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1 Brightmoor Land Use Prepared by AAB Development Strategies, LLC McKenna Associates Allen Associates Spalding DeDecker Associates.

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Presentation on theme: "1 Brightmoor Land Use Prepared by AAB Development Strategies, LLC McKenna Associates Allen Associates Spalding DeDecker Associates."— Presentation transcript:

1 1 Brightmoor Land Use Prepared by AAB Development Strategies, LLC McKenna Associates Allen Associates Spalding DeDecker Associates

2 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 50s, The Block-long Hudsons 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 Economys New Land Use Requirements

3 3 Understanding Detroit Land Use In the 50s 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 1 st 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 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 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

6 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 319,001100.0% More Detroiters Now Commute to Work in Suburbs Instead of Detroit Most of Detroit is Suburban in Use & Function Boston Has 682,000 Jobs for 286,000 Workers of 608,000 Residents Detroit Has 318,000 Jobs for 319,000 Workers of 825,000 Residents

7 7 Detroits 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 8 Detroits Competitiveness Housing Cost Differences Cost Impact on New Housing Values Housing CostDetroitSouthfieldBrownstown Property Taxes$410.19$335.94$194.31 Local Income Tax$83.33$0.00 Auto Insurance$178.45$91.41$79.85 Home Insurance$95.00$88.33$54.92 Principal & Interest 1,2 $333.03$584.32$739.31 Total PITI&I$1,100 HH Income $40,000 Value of New Home$150,000 Affordable Amount $62,037$108,849$143,608 $46,811$81,571

9 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 Governors New Initiative May Create Opportunity Need 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 10 Detroits Population Projection The Citys Population Is Likely To Stabilize At Between 500,000 And 600,000 By 2025 Sustainable Detroit Action Team Report Sponsored by AIA Detroit Needs to Plan Itself To House About 600,000 People by 2025 National Real Estate Institute

11 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 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 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 14 Projected Number of Houses, Households & Vacancies in Brightmoor 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

15 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 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 17 Fragmented Land Management Total Quality AreaBalance 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 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 19 Street Maintenance Maintenance Unrelated to Neighborhood Conditions Street Maintenance Needs to Be Targeted for Quality Areas

20 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 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 22 Preserve Institutions Preserve & Improve Quality Residential Areas Churches & Community Centers Preserved Greenway Maintained

23 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 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 25 Opportunity Area Brightmoor Next Economy Tech Park Job 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 26 Opportunity Area Brightmoor Next Economy Tech Park Job 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 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 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 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 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 31 Eliza Howell Improvements + 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 32 Eliza Howell Need to Find Non- city Operator Establish Indoor Soccer Fields

33 33 Eliza Howell A 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 Todays 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 34 Job Producing Option Community 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 35 Job Producing Options Encourage 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 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 2 nd or 3 rd Year Suggest Limited Use to Non-homestead Property Managed by NDNI or DEGC or Both

37 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 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 39 Sources & Uses – Quality Area Use of Funds(x1,000)Source of Funds(x1,000) AcquisitionRoad Funds$17,411 DemolitionNSP$14,838 RelocationCDBG Street Construction$15,670HOME$3,183 NSP Demo$376Foundation NSP Acquisition$10,858HUD 108 NSP Rehab$1,325Mich. Tax Credit Homeowner Rehab$2,750NMTC Project Management$3,543 Total$35,433Total$35,433

40 40 Sources & Uses – Opportunity Area Use of Funds(x1,000)Source of Funds(x1,000) Acquisition$54,740Road Funds$16,585 Demolition$8,408NSP$3,724 Relocation$4,110CDBG$4,968 Construction$17.332HOME NSP Demo$2,080Foundation$24,051 NSP Acquisition$1,305HUD 108$22,186 NSP RehabMich. Tax Credit$12,750 Homeowner RehabNew Market T.C.$15,259 Project Management$8,798 Total$96,774Total$96,774

41 41 Sources & Uses – Redevelopment Areas Use of Funds(x1,000)Source of Funds(x1,000) Acquisition$5,179Road Funds$16,068 Demolition$1,452NSP$4,943 Relocation$968CDBG$8,359 Construction$14,606HOME$3,256 NSP Demo$2,520Foundation NSP Acquisition$784HUD 108 NSP Rehab$1,190Mich. Tax Credit Homeowner Rehab$2,851NMTC Project Management$4,120 Total$32,626Total$32,626

42 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 – 2 nd 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 43 Brightmoor - Then – Now - Tomorrow

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