Southwest Detroit : Detroit Development News

The City of Detroit has released a request for proposals for the development of 4,000 units of service-supported rental housing targeted to the homeless. The NEXT Detroit Permanent Supportive Housing Initiative is looking for developers  teamed up with service providers to deliver such a product.

The city, along with partner organization Detroit Collaborative to End Homelessness Together, recently completed a ten year plan for the elimination of homelessness that calls for a three-pronged strategy: the development of permanent housing called for in this RFP along with prevention and rapid re-housing.

Elterro Carroll, deputy director of the planning and development department hopes that this first round will generate 250 to 500 units over the course of the next two years. He anticipates that applicants will be both teams of developers and service providers as well as single organizations, such as Southwest Solutions, that already do both.

The RFP is deliberately vague as to the size and scope of proposed developments, leaving the door open for large projects sited on large parcels as well as smaller ones; types of housing called for include units designed to serve families, youth and the chronically homeless.

Prospective applicants can pick up an RFP from PDD's Welcome Center on the second floor of Cadillac Tower. They also can view and download the RFP at the City’s Website, www.detroitmi.gov/pdd. On Feb. 27, applicants are invited to attend an RFP information session at 10:30 a.m. in the department’s 23^rd floor conference room. Completed proposals are due on March 28 and development teams selections will be announced on May 1. For more information call 313-224-1538.

Source: Elterro Trent Carroll, PDD
Writer: Kelli B. Kavanaugh

Anyone who has driven in D.C., San Francisco or Toronto might be familiar with the concept of high-occupancy vehicle (HOV) lanes, which reserve specific travel lanes for cars -- and buses -- with multiple riders to reduce congestion.

Michigan is set to get its first HOV lane this Friday along Michigan Ave. between Wyoming and the Lodge Freeway. The lanes adjacent to the parking lanes will be reserved for HOVs on weekdays, eastbound between 6 and 9 a.m. and westbound between 3 and 6 p.m.

The introduction of the HOV lanes ties in with the closure of a significant portion of I-75 for the Gateway Project, which will be a headache for thousands of Metro Detroiters. In anticipation of commuter confusion, DDOT and SMART are debuting a new bus line called the Gateway Express that will connect downriver to downtown during construction.

Both projects will premier on Feb. 15 with a press conference and ribbon cutting at 9:30 a.m. at O’Blivion’s Corktown Café, 1824 Michigan Avenue. The event consists of a continental breakfast and a preview bus ride. RSVP to to Denise Brazer at 248-483-5107 by Feb. 12.

Source: Transportation Riders United, MDOT
Writer: Kelli B. Kavanaugh

As 2007 marches to its end, the Historic Fort Wayne Coalition has a list of accomplishments as long as the fort's history.

Well, that's a bit of an overstatement, but the group has much to be proud of -- starting with the fact that their membership has grown from 35 to 176 this year alone.

Founded in 2004 by fewer than ten Fort Wayne enthusiasts, the group focused mainly on the grounds for its first few years of existence. In January of 2007, the coalition decided to actively recruit members and to expand its purview. Working with Ford Motor Co., General Dynamics and the Boy Scouts of America, a lot of ground has been covered in just one year.

Accomplishments include:

• The Fort Wayne Advisory Committee, which works directly with the Detroit Recreation Department, was established;
• Vegetation was removed from all walls;
• The Guard House, Barracks (pictured) and Gymnasium/Visitor's Center were stabilized;
• The front staircase and back fence of the Commander's House were rebuilt;
• The Blacksmith's Shop was rebuilt;
• Dead elm trees were removed and ash trees were inoculated against borers;
• Fences were painted;
  
• Windows were refurbished and replaced and woodworking tools were refurbished at the Quartermaster's Shop; and
  
• Bulkhead doors were secured and rebuilt on all buildings.

All told, more than 6,000 volunteer hours were donated to the efforts this year.

Big plans are afoot in 2008, beginning on January 5, the year's first volunteer work day. The coalition will be seeking out corporate sponsors for their "Wrap a Roof" program to secure all building roofs.

Because it has power and heat, Building 106 will be restored, although it is not particularly historically significant. The four-lane bowling alley in the Gymnasium will be restored and the Tuskegee Airmen Museum will be painted and receive a new roof.

For more information on how to participate, visit the Historic Fort Wayne Coalition's website to join the organization or find out about up-coming work dates.

Source: Bob Hovansian, Historic Fort Wayne Coalition
Writer: Kelli B. Kavanaugh

Detroiters who wear glasses let out a collective moan when Bagley Optical moved to the suburbs. Where was a discriminating frame-head to go to find well designed spectacles?

The answer can be found
tucked away on a Southwest Detroit side street. El Valle Optical has got your Gucci, Versace, Kenneth Cole, Nicole Miller and Cynthia Rowley, and its frames are curated in a manner that is neither overwhelming nor sparse. Plus, proprietor Leticia Mota helps her customers find the perfect frame for their style and face.

Mota worked at Bagley Optical for eight years. When the shop relocated from Corktown to downtown in 2001, she opted to open her own store. She moved to her current location on Campbell Street within a block of Holy Redeemer Church in 2004. She started with just 10 customers but has grown to more than 1,000.

El Valle's main customer base is Southwest Detroit residents and workers, but Mota is eager to expand her reach. "I want to let people who don't live in Southwest Detroit know what I have," she says. "I don't see myself selling something that looks blah on (anyone's) face."

El Valle also offers eye exams. It is open 10 a.m. to 5 p.m. Monday through Friday, 10 a.m. to 2 p.m. Saturday and 11 a.m. to 3 p.m. Sunday. It is located at 940 Campbell St., just north of W. Vernor. Call 313-551-0707.

Source: Letecia Mota
Writer: Kelli B. Kavanaugh

Washington, D.C.-based Social Compact has released initial findings from its study of Detroit demographics. The numbers revealed by their DrillDown approach paints a wealthier and more populous picture of Detroit than does the Census.

This is good news for the Detroit Economic Growth Corp., which plans to use the information to attract retailers to the city. The findings include:

• The resident population of Detroit is 933,043, nearly 62,000 more than projected by the current Census population estimates. 
• The average income of a Detroit household is $48,000 as opposed to the 2000 Census estimate of $40,900. 
• There is $800 million of informal economic activity in Detroit's economy each year. This is income like tips, side-consulting, baby-sitting and the like that do not register on traditional market measures.
• The aggregate income of Detroit households, $15.8 billion, is $2 billion greater than indicated by 2000 Census estimates.
• At least $1.7 billion of resident retail spending is being leaked outside the city limits.
  

Traditional census methods tend to undervalue older urban cities for several reasons, one of them being a bias towards new home construction. "The bureau assumes that a certain percentage of homes built before 1940 are retired each year," says Social Compact president and CEO, John Talmage. "The burden rests on the city to prove otherwise."

Immigrants and intergenerational households are also often under-counted.

"This really creates better information for actual business people, developers and brokers," says DEGC project manager Olga Savic. The organization will work to educate these entities, along with government officials and community development corporations, as to how these numbers can be used to leverage commercial investment.

There will also be more surveying at the neighborhood level, which has the potential to reveal even more residents and income. "The numbers are good enough to go after grocery stores now," says Talmage. "It's just going to get better."

Download a copy of the report here.

Source: John Talmage, Social Compact and Olga Savic, DEGC
Writer: Kelli B. Kavanaugh

Any slightly-observant Detroit resident -- or even an intermittent Model D reader -- has likely noticed that new businesses are sprouting up all around the city. It's just not happening quickly enough for a couple of local entrepreneurs who have started Open City, a networking group for would-be Detroit business owners.

Over 60 people, a mix of aspiring and actual business owners, attended the group's kick-off meeting at Cliff Bell's on September 18. "We wanted to introduce people to the concept of having a group whose purpose is simply to encourage them and educate them about opening a business in Detroit in an informal manner," says co-founder Liz Blondy of Canine to Five Detroit Dog Daycare.

Blondy and her cohort, Clare Nelson of The Bureau of Urban Living, realized that there were plenty of hurdles standing in the way of starting up a business in Detroit, such as red tape, the perception that the city is unsafe and is not a place where money can be made. Start-up financing is also an issue.

They think the effort is worth it. "People will be so appreciative. They will notice it more then if you open in the suburbs," Blondy said in her opening remarks. "You’ll get more PR for opening in Detroit. Detroiters crave new exciting businesses. Being located in Detroit will help distinguish your business. A high end modern furniture store in Birmingham? There are like four of them. In Detroit, it is unique."

Detroiter Dave Mancini has been contemplating opening up a pizza parlor in the city for several years. "I gave up on Detroit, to be honest," Mancini says. "It was difficult to get in touch with the type of people I needed to get in touch with, and I was having trouble finding space that was not prohibitively expensive to rehab." He attended the meeting as a last-ditch effort at the urging of a friend.

He's glad he did. "There was such good energy from so many people," Mancini says. He was greatly encouraged by keynote speaker Jackie Victor of Avalon Breads. "Having talked to her made me feel better about my prospects down here," he says. "Since the meeting, I've been making more calls. I realize that I haven't turned over every rock yet."

Open City's next meeting will take place October 16. For more information, contact Blondy at liz@caninetofivedetroit.com.

Source: Liz Blondy, Open City
Writer: Kelli B. Kavanaugh

The West Vernor commercial corridor has gone from bust to boom in the last decade. Part of the reason is that the Southwest Detroit Business Association has been operating a voluntary Business Improvement District there for the past seven years. Last week a vote of property owners formalized that BID, which sets a historic precedent in Michigan.

BIDs have been used to great effect in urban areas around the country. Assessments they generate can only be used in the designated area, which means services can be specifically targeted to the needs and personality of the district. The Southwest Detroit BID includes properties fronting W. Vernor from Clark to Woodmere and those along Springwells from W. Vernor to I-75.

Securing the BID was a four-step process. First, SDBA petitioned property owners to gauge their interest. Then, a zone plan was developed based on surveys that spoke to priorities. "Clean and safe were the most important priorities," says Amy Raupp, the organization's neighborhood development specialist. Marketing and capital improvements also ranked high on the list.

After City Council approved the creation of the BID, a vote was taken. Ballots were mailed to the owners of 371 parcels of land. Of the 183 votes received, 66 percent voted to approve the property assessment. The votes were weighted according to assessed value.

Raupp is excited about the impact the BID will have on the West Vernor/Springwells area. "This is all about the future of Southwest Detroit," she says. "This is about bringing in more investment and protecting the investments that people have already made."

The proposed 2% assessment would bring in $290,000.

Read more about BIDs here.

Source: Amy Raupp, SDBA
Writer: Kelli B. Kavanaugh

Historic designation is in the making on one of the great avenues on Detroit's West Side.

Stretches of Michigan Avenue from I-96 west to the Detroit-Dearborn city limits have several notable, intact storefronts.

In order to capitalize on historic tax credits that might help prod redevelopment, the Michigan Avenue Business Association is working to have the storefronts designated as historic by the Michigan State Historic Preservation Office. "Tax credits are critical to the redevelopment of the area," says consultant Ernie Zachary of Zachary and Associates. "We've seen it in New Center and the Cass Corridor. The impact of historic tax credits is enormous."

A preliminary SHPO review cited several promising nodes. The Senate Theatre (pictured), The Gen. George S. Patton PLAV on Central just north of Michigan and the row of intact storefronts near the intersection of 22nd were called out, among other properties, as being potentially eligible for the National Register of Historic Places.

MABA is currently seeking funding from a foundation in order to complete research and create an implementation plan. "We will look at site control and come up with strategies for the reuse of sites," says Zachary. "We will ask, 'What can go there?' " The implementation plan will also address parking and streetscape design and will prioritize needs, in terms of both public and private investments.

MABA hopes to capitalize on the influences of the Hispanic community moving north from W. Vernor and the Middle-Eastern one moving east from Dearborn. "There's been an increase in population," says Zachary. "We have some real positive momentum."

Sources: Matt Prochaska, MABA and Ernie Zachary, Zachary and Associates
Writer: Kelli B. Kavanaugh

The national office of Local Initiatives Support Collaborative (LISC) has awarded its Detroit office $100,000 in its Building Sustainable Communities program. The grant will be used in the five areas of the city that the organization has targeted in its Neighborhoods NOW initiative.

LISC defines sustainable communities as those that are working to expand capital investment in housing and real estate development; increase family income, wealth and employment; stimulate local economic activity and connect to the regional economy; improve access to quality education and support healthy environment and lifestyles. "It is all of those kinds of things that lead to communities being able to be self-supporting," says Program Director Deborah Younger.

Although LISC has been primarily known for its efforts in real estate development, their reach has expanded with their Neighborhoods NOW efforts. "What we're saying is that we're going to do community development activities in these areas in every component, not just real estate," says Younger.

Neighborhoods NOW is a $100 million initiative overall. Detroit is one of eleven cities nationwide that is a demonstration site for the Building Sustainable Communities program.

Source: Deborah Younger, Detroit LISC
Writer: Kelli B. Kavanaugh

Cityscape Detroit will hold a panel discussion on the topic of brownfield redevelopment on July 24 from 4 to 6:30 p.m. The event will be moderated by Robert Colangelo, CEO of The National Brownfield Associations.

The panel is comprised of the following local experts:

• Mariangela Pledl, Brownfield Redevelopment Associate Director, Detroit Economic Growth Corp.;
• Doug Brown, Director of Development, ASTI Environmental;
• Bob Zinser, Housing Consultant, Cass Corridor Neighborhood Development Corp.; and
  
• Kurt M. Brauer, Partner, Bodman, LLP.
  

The diversity of experience of the panelists and moderator will ensure that all aspects of brownfield redevelopment will be covered, including financing, usage and legal and technical issues. Brownfield tax credits can be used not just for contaminated sites, but for those deemed functionally obsolete. Their leverage is often an integral piece of the development-in-Detroit puzzle.

The event will be held at The 55 West Canfield Lofts located at 55 W. Canfield Detroit, MI. The event costs $20, which includes a one year membership to Cityscape Detroit. RSVP at rsvp@cityscapedetroit.org

The following day, the Michigan Avenue Business Association will host the second part of its brownfield educational series from 8:30 to 11 a.m at UAW Local 22, 4300 Michigan Avenue. For more information, contact Matt Prochaska at MABA at 313-841-1870.

Sources: Cityscape Detroit and MABA
Writer: Kelli B. Kavanaugh

On July 2, John Schoeniger began work as Loan Fund Manager at ShoreBank Enterprise Detroit (SED), a nonprofit affiliate of ShoreBank Corporation. Most recently, Schoeniger was Vice President of Residential Real Estate Lending for ShoreBank in Cleveland.

Schoeniger will work primarily with small- and mid-sized developers and minority- and female-owned small businesses. Money from the fund can be used for predevelopment and preconstruction financing as well as predevelopment work such as appraisals, environmental assessments and architecture and engineering. "We want to fill gaps if there are any," he says. "We are willing to be creative and flexible, up to and including equity or equity-like deals."

The new position became necessary when SED received nearly $12 million in investments and loans from the Ford and Knight foundations in January. The fund's goal is specific: build and renovate commercial and residential properties in Detroit, particularly in Next Detroit neighborhoods. Schoeniger's goal is to have $2 million "out the door" in the twelve months.

He points out that funds from SED can be used to leverage conventional financing and/or to fill in any gaps that remain in a development portfolio. A developer, he says, "might have some of the money, but not all. We will try to figure out what they need and how to get it to them."

Schoeniger came to banking from a background in construction and real estate which, he says, helps him "communicate to all kinds of small- to mid-sized contractors and developers." He sees "rust belt" parallels between his experiences in Cleveland and the initiative he has undertaken in Detroit.

Source: John Schoeniger, SED
Writer: Kelli B. Kavanaugh

In our last issue, Model D rounded up a few downtown newbies into one Development News article (see here). This week, we venture out a bit.

Up in New Center, things haven't stopped now that CityFest is wrapped up. A new clothing boutique, Rock & Soul, has opened up on Woodward just south of W. Grand Blvd. Check it out Monday through Friday 10 am to 6 pm or Saturday 10 am to 7 pm. The shop is at 6534 Woodward Avenue and can be reached at 313-758-0445.

In Hamtramck, a national restaurant chain called Johnny's Lunch -- an old-fashioned diner, complete with red hots, sliders and shakes -- will open a location in the Towne Center shopping plaza at Jos. Campau and Holbrook. Johnny's is currently located in Toledo and Jamestown, NY; the Hamtramck location is one of six planned for Michigan.

Kumon Math and Reading Center has opened in Mexicantown's Lithuanian Hall. The 1,500-square foot center offers remedial and advanced tutoring for students from pre-school to high school. Visit 3750 W. Vernor Highway or call 248-290-0450 x257.

Further Southwest, the National City bank branch at W. Vernor and Dragoon has opened its doors to the public. Click here for more information.

On Michigan Avenue in Corktown, the Zeitgeist Gallery and Performance Venue has installed some cool metal sculptures in the flower boxes in front of their building. Not coincidentally, it is celebrating its tenth anniversary this month -- with a laundry list of exhibitions and events. Definitely worth a look-see.

Meanwhile, back downtown, 1001 Woodward has really overhauled its website. Could concrete news about the condominium development be far behind? We'll let you know what we find out.

Writer: Kelli B. Kavanaugh

Detroit's Local Initiative Support Organization unveiled plans totaling $100 million for seven targeted areas. The plans were developed over the last two years by community groups and residents, says Deborah Younger, Detroit LISC program director. "No one knows best what a community needs than the folks that live there,"Younger says.

The seven areas fall under one of two targets: Strategic Investment Area or Regional Investment Initiative. The former groups community development corporations with service providers, residents, businesses, government agencies and other stakeholders to craft plans for their areas. The latter pairs CDCs from Detroit with partners from inner ring suburbs to attempt to bridge a gap between the cities and to address shared needs.

SIA areas include Southwest Detroit which will attempt to build on its cultural and historic heritage and increase market rate housing; Far East/Lower East Side which will develop mixed income housing and increase retail services; Northwest Detroit which will focus on infill housing and a strengthened commercial corridor; and Central Woodward which will focus on workforce training, mixed-income housing and retail.

RII teams paired up the Jefferson East area with Grosse Pointe; the South Fort/Visger Corridor  with Ecorse, Lincoln Park, and River Rouge; and Van Dyke - 8 Mile with Center Line and Warren. RII was supported primarily by the Ford Foundation with the objective that similar efforts can be replicated across the country.

Now that general plans have been crafted for each of the areas, LISC will target fundraising efforts towards foundations and others that support each particular initiative a community has identified. Already $38 million has  been secured; an estimated $100 million is needed to complete the initiatives. LISC will also continue to play a public policy role as well as connecting neighborhood groups with larger economic development initiatives.

Source: Deborah Younger, Detroit LISC
Writer: Kelli B. Kavanaugh

On June 9, the Southwest Detroit community marked yet another transformational development project with the grand opening celebration of the LA SED Building, located on W. Vernor at Scotten directly across the street from Clark Park. The project consists of 6,500 square feet of retail space and 12 residential units -- a mix of affordable and market rate.

Bob O'Brien, director of partnership development for Southwest Solutions, says the importance of this redevelopment project, which once housed the notorious Carnival Bar, cannot be overstated. "The transition of this building from a center of crime, drugs and violence to desirable commercial and residential space," he says, "is another step in transforming this community into a great place to live."

Southwest Housing Solutions will act as property manager for the residential units, one of which is 3-bedroom, eight of which are 2-bedroom and three of which are 1-bedroom. Call 313-841-3727, extension 325 for more information. SER Metro Detroit will act as leasing agent for the commercial space. Call 313-846-2240, extension 228.

Source: Bob O'Brien, Southwest Solutions
Writer: Kelli B. Kavanaugh