OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Budget, Finance and Audit Standing Committee Meeting – March 18, 2026

City CouncilWednesday, March 18, 2026
BodyDetroit, Michigan
SessionCity Council
DateWednesday, March 18, 2026
StatusFILED
Video Record

STREAMING COPY IN PREPARATION — RECORDING AVAILABLE FROM THE ORIGINAL SOURCE

Transcript — Verbatim
0:00

Good afternoon.

0:00

I'd like to call the budget finance and audit standard committee meeting of Wednesday, March 18th, 2026 to order.

0:09

Will the clerk please call the roll?

0:11

Good afternoon.

0:12

Councilmember Daniel McCampbell.

0:13

Present.

0:14

Councilmember Letitia Johnson.

0:15

Present.

0:16

Councilmember Mary Waters.

0:17

Present.

0:18

Mr.

0:18

Chair, there's a quorum.

0:20

Thank you so much.

0:23

I'm going to move us on to approval of the minutes.

0:27

I believe let me just make sure.

0:28

Yep.

0:29

Um, folks should have received the minutes from our last meeting.

0:32

Is there a motion to approve?

0:35

Motion to approve.

0:36

All right.

0:36

There's been a motion still no objections.

0:38

The minutes shall stand approved.

0:41

That'll move us on to chair remarks.

0:43

Um, just will say please do continue to engage around the various budget hearings that we will continue throughout the month of March and attend the public hearing as well at the end of the month.

0:55

That's it for my uh chair remarks.

0:58

We'll now move on to public comment.

1:00

We'll open public comment recurs for public comment.

1:03

We'll excuse me.

1:08

We'll close at one ten p.m.

1:10

Please limit your remarks to one minute.

1:13

We'll start with those in the room, and for those who are participating remotely, please use the raise hand feature and you'll be called in order.

1:21

Do we have any requests for public comment in the room?

1:24

Seeing none, that'll move us on to Zoom.

1:30

Good afternoon, Mr.

1:31

Chair.

1:31

We have six hands raised for public comment.

1:35

Uh as of right now, our first speaker is Owner Papa.

1:39

Good afternoon.

1:40

Um, you have one minute for public comment.

1:52

Ms.

1:52

Hughes, if you can hear us, you have one minute.

1:55

Good afternoon.

1:57

Good afternoon.

1:58

I'm sorry you dropped us down to uh one minute.

2:01

Good uh good afternoon.

2:02

Um Detroit has a three billion dollar budget.

2:06

And I I really believe that the that the citizens, the legacy citizens, are being cheated out of most of their federal dollars that come back to the city.

2:13

Uh I can't see a dime of my federal dollars coming back to me.

2:17

Uh my surplus tax dollars that which could build a rec center are being given to uh corporate America to fill their uh income shortfall for all of the uh legislation that you all have implemented and ordinances to um embellish these people.

2:34

Uh Miss Varner ought to get her sixteen hundred dollars for her um whatever she has to pay to beautify her neighborhood when we have five dot two, which is on the agenda, which is you know it's really strange how that money got spent, but I'm pretty sure there should be ARPA money for her to have for and in any other block club.

2:54

Um we could we in the sixth division, maybe we need to think about getting our own um uh trash hauling and all that thank you.

3:04

Um public comment is one minute because we are limited to one hour for our committees during budget season.

3:11

Next speaker.

3:12

Our next speaker is William M.

3:14

Davis.

3:16

Commissioner Davis, good afternoon.

3:18

You have one minute.

3:20

Uh good afternoon.

3:21

Could I be heard?

3:22

Yes, you may.

3:23

I look forward to a greater effort to make sure uh district seven gets at least an additional library and for us to have a functioning rec center sometime soon.

3:37

Uh also think that right now, district seven is being shortchanged because we pay more property tax in most districts, and we have less services available to us.

3:49

Uh we're the third largest district, and the second largest with the number of school age children, but it looks like the city does disregard that.

3:59

Uh, if they if nothing else changes, maybe we might need to go back to citywide city council people because we're being shortchanged over here.

4:09

Y'all have a nice day.

4:11

Thank you.

4:12

Next speaker.

4:14

Our next speaker is Detroit Resident Detroit resident.

4:25

Good afternoon.

4:25

You have one minute.

4:29

Good afternoon, may have you heard it?

4:31

Yes, you may.

4:34

Okay.

4:35

Um first of all, I urge you in terms of the VZA budget to look at the past contract services for uh uh the court transcribers, and again, ask yourself why is it up until just a year or two ago uh or is it that that they're now trying to charge for these transcripts?

5:09

Um that's not right, and there ought to be a way to find some sort of book contract for any other part of the city that has to get transcripts to uh get some kind of economy of scale.

5:22

So we're not charging these outrageous fees of over seven dollars a page, which is prohibitive.

5:28

Also, the snow is melted and there's litter everywhere unless you're downtown or by the DIA and thank you.

5:38

Next speaker.

5:41

We've had a few people drop off, and so our last speaker is phone number ending in 039.

5:47

Phone number ended in 039.

5:49

Good afternoon.

5:50

You have one minute for public comment.

5:58

Hey, Ms.

5:59

McCampbell, you cut it down in one minute because of the budget hearings.

6:04

Oh, hey, it's up.

6:06

Scott Vincent is busted.

6:08

Dennis Murphy is busted, keeping in the election, and I'm Mr.

6:12

Root.

6:12

And Mimi won't what you won't, and y'all gonna ain't got no choice but to give it to her because the truth is the truth.

6:20

The truth is the truth.

6:21

Kinesha did not shoot herself, and uh how much I division for the Detroit Police Department is on straight VS.

6:29

And I'm Mr.

6:30

Root.

6:31

And Mimi won't what you won't.

6:33

That's my word.

6:35

It's up.

6:39

All right, thank you so much.

6:41

That brings us to the end of public comment.

6:44

Uh or just if there's any responses, I'll just say for um trash and such, now that the snow has snowing.

6:53

If there is any businesses that you see that has a lot of trash out or or such, please let us know.

7:00

Um also with the BZA, we did put that conversation on court reporters into executive session for the budget.

7:07

Um, and as mentioned about district seven, um, we did put a conversation around capital improvements for the library into the executive session as well.

7:18

Um, as Commissioner Davis and I and many others were at the uh Rouge Park uh membership meeting last night, and we know that there would be an announcement in April on the recenter to be built at that site.

7:33

So soon to come or more information on that for my colleagues.

7:37

Anything all right, that will move us on to the the agenda under unfinished business um 5.1 from myself submitted a memorandum requesting resolutions on Senate Bill 559-560 and 561 in the in the Senate and then the House for 311 and 4312.

8:03

Uh is there a motion?

8:05

Can I get a motion to discuss?

8:07

Motion.

8:08

All right.

8:09

Um I would just say so.

8:10

This is a memorandum in support of bills that will establish a revenue sharing trust fund at the state level.

8:18

Um, as folks know the city depends on um revenue sharing from the state and want to make sure that the city of Detroit gets their fair share, which we have not gotten in the number of years, and also to make sure that their funds are protected from any type of political interference on the state level.

8:38

Um, so I I will have a motion to bring this back, but I just want folks to know that uh I'm can in continuing conversation.

8:45

I know many of us are uh bringing that up always to make sure that we are getting our fair share so that we can fund the programs and services that our residents depend on.

8:56

And with that, could I get a motion to bring this back in one month, please?

9:02

It's been a motion to bring back in one month, seeing no objections, the action shall be taken.

9:08

That will move us on to 5.2.

9:12

Um, this is from the office of the auditor general audit of the American Rescue Plan Act Neighborhood Beautification Initiative Program Operations.

9:22

Um, this is there a motion to discuss?

9:25

Motion there's been a motion to discuss.

9:27

We brought this back from uh uh last week um on the conversation, and I know we had further questions for um the administration.

9:38

So I believe we have um Terry Daniels and Regina Greer here, if you can come forward through the chair online.

9:50

We also have Martha Poissier.

9:53

All right, good afternoon.

9:56

Thank you for being here.

10:01

Regina Greer, Chief Deputy CFO for the Office of the CFO.

10:07

Terry Daniels, Deputy CFO Office of Development and Grants.

10:11

Thank you.

10:13

And on Zoom.

10:20

If you could just come off mute on Zoom and introduce yourself for the record.

10:31

It's a little hard to hear you.

10:34

I'm sorry.

10:35

Is this better?

10:36

I'll try to speak up.

10:37

Yes, that's better.

10:38

Thank you.

10:39

Sure.

10:40

And if you just reintroduce yourself one more time.

10:44

Of course.

10:44

Martha Poter with the Neighborhood Economic Development Team.

10:49

Thank you so much.

10:50

Thank you all for being here.

10:52

We did have a few questions on the auditor general's report to this.

10:57

And I just want to open the floor for my colleagues before I proceed.

11:03

Anyone have any additional questions?

11:06

No.

11:07

Okay.

11:08

I just wanted to for myself, uh, just thinking about uh one thing that was missing from the Auditor General Report is the corrective action on some of the things that were brought up.

11:16

So just wanted to get a status update on that and see if there has been any action since we heard or since the um Auditor General Office contacted you all.

11:27

Yes, to you, the chair.

11:28

Um we have drafted our uh corrective action responses uh for the auditor general.

11:34

Um I apologize, there was some miscommunication regarding the response um and the timing for submission.

11:39

Um so we have prepared that and uh we'll be submitting that.

11:43

Okay.

11:44

And um, do you do you have a timeline on when that submission was uh we'll actually submit by the end of the day today?

11:51

Okay, thank you.

11:52

I'm looking forward to seeing that as well.

11:55

A lot of my questions come from that and the corrective response.

11:59

So I'll I'll submit those in write in.

12:01

But um I appreciate you all coming up.

12:03

We just wanted to uh we heard from the Audit General's office and just wanted to hear from you all on that matter.

12:08

Um, with that anything else further.

12:12

Oh, okay.

12:16

Member Waters.

12:17

Oh, okay.

12:18

All right.

12:18

So um regarding ARPRA.

12:22

We certainly don't want to return any dollars.

12:26

Um do we have plans for redistribution of the money that's not spent your programs that we're that are working well that are not working well or working well through the chair to council member waters.

12:41

Uh this project in question that um was uh reported on by the OAG, that that project is completely done, and a hundred percent of those funds have been expended.

12:52

Really?

12:53

Yes.

12:54

Are we gonna spend them, huh?

12:55

We're gonna spend everything.

12:57

Well, I like to hear that.

12:59

You know, I'm gonna go ask the president for some more money.

13:04

All right, thank you.

13:06

Thank you.

13:08

One addition.

13:09

Oh, Vice Chair Johnson.

13:10

Thank you, Mr.

13:11

Chair.

13:11

Um, through you to Miss Poltair, um, I believe one of the um topics of conversation was about the seed program.

13:22

Um, if you can share how what we're doing to bring it back on track through the chair, um councilwoman, thank you for your question.

13:33

That um the seed program has been fully spent down.

13:37

Um there were some delays, as you I'm sure are very familiar with um development and construction projects.

13:43

Um seed was just one of the pieces of funding for um uh five developments with uh many different sources in their capital stacks, CDFI, traditional funding, um, some had MEDC products in them.

14:01

Um, and so everyone I should say all of these sources had their own underwriting considerations.

14:08

Um, some of the projects took a little longer to close, and because this program was a reimbursement-based program, the developers then had to spend down the eligible funds before we could release the ARPA money to them to reimburse them for those eligible expenses.

14:24

Um they unfortunately did run into a few delays, but as of now, all of the money for the seed program has been spent down, and and we are closing it out in the process of closing it out.

14:35

All right, thank you.

14:36

That's very good to hear.

14:37

Um, if you can provide us with the five entities that receive uh funding support, that would be great.

14:44

Thank you.

14:45

Oh, absolutely.

14:46

I'll send those right over.

14:47

Thank you.

14:48

Thank you, Mr.

14:48

Chair.

14:50

Thank you, Vice Chair Johnson.

14:52

I I just had one additional thing um in the report, and this may be in the corrective action.

15:00

So um, but in the report, there was one aspect that wasn't changed in Oracle around the contract.

15:03

Um, just wanted to know is there a formal policy in place to change those contract amounts if they're changed by city council or anyone else to just make sure tracks.

15:14

Uh to the chair, the um the contract that was referred to as expired.

15:22

So because the contract's expired, no additional spending can be done, uh, which means that there cannot be any um overpayments.

15:30

So the purchase order is what we actually reduced um instead of the contract.

15:36

So when we reduce the purchase order, that excludes all uh eliminates any possibility for any spending.

15:43

And the contract can stay at the full value because it is expired.

15:46

Got it.

15:47

Okay, thank you.

15:49

All right, anything further?

15:52

All right.

15:52

Well, I thank you again all so much for coming before us and and look forward to that um correct of action plan.

15:59

Thank you all.

16:00

Thank you.

16:05

All right, colleagues, is there a motion to receive and file five point two?

16:12

There's been a motion to receive and file 5.2.

16:15

Seeing no objections, that action shall be taken.

16:19

That will move us on to new business.

16:33

And under new business, we have um 6.1.

16:38

Submit a report uh relative to the fiscal year 2026-2027.

16:44

Mayor proposed budget and four-year financial plan.

16:49

Is there a motion to is there a motion to discuss?

16:54

Motion.

16:55

Um Mr.

16:56

Corley, just want to make sure that's nothing else from LPD on this.

17:00

Um thank you, Mr.

17:01

Chair.

17:02

Gathering City Council.

17:03

I would say you can receive and file it because right now, of course, council is deliberating over the budget.

17:08

Thank you.

17:09

Just wanted to make sure.

17:10

All right, there's been a motion to receive a file six point one.

17:14

Seeing no objections, that action shall be taken.

17:17

Thank you so much.

17:18

That'll move us on to 6.2 um from the office of city clerk city planning commission, a neighborhood enterprise zone certificate application for the construction of a new single family house at 2505 Townsend Street in the West Village Neighborhood Enterprise Zone Area.

17:36

Is there a motion to discuss 6.2?

17:39

All right, there's been a motion to discuss 6.2.

17:42

Mr.

17:42

Gulag, good afternoon.

17:46

Hello, Mr.

17:46

Chair, Chris Gulak, CPC staff.

17:48

We're also joined by the developer John Boras.

17:53

All right.

17:55

If you could um, Mr.

17:57

Boros, if you can introduce yourself for the record.

18:08

Hi everyone, I'm sorry if you're having trouble hearing me.

18:10

Uh my name is John Boros.

18:12

I'm the developer and the builder of the project.

18:15

All right, thank you.

18:16

Um good afternoon, Mr.

18:17

Gulag, the floor is yours.

18:20

Thank you.

18:21

Um this is uh NET certificate request.

18:25

We submitted a memo and a resolution for your consideration.

18:28

It's at 2505 Town Street.

18:32

This red dot shows the general location.

18:34

That's uh it's on the west side of Townsend, Lower East Side, between Charleboy and Werner, just north of the Blutzel Family Center.

18:43

You can see there's existing houses on the street, but there's quite a lot of vacant lots as well.

18:48

Zooming in closer, this is the location.

18:53

It's in the West Village NEV, which is approved by council back in November of 2000.

19:00

This um turquoise box kind of shows the outline of the West Village NEZ.

19:05

It's about 87 acres.

19:06

And over the year there's been some some new construction and rehab in this area.

19:12

So the property is vacant land, it's owned R2, two family residential.

19:15

It's a smaller city lot, 30 feet by 100 feet wide, uh, 30 feet wide by 100 feet deep.

19:21

Uh records show that uh the developer did purchase this from the land bank in November 2025 for 7400.

19:30

So the owner of the property is Kaylate Holdings, which is the developer John uh Boros.

19:36

Um he's a general contractor, and um he indicates that is his company builds modern attainable modular housing on Detroit's existing lots for more affordable homeownership.

19:52

So this is a new construction proposal for new construction.

19:55

I believe the units are partly assembled in a factory, and then they're assembled at the site.

20:00

There would be a basement for this one.

20:02

So the house would have two stories, three bedrooms, and three bathrooms.

20:07

Mr.

20:07

Bor Boros indicates it would be high performance building, energy efficiency windows, modern HVAC.

20:13

The cost of build is about three thousand 345,500.

20:17

And the estimated sale price is 399,000.

20:22

This shows the site plan for the proposal on the west side of Townsend.

20:26

You can see the law rectangular shaped building.

20:31

This is the blueprints for the project.

20:35

So these would be two modular units stacked on top of each other to uh tied together.

20:40

Um when they ship them, they can only be 15, no more than 15 feet eight inches wide on the semi-truck.

20:47

So that's the maximum width of the uh units.

20:52

They do propose a front porch and um windows, etc.

20:57

So regarding parking, they do propose two surface parking spaces in the back.

21:01

Uh regarding accessibility accessibility, uh develop developer indicates the houses designed and constructed and meet applicable building codes, which is not does not require handicap accessibility.

21:12

Um and then lastly, um the proposal the petitioner did submit the NEZ certificate application to the city clerk's office uh February 19th, 2026.

21:23

The petitioner indicates they applied for a building permit last summer back in August of 2025.

21:29

They were issued a building permit in October, uh October 2nd of 2025, and the house is already under construction, which is allowed under the NEZ code.

21:37

Um so the NEZ Act allowed they they prefer you to apply for the NEZ apply for the certificate uh before the building permit is issued, but you do have a six month window, uh, and they're still within that six month window where the building permit can be issued, and then they then the any of the application can be after the fact as long as as long as it's not later than six months.

21:58

So now we're only about four months later.

22:01

So in conclusion, here's a couple of street views of the house.

22:04

They do propose, as I said, different types of uh siding on the top and bottom, front porch.

22:10

Here's a picture of the rear of the building.

22:12

Uh I believe the developer is giving tours to uh for the projects, including city staff.

22:18

Um this is some images from the inside.

22:22

Uh so it has all new features, the brand new house uh for the basement.

22:26

Um so that concludes my overview.

22:28

Uh it's confirmed as being in in the West Village NEZ zone.

22:30

Staff was recommended approval and a resolution is submitted for your consideration.

22:34

Thank you, Mr.

22:35

Chair.

22:36

Thank you, Mr.

22:37

Gulag.

22:38

Uh Mr.

22:39

Boros, do you have any addition to uh any additional things to uh um I think Christopher, thank you so much for walking us through that.

22:48

Uh I believe you've got the meat of the details, and as he mentioned, if anybody would love to come check out this project, uh we are trying to bring more modular construction to the city, and we're trying to work specifically on urban infill um throughout the neighborhoods of Detroit.

23:02

So that what you're seeing is actually a pilot that will be the beginning of a larger scale effort to bring two bedroom and three-bedroom models using modular construction to the city.

23:15

And um, one thing I would add is that these are made in Michigan.

23:18

There's a company called Ritzcraft, that's our manufacturer, so they help design and manufacture all of these.

23:23

They're brought in by truck um about two and a half hours distance, and we set them in a day.

23:29

So it's it's a pretty incredible process.

23:31

If you haven't seen it, I'd love to have you out on the next one.

23:33

But I'll leave it at that and happy to answer any questions you may have.

23:37

Thank you so much.

23:38

I will open up to questions from our callers on the committee.

23:44

Thank you, Mr.

23:45

Chair, and good afternoon to you both.

23:48

Thank you for the presentation.

23:50

Um, Mr.

23:51

Burrows, can you share whether or not you have um developed any other single-family houses in that area, or are you just getting started?

24:01

Um, Ms.

24:02

Vice Chair, we are we are just getting started.

24:04

We actually are currently in the process of acquiring seven lots across the street so that we can bring more um in fill development there with um a bit more density along the block.

24:17

So while it is a pilot, what we've been able to prove with this pilot is uh standard systems, trade networks, and really making sure that we can roll these out as efficiently as possible.

24:28

So the with a goal of knocking these out within three to four months um from permit.

24:35

So it's it's just the beginning, but it's definitely where we are we are headed.

24:40

Thank you.

24:41

I'm curious to know if you've had um any engagement with the community.

24:45

If you're planning to develop more, have you talked to anyone within the community about the work that you're doing?

24:52

And um talk to me about the aesthetics of the um the facade of the buildings.

25:01

Can you share how you ensure that they don't stand out in a in a way where it's clearly not harmonious with the existing infrastructure?

25:14

How do you determine what the facade of the the buildings will look like?

25:19

Sure.

25:19

So let me answer the first one.

25:21

Uh regarding the community, yes, absolutely.

25:24

Um, we've spent a ton of time not only directly with the members of the community living on the block.

25:29

I've been there pretty much all day um throughout the entire fall as we've been doing excavating, as we've been getting into construction.

25:37

So I've met most of the neighbors on the street and have gotten really warm welcomes and actually a lot of positive um a lot of positive responses about bringing new development to the neighborhood.

25:50

And the way that we build is actually very uh low disruption.

25:54

So being that it's modular, we don't work on the site for 12 months out of the year.

25:58

We have kind of a concentrated three-month period where we set the house and it's finished within a few months.

26:04

So everybody's actually been really, really um thankful for that.

26:09

Um we've had even 12 members of the city out within a few weeks.

26:15

Just yeah, um, just three weeks ago, we had members from PTD, HRD, um, B seed, uh, DLBA have all visited.

26:23

So it's it's been very much um uh a group effort here, bringing everybody involved who are excited to see more of this type of construction.

26:32

We've also worked with um Church of the Messiah, have had some really good networking opportunities with them, um, Genesis Hope.

26:40

So our goal is to really continue growing those networks.

26:45

I'll be perfectly honest.

26:47

This is as you know, our first project.

26:48

So we're definitely working to continue to increase all of the touch points that we have throughout not only our block, but the greater island view neighborhood, the villages as a whole.

26:58

Um, and so it is the beginning, but I think we've we've done a really good job um building that infrastructure.

27:06

For your second question, the exterior is actually it is very important that we get it right.

27:13

Our goal is not to stand out um to make a structure that's going to look as though it does not belong in the neighborhood, right?

27:20

It's it's very important to us that it does aesthetically fit seamlessly, and that when people drive by, they're not thinking, oh, that's weird.

27:29

Like, why that doesn't stick out like a sort of thumb.

27:32

And to be honest with you, I've had multiple people say that they thought this was a renovation.

27:37

They'll even stand inside and say, wow, like you guys did a great job with this renovation.

27:41

And when I tell them it's a new build, a lot of times um they would have had no idea.

27:49

A lot of time to make sure that not only this one for the pilot project fits in seamlessly, but every other future design is going to have details that you're going to find throughout not only the Island View neighborhood, but Detroit as a whole.

28:02

So it's certainly something we take into consideration and we take that to heart.

28:08

All right, great.

28:08

Thank you.

28:09

Um, and I'm glad you've been engaged with the uh community.

28:13

Um, I think I always think that is something important to do, especially if you're planning to develop several um units within that neighborhood.

28:23

I do want to ask, um, have you had any challenges tapping into utilities?

28:32

It's a that's a great loaded question.

28:34

Um so luckily for us, utilities were on the so the water main was on closer to our side of the road in the in the street.

28:42

So tapping in was not that challenging, it's pretty straightforward.

28:46

I'd say the repair work of the tapping was something unexpectedly high for uh road repair costs, and then for um sewer line, everything was is pretty straightforward.

28:56

So we didn't have any um nothing was a surprise to us.

29:01

The only thing I can tell you is you know, we did have a lead line coming from the previous um main for the water line.

29:07

We had to cap that off, remove that.

29:10

And so, you know, there was there was that that we we didn't know or didn't didn't expect, but otherwise, I mean, it's pretty pretty straightforward process, yeah.

29:19

Uh, how about for uh electricity as well?

29:23

Not bad.

29:24

I mean, you do, I will say the the key here, and I heard this from multiple builders.

29:28

I've been building my uh my network as well with these individuals who have been in the trenches for years here in the city working and building um on infill lots, and they gave me advice of just staying ahead of the DTE process is as far upstream as I possibly could, and I did.

29:45

And so really it wasn't it wasn't bad.

29:49

Um they wait until you have the structure on the foundation before they can come and provide a meter.

29:55

They did underground trenching into my back back area where the alley is located.

30:00

We've got new poles, so it's actually pretty convenient for them to um basically go underground under the alley, tie into the uh the pole.

30:10

And we had power within I think 12 days of having the house set, but it was because of all that upfront work, you know, to get it on the schedule and to make sure that somebody was going to be coming when we were ready.

30:23

All right, great.

30:24

Glad to hear that.

30:25

Um, and I'm hearing that DTE is doing more underground um lines, running more underground lines uh lately, especially if power was cut to the pole in that general area.

30:38

Um, so I'm glad it didn't extend the amount of time for you to complete your development.

30:46

Um my last question is I know at one point there was some conversations around modular builds and um a lot of people utilizing them for uh efficiencies.

30:57

Uh I think there was a hope or thought that it would help to reduce the cost of the builds.

31:03

Do you foresee that at all?

31:07

I think with so you're right, there is a bit of a misconception.

31:11

And to be honest with you, I did find that I mean let me just be honest with you.

31:17

The the reality is I'm a builder paying another builder to build a house in a factory.

31:22

So you know that there's gonna be some additional markup associated with that work, and that's just the reality of it.

31:28

It's really the speed in which you get all of the the house delivered, which cuts down on any interest, any carrying costs, those types of things.

31:36

So when you look at it at scale, I would say no, this individual project is not going to be less than if you stick built it on site traditionally.

31:46

It's just the way it is.

31:47

Um, the more you have scale, and like what you're seeing with Genosco when you get into multifamily, I mean, absolutely you have cost savings at that scale.

31:55

You absolutely have cost savings when you do nine of them, five of them, ten of them.

31:59

So I think that's where you're gonna see the most savings and possibly even some concessions from the factory if they have enough volume and consistency with with their client, they may be willing to make some breaks for you.

32:13

So that's where we are.

32:14

We're we're working on too just value engineering the system so that we can really fine-tune where those extra costs are coming in and getting the best efficiencies with vendors as we scale to do more at a time so that you can actually reduce the cost of the house, the sales price, and and make it truly attainable for people.

32:34

So yeah, it is a bit of a misconception, but I do think I wouldn't be building modular if I didn't believe in the promise.

32:41

Thank you.

32:42

Um, and I I would be interested in coming by to see the property because I'm really with the price point and and with what you just indicated, um, quality and ensuring that the property will be there for decades is the next expectation or the the question, right?

33:00

Um, because this is relatively new at that price point.

33:05

I would love to just expect that it's going to be around for a hundred years, um, like our houses in Detroit have been.

33:13

So would would really be interested in coming by to see the place.

33:17

So thank you for the offer.

33:18

Thank you, Mr.

33:19

Chair.

33:20

Absolutely.

33:21

Thank you, Vice Chair Johnson, member Waters.

33:24

Thank you.

33:24

So good afternoon.

33:26

Um this is your very first pilot.

33:30

Is that correct?

33:32

That's correct.

33:34

Anywhere, not in not in Michigan, no, nowhere.

33:39

No, it's designed specifically for Detroit infill.

33:43

So this is our first, our first pilot, and we're we're building here.

33:46

Oh, okay.

33:47

I I was just trying to clarify whether or not you hit done pilots anywhere else, even in Michigan or some other state or city.

33:55

This is what I was trying to clarify.

33:56

But you're saying this is the very first time ever.

34:00

That's correct.

34:01

Okay, all right.

34:02

All right, so um, why Detroit and that area.

34:08

I'm just curious.

34:09

First off, well, I I I live here and I've I've lived here since 2013.

34:13

I believe in the resurgence of Detroit.

34:16

I believe in the revitalization, and I believe there's a unique opportunity here with all of the available land, right?

34:23

There's over 63,000 vacant lots in the city with the land bank authority alone.

34:27

That that number might be fluctuating here at the time, but there is there's a unique opportunity here to help um build new houses and do it in a way that I think is maybe different and and more innovative than some other cities and in other ways that I think other cities really can't achieve.

34:45

So to me, I think what we're trying to do with Keelite and the revitalization of neighborhoods is is something that can be essentially um scaled up across not just in the like Island View where we are and the East Village.

35:02

We could bring this anywhere in the city.

35:04

Um so I I just think Detroit is a very special place and it is a very unique market, and there's a lot of opportunity um to test and grow and scale this um this process for building.

35:16

You live here in Detroit.

35:18

Yes.

35:18

I live in the Bagley neighborhood, yeah.

35:20

In the Bagland neighborhood, okay.

35:22

Um what neighborhoods are you planning to go to next in terms of development?

35:28

Have you have you thought about that?

35:30

You right now you're started in West Village, which which is a great neighborhood, great start.

35:34

Uh and you have your eyes on other opportunities thus far.

35:40

Yeah, certainly.

35:41

So I I would say we're new construction is incredibly limited to markets that have um appraisal values.

35:51

You know this as well as anybody, right?

35:52

It's like you've got to go somewhere where you're gonna at least recoup your build costs, and if you can make some of top great, that's the the point of the business model.

36:01

So there's there's really some key markets that do fit that description.

36:04

Obviously, East Village, West Village, Island View, um, are areas where right now you will be able to get comps, especially with the great work that Greatwater is doing over on Kirchable.

36:16

They're kind of helping create that node structure where other builders can come in, like myself.

36:21

In fact, to be perfectly honest with you, one of the main reasons this area was selected is because there are comps in the area.

36:30

Otherwise, you wouldn't be able to, you wouldn't be able to get a return or even break even on a project if you if if not so um core city, North Corktown.

36:41

There's a lot of other areas on the on the west side that are certainly ripe and ready and already have a lot of great development um and great momentum.

36:50

So we are essentially sort of following where the work is already happening so that we can make sure that anything we build will be appraisable.

37:01

And so that's kind of the simple strategy of it.

37:05

And and you were right, it's very difficult these days to determine, you know, these comps are very, very difficult given the all the vacant land that we have and so forth, not enough properties here.

37:19

So yeah, I do understand that.

37:21

Is that how you came up with your your price for the for the home for the sale just based on the comps in the area?

37:29

That's that's how you determine your price?

37:31

Sure.

37:31

It's definitely based on comps.

37:33

Um, it's based on build price, and and it's based on, you know, our mission is to get houses below 400,000.

37:41

Like we're not here to make a luxury item, and we're also not here to sell something that's questionable.

37:46

All of our all of our stuff is built with good materials, two by six framing outside, good insulation, high performance, all that stuff.

37:52

And we just think that we need to get houses down below 400,000 to make them reachable.

37:58

Um it's just crazy how expensive houses are getting and new houses alone.

38:04

400 is is hard to find.

38:06

So that is our mission.

38:07

We're gonna achieve that through smaller houses.

38:11

We think 1100 square feet, a two-bedroom house, um, two and a half bath is something that people would really enjoy having.

38:17

We're seeing a lot of sales of that size in the market as it is today.

38:21

Um but yeah, I think I think that's the price point we we need to get to consistently.

38:27

Oh well, well, that's good because you know we do need more um homes for families.

38:33

We really do.

38:34

And and I am um interested myself, um, just like my colleague from District Four, um, taking a look at it, you know, um, seeing if it's gonna be energy efficient.

38:45

I'm sure that it is, right?

38:47

Um and just what this whole thing looks like, because we have so much vacant land here.

38:54

I'm looking for you know, developers to come in and just you know, develop all around this city, frankly.

39:04

Absolutely.

39:05

I would I would welcome you to come visit.

39:07

Um, I think you're gonna be really surprised with with what you see here.

39:11

Christopher mentioned the width of the the module can't be beyond five foot eight inches to legally go down the road.

39:19

And so what we've done is I'm sitting in it right now, actually.

39:22

We have created nine foot ceilings on both floors, even in the basement.

39:27

We've got large windows, a lot of light.

39:30

So when you walk in, I I'd be curious your your first impression.

39:34

It often looks like narrower from the street than it does on the inside, like an illusion in a way.

39:39

And so um, anyway, I'm excited for you to come visit.

39:44

There's more space.

39:45

Yeah, exactly.

39:48

Okay, all right.

39:48

Well, well, then thank you so much.

39:50

Thanks for sharing, and thanks for doing the development.

39:53

Thank you.

39:53

Of course, no.

39:55

Thank you.

39:55

Thank you, Member Waters and Mr.

39:57

Boris.

40:00

Boris, um, yes, I you can add me to the list of folks who would love to come see.

40:02

Um, especially as you know, the mayor has um indicated the uh uh initiative to build a 1,000 homes with infield housing and want to see what we can do over in District 7 as well.

40:15

Um, I just have a few questions.

40:17

Um maybe around for you and also the the manufacturing company.

40:23

Do you know if I believe it's Ritzcraft?

40:25

Are they using union um workers?

40:30

I'd have to double check, but I do not believe so.

40:34

But I I can confirm and respond.

40:36

And I know you mentioned the outreach that you have with um folks in the community.

40:42

I'm wondering, do you for the folks that you are using to build once it gets there, are they union members as well?

40:49

No, sir.

40:50

Okay.

40:51

What I would say would highly encourage as we I say this at all the buildings that we have come before us.

40:57

Um, you know, there we are looking at pre-apprentips and apprenticeships program.

41:03

Um member Waters chairs the skill trace task force, and I'm a co-chair on it.

41:08

I'm really wanted to make sure that we do as much as we can, especially now that uh a large amount of development is turned into residential, that we get apprenticeships uh programs and union workers.

41:19

So we'll love to have further conversation with you around that.

41:23

Yes, please.

41:24

That would be great.

41:25

Um and then I have a question.

41:27

I know um this listed here of a uh estimated um cost around 399.

41:34

I I saw that there's a listing for 439 for this address.

41:38

So just wanted to see what's the what's the um accurate selling price.

41:44

Yeah, so just to clarify that we've got as we got into finishing the house, the goal was to leave the basement completely unfinished.

41:53

And as we started working through some of the final um of the final work and the finishes, we actually had to move forward with getting the basement finish as well.

42:03

And so with sometimes doing a pilot, you do find that there's additional costs that you didn't expect, and you also do not get efficiencies when you build a single house.

42:13

And so our costs have definitely exceeded our target numbers.

42:16

Um I will also say that uh one thing that we wanted to do with this pilot is make it very um considering the options that you would have, let's say, as a retail customer coming in and saying, Hey, I would like you to build me a house.

42:31

I have this lot over here on Sheridan or whatever.

42:34

Um we want them to see the the finishes and want them to see kind of what all they could get, maybe at the highest level.

42:41

So there were some considerations that took us uh beyond our target price.

42:46

But right now I can tell you where we have um identified our our all-in costs are gonna be around 350 to 375 for a three-bedroom and around 300 to 310 for um a two-bedroom.

43:00

This is on a crawl space.

43:01

So while I don't think the pilot was representative of what our future target prices are gonna be or what we can achieve due to some of those inefficiencies and learning curves and um higher finish level, I can tell you that we we certainly have it dialed down to where we will sit we will be able to finish these um at those price points that I mentioned.

43:25

All right, thank you.

43:26

And the last thing I would bring up, um, as mentioned, I know you there's not a lot of accessibility uh or accommodations built into the home.

43:36

And I know this is the first pilot, but would just um highly urge as you are building more and looking into the further the program further, if there are ways that we could implement um accessible uh structures there, that would be great.

43:51

As I mentioned to other folks that um when folks are in the housing market, especially with disabilities, folks with disabilities, they may not be requesting or may look over because is uh the house is not accessible.

44:04

So I want to make sure that we have as much housing, especially in new builds that is accessible for folk as many folks as possible.

44:11

Absolutely.

44:12

Thank you.

44:13

Yes, and just to quickly comment on that is one of the um one of the ways that we're we're looking to approach that is by lowering physically the house.

44:23

Um right now we are at the same grade level as the front porches of all the rest of these houses here.

44:30

Everybody's about three feet off of the off the ground.

44:33

So it's it's pretty high.

44:34

Porches are pretty high, and that makes it more difficult uh for ADA accessibility.

44:39

So our next efforts are going to be lowering the home while we want to maintain the right look and feel.

44:46

Um we also want to make sure for future considerations that the house is easier to adapt for ADA accessibility.

44:54

We also already, although it is a narrower house, I'll just admit, um, we have already made considerations for all of the clearances and same with the stairwell, right?

45:01

And same with the stairwell, right?

45:03

These aren't just the 36 inches, which is the minimum code.

45:07

We bumped these out to 40, 42, and our um walkways are also in all the main areas are also um wider than code requires.

45:16

So we certainly have work to do, but I think we've already gained some ground at least in this initial phase.

45:22

Well, thank you.

45:23

Appreciate that.

45:24

All right, that's the end of my questions.

45:26

Is there a motion on line item 6.2?

45:29

Motion to approve.

45:30

There's been a motion to approve line on 6.2 and send to formal session.

45:35

Any objections?

45:37

Seeing none, that action shall be taken.

45:39

Thank you both so much.

45:41

Thank you.

45:42

Thank you very much.

45:44

That will bring us to under miscellaneous 6.3 from uh vice chair Johnson submitted a memorandum relative to resolution requests urging the state to reduce interest and fees on deliquate property taxes.

45:58

Is there a motion to discuss?

46:00

Motion.

46:02

Vice Chair Johnson.

46:03

Thank you, Mr.

46:04

Chair.

46:05

Um, I have to refer to Mr.

46:07

Corley.

46:08

Mr.

46:08

Corley.

46:09

Thanks the chair.

46:10

Um, please give us a week.

46:12

We pretty much got the report or resolution done.

46:14

Um, and so please give us a week.

46:19

Motion to bring back in one week.

46:21

There's been a motion to bring line item 6.3 back in one week.

46:24

Any objections?

46:26

Seeing none, that action shall be taken.

46:28

Thank you.

46:29

Uh that move us on to 6.4 also from Vice Chair Johnson.

46:33

Um, submitting a memorandum related to the request to draft resolution urging the Wayne County Treasurer to issue a moratorium on property tax foreclosures for owner-occupied homes.

46:45

Is there a motion to discuss?

46:47

Uh Vice Chair Johnson.

46:48

Motion to discuss, sorry.

46:50

Yep.

46:51

Thank you.

46:52

Um to Mr.

46:53

Corley.

46:55

How much time before we bring this back?

46:58

I have not seen a response yet.

47:02

Um Mr.

47:03

Chair, uh, please bring this back in a week as we are.

47:05

We are working on it.

47:07

Um it's a little bit more difficult for us to kind of put this together, but give us another weekend.

47:13

We appreciate it.

47:16

Before we all right, if I could before we go to that motion, if I could join you on this, Vice Chair Johnson.

47:23

Yes, um, Mr.

47:24

Chair and Mr.

47:25

Corley.

47:26

So I know this is something that we've done on an annual basis.

47:31

Um, I believe for the last I think the last four years that I've been here.

47:36

Uh last year, I believe at the time council president Sheffield, now Mayor Sheffield, um, sponsored the resolution requesting the moratorium to uh for the uh Wayne County Treasurer's office.

47:49

So if um if that helps to expedite it, knowing that it's time sensitive, I just wanted to share that information.

47:57

Uh and Mr.

47:58

Corley, if um I'm not sure what the process is.

48:02

Um I'd like to um support or uh Mr.

48:11

Chair indicated that he wants to join the resolution.

48:15

So if you can have it in both of our names, um it may end up being in the name of the council when we get to formal.

48:22

Uh but if this committee's name, you put it in the the name of the budget finance and audit committee.

48:31

All right.

48:32

All right.

48:32

Uh Mr.

48:33

Chair, I move to bring line item 6.4 back in one week.

48:40

All right, there's been a motion to bring back 6.4 in one week.

48:44

Any objections?

48:45

Seeing none, the action shall be taken.

48:48

Thank you, Vice Chair Johnson.

48:49

Thank you, Mr.

48:50

Corley.

48:51

All right, there that moves us on to line item 6.5 from member miller, a memorandum relative to the 2026-2027 media service budget questions.

49:04

We've been asked to bring this back in two weeks.

49:08

There's been a motion to bring this back in two weeks.

49:10

Any objections?

49:12

Seeing none, the action shall be taken.

49:14

Um, this moves us on to 6.6 um from myself.

49:18

Uh memorandum relative to fiscal year 27 budget here and follow up for municipal parking.

49:26

Um, I've been asked to bring this back in two weeks.

49:29

Is there a motion?

49:30

Motion um there's been a motion to bring back 6.6 in two weeks.

49:35

Seeing no objections, that action shall be taken.

49:39

Um that moves us on to member reports.

49:42

Is there do we have any burning member reports or is there a motion to suspend motion?

49:47

It's been a motion to suspend member reports.

49:50

Seeing no objections, that action shall be taken.

49:53

And that moves us on to the end of the agenda.

49:56

Seeing no further items before this committee, is there a motion to adjourn?

50:01

Motion.

50:02

There's been a motion to adjourn.

50:03

See no objections.

50:04

This committee says still adjourned.

50:06

Thank you.

Discussion Breakdown — Share of Meeting
Zoning and Land Use█████████████████████21%
Budget███████████████████19%
Procedural█████████████████17%
Affordable Housing███████████████15%
Community Engagement██████████████14%
Public Comment██████████10%
Public Health████4%
Summary of Proceedings

Budget, Finance and Audit Standing Committee Meeting – March 18, 2026

The Budget, Finance and Audit Standing Committee met on Wednesday, March 18, 2026, at approximately 1:10 p.m. (public comment closed at 1:10 p.m.) during the budget season, which limited the committee to one hour. The committee approved the previous meeting’s minutes, heard public comment from four speakers, and considered unfinished business on state revenue sharing resolutions and an ARPA audit. New business included the mayor’s proposed FY 2026‑2027 budget, a neighborhood enterprise zone (NEZ) certificate application for a modular home in West Village, and several memoranda related to property tax relief and budget follow‑ups. All agenda items were disposed of by motions, with most brought back for future discussion or approval.

Consent Calendar

  • Approval of Minutes: The minutes from the previous meeting were approved by voice vote with no objections.

Public Comments & Testimony

  • Owner Papa (Resident): Asserted that Detroit’s $3 billion budget cheats legacy citizens; that federal dollars do not return to residents; that surplus tax dollars are given to corporate America instead of funding a rec center; and that ARPA money should be available for block clubs like Miss Varner’s. Suggested the sixth division might need its own trash hauling. (Chair responded that trash issues should be reported; the BZA court reporter topic was placed in executive session.)
  • William M. Davis (Commissioner, District 7): Called for an additional library and a functioning rec center in District 7; stated the district pays more property tax but receives fewer services; warned that if nothing changes, the city may need to return to citywide council representation. (Chair noted that an April announcement on a rec center at Rouge Park is forthcoming.)
  • Detroit Resident: Urged the committee to examine the VZA budget regarding court transcriber contracts, criticizing charges of over $7 per page for transcripts; observed that litter is widespread outside downtown/DIA areas. (Chair stated that the court reporter conversation was moved to executive session.)
  • Phone number ending 039: Referenced one‑minute limit, named individuals (Scott Vincent, Dennis Murphy), and claimed “the truth is the truth” regarding Kinesha not shooting herself and the 1st division of the Detroit Police Department.

Discussion Items

  • 5.1 – Memorandum on State Revenue Sharing Trust Fund Resolutions (SB 559‑561, HB 311, 4312): Chair McCampbell explained that the city depends on state revenue sharing and that Detroit has not received its fair share; the resolutions seek to establish a trust fund to protect those funds from political interference. A motion to bring the item back in one month was approved without objection.
  • 5.2 – Audit of ARPA Neighborhood Beautification Initiative Program Operations: Administration representatives Regina Greer (Chief Deputy CFO), Terry Daniels (Deputy CFO, Development & Grants), and Martha Potier (Neighborhood Economic Development) updated the committee. Corrective action responses had been drafted and were to be submitted by the end of the day. The project audited was fully expended; the SEED program had also been fully spent down, albeit with delays due to development financing. All five SEED recipient entities were to be provided. A question about Oracle contract amounts was clarified (expired contracts cannot incur overpayments). The item was received and filed on motion.
  • 6.1 – Report on FY 2026‑2027 Mayor’s Proposed Budget and Four‑Year Financial Plan: Received and filed on motion (no further discussion).
  • 6.2 – NEZ Certificate Application for 2505 Townsend Street (West Village): Presented by CPC staff Chris Gulak and developer John Boros (Kaylate Holdings). The project is a modularly constructed, three‑bedroom, three‑bath home on a 30 ft × 100 ft lot purchased from the Land Bank for $7,400 in November 2025. Build cost is $345,500; initial estimated sale price was $399,000, later revised to $439,000 due to finishing the basement. The house is already under construction (building permit issued October 2, 2025; NEZ application within the six‑month window). Developer aims for attainable homeownership ($300‑310 K for two‑bedroom, $350‑375 K for three‑bedroom on crawl space). Discussion covered community engagement, aesthetics (seamless fit), utility tap‑ins (lead line removal, DTE underground trenching), costs (modular not cheaper at single‑unit scale but speed reduces carrying costs), union labor (developer does not currently use union workers but was open to apprenticeship programs), and accessibility (future designs to be lowered; current house has wider clearances). The committee approved the application and sent it to formal session.
  • 6.3 – Memorandum on Reducing Interest/Fees on Delinquent Property Taxes (Vice Chair Johnson): Brought back in one week to allow LPD to finalize the resolution.
  • 6.4 – Memorandum on Moratorium on Property Tax Foreclosures for Owner‑Occupied Homes (Vice Chair Johnson): Chair McCampbell joined the resolution. LPD requested an additional week; the item was brought back in one week. (Note: Council President Sheffield had sponsored a similar resolution in the prior year.)
  • 6.5 – Memorandum on FY 2026‑2027 Media Service Budget Questions (Member Miller): Brought back in two weeks.
  • 6.6 – Memorandum on FY 2027 Budget & Municipal Parking Follow‑up (Chair McCampbell): Brought back in two weeks.

Key Outcomes

  • Minutes approved.
  • 5.1: Brought back in one month.
  • 5.2: Received and filed.
  • 6.1: Received and filed.
  • 6.2: NEZ certificate application approved and forwarded to formal session.
  • 6.3: Brought back in one week.
  • 6.4: Brought back in one week (Chair McCampbell joined as co‑sponsor).
  • 6.5: Brought back in two weeks.
  • 6.6: Brought back in two weeks.
  • Meeting adjourned; member reports were suspended by motion.

Meeting Transcript

Good afternoon. I'd like to call the budget finance and audit standard committee meeting of Wednesday, March 18th, 2026 to order. Will the clerk please call the roll? Good afternoon. Councilmember Daniel McCampbell. Present. Councilmember Letitia Johnson. Present. Councilmember Mary Waters. Present. Mr. Chair, there's a quorum. Thank you so much. I'm going to move us on to approval of the minutes. I believe let me just make sure. Yep. Um, folks should have received the minutes from our last meeting. Is there a motion to approve? Motion to approve. All right. There's been a motion still no objections. The minutes shall stand approved. That'll move us on to chair remarks. Um, just will say please do continue to engage around the various budget hearings that we will continue throughout the month of March and attend the public hearing as well at the end of the month. That's it for my uh chair remarks. We'll now move on to public comment. We'll open public comment recurs for public comment. We'll excuse me. We'll close at one ten p.m. Please limit your remarks to one minute. We'll start with those in the room, and for those who are participating remotely, please use the raise hand feature and you'll be called in order. Do we have any requests for public comment in the room? Seeing none, that'll move us on to Zoom. Good afternoon, Mr. Chair. We have six hands raised for public comment. Uh as of right now, our first speaker is Owner Papa. Good afternoon. Um, you have one minute for public comment. Ms. Hughes, if you can hear us, you have one minute. Good afternoon. Good afternoon. I'm sorry you dropped us down to uh one minute. Good uh good afternoon. Um Detroit has a three billion dollar budget. And I I really believe that the that the citizens, the legacy citizens, are being cheated out of most of their federal dollars that come back to the city. Uh I can't see a dime of my federal dollars coming back to me. Uh my surplus tax dollars that which could build a rec center are being given to uh corporate America to fill their uh income shortfall for all of the uh legislation that you all have implemented and ordinances to um embellish these people. Uh Miss Varner ought to get her sixteen hundred dollars for her um whatever she has to pay to beautify her neighborhood when we have five dot two, which is on the agenda, which is you know it's really strange how that money got spent, but I'm pretty sure there should be ARPA money for her to have for and in any other block club.

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