Good morning, everyone.

We'd like to now begin the expanded budget finance and audit standing committee for today, Thursday, March 12th, 2026.

Good morning, Madam Clerk.

Morning.

You please call the roll.

Absolutely.

Council President James Tate.

Yep.

Council President Pro Tim Coleman Young.

Member Young is in the back.

Okay.

Councilmember Angela Whitville Callaway.

Member Calloway indicated she's on her way.

Okay.

Councilmember Mary Waters.

Councilmember Gabriela Santiago Romero.

Present.

Councilmember Renata Miller.

Renature.

My apologies.

Councilmember Denzel McCampbell.

Councilmember Letitia Johnson.

President.

Councilmember Scott Benson.

Mr.

Chair, we have quorum.

Thank you.

We have a quorum, which means we're now in session.

We are now set for our second day of budget hearings in this budget season.

We will now have members of the Detroit Building Authority.

Please come forward.

Thank you for being here.

Mr.

Wood, if you have any opening words you want to provide before we get going.

All right.

He said, no, let's get it on.

And for the public again today, we will be having the build Detroit Building Authority as well as the Detroit Eastern Market public hearings.

After that, we will have uh abbreviated uh public comment sections.

Uh we will then break, allow for additional committee uh work to take place and then have two additional uh budget hearings that will come following that uh and at the end of the uh second uh budget hearing we will have uh again another uh abbreviated public comment section.

Noting again that the public will have an opportunity to provide full public comment during uh a public comment hearing, a hearing designed solely or session designed solely for public comment on March 30th.

All right, Director Clifton, good morning.

Thank you for being here.

Please introduce yourself and your team, and the floor is yours, sir.

Thank you.

Good morning, council.

Um Tyrone Clifton, director, Detroit Building Authority, and I will allow my team to introduce themselves.

Hi, good morning, uh Council members.

My name is Roger Short, and I'm the financial manager for the Detroit Building Authority.

Thank you.

Good morning, Donna Rice, Deputy Director for the Detroit Building Authority.

Good morning.

My name is Joe Bryant.

I'm with the Detroit Building Authority real estate.

Thank you.

Good morning.

So uh again, thank you, uh Detroit City Council for this 2026-27 uh budget hearing.

Um a little bit about the Detroit Building Authority.

We'll go right into it.

Um a little bit about our opening statement here.

Um the DBA supports the mayor's economic empowerment initiative by ensuring equitable and transparent access to publicly owned property and bidding opportunities.

Residents and entrepreneurs may search available properties and initiatives and initiative and initiate, I'm sorry, the acquisition process through the city's online real estate program.

Um so we established the real estate program for the first point of contact for people to be able to look up properties and begin the process with our assistance.

The re to reduce the access barriers, DBA staff provide application guidance and maintain an in-office kiosk for individuals without reliable internet access, which we do have a significant amount of traffic for individuals coming in to see what's available to expand their business or even start their business.

The structured approach promotes small business development, responsible property redevelopment, and neighborhood restoration by returning underutilized properties to productive use.

Through these efforts, property disposition serves as a strategic tool for inclusive economic growth and community revitalization, revitalization.

So the DBA is the initial point of contact, so where they intake.

Obviously, the various city departments weigh in on what that property wants to be, how it wants to be developed, and ultimately it comes to city council for for approval.

Um Detroit Building Authority was formed in 1973, pursuant to the Michigan Act of uh MCL 123.951 with the City of Detroit being the incorporating entity.

The DBA's function as provided under laws to acquire, furnish, equip, own, improve, operate, and maintain city facilities, including parking lots and structures, among other things.

So that's a very fancy way of saying that the DBA is here to do major capital projects.

A couple examples of those major capital projects is the new Coolidge Bus Center facility, 120 million dollars that's coming online in the next couple of months.

That's with DDOT and federal funds.

The room that we're in right now, we've renovated, we renovated this room.

It hadn't been renovated in 30, 60 years.

We did this about four years ago.

The new Jason Hargo Bus Transit Center is another example of a DBA bus uh uh capital project.

Um per the statute of relationship between the city and the DBA is contractual.

So departments with their capital budgets working with finance uh come to us and say this is the project we're looking at.

Can we do this?

And we do some due diligence and ultimately it comes before city council for approval for that capital project, and then we do the capital project.

The city authorizes contracts of leases to fund projects while the DBA itself executes operations and oversees the projects.

The DBA is directed and governed by a board of commissioners with two mayoral uh appointments, two city council, and one joint mayoral council appointment at the direction of the Board of Commissioners, the executive director and DBA staff exec execute the day-to-day operations of the DBA.

Um, and really and truly this slide is showing you the different roles that we have construction management services, commercial real estate, commercial property management and operations.

Uh a little bit about the operations.

We're also responsible for preparing the construction real estate invoices to the city departments, processing payments from city departments to DBA vendors, and it includes the managing of the Detroit Public Safety Headquarters, which was a DBA project that we did through a uh public safety bond.

Um I think that bond was 100 million dollars, of which 55 million was used for the adaptive reuse of the Detroit Public Safety Headquarters.

Um an upcoming major capital project.

Uh you the Detroit City Council approved the the first phase of funding at 17 million dollars is the relocation of the Michigan and 19 service yard to the Russell and ferry service yard.

As you know, Michigan and 19 has got a significant amount of development with the train station coming online, the new soccer station being built right there adjacent to it.

Um so our uh very tired service yard should be relocated to Russell Ferry.

We're in the footprint where we demolished the old incinerator and um took down that stack.

So it's adjacent to uh an existing service yard that's theirs, just expands that service yard.

Um but it is important with uh working with General Services Department, Department of Public Works, and their operations of of how we we facilitate that.

And that's a very early ongoing project that we are still trying to facilitate and put into a very good budget.

Um commercial real estate services.

We've been doing commercial real estate since 2015 via contract with the HRD and planning and development department.

The DBA assists the city with city-owned surplus properties.

We manage the database of city-owned surplus properties properties.

Inventory consists of 6200 properties, around 300 buildings, uh, 5,900 vacant lots.

Um, and they're uh consisting of commercial, former schools, and vacant land.

Uh assist department with lease requests for third party and city as landlord leases, requests for office and storage space too.

It's a constant evolution that the various departments need, and we manage the applications to purchase city-owned surplus properties and assist with the sale of those properties.

And recent accomplishments, again, the new Coolidge bus maintenance and operations facility led by uh Deputy Director Donna Rice.

Um we are with 90 percent done.

We have a certificate of occupancy working with D DOT, they are setting up their operations and moving into the facility.

So it's going to be a period of time for them to do that safely and smartly in a way that doesn't affect their operations.

Uh our budget is uh we have we're nine employees.

We have nine city employees working at the DBA.

Um these are some frequently asked questions that we often get that we also often help other people with.

We do a ton of outreach with uh various council members, with the procurement office, with the construction associations too.

So we're we are out there in the community trying to help and spread the word of how do you get properties with the city of Detroit, how do you bid with the DBA?

You know, oftentimes our projects are such a large scale, it's it's harder for a smaller uh entrepreneur to try to do a major contract, but we do try to tie them with our construction manager as we bid out smaller packages.

Uh we've been very successful in minority participation for our large-scale projects.

Oftentimes they're joint ventures, um, but uh really and truly the community uh knows and understands that what we're looking for is Detroiters working on on our major projects and Detroiters having um some of this contract work to get this work done too.

Uh thank you all right.

Thank you for the presentation, and we will begin.

Oh Madam Clerk, if you can please know that we've been joined by Pro Tim Young, Member McCampbell, uh Member Waters, as well as Member Callaway.

The click will know.

Thank you so much.

We will now begin with count uh uh questions from colleagues, and we will begin with member Callaway.

All righty, good morning, everyone.

Morning.

Um thank you for being here.

While the DBA monitors applications, and I and and I'll submit um the rest of my questions because we're allowed to ask two.

Yes, ma'am.

While the DBA monitors applications and denies those with outstanding blight tickets or taxes, I think.

What safeguards exist to prevent developers from circumventing these rules by letting commercial properties deteriorate and then using new LLCs or entities to acquire additional properties for speculation?

Um through the chair, we do an extensive search.

Uh of course, as best we can if that's what somebody is trying to do, but however, it starts in our office as far as checking for blight tickets and outstanding taxes, but that process is checked.

I'm sorry, but that is checked throughout the application process.

So before it comes to city council, there are city staff who also do a check of businesses to make sure there are no outstanding black tickets or taxes owed by that company.

Okay.

So through the chair to you.

So developers or folks who are interested in purchasing property, if they have outstanding taxes or they any oh anything, it could be taxes, it could be something else, I don't know, other than taxes, or in addition to taxes and the black tickets.

Are they um not allowed to move forward in a purchasing process or development process?

Through the chair, if they have been seen as on a payment plan and they're current, but again, it's at the discretion of the city representatives who are reviewing that.

So if it is someone that it seems like this is a habit, then no, you know, because if you can't, the the thinking is if the person can't take care of the property they already own, how will they be able to redevelop and take care of new uh property?

So um, but it's pretty much if they have outstanding blight tickets, they're not current, they're not on a payment plan.

This seems to be a habit of theirs, they are uh are denied until until that is remedied.

Okay, all right, and um thank you.

Thank you so much.

And through the chair, during the last budget cycle, the DBA indicated that renovations will be made at the Skillman Branch library, which is owned by the library commission.

District 2 includes the Sherwood Forest and Hubbard branches, both library commission owned, and the Chase branch owned by P and D D and maintain and maintained by the DBA, I think.

What improvements were completed at the Skillman branch and are similar upgrades plan for branches in the neighborhoods, and how do capital capital improvement processes differ between library commission owned and P and D D owned library branches.

Thank you.

Uh, through the chair.

So the skillman branch is still in development.

Uh we've been spending a lot of time trying to figure out a way to save those windows.

Um that's the major issue.

Obviously, I got to do the roof out there too, but uh the windows are a challenge.

Um, but we are going to the we're issuing a request for qualifications for the skillman branch, uh, probably in the next six weeks, quite frankly.

Um, and we're contracted through the library commission.

Okay.

Um that's the only facility they've asked us to look at.

I I have asked and Antonio if there's other things he's interested in.

What should we do, even if he wants to build a capital plan for his library and seek money?

Um, so we we're still having those conversations, but um I think library can best answer that question.

Okay, because it's been a year, and this this is the same question that I asked last year.

So um thank you so much, and I will submit um I will forward my additional questions to you.

Yes, ma'am.

Thank you, Mr.

Chair.

Thank you, Member Callaway, Member Benson.

Thank you.

Thank you all for being here today.

Uh only question project in the executive parking lot regarding the electrification of vehicles.

Gas approaching 200 a barrel as threats as threats are coming from the Middle East.

Electrification will be a great way to uh save funds uh when it comes to our fuel purchases.

What's the status of that project?

Of course, through the chair.

So the uh EV charges and electrical in the uh in the parking lot downstairs here at Common AYoung.

Um DTE has gone through the permit process with Department of Public Works.

Um they are currently in the permit process with MDOT.

Um their feed or their line that's gonna come to their transformer is in the MDOT right away.

So they're working through that process.

Um for us, um obviously, and I you know, through the chair, we've had this conversation.

We're not gonna set our EV chargers until we can have the electrical and the transformer set.

So there's no point in having these dummy machines out here that don't work and with a big sign on them, do not touch.

Um so we are we're working through the process.

Okay, do we have a timeline?

Uh we did have a meeting last uh Monday.

We meet Monday every week.

They are confident that they'll get through the MDOT process within the next four weeks.

That means chargers that actually work within the process.

That means the infrastructure to bring the power so we can try set the transformer, then we can set the tr the charges.

That means next year we'll have you for sure you'll have it next year, but you'll have it uh uh hopefully early spring is what we're looking at.

But I I forgot next week.

Okay, late spring.

Okay, okay.

Thank you.

Thank you, Mr.

Chair.

Uh member Waters All right.

Well, thank you.

Good morning.

Yeah, just as I was taking a sip.

Um tell me about the um percentage of properties that were have been sold to Detroit residents.

Through the chair, uh with our application, the application acts for their you know street address where they live.

It also asked for some other information.

So last year uh we sold about I think it was about 65 percent to individuals who applicants who had a Detroit address.

Okay.

Well that I'm impressed.

Um the the windows here.

Um what are you guys planning to re replace some of them?

Because I have leaks in my window in my office.

Uh through the chair, that's through the Detroit Wayne Joint Building Authority.

Um obviously we've not this one.

Okay, all right.

I can only take so much.

That's what happens when you're just not done.

That's what happens when you're late.

Okay.

Sorry.

I got a problem.

Oh boy.

All right.

So anyway, I'll just ask you another real simple question.

Oh, how many uh properties do you still have left in your current inventory?

Uh through the chair, uh, we have, and I'm sorry I have to make a correction to my director's numbers that he gave earlier.

Uh, there are total about 7400 properties in total.

600 of those are buildings, so about 6700 are vacant lots.

Of vacant uh vacant lots, vacant lots.

Yes, ma'am.

I do not want to I want to um inform more Detroiters about what's available to them.

You have anything that I can share with them, you know, a flyer something I can post on social media or whatever, have more people to participate in trying to purchase vacant lots and or buildings.

Uh through the chair, yes, of course.

Uh the city, the uh real estate now has a a new website.

Oh well, and that website is by property.droit mi dot gov.

And on that website is the application, is the description of the process.

Um, but more importantly, what I I like about it is there is a video that describes the process and describes how to um fill out the application.

So we think that would be very helpful for citizens in applying for city on property.

Would you mind emailing me that?

Oh, of course.

Through the chair.

All right.

I will.

Okay, thank you.

Thank you, Mr.

Mr.

President.

Thank you.

We're gonna go to Member Santiago Romero.

Thank you, Mr.

President.

Good morning.

Through you, Mr.

Chair.

Um Madame Mayor mentions that we are going to begin to utilize a hundred percent of our commercial property uh sales um to support our affordable housing developments.

Just wondering, will this impact your operations at all is the question?

Through the chair, I think our process will remain the same.

I don't think that there is an impact for us.

Again, we're doing applications, we're doing intake.

Um it still has to go through the city process and ultimately to this body, but it should not have an impact on our application process.

Okay, thank you.

And one issue that comes up to our office often is around sale prices.

Uh so we have had a few calls from residents letting us know that they will get different prices from the land bank compared to the DBA.

So just wondering what is your conversation like, what is pricing like?

Because we want to make sure that when we give residents a price, we can stick to it, especially if it's lower.

Um, so just wondering what that process is in in pricing and agreeing to a price.

And we've been able to work through these issues.

Um, I'm just wondering process and how we get to these different numbers.

Uh, through the chairs, thank you.

Uh what you know, it it is it is confusing.

I do understand that because people think that the land bank is the city and it's two different entities.

And so the land bank has their policies and practices and pricing.

Uh, you know, you can get a side lot from the land bank for $100, but understand that every lot, every lot that's next to a house is not a side lot, even with the Detroit Land Bank.

If it is if it is zoned a certain uh B level zoned, or if it is on a certain street, it's it's not a side lot, even though it's a vacant lot next to your home.

So I think we both both agencies have to work on uh educating the public on the different agencies.

Number one.

Uh number two, the city sells properties for fair fair market fair price.

And so what we do is we have brokers that work with us who price it, but those prices are discussed with city representatives.

Uh we send out offer letters, and I tell anyone that um when they what I do have a chance to speak to them is that they should call me when they get their um offer letter rather than reaching out, not saying they shouldn't call the city council staff, but uh reach out to us because they will have a chance to have a conversation with the brokers and and uh have and talk to why they feel the price is too high.

And oftentimes the brokers take that into account because you know some citizens have done their homework, and so they understand pricing.

Um, and so with the city, like I said, this is sold for fair, fair value.

So we can't we don't sell lots, we don't sell vacant land for a hundred dollars.

We're selling commercial property at commercial rates.

Through the chair, understood, thank you.

And and I agree, we need uh to do better at educating and just being transparent on these processes and the different agencies.

Um so I I know that right now we are we are at a reckoning with the land bank, and I think that's okay.

Um, so maybe having these conversations and making sure that moving forward we do that better, we figure out a way to do so.

Um, so so I don't know if I need to make that a closing resolution request.

Um, I don't think so.

I think we can move forward and do this work.

Um, but I might add it for the land bank when they get to us.

But for now, that's just a note for us, something that we can work on.

Thank you, Mr.

President.

Thank you.

Member Johnson.

Thank you, Mr.

Chair, and good morning to all of you.

Um I appreciate the additional information.

I feel like um I didn't know about when the DBA was formed, and and you director Clifton, you mentioned um under the law that the DBA's function is to acquire, furnish, equip, own, improve, operate, and maintain city facilities.

Um I want to say thank you to Joe Bryant, um, to the entire team, Felicia Studsdale, Tyone Clifton.

Um Ms.

Rice, I don't work with you.

I see you out, and and we communicate, but um, thank you for joining us in Philadelphia to um get more information about uh green infrastructure and and what Philadelphia was doing.

Um I know I feel like we interact uh on a regular basis.

Thank you for the support with the developer summit, the past and the one that is coming up.

My first question is along the lines of apartment complexes.

So I think this is going to be what I hone in on probably over the next four years during this term, just recognizing the number of vacancies that we have, vacant buildings.

I mean, completely dark.

Many of them are privately owned, but I believe some of them are publicly owned.

In our questions, we did our asking for a list of the publicly owned apartment complexes because I'm hopeful that the city will be able to help bring those back online.

But I'm I've I'd like to just ask a question to kind of level set.

How does the DBA acquire property?

How do you get property in your inventory to sell for the city?

Through the chair, well, first we are assisting the city with its property.

So the DBA does not own any property.

We are assisting the city with city-owned property, mainly their surplus properties, but our database includes all properties.

And so we get uh properties through a couple of different ways through the right of first refusal.

If the property, if the city deems that a property will be uh for the public good, they will acquired from Wayne County at that point.

Uh any property that is not sold uh during the auction.

That's the way that the city acquires properties.

And of course, you know, we are we are um charged through our contract with that property management of those properties, and then properties that that are under the jurisdiction of city owned departments when they declare the property surplus or or say that the property will no longer be used by their department, those fall under our surplus property uh inventory as well.

Okay, so it's a similar process as with land bank properties, it's just specific types of properties that the DBA uh oversees.

Right.

Uh the DBA uh the city's properties are mainly vacant lots, um, commercial properties, industrial properties, and former schools.

And and commercial properties includes apartment complexes?

Yes, uh, over uh what is it, four units or six units would be considered four units would be considered through the chair, I'm sorry, would be considered commercial.

Thank you.

And Mr.

Chair, this is all one question.

Um sorry.

Um can you in the work that you have done as it relates to apartment complexes or multi-use complexes uh that include some residential.

Are you able to identify any challenges with either selling them or bringing them back online?

Because throughout the city, they are dark, they are vacant, and and they can have 25, 30 units, and they're empty.

Through the chair, um, the city really only owns about four apartment buildings.

So those apartment buildings, we have one on Tyler, West Chicago, Amherst, and Alta Road.

And unfortunately, by the time a property becomes city-owned, that previous owner stopped maintaining the property long before they lost it.

And then after they once they you know lost it, no one is maintaining it.

So the biggest challenge I see is the cost to renovate, the cost to acquire and the cost to renovate.

Uh, that is one of the biggest challenges I see.

And the and we get applications for these apartments, um, but you know, the city has staff and we assist with this in reviewing the applications.

And some people feel, oh, I can I can rehab an apartment unit for a thousand dollars a unit.

Well, you know, through the chair, that's not that's not real.

That's not that's that's not going to work.

You're not gonna be able to renovate that building because you know, let's understand before you even get to the renovation, you have to secure the building, and you have to maintain the grounds, and most of these need uh new roofs, they may need to be reconfigured.

Um so there's a lot that goes on with that decision and looking at those applications.

So, like I said, I think the biggest challenge is just the cost to renovate, and then the people that apply, the applicants that apply, having an understanding of what that cost is and being able and and and saying that you know we we we've walked it and we feel that we can do it at a rate that makes sense with the market condition is speaking to.

Thank you.

Um my second question is very very quickly.

Um that was all related to one question.

It was I had to ask one to get the thank you, Mr.

Chair.

Um, Director Clifton, can you provide an update on the 20 million dollar grant funds from um the C D B G DR?

Yes, um, so through the chair, we are currently um making uh job offers to the program manager that we are hiring, which is very important.

That was considered as phase one to our project.

Um, and then pursuant to that, we hope to bring that person on this month.

Um, pursuant to that person accepting that um offer, um, we're going out for for bid for phase two, which is the engineering environmental due diligence, um, uh all the other stuff that we need to do, including the outreach.

So hopefully we can begin in earnest with the outreach.

Where are we April, May, probably June?

All right, thank you.

Thank you, Mr.

Chair.

Member McCampbell.

Good morning.

Thank you, Mr.

Chair, and good morning to everyone.

Um, good to see you all.

I have a question around shows.

It's a in addition to uh uh kind of going off of what member Johnson is bringing up, and you can let me know if this question is more appropriate for planning, but um uh or PDD.

So I'm thinking about the expanded use of adaptive reuse and especially around um the buildings that the city has in their hands.

Um in District 7, you know, the uh former Parker School, Weatherby as well, residents have brought those buildings up as as places that they want to see something else that they want to see something else happen, whether that is more housing or community center or such.

So just want to touch on um if you all are involved in um efforts or conversation around what we can do with those type of buildings that are in neighborhoods.

Uh yes, through the chair, we are so you know, by the applications coming to our department first, we are reviewing them.

And we have talked to a number of citizens who are passionate about their neighborhood, passionate about their community, passionate about the vacant schools.

And we we get a lot of application applicants that say, you know, we got a community group, we can go out there together, we can renovate this building, you know.

My cousin, he does this, my father does that, and we can lay carpeting, we can just make it a community center.

And we're talking about 10,000 at least square feet of building that has been sitting vacant for 10 15 years, and it is beyond the community effort to renovate, okay.

We need and so now it's at a point where it's taking in planning development, did a study through the chair.

Uh had a group come in and did a study a few years ago, and a few years ago, they determined that 10 million dollars was the least that was needed for these schools, and that was four or five years ago.

And so the city is working with a couple of applicants at this time that want to do something with you know, a couple of the vacant schools, but again, it's just like the apartment buildings.

It comes down to the cost to renovate, and people coming to uh applicants coming with uh financial proof, but not even financial proof, just the understanding of how much it costs to renovate a vacant school.

Absolutely.

And so that I'm sorry.

No, you go ahead, go ahead.

Yeah, so that is that's that's the first thing right there through the chair is understanding the cost on renovating the schools.

Absolutely, and and definitely understanding the cost and and understanding the community groups and and such in those proposals.

I'm just thinking about as we as the mayor and many of us on the city council is focused on what we can do in our neighborhoods to make to have more development there and have more of what's needed in our neighborhoods.

I know a lot of folks look first to those um spaces that aren't being used.

So just would love to, and I'll ask PDD about this as well, um, be a part and see more around what are we doing for those type of structures in the uh neighborhoods.

Uh, my next question is around um the real estate aspect of it is are you all still contracting with um summit commercial?

Is that the case?

Through the chair, yes, we have we are.

Um so we have received some reports about the lack of responsiveness to inquiries, and we can follow up on that.

But just wondering if you all have um how do you all keep track or evaluate how effective those contracts are?

Uh through the chair, you know, we have converts we have team meetings, we have regular team meetings, and you know, quite honestly, I get those calls, and you know, so I talked to an applicant a few weeks ago, okay, and I explained to him where his con where his uh application was.

I had explained the process.

Well, there is no response yet.

So what the applicant did, they came down here at the planning development department, and they said they've been getting the runaround, and nobody is responding, and they haven't heard anything yet.

So I'm not saying that all of those complaints are baseless, but I think you know, too, and then when I talk to the brokers, they said you I talked to them Monday, it's Wednesday, you know.

So they are communicating with the applicants.

However, I don't take it lightly.

I reach out, I have a conversation with the broker, but I also then reach out and have a conversation with the applicant to let them know that at any time they do not feel like they're being responded to, that they can call me directly.

And that's what I you know, that's what I tell them.

And like I said, we have team meetings, and we we discuss this with the uh um brokers and our you know, our team members, you know, about responding and how important that is.

Thank you.

And you know, also through the chair, I'd like to add that you know, the the application process, it it is not a fast process.

There's a lot of checklists, there's a lot of things that goes on with that.

There's a lot of um a lot of entities in the city that will comment on an application too.

Um we try to communicate that this is where it is, we are still looking at it.

Um if there's any questions back to the applicant, we try to get those out as soon as possible.

But it is not a quick process.

So a lot of due diligence that has to go through these applications before it even reaches city council, so city council is comfortable with the due process that went behind it and the recommendation.

Appreciate that, Mr.

Chair.

I just have a follow-up to this question.

How many what's the balance of the inquiries that you all get directly from DBA or through the brokers?

Is can folks reach out directly to you all or is it just through a summit?

Oh, through the chair, definitely they can reach out to the DBA.

Absolutely.

And do they definitely reach out and they do?

Okay.

So I'm just saying on the work share of that.

Uh summit, or how many increases come straight to you?

And through the chair, all applications come through the DBA.

Okay.

All applications come through the DBA.

And so we, you know, we are like the first step of communicating with all applicants.

Okay.

And then once it gets to the point if the city, if the city representatives who review the applications, decide that that application can move forward, then the person is sent an offer letter with the broker's contact information and the price.

Thank you.

I I'll have more questions I'll follow up with, but I appreciate the information.

Thank you.

Thank you, Mr.

Chair.

Thank you.

Member Miller.

Good morning.

Thanks for joining us.

I have a question.

I'm often asked about our commercial corridors and the property owners.

Do you have information regarding who owns particular properties?

Because a lot of our properties in D5, they hit the dangerous buildings uh committee.

So we're looking for some of the owners.

The buildings are secure, they look fine, but we're having a hard time locating the property owner.

Because they are commercial property.

Would you have a list of property owners?

Can I contact you to get some of the information when we can't reach the owner or know their address or phone number?

Through the chair.

Yes, you can reach out to our office for ownership.

But you know, we don't have phone numbers for them, but we can provide the information that we have as far as ownership for the buildings.

Okay, thank you.

My next question is do you own the I believe the city owned property is Considine?

Do you own that?

Is that part of our fleet?

Through the chair, yes, the city owns Considine Recreation Center.

Okay, so when there's rep because I just got an office there, hopefully I'm moving forward.

I know that they are in need of repairs.

So do me as the council person submit those to you.

I know they had a pool there many, many years ago, and a tragedy happened, it's been shut down since.

And we would love to have a pool in that area because especially for summer programs, especially for after school programs, and I know their roof is leaking, so I was wondering would this be the responsibility of the DBA?

Through the chair.

It would uh through the chair.

It would start with the uh general services department, and oftentimes general services department would put it if it's not already on the um the various issues that's going on in that facility with CDD.

So they have uh their workforce who can address it, and then if they need to contract, they will.

But if it wants to become a much larger capital project, like reactivating a pull, yeah, that would probably be something we would get involved with.

Get involved, okay.

And through the chair, I'm sorry, uh, just to piggyback on my director's comment.

I believe that building has a management agreement.

And I'm not sure what that management agreement entails.

Oh, there is a management agreement, but it seemed to be stalled, and I chose to reside there because D5 is so large, and it's hard to bring a lot of our residents all the way to Comey Young or even a butzel.

So I decided to have a hub there, but the building is I'm glad it was saved because we know it was we know the strength behind that, but long story.

I just wanted to help them along because they haven't gotten the necessary answers, but I wasn't sure that it was a hundred percent uh city owned because I have not gotten my portion of the contract back to move forward.

We have the space, we have we're ready, we have the furniture for this space, but we have not moved into the space yet, and we're waiting on the law department to confirm.

So that's why I wanted to ask.

And the last question is do you buy, and I said you're the real estate agent.

Do you buy property for the city?

Uh through the chair.

Um when the city wants to acquire property, we do assist with that.

They are our brokers assist with that.

You know, and so our brokers many times provide, you know, what the market value will be, and however, though, many times the city requests an appraisal on the property.

But it's not necessarily us buying it, it's the city of the city.

Because there's a resistance.

There's a lot of churches that are vacant and they're struggling with their um attendance.

I mean, as they age out, and there's some amazing churches, activities, buildings that I believe in D5, especially one I have in mind that could really benefit in that particular location of uh uh after hours center for our children to help with our curfew violations.

So that's why I was running.

So who do I contact regarding something like that?

I'm sorry, who do you contact as regarding like trying to possibly acquire us portion of land or a building privately owned?

Reach out to me and then we can have that conversation.

Thank you very much.

That's all my questions.

Thank you.

Thank you.

Mr.

President, so much.

I wanted to ask that the uh city service yard uh consolidation.

That's a pretty um major infrastructure project.

Uh how would this project improve um city services for residents?

I mean, I know that it's always a lot of tentacles whenever we start moving things, but in terms of service um uh delivery for residents, uh snow removal, fleet uh management, neighborhood maintenance operations, how sure how how would that improve operations or potentially lower costs for the city to um provide those particular services?

So, through the chair, I think operationally that might be a better suited question for Department of Public Works.

I can tell you for what we're trying to do with the programming of the facility.

Um it's a significant investment that really hasn't been made for the Department of Public Works in any facility in a long time, and uh I've been doing this a long time and general services too.

So typically new facilities coming online, um putting employees in there actually improves the work and the work ethic too of what's going on behind the scenes for those facilities.

Um I I think we have a very good plan in place that will make them more efficient.

Um, but I I again I I don't want to step on DPW's toes with uh how this works and how they you know dispatch from one location versus the other and and and the like.

Thank you.

And then my last question is I know uh Miss Brian, you indicated that you know you all sell at market rate, and I know that's been a challenge for DPS C D moving their property, their inventory because they are you know very strict with that policy.

Um you have a lot of folks.

I'm sure some are the same folks come to you to say, yeah, I just need a couple of thousand dollars and I can do all this with this huge building.

Uh but uh there are some folks who do have some dollars um collected, they do have capital, they do have uh funds that they can utilize to renovate a building if it's you know provided at a uh nominal uh amount and we make those kind of deals all the time with the big dogs, you know.

Um are we making any of those deals?

Because it sounds like we're not.

Are we making those types of deals where we will we would potentially sell these properties at a nominal amount, understanding that they have a capital stack that could in fact improve the project, rehab it, um uh remediate it, and then rehab it.

Uh, are are we thinking about potentially altering our process to allow for that to happen, especially for some of our smaller organizations uh and entities that are uh looking to do some smaller projects in our community that the big dogs don't want to take on because it just is not uh beneficial for them and their return on investment, just looking to see how we're trying to evolve our process and not be so hardcore and end up in a situation uh we clearly not like where where DPS CD is where nothing is moving, but trying to get more of our uh community uh the the buildings and structures in our neighborhoods activated uh quickly and with the community.

Yes, um I'll say through the chair, uh we we do that, but it's not just with the schools that that's done.

You know, we we offer I'll say credits that if someone is a nonprofit, if someone has a business, you know, um adjacency adjacency to it.

Um, you know, someone is bringing in a number of employees, those credits are given for that.

Uh, when it comes to the schools, you know, the like I said it initially, is it's not the price.

The price is not what's going to not make that deal go forward for most properties.

It's the person being able to show that they have funding for that project.

And a lot of times that's what it is.

It's just the funding, it's just the person is not able to demonstrate that.

But we do work with individuals who, like you said, they they have the funding.

We are looking at several um applicants right now for some of the schools.

You know, we're we're working with them to you know make sure that they have enough, and the price is not the issue, it's more so making sure the funding and what they want to do can work or will work.

And and just off the top of your head, can you give us an example of one of those smaller type of projects that we were able to work with and not go through with market rate, but provide some level of discount or credits?

Why why am I blank right now?

Um yes, I uh there have been several very recently, forgive me, I'm just blank, but we have done that.

Uh, I can send that to you response.

I would I would love to see that.

Uh certainly would love to see it in district one.

Um we have a lot of folks who come before us, and you know, we we send folks your way and certainly understand if they don't have the capital stack to develop a building, but if if if what it takes is for us to provide it to them at a nominal amount and it will transform a neighborhood, I think that's an investment that's will well um uh utilize.

I mean, we always use the phrase is the juice worth the squeeze, and in that situation, in my opinion, it would be based on how it would impact that neighborhood.

So we'd love to see a little bit more on that.

Uh through the chair, we we have a we have a massive inventory.

We we are really trying to, hey, can you really do this?

Because we really want you to have this.

So we really are trying to get uh people an opportunity to be entrepreneurs and do the things that they they envision that they want to do.

Um but we're trying to do it uh a very responsible way.

Um especially when it comes to uh a business that has an adjacency and this land is available.

Well, we we try to move a lot to make sure that that business has that opportunity because we want that business to remain, we want them to expand, we want them to get more employees.

So there's there's a lot of stuff that goes into this, but it is a constant moving and and and struggle to to help our people get to where they were trying to get to.

And if I were going online or refer someone online, it would be able to find the properties that you all have in your inventory broken down by district.

Uh well, there's a map that you can see the various properties in.

Yes.

Okay, we'll take a look.

Thank you.

Thank you.

Uh have additional questions that we come in your way as well.

Appreciate the uh responses.

Member Pro Young.

Pro Tim Yeah.

Pro Young.

Yeah, yeah, yeah.

Thank you.

I I am a pro too.

I appreciate that.

Thank you, Ms.

President.

Um, I wanted to ask you very quickly.

One, is there a plan to expand the Detroit Building Authority beyond commercial property at all?

Or is it I I just want to make sure, just from for for from my recollection, is there a plan to expand it beyond your current state where you would where you would deal with residential properties at all?

Uh, through the chair, no.

Okay.

I do not want to deal with residents properly.

Well, well, the what what I I just want to make sure I know it's not what you won't deal with.

I don't want to show they're not planning to do that.

But no plan.

Exactly.

But secondly, I also wanted to ask you, this is a little bit more of a hypothetical, but I want to ask you right now.

So let's say the Gerald Motors building that's right there.

Right now it's under private ownership.

But let's say, you know, there's a plans between GM and Bed Rock to be able to redevelop it.

But let's say hypothetically that fell through.

If it did, would that be a property that would be under, and let's say bedrock then transferred it back to the city?

Say we can't develop it, we can't find anybody else's body and give it back to the city for development.

Would that be a property that would fall under your purview?

Uh through the chair.

If it fell back to the city and it comes into the inventory, yeah.

If it fell back to the city and it comes into the inventory, yeah, I mean, you know, pursuant to whatever the city's direction wants to be, playing development, HRD, the mayor's office, yes.

Right.

Because usually, I mean because even though I understand that's a commercial building, and so I don't assume that would fall into your purview.

I know there's plans for it to be residential.

And so I was wondering, is that something that you would work with?

So there'll be something that'd be under the purview of the executive or leadership to decide what to do with that building.

That's not something that would automatically fall to you.

That would be just is it is it just because of the sheer size of it?

Absolutely.

That's very correct.

Okay.

Very correct.

That's a you know, a much bigger decision than the EA can make.

Right.

Okay.

I I just want to make sure about that.

And then secondly, I wanted to ask you, finally, I wanted to ask you, can you tell me what you're doing or what your plans is involving artificial intelligence and implementing it within the Detroit Building Authority?

Through the chairs, I have no plans for artificial intelligence at this time at the Detroit Building Authority.

Okay.

It's gonna take over the world.

No, no, no, it's no problem.

Well, listen, let me take this time to convince you why you should.

Okay.

So if you were to implement the artificial intelligence structure and data systems, the internet of things for sensors for buildings, if you were to implement the artificial intelligence software, that's the maintenance, energy, and project management and training integration.

It would cost you around 20 million to 39 million for costs.

Okay.

That's the CAPEX, your capital expenditures.

But your operating expenditures about three to six million estimated.

But your benefits, your savings, if the predictive maintenance, the energy efficiency, the construction efficiency, the fraud and waste reduction, your total estimated yearly savings will be 35 million to 55 million dollars per year.

And so I would encourage you to be able to look at that.

One, because we all need to be more efficient, we all need to be more uh uh effective.

But secondly, I think it would put you in a position to be able to actually save more dollars for the city, and it would be easier for us in terms of budget decisions to make more decisions accordingly to how we can say provide more services, also make sure that you're more efficient and effective.

But also, I think it'd be good in terms of the workforce, the things that you're doing to make your job more easier because it's a difficult job that you have.

I don't think people really understand you know what you're doing and the things that are people kind of overlook the building authority and what it does.

I see a lot of potential there with these city buildings, especially with these apartment buildings that can be converted into you know apartments for the homeless like they've done in New York and other such places because we have a housing crisis, and so I think it provides you more leeway, they revise more finances for you to be able to operate.

It also provides more opportunity for us to transform these vacant properties into beneficial properties for the city.

And so I think it's something that you really should consider.

I know cities around the world are considering that as well.

I think the only other um commodity or industry that affects every other area like this is energy.

And so I think this is a real opportunity for you to be able to do so.

So I'll send you the information documents that I have on this to try to convince you, and I'll continue my campaign to convince you for why you should do this.

But I just want to say thank you, thank you all for your work, your service.

But short, always a pleasure to see you, sir.

Thank you.

I am done.

Thank you.

Thank you so much.

Member Waters indicated she had a brief question that she had to ask burning questions.

Very straightforward.

Um, do you offer discounted uh prices to city employees?

Uh for property sales?

Yeah.

I think uh and Joe can speak to this.

We look at each project individually and what they're whomever is trying to develop what appropriately, so it's not just an automatic discount because you are a city employee again.

This comes back to resources.

Okay, all right, I got you.

But we're very much through the chair, we're very much looking at someone's ability to produce or develop to produce or deliver what they're saying they're going to develop, and how can we help them?

Okay, thank you.

Thank you so much.

Thank you for the presentation.

And again, looking for I have a motion.

Got a motion.

I'm sorry.

Um thank you, Mr.

Chair.

Uh, motion to move the market of properties into executive session to further discuss our relationship with brokers and those efforts.

Colleagues, there's a motion on the floor.

Yes, uh, will absolutely motion to move marketed properties into executive session to further discuss our relationship with our brokers and those efforts.

There's a motion on the floor, colleagues.

Any objections?

See none.

That action shall be taken.

Any further, colleagues.

All right, well, thank you so much.

And uh again, look forward to uh having an additional conversation with you, especially about Frisbee uh and the open school on Winston and Frisbee and SDM2.

Just had to drop that in.

Thank you so much.

All right.

We will now have coming forward our next budget hearing for the Eastern Marketing.