cross Blue Shield,Henry Ford Hospital, and many more. It is also the place of many of Detroit cultural institutions such as the Heidelberg Project, Fisher Theatre, Charles H. Wright Museum of African American History and the MotownMuseum to name a few. District 5 has been the ideal place for young professionals who have chosen to live,work and play in the Detroit Downtown and Midtown areas.

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DISTRICT 6: southwest

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Detroit Economic Development Challenge:District 6

City Council Representative: Raquel Castaneda-Lopez2010 Population: 106,407Percent Non-Hispanic African American 39%Percent Hispanic 41%Per Capita Income: $13,114Percent of Households in Poverty: 38%Percent without High School Diploma: 37.3%Percent with High School Diploma: 31.8%Percent with Some College: 18.2%Percent with Associate’s Degree: 3.7%Percent with Bachelor’s Degree: 5.1%

Source: www.Datadrivendetroit.org

City Council District 6 is the most populous and most diverse district of all seven districts. District 6’s easterlymost borders are John R. between Warren Avenue to the north and the Detroit River to the south. Along thebanks of the river, the district’s border runs southwest to its furthest point, which is Basset St. Coming up onthe west side of District 6, heading north are such boundaries as I-75, Schaefer, Riverside and Wyoming. District 6is also where the Ambassador Bridge, Tunnel to Canada, and the new International Bridge to Canada reside,making it the only place in Detroit with access to neighboring Canada.

This area of Detroit will be home to the new sports arena and entertainment district that is scheduled to becompleted in 2017. It will be the new home of the Detroit Red Wings, shops and upscale apartments while con-necting Midtown and the Cass Corridor with Downtown. Connecting Midtown and Downtown will be the M1Rail Line, which will run up and down Woodward Ave. beginning in 2016. The District is home to a very largeHispanic population, a population that mainly encompasses the Southwest Detroit neighborhood of the city.

District 6 is home to most of the Downtown and Midtown areas. Buildings such as Cobo Hall, Hart Plaza, ColemanA. Young Municipal Center, and many other points of interest can be found in District 6. It is also home to manyentertainment venues such as the Fox Theatre, Fillmore Theater, Masonic Temple, Orchestra Hall and many more.Historical points of interest such as the Detroit Institute of Arts, Detroit Historical Society, and Detroit Public Library are in the northern part of District 6 while Fort Wayne is along the Detroit River in District 6’s southernpart. Another historical point of interest is Detroit’s Garden Bowl, the oldest continuously operating bowlingalley in the U.S. Detroit’s famous American and Lafayette Coney Island restaurants can be found in District 6.The MGM Grand and Motor City Casinos are located in District 6 as well as the recently renovated Westin Book-Cadillac Hotel. Campus Martius, Detroit’s historic center that turns into a meeting spot during major events andan ice rink during winter, is within District 6’s boundaries. At the northern end of Campus Martius lies Compuware’sheadquarters, whose tenants include Detroit’s Hard Rock Café. Hart Plaza is another meeting spot downtownin District 6 that hosts many events, including the Downtown Hoedown and River Days.

Vibrant communities such as Historic Woodbridge, Midtown, Mexican Town, Corktown, and many more can befound in District 6. District 6 may be Detroit’s most pedestrian-friendly with Wayne State University and theDetroit RiverWalk’s recent southward extension past Cobo Hall and Joe Louis Arena, providing a walkable con-nection to Southwest Detroit. In Southwest Detroit, citizens actively engage in neighborhood issues because theyare heavily invested in the neighborhood’s future, whether through their small business, economic developmentgroups such as Southwest Solutions, or taking care of senior citizens that reside in blighted areas. Blight is anissue in District 6, especially in its western end. One of Detroit’s most identifiable examples of blight is the oldMichigan Central Train Station. Despite public proclamations and plans to renovate the building, very little hasbeen done. District leaders are looking to secure additional funding from various sources in order to eliminatethe blight that currently exists.

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DISTRICT 7: WEST

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Detroit Economic Development Challenge:District 7

City Council Representative: Gabe Leland2010 Population: 102,406Percent Non- Hispanic African Americans 85%Per Capita Income: $14,409Percent of Households in Poverty: 32%Percent without High School Diploma: 22.8%Percent with High School Diploma: 34.6%Percent with Some College: 26.8%Percent with Associate’s Degree: 6.2%Percent with Bachelor’s Degree: 6.4%

City Council District 7’s most western border street is Parkway, which runs along Rouge Park. Heading north,Evergreen, I-96, Lyndon and Eaton serve as border streets. The district’s most northern point is Fenkell. Comingsoutheast, Livernois, Wildemere and Dexter are some of the streets that serve as D7’S eastern borders. Goingback in a southwesterly path, such streets as Joy Road, Grand River and Cloverlawn are some of the borderthoroughfares. District 7 is home to Rouge Park, which is one of the largest urban parks in the United States.District 7 is also home to the storied St. Cecilia Gym which once served as a basketball mecca in the city, invitingplayers from all over to compete on the hardwood floor. Detroit Diesel and Sherwood Food Distributors are notable businesses that reside in District 7. Several African-American family owned businesses are in the districtsuch as Mary’s Grill and the original Starters Bar and Grill.

Sources:

http://datadrivendetroit.org/projects/city-council-elections-by-district/

http://www.freep.com/article/99999999/COL10/130406015&template=theme&theme=RILEY_DISTRICTS

http://michronicleonline.com/2014/07/02/taking-a-closer-look-at-detroit-district-by-district-starting-with-district-1/

http://archives.californiaaviation.org/airport/msg20510.html