Weak Market Cities Detroit: A Ground Level Perspective

1. September 21, 2006 Anika Goss-Foster Senior Program Director Detroit LISC Weak Market CitiesDetroit: A Ground Level Perspective

2. Local Initiatives Support Corporation (LISC) Who We Are LISC helps resident-lead, community-based development organizations transform distressed communities and neighborhoods into healthy ones. By providing capital, technical expertise, training and information, LISC supports the development of local leadership and the create of affordable housing, commercial, industrial and community facilities, businesses and jobs. We help neighbors build communities. What We Do Detroit LISC provides operating support, technical assistance, project financing, leveraging of funding, and assistance with capacity building to more than 30 CDCs. Since 1990, Detroit LISC has invested over $80M and leveraged an additional $350M for the revitalization of Detroit.

3. Detroit’s History of Disinvestment • Approximately 40,000 city-owned vacant or abandoned properties • Nearly 43% of households earn less than $24,999/year • Over 24% live below the poverty level • Population Make-Up Detroit Oakland Black 82% 10 White 12 83 Hispanic 3 2

4. Detroit’s Declining Population

5. Detroit on the Rise Nearly 200 non-profits with community and economic development as core mission In 2003, nearly 75% of neighborhood development was sponsored by non-profits High level of civil, corporate and philanthropic support Named Top Philanthropic City in U.S. in 2003 by The Chronicle of Philanthropy

6. New Approach for the City Repositioning Detroit as a Leader in the Region Strategic Investments to Rebuild Detroit Neighborhoods Vacant and Abandoned Property Disposition

7. Detroit’s Population Sprawl Southeast Michigan 2000-2030 Decrease, more than 500 loss Little change, 500 loss to 500 gain Moderate Increase, 501 to 2500 gain Large Increase, 2501 to 5000 gain Very Large Increase, over 5000 gain

8. Metro Detroit Regional Investment Initiative Comprehensive program designed to address the consequences of urban sprawl that has particularly affected Southeast MI: Urban blight Inequitable social and economic opportunity Racial and cultural tension Build relationships and combine efforts between the City of Detroit and its inner ring suburbs to address issues of common concern.

9. Detroit vs. Grosse Pointe ParkAs of 2000 Census Grosse Pointe Park Racial Breakdown Caucasian 93% African American 3% Education High School 96% Higher Ed 56% No Vehicle 4% Homeowners 71% Median House Value $331,200 Detroit Racial Breakdown Caucasian 12% African American 82% Education High school 70% Higher Ed 11% No Vehicle 22% Homeowners 55% Median House Value $63,600

10. City-Owned Vacant Properties

11. Abandonment of Commercial Property Percentage of Abandoned Properties in Eight Commercial Corridors in Detroit

12. Systems Change in City Government Partnered with Deloitte to… Scrub and update baseline data and information for Planning and Development Dept. (P&DD) Streamline and document P&DD processes incorporating best practices from other cities Implement key performance indicators (KPIs) Implement web-based, user-friendly technology

13. New Tools for aggressive Action Create a Land Bank in Detroit • Expedited sale of lots • Brownfield and other tax credits • Improved title clearance • Land assembly • Private funding sources • Regional and intergovernmental cooperation

14. Moving Detroit Forward Multi- Tiered and Multi-Faceted Appropriate Land Use Legislation Collaboration is Key Investment model for Detroit and the Region