1
Brightmoor Land Use
Prepared by AAB Development Strategies, LLC
McKenna AssociatesAllen Associates
Spalding DeDecker Associates
2
Understanding Detroit Land Use
Global Issues 1924 – Ford Employs 70,000 People In Model T Plant on
100 Acres = 700 people/acre 1954 – Dodge Main Employs 43,000 People 5 story, 5
Million Sq Ft on 58 Acres = 730 People Per Acre In the 50’s, The Block-long Hudson’s Was 25 Stories
Tall, It Was The World's Tallest Department Store 1950s – Detroit Is Full – Essentially Most Land
Developed – over 1.8 Million people City Economy is Healthy City is Center of Manufacturing Detroit Cannot Respond to Changing Economy’s New Land Use
Requirements
3
Understanding Detroit Land Use
In the 50’s the World Starts to Change Peak of the Industrial Era Industry Starts to Move to One Story Plants Today, GM Poletown Plant Employs 2,500 People on
475 Acres = 5.3 People/Acre 1st Regional Shopping Center Built in ‘54 Contains 3
Story Suburban Hudson Lodge Opens in 54 – Detroit Builds Before Interstate
Purpose is to Feed Downtown Improves Access to Suburbs
Eisenhower Initiates Interstate Program in 56
4
Understanding Detroit Land Use
Important Statistic Since I776, Travel Time to Work Remains 25
Minutes – People Move to Be Near Jobs
Industry Moves to Build New Modern Facilities People Move with Them FHA Accelerates Housing Construction Suburban Housing Discrimination Leaves
African-American Population Behind
5
Understanding Detroit Market Jobs Are Leaving Detroit Faster Than
Population (Between 1970 and 2005) (-60.5% vs. -43.5%)
Detroit Loses 427,000 Jobs Creates Pent up Pressure For More
Population Exodus Detroit Loses 653,000 People Detroit Losing >4,400 Households/
Year Between 2000 and 2008 New Neighborhood Housing Buyers &
Tenants Are Detroiters Meaning Every New Unit = Demolition
Vacancy Rate Changes 10.3% to 16.1% - 57,000 Vacant Housing Units
Population & Job Data
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
1960 1970 1980 1990 2000 2010
Year
Detroit Population
Detroit Jobs
SE Michigan Population
SE Michigan Jobs
6
Where Detroit Residents Work
Detroit 154,933 48.6% Southfield 15,644 4.9% Dearborn 14,332 4.5% Livonia 12,893 4.0% Warren 10,082 3.2% Troy 7,040 2.2% Sterling Heights 5,263 1.6% Romulus 5,184 1.6% Farmington Hills 5,047 1.6% Highland Park 3,675 1.2% Elsewhere 84,908 26.6%
Detroit Working Residents 319,001 100.0%
More Detroiters Now Commute to Work in Suburbs Instead of DetroitMost of Detroit is Suburban in Use & FunctionBoston Has 682,000 Jobs for 286,000 Workers of 608,000 ResidentsDetroit Has 318,000 Jobs for 319,000 Workers of 825,000 Residents
7
Detroit’s Competitiveness
Loss of Jobs to Suburbs Pull People Out On Average, People will Locate Within 25 Minutes of Jobs If Roads are Congested People Move Closer to Work
Roads Are Congested Out of City Need to Convert Residential land Uses to Job Producing
Estimate City Needs 72,000+ New Jobs to Help Stabilize Population Base
Estimate City Needs to Maintain Existing Jobs to Stabilize at approximately 500,000 to 600,000 Persons
8
Detroit’s CompetitivenessHousing Cost DifferencesCost Impact on New Housing Values
Housing Cost Detroit Southfield Brownstown
Property Taxes $410.19 $335.94 $194.31
Local Income Tax $83.33 $0.00 $0.00
Auto Insurance $178.45 $91.41 $79.85
Home Insurance $95.00 $88.33 $54.92
Principal & Interest1,2 $333.03 $584.32 $739.31
Total PITI&I $1,100 $1,100 $1,100
HH Income $40,000 $40,000 $40,000
Value of New Home $150,000 $150,000 $150,000
Affordable Amount $62,037 $108,849 $143,608
$46,811 $81,571
9
Detroit Must Become Cost Competitive
Affordability High Insurance Costs Redline City
Major Barrier to Cost Competitiveness Estimated Loss to Property Values > $4 Billion Need to Review Legal & Legislative Response
Require Detailed Study to Build the Case Fairness of Cost Allocation Comparison w Other States Options
Governor’s New Initiative May Create OpportunityNeed Foundation Funded Task Force
Need Improved State Aid for Low Income City Revenue Losses Need Dramatic Change to Change Direction
Constitutional Amendment Cut Millage & Remove Income Tax In Exchange for Increased Assessment
Limit Assessment Changes to Inflation for 5 Years Need Detailed Analysis
10
Detroit’s Population Projection
The City’s Population Is Likely To Stabilize At Between 500,000 And 600,000 By 2025
Sustainable Detroit Action Team ReportSponsored by AIA
Detroit Needs to Plan Itself To House About 600,000 People by 2025
National Real Estate Institute
11
Summary Detroit Jobs & Population Are Shrinking
Road Congestion Force People Closer to Work As Discrimination Lessens, More People Leave Must Plan For Smaller City Job Creation & Neighborhood Preservation Must Be First Priority Land Management Critical to Future
Detroit Must Become Cost & Quality Competitive Detroit Has Excessive Affordable Housing
Freeze LIHTC Developments Unless Needed To Stabilize Neighborhoods
Must Demolish Excessive Substandard Housing Must Preserve Neighborhoods – Move People From Blighted Area Provide Home Improvement Loans for Quality Intact Neighborhoods Encourage Fair Housing in Region
Establish Incentives for Detroit Housing Down Payment Assistance Homeownership Tax Credit Loan Program Encourage DHC to Acquire Quality Neighborhood Houses Target Investment to Quality Intact Neighborhoods
12
Brightmoor Demographics
Population 2008 = 24,552 Change (from 2000) = -10.8% Households 2008 = 8,615 Estimated Vacant Units = 1,335 Change (2000) = -11.4% Owner Occupied Housing = 5,234
Declining Faster Renter Occupied Housing = 4,486 82.3% African-American Population Median HH Income = $40,341
20.7% Make <$15,000 11,416 City Lots
13
Original Brightmoor
Designed to Fail Low Cost Housing for
Appalachian Auto Workers 600–800 Sq ft Houses On Slab Small Lots Out House in Rear Substandard Construction City Annexes & Builds Sewers
14
Projected Number of Houses, Households & Vacancies in Brightmoor
Projected Number of Houses, Households, & Vacancies
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000# of Houses
Occupied
Vacant
Housing Exceeds # of Households by 1330+ Units
Normal Vacancy Rate is 1½ % for Homeownership & 5% for Rentals
Need to Demolish 1,100 Units to Balance Markets
Need to Demolish Estimated 107 Unit/Year Thereafter
Any New Housing Increases Demolition 1:1 Until Structural Issues Are Resolved Make it Part of Cost
Projected Number of Houses, Households, & Vacancies
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000# of Houses
Occupied
Vacant
15
Property Conditions
Quality Neighborhood Being Threatened by Foreclosure
New Housing Has Not Stabilized Neighborhood
Most Property is Privately Owned
Total Quality
Area Other
Area
Vacant Lots 3,860 362 3,498
Renovate 1,112 254 858
Demolition 465 33 432
Total 5,437 649 4,788
16
Public, NDND & Foreclosure Owner
Foreclosures Start to Affect Quality Neighborhoods
Need to Intercede to Protect Neighborhoods
Colors Emphasize Public Ownership Confusion Impossible to Have
Coordinated Development Strategy
Need to Assemble All Property Under Land Bank / Neighborhood Management
17
Fragmented Land Management
Total Quality
Area Balance
Wayne County 678 43 635
NDND 621 14 607
MLBFTA 416 37 379
City 731 42 689
Bank Foreclosed 411 230 181
HUD 124 59 65
WCLBC 2 2 -
VA 6 6 -
Total 2,989 433 2,556
Need to Manage Property Under Single Management
18
Public, Foreclosed, Vacant, Demo Properties
Same Chart Made More Readable To Determine Land Availability NDND Property City Property County Property State Property Vacant Land Property Demolition Property Foreclosed Property
19
Street Maintenance
Maintenance Unrelated to Neighborhood Conditions
Street Maintenance Needs to Be Targeted for Quality Areas
20
Brightmoor Neighborhood Design
Quality Neighborhood Brightmoor Next Economy Tech Park BNETP Phase 2 - Southeast Section Commercial Areas Southwest Section Northwest Section Northeast Section Eliza Howell Redford HS Hubert School
21
The New Brightmoor Neighborhood
Preserve & Reinforce Quality Areas Create Opportunity Area
Encourage Residents to Move to Better Areas Offer Foreclosed Houses in Trade
Job Opportunity Brightmoor Next Economy Business Park
Move Outer Drive to Fenkell to Frame New Area Structure Residential Area for Large Lots –
Gardens + Farms Establish Homestead Program Eliminate Many N-S Streets Establish Homestead Program
Relocate LIHTC Homes - Fill SE Neighborhood Commercial Center On Fenkell East of Burt Rethink Hubert School Closing
Or Convert to Community Center Or Demolish
Redford HS Site is Development Opportunity Community Service Center Neighborhood Shopping Center
22
Preserve Institutions
Preserve & Improve Quality Residential Areas
Churches & Community Centers Preserved
Greenway Maintained
23
Proposal – Quality Neighborhood
Use Wayne County Nuisance Abatement Program for Land Control Demolish Blighted Vacated Housing Immediately – 120 days Use Systematic and Consistent Code Enforcement For Demolition- Use Deconstruction Techniques Using Local Residents
Create Employment Opportunities Grant Vacant Lot to Neighboring Homeowners
Conditional on Integrating Into Property Establish a Home Improvement Program – Use NSP for Foreclosed
Flipped Property Rehab & HOME Funds for Balance + MSHDA PIP Use NSP to Acquire, Repair, Sell Foreclosed & Abandoned Property
Trade For Owner-occupied House in Opportunity Neighborhood Create a THERE There – Still Defining – Reduce Neighborhood Access Include Quality Area in City Tax Abatement Program Any New Housing Should be in Brick & Homeownership
24
Opportunity Area Create Opportunity for Residents to Move to a Quality Neighborhood Establish DEDC/DFTLBA/Next Energy JV As Developer Use County Nuisance Abatement to Acquire Properties Needing Demo. Trade Other Foreclosed Properties to Homeowners for their Property NDND Acquire All Slumlord Properties
Manage Properties Until Relocation Opportunity Relocate Persons to Quality Neighborhood Foreclosed Properties or Relocate Persons to Tax Credit Developments or Public Housing Demolish Properties & Transfer to Brightmoor Next Economy Tech Park Review Tenant Selection Program to Open Opportunity for Ex-offenders
Acquire Private Vacant Lots Close Streets as Blocks are Vacated Relocate Outer Drive to Fenkell
Acquire south side of Fenkell - West of Burt Road Maintain as Limited Access Tech Park Keep Lyndon as Pedestrian/Bikeway Greenway
25
Opportunity AreaBrightmoor Next Economy Tech ParkJob Producing initiative
Establish a Green Business Park 420 Acres Outer Drive Entrance Move East-West Outer Drive to Fenkell Suburban Green Style, 40 Foot Setbacks Open Space Design 10 Megawatt Solar Energy Pilot w DTE
Need More Detailed Proposal – Propose to Governor for Stimulus Package
Targeted Green Uses at Next Economy Industries
Windmill Production PV Production Life Sciences Production Greenhouses – hydroponic farms Bio-fuels Production Next Economy Growth Firms
26
Opportunity AreaBrightmoor Next Economy Tech ParkJob Producing initiative
Can Create Value 2.6 – 4.4 Million Square Feet $325 - $544 Million in Value 5,200 – 8,700 jobs
Farm During Pre Sale Period Developer = DEGC/DEDC Or Private i.e., DeMattia or
Both
27
Brightmoor Next Economy Tech Park
Phase 2 Move LIHTC Housing Units to South Eastern Section Complete Acquisition Using of Balance of Property
Using Same Procedures as Phase 1 Area
28
Southwest Neighborhood Structure Larger Lot Residential Neighborhood
Recognizes Poor Projected Market for Housing Target Based on Land Availability
Establish Homestead program Create With Minimum Dislocation of Existing Residents Use Natural Forces as Driver Maximize Positive Impact on Homeowners
Initiate Systematic Street Closures to Reduce City Costs & Land Control to Create Controlled Green Spaces Lease Lots for Farming & Community Gardens
Can Hubert School Become Community Center If not, Demolish
Target Infill Development by NDND NDND to Manage Common Areas
29
Southwest Neighborhood Use Wayne County Nuisance Abatement Program for Land Control
Demolish Properties Set Up Program to Obtain All Tax Reversion Property Prior to Auction for
Demolition, If Good – Management by NDND Purchase & Trade Foreclosed Property in Quality Neighborhood for Existing
Owner - Occupied Homes Plan Systematic Street Closures to Reduce City Costs & Land Control to
Create Controlled Green Spaces Lease Lots for Farming & Community Gardens Locate LIHTC Housing to Protect & Expand Quality Neighborhoods – Need to
Close Unproductive Streets Permit NDND to Acquire and Build LIHTC Development – Brick Front –
Should Complete Neighborhood Create Neighborhood Management of Open Areas
Establish a Home Improvement Program After Infill – Use NSP for Foreclosed Flipped Property Rehab & HOME for Balance
Use NSP to Acquire, Repair, Sell Foreclosed & Abandoned Property Trade For Owner-occupied House in Reinvention Neighborhood
30
North of Fenkell Place All Property Under Single Control Structure Larger Lot Homesteading Program
Live – Work Land Use Use Business Loan Program Forestry, Organic Farms, Animal Raising, Bee Hives
Obtain All Tax Reversion Property & Demolish Targeted Based on Land Availability
Create With Minimum Dislocation of Existing Residents Use Natural Forces as Driver Maximize Positive Impact on Homeowners
Initiate Systematic Street Closures to Reduce City Costs & Land Control to Create Controlled Green Spaces
Use County Nuisance Abatement to Obtain Properties Needing Demolition
31
Eliza HowellImprovements + Soccer Fields – Private Management
Recreation Uses Service Regional Area & Neighborhood Splash Park, Skateboard Park, Improving Outdoor Sports Fields, & Outdoor Garden Spaces With An Urban
Farming Element Indoor & Outdoor Soccer Fields
32
Eliza Howell
Need to Find Non-city Operator Establish Indoor
Soccer Fields
33
Eliza HowellA Potential Alternative
Establish Joint Development Program to Develop Eliza Howell Park as Big Box Center + Developed Park
Detroit Exports $2.6 Billion In Retail Sales Access to I-96 & Telegraph Road Partnership of NDND, Trinity CDC, &
Residual Owner Option Auto Auction Operation in Redford
Township Need to Seek Developer Partner
Need Time to Go Beyond Today’s Economy If Attempt Fails, Park Returns to Existing
Role Community Profits, TIF Reinvested in Site,
Park & Brightmoor Community TIF to Finance Balance of Park
Establish Church Based Training Program Need to Reduce Store Pilferage Look at Manchester Bidwell Concept
Residual Owner Suing City to Obtain Property
34
Job Producing OptionCommunity Center or Shopping Center
Redford High School Best Available Location for Neighborhood Shopping
Center Community May Not Be Ready to Accept Demolition Recommend Initiation of Architectural & Economic
Study (Business Plan) to Determine Whether It Can Be Converted to Community Service Center a la Samaritan Hospital Donated to Holy Cross and SER
If Not, Demolish
35
Job Producing OptionsEncourage Local Entrepreneurism
All Implementation Activities Should Be Used to Create Local Jobs Use to Encourage Urban Entrepreneurism
Management & Maintenance of Land Banked Property Demolition Through Deconstruction Techniques Home Repair & Rehabilitation - Youthbuild
Farming & Homesteading Intermediate Solution Provide Training In Farming Techniques Encourage Greenhouse Farming of High Value Plants
Do Not Sell Until Development Plan is Approved Use Leasing of Land Bank Land For Farming
Maintains Future Flexibility
36
Recommended Organization Structure
Establish Brightmoor Neighborhood Improvement Authority (PA 61 of 2007) To Implement Plan Keep Local Leadership Involved
Establish Cooperation Agreement w/Land Bank Authority (PA 7 of 1967) To Provide BMIA with Land Bank Authority
Prepare PA 344 Plan to Eliminate Blighted Properties by Selective Use of Eminent Domain in 2nd or 3rd Year Suggest Limited Use to Non-homestead Property
Managed by NDNI or DEGC or Both
37
Land Management – Land Bank It is Proposed That All Land Owned by a Public Agency, HUD & NDND Be
Transferred to Single Land Bank - State Agrees County Treasurer & MFTLBA Agree to transfer Detroit Property to Detroit NDND Would to Store Their Property In Land Bank or Sell to Land Bank
NSP Funds Needs to be Used to Manage Property for Next Five Years Need Land Management Team
Create Urban Cooperation Agreement w Brightmoor Neighborhood Improvement Authority
Need Organization That Can Be Responsive to Community Managing Maintenance of Existing Property - Use Local People Perform Demolition – Use Local People Use NSP to Acquire, Rehab, and Sell (in Quality Areas) or Own Foreclosed
or Abandoned Property for Temporary Rent Offer Houses In Trade for Owner Occupied Homes in Reinvention Area
Use NSP to Demolish Houses Needing Demolition Excessive Renovation Cost in Reinvention Areas
Manage Agricultural Leasing Program
38
Land Management – Land Bank
Obtain Control of All Tax Reverted Property Manage Homesteading Program Establish Citizens District Council as Part of 344 Plan
Include Brightmoor Alliance Chair, Recommend Action to Land Bank for Final Decision Bind Everyone to Plan
Obtain All Tax Reversion Property Prior to Auction for Demolition or If Good – Temporary Management by NDND Prior to Sale
39
Sources & Uses – Quality Area
Use of Funds (x1,000) Source of Funds (x1,000)
Acquisition Road Funds $17,411
Demolition NSP $14,838
Relocation CDBG
Street Construction $15,670 HOME $3,183
NSP Demo $376 Foundation
NSP Acquisition $10,858 HUD 108
NSP Rehab $1,325 Mich. Tax Credit
Homeowner Rehab $2,750 NMTC
Project Management $3,543
Total $35,433 Total $35,433
40
Sources & Uses – Opportunity Area
Use of Funds (x1,000) Source of Funds (x1,000)
Acquisition $54,740 Road Funds $16,585
Demolition $8,408 NSP $3,724
Relocation $4,110 CDBG $4,968
Construction $17.332 HOME
NSP Demo $2,080 Foundation $24,051
NSP Acquisition $1,305 HUD 108 $22,186
NSP Rehab Mich. Tax Credit $12,750
Homeowner Rehab New Market T.C. $15,259
Project Management $8,798
Total $96,774 Total $96,774
41
Sources & Uses – Redevelopment Areas
Use of Funds (x1,000) Source of Funds (x1,000)
Acquisition $5,179 Road Funds $16,068
Demolition $1,452 NSP $4,943
Relocation $968 CDBG $8,359
Construction $14,606 HOME $3,256
NSP Demo $2,520 Foundation
NSP Acquisition $784 HUD 108
NSP Rehab $1,190 Mich. Tax Credit
Homeowner Rehab $2,851 NMTC
Project Management $4,120
Total $32,626 Total $32,626
42
Next Steps DEGC/NDNI Approve Strategy
Determine Target Completion Date – 5 Years(?) Form Neighborhood Improvement Authority to Implement
DEGC/NDNI to Manage Prepare Residential Area Regulations for Planning Commission Prepare Reuse Studies & Plans for Hubert School & Redford School Hire University School of Urban Planning Professor to Define Blight
Prepare PA 344 Plan – 2nd Year Form Team to Seek Howell Park Operator Start Now
Maximize Use of NSP funding in Keeping with Plan Assemble Financial Commitments to Implement Have DFTLBC Act to Assemble Targeted Property Including Tax
Reverted Property Prior to Auction
43
Brightmoor - Then – Now - Tomorrow