Tungate & Savic: Case Study: Closed Deals and Successful Pitches

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?


01

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

© 2008 DEGC Confidential and Proprietary Information www.DEGC.org Page No. 4

Telling Our Story


02

AND

Defining Detroit’s retail attraction strategy through the use of effective information and sound partnerships

Addressing Information Barriers


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


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


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


• 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


• 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


02

GROCERY LEAKAGE

1

2

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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.


02

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


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.


03


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


04Use the D Brand

http://www.dbrandsummit.com/




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


04Put it to Action

Thank You

Olga Savic, Vice President of Business Development

[email protected]

(313) 879-3261

Erik Tungate, Business Development Manager

[email protected]

(313) 237-6096


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