Detroit City Council Budget Hearing for DEGC and Related Agencies – March 19, 2026

The Detroit City Council's Expanded Budget, Finance and Audit Standing Committee held a budget hearing on March 19, 2026, for the Detroit Economic Growth Corporation (DEGC), Detroit Downtown Development Authority (DDDA), Economic Development Corporation (EDC), and Land Development Finance Authority (LDFA). The hearing opened with a quorum present, and presentations covered economic development activities, small business programs, and future strategies.

Presentation Highlights

• DEGC Overview (Kevin Johnson): The DEGC is a private nonprofit established in 1978, implementing the city's economic development policies. The city provides $2.091 million for DEGC operations (70 employees) and $2.8 million to the EDC for programs like DLBP, startup retail traction, and small business emergency funding. $2.5 million supports the Motor City Match program, which recently opened its 22nd business on the six-mile corridor.
• Operations & Strategy (Derek Head): The operations section coordinates strategy, planning, policy, and manages grants. Examples include the Greater Eastern Market Streetscape Project ($6.2 million in grant funding) and the Jefferson Park Feasibility and Sign Design Project.
• Real Estate & Development (David Howell): DEGC underwrites major projects and tax abatements. In 2025, 17 abatement certificates were approved, with 70% outside the CBD/midtown/New Center areas. These represent $533 million in investment, 639 apartment units (142 affordable). Recent projects: DCFC Soccer Stadium ($175M, 15,000 seats), WNBA facility at the Uniroyal site (42 acres), and neighborhood housing projects.
• Business Development & Attraction (David White): In 2025, the team announced 1,095 new jobs, $253 million in capital investment, and generated 72 new projects/leads. Focus sectors: automobility, clean energy, research/engineering/design. Opportunity sectors: aerial mobility, defense, life sciences. Two projects lost federal funding due to policy shifts. Business retention: 48 retention visits (80% outside Greater Downtown), six expansion projects, 413 referrals to partners.
• Small Business Services (Sean Gray): Programs include Motor City Match (20.5 million in grants over 30 rounds, leveraged $110M in private investment), Detroit Legacy Business Project ($930,000 awarded to 76 grant recipients over three rounds), Next Up 313 (supported 406 young entrepreneurs), Green Grocer Program (15 small-format grocery stores awarded $350,000, first ribbon cutting held), and the Detroit Startup Fund. The district business liaison team served over 1,500 businesses last year. A new Motor City Match alumni training cohort launched this week to provide technical assistance.

Discussion Items

• Councilmember Callaway inquired about the Livernoy project (former Fred's Furniture store converted to 53 housing units) and received an update that the project is back on track with closing expected in early third quarter 2026. She expressed concern about small business closures and asked for long-term support beyond ribbon cuttings.
• Councilmember Young requested improved data on economic development impacts, including income inequality (Genie Index), GDP vs. debt, poverty reduction, and health outcomes. He proposed using AI tools to track metrics and made a motion to place the Green Grocer program in executive session (approved).
• Councilmember McCampbell emphasized aligning economic development with community needs, especially in District 7 (Joy Road, Plymouth, Warren corridors). He questioned the reliance on abatements and asked about reducing barriers to development so incentives become less necessary.
• Councilmember Benson thanked DEGC for supporting cultural events and the Dining with Confidence training. He made a motion to add $50,000 to executive session for cultural event support and a motion urging DEGC to coordinate with Detroit at Work on restaurant support (both approved).
• Councilmember Miller asked about metrics for business survival after Motor City Match funding and the criteria for funding levels. She also requested recommendations for technical assistance providers.
• Councilmember Waters moved to add business support (coaching, technical assistance, leadership development) to executive session (approved). She asked for a list of existing business support providers.
• Councilmember Johnson highlighted the developer summit and the role of district business liaisons. She asked about connectivity between Motor City Match applications and city codes/zoning, and whether community planning studies are used to match businesses to neighborhood needs.
• Councilmember Santiago Romero discussed green energy development and data centers. She expressed concern about DTE rate increases and called for a responsible data center policy. DEGC indicated they are developing a uniform policy for data center attraction, focusing on smaller edge AI data centers.
• Council President Tate expressed frustration about the lack of progress on the Grand River corridor, particularly legacy businesses and vacant structures. He requested a data analysis of commercial corridors, a construction mitigation fund for businesses disrupted by city infrastructure projects, and a legacy business registry. Motions to add these to executive session were approved.

Key Outcomes

• Approved Motions (added to executive session/closing resolution without objection):
  • $50,000 to support cultural events throughout Detroit (Benson).
  • Urge DEGC to coordinate with Detroit at Work and the Dining with Confidence training series (Benson).
  • Database/analysis of structures along commercial corridors, starting with District One (Tate).
  • Discussion of a construction mitigation fund for businesses disrupted by city infrastructure projects (Tate, joined by Benson, Callaway, Miller, Waters).
  • Business support including coaching, technical assistance, and leadership development (Waters).
  • Protection policy for small business owners from corrupt BSEED inspectors and recommended contractors, and partnering small businesses with unions for labor (Miller).
  • Place the entire Motor City Match program into executive session to discuss long-term support (Callaway).
  • Insurance for small businesses across the city (Callaway).
  • Urge DEGC to support zoning text amendments to provide rules for data centers in Detroit (Benson).
• No formal votes on the budget itself; the hearing focused on questions and motions for further discussion.

Next Steps

• DEGC committed to providing data on commercial corridor vacancies, a legacy business registry, and engagement on data center policy.
• The Green Grocer program, construction mitigation fund, insurance support, and Motor City Match program will be discussed in executive session before final budget decisions.