Updated - On Thursday March 16, 2023 the Planning and Economic Development Committee moved The District Detroit project forward without recommendation. The project will be on the agenda Tuesday, March 21, 2023 at 10 am. Detroit People’s Platform, allies and supporters will host a Rally in Opposition to the public funding of The District Detroit at 9:30 am before the council session in front of the Spirit of Detroit, Coleman A. Young Municipal Center.
Rally in Opposition to Public Funding of The District Detroit
When: Tuesday March 21, 2023 – 9:30 am
Where: The Spirit of Detroit, Coleman A. Young Municipal Center
What: Rally, bring signs, banners, wear org shirts, chants
Who: It’s nearly a BILLION in tax incentives, all Detroiters should have a say!
Why: Because we’ve had enough!
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!
Join us Tuesday, March 21 at 9:30 am in front of the Spirit of Detroit at the Coleman A. Young Municipal Center for a Rally in Opposition to Public Funding for The District Detroit.
- 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.
- This is the largest and worst Community Benefits Agreement (CBA) deal yet.
- 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)
1 Transformational Brownfield Plan https://detroitmigov.app.box.com/v/DistrictDetroitNAC/file/1121056706753
7 Donation Give-Back starts at 1:16:11 https://bit.ly/DistrictCBOFeb7
Where did our numbers come from?
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
- Videos - DBRA Board Meeting, Feb 8, 2023
- Full Board Meeting - 1.5 hours - https://youtu.be/cbIKAhMOLp8
- The Vote and the rest of the meeting - 13 minutes - https://youtu.be/9prR4iVdG1U
- DeSantis Comment on No Vote - 5 minutes - https://youtu.be/ZWD6Aatd_-Y
- Dueweke Comment on No Vote - 4 minutes - https://youtu.be/HwoB8tEPC58
- Source Material
- The District Detroit TRANSFORMATIONAL BROWNFIELD PLAN
- Developers Presentation from the February 7th CBO Meeting
- Note: The Developers are attempting to claim $167M in benefits when they are only directly contributing $12M!
- Additional - Recording of the February 7th CBO Meeting
- DBRA Public Hearing on The District Detroit, Feb 6, 2023
- https://youtu.be/0fxfdTanusk - Full Meeting
- Media Coverage – DBRA Vote
- Detroit Free Press - $1.5B District Detroit buildout snags a key vote
- Detroit News - Brownfield board OKs $616M in reimbursements for $1.5B District Detroit project https://www.detroitnews.com/story/business/2023/02/09/brownfield-board-oks-616m-in-tax-incentives-for-district-detroit/69886121007/?fbclid=IwAR0U8yKEDwfEhjYcfDvg7-bP7Dd9dnNTzlgq_tpoS9Re9ZuVl0s46TzEqdY
- Crains Detroit Business - https://www.crainsdetroit.com/real-estate/brownfield-board-oks-616-million-subsidy-new-district-detroit-plan
- WDET - https://wdet.org/2023/02/09/brownfield-board-district-detroit-tax-break/
- Detroit Free Press - $1.5B District Detroit buildout snags a key vote
- Media Coverage – DBRA Public Hearing
- Free Press - $1.5B District Detroit buildout faces heavy criticism at public hearing over incentives
The District Detroit Project Profile
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.
- Theo Pride on the Anthony Adams Show - https://youtu.be/8f9fDzyMCa0
- Free Press: More details emerge for $1.5B District Detroit buildout and incentives - https://www.freep.com/story/money/business/2023/01/31/district-detroit-buildout-1-5-billion-proposal/69853574007/
- Project Profile and Recommendations Info Sheet (pdf) - https://www.detroitpeoplesplatform.org/wp-content/uploads/2023/02/DistrictDetroitInfoSheet.pdf
- Project Profile and Recommendations Memes - https://www.detroitpeoplesplatform.org/economic-justice/district-detroit-project-profile-and-recommendations/
- School and Library Loss Memes - https://www.detroitpeoplesplatform.org/economic-justice/school-and-library-tax-and-revenue-loss/
- Source Material: The District Detroit Transformational Brownfield Plan - https://www.detroitpeoplesplatform.org/wp-content/uploads/2023/01/District-Detroit-TBP-Combined-Transformational-Brownfield-Plan-01202023.pdf
- Oppositional Research: City of Detroit’s District Detroit page - https://detroitmi.gov/departments/planning-and-development-department/design-and-development-innovation/community-benefits-ordinance/ongoing-cbo-engagement/district-detroit
- Oppositional Research: The District Detroit developer’s website - https://www.districtdetroit.com
- Oppositional Research: Wikipedia – Stephen Ross/Related Co - https://en.wikipedia.org/wiki/Stephen_M._Ross
- Oppositional Research: Wikipedia – Olympia Development/Ilitch Holdings - https://en.wikipedia.org/wiki/Ilitch_Holdings
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
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
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
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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