tungate & savic: case study: closed deals and successful pitches
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Track 1-Make the Deal Case Studies in Closed Deals and Successful Pitches Erik Tungate and Olga Savic from the Detroit Economic Growth Corporation.TRANSCRIPT
The Detroit Economic Growth Corporation
Case Studies: Closed Deals and Successful Pitches
Stay Focused. Be Efficient. Prioritize.
Michigan Suburbs Alliance 2008 Regional Redevelopment Summit
Presented to
2© 2008 DEGC Confidential and Proprietary Information www.DEGC.org Page No.
01 What is the DEGC?
The Detroit Economic Growth Corporation is:
A private, non-profit corporation established in 1978 devoted exclusively to supporting Detroit’s economic development initiatives
A provider of technical, financial and development assistance to the City and the business community
Funded by the City, private sector business, as well as by public and private grants
DEGC is dedicated to Detroit’s growth.DEGC’s brings together public sector policies and priorities with private sector development and investment interests to strengthen Detroit’s economic development.
What are DEGC’s services?
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Assist in retention and expansion of existing business
Attraction of new business
Site consulting
Project management
Technical assistance
Financial assistance
DEGC is uniquely positioned to assist its clients through the internal processes and procedures of various governmental entities
Today’s
Topic
s
Where We’re Going
01 Case Study: How Detroit Is Using Information Led Development Strategies
02 How You Can Use “Detroit” to Leverage Your Community’s Strengths
03 Tools Any Community Can Use
Today’s
Topic
s
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Telling Our Story
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AND
Defining Detroit’s retail attraction strategy through the use of effective information and sound partnerships
Addressing Information Barriers
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02Capturing Underserved Market
Potential
Using more accurate, timely data from
30+ public and proprietary sources
The Social Compact DrillDown analysis measures core market drivers:
Buying Power
Stability/Risk
Size/Growth
Capturing Urban Market Potential
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02Bridging Public and Proprietary Data Through Technology …
Proprietary DataFirst American Real Estate Solutions
InfoUSA
Acxiom
Equifax
Experian
Public DataTax Assessment Data
Construction Permits
Utility Usage and Bill Payments
Federal Deposit Insurance Corp.
Internal Revenue Service
Home Mortgage Disclosure Act …and Alliances with Strategic Leaders for Enhanced Analytic Capacity
$59,300
$44,600
$39,200
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
Census 2000 2006 Census TrendProjection
DRILLDOWN
2006 Detroit Drilldown Focused on Downtown DetroitLarger Buying Power = Greater Purchasing Potential
Average Household Income
8
Demonstrate Downtown’s Potential02
2007 Detroit DrillDown Highlights
Sources: Census 2000, Claritas Corporation, 2006 and Social Compact Detroit DRILLDOWN, 2007
The 2006 Census population estimate was 871,121 DrillDown 2007 captured larger population by nearly 62,000 residents
933,043
17% Average household incomes 17% higher than in 2000 An informal economy of $803 million DrillDown estimates aggregate income in Detroit at $15.8 billion, $2.0 BILLION more than Census 2000 estimates
Demonstrate City’s Potential02
Sources: Census 2000, Claritas Corporation, 2006 and Social Compact Detroit DRILLDOWN, 2007
0 52.5 Miles
Income per Acre
Up to $100K
$100K - $200K
$200K - $300K
300K - $400K
$400K to $830K
• Aggregate income in the Central Business District is estimated at 75% above Census 2000 reported income
• Income density in Indian Village is more than twice the city average; at $444,000 per acre, this neighborhood compares favorably with surrounding areas such as Birmingham ($425K/acre) and Grosse Pointe ($442K/acre).
• Income density is above $300K/acre in Rosedale, Denby and Lower East Central, higher than Royal Oak ($280K/acre) and Dearborn ($146K/acre).
Highlight Individual Neighborhoods02
Sources: Census 2000, Claritas Corporation, 2006 and Social Compact Detroit DRILLDOWN, 2007
• The average household incomes of home buyers is growing faster in Detroit neighborhoods than in surrounding suburban communities; incomes have more than doubled in Lower Woodward, the Central Business District, Jefferson/Mack, Butzel and Jeffries.
• Median home sale values have more than doubled from Census 2000 values in fourteen neighborhoods; with the greatest increases seen in the Central Business District, West Riverfront, and Corktown.
0 52.5 Miles
New Home Buyer Income
$18,000 - $30,000
$30,000 - $45,000
$45,000 - $60,000
$60,000 - $90,000
$90,000 - $145,031
Focus on Signs of Strength/Stability02
Sources: Census 2000, Claritas Corporation, 2006 and Social Compact Detroit DRILLDOWN, 2007
• Detroit residents spend more than $1.7 billion, more than $1 out of every $3 spent on retail purchases, at retailers beyond City limits.
• Detroit residents currently spend $291 million outside city limits on apparel purchases alone.
• Unmet demand for full service grocers in Detroit could support 500,000 square foot of retail space 0 52.5 Miles
Retail Leakage by Neighborhood
No Leakage
Under $20 M
$20 M to $40 M
$40 M to $65 M
$65 M to $99.8 M
Focus on Opportunities02
Room for More Grocery Stores
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GROCERY LEAKAGE
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Key Lessons from Detroit
Reframe the dialogue about your community using information.
Use unconventional data sources to show your strengths.
Focus on signs of growth, stability and strength, not decline, deficiency and weakness.
Engage all your stakeholders to institutionalize your message, including brokers, developers, public officials, residents, etc.
Keep it practical—focus on a few priorities.
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Using “Detroit” In Your Message
Detroit is a world-class cultural center.
Detroit Institute of Arts is the fifth largest fine arts museum in the U.S.
Detroit is home to four professional sports teams (three located in the city): Detroit Tigers, Detroit Lions, Detroit Pistons and Detroit Red Wings
Detroit is the third largest casino market (behind Las Vegas and Atlantic City ) and the largest U.S. city with casinos
Detroit is the development hotspot.
5000 building permits since 2000; led the state for three years straight
New riverwalk, waterfront mixed use and downtown developments;
Businesses are choosing Detroit for their HQ
Detroit has stable neighborhoods with high incomes.
Detroit’s official population is 918,000, but it may really be around 933,000
Average income in Detroit is $48,000 but there are many neighborhoods where it is higher
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03Perception of Detroit frames the Region
Find and use the positive news sources
Tools Any Community Can Use
Model D Media
Published by Detroit-based Issue Media Group, LLC.
The Web site posts daily reports on job growth and development in Detroit
MetroMode Media
The Web site posts daily reports on job growth and development in Southeast Michigan, from Detroit to Ann Arbor. A free, weekly e-magazine is published Thursdays
Crains Detroit Business, DEGC, Detroit Renaissance, etc.
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Tools Any Community Can Use
Request the D brand resources www.dbrandsummit.com
The D brand is a branding effort to help attract companies, talent and investment into the region – and to help foster civic pride.
Resources can be customized
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04Use the D Brand
Tools Any Community Can Use
Act locally, speak regionally. Tell a positive economic growth story about the region
Link to other informational sites that reinforce your story
Tap into unconventional, but free, data sources
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04Put it to Action
Thank You
Olga Savic, Vice President of Business Development
(313) 879-3261
Erik Tungate, Business Development Manager
(313) 237-6096
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