Detroit City Council Hearing on Construction and Demolition Department FY2027 Budget - March 16, 2026
Detroit City Council Hearing on Construction and Demolition Department FY2027 Budget - March 16, 2026
The Detroit City Council held a budget hearing on March 16, 2026, for the Construction and Demolition Department (CDD) for Fiscal Year 2027. Director Tim Palozolo presented the department's priorities, including a rapid response team for youth facilities, a shift from demolition to preservation, and a proposed budget of $7.3 million for facilities maintenance and $10 million for capital improvements. Council members raised questions on workforce development, autonomous technology, contaminated soil, EV charging infrastructure, demolition reductions, and property preservation. Public comment focused on contaminated soil testing, mental health investments, and confusion over the health department's schedule. Several motions were passed to include items in the executive session and closing resolutions.
Public Comments & Testimony
- Kamal Clark asked when the health department hearing would be held, noting a schedule change.
- Ronald Foster advocated for fire department improvements, including cancer benefits for firefighters' children and consideration of fire helicopters/airplanes.
- Tahira Amen (online) questioned who would pay for contaminated soil cleanup on private lots and expressed health concerns.
- Betty A. Verner (Soda L for a Black Association) urged the city to waive land use hearing fees for community groups and allocate funds for corridor improvements.
- Justin Dale, Matthew Murray, Tyler Caton, and others (Ginger Root) expressed disappointment that the health department was not present and advocated for increased investment in mental health services, restorative care, and workforce programs for Black men, boys, and families.
- Jabari Cook (District 5 resident) argued that beautification efforts should not take precedence over mental health and restorative care.
- Samsung S M asked how residents will be notified about contaminated soil testing results on lots they purchased.
- William M. Davis urged diversification of the fire department workforce and questioned whether bond money could cover the cost of contaminated soil.
- Mia (District 3 resident) called for demolition of abandoned schools, specifically Courville School at 18030 St. Aubin.
- Owner Papa criticized the lack of a rec center in District 7 and called for more accountability.
Discussion Items
- Director Palozolo presented the CDD's FY2027 budget, highlighting a new rapid response team for youth after-school facilities, a shift from demolition to stabilization, and the end of large-scale demolitions. The department has demolished over 10,000 residential and 380 commercial structures since July 2020.
- Councilmember Young asked about 3D printing, autonomous demolition, and environmental abatement technologies. Director Palozolo stated that 3D printing is being explored for hard-to-find replacement parts, but autonomous demolition is not yet suitable for dense urban environments. He noted that remote-operated equipment is more realistic for hazardous material abatement.
- Councilmember Benson raised concerns about electric vehicle charging infrastructure reliability, noting that 3 out of 4 DC fast chargers are down. He emphasized the need to implement the mandated 39 cents per kWh fee to fund repairs. He also asked about contaminated soil testing in the 3rd district, where approximately 400 publicly owned lots have been tested, with removal and replacement occurring when cleanup criteria are exceeded. A presentation on the issue was scheduled for that evening.
- Councilmember Benson noted a 90% reduction in planned demolitions, 75% in stabilization, and 91% in trash outs from FY25 to FY27. He expressed concern about the impact on neighborhoods and moved to include continued support for demolition as a public health and safety issue in the closing resolution.
- Councilmember McCampbell asked about bringing contractor services in-house and establishing apprenticeship programs. Director Palozolo said he would need to study the trade-specific feasibility. McCampbell also asked about cost recovery for contaminated soil remediation; Palozolo confirmed the law department is investigating.
- Councilmember Santiago Romero questioned the decision-making process for demolishing properties that could be saved with minor repairs. Director Palozolo stated that demolition is a last resort, and the department works with BCED, DON, and the Land Bank to preserve structures. Romero moved to add a preservation plan to the closing resolution.
- Councilmember Johnson raised issues with the Chandler Park Dome, which has been closed during cold weather due to insufficient heating. Palozolo explained that running the mechanical units at higher capacity would damage them, and similar domes regionally face the same issue. Johnson also asked about marketing of stabilized properties and trash-out services for boarded homes; she moved to include trash-out services for boarded properties in the executive session.
- Councilmember Miller asked about constructing new recreation centers, noting that some districts lack them. Palozolo confirmed the proposed budget does not include new construction. Miller also requested a meeting with the Brush Park residents regarding contaminated soil at a planned dog park and children's park.
- Councilmember Waters noted that a $1 million apprenticeship program she started last budget cycle had not been communicated to the department. She also asked about the percentage of contracted-out services. Palozolo stated that 100% of demolition is contracted out, while 100% of stabilization is done in-house. Facilities maintenance varies by trade.
Key Outcomes
- Motion to place the entire CDD budget question into executive session – passed without objection.
- Motion to include in the closing resolution advocacy for continued demolition as a public health and safety issue – passed without objection.
- Motion to include in the executive session a discussion on in-house services and apprenticeship programs – passed without objection.
- Motion to add a preservation plan for properties to the closing resolution – passed without objection.
- Motion to include trash-out services for boarded properties in the executive session – passed without objection.
- The meeting was recessed until 2:00 PM for the Detroit Transportation Corporation and DDOT budget hearings.
Meeting Transcript
Put the priority first. And colleagues that have been asked that we do speak into the microphones. They did ask us in the back. Folks have been reaching out saying they can't hear us, and they've been having some audio challenges and potting us up. So if we can please speak into the microphone. Thank you. Thank you. Well, good morning. Good morning. Again, introduce yourselves, and the floor is yours to begin. Thank you. Good morning, Council President, Pro Tem and Honorable Council members. My name is Tim Palozolo. I'm the director of the construction and demolition department. And it is my honor and privilege to present Mayor Sheffield's budget for fiscal year 2027 for the construction and demolition department. We got to get the slide deck up. This is always the fun part. Yep. Apologies, give us a second. Good morning. All right, there we go. Morning. I actually like to begin with one of our priority initiatives for fiscal year 27. Next slide. In alignment with Mayor Sheffield's vision to support youth mentorship and workforce development program. CDD will create a rapid response team to address any repair and investigate any improvement to city facilities that provide after school programming to protect and promote a continuity of quality service for Detroit youth. During peak operational hours, we intend to staff uh those facilities uh with personnel on site and during off-peak hours. Our uh intended target is for teams to respond within one hour of notification of the c of the request or the issue. Uh our mission next slide is to enhance and improve the quality of life of Detroit residents through the maintenance, repair, and improvement of city facilities and assets, the securing of vacant and open residential and commercial structures, and the cleanup of residential properties, and finally the elimination of blakant vacant and bladed structures. Our core pillars are to provide a service that is first and foremost customer focused. We will begin and end every day with our customers' needs in mind. We will uh listen, we will ask questions, and we will engage our customers with honesty and appreciation. Next, we will be data driven. We will collect, utilize and share meaningful data about our services. We will collect the data that matters to our customers and ourselves. We will utilize that data to drive efficiency and effectiveness, and we will share data, our data to promote transparency and trust. And finally, we will be dependable. We will say what we'll do, and we will do what we say. We will show up and we will be present for our customers and for ourselves. I'd next like to introduce our operational units. First, we have our facilities' maintenance team with a staff of more than 50 skilled trades, project managers and supervisors. The facilities maintain maintenance team truly embodies the Detroit Hustles Harder Spirit. The team provides routine and preventative maintenance and manages both minor and major repairs for over 140 facilities across the city and includes recreation centers, transit centers, splash pads, comfort stations, police stations, and firehouses. On an annual basis, the facilities maintain maintenance team completes more than 6300 assigned tasks for an average of about 17 tasks per day. You can see the breakdown of tasks by trade group category, structural, electrical, mechanical, and plumbing. For fiscal year 27, we have proposed funding of approximately 7.3 million dollars for both professional and contractual services as well as operating supplies. The department utilizes outside contractors to supplement our current capacity when necessary, and also provide specialty services that we don't currently have in house. They are responsible for new construction and major rehabilitation projects. The Capital Projects team truly builds the assets of tomorrow today. They work in close consultation with the administration and client departments to align funding opportunities for and long-term service goals to deliver assets that truly work for Detroiters.
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