Weak Market Cities

Detroit: A Ground Level Perspective

September 21, 2006

Anika Goss-FosterSenior Program DirectorDetroit LISC

Local Initiatives Support Corporation (LISC)

Who We AreLISC helps resident-lead, community-based development organizations transform distressed communities and neighborhoods into healthy ones. By providing capital, technical expertise, training and information, LISC supports the development of local leadership and the create of affordable housing, commercial, industrial and community facilities, businesses and jobs. We help neighbors build communities.

What We DoDetroit LISC provides operating support, technical assistance, project financing, leveraging of funding, and assistance with capacity building to more than 30 CDCs. Since 1990, Detroit LISC has invested over $80M and leveraged an additional $350M for the revitalization of Detroit.

Detroit’s History of Disinvestment

• Approximately 40,000 city-owned vacant or abandoned properties

• Nearly 43% of households earn less than $24,999/year

• Over 24% live below the poverty level• Population Make-Up

Detroit Oakland Black 82% 10 White 12 83 Hispanic 3 2

Detroit’s Declining Population

Detroit on the Rise Nearly 200 non-profits with community and

economic development as core mission

In 2003, nearly 75% of neighborhood development was sponsored by non-profits

High level of civil, corporate and philanthropic support

Named Top Philanthropic City in U.S. in 2003 by The Chronicle of Philanthropy

New Approach for the City

Repositioning Detroit as a Leader in the Region

Strategic Investments to Rebuild Detroit Neighborhoods

Vacant and Abandoned Property Disposition

Detroit’s Population SprawlPopulation Change 2000-2030, Southeast Michigan

Decrease, more than 1,000 loss

Little change, 1,000 loss to 1,000 gain

Moderate increase, 1,001 to 4,000 gain

Large increase, 4,001 to 8,000 gain

Very large increase, more than 8,000 gain

St. Clair

MacombOakland

Livingston

Washtenaw Wayne

Monroe

Decrease, more than 500 loss

Little change, 500 loss to 500 gain

Moderate Increase, 501 to 2500 gain

Large Increase, 2501 to 5000 gain

Very Large Increase, over 5000 gain

Southeast Michigan 2000-2030

Metro Detroit Regional Investment Initiative

Comprehensive program designed to address the consequences of urban sprawl that has particularly affected Southeast MI:

Urban blight Inequitable social and economic opportunity Racial and cultural tension

Build relationships and combine efforts between the City of Detroit and its inner ring suburbs to address issues of common concern.

Detroit vs. Grosse Pointe ParkAs of 2000 Census

Grosse Pointe Park Racial Breakdown

Caucasian 93% African American 3%

Education High School 96% Higher Ed 56%

No Vehicle 4%

Homeowners 71%

Median House Value $331,200

Detroit Racial Breakdown

Caucasian 12% African American 82%

Education High school 70% Higher Ed 11%

No Vehicle 22%

Homeowners 55%

Median House Value $63,600

City-Owned Vacant Properties

Abandonment of Commercial Property

0

10

20

30

40

50

60

70

Commerical Strip

E. Jefferson

W. Warren

Gratiot

Kercheval

Mack

Michigan

W. Jefferson

W. Vernor

Percentage of Abandoned Properties in Eight Commercial Corridors in Detroit

Systems Change in City Government Partnered with Deloitte to…

Scrub and update baseline data and information for Planning and Development Dept. (P&DD)

Streamline and document P&DD processes incorporating best practices from other cities

Implement key performance indicators (KPIs)

Implement web-based, user-friendly technology

New Tools for aggressive Action Create a Land Bank in Detroit

Expedited sale of lots

Brownfield and other tax credits

Improved title clearance

Land assembly

Private funding sources

Regional and intergovernmental cooperation

Moving Detroit Forward Multi- Tiered and Multi-Faceted

Appropriate Land Use Legislation

Collaboration is Key

Investment model for Detroit and the Region