Planning and Development in Detroit - Initiatives

Initiatives

Some of Detroit's successful revitalizations include the New Center, Lafayette Park, East Ferry Avenue Historic District, Campus Martius, Grand Circus Park Historic District, and Washington Boulevard Historic District. In 2002, a major renovation of the historic Cadillac Place consolidated state offices from around the area into the city's New Center area. In 2003, General Motors completed a $500 million redevelopment of the Renaissance Center as its world headquarters. The east riverfront promenade development for the Detroit International Riverfront was planned at $559 million, including $135 million from GM and $50 million from the Kresge Foundation. The city has completed major redevelopment of Campus Martius Park and Cadillac Square Park. The plans have produced new downtown stadiums and a rebuilt freeway system intended to showcase the city for Super Bowl XL. With $1.6 billion in construction projects in 2004, the rapid pace of development in the city prompted construction of a $30 million cement terminal. In 2007, Bank of America announced that it would commit $25 billion to community development in Michigan following its acquisition of LaSalle Bank in Troy.

For 2010, the domestic automakers have reported significant profits indicating the beginning of rebound. Between 2009-2010, Detroit ranked seventh in the nation for economic recovery. A study conducted in 2006 by the University of Michigan-Dearborn determined that, in addition to the roughly 18,000 employees at the Detroit Metropolitan Wayne County Airport, activity generated an additional 14,500 jobs in Wayne County and another 70,000 statewide, primarily through firms such as hotels, restaurants, and rental car agencies. The study made the assumption that passenger traffic through the airport and economic activity in these service industries would increase on a 1:1 ratio.

The Wayne County Airport Authority saw the potential for growth in the air transportation sector almost a decade ago and began a capital improvement plan for the airport. The three original terminals from the 1950s were replaced by two new state-of-the-art terminals that opened in 2002 and 2008, respectively. Other major infrastructure improvements have been made to the runways, cargo facilities, and the terminals themselves with an eye toward increasing the airport’s capacity. At the time, the FAA forecasted a 15.2% growth in passenger travel from 2005 to 2010, and another 12.8% increase from 2010 to 2015. It was projected that the construction projects themselves would create 4,470 jobs, with an additional 21,500 jobs statewide due to increased passenger traffic.

One major focus of the capital improvement plan was to enhance Detroit's international gateway. Total travel has grown due to a surge in international travel, and international flights continued to increase before the recession negatively affected such flights at many airports.

Some other economic development initiatives in Detroit include the following:

• The Detroit Office of Targeted Business Development is also working to “utilize the City’s enormous buying power to re-circulate Detroit dollars within the local economy as many times as possible and to work collaboratively with other City agencies such as the Mayor’s Office of Neighborhood Commercial Revitalization (ONCR), with the ultimate goal of building and sustaining both the commercial infrastructure and the residential neighborhoods, thus transforming the Next Detroit." This includes facilitating the startup and growth of Detroit-based, women-owned businesses; Detroit-based minority-owned businesses; and Detroit-based small businesses.
• The Michigan Small Business Technology Development Center works to strengthen companies, create new jobs, retain existing jobs, and assist companies in defining their path to success.
• The Detroit Economic Growth Corporation (DEGC) manages major economic development initiatives on behalf of the City of Detroit, including transforming the East Riverfront District, developing the I-94 Industrial Park, managing the Lower Woodward Improvement Program, and creating the Paradise Valley Cultural and Entertainment District. The DEGC also provides staff services to Detroit’s public development authorities.
• The City of Detroit Downtown Development Authority supports private investments and business growth within Detroit’s central business district with loans, sponsorships and grants, capital improvements to public infrastructure, and other programs that increase economic activity.
• The Detroit Brownfield Redevelopment Authority (DBRA) to promote revitalization of environmental clean-up areas within the boundaries of the City of Detroit. The DBRA has approved over 160 brownfield plans, which are expected create $6 billion in new investments, 13,000 jobs, and over 9,000 housing units.
• The Economic Development Corporation of the City of Detroit assists local industrial and commercial enterprises to strengthen and revitalize the city and state economy through a loan program, public infrastructure improvements, and other programs.
• The Office of Neighborhood Commercial Revitalization (ONCR) has created a system of support services and strategies to targeted commercial strips, incorporating technical assistance and training, grants, and loans to address local business development. Some programs from the ONCR include Re$tore Detroit, ReFresh Detroit, and Small Business Detroit! Microloan, all of which provide financial support and assistance.
• The Michigan Works! System is the first unified workforce development system in the country and an instrumental partner for developing Michigan’s economic future. The system comprises twenty-five agencies that focus on innovative, proactive solutions to meet the demands of a rapidly changing economy.
• John Hantz, a successful financial consultant in Detroit, is devoting $30 million of his own funding to create Hantz Farms, a commercial urban agriculture initiative. The company will be owned, operated and staffed by local residents and make use of a portion of the city's tax-delinquent land parcels.

Some experts believe that Detroit needs to utilize the region's rich automotive history to break into new industries, such as battery technology, hybrid vehicles, and the auto parts industry, along with auto assembly. Other experts believe that Detroit's geographic location next to Canada provides a unique opportunity for trade and organizational growth. For example, Detroit's Wayne State University and the University of Windsor, Canada host an annual business symposium in order to tap into this strategic advantage and expand cross-border partnerships between Detroit and the Windsor region.

Quality of life initiatives, including the revitalization of parks, residential units, new construction, and historic renovations are at the forefront of the city's plan to accelerate redevelopment across the city. For instance, in 2004, the city added hundreds of new residential units to its downtown area. From 2000 to 2007, the city saw continuous annual increases in tax revenues from its casinos with the city estimated to collect $178,250,000 in casino taxes alone for 2007, with the casino resorts opening in 2008.