Project Profile The District Detroit

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The District Detroit to Full Council

Tuesday, March 28
10:00 am 13th floor or Zoom

City Council Zoom Link and Dial information:
Link: https://detroitmi.gov/Online-CC-Meeting
Dial: 312 626 6799 or 301 715 8592
Meeting ID: 858 4690 3626
Use *9 to raise your hand, *6 to mute or unmute

NEW! Read the Statement of Opposition!

Public Funding for The District Detroit?

We came, we heard, we watched, we attempted to engage in the process, we asked hard questions, we offered well researched recommendations, we pushed back on unacceptable answers, we showed up everywhere we could, we called Detroiters to action, we chanted and screamed, we have interrupted, we have called for accountability, and we have and will fight back against nearly a BILLION DOLLARS in public tax incentives being used on a project that will negatively impact majority Black Detroit.

Majority Black Detroit has had enough!

    • This is the largest and worst Community Benefits Agreement (CBA) deal yet. 
      • The total cost of the project is $1.5 Billion. 
      • The total public investment requested is $797.75 Million. 
        • 55% public funded
      • The developer’s contribution to the benefits is $12 Million.
        • 01.5% in benefits (Stellantis and Michigan Central were 3%-4%)
        • A Michigan Central Station NAC member alleged an average of 14-17% in benefits nationally.
    • The disparity in household incomes in the impact area ranges from $17,743 to $78,947. This CBA provides zero benefit for existing impact area residents who may be struggling and be impacted the most by the project. Most benefits are for future Detroiters.
  • Only 63 “End Employer” Permanent Jobs?
      • The developer will be the end employer for only 63 jobs.
      • The projected 6,000 jobs number includes 1,200 temporary construction jobs with the remainder dependent upon potential future tenant hiring.
      • The total public investment requested is $797.75 Million
      • That’s $12.6 Million for each of these 63 jobs and 9 jobs per Council District.
  • There are NO assurances or guarantees on the $100 Million spend with Black, Brown and Minority businesses.
  • The Schools and Libraries must be made whole! 
    • The Neighborhood Advisory Council (NAC) took a Library contribution from the developer off the table during negotiations.
    • Over the next 35 years, the revenue and tax loss related to The District Detroit will be $226.8M for Schools and $5.7M for libraries.
    • DEGC and Law Department reps have stated that the DDA tax captures for the Library will end in 2026. But isn’t that dependent on Detroiters approving a future millage? This is a potential change in the tax law, not a certainty as presented.

Injustices and their sources

  • The total public investment requested is $797.75 Million. (1)
  • Over the next 35 years, the revenue and Tax loss related to the District Detroit will be $226.8M For Schools and $5.7M for libraries. (1)
  • In 2018, Ilitch Holdings total combined revenue was $3.8 billion and according to Forbes magazine, Ross has a net worth of $7.6 billion in 2020. (2),(3)
  • Like Ilitch and Olympia in Detroit, Ross and Related are known as bad landlords and bad neighbors in markets across the US. (4), (5)
  • Ilitch/Ross are attempting to claim $172M in benefits when they are only directly contributing $12 Million. (6)
  • The developers offered a Quarter of a Million Dollar donation to the Detroit Public Library and the Neighborhood Advisory Council (NAC) leaders Chris Jackson and Wayne County Commissioner Jonathan Kinloch TOLD THEM THEY DIDN’T WANT IT. (7)

References

1 Transformational Brownfield Plan https://detroitmigov.app.box.com/v/DistrictDetroitNAC/file/1121056706753

2 https://en.wikipedia.org/wiki/Christopher_Ilitch

3 https://en.wikipedia.org/wiki/Stephen_M._Ross

4 https://bit.ly/RelatedViolations

5 https://acrecampaigns.org/wp-content/uploads/2020/05/Make-Them-Pay-May-2020.pdf

6 https://detroitmi.gov/sites/detroitmi.localhost/files/2023-02/District%20Detroit%20NAC%20Slides_Meeting%207_02.07.2023.pdf

7 Donation Give-Back starts at 1:16:11 https://bit.ly/DistrictCBOFeb7

Where did our numbers come from?

page1image39018208

TRANSFORMATIONAL BROWNFIELD PLAN
DETROIT BROWNFIELD REDEVELOPMENT AUTHORITY

Play Video

The District Detroit discussion on 910am

Theo Pride on the Anthony Adams' Show

This video shared for educational purposes only. We do not own the rights to any of the content. The full video is available: https://fb.watch/im5AuwQJOo/ Thank you https://www.910amsuperstation.com

Detroit Brownfield Redevelopment Authority (DBRA) Engagement

Thanks to those who were able to put eyes on the Detroit Brownfield Redevelopment Authority this week. DPP are thankful for the support of this phase of the campaign opposing the public funding of The District Detroit. Here is the wrap on engagement with the DRBA. Please share this information through your networks and let me know if you need more details. 

  • DPP’s Statement on the DBRA Vote - In the absence of due diligence, the DBRA Board sign off on $616M in tax incentives for up to 35 years for The District Detroit Project - Read and Share
Learn More

The District Detroit Project Profile

https://www.detroitpeoplesplatform.org/districtdetroit

The Detroit People’s Platform “landing” page for The District Detroit.
All of the info below is available on this page, please share.

The District Detroit, a joint project by the Ilitch organization's Olympia Development and megadeveloper Stephen Ross' Related Companies, is requesting nearly a BILLION DOLLARS in development incentives. The project is currently going through the city’s community benefits process and negotiations are underway between the Neighborhood Advisory Council (NAC) and the developers. A DBRA Public Hearing on the Transformational Brownfield Plan will be held February 6, 2023 at 5pm.

 

Engage in the Process - Ask Hard Questions

  • Join us at Cass Tech Tuesday evenings at 6pm - We anticipate CBA meetings will run through February.
    If unable to attend in person join ZOOM: bit.ly/DistrictDetroitCBO
  • Email the Neighborhood Advisory Council districtdetroitNAC@gmail.com
  • Attend the DBRA Public Hearing for the "Transformational Brownfield Plan" will be Monday, February 6, 2023 at 5:00 PM - Zoom details in link.

 

Public Education/Media

 

CBA Recommendations from Equitable Detroit Coalition and Detroit People’s Platform

A SUBSTANTIAL multi-year investment in the Affordable Housing Trust Fund - The Detroit Affordable Housing Development and Preservation Fund (DAHDPF) commonly known as the Detroit Affordable Housing Trust Fund (HTF), over the life of the District Detroit abatement period. By ordinance, the HTF can accept donations, grants and contributions. EDC/DPP Letter to the NAC on the Affordable Housing Trust Fund: https://www.detroitpeoplesplatform.org/housing-justice/letter-to-the-district-detroit-nac/

INVEST IN A RELOCATION FUND TO SUPPORT THOSE WHO WILL BE DISPLACED - The disparity in household incomes in the impact area range from $17,743 to $78,947. The majority Black neighborhoods have lower median household incomes. The economic changes created by The District Detroit WILL displace Black women, children, and seniors who currently live in the impact area. The District Detroit Relocation Fund will support these impacted Detroiters. EDC/DPP Letter to the NAC on Displacement/Relocation Fund:https://www.detroitpeoplesplatform.org/economic-justice/letter-to-district-detroit-nac-on-affordable-housing/

MAKE THE LIBRARIES AND SCHOOLS WHOLE! - Our libraries and schools have been deeply impacted by revenue loss from publicly funded private development projects. If developers financed their own private projects, our public institutions would benefit. Though city council can pass resolutions, laws governing tax capture exemption must be changed at the state level. The revenue loss to our schools and libraries due to tax capture from brownfield funding and tax abatements associated with the District Detroit project is appalling. Over the next 35 years the revenue loss for schools will be $226.8M. The total loss for libraries: $5.7M. The District Detroit developers must make our public libraries and schools whole. School and Library Tax and Revenue Loss associated with District Detroit: https://www.detroitpeoplesplatform.org/economic-justice/school-and-library-tax-and-revenue-loss/

Where did we get our numbers? District Detroit TRANSFORMATIONAL BROWNFIELD PLAN
Read: https://www.detroitpeoplesplatform.org/wp-content/uploads/2023/01/District-Detroit-TBP-Combined-Transformational-Brownfield-Plan-01202023.pdf

REAL Community benefits for
The District Detroit

Real community benefits must include agreements that address the project’s impact on existing residents. Below are three recommendations that will move this project toward addressing the racial and economic disparities that have been inherent in Detroit’s development model. 

What are the real Community Benefits that Detroiters deserve for making this investment?

A SUBSTANTIAL multi-year investment in the Affordable Housing Trust Fund

The Detroit Affordable Housing Development and Preservation Fund (DAHDPF) commonly known as the Detroit Affordable Housing Trust Fund (HTF), over the life of the District Detroit abatement period. By ordinance the HTF can accept donations, grants and contributions.

Invest in a RELOCATION FUND to support those who will be displaced

The disparity in household incomes in the impact area range from $17,743 to $78,947. The majority Black neighborhoods have lower median household incomes. The economic changes created by The District Detroit WILL displace Black women, children and seniors who currently live in the impact area. The District Detroit Relocation Fund will support these impacted Detroiters.

Make the Libraries and Schools Whole!

Our libraries and schools have been deeply impacted by revenue loss from publicly funded private development projects. If developers financed their own private projects, our public institutions would benefit. Though city council can pass resolutions, laws governing tax capture exemption must be changed at the state level. The revenue loss to our schools and libraries due to tax capture from brownfield funding and tax abatements associated with the District Detroit project is appalling. Over the next 35 years the revenue loss for schools will be $226.8M. The total loss for libraries: $5.7M. The District Detroit developers must make our public libraries and schools whole.

Source: District Detroit TRANSFORMATIONAL BROWNFIELD PLAN by DETROIT BROWNFIELD REDEVELOPMENT AUTHORITY
Read: https://www.detroitpeoplesplatform.org/wp-content/uploads/2023/01/District-Detroit-TBP-Combined-Transformational-Brownfield-Plan-01202023.pdf

The Developers

Stephen Ross - Related Companies

  • Ross is the chairman and majority owner of The Related Companies, a global real estate development firm he founded in 1972.
  • According to Forbes magazine, Ross has a net worth of $7.6 billion in 2020.
    Ross the principal owner of the Miami Dolphins and Hard Rock Stadium.
  • Ross is a major benefactor of the University of Michigan; with lifetime contributions of $478 million.
  • In 2020, Ross announced an additional $100 million for the construction of the University of Michigan Detroit Center for Innovation.
  • Source: https://en.wikipedia.org/wiki/Stephen_M._Ross

The Ilitch Family - Olympia Development

  • Ilitch companies include Little Caesars Pizza, Olympia Development, Olympia Entertainment, MotorCity Casino Hotel, numerous real estate holdings, the Detroit Tigers, and the Detroit Red Wings.
  • In 2018, Ilitch Holdings total combined revenue was $3.8 billion.
  • Source: https://en.wikipedia.org/wiki/Ilitch_Holdings

Public Investment

The District has already sucked up about half a billion dollars in public money with the construction of Little Caesars Arena and the soon to come Detroit Center for Innovation, anchored by the University of Michigan. With the new proposed builds, the billionaire developers will be seeking even more public money in the form of a $616 Million in Transformational Brownfield funds.

When we factor in the interest on bonds, value of public land, and bonus incentives, public investment for these projects will be well over a billion dollars. To put it in perspective, that sum is about Detroit’s entire annual general fund.

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