Ask the Scholar
Document scope · 1 page
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory.
For page-specific OCR and visual context, open one of the page chats.
Source Description
This file contains published reports on a urban economic revitalization plan for Detroit.
Scholar Source Context
Document identity
localId
18514785
label
1975/04/30 - Meeting on Detroit (2)
core
doc
dtoType
document
citationUrl
pageCount
1
Source metadata
id
18514785
sourceUrl
contentType
document
title
1975/04/30 - Meeting on Detroit (2)
description
This file contains published reports on a urban economic revitalization plan for Detroit.
citationUrl
collections
James M. Cannon Files (Ford Administration)
James Cannon's Meetings Files
subjects
Urban policy
iiifBase
thumbnailUrl
largeImageUrl
imageCount
1
hasImages
yes
source
import
hasTranscription
no
Source extras
naId
18514785
coverageEndDate
logicalDate
1975-04-30
month
4
year
1975
coverageStartDate
logicalDate
1975-04-01
month
4
year
1975
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
url
mediaId
008195d670475dfe
ocrText
The original documents are located in Box 44, folder "1975/04/30 - Meeting on Detroit (2)"
of the James M. Cannon Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 44 of the James M. Cannon Papers at the Gerald R. Ford Presidential Library
A
"
-
.....
:
11118
1
⑉⑈⑈
11111
visis
cycill
0888
1553
MOVING DETROIT FORWARD
A Plan For Urban Economic Revitalization
COLEMAN A. YOUNG, MAYOR
APRIL, 1975
MOVING DETROIT FORWARD
A Plan For Urban Economic Revitalization
Colemn 6.4mg
Mayor
Detroit, Michigan
April, 1975
MOVING DETROIT FORWARD
A PLAN FOR URBAN ECONOMIC REVITALIZATION
TABLE OF CONTENTS
TITLES
PAGE No.
I
INTRODUCTION
1
II
PROGRAMS FOR REVITALIZATION
EMPLOYMENT PROGRAM FOR REVITALIZATION
6
MANPOWER RETRAINING SERVICES FOR THE.
STRUCTURALLY UNEMPLOYED
9
HEALTH CARE SERVICES
10
SCHOOLS'
11
YOUTH SERVICES
12
TRAINEE POLICE OFFICERS
13
PARKS AND RECREATION ACTIVITY
14
EXPANSION OF PUBLIC LIBRARY SERVICES
15
HOUSING CODE INSPECTION
16
ENVIRONMENTAL BEAUTIFICATION
17
COMMUNITY AGENCIES AND ORGANIZATIONS
18
PROJECT JOB TITLES
19
INDUSTRIAL PROGRAM FOR REVITALIZATION
20
RIVERFRONT DEVELOPMENT
22
INDUSTRIAL CORRIDOR DEVELOPMENT
24
SYSTEM OF INDUSTRIAL PARKS
27
RECYCLING OF EXISTING INDUSTRIAL PLANTS
29
MECHANISM FOR INCUBATING INDUSTRIES
31
EXPANSION OF CITY AIRPORT
33
DETROIT MEDICAL CENTER
35
DETROIT GENERAL HOSPITAL
37
WATER MAIN AND SEWER RENOVATION
39
RESOURCE RECOVERY SYSTEM
41
COMMERCIAL PROGRAM FOR REVITALIZATION
42
DOWNTOWN DEVELOPMENT AND IMPROVEMENT
44
DOWNTOWN SHOPPING CENTER
47
NEW COURTHOUSE
48
NEW WAYNE COUNTY JAIL
49
REDEVELOPMENT OF COMMERCIAL STRIPS
51
NEIGHBORHOOD SHOPPING CENTERS
53
DEMOLITION OF OBSOLETE COMMERCIAL BUILDGS,
56
TABLE OF CONTENTS
TITLES
PAGE No.
HOUSING PROGRAM FOR REVITALIZATION
57
REAL ESTATE ACTIVITIES TO PROMOTE DEVELOPMENT
59
RIVERFRONT SEAWALL PROJECT
61
NEW HOUSING DEVELOPMENT
63
NEW HOUSING DEVELOPMENT: COMMITTED SITES
65
NEW HOUSING DEVELOPMENT: PROPOSED SITES
68
RENTAL PROGRAM FOR H.U.D. OWNED HOMES
72
SINGLE FAMILY HOUSING REHABILITATION
74
REHABILITATION ASSISTANCE PROGRAM
76
NEIGHBORHOOD SECURITY ASSISTANCE
78
DEMOLITION OF DANGEROUS BUILDINGS ON A
NEIGHBORHOOD BASIS
79
TRANSPORTATION PROGRAM FOR REVITALIZATION
80
RAPID TRANSIT SYSTEM: PHASE I
82
CBD PEOPLE MOVER
85
BUS RAPID TRANSIT
88
COMMUTER RAIL
90
PUBLIC SAFETY PROGRAM FOR REVITALIZATION
92
CENTRAL PUBLIC SAFETY HEADQUARTERS
95
DETROIT POLICE DEPARTMENT PRECINCT STATIONS
96
COMBINED AGENCY NARCOTICS ENFORCEMENT
97
COMMUNICATIONS EQUIPMENT UPDATE
98
SECURITY SYSTEMS DETAIL
99
MINI STATION COMMUNITY SERVICES OFFICERS
100
MINI STATION CO-OP EMPLOYMENT
101
SPECIAL SECURITY FORCE
102
YOUTH HOME: JUVENILE COURT EXPANSION
103
III
PROGRAM COST SUMMARY STATEMENT
105
IV
LEGISLATIVE PROPOSALS
STATE LEGISLATIVE PROPOSALS
118
FEDERAL LEGISLATIVE PROPOSALS
119
V ADDENDUM
METHODOLOGY: COMPUTING IMPACT STATEMENTS
125
DETROIT THE CITY
126
MUNICIPAL FINANCING
128
INTRODUCTION
I
1
1
I
I
-
Int
coto
Thoose
igass
⑉⑈
Otheel
"IM
⑉⑉
IIIII
#
30000
113
53530
E
INTRODUCTION
DETROIT Is A SPECIAL KIND OF TOWN
Detroit, one of the nation's oldest cities, the country's
industrial heart, has also developed into the world's auto-
motive headquarters, America's second largest import-export
center, and the fifth most populous city in the U.S.A.
As a result of the growth of the automobile industry and of
advanced technology, Detroit has experienced boom times; and,
we have built our expectations to strive for affluence. In
the process of striving for affluence, Detroit has retained
its awareness of those who have not enjoyed and participated
in the "American Dream".
United Foundation began in Detroit. And, yearly, Detroiters
set records for giving.
It was in Detroit in 1968, that the first urban coalition,
comprised of representatives of business, labor and minority
groups, forged the organizational bonds to facilitate the
full participation of racial and ethnic minorities in the
City's economic and social mainstream. Nationwide, urban
coalitions following the Detroit model have developed to ad-
dress the problems of those who have historically suffered
from America's inbred racism.
A SPECIAL KIND OF TOWN
DETROIT
Even though Detroit is in the midst of depression, through
local initiative and utilizing its own resources, Detroit has
begun the task of revitalization. Phase I of Detroit Renais-
sance Center, a 600 million dollar hotel and office complex
on the riverfront, is nearing completion. Elmwood III, a
new residential community, a "new town in town", is being
developed on the rubble of what was once known as "Black
Bottom"; and a major electrical supplier, Gale Electrical
Company, has just announced plans to relocate within an
industrial park fifteen minutes from downtown Detroit.
A conservative estimate suggests that 1.2 billion dollars
has been committed, in non-city controlled funds, towards
the revitalization of Detroit by the commercial and indus-
trial sectors. In short, a solid economic base exists
within the City buttressed by the strength, commitment
and resiliency of its people.
YES, DETROIT IS A SPECIAL KIND OF TOWN
Detroit's unique growth and aging process has left a rich and
varied culture. But, it has also impaired the ability of the
City to respond fully to pressing problems, especially in areas
of housing, industrial and commercial development, transporta-
tion and crime.
Sixty per cent of Detroit's housing was built prior to 1939.
Today, much of it is substandard. In addition, approximately
20,000 HUD properties (vandalized homes and vacant lots) con-
stituting one-third of the Department of Housing and Urban
Development's national inventory, are in Detroit. Additionally,
800 properties revert to HUD ownership on a monthly basis.
Major manufacturing industries have moved from the city in
search of higher revenues, reduced costs and new efficiencies
by the utilization of single storied plants. The out-
migration has resulted in the loss of jobs in Detroit and the
erosion of the city's tax base.
Commercial strips burdened with deterioration and subsidized
competition from the newly developed suburban shopping centers
have caused intensified population shifts, stagnation of
neighborhoods, and loss of personal and public revenues.
Crime has had an immeasurable effect upon the attitudes of the
city's residents and business establishments. Not only have
homicides, robberies and rapes increased, but mounting callous-
ness feeds the paranoia of non-safety. Crime's causes are as
numerous as the social theorists. The fact remains that with-
out substantial resources to hire and train minority personnel,
to implement effective crime prevention programs, and to
modify police-community attitudes, Detroit can only hope to
maintain a holding pattern and thereby continue to lose
residents and revenues.
Inadequate transportation alternatives have heightened the
dependence on the automobile. As a result, pernicious
effects on the environment, in terms of land use and pollu-
tion, have occurred. In addition, the effects of the energy
crisis have nearly crippled the backbone of Detroit's local
economy: the auto industry.
The auto industry has suffered visibly and dramatically from
the current economic slump; and its hardships have had
disastrous effects on the national and local economy. Massive
layoffs have pushed the Detroit metropolitan area unemployment
rate to 12.4 per cent. Today, more than 136,500 Detroiters,
(2)
23 per cent of the labor force, are jobless. And the rate among
inner city workers, primarily young Black and Latino males, has
surpassed 50 per cent.
SURVIVAL is now the issue. Will the City continue to suffer a
loss of population; a flight of industry; a diminishing tax
base; a concentration of the problems of the poor, the elderly,
the dispossessed; and an unemployment rate greater than twice
the national average? Or will decisive action by harnessing
governmental resources, the commitment and expertise of the
public and private sectors, counter the stagnation and thereby
MOVE DETROIT FORWARD,
The challenge facing the Federal government is how best to
accept, to strengthen and to encourage the initiatives of
municipalities in their efforts to combat the unemployment,
economic and energy crisis with which they are confronted. The
extent of the problems may vary, but the problems detailed in
Detroit are symptomatic of the problems that exist in all of
America's major cities. Detroit has served as the nation's
early warning system on the state of the U. S. cities; and, it
has been in the forefront in developing viable alternatives to
complex problems, and changing needs.
In the past, Detroit has demonstrated its ability to accommodate
and adapt to changing needs and demands. The national need for
armaments and support equipment during World War II, resulted
in the successful retooling of the automotive industry, a
diversification within the local economy, and branded Detroit
as the "arsenal for democracy". Adaptive capabilities and the
willingness to retool to meet contingencies remains a strength
of the City and its people.
Improvements of the quality of life through full employment, and,
the diversification of economic and industrial activity are
primary objectives that all municipalities strive to attain.
Economic conditions aggravated by the uncertainties of energy
sources, have bankrupted the abilities of cities to effectively
respond and to meet their primary objectives. The Federal
government must intercede with committed decisiveness to
provide the massive resources necessary to sustain its greatest
asset--the nation's cities. Detroit's two fold Plan is a
pragmatic approach addressing the City's depression level un-
employment crisis and providing a means to revitalize the City
over a sustained period of time.
A CITY REVITALIZED
A city is both a service institution and a mix of industrial and
commercial activity. The industrial, commercial, housing, trans-
portation, and public works programs proposed herein are designed
(3)
for maximum impact on employment; the generation of public and
private revenues; and the enhancement and supplementation of
activities of the business sector. To maximize the effective-
ness of the proposed project activities, the private sector
will assist the City in the development of detailed implementa-
tion plans, and the development of appropriate administrative
and managerial capabilities. A combination of: direct grants-
in-aids; interest free loans; guarantees of debt issued; and
low interest bearing loans; of the magnitude outlined, to
finance the development activities will provide the necessary
stimuli for sustained growth and revitalization.
Detroit proposes that the Federal government commit to the City
2.5 billion dollars for the implementation of activities out-
lined in this Plan. This immediate dollar commitment will
serve to provide the necessary economic stimuli to achieve:
greater economic-industrial mix; full employment (at a minimum,
unemployment on a level commensurate with the national average) ;
and the improvement of the quality of life of the urban Detroit
resident.
IMMEDIATE NEEDS
To meet the immediate, depression level unemployment crisis,
Detroit proposes 555.1 million dollars in Federal allocations
for public service employment. We propose to provide meaning-
ful jobs at the prevailing wage for 10 to 15 per cent of those
currently unemployed in Detroit. We propose to provide employ-
ment retraining services for the structurally unemployed and the
chronically underemployed to maintain a labor force sufficiently
skilled and varied to attract new industry and to encourage the
expansion of the local economy.
DETROIT Is A SPECIAL KIND OF TOWN
Within these pages we outline those aspects that make Detroit
unique today:
AN UNEMPLOYMENT RATE GREATER THAN 18 PER CENT; THE SITE OF ONE
THIRD OF THE DEPARTMENT OF H.U.D.'s NATIONAL INVENTORY IN
BLIGHTED AND VACANT PROPERTIES; THE ONLY CITY WITH THE HIGHEST
DENSITY OF POPULATION THAT DOES NOT HAVE A RAPID TRANSIT SYSTEM;
THE AUTOMOTIVE CENTER OF THE COUNTRY WHOSE FINANCIAL CRISIS, AS
A RESULT OF INFLATION, RECESSION AND FEDERAL REGULATORY REQUIRE-
MENTS, HAS RESULTED IN MASSIVE LAYOFFS WITHIN THE INDUSTRY AND
IN RELATED INDUSTRIES RELIANT UPON AUTOMOTIVE SPENDING DECISIONS;
(4)
AND, DESPITE THE ECONOMIC DEPRESSION IN THE CITY, THE PRIVATE
SECTOR HAS DEMONSTRATED ITS CONFIDENCE BY THE COMMITMENT OF
1.2 BILLION DOLLARS TOWARDS THE REBUILDING OF DETROIT.
Private efforts alone are insufficient to counter the severity
of the problems that Detroit faces. The municipal coffers are
in deficit and the City is faced with insufficient resources to
address its crisis. Previous efforts, through the various cate-
gorical grants and revenue sharing, although well intended have
not been and are not now sufficient to meet Detroit's growing
needs.
Business and Labor are committed to strengthening and rebuilding
Detroit. However, the massive resources to carry out the commit-
ment are not internally present. Detroit can look only to the
Federal government for decisive action. Therefore, in coopera-
tion with the various interests in the City, and in partnership
with Labor and Industry, Detroit proposes its PLAN FOR URBAN
ECONOMIC REVITALIZATION.
(5)
Employment Program For Revitalization
Thesle
"""
⑉
⑉⑉
In
:
30ss0
"
EMPLOYMENT PROGRAM FOR REVITALIZATION
Detroit became one of the largest metropolitan areas in the
United States because of the economic strength of the auto-
mobile industry. High wage factory jobs, requiring little
education and relatively low level skills, attracted many
people. The impact of declining and changing demands on the
automobile industry, brought on by the current economic
recession, has resulted in the permanent layoff and economic
dislocation of many Detroiters. The unemployed automotive
workers, those affected from the secondary impacts of
automotive layoffs, together with the "normally" large numbers
of structurally unemployed have boosted the unemployment rate
to 23.6 per cent for February, 1975. More than 136,500 Detroit
residents, of a total labor force of 567,000, are jobless.
Approximately one out of every four Detroit workers are out of
work.
The drastic drops in auto production, for the 4th quarter of
1974, North American production was 38% below the same period
in 1973, have had detrimental effects on other areas of the
local economy. Supplier firms have felt the decline in demand
as have selected firms that have built a dependency upon the
auto industry's capital spending decisions. Total manufacturing
declined almost six percentage points from 1973 levels. Retail
sales, hovering at 1973 levels, are anticipating only modest
growth. Residential construction has ceased as a result of
high interest and mortgage rates, leaving the building industry
in turmoil, and its workers at unemployment rates greater than
the national average.
Two significant long-run employment trends for the Detroit
area have been identified. One trend relates directly to the
automobile industry, and the other relates to a movement
toward an economy that is more heavily service oriented.
Despite the fact that the automobile industry has been in a
position of relative decline, it has not diminished in its
relative importance to Detroit. Rather than declining, if we
examine pre-recession statistics, the number of persons
employed in the automobile industry has increased from 1960
to 1970. Employment in the related areas of fabricated
metals and machinery manufacturing had also remained at
traditionally high levels. Within the motor vehicle manu-
facturing industry, however, an occupational evolution is
occurring. The change reflects more white collar employment
and a decline in blue collar employment.
In the blue collar group, growth for the major occupational
areas of craftsmen and operatives has been minimal. Crafts-
men increased by only one percent during the 1960-1970
period; operatives increased by seven percent. The industry's
white collar employment, however, grew at an 18 percent
overall rate for the same period. Within the group,
professional and technical workers increased at a rate of
(6)
35 per cent; managers and administrators reflected an increase
of 27 per cent. These category increases can be attributed to
the growth of research and development-activities in response
to safety and environmental considerations, and the further
expansion of activities in world markets. The increased
utilization of computers has affected the clerical group,
resulting in modest employment generation for clerical workers.
The second significant employment trend is taking place in the
non-manufacturing sector. Large employment gains have occurred
in the categories of wholesale, retail, finance, real estate,
government and services. Within services, the greatest employ-
ment growth is evidenced in educational, medical and miscellaneous
professional services. Growth demonstrated in the service sector
corresponds to the "economy based on service" trend that is
developing in major urban centers throughout the country.
The current flux in the local economy is expected to continue
for sometime. During this transition period, the shift from
a one industry heavy manufacturing dominated economy to a
more diversified economy based on growth in the non-manufacturing
and service sectors, continued high unemployment rates are
expected. Large numbers of workers of the manufacturing sector
will find that their skills are obsolete; while at the same
time, the demand for workers with non-manufacturing and
service oriented skill will increase. Detroit's high con-
centration of blue collar workers, 45.4 per cent, with manu-
facturing skills will suffer most acutely from these ongoing
changes. The fact that 50 per cent of the city's population
is minority, and a majority of its minority population is
employed within the manufacturing sector in blue collar jobs,
serves to exacerbate the seriousness of the short and long
term employment trends.
Through its economic revitalization plan, Detroit proposes to
address the employment crisis for the immediate, short term and
long term. The emphasis throughout the plan is on the creation
of developmental opportunities that strengthen the city's ability
to plan for and encourage diversification of economic growth.
Employment opportunities generated by the revitalization
programs are sufficiently varied to provide for the short term
absorption of the non-skilled and semi-skilled, who are now
dislocated as a result of increased technologies and a changing
economy.
The "Manpower Retraining Services for the Structurally Unemployed
Program" is a structured effort to develop new skills, to
modify and to alter existing skills. It is an effort on a
massive scale, involving 30,000 persons, to isolate and to
retrain a portion of the present labor force in anticipation
and preparation of new industry needs. The benefits derived
will allow the city to attract new industry (chemicals; food
processing; health care delivery; research technologies, etc.)
by having a trained labor force in place; providing meaningful
employment; and generating private and public revenues.
(7)
In addition, more than 100,000 employment opportunities are
detailed within the various program areas. With the removal
of several existing Federal regulatory constraints, even
greater benefits can be derived. We recommend the elimination
of the $10,000 annual salary rate ceiling attached to Public
Service Employment Programs; the elimination of the
prohibition against the use of public service employment funds
for material and equipment in order that employment opport-
unities can be created in the public works area; and the
elimination of the stringent restrictions on the participation
of the private-for-profit sector, in order that their involve-
ment and expertise may be utilized, particularly in the
construction area.
To address the crisis of Detroit's 23 per cent unemployed, a
severity that translates into one out of every four workers
out of work, we propose the immediate Federal financing of an
additional 10,600 public service jobs in the selected areas of:
Health Care Services, Schools, Youth Services, Public Safety,
Recreation, Housing, Environmental Beautification, and
Community Agencies and Organizations. In the following pages,
proposed project activities are outlined.
(8)
EMPLOYMENT PROGRAM FOR REVITALIZATION: PROGRAM COST SUMMARY
IMMEDIATE PUBLIC SERVICE JOBS AND RETRAINING ACTIVITIES
TOTAL COST*
TRAINING SLOTS/
PROJECT
(IN MILLIONS)
JOBS GENERATED
1. Manpower Retraining Services for the
Structurally Unemployed
$439.35
30,000**
2. Health Care Service
15.0
1,500
3. Housing Code Inspection
5.0
500
4. Expansion of Library Services
4.0
400
5. Parks and Recreation Activity
5.0
500
6.
Youth Services
5.0
500
(8A)
7.
Trainee Police Officer*
19.75
1,000
8.
Public Schools
37.0
3,700
9. Community Agencies and Organizations
10.0
1,000
10. Environmental Beautification
15.0
1,500
Total
$555.10
40,600
*NOTE: Total amount for three-year funding commitment =$59. 26 million.
**NOTE: 30,000 designated re-training slots
MANPOWER RETRAINING SERVICES FOR THE STRUCTURALLY UNEMPLOYED
PROJECT DESCRIPTION
The City, through its Manpower Department will administer the
planning and retraining services to address the question of
Detroit's structurally unemployed (as a result of shifts from
labor to capital intensive production in the manufacturing
sector, increase in research and development activities and
growth of the service sector, skills developed in response
to the automotive industry's needs are now becoming obsolete).
The purpose of this program is to: (1) identify by number and
category persons in the labor force with obsolete, or soon to
be obsolete skills (2) identify "new" industry skills required
in the local ecomony (3) through contractural services with area
educational and training institutions provide skill and
educational training to alter, modify, raise participant skill
levels, and/or develop new skills reflective of the needs of
the changing local economy.
RESOURCES REQUIRED
Training Costs: $2,500 per person X 30,000
$ 75
Million
Wage & Fringe Benefit Subsidy:
360
Million
Administration 10%
4.35 Million
TOTAl
$ 439.35 Million
IMPACT STATEMENT
1. Jobs 30,000 training positions
2. Personal Income Generated
$ 309.6 Million
3. Taxes
Local Income @ 2%
$
619,950
State Income @ 3.9%
$ 1.207 Million
*"New" industry areas could include: chemicals; pharmaceuticals;
food processing; health care delivery; research technologies.
(9)
HEALTH CARE SERVICES
PROJECT DESCRIPTION
This project is designed to provide the needed non-professional
assistance in the field of health care services. Individuals
employed in this project will perform various functions, in-
cluding the following: Identification of lead paint hazards
in residential homes, assist individuals in the resolution of
family and other social problems, provide nutritional
information to disadvantaged families, provide hearing and
vision test for all public school students.
RESOURCES REQUIRED
Wages & Fringe Benefits 93%
$ 13,950,000
Administrative Cost
- 5%
750,000
Material Cost
- 2%
300,000
TOTAL:
$ 15 Million
IMPACT STATEMENT
1. Jobs short term (12 mos.) 1,500
2. Personal Income Generated:
12,495,000
3. Taxes
Local Income @ 2%
$ 249,900
State Income @ 3.9%
$ 487,305
4. Additional jobs and revenues will be generated as a
result of the multiplier effect.
(10)
SCHOOLS
PROJECT DESCRIPTION
This project will provide for additional assistance to
teachers in the classroom, as well as provide administrative
support. It will provide for additional security personnel
to help maintain public safety and additional custodial and
labor personnel to maintain school buildings and grounds.
RESOURCES REQUIRED
Wages & Fringe Benefits 93%
$ 34,410,000
Administrative Cost
- 5%
1,850,000
Material Cost
- 2%
740,000
TOTAL:
$ 37 Million
IMPACT STATEMENT
1. Jobs short term (12 mos.) 3,700
2. Personal Income Generated:
$ 30,821,000
3. Taxes
Local Income @ 2%
$ 616,420
State Income @ 3.9%
$ 1,202,019
4. Additional jobs and revenues will be generated as a
result of the multiplier effect.
(11)
YOUTH SERVICES
PROJECT DESCRIPTION
This is a comprehensive community service project designed
to provide Detroit youth with viable alternatives to anti-
social and/or destructive behavior.
The project will provide for referrals from the police,
school, and parents who have a need for the type of special
service offered under this project. Trained street workers
will act as liaisons between the youth, their parents,
school and the juvenile justice system.
RESOURCES REQUIRED
Wages & Fringe Benefits - - 93%
$ 4,650,000
Administrative Cost
- 5%
250,000
Material Cost
- 2%
100,000
TOTAL
$ 5 Million
IMPACT STATEMENT
1. Jobs short term (12 mos.) 500
2. Personal Income Generated:
$ 4,165,000
3. Taxes
Local Income @ 2%
$ 83,300
State Income @ 3.9%
$ 162,435
4. Additional jobs and revenues will be generated as a
result of the multiplier effect.
(12)
TRAINEE POLICE OFFICERS
PROG RAI DESCRIPTION
Under this project, Trainee Police Officers will be hired
by the Police Department and placed in precinct stations
and mini-police stations with responsibility for civilian
duties. The thrust of the recruiting drive will be aimed
toward the hiring of qualified minority applicants. The
trainees will be provided with training designed to improve
their English skills and knowledge of criminal law. They
will be phased into the Criminal Justice Institute on a
quarterly basis to begin regular police officer training.
The presence of Trainee Police Officers in the precinct
and mini-police stations should eventually result in the
release of a number of uniformed police officers for street
duty.
RESOURCES REQUIRED
Wages and Fringes - 93%
$18.370 million
Administrative Cost - 5%
.988 million
Material Cost - 2%
.395 million
Total
$19.753 million
Funding for 3.0 years
59.259 million
In PACT
1. Jobs - 1,000 for a period of 36 months
2. Personal Income Generated
$11 Million
3. Taxes
Local @ 2%
.220 Million
State @ 3.9%
.429 Million
4. Income Multiplier
300 jobs X $9,000 X 1 year
$2.7 Million
5. Employment Multiplier - 300 jobs X 1 year
*Refer to Public Safety Program for Revitalization
(13)
PARKS & RECREATION ACTIVITY
PROJECT DESCRIPTION
This project is designed to provide increased security,
improve the cleanliness and beautification of the city's
parks and develop or expand recreational programs in parks
located near residential areas.
RESOURCES REQUIRED
Wages & Fringe Benefits - 93%
$4,650,000
Administrative Cost
- 5%
250,000
Material Cost
- 2%
100,000
TOTAL
$ 5 Million
IMPACT STATEMENT
1. Jobs - short term (6 mos.) 500
2. Personal Income Generated:
$4,165,000
3. Taxes
Local Income @ 2%
$ 83,300
State Income @ 3.9%
$ 162,435
4. Additional jobs and revenues will be generated as a
result of the multiplier effect.
(14)
EXPANSION OF PUBLIC LIBRARY SERVICES
PROJECT DESCRIPTION
This project is designed to assist in the process of
expanding library services beyond those ordinarily provided
by the library. Under this project the library would be
able to extend its operating hours from 54 hours to
approximately 75 hours per week. Local residents will be
able to use the library as a ready source of information on
almost any subject. Community Aids will be employed to
disseminate information of current interest to local
residents.
RESOURCES REQUIRED
Wages & Fringe Benefits - 93%
$ 3, 720,000
Administrative Cost
- 5%
200,000
Material Cost
- 2%
80,000
TOTAL
$ 4 Million
IMPACT STATEMENT
1. Jobs short term (12 mos.) 400
2. Personal Income Generated:
$ 3,332,000
3. Taxes
Local Income @ 2%
$ 66,640
State Income @3.9%
$ 129,948
4. Additional jobs and revenues will be generated as a
result of the multiplier effect.
(15)
HOUSING CODE INSPECTION
PROJECT DESCRIPTION
This project is designed to help maintain the quality of
residential housing in Detroit. Individuals will be trained
as Housing Inspectors. They will identify code violations
and instruct property owners of necessary corrective action.
RESOURES REQUIRED
Wages & Fringe Benefits - 93%
$ 4,650,000
Administrative Cost
- 5%
250,000
Material Cost
- 2%
100,000
TOTAL
$ 5 Million
IMPACT STATEMENT
1. Jobs short term (12 mos.) 500
2. Personal Income Generated:
$ 4,165,000
3. Taxes
Local Income @ 2%
$ 83,300
State Income @ 3.9%
$ 162,435
4. Additional jobs and revenues will be generated as a
result of the multiplier effect.
(16)
ENVIRONMENTAL BEAUTIFICATION
PROJECT DESCRIPTION
For the seven warm weather months, April through October, a
variety of Environmental Beautification projects will be under-
taken by persons employed by this project: Street and alley
clean up; clean up of vacant lots; removal of diseased trees;
planting of new trees; general grounds clean up and maintenance
of public housing areas and other public facilities.
RESOURCES REQUIRED
Wages & Fringe Benefits - 93%
$ 13,950,000.
Administrative Cost
- 5%
750,000.
Material Cost
- 2%
300,000.
TOTAL: $15.0 million
IMPACT STATEMENT
1. JOBS
Short-term (7 months):
1,500
2. PERSONAL INCOME GENERATED annually:
$12.495 million
3. TAXES
Local Income @ 2%
$ 249,000.
State Income @ 3.9%
$ 487,000.
4. Additional jobs and revenues will be generated as a result
of the multiplier effect.
(17)
COMMUNITY AGENCIES AND ORGANIZATIONS
PROJECT DESCRIPTION
This project is designed to provide increased social
services. It will provide for the employment of
persons as project workers, case workers, community
organizers, in community based agencies or organizations
which lack the funds to employ such personnel.
RESOURCES REQUIRED
Wages & Fringe Benefits - 93%
$ 9,300,000
Administrative Cost
- 5%
500,000
Material Cost
- 2%
200,000
TOTAL
$ 10 Million
IMPACT STATEMENT
1. Jobs - short term (12 mos.) 1,000
2. Personal Income Generated:
$ 8,330,000
3. Taxes
Local Income @ 2%
$ 166,600
State Income @ 3.9%
$ 324,870
4. Additional jobs and revenues will be generated as a
result of the multiplier effect.
(18)
PROJECT JOB TITLES
PROJECT
POTENTIAL JOB CLASSIFICATION
HEALTH CARE SERVICES
Clerical
Community Health Assistant
Hearing & Vision Tester
(Public School)
Institutional Attendant (Bldg.
Attendant in hospital)
Medical Attendant
Nutrition Aid
Social Service Aid
HOUSING CODE INSPECTION
Housing Inspection Aid
LIBRARY
Clerical
Librarian
Community Aid
PARKS & RECREATION
Laborers
Park Security Officer
Recreation Aid
Tree Artisan Helper
YOUTH SERVICES
On-Site Unit Manager
Supervising Streetworker
Streetworker
Ancillary Service Worker
TRAINEE POLICE
Trainee Police Officer
PUBLIC SCHOOLS
Clerical
Custodian
Laborer
School Service Assistant (Teacher's
Aid)
Security Intern
COMMUNITY AGENCIES
Clerical
& ORGANIZATIONS
Case Workers
Community Organizer
Community Project Worker
Maintenance
ENVIRONMENTAL
Laborer
BEAUTIFICATION
Tree Artisan
(19)
Industrial Program For Revitalization
I
I
I
sole
739680
sgess
⑉
883653
crow
In
:
30000
on
53868
I
-
INDUSTRIAL PROGRAMS FOR REVITALIZATION
Detroit has suffered continued hardships from the changes
associated with industrial development since the end of
World War II. At that time, industries began to relocate
to rural areas of the south and west. The dispersal of
firms is explained in part by the desire of industry to
increase revenue and reduce costs by moving to areas
where land, labor and other costs of production were far
lower than in the high wage urban north. In addition, the
increasing age of structures coupled with the industrial
obsolescence associated with multi-storied industrial
buildings forced industries to seek other locations suit-
able for construction of large plants. The new locations
were often out of the Detroit area since the land required
for new structures could not be obtained easily and cheaply
in the City.
Industries which left Detroit include some of the largest
corporations in the world. This trend has slowed consider-
ably in recent years. The impact of the loss of industry
is difficult to measure, but the number of jobs lost and
the erosion of tax base has been greater on Detroit than
any other American city.
Many manufacturing facilities remaining in Detroit are
faced with the same economic pressures which have caused
other industries to leave. Facilities are even older and
more obsolete now compared to modern plans elsewhere. In
addition, these plants are often located in areas of the
City where physical and economic degeneration affects not
only profits but the safety of workers. These problems
are compounded by the large number of monetary incentives
offered by states that actively recruit industry out of
large northern cities. It has been only recently that
Michigan has provided similar incentive legislation as a
means of self-defense.
Fortunately, Detroit still has a strong economic base.
That is attributable not only to historic trends, but to
the natural advantages offered by the City. In spite of
the current economic downturn, this strength is manifested
today in a number of ways. Growth is clearly visible in
the construction of the Renaissance Center and the expan-
sion of Detroit's medical, university and wholesale distri-
bution centers. In addition, heavy industry has recently
shown renewed interest in the City by investing in new
equipment and renovating existing facilities.
Still, the problem of aging structures, deteriorating
industrial corridors, and lack of suitable space for
development remains.
(20)
In order to solve these problems, which are so typical of
northern industrial cities, and at the same time take
advantage of Detroit's unique economic strength, we propose
actions in several categories, which are detailed in the
following pages. Among the proposed actions are the develop-
ment of industrial corridors and parks, the recycling of old
major industrial plants, and the creation of incubator
industries, to assist in the growth of Detroit's multi-
facet small industry base. Special emphasis will be placed
on attracting industries of the future, particularly those
associated with health and social services.
Many of the proposed actions are oriented towards the
assembly of land parcels of sufficient size to be utilized
by both manufacturing and service industries. Some of the
proposed actions have been independently evolved at differ-
ent times in different areas. For example, industrial parks
by themselves are not a new concept, nor is the expansion
of riverfront industry. However, Detroit has the opportunity
to combine several aspects of industrial development tech-
niques in a manner which will take advantage of each of
those aspects to yield a result greater than any one tech-
nique could achieve singly. The establishment of industrial
parks in Detroit, for example, could include the expansion
of existing industrial corridors, the recycling of existing
industrial facilities and the clearing of land for new
industries to move into the City. Those new industries
would be attracted by the growth and redevelopment of an
existing industry into new facilities. Detroit is so
situated that it can provide opportunities to both present
industries and to formulate new industries.
Detroit is unique in being able to take advantage of both
its natural resources on the riverfront, the availability
of land, and a substantially trained labor force. This
combination of ingredients goes a long way to insure the
success of industrial development efforts in a joint venture
between the City, State and the Federal Government. The
efforts proposed here will not only strenghten present
industrial activities but will expand employment, investment
in capital facilities, and tax returns to all levels of
government.
(21)
EMPLOYMENT OPPORTUNITIES GENERATED: INDUSTRIAL PROGRAMS FOR REVITALIZATION
COST
PROJECT
(IN MILLIONS)
SHORT TERM
LONG TERM
TOTAL
1. Riverfront Development
$ 9.0
100
5,000
5,100
2. Industrial Corridor Development
17.3
100
9,000
9,100
3. System of Industrial Parks
36.0
2,000
8,000
10,000
4. Recycling of Existing Industrial
Plants
115.0
2,500
10,000
12,500
5. Mechanism for Incubating Ind.
92.0
1,200
5,000
6,200
(21A)
6. Expansion of City Airport
27.1
100
50
150
7. Detroit Medical Center
80.0
1,000
1,500
2,500
8. Detroit General Hospital
80.0
1,000
1,500
2,500
9. Water Main and Sewer Renovation
29.0
76
150
226
10. Resource Recovery System
40.6
200
-----
200
$526.0
8,276
40,200
48,476
RIVERFRONT DEVELOPMENT
PROJECT DESCRIPTION
Detroit's riverfront is a crucial and rare source. It is
ideally suited for housing, parks, institutional develop-
ment and industry. Presently, it is punctuated by large
numbers of semi-efficient industrial plants and a large
number of obsolete warehouses and rail storage yards. The
economic value is greater than its present level of utiliza-
tion allows to be realized. This project proposes to maxi-
mize the economic and developmental potential of the land
through: land acquisition; relocation of existing industries;
demolition of vacated structures; preparation of sites for
new developers; creation of a Riverfront Park; establish a
foreign trade zone; construction of foreign trade zone
industrial facility; housing projects (see Housing Programs
for Revitalization)
The riverfront land borders on an inner-coastal waterway,
a location which carries additional opportunities for in-
dustrial development which are unique in the central U.S.A.
Because it is a water and rail entry point into Canada, and
has direct access to the inner-coastal system, the inter-
national rail and highway system, a foreign trade zone is
proposed. Some of Detroit's larger corporations are located
on the riverfront; their expansion needs can be accommodated
through the redesign of present land use strategies and can
be made available if the City acquires additional land.
ACTIONS REQUIRED
1. Obtain $8 million from appropriate Federal and State
agencies for acquisition of riverfront land, relocation
of existing industries to more suitable industrial
areas and the demolition of vacated structures in order
to reuse land industrially.
2. Obtain $1 million from Federal and State agencies to
provide supportive facilities (such as recreational)
that would make land more attractive for industrial
reuse.
3. Identify potential users for an industrial processing
facility in a foreign trade zone and establish such a
zone on acquired land.
4. Obtain a guarantee of $4 million from State and Federal
levels for construction of a suitable foreign trade
zone industrial facility.
5. Obtain $7 million from State and Federal Governments
for construction of a seawall and necessary land fill
to reduce the cost of riverfront development activities
(See Housing Programs for Revitalization)
6. Assure the assignment of Federal contracts through the
appropriate Great Lakes Marine Associations in order to
(22)
increase port traffic to the Great Lakes area and
Detroit ports.
7. Obtain $2 million from the Huron-Clinton Metropolitan
Authority for a new Riverfront Park.
8. Obtain $2 million from the State Department of Natural
Resources Waterways Division for new marinas.
9. Transfer the port renewal project to City of Detroit
ownership and remove land use restrictions.
RESOURCES REQUIRED
Capital:
*Property Acquisition (State
recreational funds) :
$ 2 million
**Construction:
7 million
TOTAL:
$ 9 million
*$8 million in property acquisition for reuse of indus-
trial land accounted for in plant recycling program.
**$7 million in construction included in Riverfront
Landfill Project.
IMPACT STATEMENT
1. JOBS GENERATED
Short-term construction and
engineering jobs
100
Long-term industrial retained or
new jobs
5,000
2. PERSONAL INCOME GENERATED annually:
$ 50 million
3. TAXES
Local Income:
$ 800,000
State Income:
$ 1.6 million
Real & Personal Property:
$ 15 million
4. Additional employment and income is generated as a
result of the multiplier effect of this project.
(23)
INDUSTRIAL CORRIDOR DEVELOPMENT
PROJECT DESCRIPTION
There are hundreds of basically sound and readily useable
structures available at low cost throughout industrial
corridors. These corridors contain large amounts of vacant
land, presently in irregular forms of assembly. The estab-
lishment of industrial parks throughout the City can take
advantage of both of these conditions. This requires the
acquisition of land for the development of large new
industries in the City, while at the same time improving
the utility service structure, security, and service
systems to the existing industrial corridor. These indus-
trial corridors are ideally suited to expansion into an
industrial park concept.
ACTIONS REQUIRED
I. Land Assembly
1. Create an industrial development system of funding
and incentives for industrial expansion.
2. Acquire and remove the blighted, abandoned resi-
dential structures adjacent to industrial corridors.
3. Provide for the concept of "public condemnation"
for industrial development.
4. Obtain Federal funding for building demolition
in cities to free up land for industrial expansion,
making cities competitive with the suburbs in their
ability to attract and retain industry.
5. Establish an information system which would store
data on current cleared land. This data could be
available at any time and be used to identify
patterns for future site development.
II. Utility Infrastructure Expansion
Either:
1. Have costs of infrastructure development borne by
firms requesting service, but provide incentive in
the form of State tax write-off to be authorized
by new state legislation.
Or:
2. Finance infrastructure development from municipal
capital improvement budget allocation made possible
through bond guarantees by the State of Federal
government.
(24)
III. Crime and Security
1. Install alarm systems which connect the establish-
ment to the local police precinct immediately
upon illegal entry. Federal grant money for a
study to tie such a system into LEIN*.
2. Alter the physical layout of existing corridors
to restrict access by unauthorized public.
Access could be limited by closing or rerouting
streets, providing wide greenbelts and neighbor-
hood parks scattered around the perimeter of
industrial corridors.
3. Other cleared space could be attractively fenced
and turned into an outside storage center, with
portions leased to area manufacturers.
4. Obtain funds for traffic rerouting and street
closing from the State Highway Authority.
5. Obtain and utilize EDA and HUD Block Grant monies
for acquisition and clearance of adjacent land
for improvements designed for the strengthened
viability of industrial areas.
RESOURCES REQUIRED
Capital:
*Property Acquisition:
$10 million
Construction
7.3 million
TOTAL
$17.3 million
*$2 million of property acquisition cost will
eventually be recovered through the resale of land.
IMPACT STATEMENT
These concepts will suggest a new orientation toward indus-
trial and commercial development in central cities and will
set the basic groundwork for actual location and expansion
of industry treated in other sections. As a consequence,
it is difficult to state the impact of this program in pre-
cise numerical terms; the figures below should therefore
be considered very approximate.
1.
JOBS
Short-term construction and
engineering:
100
Long-term Industrial retained
or new:
9,000
*LEIN - Law Enforcement Information Network
(25)
2.
PERSONAL INCOME GENERATED annually: $ 110 million
3.
TAXES
Local Income:
$
1.8 million
State Income:
$
4 million
Real & Personal Property:
$ 21 million
4.
Increases of several thousand jobs and several millions
of dollars can be anticipated as a result of the
multiplier effect.
(26)
ESTABLISH A SYSTEM OF INDUSTRIAL PARKS THROUGHOUT THE CITY
PROJECT DESCRIPTION
This will be an effort to acquire 400 acres of land within
the City and to prepare that land for industrial use. The
absence of large land parcels, 40 acres or more, is often
cited as an obstacle to development in Detroit. If we are
to develop such large parcels and prepare them for immedi-
ate use, we will be in a better competitive position vis a
vis the surrounding suburban areas, and other industrial
parks throughout the State and around the country.
ACTIONS REQUIRED
1. Create an Economic Development Corporation as allowed
in P.A. #338.
2. Provide tax incentives and loans and grants for
industrial park development.
3. Use City's experts and contract with outside experts
in industrial park location to contract with users and
establish location.
4. Obtain $34 million from Federal government to acquire
and to prepare land for industrial park redevelopment.
5. Obtain $2 million in Federal manpower funds to provide
necessary services.
6. Use P.A. #198 to allow Plant Rehabilitation and
Industrial Development.
RESOURCES REQUIRED
Capital:
*Property Acquisition:
$ 24 million
Site Improvements:
10 million
Manpower:
Other Employment:
2 million
TOTAL:
$ 36 million
*$4.8 million of property acquisition costs will
eventually be recovered through resale of land.
IMPACT STATEMENT
1. JOBS
Short-term construction and
engineering jobs:
2,000
(27)
Long-term industrial (retained
or new) jobs:
8,000
2. PERSONAL INCOME GENERATED annually:
$ 100 million
3. TAXES
Local Income:
$ 1.6 million
State Income:
$
3.9 million
Real & Personal Property:
$ 20 million
4. Additional increases of several thousand jobs and
several millions of dollars in income can be anticipated
as a result of the multiplier effect.
(28)
Eight Mile Rd.
Eight Mile
Rd.
GT
RR.
FREEWAY
CHRYSLER
LODGE
FREEWAY
HIGHLAND
PARK
HAMTRAMCH
FORD FREEWAY
JEFFRIES
FREEW
woodward
Crand RIVET
SOUTHFIELD
FREEWAY
Jefferson
Lake
St
Clair
Isle
Michigan
Belle
RIVER
ETROIT
CANADA
REF.
INDUSTRIAL CORRIDORS
0
1
2
3
Scale
Miles
RECYCLING OF EXISTING INDUSTRIAL PLANTS
PROJECT DESCRIPTION
Detroit has the bulk of its industrial capacity in
facilities which average 50 years of age. Many of them
are obsolete and beyond ordinary rehabilitation. This,
coupled with the lack of sufficient land available for
the whole, single step development, has resulted in
economic pressures on companies to leave Detroit and
seek new land in suburban areas and other states. Ex-
amples of companies occupying old industrial facilities
include such large corporations as Chrysler, Parke-Davis,
and Uniroyal.
In order to assure that these companies do not leave
Detroit, but stay and expand, we recommend that steps be
taken to develop new facilities in a recycling process
adjacent to the present facilities SO that these plants
may begin to redevelop themselves in Detroit without
prohibiting the capital outlays that render such projects
infeasible.
ACTIONS REQUIRED
1. Immediately prepare joint development plans with the
industries involved to create development timetables
and action priorities agreeable to both government
and industry.
2. Obtain $10 million for the purchase of land and $105
million for the demolition of buildings and the
reconstruction of land support facilities.
3. Acquire lands for industrial expansion that are:
a. Currently known to be for sale.
b. Zoned for commercial use.
C. Suitable for industry use but currently zoned
and/or being utilized for non-industrial
purposes.
4. Institute a revolving fund that would be made available
to industry to assist them in meeting Environmental
Protection Agency requirements.
5. Form an Economic Development Corporation that would be
authorized to plan, finance, and execute projects, to
assist industrial and commercial location and expansion
within the City (P.A. #338, 1974, Economic Development
Corporation Act).
(29)
RESOURCES REQUIRED
Capital:
*Property Acquisition:
$ 10 million
Construction & Demolition:
105 million
TOTAL:
$ 115 million
*$2 million will be recovered through land resale.
These capital funds can either be low interest or interest-
free government loans to private industry or private fund-
ing sources not associated with government. However, the
key would be the assurance of the availability of private
funds on a joint venture basis if appropriate public funds
were also issued.
IMPACT STATEMENT
1. JOBS
Short-term construction and
engineering:
2,500
Long-term industrial retained
or new:
10,000
2. PERSONAL INCOME GENERATED annually:
$ 125 million
3. TAXES
Local Income:
$ 2 million
State Income:
$
4.875 million
Real & Personal Property:
$ 25 million
4. Additional jobs and several millions of dollars in
effect. income will be generated as a result of the multiplier
(30)
ESTABLISH A MECHANISM FOR INCUBATING INDUSTRIES
PROJECT DESCRIPTION
Many industries encounter difficulties establishing them-
selves in already developed industrial areas and require
some form of assistance in getting started. In addition,
existing businesses often find it impossible to modernize
and expand in periods of economic decline. The incubator
industries process would allow direct support to such
industries.
The mechanism would require the erection of new or rede-
veloped facilities to be used to attract growing indus-
tries. The City also would assist by making available
management services, manpower, and facilities. It is
anticipated that industries would be allowed to develop
for two-three years in this subsidized atmosphere until
they stabilize to the point where they could leave the
incubator and move into the normal industrial fabric of
the City.
ACTIONS REQUIRED
1. Obtain $30 million from Federal Government in order
to purchase land upon which to erect new and efficient
industrial "shells" which are capable of containing
industries of any size and allow them to expand with-
out having to leave the facility.
Such shells could serve to house any type of industry
that would be so serviced as to allow normally compe-
titive interests to be easily supportive of each other.
2. Construct industrial shells or rehabilitate existing
multi-story industrial facilities with $50 million in
Federal loan and grant funds.
3. Establish management organization for "incubator
industry" project.
4. Establish special tax discounts to provide "move in"
incentives.
5. Assure passage of the Job Development Authority Act
presently introduced into the State Legislature.
6. Receive $10 million manpower grant from Federal
Department of Labor.
RESOURCES REQUIRED
Capital:
Property Acquisition:
$ 30 million
Construction:
50 million
(31)
Manpower:
Public Employment
$ 10 million
Other Employment
2 million
TOTAL:
$ 92 million
IMPACT STATEMENT
1. JOBS
Short-term construction and
engineering jobs:
1,200
Long-term industrial (retained
or new) jobs:
5,000
2. PERSONAL INCOME GENERATED annually
$ 100 million
3. TAXES
Local Income:
$
1.5 million
State Income:
$
3.5 million
Real & Personal Property:
$ 20 million
4. Additional increases of several thousand jobs and
several millions of dollars in income can be antici-
pated as a result of the multiplier effect.
(32)
EXPANSION OF CITY AIRPORT
PROJECT DESCRIPTION
This project is aimed at expanding the City Airport's
arena of operations to include a greater emphasis on
industrial support air traffic. Such firms as Burroughs,
Parke-Davis and Chrysler would be primary users of the
increased operations.
This project would include the construction of slightly
larger runways and associated ramps and aprons, a new
air freight terminal, the renovation of the executive
terminal, expansion of the present air terminal, a de-
emphasis on use of the airport by private small aircraft,
and the establishment of the airport as a duty-free port.
Presently, 210,000 air movements are recorded at the air-
port annually and out of 8,000 airports in the United
States, City Airport ranks 74th in air traffic. Other
than Metro, City Airport is the only airport in the
vicinity that is rated by the Federal government as an
international airport.
ACTIONS REQUIRED
1. Obtain FAA funds (two-thirds of total) and MAC funds
($5,000) for the development of a new "Airport Master
Plan."
2. Transfer jurisdiction of City owned properties from
EPM Department to Detroit Airport Department.
3. Negotiate contracts with several industries for
guaranteeing long-term leases of the facilities.
4. Obtain Federal Aviation Agency funding (12-1/2% of
total) for the construction of runways and appropri-
ate aeronautical facilities.
5. Establish loans for the erection of a new air freight
terminal, the renovation of the executive air terminal,
and expansion of the present terminal.
6. Establish City airport as a foreign trade zone.
7. Establish low-interest private or public loans for the
construction of certain support activities such as
restaurants, information centers, etc.
RESOURCES REQUIRED
Capital:
Construction:
$ 26 million
Manpower:
Other Employment:
$ 1.1 million
TOTAL:
$ 27.1 million
(33)
IMPACT STATEMENT
1. JOBS
Short-term construction and
engineering jobs:
100
Long-term industrial (retained
or new) jobs:
50
2. PERSONAL INCOME GENERATED annually:
$ 2 million
3. TAXES
Local Income:
$ 50,000
State Income:
$ 120,000
Real & Personal Property:
$ 500,000
4. Foster development of additional and commercial
linkages.
5. Increase desirability of residential buildings due
to increased demand.
6. Alleviate tax burden on residential property sector
due to expansion of industrial base.
7. The airport itself will provide revenue to the City.
(34)
DETROIT MEDICAL CENTER
PROJECT DESCRIPTION
The Detroit Medical Center, which houses several hospitals,
a university school of medicine, schools of nursing, a
variety of health service organizations, and private health
facilities, is not traditionally seen as an industrial
undertaking. However, it employs 9,500 and requires an annual
budget in excess of 180 million dollars.
The rapid completion of this project is an integral part
of the expansion of new industries in Detroit. Therefore,
the rapid completion of the Detroit General Hospital and
the presently proposed VA Hospital are an integral part of
assuring an industrial Detroit.
ACTIONS REQUIRED
1. Obtain the guarantee of interest-free loans for the
construction of the Detroit General Hospital.
2. Obtain land acquisition funds to assure a site for a
new Veterans Administration Hospital.
3. Obtain $80 million commitment for V.A. to build hospital.
RESOURCES REQUIRED
Property Acquisition:
$ 5 million
*Construction:
75 million
TOTAL
$ 80 million
*$80 million for General Hospital accounted for in
Detroit General Hospital Project.
IMPACT STATEMENT (v.A. HOSPITAL ONLY)
1. JOBS
Short-term construction and
engineering jobs:
1,000
Long-term industrial (retained
or new) jobs:
1,500
2. PERSONAL INCOME GENERATED annually:
$ 25 million
(35)
3. TAXES
Local Income:
$ 400,000
State Income:
$ 1 million
Real & Personal Property:
$ 1 million
4. Probable generation of over 1,000 jobs and $5 million
in income as a result of the multiplier effect.
(36)
DETROIT GENERAL HOSPITAL
PROJECT DESCRIPTION
The present Detroit General Hospital facility is no longer
economically efficient. Its new location has been secured
within the Detroit Medical Center Complex. The program
proposed here calls for the construction of a new building
for the hospital in 1975. Plans have been completed and
the site has been prepared. The project will complement
the existing facilities in the internationally renowned
Medical Center, the second largest in the United States.
Since Detroit General serves as a teaching hospital for the
Wayne State University Medical School, and the colleges of
Nursing and Pharmacology; the new location immediately
adjacent to these schools is ideally suited for teaching.
Further, since the new hospital will be physically centered
to many other hospitals, patients will be able to receive
specialized care from the most comprehensive array of
service available anywhere.
Some work on the project has already begun. Additional
funds are needed to complete it.
ACTIONS REQUIRED
1. Obtain Federal interest-free loans for construction of
the project.
2. Change physician malpractice laws to insure availability
of medical personnel to provide services.
RESOURCES REQUIRED
Capital:
Construction:
$ 80 million
IMPACT STATEMENT
1. JOBS
Short-term construction and
engineering jobs:
1,000
Long-term service (retained or
new) jobs:
1,500
2. PERSONAL INCOME GENERATED annually
$ 25 million
(37)
3. TAXES
Local Income:
$ 400,000
State Income:
$
1 million
Real & Personal Property:
$
1 million
4. Probable increase of several hundred jobs and several
millions of dollars in income will be generated as a
result of the multiplier effect.
(38)
WATER MAIN AND SEWER RENOVATION
PROJECT DESCRIPTION
Many development projects are being planned for the inner-
city where the infrastructure of sewer and water service
is inadequate for modern urban users. This project is
intended to reinforce these projects by replacing or
renovating water mains and sewers that are either deteri-
orated or inadequate for modern service. When completed
the project will make new development projects in the
inner-city possible, will help enhance property values in
sound neighborhoods, and make water and sewer service more
satisfactory. The majority of the work will be concentrated
in the older, inner and middle portions of the City, how-
ever, outer portions of the City where developers did not
provide adequate sewer and water service will also receive
a share of the project.
ACTIONS REQUIRED
1. Obtain grant funds from the Environmental Protection
Agency or the Department of Housing and Urban Develop-
ment to accomplish these projects.
2. Develop design and engineering plans.
3. Establish procedure to renovate or replace all inade-
quate or deteriorated sewers throughout the City.
RESOURCES REQUIRED
Capital:
Construction and renovation of water
mains and sewers
$ 25 million
General Maintenance:
Major sewer cleaning project:
4 million
TOTAL:
$ 29 million
IMPACT STATEMENT
1. JOBS
Short-term construction and
engineering jobs:
76
Long-term construction and
engineering jobs:
150
2. PERSONAL INCOME GENERATED by project $ 1.9 million
(39)
3. TAXES
The project itself will not provide any taxes, how-
ever, if property values are enhanced by the project
then assessments could increase, and tax revenues
would thereby increase.
(40)
RESOURCE RECOVERY SYSTEM
PROJECT DESCRIPTION
Detroit requires a recycling center to process the 3,000 tons
of rubbish that are produced daily. A study justifying the
center has been conducted and preliminary plans for a plant
operation exist. In addition, a site for the construction of
a recycling plant has been identified. The implementation of
this project is essential to reduce the operating costs to the
City of waste disposal and energy production. It is also
central to the economic revitalization of the City as a producer
of an alternate fuel source for the critical private electrical
power company serving the Detroit area. The recycling center
will permit the release, for tax producing purposes, of other
existing rubbish disposal facilities on the riverfront,
adjacent to the City Airport, and in the wholesale distribution
urban renewal project area.
ACTIONS REQUIRED
1. Obtain $40.6 million grant under the Federal Resource
Recovery Demonstration Program.
2. Acquire 27 acres of land for site for the recycling center.
3. Contract with the Detroit Edison Company for the purchase
of solid waste as a supplementary fuel.
4. Prepare final plans and construct the plant.
RESOURCES REQUIRED
Capital
Property Acquisition:
$
.6 million
Construction:
40.0 million
TOTAL:
$ 40.6 million
IMPACT STATEMENT
1. JOBS
Short-term construction and engineering:
200
2. PERSONAL INCOME GENERATED annually:
$
4 million
3. TAXES
Local Income:
$ 35,000.
State Income:
$100,000.
4. Reduced net waste disposal costs.
5. Reduced street lighting costs.
6. Reduced use of fossil fuels by City and Detroit Edison.
(41)
V
MIII
⑉
1108,
Commercial Program For Revitalization
COMMERCIAL PROGRAM FOR REVITALIZATION
The problems that face commercial development in Detroit
are numerous. The high cost of land, the lack of parking,
the obsolescence and deterioration of many commercial
buildings and the competition posed by suburban shopping
centers all impede development. There are three separate
areas of actions to improve Detroit's commercial develop-
ment competitiveness: the removal of deteriorated retail
strip areas; the redevelopment of the central business
district; and the strengthening of neighborhood shopping
centers.
Declining retail strips exist throughout the City of
Detroit. Vacancies, boarded-up stores and the rapid
turnover of businesses characterize segments of virtually
all of the City's major commercial arteries. Peripheral
areas which seemed relatively immune from deterioration
are experiencing problems previously associated with older
areas closer to downtown. This trend imperils both still-
viable commercial areas and nearby residential areas.
The greatest obstacle to the rehabilitation and moderniza-
tion of Detroit's commercial strips is, of course, the cost
involved. Parking can theoretically be provided for
shoppers. Substandard facilities can be restored to an
economically useful state. The appearance of blighted
areas can be improved. However, the dollar price of these
improvements is staggering. The acquisition cost of an
average Detroit commercial block -- about one-half acre --
is $350,000, excluding demolition costs.
Thus, the cost to acquire and demolish only 100 blocks
throughout the City is more than 35 million dollars. It
is estimated that an area equal to more than 2,000 commer-
cial blocks is blighted. The cost to acquire and clear
this land exceeds 700 million dollars.
While Detroit's Central Business District (CBD) remains
economically viable, this area, like other commercial areas
within the City, has lost both retailers and shoppers
within the last several years. Significant amounts of
office space within downtown Detroit are vacant as the re-
sult of move-outs of such professional service agencies as
law firms, accounting firms, and advertising agencies.
Additionally, it is expected that, at least for the short-
term, the completion of the four major office buildings of
the Renaissance Center will have an adverse impact on some
of the older, marginal office buildings in the CBD. The
completion of the McNamara Building will add to the growth
of downtown Detroit. A downtown shopping mall, which
would include a Kern Block development, would ideally
complement thse other developments.
(42)
The problems are not insoluble. A recent study undertaken
by the City of Detroit concluded that a significant portion
of the commercial land in the City, approximately 30% of
the total land area that is considered excess could suc-
cessfully be turned over to other uses, such as residential
and recreational. Further, since many whole commercial
blocks are vacant, land assembly for development of these
other uses should be easier. Market studies have indicated
that the City needs and would support several neighborhood
shopping centers. Some of the existing commercial centers
in the City remain vital. These areas could be strengthened
and expanded, utilizing adjacent vacant land and serving as
anchors for other development.
In order to realize the goal of a healthy and revitalized
commercial sector, we propose a variety of actions to
complete ongoing downtown development projects and to
eliminate the tremendous burden of vacant strip commercial
lands. We propose to: construct a downtown shopping mall
which will compete on an equal footing with suburban
shopping centers; to insure the health of neighborhood
shopping centers so essential to our citizens; and to com-
bine shopping, housing, and other facilities so as to
guarantee the long life of Detroit's commercial base.
(43)
EMPLOYMENT OPPORTUNITIES GENERATED: COMMERCIAL PROGRAMS
COST
PROJECT
(IN MILLIONS) SHORT TERM LONG TERM
TOTAL
1. Downtown Development and
Improvement
$ 41.0
3,300
3,960
7,260
2. Downtown Shopping Center
20.0
2,000
4,000
6,000
3. New Courthouse
70.0
1,500
400
1,900
4. New Wayne County Jail
40.0
1,000
210
1,210
5. Redevelopment of Commercial
Strips
88.5
300
5,000
5,300
6. Neighborhood Shopping Centers
43.0
650
700
1,350
(43A)
7. Demolition of Obsolete
Commercial Buildings
5.0
100
----
100
$307.5
8,850
14,270
23,120
DOWNTOWN DEVELOPMENT AND IMPROVEMENT
PROJECT DESCRIPTION
A number of individual actions can be taken to strengthen
existing downtown development in Detroit. Many of the
activities proposed here will expedite sluggish development.
Others will provide for development which would not take
place through private efforts alone, for example, the intro-
duction of new housing into the downtown area (Housing
Program for Revit.) which will facilitate movement between
various downtown areas. Similarly, a new courthouse and
jail, the already funded new police precinct station, a
new community college are all essential ingredients of a
successful downtown area. This project proposes to provide
for the acquisition of property, demolition of vacant
structures and site construction activities to enhance
developmental efforts, particularly by the private sector
for the overall rejuvenation of CBD.
ACTIONS REQUIRED
1. Obtain immediate funding for the construction of covered
Pedestrian Ways between buildings and parking garages
and between private buildings. Obtain immediate
funding for the rapid completion of Downtown projects
already initiated, including the Civic Center; HUD
funding commitment to ongoing renewal projects.
2. Passage of the Downtown Development Authority Act,
which can be used as a tool to undertake development
activities in the key commercial centers of Detroit.
3. Provide funds for land acquisition and public improve-
ments for the Wayne Court Community College Campus,
the new jail, and the new courthouse.
4. Establish a working arrangement between the Municipal
Parking Authority and private parking corporations
for joint operation and fee structuring of all parking
lots on a zone basis; utilize these resources for the
construction of additional parking garages.
5. Develop an approach to the financing of parking
structures which allow multiple use, e.g., parking,
commercial and residential. Both the public and private
sectors must share in the financing of the structure so
that construction is expedited. At the same time, the
tax laws relating to parking lots must be revised so that
land presently held for use as parking lots can be profitably
turned into development parcels. This may require entering
into joint ventures with parking lot owners, allowing them
equity for their land if those lands are committed to
housing, commercial or other development entities.
(44)
6. Establish a real estate management and marketing
mechanism to increase the usability of secondary office
and commercial space in central Detroit and the New
Center area. Since it is apparent that the private real
estate industry has not responded to the appropriate
demands; we recommend the formation of an organization
whose sole purpose is to attract new users to vacant and
soon to be vacant offices and to structure an operational
program suitable to their needs.
7. Adopt tax-incentive legislation favoring rehabilitation
of existing office and retail structures.
8. Downtown conservation programs to eliminate blighted
buildings and make land available for expansion and
renovation of adjacent retail establishments.
9. Reduce crime by:
1) increasing foot patrol forces
2) providing increased street lighting
3) working with existing legal, educational, and
preventive institutions in order to better
understand and identify the dynamics of criminal
behavior.
10. Improve aesthetics by increased attention to maintenance
and beautification of public property.
11. Encourage off-hours use of retail and entertainment
services by promoting downtown residential development.
12. Promote downtown properties in mass media and through
personal recruiting. Provide relocation information and
assistance.
RESOURCES REQUIRED
Capital:
Property Acquisition
(Community College, Parking Garages)
$ 10 million
Demolition
$ 5 million
Construction (for Public Improvement)
(Civic Center, Pedestrian Ways)
$ 26 million
TOTAL:
$ 41 million
(45)
IMPACT STATEMENT
1. JOBS
Short-term construction and engineering jobs
3300
Long-term commercial (retained or new) jobs
3960
2. PERSONAL INCOME GENERATED annually:
$59.4 million
3. TAXES
Local Income:
$ 1,056,000
State Income:
$2.64 million
Real & Personal Property
$2.64 million
4. Because of the multiplier effect, several thousand addi-
tional jobs and several thousands of dollars of additional
income will be generated.
(46)
DOWNTOWN SHOPPING CENTER
PROJECT DESCRIPTION
The Downtown Shopping Center will include a pedestrian retail
mall on Woodward Avenue and calls for the construction of a
fully enclosed multi-use (retail and other commercial) faci-
lity on the Kern Block. This project will complement the
existing commercial and retail establishments in the downtown
area and will make the CBD more competitive with suburban
shopping centers. In addition, it will serve as a strong
inducement for residential development in downtown Detroit.
ACTIONS REQUIRED
1. Obtain guarantee of low interest federal financing for
the shopping centers: Woodward Mall; Kern Block facility.
2. Identify a developer for the Kern Block multi-use facility.
3. Obtain State Highway Department consent for construction
of the Mall on Woodward.
4. Redocate utilities and provide parking for the Kern Block
development.
RESOURCES REQUIRED
Capital:
Property Acquisition
$ 5 million
Construction
195 million *
TOTAL:
$200 million
* $ 180 million reflects private sector investment
IMPACT STATEMENT
1. JOBS
Short-term construction and engineering jobs
2000
Long-term commercial (retained or new) jobs
4000
2. PERSONAL INCOME GENERATED annually
$ 45 million
3. TAXES
Local Income:
$900,000
State Income:
$1.8 million
Real & Personal Property
$ 8 million
4. Because of the multiplier effect, several thousand additional
jobs and several thousands of dollars of additional income
will be generated.
(47)
NEW COURTHOUSE
PROJECT DESCRIPTION
A number of the local courts are presently scattered throughout
several buildings in downtown Detroit. This situation results
in duplication of costs -- e.g., several law libraries record
keeping -- which could be avoided if all the courts were housed
in one location. Further, citizens having business before the
courts would be aided by a central court location.
This project consists of the construction of a single building
to house the Traffic Court, Probate Court, Court of Common
Pleas, Court of Appeals, and Circuit Court. The building will
be constructed on the Larned-Bates, urban renewal site.
* Refer to Public Safety Program for Revitalization
ACTIONS REQUIRED
1. Obtain Federal and State financing for the construction
of a new court facility.
2. Obtain the concurrence of the Wayne County Board of
Commissioners to locate Wayne County courts in the new
building.
RESOURCES REQUIRED
Capital:
Construction
$70 million
IMPACT STATEMENT
1. JOBS
Short-term construction and engineering jobs
1500
Long-term service (retained or new) jobs
400
2. PERSONAL INCOME GENERATED annually
$8 million
3. TAXES
Local Income:
$130,000
State Income:
$320,000
Real & Personal Property
$100,000
4. Because of the multiplier effect, several thousand
additional jobs and several thousands of dollars of
additional income will be generated.
(48)
NEW WAYNE COUNTY JAIL
PROJECT DESCRIPTION
The existing Wayne County Jail has a legal capacity of 799
prisoners. The functional capacity of the current facility
is approximately 650; however, since certain prisoners must
by law and by humanitarian practice be separated from the
others (the old, the young, the diabetic, the suicidal, the
homosexual, the drug addict, etc.) the total number that can
be housed is less. Because of the current shortage of
detention space, the number of persons in the jail has, at
times, far exceeded both practical and legal limits, a
practice which the Wayne County Circuit Court has ordered
to cease.
This project consists of the construction of a new 700 bed
Wayne County Jail, to be located in close proximity to the
present Wayne County Jail.
Construction of the new jail will bring Wayne County into
compliance with the Court order. More importantly, it will
alleviate some of the problems caused by overcrowded
conditions -- assaults, rapes, suicides -- in detention
facilities. As a new building, it will have the added
benefit of renewing a part of Detroit's downtown.
*Refer also to Public Safety Program for Revitalization.
ACTIONS REQUIRED
1. Obtain $40 million from Federal and State agencies for
construction, architectural design, and engineering.
2. Complete design schematic for 700 bed facility (Giffels/
Sims joint venture designs are scheduled to complete in
June. Their work is being financed by a $157,000 grant
from the Law Enforcement Assistance Administration.)
3. Complete design and construct the jail.
RESOURCES REQUIRED
Capital:
Construction
$40 million
IMPACT STATEMENT
(49)
1. JOBS
Short-term construction and engineering jobs 1000
Long-term service (retained and new) jobs
210
2. PERSONAL INCOME GENERATED annually
$4.2 million
3. TAXES
Local Income:
State Income:
$ 63,000
$158,000
Real & Personal Property
N/A
4. Because of the multiplier effect, several thousand addi-
tional jobs and several thousands of dollars of additional
income will be generated.
(50)
REDEVELOPMENT OF COMMERCIAL STRIPS
PROJECT DESCRIPTION
Many of the City's strip commercial areas are in various
states of physical and economic decay. The Commercial
Land Utilization Study found that approximately 30% of the
more than 300 miles of strip commercial frontage is no
longer needed for commercial purposes. Such outmoded
commercial strips and sites must be converted to alternate
uses, such as housing or recreation.
The purpose of this project is the consolidation of existing
viable commercial facilities now included in decayed strips
into stronger neighborhood centess. This program requires
funds with which to undertake the rapid removal of excess
commercial facilities in strip form and provide for their
relocation into new neighborhood centers. This activity,
undertaken on a large scale, would make a dramatic change
in the physical condition and visual appearance of the City.
In addition, it would provide lands for housing and other
community facilities with direct relation to both present
and future transportation systems.
ACTION REQUIRED
1. Obtain grants from the Federal Government to demolish
substandard buildings álong identified thoroughfares.
2. Acquire land on major arteries, such as Woodward, Grand
River, Gratiot, East Jefferson, and Michigan Avenue,
as well as other major thoroughfares, such as Mack,
Warren, Puritan, Livernois, Fort Street, etc.
3. Landscape these lands for an interim period while long-
term redevelopment is under way. This landscaping is
essential to bring about a dramatic change in the
appearance of the City of Detroit.
4. Relocate businesses to more appropriate, effecient,
and convenient neighborhood centers.
5. Prepare site plans for neighborhood centers with special
emphasis on the relationship of buildings, parking areas,
and local circulation systems, A center's relationship
to existing local transportation and proposed mass
transit facilities and proposed "incubator" industry
locations will also be considered.
6. Obtain guaranteed loans from the Small Business Admini-
stration for new businesses relocated as a result of
the strip commercial activity.
(51)
7. Utilize manpower employment grants from the Federal
Department of Labor to obtain employees for demolition
of old buildings and preparation of landscaped areas.
8. Totally rezone all strip commercial to include multiple
use activities under the planned unit development
regulation rather than B2/B4 so that there will be
joint public and private participation in the re-use of
these lands.
RESOURCES REQUIRED
Capital:
Property Acquisition & Demolition
$77 million
Construction
5 million
Employment Grants
1.5 million
Guaranteed Loans
5 million
$88.5 million
*Approximately $8 million of the total cost will eventually
be recovered through land sales
IMPACT STATEMENT
1. JOBS
Short-term construction and engineering jobs
300
Long-term commercial (retained or new) jobs
5000
2. PERSONAL INCOME GENERATED annually
$75 million
3. TAXES
Local Income:
$1.5 million
State Income:
$3 million
Real & Personal Property:
$2.3 million
4. Because of the multiplier effect, additional jobs and
additional revenues will be generated.
5. Development of additional commercial linkages.
6. Increased demand for surrounding residential buildings due
to improved local services and esthetics.
7. Eased residential tax burden on residential property sector
through expansion of commercial base.
(52)
NEIGHBORHOOD SHOPPING CENTERS
PROJECT DESCRIPTION
Since the mid 1950's when the approach to retail marketing
shifted from commercial strips to shopping centers, many
older areas of Detroit have become increasingly under-
serviced with few basic retail outlets. This project will
strengthen and enlarge the commercial shopping centers
throughout Detroit. Specific emphasis will be placed upon
three categories of shopping centers.
1. The large community-wide centers such as those at Grand
River and Oakman, and Gratiot and Van Dyke which already
have substantial retail stores and a variety of commer-
cial activities but which are in distinct trouble.
2. Shopping centers of 6-8 acres which would serve a trade
area with a radius of 1-1/2 miles. Included in them
would be a major chain supermarket, a drugstore, and
ancillary facilities such as a bank, a dry cleaner, a
beauty shop, a medical office and a small restaurant.
3. The cluster of two or three stores around an intersection
within walking distance of a reasonable population;
typically a foodstore, a drugstore, a dry cleaner, or
other similar activities.
The purpose of this project is to make monies available for
the revitalization of the large shopping centers and to include
them in those activities which would be dislocated by the
demolition of the obsolete strip commercial facilities referred
to in the previous project.
As the first step toward establishing several neighborhood
shopping centers, 6-8 acres in area, the City hired a
nationally-known market research specialist to identify and
prioritize the areas of greatest need and potential within
Detroit. Twelve sites were so ranked. A six-acre site at
Kercheval and McClellan on the City's southeast side was
chosen for development of the first shopping center though
urban renewal. Businesses dislocated through the demolition
of obsolete strip commercial facilities would be included in
this type center also.
The third aspect of this program would be to make economically
feasible the "mom and pop" convenience stores so crucial to
a low density residential population.
(53)
ACTIONS REQUIRED
1. Acquire Federal funding for land acquisition in the
immediate vicinity of the larger community shopping
centers in order that new facilities can be con-
structed in which to move facilities or businesses
dislocated through the strip commercial redevelopment
process; and to reorganize parking and circulation
systems within those shopping centers. Land should also
be made available to assure proper landscaping and orien-
tation to the surrounding adjacent areas in order that
the traditional housing abandonment which takes place
around incompatible shopping centers can be avoided.
2. Obtain Small Business Administration interest loans and
insurance guarantees for any new business willing and
able to locate into these commercial centers so that
these facilities can be constructed with the least risk
to the private sector.
3. Obtain legislative actions removing legal restraints which
unnecessarily impede the acquisition of blighted properties.
In addition, obtain legislation permitting the acquisition
of land which does not meet the present standards for blight
but which is necessary for a city development program.
4. Establish an Economic Development Corporation under
Public Act 338 of 1974.
5. Establish subsidies for the "mom and pop" neighborhood
centers to reduce their financial burden, thereby
reducing the price of their goods and services to the
residents of Detroit. This will require the establishment
of community-wide management services to provide, on a
consulting basis, property management assistance to the
owners of these facilities.
It may include access to the merchandising mechanisms
of the larger enterprises by these small businesses.
This would mean, for example, that the "mom and pop" store
can operate on a credit card basis supported by the banking
industry and may take advantage of the buying power of the
large wholesalers presently used by chain stores such as
A&P and Kroger. It would also mean access to the
advertising of these large entities.
RESOURCES REQUIRED
Capital:
Property Acquisition
$19 million *
Construction
$21 million **
Manpower
$ 3 million
TOTAL:
$43 million
(54)
IMPACT STATEMENT
1. JOBS
Short-term construction and engineering jobs
650
Long-term commercial (retained or new) jobs
700
2. PERSONAL INCOME GENERATED annually
$10.5 million
3. TAXES
Local Income:
$210,000
State Income:
$420,000
Real & Personal Property:
$1.2 million
4. Because of the multiplier effect, several thousand addi-
tional jobs and several thousands of dollars of additional
income will be generated.
Note: * $2 million of the $19 million property acquisition
costs will be recovered through land sales.
** Construction costs of $21 million to be financed
with low interest bearing loans (6%)
(55)
DEMOLITION OF OBSOLETE COMMERCIAL BUILDINGS
PROJECT DESCRIPTION
Vacant buildings, or buildings that are deteriorated and
obsolete, have a devastating physical effect on their
surrounding area. This program is designed to effectuate
the rehabilitation of such buildings and to encourage their
maintenance and upkeep. It is not intended to conflict with
the demolition of structures recommended in the Redevelopment
of Commercial Strips Project. Demolition will be undertaken
only when facilities cannot be rehabilitated to useful purpose.
ACTION REQUIRED
1. Obtain $5 million grant for demolition.
2. Enact legislation holding building owners personally liable
for demolition of buildings which are abandoned, obsolete,
and deteriorating.
3. Establish a public demolition fund for expediting demo-
lition and the rapid resale of land.
4. Modify State tax laws to encourage owners to improve their
properties. Present tax laws, by assessing improved
property at higher rates than unimproved property, dis-
courage rehabilitation.
5. Improve procedures for blight declaration and land acqui-
sition by the government for public purpose to provide
greater speed and efficiency.
RESOURCES REQUIRED
Public Demolition Fund
$5 million
IMPACT STATEMENT
1. JOBS
Short-term demolition jobs
100
The chief benefit derived from this program will be the
aesthetic improvement of the City.
(56)
VEHICLES
11"
1
coson
÷
"
11111
""""
inn
1998,
9100
Housing Program For Revitalizalization
HOUSING PROGRAM FOR REVITALIZATION
The problems of inadequate or substandard housing in the City
of Detroit are inseparable from questions of poverty and
changing social structure. Sixty percent. of the City's present
513,000 housing units were built prior to 1939; over a third
of the existing stock is more than 50 years old. Many of
these homes were poorly built in the first place in the haste
to shelter a rapidly expanding population. Now the older
neighborhoods, crowded with homes on narrow lots and without
room for parking cars, are no longer attractive or convenient.
As business, industry, and more affluent families join in the
familiar metropolitan flight to the suburbs, the population
of Detroit has become smaller. Total population declined by
156,000 from 1960 to 1970. Population per household also
declined from 3.2 to 3.0; in part reflecting a changing life-
style of low birth rates and more single people living alone;
in part reflecting the relative increase in the proportion
of the elderly as younger familes moved out of the City.
Over 20% of all households are headed by senior citizens.
Altogether, about 120,000 households in Detroit are receiving
either Social Security or some form of public assistance.
This figure represents one-fourth of the City's total house-
holds.
With the changing profile of households, the City's housing
stock is becoming progressively unsuitable and obsolete for
housing its population. In addition, the large number of
poor households in Detroit means that reinvestment in the
housing stock sufficient to prevent the deterioration and
the replacement of dilapidated units is not possible via
personal finances. It is estimated that some 30% of the
housing stock is significantly deteriorated; some 60,000
units are considered to be substandard. Abandonment and
demolition of housing units is currently taking place at
an annual rate of about 10,000. HUD has foreclosed on
nearly 20,000 properties since 1970, and has torn down
nearly half of them. Simply to maintain sufficient housing
units to accomodate the current population in minimally
standard housing will require construction of 5,000 new
units per year for the next five years. Furthermore, in
order that such high replacement rates need not be continued
indefinitely, the 100,000 remaining units exhibiting deter-
ioration must be rehabilitated.
Finally, if the City is to maintain a balanced population
and strong tax base, middle and upper income families must
be retained and attracted. This portion of the population
has declined, both relatively and absolutely, in recent
years, contributing to the erosion of the tax base and
deterioration of the housing stock.
(57)
Housing strategies to appeal to middle and upper income
groups, and especially to Detroit blue collar workers,
must make choice sites available for new housing construction.
as well as activities to improve the quality of existing
neighborhoods of all income ranges.
Detroit has begun to undertake major programs to meet its
most severe housing needs, redevelop neighborhoods, and
redesign the structure of parts of the City. Readily
available vacant or underutilized sites have been identified
to begin work on the goal of 5,000 new units per year. But
there are not sufficient resources available to utilize the
land so as to resolve Detroit's housing problem.
In order to prepare for new housing development in future
years, and to resolve immediately the tremendous burden
placed upon Detroit by the failure of HUD homeownership
programs, two programs of real estate activities are proposed.
The first involves the acquisition of all abandoned homes
in neighborhoods where HUD owns a high proportion of
properties and their demolition to make way for new single-
family housing development. A program of neighborhood
improvements will accompany this treatment. The other
program provides for mechanisms to acquire or otherwise
control land which is desireable for residential develop-
ment in order to rationally expand the housing construction
program.
Since Detroit has hundreds of thousands of older homes
which can offer many years of adequate shelter, if they are
not allowed to deteriorate irreparably, several programs
providing for housing rehabilitation assistance are included.
The first program proposes to take over all HUD-owned homes
in salvageable condition and in decent neighborhoods, re-
pair them, and rent them out under the supervision of a
management corporation, to low and moderate-income families.
The second program employes large numbers of unemployed
workers to repair all houses in deteriorating condition in
the City. Since many families either cannot afford or can-
not obtain private rehabilitation financing, this sort of
assistance is greatly needed to preserve the housing stock.
In addition to the public works approach to rehabilitation,
a set of mechanisms to reduce the cost of financing repairs
is proposed. A low-cost program to assist residents to
improve the security of their neighborhoods is proposed to
counteract fears of crime.
Taken together, these programs will stimulate the local
economy through substantially increased short-term employ-
ment and make an immediate and dramatically visible impact
on the viability of the City's housing stock.
(58)
EMPLOYMENT OPPORTUNITIES GENERATED: HOUSING PROGRAM
COST
PROJECT
(IN MILLIONS)
SHORT TERM
LONG TERM
TOTAL
1. Real Estate Activities to
Promote Development
$106.0
100
600
700
2. Riverfront Seawall
17.0
150
---
150
3. New Housing Development
452.0*
4,350
35
4,805
4. Rental Program for HUD Homes
46.0
1,000
100
1,100
5. Single Family Housing
Rehabilitation
78.0
1,700
125
1,825
(58A)
6. Rehabilitation Assistance Program 24.275
800
25
825
7. Neighborhood Sec. Assistance
Program
5.25
25
---
25
8. Demolition of Dangerous Build-
ings on a Neighborhood Basis
7.0
150
---
150
$735.525
8,275
885
9,160
* $415 million mortgage guarantee
REAL ESTATE ACTIVITIES TO PROMOTE DEVELOPMENT
PROJECT DESCRIPTION
There are several areas in the City which offer great
potential for industrial, commercial, or residential
growth. At present, however, there are only limited tools
available for land acquisition in these areas. In order
to preserve these opportunities and guide development in
ways which are desired by the City, we will undertake a
program to obtain control of critical pieces of land.
The primary objective is to control land long enough to
initiate development.
In addition, the acquisition of sites by the City will make
them more attractive to developers, since land assembly and
writedown, if necessary, are accomplished without the delays
and difficulties associated with urban renewal. Obtaining
large tracts of relatively inexpensive, suitably located
land will make development in Detroit more competitive with
the suburbs.
The opportunity for favorable real estate activities in
critical locations is reinforced by the large number of
vacant and abandoned properties owned by HUD. These pro-
perties, and all others which later come into HUD owner-
ship in selected areas having potential for development
and characterized by deterioration and obsolescence, will
be transferred to City ownership. These properties, along
with any tax-foreclosed properties in the area, will be
maintained by the City until the land is conveyed to a
development interest. In addition, the City will acquire
privately-owned properties as needed to assure planned de-
velopment. Alternative means of quaranteeing control such
as options, and leasing to interim users or preleasing to
future occupants, will be used wherever possible to lower
the cost of maintaining land.
It has been estimated that annual maintenance costs would
run to about $1,000 per acre for completely cleared land,
while property taxes are foregone. Federal aid would be
necessary to support adequate maintenance.
The following areas are recommended for real estate acti-
vities to provide development opportunities:
Industrial
West Riverfront:
700 acres
Connor Corridor:
500 acres
Lyndon Corridor:
200 acres
Airport-Huber:
500 acres
(59)
Residential
East Riverfront:
125 acres
Near East Side:
500 acres
Downtown:
50 acres
ACTIONS REQUIRED
1.
Obtain $101.2 million grant for acquisition and
maintenance.
2.
Implement acquisition program.
3.
Dispose of properties in most appropriate manner
for enhancing development.
RESOURCES REQUIRED
Capital:
*Property Acquisition and Clearance
$100 million
Maintenance Equipment
1.2 million
Manpower:
Public Employemnt
Manpower for property maintenance
4.8 million
TOTAL
$106 million
*Approximately $20 million of total project costs will be
recovered through land sales.
IMPACT STATEMENT
1.
Jobs
Short-term construction (demolition)
100
Intermediate-term retained or new
600
2.
Personal Income Generated Annually
$ 4.8 million
3. Taxes
Local Income
$
87,000
State Income
$
160,000
Real & Personal Property
$
- 12 million
(temporary)
4.
More than 100 jobs and the resulting income will be
generated because of the multiplier effect of the
employment created by this project.
(60)
RIVERFRONT SEAWALL PROJECT
PROJECT DESCRIPTION
This downtown riverfront project consists of demolition of the
existing sea wall; construction of a new sea wall at the harbor
line; and landfill for a large new housing development project.
In addition, the installation of all utility hookups necessary
for seasonal marina use will create major commercial development
programs. By constructing the new sea wall directly at the
harbor line, the Free Press/Penn Central site will be enlarged
from its current 57 acres to its maximum potential size of 70
acres. Proper utility hookups will ensure that riverfront
activity such as a riverboat restaurant, yacht docking facilities,
and other uses can be easily accommodated. The sea wall will
extend 4,000 feet, roughly from 3rd Street to 12th Street.
ACTIONS REQUIRED
1. Obtain $17 million grant from Federal agencies.
2. Construct 4,000 foot sea wall at harbor line, to be made
of steel sheet and wood timber pilings with concrete cap.
3. Demolish existing sea wall.
4. Landfill 13.1 acres.
5. hookups. Install necessary water, sewage, gas, electric, telephone
RESOURCES REQUIRED
Capital:
Sea Wall Construction
$ 7 million
Demolition, Construction,
Utility Infrastructure
10 million
TOTAL
$17 million
IMPACT STATEMENT
1. JOBS
Short-term construction & engineering 150
Long-term industrial (retained or new) N/A
2. PERSONAL INCOME GENERATED ANNUALLY
N/A
(61)
3. TAXES
Local Income
N/A
State Income
N/A
Real & Personal Property
$100,000
(62)
NEW HOUSING DEVELOPMENT
PROJECT DESCRIPTION
In order to replace the housing stock lost to decay and aban-
donment, and to provide housing more suitable for changing
household types, Detroit needs to build at least 5,000 new
units per year for the next five years. The purpose of this
program is to create opportunities and mechanisms for the
development of new housing units. A special, although not
sole, emphasis is to provide suitable housing in attractive
locations for middle and upper income households in order to
maintain a balanced community and healthy tax base.
This program involves acquistion and preparation of land;
provision of mortgage funds from public and private sources'
subsidization of rents; and provision of public improvements.
Part of the development of housing on the massive scale
envisioned will be managed by a new quasi-private corporation
which will receive funds from the various public and private
sources and be responsible for land assembly, development
packaging, and neighborhood management, as necessary. Part of
the mortgage funds commitment is expected to come through
private lending channels and part from the Michigan State
Housing Development Authority.
ACTIONS REQUIRED
1. Obtain guarantees of mortgage insurance, housing assis-
tance payments, management funds, and community develop-
ment funds from HUD.
2. Obtain guarantees of mortgage and acquisition funds from
the Michigan State Housing Development Authority (MSHDA)
and private sector. Acquisition funds will be used for
options or leases rather than outright purchase.
3. Work with MSHDA to secure a special mortgage fund free
from their usual restrictions in order to permit more
flexible sorts of development.
4. Establish a quasi-private development mechanism to speed
up the development process, purchase and hold land, and
perform related functions.
5. Acquire land in key areas of Detroit, both for immediate
development and later opportunities.
6. Plan and schedule appropriate neighborhood improvements.
7. Obtain commitments of Section 8 housing assistance subsidies
from HUD for two years at a time.
8.
Secure HUD implementation of Section 802 bond and note
guarantees.
(63)
RESOURCES REQUIRED
Capital:
Acquisition and Clearance
$ 12 million*
Housing Mortgage Fund Guarantees
Michigan State Housing Development
Authority
$200 million**
Department of H.U.D.
$215 million**
Neighborhood Development & Site
Improvements
$ 13 million
Housing Assistance Subsidies
(for 4,000 units)
$ 12 million
IMPACT STATEMENT
1. JOBS
Short-term construction
4,350
Long-term new
35
2. PERSONAL INCOME GENERATED ANNUALLY
$ 700,000
3. TAXES
Local Income
$ 17,500
State Income
$ 32,000
Real & Personal Property
$ 4.8 million
4. Additional jobs and income will be generated because of
the multiplier effect of this project.
*Funds for acquisition where no immediate development proposals
are available are included in "Real Estate Activities to Pro-
mote Developments." Examples of sites with immediate develop-
ment potential and the types of development proposed for them
follow.
**Guarantee of $415 million in mortgage funds available
for Detroit New Housing Development.
(64)
NEW HOUSING DEVELOPMENT: COMMITTED SITES
RIVERFRONT WEST
PROJECT DESCRIPTION
The proposed Downtown Riverfront West 2,500-unit housing
development will be built on approximately 35-acres of prime
riverfront property immediately adjacent to and west of Cobo
Hall which is the western most building in the Civic Center.
The land is presently under option to a major developer, and
architectural and engineering work is under way. Construction
is scheduled to commence in the Fall of 1975, assuming
construction and mortgage financing can be arranged.
The 2,500 units planned for Riverfront West development will be
constructed in three phases, with the first phase having approxi-
mately 900 units. Because of its prime in-town location and
vista of the river, the units will be marketed specifically to
meet the needs of moderate and middle income individuals and
households, many of whom presently are employed in the Down-
town Detroit area. Since this project will represent the first
major, non-subsidized housing development within the City of
Detroit in the past decade, its role in revitalizing Downtown
as a desirable place to live will be a significant as that of
Renaissance Center in restoring the vitality of the business
community.
ACTION REQUIRED
1. Ear-marking of $100 million in mortgage guarantees through
F.N.M.A. or G.N.M.A. for the three phases of the development.
2. A commitment of mortgage insurance for the project at not
less than 90% of replacement cost.
RESOURCES REQUIRED
Capital:
Mortgage Guarantees
$100 Million*
*Cost reflected in Resoures Required for New Housing
Development, pg. 64
(65)
ELMWOOD III
PROJECT DESCRIPTION
This project represents one of the major opportunities for
the City to expand its housing development program in a near
in-town location. Elmwood III is a 188-acre urban renewal
site which has been 99% cleared for redevelopment. This
project is the last phase of a 500-acre General Neighborhood
Renewal Plan which was started in the early 1950's. Less
than two miles from the center of downtown, Elmwood III is
being planned as an urban community which will ultimately
contain about 2,500 units of housing and related facilities.
In contrast to Riverfront West, which is being developed and
marketed as a downtown high rise for people who seek the
advantages of an in-town location, Elmwood III is being planned
as a small community providing a selection of all types of
Housing units. The project marketing objectives will include
significant opportunities for home ownership utilizing
condominium and cooperative programs, as well as providing
housing opportunities for a wide range of people with different
incomes, social and ethnic backgrounds and family types.
To this end, the Community and Economic Development Department
of the City, the Elmwood III Citizen's District Council
(responsible for citizen participation for the project area)
and Detroit Renaissance (an organization comprised of the major
corporate and business interests of the City) have entered a
formal agreement outlining their respective input and respon-
siblities in the preparation and implementation of a redevelop-
ment plan for Elmwood III. It is anticipated that the plan
will be completed by mid-1975 and actual construction of its
first phase will commence in early 1975. The plan, based on
preliminary concepts will require the use of additional funds
not now in the renewal budget in order to provide amenities
such as a multi-functional service and recreational center
which will enhance the community image of the Elmwood III area.
ACTION REQUIRED
1.
Commitment of mortgage guarantees through H.U.D.,
H.F.L.B.B. and MSHDA (State) to assure that favorable
financing terms will be available to developers and
purchasers.
2. Commitment of additional community development block
grant funds from the H.U.D. discretionary funds to
match with state, city and private donations to the
capital cost of a multi-purpose facilities to serve
the project and its surroundings.
(66)
RESOURCES REQUIRED
Capital:
1.
Mortgage guarantees
First Phase - 500 Units
$15 Million *
2.
Grant - Community
Multi-Purpose Facility
3 Million **
TOTAL
$18 Million
*Cost reflected in Resources Required: New Housing Develop-
ment - Housing Mortgage Fund Guarantees, pg. 64
**Cost reflected in Resources Required: New Housing Develop-
ment - Neighborhood Development Site Improvements, pg. 64
(67)
NEW HOUSING DEVELOPMENT PROPOSED SITE
RIVERFRONT SITES
The Detroit River, separating Detroit from Windsor, Ontario,
is the region's finest natural resource. In Detroit, much of
the riverfront is occupied by factories, warehouses, railroads,
and similar uses which prevent its enjoyment by the people.
Now, however, a number of these facilities are abandoned or
underutilized, thus presenting the opportunity for redevelop-
ment for residential use.
The following sites have been identified as having a potential
for immediate action. All can be accomplished within the next
five years. Other riverfront sites to be acquired for future
development are included in the foregoing section on "Real
Estate Activities to Promote Development."
1. East Riverfront Near Downtown
This site encompasses 112-acres immediately east of
Renaissance Center. Residential development here would
extend and be reinforced by the revitalization of the
riverfront begun by prominent leaders of the business
community. The land is currently owned by a number of
people and occupied by old manufacturing facilities.
When developed, the site can support 2,400 units of
moderate to luxury housing in high-rise structures
and townhouses. Estimated costs for the project are:
Land Acquisition
$ 25 million
Site Preparation
3 million
Construction
96 million
TOTAL
$124 million
2. Grayhaven Island
This site includes the 16-acre Grayhaven Island joined
to the mainland by a bridge and 9 more acres of the main-
land. A few large vacant homes are on the island, the
rest of the land is empty. Some 500 units of moderate
and luxury housing, high-rise and townhouses, can be
built on the site.
Land Acquisition
$ 1.7 million
Site Preparation
4 million
Construction
20 million
TOTAL
$ 22.1 million
(68)
3.
Windmill Point
These 14 acres of riverfront land adjacent to Grosse
Pointe Park are currently occupied by the U.S. Marine
Hospital and Lakeside Trailer Park. An extensive
riverfront park system begins just to the west of
this site.
The Marine Hospital will be declared surplus shortly
and the City of Detroit will request the property.
Along with the removal of the Trailer Court, the site
will accommodate 300 units of medium-to-upper-income
housing.
Land Acquisition and Relocation
$, 730,000
Site Preparation
80,000
Construction
12 million
TOTAL $ 12.8 million
DOWNTOWN SITES
High-rise, middle and upper-income housing in the Central
Business District is recommended on vacant or under-utilized
parcels. These units will be attractive because of their
proximity to business and commercial activities; conversely,
their added population will stimulate downtown business.
These buildings will also accommodate commercial space on
the lower floors, both as a convenience to residents and as
means of increasing the profit-making ability of the venture.
The sites which follow can all accommodate 20 to 30 story
high-rise apartments with one or two floors of commercial
space and multi-level parking garages to accommodate resi-
dents. Costs vary by land prices and size of structure
suitable.
1. Howard, Third, Lafayette, Lodge Expressway
Land Acquisition
$
.
5 million
Construction:
Apartment Building
9. 5 million
Garage
1.25 million
TOTAL
$11.25 million
2. First, Bagley, Cass, State
Land Acquisition
$
.45 million
Construction:
Apartment Building
8.7 million
Garage
$ 1.68 million
TOTAL
$ 10.83 million
(69)
3. Park, Clifford, Washington Boulevard, Grand River
Land Acquisition
$ 1.75 million
Construction:
Apartment/Commercial Building
13
million
Garage
2 million
TOTAL
$ 26.75 million
4.
West Adams, Witherell, Madison, John R.
Land Acquisition
$ 1.1 million
Construction
Apartment Building
10 million
Garage
1.5 million
TOTAL
$ 12.6 million
WOODWARD AVENUE
Woodward Avenue is a major artery through Detroit, linking
the Central Business District with the New Center -- Detroit's
"other downtown" -- and passing through along the way the
Medical Center, housing the nation's second largest medical
complex, and cultural center, home of the Library, Art and
Historical Museums, a major university, and numerous smaller
specialized institutes of higher learning. Separating these
areas of growth and vitality, however, are blocks of under-
utilized or abandoned commercial frontage. Redevelopment
of Woodward in this area would reinforce the projects
already underway. Sites which could be developed immediately
are the following:
1. Woodward between Forest and Garfield.
This site contains 1.8 acres. Because of its location
and the difficulty of providing ample parking, the site is
most suited for housing senior citizens or employees
of the medical institutions and the University.
These limitations dictate moderate rent levels. The
site can accommodate 150 units in a high-rise
structure.
Land Acquisition
$ 600,000
Site Preparation
70,000
Construction
4.25 million
TOTAL
$ 4.92 million
(70)
2.
Woodward between Canfield and Willis
This site of 1.5 acres is subject to the same limitations
as the one above and is thus best suited for the same
type of development. A building with 100 units of
moderate income housing is proposed.
Land Acquisition
$ 400,000
Site Preparation
65,000
Construction
4 million
TOTAL
$ 4.465 million
(71)
RENTAL PROGRAM FOR HUD OWNED HOMES
PROJECT DESCRIPTION
The purpose of this program is to provide moderate cost housing
while creating a mechanism for rapidly re-utilizing HUD-owned
abandoned houses. There are many families who prefer living
in single-family houses but who lack the resources and experience
to purchase and maintain them. At the same time, abandoned
houses remain in HUD's inventory for 18 months or more, inviting
vandalism and blighting neighborhoods. In this program, the
HUD-owned homes will be rehabilitated, rented out, and managed
by a private or quasi-private management entity.
The houses will be transferred to the corporation at no cost.
With grants for rehabilitation and subsidies for on-going
management, rents need only cover utilities, payments in lieu
of taxes, and any difference there may be between the subsidy
and the amount needed to provide suitable fees to the manage-
ment group. Proper underwriting would also assume returns
on the principal investment. Some of the houses will be
offered on a rent-option to buy basis, in order to increase
housing alternatives to Detroit residents.
It should be noted that HUD would otherwise have to repair
most of these houses, In this proposed manner, HUD will be
saving itself the cost of demolition, property managment,
staff costs entailed by holding and determining disposition
of properties, and various costs related to sale, such as
advertising and brokers' fees.
A final part of the program involves HUD setting up a mech-
anism to transfer houses to the corporation while still
occupied by families who are defaulting their mortgage
through no fault of their own and are not likely candidates
for reinstatement.
ACTIONS REQUIRED
1.
Obtain $6 million grant to subsidize management.
2.
Identify and obtain a guarantee of transfer of all
HUD-owned homes located in viable neighborhoods and
in repairable condition.
3.
Establish management entities capable of handling
the repair, rental, and on-going managment of the
houses.
4.
Obtain $40 million grant to finance rehabilitation.
5.
Restructure service programs to meet the needs of
renters rather than owners.
(72)
RESOURCES REQUIRED
Capital:
Rehabilitation Funds
$ 40 million
Manpower
Other Employment
Managment Subsidy
6 million
Total
$46 million
IMPACT STATEMENT
1. JOBS
Short-term construction
$ 1,000
Long-term retained or new
100
2.
PERSONAL INCOME GENERATED ANNUALLY
$ 1.5 million
3. TAXES
Local Income
$ 24,000
State Income
50,000
Real & Personal Property (in Lieu)
4.8 million
4.
Additional jobs and income will be generated becuase of
the multiplier effect of the new jobs created through
this project.
(73)
Eight Mile Rd.
Eight Mile
Rd.
GT.
R.R.
CHRYS
1, of
FREEWAY
LODGE
FREEWAY
HIGHLAND
PARK
HAMTRAMCK
FORD FREEWAY
JEFFRIES
FREEWAY
woodward
RIVET
SOUTHFIELD
FREEWAY
Jamelec
Lake
St.
Clair
Is's
Michigan
Belle
Fort
CANADA
FREEWAY
HUD-OWNED PROPERTIES
5-15 % hud-owned
over 15 % hud-owned
0
1
2
3
Scale
Miles
SINGLE-FAMILY HOUSING REHABILITATION
PROJECT DESCRIPTION
The older housing stock in Detroit is in serious need of
repair. Beyond the units which are or will soon become so
dilapidated that they must be torn down, there are some
100,000 single-family houses in various stages of deteriora-
tion. If these houses are to be prevented from becoming
hopelessly dilapidated and requiring costly replacement, a
massive rehabilitation program must be undertaken. The
purpose of this program is to upgrade the housing stock while
at the same time providing jobs for unemployed workers.
Many of the people living in deteriorated housing cannot
afford repairs and even for those who can, financing is
frequently not available or only available at exorbitant
interest rates because of the location or age of the house.
Therefore, the rehabilitation program will provide funds
for the purchase of materials through a grant from the
federal government and for the work to be carried out by
unemployed workers with the aid of federal manpower funds.
It is estimated that 15 percent of the workers will be
unskilled, 45 percent semi-skilled and 40 percent skilled.
In addition, neighborhood improvement in areas where a
substantial proportion of houses are undergoing rehabili-
tation are needed to assure the long-term viability of the
homes and the neighborhood. These improvements will in-
clude, as needed, street light replacements, street and
alley resurfacing, tree planting, and park development.
ACTIONS REQUIRED
1.
Establish a private or quasi-private development
corporation to manage this undertaking.
2.
Obtain $78 million manpower and materials grant
funds from the state and federal governments for
1st year.
3.
Develop and schedule program to provide various
neighborhood improvements.
RESOURCES REQUIRED
Capital:
Construction & Rehabilitation
Materials estimated at $1,000 per house
$ 20 million
Neighborhood Improvement
6 million
(74)
Manpower
Public Employment
$ 50 million
Other Employment
2 million
TOTAL
$ 78 million
IMPACT STATEMENT
1. JOBS
Short-term construction (public employment) 1,700
Long-term retained or new
125
2. PERSONAL INCOME GENERATED ANNUALLY $ 51.9 million
3. TAXES
Local Income
$
1 million
State Income
$ 3.5 million
Real & Personal Property
$ 1.28 million
4.
Several hundred additional jobs and several million
dollars of additional income will be generated be-
cause of the multiplier effect of the new jobs
created by this project.
(75)
REHABILITATION ASSISTANCE PROGRAM
PROJECT DESCRIPTION
A supplement to the rehabilitation of homes as a public
works program is the reduction of the cost to property
owners of such work in order to encourage them to main-
tain their properties in good condition. This program
is intended to promote private rehabilitation through
financial incentives and assistance. Multi-family build-
ings are included in this program as well as single-family
homes. The extension of assistance to landlords is intend-
ed to prevent rent from being raised above levels which
tenants can afford.
Elements of the program include:
1.
Provision of a free rehabilitation inspection service
to advise property owners of the scope and cost of
work needed.
2.
Rehabilitation grants to low-income property owners
who cannot affort any additional debts.
3.
Subsidies to lower the interest rates on rehabilita-
tion loans to roughly 3%.
4.
"Buy and fix" mortgage loans: mortgages which
provide funds for rehabilitation as a part of the
entire loan.
5.
A revolving loan fund for urban homesteading and
rehabilitation.
6.
Federal income tax deductions to permit the write-
off of maintenance and rehabilitation work over a
period of 10 years.
The program proposed will rehabilitate 7,000 units in one
year.
ACTIONS REQUIRED
1.
Obtain $24.275 million grant funds from the federal
government for rehabilitation loan subsidies, grants,
revolving loan fund, and inspection staff.
2.
Establish a mechanism to administer the resources.
3.
Obtain commitments from primary lenders for rehabili-
tation and mortgage funds.
(76)
RESOURCES REQUIRED
Capital:
Construction/Rehabilitation
Interest Subsidy Funds
$ 19.75 million
Rehabilitation Grants
4 million
Manpower:
Other Employment
Rehabilitation Advisory Staff
400,000
Program Staff
125,000
TOTAL
$ 24.275 million
IMPACT STATEMENT
1. JOBS
Short-Term Construction
800
Long-Term New or Retained
25
2. PERSONAL INCOME GENERATED ANNUALLY
$ 525,000
3. TAXES
Local Income
$ 8,000
State Income
$ 16,000
Real & Personal Property
$ 1 million
(77)
NEIGHBORHOOD SECURITY ASSISTANCE PROGRAM
PROJECT DESCRIPTION
A serious deterrent to living in Detroit is the negative sense
of security. In an effort to increase residents' sense of
security, technical assistance and security equipment will be
provided through this program. Block clubs and other community
organizations will be assisted in encouraging neighborhood
residents to participate in a mutual house and pedestrian
watching program. Resident groups will also be encouraged to
organize into cooperatives to do bulk-purchasing of home
security devices such as locks, alarms, decorative screening,
and identification engraving equipment.
ACTIONS REQUIRED
1. Obtain $5 million grant funds to match homeowners' purchases.
2. Obtain $.250 million grant for employment.
3. Assist block clubs and community organizations to encourage
neighborhood residents to participate in a mutual house and
pedestrian watching program.
4. Assist resident groups to organize into cooperatives for
the purpose of bulk-purchasing of home security devices.
RESOURCES REQUIRED
Capital
Matching Grants to Homeowners:
$ 5 million
Manpower
Public Employment:
.250 million
TOTAL: $ 5.250 million
IMPACT STATEMENT
1. JOBS
Short-term employment:
25
No long term employment impact is anticipated.
* Refer also to Public Safety Program for Revitalization.
(78)
DEMOLITION OF DANGEROUS BUILDINGS ON A NEIGHBORHOOD BASIS
PROJECT DESCRIPTION
In addition to the demolition of dangerous buildings
throughout Detroit, there is a need to deal on a broader
fashion with those areas in which HUD owns one-third or
more of the homes and there is massive abandonment. In
some neighborhoods, it may be more appropriate to clear
them out entirely and make them ready for new single
family housing development than to continue with scattered
rehabilitation activities. The purpose of this project
is to identify two to five such neighborhoods and to
guarantee funds for demolition of all appropriate proper-
ties and transfer all sites so generated for new construc-
tion.
ACTIONS REQUIRED
1. Seek $6 million grant funds for the demolition of all
buildings required.
2. Absolve all HUD liabilities on these homes so as to
incur no liens on the construction process.
RESOURCES REQUIRED
Capital:
Property Acquisition & Demolition
of 3,000 units:
$ 6 million
Transfer of Land:
1 million
TOTAL:
$
7 million
IMPACT STATEMENT
1. JOBS
Short-term construction:
150
2. PERSONAL INCOME GENERATED annually:
N/A
3. TAXES
Local Income:
N/A
State Income:
N/A
Real & Personal Property:
- $ 450,000
(temporary)
(79)
Transportation Program For Revitalizalization
I
I
solo
36818
13,000
"goss
Ollosl
13563
"II
30000
111
oil
I
TRANSPORTATION PROGRAM FOR REVITALIZATION
Vital to the social, economic, and physical revitalization of Detroit is
a transportation system which will provide for the accessibility of
people to jobs, shopping, culture and recreation; for the transfer of
goods; and for the interchange between economic activities within the
city and the region. The successful completion of the proposed indus-
trial, commercial, and housing projects will be impossible without
improvement of the transportation system in the Detroit region.
Detroit already has an efficient freeway system which provides for certain
elements of the transportation needs within the city. Detroit also has
an extensive rail spine for industrial development, as evidenced by the
concentration of industries along railroad corridors. In addition,
Detroit is an international port, as a result of its being located along
the St. Lawrence Seaway. The city is also served by two international
airports although the Detroit City Airport is limited to the type of air
traffic it can handle because of the minimal length of its runways.
With all of these assets, in terms of the total transportation system,
Detroit still has many problems resulting from the absences of an
efficient mass transit system. Because of the lack of such a system in
the area, the resultant regional structure is inefficient in terms of all
of the problems generally associated with urban sprawl: open space which
is best utilized for recreational or agricultural purposes continues to be
lost to urban development; the energy needs for the transportation of
persons within the region continues to grow; important centers, scattered
throughout the region, are without a rapid transportation connector
essential if they are to operate efficiently.
These problems are not unique to the Detroit region but are typical of
cities around the country. Transportation progress demonstrated in
Detroit will have broad applicability to the largest number of American
urban areas which, like Detroit, have been developed largely during the
auto age. But, while typical in many ways, Detroit has some particular
problems which demand attention now. The unavailability of automobiles
for a large number of Detroit's residents is one such problem. Over 11
percent of Detroit's population is 65 years or older, with certain
neighborhoods having one third of their population over 65 years. In
addition, 35 percent, more than 540,000 of Detroit's residents are less
than 20 years old, with nearly 300,000 being school children who are
totally dependent on walking or public transportation. Almost one-half
of Detroit's families have only one car available, and thus family
members are often dependent on public transportation during long periods
of the day.
In total, 28 percent of the households within the city have no automobile
available to them, while more than one-half of the households within the
inner 12 square miles of Detroit have no automobile available.
(80)
As a result of the unavailability of automobiles as well as the absence of
a high level public transit system, many Detroiters find their accessi-
bility to jobs very limited. In the central part of the city where some
areas have an unemployment rate of nearly 50 percent, and where there is
the highest incidence of persons with incomes below the poverty level,
less than 10 percent of the working residents are employed outside of the
city. Clearly, there is a real problem of accessibility by inner city
residents to suburban jobs since more than one-third of all of Detroit's
resident workers have jobs outside of the city.
In recent years, governmental, business and labor spokespersons within the
Detroit region have become totally convinced that a modern rapid transit
system would be a great stimulus for economic development in the Detroit
area. A plan for such a system has been prepared by the Southeast
Michigan Transportation Authority which addresses the needs of both Detroit
and the region. It is an essential part of this program for the revitali-
zation of Detroit that the first phase of this regional transit system be
implemented at once. In addition, we propose the immediate implementation
of a downtown people mover which will enhance the development potential of
the downtown area and serve as a connector between the existing commercial
center in downtown and the Renaissance Center which is under construction
on the riverfront.
As a supplement to totally new transportation systems such as rapid transit
and people movers, existing modes of public transportation will be ex-
panded upon and modified to achieve performance levels that will make them
vital and integral components of a multi-modal transportation system.
Buses will be placed in exclusive lanes on freeways and on surface arteries
to achieve an intermediate mode of travel known as Bus Rapid Transit
(BRT). In addition, commuter rail service will be developed utilizing
existing rail facilities to provide high performance transportation
between Detroit and outlying communities such as Pontiac and Ann Arbor.
The following described projects provide the basic ingredients of the
Transportation Program for Revitalization. Initial planning work is com-
plete; what remains is immediate implementation. It must be emphasized
that the transit system proposed herein is critical to the proper and
effective functioning of projects proposed in the industrial, commercial,
and housing sections. The creation of a complete and comprehensive transit
system is absolutely critical to Detroit's future. Without it, Detroit
residents will continually be denied access to employment; the city's
housing stock will continue to be abandoned; and commercial centers will
continue to decline. These transit proposals are not just technological
innovations in moving goods and people. These proposals represent
Detroit's opportunity to alter its economic structure for the future.
(81)
EMPLOYMENT OPPORTUNITIES GENERATED: TRANSPORTATION PROGRAM
TOTAL COST
PROJECT
(MILLIONS)
SHORT TERM
LONG TERM
TOTAL
Rapid Transit Phase I $
637.0
19,100
----
19,100
CBD People Mover
54.0
1,530
----
1,530
Bus Rapid Transit
26.0
600
----
600
Commuter Rail
12.0
400
----
400
(81A)
TOTALS $ 729.0
21,630
----
21,630
RAPID TRANSIT SYSTEM:
PHASE I
PROJECT DESCRIPTION
In 1974, the Southeastern Michigan Transportation Authority had ably
documented the needs and recommendations for a complete regional rapid
transit system. The total system proposed is very extensive, (i.e.,
74.7 miles at an estimated $2.05 billion). However, it is the first
phase of that system which will have the greatest economic impact on the
City of Detroit most immediately in terms of construction activity.
Phase I (City of Detroit) consists of the construction of a high-level
rapid transit system consisting of three lines covering approximately
10.7 miles. The lines considered for first-phase construction are:
Woodward Avenue line, stretching from downtown Detroit to Grand Boulevard;
the Gratiot line, stretching from downtown Detroit to a location near the
Gratiot I-94 interchange; and the third line is approximately along
Michigan Avenue from downtown Detroit to a location near West Grand
Boulevard.
ACTIONS REQUIRED
Approval and funding for Phase I is needed now independent of approval of
the entire regional system.
1.
Final State approval of the Governor's $175 million transportation
program. As now outlined, this program will supply 10 percent
($61.3 million), one-half local share of the total funding
necessary plus an additional $6.0 million for preliminary engineering
and engineering design start-up.
2.
Federal (DOT) authorization of the standard 80 percent ($504.8
million) funding of transportation projects.
3.
Local funding of the remaining 10 percent ($61.3 million) share.
If authorization were immediately forthcoming, it is estimated that some
preliminary construction could be underway in as soon as one year from
the time of authorization and that the system could be fully operational by
1980.
RESOURCES REQUIRED
Preliminary Engineering Study
$ 6.0 million
Construction (including detailed engineering
and land acquisition)
631.0 million
TOTAL (Jan, 1979 Dollars)
637.0 million
(82)
IMPACT STATEMENT
1. JOBS
Short-term construction and engineering jobs
19,100
2. PERSONAL INCOME GENERATED annually
$382.5 Million
3. TAXES
Local Income:
$ 7.65 million
State Income:
$14.91 million
Real & Personal Property:
Publicly owned system
4. Because of the multiplier effect, several thousand additional jobs
and several thousands of dollars of additional income will be
generated.
LONG TERM
With the advent of a rapid transit system in the City of Detroit, popula-
tion and activity would be encouraged into higher density development along
the rapid transit corridors, thereby increasing the population of the city
and lessening the use of energy by the private automobiles.
The first phase of rapid transit in the City of Detroit will have a number
of long-term benefits to the economy and user.
1. Convenient access to major activity centers that are oriented to the
system.
2. Faster commuting. With less load on overloaded streets, the user will
have an alternative to long hours on crowded expressways, going to and
from work. More living time.
3. Commuting costs will be fractional, compared to the cost of stop-and-go
driving in heavy traffic, plus parking.
4. Easier access to business and entertainment areas. When use of a car
is not possible, user will still be able to get around easily and
safely.
5. Revitalization. Quick convenient and inexpensive access to the city
will be a positive factor in implementing the plans now underway to
renew Detroit.
The location of more businesses and retail establishments in the downtown
area is now discouraged by the fact that parking spaces eat up a great
deal of land area which could be better utilized for buildings, and the
cost of land in the downtown area makes it very difficult to use large
acreage for parking spaces. An example of the difficulties the city faces
is the Renaissance Center, the $600,000,000 complex near the CBD now under
construction, will need greater accessibility than can reasonably be
expected with highways alone.
(83)
It is estimated that at completion, the Renaissance Center will employ some
40,000 people on a 33-acre parcel of land. Presently, over 65 percent of
workers in downtown Detroit get to their jobs by automobile. The approxi-
mate number of persons in each automobile during the work-commuter hours
is 1.5. A rough estimate of the number of automobiles which would be
heading toward the Renaissance Center alone would be some 17,000 cars.
When one takes into account that it takes approximately one acre of land
to park 200 cars, we are then talking approximately 85 acres of land
needed to park the 17,000 automobiles which may be expected at the
Renaissance Center of 33 acres.
Rapid transit will probably be the major key factor determining the
success of this important new complex.
6. New Employment Opportunities. Thousands of new jobs will be created
as the system is constructed in stages, over a period of years. In
addition to construction, the operation of the system will also
provide many new jobs, the current estimate is 410 new jobs.
7. Added Real Estate Value. New mass transit can assist new, valuable
real estate development on adjacent property. Rapid transit in the
heart of the central city is the key that links the revitalization of
major cities such as: Toronto, Montreal, San Francisco, and
Washington, D.C.
8. No displacement of existing neighborhoods. The system as proposed
will utilize existing highway and railroad rights-of-way, SO that
there will be no need to disrupt established areas.
(84)
Eight Mile Rd.
Eight Mile
Rd.
GT.
R.R.
FREEWAY
CHRYSLER
G.T. R.R.
LODGE
FREEWAY
HIG AND
FREEWAY
RK
HAMTRAMCK
JEFFRIES
FREEWAY
woodward
GREAT
PLEASE
R.R.
Gration
SOUTHFIELD
OF
FREEWAY
Jefferson
Lake
(84A)
St.
Clair
Isle
Belle
Michigan
CANADA
TROIT
PROPOSED SEMTA RAPID TRANSIT
of R.R.
phase I
HUHINI
1990 system
0
1
2
3
Scale
Miles
BUS RAPID TRANSIT
PROJECT DESCRIPTION
Bus service will be extensively modified along four travel corridors to
produce high performance characteristics in bus transportation intended to
attract patronage in addition to the transit dependent. Objectives of this
modified mode of transportation are to improve convenience, economy and
comfort of public transit and to reduce travel time between destinations.
Such service would involve increased frequency, modernized equipment,
establishment of traffic flow devices such as exclusive lanes and
preferential signals, and provision of park and ride facilities.
The four corridors to be upgraded to intermediate level service known as
bus rapid transit include: 1) Gratiot, CBD to 8 Mile Road; 2) Jeffries
Freeway, CBD connecting to Northland along Greenfield; 3) Crosstown, within
the I-94 corridor from Gratiot to Dearborn; 4) 8 Mile Road, from Northland
to Eastland.
ACTIONS REQUIRED
1. Final State approval of the Governor's $175 million transportation
program. As now outlined, this program will supply 10 percent
($2.6 million), one-half local share of the total funding necessary.
2. Federal (DOT) authorization of the standard 80 percent ($20.8 million)
funding of transportation projects.
3. Locally produced funding of the remaining 10 percent ($2.6 million)
share.
With project financing achieved, certain components of the bus rapid
transit program would be operational within one year.
RESOURCES REQUIRED
Construction (including engineering
$ 20.0 Million
and land acquisition)
Rolling Stock
6.0 Million
Total
$ 26.0 Million
IMPACT STATEMENT
Short-Term
1. JOBS
Short-term construction and
engineering jobs
600
2. PERSONAL INCOME GENERATED ANNUALLY
$12.0 Million
(88)
3. TAXES
Local Income
$200,000
State Income
$450,000
4. Because of the multiplier effect, several thousand additional
jobs and several thousand dollars of additional income will be
generated.
Long-Term
Bus rapid transit will fill a need in the spectrum of mass transit services
to be provided as part of the transportation program for revitalization.
It will be longer range and more direct than local feeder bus service, but
it will have more flexibility and will service areas not serviced directly
by rapid transit.
Bus rapid transit will be a viable alternative to the automobile and will
contribute to energy conservation through the choice of commuters not to
use their own automobiles.
Bus rapid transit will provide for the better utilization of densely
developed areas such as downtown Detroit by the delivery of people and not
automobiles.
Bus rapid transit will become a desirable means of commuting for more
people as costs of owning, maintaining and operating an automobile increase
and as traffic congestion and parking costs become more intolerable.
(89)
COMMUTER RAIL
PROJECT DESCRIPTION
The establishment of a viable commuter rail system making inter-city
commuting convenient and economical will serve as a complementary mode of
mass transportation to the rapid transit and bus rapid transit systems.
Commuter rail can be established quickly and inexpensively and can work in
conjunction with the first phase usable segment of rapid transit in a
meaningful way even if future segments take many years to complete.
The immediate program proposed is the upgrading of two minimal commuter
operations, Detroit to Pontiac and Detroit to Ann Arbor. Under study will
be two additional rail lines currently not in commuter use that may
eventually be added to the commuter rail system connecting Detroit to
Mt. Clemens and Detroit to Rockwood.
ACTIONS REQUIRED
1. Final State approval of Governor's $175 million transportation program.
As now outlined, this program will supply 100 percent of the total
funding necessary.
RESOURCES REQUIRED
Detroit - Pontiac: (addition of a fifth
$5 Million
train, upgraded equipment and parking lots)
Detroit - Ann Arbor: (acquisition of new
$7 Million
equipment, extension of line to CBD and
temporary CBD terminal at Third Avenue)
TOTAL
$12 Million
IMPACT STATEMENT
Short-Term
1. JOBS
Short-term construction and engineering jobs
400
2. PERSONAL INCOME GENERATED annually: $7 million
3. TAXES
Local Income
$140,000
State Income
$273,000
4. Because of the multiplier effect, several thousand additional
jobs and several thousands of dollars of additional income will
be generated.
(90)
Long-Term
Rail commuter service has the capability of providing relatively high
capacity (at moderately close intervals) with a low cost per-passenger-
handled, and an efficiency in energy consumption unmatched by most
motorized modes.
Commuter rail could provide a relatively low cost test of the demand for
high volume transit and provide a significant public benefit during the
years of development required by a rapid rail network. The experience
of other cities, such as Toronto, is that commuter rail can be a popular,
inexpensive form of public transportation.
(91)
TO PONTIAC
Eight Mile
Rd.
Eight Mile Rd.
CHRYSLER
&
GLT
FREEWAY
LODGE
FREEWAY
HIGHLAND
PARK
HAMTRAMCI
FORD FREEWAY
JEFFRIES
FREEWAY
Woodward
Grand RIVET
G.T. RR.
R.R.
(91A)
SOUTHFIELD
FREEWAY
Gratior
OF
Jefferson
Lake
St
Clair
Isle
Michigan
Belle
Fort
TO
ANN
CANADA
ARBOR
TROIT
PROPOSED COMMUTER RAIL SERVICE
1 FREEWAY G
upgraded existing service
IIIIIIIII
new service to be studied
TO ROCKWOOD
0
1
2
3
Scale
Miles
A
11111
11119
Public Safety Program for Revitalization
PUBLIC SAFETY PROGRAM FOR REVITALIZATION
Little more than one year ago, the "pushers, the rip-off
artists, and the muggers" were invited to leave the City of
Detroit. As the year end reports were tabulated, Detroit
residents read that killers, robbers, and rapists operated
on a bigger scale in 1974. Some even say the biggest growth
industry in Detroit is crime. The media, in its reports, how-
ever, fails to dramatize the fact that crime is not peculiar
to Detroit, but that crime is a national phenomena and no
major city has been able to alter its momentum effectively.
Safe communities, or communities perceived to be safe, en-
courage investment by business and industry, other factors
being equal. Knowing that the crime factor and the growth
and expansion of economic opportunities are intertwined, the
reduction of crime remains a high priority for every major
city.
Crime has not only affected the physical and psychological
welfare of the Detroit resident, but it has dramatically
affected business attitudes and has proved an obstacle to
future growth and development. And without growth, Detroit's
future is its past.
Detroit recognizes its commitment to the safety of all its
residents and has accepted the challenge by instituting forth-
right, aggressive policies and actions to reduce the incidence
of crime. It is naive, however, to think that, with its
meager resources, Detroit can do it alone - or that any major
city can combat a national phenomena without support from the
federal government paralleling the magnitude of the problem.
In Detroit, a city with strong neighborhood orientations,
effective crime reduction programs are now propositioned on
the concept of a People's Police Department - a police depart-
ment that is responsive to the needs of the community and re-
spected and trusted by the residents served. Although an old
concept, it is one that was almost lost to modern day tech-
nologies and urban sprawl.
A Civilian Board of Commissioners sets policy. The Police
Reorganization Plan, designed to improve police operations,
has stressed the decentralization of special units to achieve
the goals of greater police visibility and improved patrol
techniques. Examples of improved techniques: Helicopters,
equipped with spotlights, are used for surveillance and pro-
vide speedy response to business establishments equipped with
rooftop strobe lights activated by alarm systems; Random bus
patrols and special signalling devices are utilized to deter
vandalism, robbery, and assault on city busses; Installation
of 12 and 6 channel radios has improved communication between
dispatchers and patrol officers; Increased efficiencies have
resulted from the implementation of the CARES (Computer Aided
Response to Emergency Situation) program and the utilization
(92)
of prep radios for data retrieval from the National Crime
Information Center and the Law Enforcement Intelligence Network;
The establishment of a second Homicide Squad to investigate and
direct all energies to the resolution of felony homicides has
strengthened police capabilities and promises to impact on the
high homicide incidence.
Mini police stations, extensions of police precincts, serve to
increase police presence within city neighborhoods and enhance
cooperative attitudes between police and community residents
in the course of providing routine police services. Fifteen
mini police stations have been established in senior citizen
complexes, multi-use neighborhood centers, and in downtown
Detroit. To date, more than 300 block clubs, business and com-
mercial associations, and citizen groups throughout the city
have requested the institution of mini police stations within
their respective communities. By December 31, 1975, 55 mini
police stations will be operational throughout the city.
A People's Police Department is only as effective as the per-
sonnel implementing its policies. It is the policy of the
current Administration that city departments be representa-
tively staffed, especially the Police Department. Only 18% of
the 5,500 police personnel are minority group members. At the
present rate of attrition, given that every new hiree were to
be a minority person, by 1990 the composition of the Police
Department would reflect 1975 demographics -- 50% minority
population. Aggressive affirmative action policies have there-
fore been instituted. Furthermore, Detroit proposes immediate
federal financing of 1,000 police personnel for a period of
36 months at a cost of $59.259 million. (See Employment Pro-
grams for Revitalization.)
One thousand additional police personnel would provide police
officers in sufficient numbers to impact on the crime problem
in a significant manner and would expedite the attainment of
affirmative action goals.
Police operations are only one facet of a criminal justice sys-
tem that has been under close scrutiny within the last several
years. Antiquated facilities and inadequate alternatives are
proferred as the means to rehabilitate society's offenders.
Within the Detroit Plan, programs for a construction of a new
courthouse, a new Wayne County jail, and a juvenile home are
proposed. Additional capital improvement projects, which will
provide the necessary equipment to effectuate crime reduction,
are detailed in the following pages. These remedies by no means
address the more serious social problems attributed to the
causes of crime; they do, however, speak to a recognition of
some basic structural inadequacies.
(93)
Detroit is not insensitive to the social concerns nor to
the root causes of social disruption that major American
cities are now experiencing. This Plan, however, has taken
a limited perspective and has addressed one aspect of the
survival processes of municipalities. Crime as a national
phenomena must be addressed by any city that strives to
maintain growth and development. And cities must obtain
the necessary support and assistance from all levels of
government in order to impact the problem.
(94)
PUBLIC SAFETY PROGRAM FOR REVITALIZATION: SUMMARY
TOTAL COST
PROJECT
(IN MILLIONS)
EMPLOYMENT GENERATED
1,
Trainee Police Officers
$ 59.259 *
1,000
2. New Courthouse
70.0 **
1,900
3. New Wayne County Jail
40.0 **
1,200
4. Neighborhood Sec. Assistance
5.0 ***
25
5. Central Public Safety Hdqtrs.
60.0
3,500
6. Police Precinct Stations
21.0
5,000
7. Combined Agency Narcotics Enforcement
2.558
-----
8. Communications Equipmt. Update
4.182
-----
(94A)
9. Security Systems Detail
.430
20
10. Mini Station Community Service Officers
7.26
550
11. Mini Stations Co-op Employment
.492
220
12. Special Security Force
3.737
250
13. Youth Home - Juvenile Court Expansion
20.0
475
Total
$119.66
10,190
*
Cost and employment generated are reflected in Employment Program for Revitalization.
**
Cost and employment generated are reflected in Comm'l Program for Revitalization.
***
Cost and employment generated are reflected in Housing Program for Revitalization.
CENTRAL PUBLIC SAFETY HEADQUARTERS
PROGRAM DESCRIPTION
The proposed Central Public Safety Headquarters will serve
as the nucleus of the Detroit Police Department, Detroit
Fire Department and Emergency Medical Service. This facility
will replace the current antiquated facilities of both the
Detroit Police and Fire Departments as well as bring together
similar functions, thus eliminating duplication of facilities
and unnecessary expenditures. For example, one below-ground
level will contain a central communications facility, while
a second below-ground level will contain all of the city's
computer operations.
RESOURCES REQUIRED
Capital
Design, Engineering, Construction
$60 million
Total:
$60 million
IMPACT STATEMENT
1.
Jobs
Short-term construction and engineering
jobs
2,000
Long-term (retained or new jobs)
1,500
2.
Personal Income generated annually
$9.5 million
3. Taxes
Local income
$190,000
State income
$380,000
Real and personal property
$ 7,000
4.
Because of the multiplier effect, several thousand additional
jobs and several thousands of dollars of additional income
will be generated.
(95)
DETROIT POLICE DEPARTMENT PRECINCT STATIONS
PROGRAM DESCRIPTION
Seven of Detroit's 13 precinct stations are currently in
desperate need of new modern police and multi-use facilities
so that they can meet the demands made of them.
At the present time, these precinct stations do not possess
adequate facilities for the conduct of day-to-day police
work. Detention facilities are cramped and outdated, there
is not sufficient space to accommodate the current demands
of the investigative personnel, uniformed personnel, admin-
istrative staff or desk personnel. As a result of the
Department's reorganization the precinct station is constantly
being given additional duties and responsibilities, many of
which require additional space.
In addition to the above mentioned conditions, the changing
role of the precinct station makes it necessary to have
multi-use facilities to assist in fostering improved com-
munity relations. With proper facilities, a precinct station
can be the center of community action, accommodate block
club meetings, hold police-community get-togethers, and even
offer recreational activities.
RESOURCES REQUIRED
Capital
Design, engineering construction
$3 million
Seven stations
$21 million
Total
$21 million
IMPACT
1. Jobs
Short-term construction and engineering
1,000
Long-term (retained or new) jobs
4,000
2.
Personal income generated annually
$60 million
3. Taxes
Local income
$1.2 million
State income
$2.4 million
Real and personal property
$8,000
4.
Because of the multiplier effect, several thousand additional
jobs and several thousands of dollars of additional income
will be generated.
(96)
COMBINED AGENCY NARCOTICS ENFORCEMENT (C.A.N.E.)
PROS RAM DESCRIPTION
Discussions are currently underway between federal, state
and local law enforcement agencies to launch a unified effort
in the investigation, indictment and prosecution of drug-
related criminal activity (C.A.N.E.).
Since the majority of narcotics traffic in Michigan is located
in the Detroit Metropolitan Area, the Detroit Police Department
will be responsibile for supplying an appropriate amount
of manpower and resources toward attempting to combat the
narcotic problem.
To fight narcotics properly takes many dollars for investments
(narcotic buys), sequestering witnesses, buying of information,
and purchasing sophisticated equipment.
RESOURCES REQUIRED
FIRST YEAR
SECOND YEAR
THIRD YEAR
Personnel
$ 504,010
$ 528,585
$ 554,414
Fringe benefits .for
Civilians @ 37%
186,483
195,576
205,133
Operating Expenses
1,484,800
1,534,800
1,584,800
Equipment
383,560
Grand Total
$2,558,853
$2,258,961
$2,344,347
IMPACT
The impact of this program is not properly measured in terms of
jobs and revenues generated. Rather, the more accurate gauge
will be in terms of the reduction of narcotics in the city.
(97)
COMMUNICATIONS EQUIPMENT UPDATE
PROS RAM DESCRIPTION
Under this project, funds would be made immediately avail-
able to upgrade the department's ability to provide fast
efficient communications between line units and the necessary
back-up and supportive complexes. The installation of
mini-computers within the patrol vehicle would greatly reduce
the amount of time necessary in completing the activity
of a radio run. It would also provide responding officers
with a greater degree of knowledge of a particular situation
as well as freeing their time for response to other requests
for service. Vehicle monitoring devices that pinpoint patrol
unit locations will greatly reduce dispatch time as the closest
available unit will be immediately known. These factors
will all increase the propensity of immediate apprehension.
RESOURCES REQUIRED
1. Hardware design and installation
$3.782 million
2. Repair contracts
.400 million
Total
$4.182 million
M PACT
Jobs and revenues would not be directly observed. Mid-term
and long-term impact would result from reduced numbers of
the incidents of crime.
(98)
SECURITY SYSTEMS DETAIL
PROS RAM DESCRIPTION
This project will establish a cadre of top flight security
systems experts from within the Detroit Police Department
and private industry to assist in the planning and eval-
uation of the total security system for all high rise and
major construction projects in Detroit. This project
will secure from private industry security experts in
electronics, alarm systems, and security operations to work
full time on the details of each system. Full time Detroit
Police Officers with expertise in communications, training,
and patrol will be loaned to the project to provide liaison
and ideas to the project.
RESOURCES REQUIRED
Wages and Fringes - 93%
$400,000
Administrative Costs - 5%
21,500
Material Costs - 2%
8,600
Total
$430,100
IMPACT
1. Jobs - short-term (12 months)
20
2. Personal income generated
$280,000.
3. Taxes:
Local @ 2%
$5,600
State @ 3.9%
$10,920.00
4. Income multiplier 7 X $9,000 X 1 year = $63,000
5. Employment Multiplier 7 jobs X 1 year
6. Long term (two years and beyond) - fewer criminal activities
within the complex
(99)
MINI-STATION - COMMUNITY SERVICE OFFICERS
PROG RM DESCRIPTION
In this project all 55 mini-stations projected for the end
of 1975 would be staffed with Community Service Officers.
A Community Service Officer would be hired from the ranks
of the underemployed and unemployed. They would be trained
to go out into the area of the mini-station and assist
citizens with Project Identification as well as serving to
assist persons in securing necessary city, state and federal
services. They would also survey their neighborhood for
obvious safety and health hazards thus bringing such con-
ditions to the attention of the appropriate city agency.
They would perform the necessary follow-up activity to insure
that these requests were fulfilled. The project would serve
as a stepping stone to full time employment in the civic
or private sector.
RESOURCES REQUIRED
Wages and fringes - 90%
$5.94 million
Administrative cost - 5%
.66 million
Material Costs - 5%
.66 million
Total
$7.26 million
и PACT
1. Jobs - short term (12 months)
550
2. Personal income generated
$4.4 million
3. Taxes:
Local @ 2%
$88,000
State @ 3.9%
$171,600
4. Income multiplier - 165 jobs X $9,000 x 1 year = $1,485 million
5. Employment multiplier - 165 jobs X 1 year
(100)
MINI STATIONS CO-OP EMPLOYMENT
PROJECT DESCRIPTION
This project would be a cooperative effort between the
Detroit Police Department and the Detroit Board of Education.
In it, students in the Distributive Education Co-op and
Office Co-op programs in Detroit's senior high schools
will be utilized 20 hours per week in the mini stations to
provide clerical assistance. These students have flexible
schedules and can be available for work during most hours
of the day and evening. This on-the-job training would
be a valuable experience to the student because he can
practice some of the skills he has learned in the class-
room. It will also be valuable to have work experience
when applying for future employment after graduation. As
well as providing Detroit with more potential police officer
candidates.
RESOURCES REQUIRED
<
Wages and fringes - 93%
$457,600
Administrative Costs - 5%
24,600
Materials Cost - 2%
9,850
TOTAL
$492,050
IMPACT STATEMENT
1. Jobs - short term (12 months)
220
2. Personal income generated
$457,600
3. Taxes:
Local @ 2%
9,152
State @ 3.9%
17,846
4. Income multiplier - 70 jobs X 1 year X $3,000 = $210,000
5. Employment multiplier - 70 jobs X 1 year
(101)
SPECIAL SECURITY FORCE
PROS RAI DESCRIPTION
Under this project, a private guard type security force
would be hired to patrol sites of major new construction
and identified renovated housing areas during the non-
working hours of construction to prevent losses from
vandalism and theft. It is anticipated that the guards
would be both highly mobile and operate from fixed position.
The guards would be hired, trained and supervised by the
Detroit Police Department with bases of operation at the
precinct stations or the mini-stations. This project is
contingent upon the adoption of several of the major con-
struction plans previously detailed.
RESOURCES REQUIRED
Wages and fringes - 85%
$3.25 million per year
Administrative cost - 5%
.1625 million per year
Material Cost - 10%
.325 million per year
Total
$3.7375 million per year
M PACT
1. Jobs - project life (5 years)
250
2. Personal income generated
$2.5 million
3. Taxes
Local @ 2%
$50,000
State @ 3.9%
$97,500
4. Income multiplier - 75 jobs X $9,000 X 1 year = $675,000
5. Employment multiplier - 75 jobs X 1 year
(102)
YOUTH HOME - JUVENILE COURT EXPANSION
PROJECT DESCRIPTION
The present Juvenile Administrative Court facility and
correctional institution located at Russell and East
Forest is near capacity. It is expected that current
trends in the increase in jury trials and other time
and space consuming practices related to juvenile
justice will continue. This was confirmed by the
recent addition of judges to this court by the State
Legislature. Therefore, it is necessary to expand
the present facility and adjaeent services such as
parking.
ACTION REQUIRED
1. Obtain $20 million Federal grant funds for the
expansion of the present facility and associated
services.
2. Acquire block bounded by Hancock, Russell, East
Warren and Rivard and transfer ownership to
Wayne County.
3. Transfer block bounded by Hancock, Russell, East
Forest and Riopelle from Wayne County to the
City of Detroit.
4. Design and construct new Youth Home.
RESOURCES REQUIRED
Capital:
Land Acquisition
$ 1 million
Design and construction
19 million
TOTAL
$ 20 million
M PACE
JOBS
Short-term construction and
engineering jobs
475
Long-term service retained and new 175
PERSONAL INCOME GENERATED ANNUALLY
$ 7.8 million
(103)
TAXES
Local Income
$ 156,000
State Income
$ 309,200
Property, Real and Personal
$ 9,000
(104)
.........................
coven
sney,
Proqram Costs Summary Statements
FINANCIAL STRATEGY FOR REVITALIZATION
There is a crisis in the nation's capital market. One of
the most critical problems facing both business and the
nation's cities is now they will raise the capital needed
to finance new plants, equipment and facilities. Business
and government rely on the money market for capital. In
today's economy, with inflation, stagnation, high unemploy-
ment, high interest rates, and the depressed stock market,
neither businesses nor cities can look to traditional sources
of capital.
If business is to remain viable and competitive, new
sources of capital must be made available. Current rigid
EPA standards, coupled with the need to become self-
sufficient in energy, have increased the use by business
and utilities of the bond market, to finance the costs of
their newly required facilities. The stock market is stagnant.
On December 6, 1974, the Dow Jones averages reached a low of
577.60, the lowest point since 1962. As a result, business
now aggressively competes with Cities for the limited supply
of capital, thus aggravating the crisis in the nation's cities.
With the depressed stock market and interest rates at high
levels, business has had to abandon or delay, indefinitely,
plans for new plants and facilities. The record high interest
rates experienced in 1974 and demand for capital have made it
impossible, for all but the very high rated Companies and Cities,
to sell bonds. Cities such as Detroit and New York have been
forced to withdraw bond issues from the market because of the
lack of demand. Detroit is unable to market a $30 million issue
to finance the first phase of a new hospital. Because of market
conditions, a vital construction project estimated to cost $80
million has been indefinitely postponed, dampening an already
depressed construction industry.
The demise of cities is imminent if they are unable to
finance the replacement of vital municipal facilities needed
for the health and welfare of its citizens. This cannot
be permitted to happen.
There needs to be a general economic program for a gradual
but determined reduction of interest rates. The enclosed
program proposals are designed primarily to meet the needs of
Detroit and other cities and serve to relieve the pressure on
the long-term capital market which will indirectly aid and
assist business in the satisfaction of its capital needs.
(105)
The Federal Government is called upon to intercede and to
provide to Cities the necessary capital, a combination of
direct grants in aid, interest-free loans, debt guarantees,
and low-interest public facility loans, to finance develop-
mental projects.
The financing methods proposed above are not new. They have
been tried and found viable. What is new is that they have
never been combined with a project of this magnitude, de-
signed to meet the immediate needs of cities and preserve
this nation's greatest assets - its cities.
In the following pages, budget and impact summary statements
are provided to present a more comprehensive treatment of
federal and state assistance proposed.
(106)
PROGRAM COST SUMMARY STATEMENT
PROGRAMS FOR REVITALIZATION: SUMMARY STATEMENT
(Costs Computed in Millions)
PUBLIC
EMPLOYMT.
INDUSTR.
COMM'L.
HOUSING
TRANSP.
SAFETY
TOTAL
FEDERAL SHARE
$555.10
$517.0
$297.5
$522.825*
$558.9
$119.66
$2,570.987
STATE SHARE
----
9.0**
10.0
212.7***
96.0
----
327.700
Local Share
74.0
74.0
TOTAL COST (IN MILLIONS)
$555.10
$526.0
$307.5
$735.525
$729.0
$119.66
$2,972.787
PERSONAL INCOME GENERATED
400.568
542.900
202.100
59.425
432.100
85.300
1,722,393
PROPERTY TAX GENERATED
----
103.50
14.240
24.430
----
(107)
.024
CITY INCOME TAX GENERATED
8.019
8.585
3.859
1.136
8.602
1.706
26.329
STATE INCOME TAX GENERATED
15.616
20.095
8.338
3.758
16.826
3.401
56.978
FEDERAL INCOME TAX GENERATED
40.057
54.290
20.210
5.943
43.210
8.530
172.239
TOTAL NUMBER JOBS GENERATED
40,600****
48,476
23,120
9,160
21.630
10,190
153.176
PERCENT RETURN IN FEDERAL
7.2%
10.5g
6.8g
1.5g
7.7%
7.1g-
6.7%
TAX DOLLARS FROM FEDERAL SHARE
*
$215 million mortgage guarantee
**
$ 2 million grant from Huron-Clinton Metro Authority
***
$200 million mortgage guarantee
**** 30,000 retraining slots included in total
EMPLOYMENT PROGRAM FOR REVITALIZATION
1.
MANPOWER RETRAINING SERVICES FOR THE STRUCTURALLY
UNEMPLOYED
2.
HEALTH CARE SERVICES
3.
HOUSING CODE INSPECTION
4.
EXPANSION OF LIBRARY SERVICES
5.
PARKS AND RECREATION ACTIVITY
6.
YOUTH SERVICES
7.
TRAINEE POLICE OFFICERS
8.
PUBLIC SCHOOLS
9.
COMMUNITY AGENCIES AND ORGANIZATIONS
10.
ENVIROM.ENTAL BEAUTIFICATION
EMPLOYMENT PROGRAM FOR REVITALIZATION: SUMMARY STATEMENT
PERSONAL
PROPERTY TAX
TOTAL
INCOME
REAL AND
CITY TAX
STATE TAX
TOTAL COST
EMPLOYMENT
TRAINING
GENERATED
PERSONAL
GENERATED
GENERATED
PROJECT
(ILLIONS)
GENERATED
POSITIONS
(MILLIONS)
(MILLIONS)
(MILLIONS)
(MILLIONS)
1. Manpower Retraining Services
for Struc. Unemployed
$439.35
30,000
$309.6
$
$.620
$ 1.207
2. Health Care Service
15.0
1,500
12.495
-----
.250
.487
3. Housing Code Inspection
5.0
500
4.165
-----
.083
.162
4.
Expansion of Library Services
4.0
400
3.332
-----
.067
.130
5.
Parks and Recreation Activity
5.0
500
-----
4.165
-----
.083
.162
(108)
6.
Youth Services
5.0
500
-----
4.165
-----
.083
.162
7.
Trainee Police Officer*
19.75
1,000
-----
11.0
-----
.220
.429
8.
Public Schools
37.0
3,700
-----
30.821
-----
.616
1.202
9.
Community Agencies and
Organizations
10.0
1,000
8.33
.167
.325
10.
Environmental Beautification
15.0
1,500
-----
12.495
.250
.487
TOTAL
$555.10
10,600
30,000
$400.568
$
$2.439
$4.753
*Funding for three years = $59.26 million
INDUSTRIAL PROGRAM FOR REVITALIZATION
1.
RIVERFRONT DEVELOPMENT
2.
INDUSTRIAL CORRIDOR DEVELOPMENT
3.
SYSTEM OF INDUSTRIAL PARKS
4.
RECYCLING OF EXISTING INDUSTRIAL PLANTS
5. MECHANISM FOR INCUBATING INDUSTRIES
6.
EXPANSION OF CITY AIRPORT
7.
DETROIT MEDICAL CENTER
8.
DETROIT G ENERAL HOSPITAL
9.
WATER MAIN AND SEWER RENOVATION
10. RESOURCE RECO VERY SYSTEM
INDUSTRIAL PROGRAM FOR REVITALIZATION: SUMMARY STATEMENT
PROPERTY TAX
CITY TAX
STATE TAX
TOTAL COST
TOTAL
INCOME GENERATED
PROJECT
REAL/PERSONAL
GENERATED
GENERATED
(MILLIONS)
EMPLOY, GENERATED
(MILLIONS)
(MILLIONS)
(MILLIONS)
(MILLIONS)
1.
Riverfront Development
$ 9.0
5,100
$ 50.0
$ 15.0
$ .8
$ 1.6
2.
Industrial Corridor
17.3
9,100
110.0
21.0
1.8
4.0
3.
System of Ind. Parks
36.0
10,000
100.0
20.0
1.6
3.9
4.
Recycling Existing Ind. Parks
115.0
12,500
125.0
25.0
2.0
4.875
5.
Mechanism for Incubating Ind.
92.0
6,200
100.0
20.0
1.5
3.5
(109)
6.
Expansion of City Airport
27.1
150
2.0
0.5
0.05
0.120
7.
Detroit Medical Center
80.0
2,500
25.0
1.0
0.4
1.0
8.
Detroit General Hospital
80.0
2,500
25.0
1.0
0.4
1.0
9.
Water Main & Sewer Renovation
29.0
226
1.9
(Revenue = increased assessment
10.
Resource Recovery System
40.6
200
4.0
()
.035
0.1
TOTAL
$526.0
48,476
$542.9
$103.5
$ 8.585
$20.095
INDUSTRIAL PROGRAMS FOR REVITALIZATION: COST SUMMARY
DEMOLITION
PROPERTY
SITE
AND
AcQ,
CONSTRUCTION
IMPROVEMENT
PROJECT
CONSTRUCTION
MANPOWER
(MILLIONS)
(MILLIONS)
(MILLIONS)
(MILLIONS)
MAINT
(MILLIONS)
(MILLIONS)
1. Riverfront Development
$ 2.0
$ 7.0
$
$
$
$---
2. Industrial Corridor Dev.
10.0
7.3
---
---
---
---
3. System of Ind. Parks
24.0
----
10.0
---
2.0
---
4.
Recycling Existing
Ind. Plants
10.0
----
---
105.0
---
---
(110)
5.
Mechanism for Incubating
Ind.
30.0
50.0
---
---
12.0
----
6.
Expansion of City Airport
26.0
---
---
---
1.1
---
7.
Detroit Medical Center
5.0
75.0
---
---
---
----
8.
Detroit General Hospital
--
80.0
---
---
---
---
9. Water Main & Sewer Renov.
--
25.0
---
---
---
4.0
10. Resource Recovery System
.6
40.0
---
---
---
---
-
TOTAL
$107.6
$284.3
$10.0
$105.0
$15.1
$4.0
COMMERCIAL PROGRAM FOR REVITALIZATION
1.
DOWNTOWN DEVELOPMENT AND IMPROVEMENT
2.
DOWNTOWN SHOPPING CENTER
3.
NEW COURTHOUSE
4.
NEW WAYNE COUNTY JAIL
5.
REDEVELOPMENT OF COMMERCIAL STRIPS
6.
NEIGHBORHOOD SHOPPING CENTERS
7.
DEMOLITION OF OBSOLETE COMMERCIAL BUILDINGS
COMMERCIAL PROGRAM FOR REVITALIZATION: SUMMARY STATEMENT
PERSONAL
TOTAL
INCOME
PROPERTY TAX
CITY TAX
STATE TAX
TOTAL COST
EMPLOY.
GENERATED
REAL/PERSONAL
GENERATED
GENERATED
PROJECT
(MILLIONS)
GENERATED
(MILLIONS)
(MILLIONS)
(MILLIONS)
(MILLIONS)
1. Downtown Development and
Improvement
$ 41.0
7,260
$ 59.4
$ 2.64
$1.056
$2.64
2. Downtown Shopping Center
20.0
6,000
45.0
8.0
0.9
1.8
3. New Courthouse
70.0
1,900
8.0
0.1
0.13
0.32
4. New Wayne County Jail
40.0
1,210
4.2
N/A
0.063
0.158
5. Redevelopment of Commercial
Strips
88.5
5,300
75.0
2.3
1.5
3.0
(111)
6. Neighborhood Shopping Centers
43.0
1,350
10.5
1.2
0.21
0.42
7. Demolition of Obsolete
Commercial Buildings
5.0
100
----
---
----
----
TOTAL
$ 307.5
23,120
$202.1
$14.24
$3.859
$8.338
COMMERICAL PROGRAMS FOR REVITALIZATION: COST SUMMARY
PROPERTY
MANPOWER GUAR. PROPERTY
PROJECT
AcQ. CONSTRUCT. DEMOLITION EMPL, GRANT LOAN AcQ. & DEMO.
1.
Downtown Devel. and
Improvement
$10.0
$26.0
$5.0
$
$--
$
2.
Downtown Shopping Center
5.0
15.0
---
---
--
---
3.
New Courthouse
---
70.0
---
---
--
----
4.
New Wayne County Jail
---
40.0
---
---
--
---
5.
Redevelopment of
Commercial Strips
---
5.0
---
1.5
5.0
77.0
6. Neighborhood Shopping
Centers
19.0
21.0
---
3.0
--
---
(112)
7.
Demolition of Obsolete
Comm. Bldgs.
---
---
5.0
---
--
i
TOTAL
$34.0
$177.0
$10.0
$4.5
$5.0
$77.0
HOUSING PROGRAM FOR REVITALIZATION: SUMMARY STATEMENT
PERSONAL
TOTAL
INCOME
PROPERTY TAX
CITY TAX
STATE TAX
TOTAL COST
EMPLOYMENT
GENERATED
REAL/PERSONAL
GENERATED
GENERATED
PROJECT
(MILLIONS)
GENERATED
(MILLIONS)
(MILLIONS)
(MILLIONS)
(MILLIONS)
1.
Real Estate Activities
for Promote Devel.
$106.0
700
$ 4.8
$12.0
$0.087
$0.16
2.
Riverfront Seawall Project
17.0
150
N/A
0.1
N/A
N/A
3.
New Housing Development
452.0*
4,385
0.7
4.8
0.017
0.032
4.
Rental Program for HUD
Homes
46.0
1,100
1.5
4.8
0.024
0.05
5.
Single Family Housing
Rehab.
78.0
1,825
51.9
1.28
1.0
3.5
(113)
6.
Rehab. Asst. Program
24.275
825
0.525
1.0
0.008
0.016
7.
Neighborhood Sec. Assn.
5.25
25
----
----
----
----
8.
Demolition of Dangerous
Buildings
7.0
150
N/A
0.45
N/A
N/A
$735.525
9,160
$59.425
$24.43
$1.136
$3.758
TOTAL
* - - $200 million in MSHDA mrtg. guarantees and $215 million in HUD mortgage funds
commited to Detroit New Housing Development activities.
HOUSING PROGRAM FOR REVITALIZATION
1. REAL ESTATE ACTIVITIES TO PROMOTE DEVELOPMENT
2. RIVERFRONT SEAWALL
3. NEW HOUSING DEVELOPMENT
4. RENTAL PROGRAM FOR HUD OWNED HOMES
5. SINGLE FAMILY HOUSING REHABILITATION
6. REHABILITATION ASSISTANCE PROGRAM
7. NEIGHBORHOOD SECURITY ASSISTANCE
8. DEMOLITION OF DANGEROUS BUILDINGS ON A NEIGHBORHOOD
BASIS
HOUSING PROGRAMS FOR REVITALIZATION: COST SUMMARY
PROP
PROP.
NGH.
CLEAR
AcQ
HSG.
AND
AND
AND
REHAB
MGT
MGT
SITE
HsG
LAND
MAN-
MAINT.
ACQUIS
CONSTR.
CONSTR.
FUNDS
FUNDS
SUB
IMPR.
SUB
TRANS
POWER
EQUIP
PROJECT
(MIL)
(MIL)
(MIL)
(MIL)
(MIL)
(MIL)
(MIL)
(MIL)
(MIL)
(MIL)
(MIL)
1. Real Estate Activities to
Promote Develop.
$100
$
$
$
$
$
$
$
$
$4.8
$1.2
2. Riverfront Seawall Project
---
7
10
---
---
---
---
---
---
---
----
3. New Housing Development
12
---
---
---
415
---
10
12
---
---
---
4. Rental Program for HUD Homes
---
---
---
40
---
6
---
---
---
---
---
5. Single Family Housing Rehab.
---
20
---
---
---
---
6
---
---
52
---
(114)
6. Rehab. Asst. Program
---
---
---
4
---
---
---
19.75*
.525
---
7. Neighborhood Sec. Assn.
---
---
---
5***
---
---
---
---
---
.250
----
8. Demo. of Dangerous Bldgs.
6
---
---
---
---
---
---
---
1
---
---
TOTAL
$118
$27
$10
$49
$415*
$ 6
$16
$31.75 $1
$57.575 $1.2
* Mortgage Fund Guarantee
** Interest Subsidy Fund
*** Matching Grants to Homeowners
TRANSPORTATION PROGRAM FOR REVITALIZATION
1. RAPID TRANSIT: PHASE I
2. CENTER BUSINESS DISTRICT PEOPLE MOVER
3. BUS RAPID TRANSIT
4. COMMUTER RAIL
TRANSPORTATION PROGRAM FOR REVITALIZATION: SUMMARY STATEMENT
PERSONAL
PROPERTY TAX
CITY TAX
STATE TAX
TOTAL COST
EMPLOYMENT GENERATED
INCOME GENERATED
REAL/PERSONAL
GENERATED
GENERATED
PROJECT
(MILLIONS)
(TOTAL)
(MILLIONS)
(MILLIONS)
(MILLIONS)
(MILLIONS)
Rapid Transit- Phase I $637.0
19,700
$382.5
$---
$7.65
$14.91
CBD People Mover
54.0
1,530
30.6
---
.612
1.193
Bus Rapid Transit
26.0
600
12.0
---
.20
.450
Commuter Rail
12.0
400
7.0
---
.14
.273
(115)
TOTAL
$729.0
21,630
$432.1
$---
$8.602
$16.826
TRANSPORTATION PROGRAMS FOR REVITALIZATION: COST SUMMARY
HARDWARE
CONSTRUCTION
AND
PROJECT
ENGINEERING
PROP, ACQ,
& PROP, ACQ,
OPERATIONS
1.
Rapid Transit Phase I
$ 6.0
$---
$631.0
$---
2. CBD People Mover
$ 4.0
$ 5.0
$ 31.0
$14.0
3. Bus Rapid Transit
------
-----
$ 20.0
$ 6.0
4. Commuter Rail
---
---
---
$12.0*
(116)
TOTAL
$10.0
$ 5.0
$682.0
$32.0
*100% State Funding
PUBLIC SAFETY PROGRAM FOR REVITALIZATION
1.
CENTRAL PUBLIC SAFETY HEADQUARTERS
2.
POLICE PRECINCT STATIONS
3.
COMBINED AGENCY NARCOTICS ENFORCEMENT
4.
COMMUNICATIONS EQUIPMENT UPDATE
5.
SECURITY SYSTEMS DETAIL
6. MINI STATION COMMUNITY SERVICE OFFICERS
7.
MINI STATIONS CO-OP EMPLOYMENT
8.
SPECIAL SECURITY FORCE
9.
YOUTH HOME: JUVENILE COURT EXPANSION
10.
TRAINEE POLICE OFFICERS
11.
NEIGHBORHOOD SECURITY ASSISTANCE
PUBLIC SAFETY PROGRAM FOR REVITALIZATION: SUMMARY STATEMENT
TOTAL
PERSONAL
PROPERTY TAX
CITY TAX
STATE TAX
TOTAL COST
EMPLOYMENT
INCOME GENERATED
REAL/PERSONAL
GENERATED
GENERATED
PROJECT
(MILLIONS)
GENERATED
(MILLIONS)
(MILLIONS)
(MILLIONS)
(MILLIONS)
1. Central Public Safety
Headquarters
$60.00
3,500
$ 9.5
$.007
$ .190
$ .380
2.
D.P.D. Precinct Stations
21.00
5,000
60.0
.008
1.20
2.40
3. Combined Agency Narcotics
Enforcement (C.A.N.E.)
2.56*
.36
----
.007
.014
4. Communications Equipment
Update
4.18
5.
Security Systems Detail
.43
20
.28
.006
.011
6. Mini-Station - Community
(117)
Service Officers
7.26
550
4.40
.088
.172
7.
Mini-Station Co-op Employment
.49
220
.46
.009
.018
8. Special Security Force
3.74***
250
2.50
.050
.097
9. Youth Home-Juvenile
Court Expansion
20.00
650
7.80
.009
.156
.309
10. Trainee Police Officer
19.75**
1,000
11. Neighborhood Security
Assistance Program
5.00****
25
$119.66
10,190
$85.3
$.024
$1.706
$3.401
*
Three year program = $ 7.16 million
**
Three year program = $59.25 million - cost is reflected under Employment Program for Revitalization
***
Five year program = $18.69 million
****
Cost is reflected under Housing Program for Revitalization
Legislative Proposals
11,160
⑉⑉
Itlent
""IGO
yun
÷
loens
113
edell
INFORMATION
STATE LEGISLATIVE PROPOSALS
The efforts of the City of Detroit to revitalize itself
deserve generous support. Laws which significantly impact
the City's ability to achieve the objectives outlined in
Moving Detroit Forward should be reviewed carefully to
identify major impediments and develop alternatives where-
ever possible.
Specifically:
1. The Job Development Authority Act (H.B. 4786) should
receive the quick and favorable attention of the
legislature.
2. The legislature should move expeditiously towards passage
of legislation granting municipalities increased flexibility
in redevelopment. In its efforts to develop a comprehensive
package the legislature should review the alternatives
regarding:
--local authority for acquisition, demolition, and
relocation;
local financing of renewal;
--revisions in taxation as a means of impacting land
use and property maintenance and renovation; and,
--mechanisms for dealing with blight and abandonment.
3. The passage of the Downtown Development Authority Act
(S.B. 1152, 1974).
4. The enactment of legislation that provides tax abatement
for rehabilitation of commercial and industrial structures.
(118)
FEDERAL LEGISLATIVE PROPOSALS
The cornerstone of this entire package of proposals is an
acceptance and recognition of the necessity of providing
special relief for urban areas experiencing unemployment
at the level of 9% or more and classifying such areas as
urban areas of severe economic depression.
I
URBAN ECONOMIC DEVELOPMENT
A.
Investment Tax Credits
A severe problem confronting most inner city areas is the
inability to attract investment capital, either in the form
of working capital, capital for new construction, or
capital for rehabilitation for existing businesses.
Generally, the device of investment tax credits has been
utilized as an incentive for attracting and directing
capital to areas felt to be unattractive or in special need
of some sort of lure for the taxpayer. Such should be the
characterization of inner city business areas. Given
acceptance of this characterization the Internal Revenue
Code could be amended to provide investment tax credits for
capital invested in "economically depressed urban areas"
with an unemployment rate of nine per cent or more.
President Ford, in his State of the Union Message to the
Congress and subsequent legislative submission proposed an
increase for one year in the investment tax credit to twelve
per cent for all taxpayers, including utilities. This proposed
increase in the investment tax credit would be extended for
an additional two years for utilities making qualified invest-
ments in certain electrical facilities.
This same type of treatment can be given to capital invested
in the business centers of economically depressed urban areas.
The following actions, if accepted, can achieve this end:
1.
Amending the Internal Revenue Code to provide
that whenever an urban area is designated an
urban area of severe economic depression capital
invested in its business center shall be eligible
for an investment tax credit 15 per cent.
(119)
2.
Automatic designation of any urban area as an urban
area of severe economic depression whenever its
rate of unemployment reaches nine per cent.
3.
Continuance of the 15 per cent investment tax credit
for urban area investments for a period of one year
beyond the expiration date presently proposed by
President Ford, and for an additional year at a
reduced rate of 12 per cent for urban areas still
retaining the designation "urban area of severe
economic depression. Il
4.
Specifically designating the following investments
as eligible for investment tax credit treatment:
a.
Working capital advanced to existing or new
urban area businesses at reasonable interest
rates.
b.
Capital invested or loaned for the construction
of new business facilities or purchase of
equipment for new businesses in urban areas.
C.
Capital invested or loaned for the rehabilita-
tion of existing urban area business facilities
and purchase of equipment for existing urban
area businesses.
The investment tax credit proposal has the practical effect
of inducing taxpayers to place capital in urban area businesses.
It is a direct means of fostering increased urban area business
activity, a consequence of which will be increased job opportunities
for Detroit's chronically employed.
B.
The Use of Industrial Development Bonds
The State of Michigan permits its municipalities to issue indus-
trial development bonds. The advantages of this type of bond
to a city like Detroit are obvious from an examination of the
statutes. The issue of industrial development bonds encourage
the influx of new industry and the expansion of existing busi-
nesses into areas where they might not otherwise locate. They
also have the potential of increasing the employment opportunities
available to persons who might otherwise remain unemployed and
in need of public assistance.
Under certain restrictive conditions, the interest on industrial
development bonds is exempt from federal income taxation.
(Section 103 (c) Internal Revenue Code). In light of the unem-
ployment problems cities across the country are facing today,
(120)
a revision of the Internal Revenue Code's current treatment
of industrial development bonds is desirable in order that the
tax exemption be expanded to include interest on bonds from
which the proceeds are used to finance plants or facilities
which locate in "economically depressed urban areas," regardless
of the size of the bond issue.
The following actions would be necessary to achieve this end:
1.
Amending the Internval Revenue Code to provide
that the interest on industrial development
bonds, regardless of the size of the issue, is
exempt from federal taxation so long as the
proceeds are used to finance a facility which is
to be located in an urban area of severe economic
depression.
2.
Automatic designation of any urban area as an urban
area of severe economic depression whenever its
rate of unemployment reaches or exceeds nine per
cent.
By expanding the availability of tax exemptions on the interest
of these bonds, they become much more attractive to the ultimate
purchaser. The market for these bonds would, therefore, be
increased and the location of industry in labor-surplus areas
such as Detroit would be enhanced.
II FOOD ASSISTANCE PROGRAMS
On July 12, 1974, the President signed into law an amendment to
the Agriculture and Consumer Protection Act of 1973, which pro-
vided additional funds and commodities for domestic food
assistance programs administered by the Department of Agriculture.
The amendment provided that:
"The Secretary of Agriculture shall until
July 1, 1975, (i) use funds available under
provisions of Section 32 of Public Law 320,
and not otherwise expended or necessary
to purchase, without regard to the
provisions of existing law governing the
expenditures of public funds, agriculture
commodities and their products of the types
customarily purchased under Section 32
to maintain the traditional level of assistance
programs as are authorized by law, including,
but not limited to distribution to needy
families pending the transition to the food
stamp program, institutions, and supplemental
feeding programs wherever located.
"
Section 4 (a) (1) P.L. 93-347 (1974)
(121)
The Department of Agriculture has consistently held the view
that "maintaining traditional levels" of assistance does not
require it to "enlarge" any supplemental feeding programs.
Consequently, the Department, due to the discretionary authority
of the Secretary of Agriculture under the existing legislation,
has denied requests of Detroit and other municipalities for
increased funding for supplemental feeding programs.
The most effective means of eliminating the discretionary
authority of the Secretary of Agriculture is to amend the
Agriculture and Consumer Protection Act of 1973 in a manner
which makes it mandatory for the Secretary to increase the funding
for supplemental feeding programs when certain factors are
operative. More specifically, the Act could be amended to
provide that:
The Secretary of Agriculture shall apportion
the funds available under provisions of Section
32 of Public Law 320 and available funds of
the Commodity Credit Corporation, to purchase
agricultural commodities and their products to
increase the traditional level of assistance
for food assistance programs as are authorized
by law in the following manner:
(a) Sixty per cent of the total amount apportioned
shall be set aside for economically depressed
urbanized areas of localities with an unemploy-
ment rate of nine per cent or more.
(b) Each economically depressed locality shall
be entitled to sixty per cent of the total
apportioned amount multiplied by the ration
which the nine per cent or more unemployed
population of such economically depressed
urbanized area or locality bears to the
total nine per cent or more unemployed
population of all economically depressed
urbanized areas or localities.
III MASS TRANSIT
Expeditious construction of Detroit's already formulated mass
transit system would contribute significantly to reducing its
high level of unemployment, serve as an incentive for increased
(122)
investment and business activity and raise property values
of areas served. The major obstacle to achieving these much
desired goals is the present organizational structure under
which Detroit's mass transit system must be coordinated,
approved, and implemented. In order to eliminate the problems
attendant to and presently preventing construction of the mass
transit system, Detroit must be accorded the status of an
"independent designated recipient" under the Urban Mass
Transportation Act of 1964.
This designation can be achieved by amending Section 5 (b) (2)
of the Urban Mass Transportation Act of 1964. As presently
written, this section in part provides that:
In any case in which a statewide or
regional agency or instrumentality is
responsible under State laws for the financing,
construction and operation,
of public
transportation services, such agency or instru-
mentality shall be the recipient to receive
and dispense such (apportioned) funds."
Amended to give Detroit the status of an independent designated
recipient, this section would contain the following language:
Notwithstanding the requirements contained in
Section 5 (b) (2), an economically depressed
urbanized area with an unemployment rate of
nine per cent or more shall be designated a
recipient to receive and dispense funds
apportioned pursuant to this Act. Such
designation shall not be subject to the con-
currence of the Secretary.
This amendment has the effect of placing Detroit in a position
where it communicated directly with the Department of
Transportation with respect to implementation and approval of
its mass transit system.
IV HOUSING
On October 18, 1974, President Ford signed into law the
"Emergency Home Purchase Assistance Act of 1974," which, as
an amendment to the National Housing Act of 1968, authorized
$7,750,000 to be used by the Government National Mortgage
Association for the commitment to purchase and - purchase
of mortgages covering family residences.
(123)
Under the Emergency Home Purchase Assistance Act of 1974:
"Whenever the (Secretary of Housing and Urban
Development) finds inflationary conditions and
related governmental actions are having a
severely disproportionate effect on the housing
industry and the resulting reduction in the
volume of home construction acquisition threatens
seriously to affect the economy and to delay the
orderly achievement of the national housing goals
contained in Title XVI of the Housing and Urban
Development Act of 1968, the Secretary shall direct
the Government National Mortgage Association to
begin making commitments to purchase and to
purchase mortgages
" Section 3(a), P.L.
93-449 (1974)
In addition to the factors outlined above as "triggers" for
bringing about the Secretary's directing the release of funds
for making commitments to purchase and purchasing mortgages
it is proposed that the factor of "severe unemployment at the
level of nine per cent or more within economically depressed
urban areas" also be considered sufficient to warrant the
release and utilization of funds authorized by the Emergency
Home Purchase Assistance Act of 1974.
In more specific terms, Title III of the National Housing Act
of 1968 would be amended to include:
1.
Addition of the nine per cent unemployment factor
as a "trigger" for directing the Secretary to
utilize funds authorized by the Emergency Home
Purchase Assistance Act of 1974;
2.
Designation of "urban areas of severe economic
depression" as special or first priority
recipients of funds authorized by the Emergency
Home Purchase Assistance Act of 1974;
3.
Specific allocation and designation of $1,500,000
of the Emergency Home Purchase Assistance Act's
authorized funds for use only in urban areas of
severe economic depression; and
This proposed amendment is not an alternative to also increasing
over-all assistance to economically depressed urban areas under
the Housing and Community Development Act of 1974. It is pre-
sented to provide a program of assistance "in addition to"
whatever other special assistance which can be carved out of the
existing programs authorized by the Housing and Community
Development Act of 1974.
(124)
10000
1
1
=
1398,
.....
THE
39060
will
3889
the
sols
53518
Thest
111.00
1
=
:
Addendum
ADDENDUM
Information used in computing Impact Statements:
1.
JOBS
a. Approximately one-half of short-term construction
and engineering costs go toward labor. Taking
$10.00 as an average wage and dividing it into
the amount for labor will result in the total
manhours for an entire project. By dividing
this number by 2,080 (the number of manhours in
a year), the total number of people employed
annually will result.
b. Long-term industrial job estimates are made by
referring to the number of jobs in similar
existing industrial structures in Detroit.
2.
INCOME
Personal income generated annually is estimated by
multiplying the number of long-term jobs in the
industry by the individual annual income level.
3.
TAXES
a. Local taxes are estimated by determing the
percent of workers in an industry residing
in Detroit and multiplying their annual
personal incomes by .02, the local tax rate.
b. State income taxes are estimated by multiplying
personal income by .039, the State tax rate.
C. Federal income taxes are estimated by multiplying
personal income by .10, which is a conservative
estimate of the tax paid by the average worker
earning $12,000 annually.
(125)
DETROIT: THE CITY
LOCATION AND SIZE
The City of Detroit is located in southeastern Michigan and
contains approximately 140 square miles. It is located in
the northeast quadrant of Wayne County and accounts for
nearly one-fourth of its total area. The City is bounded
by the Detroit River to the south, Oakland and Macomb Counties
on the north, and by the out-Wayne County Civil Divisions on
the east and west.
POPULATION
Detroit is the largest city in Michigan and the fifth largest
city in the nation. In 1970, the population was 1,511, 482
while Wayne County's was 2,666,751. The Detroit standard
metropolitan statistical area, made up of Wayne, Oakland, and
Macomb counties, contained about 4.2 million residents. Of
those living in Detroit, approximately 56 percent were white,
while 44 percent were black and others.
ECONOMY
Detroit's area economy is changing, and this change is mani-
fested by the shifting of industrial and occupational patterns.
With respect to industrial patterns, there is a general shift
from the manufacturing to the non-manufacturing sector. It
should be understood that this is a relative shift so that
Detroit will remain a city partially dependent upon a modestly
growing manufacturing sector. At the same time, industries
such as finance, wholesale, retail and services will represent
a greater share of the total Detroit area economy. Much of
the growth in these industries will be attributed to the still
strong manufacturing sector.
Within Detroit's changing industrial mix, the occupational mix
is shifting. The professional and service occupations have
been increasing and are expected to continue to increase. An
example of this shift is in the automobile industry where the
employment of professional, technical, and kindred workers in-
creased by 35 percent from 1960 to 1970, while total automo-
bile employment grew by 14 percent. (See employment graph
attached.)
LABOR FORCE
In 1974 the labor force of Detroit was estimated to have aver-
aged approximately 567,000 persons. Of that number, an average
of 74,800 were unemployed for an annual rate of 13.2 percent.
(126)
EMPLOYMENT BY OCCUPATION AND INDUSTRY:
U. S., DETROIT, 1970
OCCUPATION
UNITED STATES
DETROIT
Professional and
Managerial
Clerical and Sales
Craftsmen
Operatives and Laborers
Service Workers
INDUSTRY
UNITED STATES
DETROIT
Construction
Auto Manufacturing
Other Manufacturing
Trans., Comm., & Utilities
Wholesale & Retail
Finance, Insurance, Real Estate
Business & Professional Services
Public Administration
Other Industry
% Employees
30
25
20
15
10
5
0
5
10
15
20
25
30
Extent to which Detroit is below National Average
Extent by which Detroit exceeds National Average
The "energy crisis," along with the current economic down-
turn, has had severe impact on unemployment in Detroit.
The January 1974 rate was 10.7 percent, considerably higher
than the previous month's rate of 7.7 percent. This high
level of unemployment continued through 1974.
Since the City of Detroit's unemployment rate remains di-
rectly related to the fortunes of durable goods industries
(particularly the automobile industry), a long-run compar-
ison of U.S., Michigan, SMSA and City of Detroit rates shows
Detroit to be consistently higher in all the years where in-
formation is available. This is explained by the fact that
almost 50 percent of the work force in the central city is
blue collar. In addition, the long-term effect of automa-
tion and the exodus of industry to other areas have caused
the City to sustain a considerably higher unemployment rate
than the nation.
MAJOR MARKET AREAS
The major market areas and the flows between places of resi-
dence and places of work in the Detroit metropolitan area
are a reflection of a high degree of reliance on the automo-
bile. Of the labor force residing in Detroit, approximately
33 percent work in a suburban location, while 24 percent of
the residents from the suburban ring work in Detroit. The
detailed pattern of place of work by place of residence is
shown in the attached table.
TRANSPORTATION FACILITIES
Detroit is at the hub of a faceway network in southeastern
Michigan that contains 424 miles. The network, coupled with
the Detroit system of streets, makes travel very convenient
for the large portion of Detroit's population that is depen-
dent on the automobile. In addition, the system is conducive
to the efficient transport of locally-produced goods by the
200 commercial trucking companies.
For those who must rely on public transit, the City's Depart-
ment of Transportation operates a fleet of 1,200 coaches.
The system constitutes 92 percent of the entire metropolitan
area's public transportation facilities.
Eight major railroad lines serve the Detroit Metropolitan
area with passenger and freight service. Rail access within
most of the City's major industrial corridors is excellent.
By air, Detroit is reached via two major airports -- Detroit
Metropolitan and City Airport. City Airport is the private-
flight headquarters for the major industrial corporations in
Detroit and used heavily by representatives of industry who
travel regularly between cities in the industrial midwest.
Detroit Metropolitan Airport provides the bulk of the area
passenger service as well as freight service.
(127)
UNEMPLOYMENT RATES
UNITED STATES AND DETROIT - 1967-74
14.0
13.2
13.0
12.0
10.9
11.1
11.0
10.2
10.0
8.9
DETROIT
9.0
8.0
7.0
6.6
5.9
6.0
5.6
5.6
5.2
5.1
4.9
4.9
5.0
UNITED STATES
4.0
3.8
3.6
3.5
3.0
2.0
1.0
0
1967
1968
1969
1970
1971
1972
1973
1974
Place of Work by Place of Residence
Detroit SMSA 1970
Residence Area
Employment
Detroit City
Suburban Wayne
Total Wayne
Oakland County
Macomb
County
Area
No.
%
No.
olo
No.
oto
No.
do
No.
do
Detroit City
320,668
66.6
107,349
27.7
428,017
49.3
54,807
17.7
54,549
25.5
Suburban Wayne
87,249
18.1
239,209
61.8
326,458
37.6
25,511
8.2
15,297
7.2
407,917
84.7
346,558
89.6
754,475
86.3
80,318
25.9
69,846
32.7
Total Wayne
Oakland County
42,146
8.7
27,864
7.2
70,010
8.1
205,736
66.3
23,485
11.0
31,700
6.6
12,568
3.2
44,268
5.1
24,085
7.8
120,451
56.0
Macomb County
Total SMSA
481,763
100.0
386,990
100.0
868,753
100.0
310,319
100.0
213,782
100.0
Outside SMSA
7,249
17,973
25,222
7,972
2,500
Not Reported
48,712
20,783
69,495
17,850
9,835
Total at Work
537,724
425,746
963,470
335,961
226,117
Source: Table 35, 1970 Census of Population - 4th Count File C.
(127B)
MUNICIPAL FINANCING
Traditionally, cities have relied on the property tax to finance
municipal operations. Detroit's property value which increased
only 29 per cent in the ten year interval between 1964-65 and
1974-75, compares with a 51 per cent rise in the price index and
a 133 per cent increase in Budget Appropriations. Increased
citizen service needs and stagnant property values have gradually
emasculated this tax as the primary source of local revenue.
Expanded City controlled revenues, through the City Income Tax
and Utility Tax, however, have fallen far short of the rise in
expenditures. Although the number of Detroit's General Fund
employees has actually decreased over the past twenty years,
from 22,466 to 20,544 despite the need for increased services,
the cost for personnel services has risen from 94.4 million
dollars to 408.4 million dollars. This cost reflects an increase
of 333 per cent. During this same period, material, supplies
and expense items have risen 344 per cent.
Rising costs for maintaining minimal services have been met by
imposing new and higher local taxes, and, by increased State
and Federal revenues. The majority of this aid, however, has
merely served to plug existing gaps and to continue existing
service levels. It has failed to provide for the full measure
of increasing costs and needs of cities.
In addition, the City's total population has declined; wealthier,
more mobile taxpayers have moved out leaving Detroit with an
increasing percentage of low and fixed income individuals; an
unemployment rate double that of the State and more than twice
the national average. Detroit is in the position of trying to
provide minimal services for those who most need and can least
afford them.
Detroit again faces a financial crisis: a 25-35 million dollar
budgetary deficit. With a tax effort* over three times the
average of Michigan cities, Detroit cannot afford to increase
present or to impose additional taxes, even if it were legally
feasible. (See attached graph, pg. 106A)
The national economy continues in a state of turmoil. In 1974,
inflation reached a rate more severe and more prolonged than the
United States has experienced since the rise in prices following
World War II.
*tax effort = local tax revenue per dollar of property value.
(128)
The automotive industry, the major employer of the Detroit
area, has suffered acutely from the effects of inflation and
recession. As inflation has driven up the cost of vehicles,
Federal regulations have added approximately $600 to the
price of the average car. U.S. domestic automobile sales for
1974 showed a 23% decline from 1973. December figures indicate
sales of 25.2 per cent below one year earlier, with Chrysler
Corporation alone showing a decline of 37.7 per cent.
A recent New York Times analysis1 by Wassily Leontiff, utilizing
the 1967 input-output matrix for the United States, estimates
that for every $1 billion drop in auto sales, the result would
be a drop of 22,900 jobs in the auto industry and an additional
drop of 34,100 jobs in secondary industries. A total of 57,000
employees out of work, or over 2-1/2 times the initial automo-
tive employment changes. The impact of more than 300,000
nationwide auto workers idled in December, 1974, has been
dramatic. Its effects in Detroit where Chrysler Corporation has
laid off 38,000 persons have been disastrous.
Detroit can expect an annualized loss of personal income in the
Detroit Tri-County Area of approximately $1.2 billion, based on
an average income of 14,150 for suburban residents, and
$8,750 for City residents. The estimated loss of $1.2 billion
personal income, multiplies into an expected annualized loss
of $9.8 million in City income tax revenues, additional losses
in State-shared revenues, tax delinquencies, and inestimable
corporate income tax losses. Without a reversal in the economy,
further unemployment can be anticipated which will further
depress expected municipal revenues and severely impair the
ability of the City to effectively function and provide neces-
sary services.
SUMMARY
Detroit's tax revenues have fallen far short of need. Their
inelasticity becomes more critical in periods of rapidly rising
costs. The present period of inflation has accelerated price
increases and the current recession has further stunted revenue
growth. These elements have combined to create an unmanageable
revenue shortage which can only be rectified with Federal and
State assistance.
1 The New York Times, December 8, 1974, page 1, Section 3.
(129)
MILLIONS
LOCAL TAX BASE VERSUS EXPENDITURES
EXPENDITURES
$700
PROPERTY TAX REVENUES
INCOME TAX REVENUES
UTILITY EXCISE TAX REVENUES
$600
The major share in revenue growth is accounted for by
rate increases and new sources rather than growth in
$500
the tax base. All City taxes are currently at legal maximum.
$400
$300
PROJECTIONS
$200
$100
53-5
54-5
55-5
56-5
57-5
58-5
59-6
60-6
61-6
62-6
63-6
9-+19
65-6
66-6
9-49
68-6
L-69
70-7
71-7
72-7
73-7
74-7
75-7
76-7
PERSONAL INCOME GROWTH
MICHIGAN VERSUS DETROIT
140%
130%
MICHIGAN
120%
122.10
110%
100%
103.20
90%
93.04
80%
70%
73.22
60%
59.90
55.54
50%
40%
42.71
30.99
32.55
30%
28.95
30.75
.23.87
22.60
20.21
20%
20.30
DETROIT
17.14
10%
12.41
2.70
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
( 3.19 )( 1.04 )
The low growth of City Personal Income compared to Michigan's Personal Income
is indicative of the increasing percentage of low and fixed incomes in Detroit.
SOURCE:
State, 1964-72:
Economic Report of the Governor, 1973, pg. 16.
State, 1973 and 1974:
Budget Message of the Governor, for the Fiscal Year 1974-75, pg. 35
City:
City of Detroit, Finance Department, Income Tax Division
STATE EQUALIZED VALUATIONS
DETROIT GROWTH VERSUS THE
TRI-COUNTY AREA
100%
TRI-COUNTY
90
86.24
80
74.79
70
66.54
60
58.90
50
47.10
40
33.80
30
20.96
20
10.29
12.19
9.61
DETROIT
8.63
10
5.95
1.95
.79
0
.65
1.28
1.45
-10
5.19
6.43
8.67
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
Tri-County includes Wayne, Oakland and Macomb Counties
SOURCES: Wayne, Oakland, Macomb,
1964-1973:
Michigan Manual, various years, Department of Administration,
State of Michigan
1974:
Michigan Tax Commission, Property and Equalization Division