1. Could Big Beaver be the next downtown? Joe Menard / The Detroit News Monday, January 23, 2006 http://www.detnews.com/apps/pbcs.dll/article?AID=/20060123/BIZ/6 01230356

2. Yes, This is Shameless Brown-nosing Professor Goodman’s favorite street is Big Beaver/16 mile/Walnut Lake/ Quarton/Metropolitan pkwy Topic is worth 2.5 points of the presentation grade.

3. The Story The city of Troy is planning on two new developments along Big Beaver road City and business leaders want to create a “Downtown Southeast Michigan”

4. Overview A look at Troy’s development history. The demand for Land in the late 1960’s and early 1970’s A look at Troy’s situation today. The possible effects the new developments will have on supply and demand.

5. A Brief History of Troy Development Troy experienced steady growth in the late 1960’s and early 1970’s The Somerset Mall opened in 1969. K-mart headquarters moved there in 1970. The city experienced 96% occupancy. From 1970-2004, The population more than doubled- from 39,419 to 81,432.

6. Land Demand The increase in demand shifts the Demand curve right, raising both rent (R), and units (u) R U S D0D0 D1D1 R1R1 R0R0 U0U0 U1U1

7. Troy Today 85% occupancy National City Bank has recently moved its headquarters there. A new development project that will have 155 condos, and 11,620 sq ft. retail space. Development planned for the former K- Mart headquarters includes a luxury hotel, condos, shops, offices, and entertainment.

8. Land Supply The development projects planned for Troy will shift the supply curve to the right, increasing the number of units available, and lowering the value of the land. City and business leaders hope that the new developments will make the city a more attractive place to live and do business, which would shift the demand curve to the right also.

9. New Land Supply & Demand The final equilibrium will depend on the size of the shifts in the curves. Rent may increase or decrease, but the number of units will definitely increase R U D0D0 D1D1 S0S0 S1S1 R0R0 R1R1 U0U0 U1U1