26 to order where the clerk please call the role.

Councilmember the Anton McCampbell.

Present.

Councilmember Letitia Johnson.

Present.

Councilmember Mary Waters.

Mr.

Chair, you have a quorum present.

Thank you so much, ma'am.

Clerk.

That'll move us on to the approval of the minutes.

Uh members of the committee should have received received the minutes.

And with that, is there approval of the May 20th, 2026?

Motion to approve.

Thank you so much, Vice Chair Johnson.

With that, see no objections, the minutes should stand approved.

For chair remarks, I would just say I thank everyone for bearing with us on the uh tech side of issues that we're having.

Just for folks to know if you are watching virtually through channel 10 of streaming.

Um, we actually do have capabilities now for you to join via Zoom and different public comment if you would like.

Um so with that, so with that, if folks are joining us virtually and watching streaming, uh, give you a moment to join via public comment.

So I will close uh public comment.

Well, we'll move on to that, but we will leave it open for a little bit um so you can join right now.

Right now.

So if you would like to give virtual public comment, please join via the Zoom link.

But with that, that'll move us on to public comment.

We'll open up public comment.

Request for public comment will close at 119.

Please limit your remarks to two minutes.

We'll start with those in the room.

And for those participating remotely, as you get over to Zoom, please do use the raise hand feature and you will be called in order.

I believe we have um one person here in person for public comment.

If you want to come forward, Miss Ward.

Oh testing one, two, three.

It'd be nice if you could make sure the sound works well throughout this here.

Hold on one second.

I'm actually need to move to this first one.

Okay.

That that mic works pretty well.

All right, all right.

That didn't work as well.

Hello?

This one?

No.

No.

This one.

Which one?

Hello?

That doesn't hear?

It's doesn't look like that.

Is there some reason I can't use that mic?

It's because of this because the setup that was out of here.

That's for Zoom.

Got it.

All right.

You're all set.

What you're ready?

We'll start the clock.

Okay, good afternoon, everyone.

Um, I'd like to know on today's agenda what are 6.16.4 about this uh uh provide to provide an extension of time for residential multiple regression valuation analysis, including regression statistics and option the interpretation.

I mean, what is that all about?

Also, I see you got a lot of memos about media services.

Can you hear me?

Yep.

Okay, so I did a FOIA to get uh some of the past uh the mayor's uh charter mandated meetings, and I'm told a bunch of them they don't have so what's going on with our you know document retention policy.

Yet there are some of there are older mayors' meetings up on YouTube older than what I asked for.

So you might want to ask media services why they don't have them or why the law department is telling me they allegedly don't have them.

So for everyone who doesn't know, the city of Detroit and the Detroit Land Bank Authority are being sued in a class action lawsuit in the Eastern District of Federal Court right now because the land bank has been illegally taking people's property and not paying them just compensation, but they're claiming they're not.

We're also paying a lot of money for David Fink, a fancy expensive lawyer out in uh Bloomfield Hills.

I'm sure is getting way more than the right to counsel attorneys here to defend against that lawsuit.

Even though member waters has been telling people that not minus the two new members that that it's not legal.

I was telling it's not legal, and now we could be on the hook for millions of dollars of damages.

And so they're claiming they're not doing the eminent domain, but they're just putting a different color lipstick on the pig and calling it a chicken.

The Michigan State Land Bank Authority Act specifically prohibits the use of land banks cannot use eminent domain or condemnation, and that's exactly what they're doing.

They're just calling it something else.

You need to stop it.

How can you be for reparations and let people's property be taken left and right all over the time throughout the city of Detroit?

Thank you.

And the solar farm switcheroo is a problem.

Appreciate you.

All right.

Um other folks join us for public comment in person.

With that, we will go over to Zoom.

Any folks for public comment on the zone?

Good afternoon, Mr.

Chair.

As of right now, we have eight hands raised, and our first caller is Samsung SMG991U.

Good morning.

Um speaker, you have two minutes.

Good afternoon, may I be heard?

Yes, you may.

Yes, you may.

I wanted to say the first meeting that was in there today.

I kind of like what they were saying about the land banks.

Like they say, people have been taking care of property, using that gas, cutting the bees, the trees, and the whole 20 yards, not nine yards, 20 yards.

So I'm hoping that I don't know.

I heard one person speak.

Uh I think that's Miss Heel.

Uh I didn't get a chance to hear the rest of it.

But I hope you are uh do you read the land bank and like they say in the houses to the people that's been taken care of for years?

I'm gonna say eye, that's an old word.

I don't know anything about that.

Eye means many years.

And I got like they say we use our gas to buy to buy the gas to cut the grass and do everything.

So the one the people that have been taken care of it, and like I said, I've been going through for a while.

But I know I went to uh Ted Phillips, Ted Phillips, and he's going to be getting back with me.

But I they need to change it over to what they said this morning as to the residents and the residents that's been taking care of the houses.

And that's my comment.

And then yesterday I was on uh Zoom, and the young lady that I didn't get a chance to see uh pro tems uh face because for some reason y'all don't not let me get see the paper the people when they're there talking.

Uh like now, I don't see it.

But anyway, when she said call him Jewel Loving, his name is Coma Young the second, coming Alexander Young the second by his dad.

So people, and I know she wasn't the only one saying it, another person said it.

I didn't get a chance to see his expression, but my to my for my for what I heard, that should that was out of the normal out of the character to talk about his name.

If your parents give you that name, that's your name, regardless to what she's born with.

Because with my grandson, he was born with not well, my last name, but he ended up getting his daddy's last name.

Thank thank thank you so much.

Thank you so much.

Um next speaker, next speaker.

My next speaker.

Our next speaker is owner Papa.

Ms.

Hughes, afternoon, you have two minutes.

Good afternoon, uh Councilman.

Um let me apologize for yesterday.

I should not call him names.

You're absolutely right.

But when you get so frustrated with what is going on in this city, no one seems to feel like it's a urgency to get this dirty dirt out of here and fill these holes.

If you go by these holes and look at the houses around them, do you think anybody's going to buy that house with that hole like that?

So you are hurting people in so many ways.

So many ways with these holes in our in our community with filled with uh toxins.

Uh I I think you all should should should let everything go until you can fix that problem because leaving uh like Miss Warwick says, the solar thing is it's up in the air, and you're you're just shuffling people around from this place to that place.

I'm specifically calling about 511.

I would like HRD to show me how they come to the conclusion that this is an approved um pilot pilot programs reduce the general fund of which you all get paid out of.

I want to remind you.

Um, and I would like uh uh you to have a comprehensive conversation around the effectiveness of these pilots, how how they helped us, and how is HRD coming to the decision?

Have they done their due diligence?

How will this hurt the general fund or reduce the general fund?

And what do they plan on uh creating to um supplement these general funds?

If you give everybody who comes in the city from this point tax reductions while the people in the city of Detroit are paying full taxes, that is an inequity.

So I would like to ask this committee to do a deep dive into pilots and how how much low-income housing have they provided.

What are they providing?

Thank you.

Thank you, Ms.

Hughes.

Um appreciate your words and apologies.

I think uh I I hear you on the frustration as well.

I appreciate you.

Thank you.

Next speaker.

Next speaker.

Our next speaker is William M.

Davis.

Before we go to the Davis, Mr.

Davis.

Let's note that we've been told to be member.

So note it makes sense.

Thank you.

Thank you.

Mr.

David's Commissioner Davis, good afternoon.

You have two minutes.

Good afternoon.

Can I be heard?

Yes, you may.

Yes, you may.

And I think perhaps this committee and others, which city council should be exploring some of the lease agreements with, like say take with the health department on Mac.

You know, they pay for a floor or two in that building.

They have to pay for parking.

Uh, you know, separate the contract, I guess.

And they have to pay for even having storage in the basement.

You know, you know, some of these contracts look like they can set up to benefit the other people.

And there are a number of structures and places, perhaps could be leased or bought by the city, but basically brought by the city where people we go to, and the parking is free.

I know I'm older than most of y'all, and I remember going to the health department and not not having to pay for parking.

Right now, we shouldn't have to pay the parking if you need to go to the health department.

So I think that should be looked into.

I think it should be uh overall general audit done of all the opera funds and how they were spent and what happened with the potential interest generated from that vast amount of money.

I I think we should be doing more to help seniors in the city of Detroit, uh, especially uh with property and property taxes.

I I think that uh we need to be doing more with young people, you know, and have things for them to do.

I know when I was a young person, I could have easily gotten in trouble like some people do.

But you know, I used to go to the rec centers.

I used to swim.

I used to play basketball.

I used to box, I used to wrestle, I used to do a number of things.

You know, so we need activities.

You know, I remember we used to have the swimming bill, the bookmobile, a whole lot of stuff that we don't have.

Also, I'd like to encourage any city of Detroit retirement that's uh available.

We're having a meeting tonight at St.

Matthew St.

Joseph at 5 30.

That's at Woodward and King.

So I gotta have a good day, and hopefully I'll be able to start doing more to help City Detroit retires in seniors.

Thank you.

Thank you, Commissioner.

Commissioner request for public comment has now closed.

Who do we have as next speaker?

Next speaker is Black Bag.

Mr.

Crawley, afternoon.

You have two minutes.

Speaker, are you there?

Very clearly.

Yeah, we can hear you.

We can hear you.

No echo.

We'll hear you loud and clear, sir.

You're two minutes that started.

Okay, listen, man, you cheated in.

I got the information with Donald Trump, they were cheating on the Detroit elections in 2020.

They did it in 2021, 2022, 2024, and T Valley fraud is real than an MFR in Detroit.

International absentee valid fraud.

First ever case I ever heard of international ash T ballot fraud.

Mary Elaine Beckman did not get a ballot to vote in that election, but she's showing up on the voting roads.

You need to call because they're using money and you the budget or finance, you need to call Tina A.B.

Walker into that committee next week and have her explain how Mary Elaine Beckman's value was counted in our election.

2024.

United States presidential primary election.

Did you hear that, McCampbell?

You need to call the director at the Detroit Department of Elections, because I'm putting it on the float.

I'm telling you, Janet Winfrey is on Zoom line.

She did not send you no Burnies on the allegations of voter fraud by anonymous citizen report.

Oh, you weren't in office yet, wasn't it?

Well, she didn't send the report out.

My word.

And I'll stand up 100.

Black bag for real.

Real.

We're in the back seat of that black membersine.

I'm telling you the truth.

And do what you do.

But do what's best for Detroit.

Thank you.

Thank you.

Next speaker.

Next speaker.

The previous speaker has raised her hand as legendary Detroiter.

That's the next one.

So we will move on to Betty A.

Varner.

Miss Varner, good afternoon.

I have two minutes.

Two minutes.

Good afternoon.

This is Betty A.

Varner, president of the Soda Elsewhere Black Association.

Can I be heard?

Yes, you may.

Okay, thank you, because it's real low on my end.

Yes, I'm here.

I'm going to share some information.

Free haircuts for some people.

It's called the Gifted Hands Community Haircut Program.

And it's got free Sundays for you from age two to 13.

From 12 to 4.

It's the free Tuesdays from 10 a.m.

to 2 p.m.

And you must be at least 62 years old or older.

They have 50% off for veterans.

And that's all day on Wednesdays.

And you must have a ballot ID.

My opinion it should be free for our veterans, but I'm just giving the information.

And it's D's corner unisex aligned at 183-00 Plymouth Road.

That's in Detroit 4828.

Again, that's 183-00 Plymouth Road in Detroit.

Telephone number is one 313-228-6320.

Again, one three one three two two eight six three two zero.

It says the call for appointments and questions.

And so it's free haircuts for the youth and for the seniors, and 50% off for the veterans.

And we're still in need in my community for our thinker quarter.

We need help and monies for our quarter.

Thank you for this time.

God bless you all.

Thank you, Miss Varner.

And thank you all for all bringing information forward to the community.

Um next speaker.

Next speaker.

Um our second to last speaker is Cunningham.

Brother Cunningham, good afternoon.

You have two minutes.

Are you there?

Are you there?

Are you there, Brother Cunningham?

Yeah, we can hear you.

Can you hear me?

Yes, we can.

You have two minutes.

Thank you, sir.

Uh, thank you, all the council members there.

Keep me listening in prayer.

Have been getting confrontation.

You know, because they expect me to give out today.

Well, it doesn't the finances don't work like that.

Um, I put in 400 some dollars on a donated fund for blood tickets.

And so I'd like to put my hand, which I don't see a lot of people.

My motor is as a tick.

I don't know how long it's gonna hold.

Um, but that's like four grand for uh so far.

You want to leave the vehicle, a band, um, you know, that they can sell at more price or assist with repairs, can't be out here in the community giving our water, plus to get information, um free rides if necessary.

Um pray with you, wait for me.

I don't think you're busy, counsel, but you are looking into uh an organization, it may be a simple vehicle because of the owner that's an office right now, um funds, generally uh lesson, but I will put our cell phone conversation, hoping that you might have been able to reach out again and see if they can come to a resolution.

Um thank you for your help.

Every last one three one three four four four nine one one four.

I never was made you can remember.

Thank you, Brother Cunningham.

And I know it was mentioned for our friends or media services.

If we can just make sure that the volume on Zoom is high for folks to or loud enough for folks to hear their space.

Thank you.

Our last speaker is Cindy Dara.

Miss Cindy Dar, good afternoon.

You have two minutes, two minutes.

So we can tell you what we want.

And then we can tell you how we don't agree with some of the stuff.

Or we've got different ideas.

So I I wanted you to put that uh your transcript up on a uh web page so people can read it at night and citizens who work during the day probably aren't gonna be involved in our government if we don't do that.

And they could put their public comments up.

Uh to that would be done.

And you guys have when you make these announcements being posted, and we should open the chat, but people don't always have a pen to write everything down.

You ought to have your announcements up on uh the the Detroit MI.gov under city council where people can read your announcements and they can read burner's announcements read our transcript.

And I think it's uh the people that idea about having a lottery for uh people that got ripped off on their taxes.

Everybody in the city, if they had and basically it looks like it's a racist thing, because even in the nice neighborhood, uh they had their taxes over tax too, but the study just concentrated on that lower uh level uh uh the the cheaper houses.

So by the way, when people move across eight mile with their section eight, they they shouldn't be in the lottery because section eight is a rental program, and the people that moved are maybe uh the people who own those houses had section eight on those houses.

So I don't think they should be in a lottery.

Section eight is a a permanent thing, usually where the landlord gets an oil well that never depletes all they gotta do is thank you so much.

That'll bring us to the to the end uh public comment.

Um what I would just I know there's a few items brought up um or questions brought up on those agenda items.

We will get to those.

Um as I know also the contaminated dirt was mentioned just to let folks know that um the next steps than that is that we will be uh scheduling uh a closed session with city council to uh dive deep into that and figure out where we need to go from here as a whole as a city government.

So um wanted to address that.

Any other things from our members on the committee?

All right, okay, Mr.

Chairman Vice Chair Johnson.

Thank you.

Just very briefly to Mr.

Cunningham.

Um, although you were your volume or your sound was breaking up a bit, I did understand um the comment or the question to me in regards to your situation.

I am following up with that, so I will be in touch with you directly within the next few days by the end of the week.

Thank you.

Thank you, Mr.

Chair.

Thank you, Russia Johnson.

All right.

That will move us on to the agenda for unfinished business.

Um 5.1 uh is a these are uh budget memos.

This is a budget memo for my office.

Um there's been a request to bring this back in two weeks.

Is there a motion?

Motion.

There's been a motion to bring back 5.1 and two weeks.

Um see no objections that action shall be taken.

Uh for 5.2.

Um, this is from my office with TIA.

Um is there a motion to bring this back in two weeks as well.

Motion.

It's been a motion to bring back 5.2 in two weeks.

See no objections to action shall be taken.

5.3 is for my office as well.

Budget for city council and divisions.

Um, is there a motion to discuss motion?

Motion to discuss 5.3.

I'll defer to LPD on 5.3 on if there's additional time needed.

Council.

Uh um about two or three weeks ago, we suggested that the uh Office of Budget respond to this memo because you know is I think it was questions regarding salaries and benefits, and that's more in their purview.

budget for city council and divisions um is there a motion to discuss motion to discuss five point three i'll defer to l pd on five point three uh if there's additional time needed council uh um about two or three weeks ago we suggested that the um office of budget respond to this memo because you know it's i think it was questions regarding salaries and benefits and that's more in their purview and so um if you can please uh refer this to the office of budget and o cf o's office that'd be great okay thank you and uh for just uh inquiry for madam parliamentarian um do i need to make a motion to refer that to office of budget or do i should we just reach out to them just reach out to them uh this is the right committee i think it's just uh an additional office to send these to the questions the questions okay okay okay okay is there a motion to refer uh five point five point three to the office to the president's office to refer to the office of budget motion there's been a motion made seeing no objections that action shall be taken on five point three thank you so much so much all right um and then five point four four is a um another budget member there's been a request to bring this back in two weeks is there a motion motion motion bring back five point four in two weeks has been made seeing no objections that action shall be taken okay let's move through these on five point five is also from my office on um a budget related to closing the gap of uh building a detroit where residents earn what Detroit pays uh we've been asked to bring this back in two weeks is there a motion motion motion to bring back five point five and two weeks has been made seeing no objections that actually shall be taken five point point for five point uh doing that let me see for five point six six is there a motion to bring back five point six in one week one week motion bring back five point six in one week see no objections that action shall be taken and for five point seven eight nine and ten there's been a motion to bring these back in one week one week is there I mean there's a request there's a motion now to bring back in one week in one week oh Mr.

Corley I'm so sorry so with respect to line item five point ten we wanted to uh ask to bring that back in three weeks okay that's okay so if we could make a motion for five point seven through five point nine to bring back in let me just go through this one more time one more time for five point seven is there a motion to bring back five point seven and two weeks motion weeks two weeks yes sorry about that motion bring back five point seven in two weeks see no objections that action shall be taken and then five point eight and five point nine is there a motion to bring no back in one week there's been a motion to bring back five point eight and five point nine in one week and then for five point ten is there a motion to bring back in two weeks three weeks three weeks three weeks three weeks there's been a motion to bring back in three weeks sorry you all we um there's a motion to bring back five point ten in three weeks seeing no objections that action shall be taken taken thank you all that would bring us to five point eleven um front housing revitalization department city club apartments um pilot is there a motion to discuss motion to discuss has been made on 5.11 um I know um we're not here for this discussion last week and also thank you vice chair johnson and thank you member waters for holding it down last week um um I know there was various requests for information on this on item item wanted to see if you all have received that info or if if there's a desire to bring this back in one week in one week to bring um 5.11 for city club mr chair vice uh thank you I believe um so we just made the motion yesterday in regards to LPD responding to the cost benefit analysis I did have some conversations with HRD um and receive some responses just yesterday um I I would love to have both LPD and HRD's cost benefit analysis for review at the same time not sure if Mr Corley can share how long it might take for them to actually do the uh cost been cost benefit analysis member johnson um uh the the growth corporation D D C did perform the cost benefit analysis and uh HRD reviewed it has some comments about it um we are in concurrence with their uh comments however we are gonna embellish it a little bit want to add a little bit more information for council's uh edification and so uh our report should come out by tomorrow morning and so if we

Mr.

Gore, Mr.

Core.

Thank you, Mr.

Chair.

Um Council Member Johnson.

Um the Detroit and I'm a Gorf Corporation D D C did perform the cost benefit analysis and uh HRD reviewed it, had some comments about it.

Um we are in concurrence with their uh comments, however, we are gonna embellish it a little bit, want to add a little bit more information for council's uh edification, and so uh our report should come out by tomorrow morning.

And so if you can bring it back in a week, uh that that'd be fine.

And then also we had additional questions.

I know council members uh yourself and um other council members had questions about the project.

We also had questions and they did respond to our questions, so we're gonna attach those to our report on the cost benefit benefit analysis as well.

So one week would be great.

All right, all right.

Member Wards, anything to add.

Is there a motion on 5.11 to bring back in one week?

Motion motion may eight to bring back 5.11 in one week.

See no objections that action shall be taken.

Taken.

Thank you.

Thank you.

And 5.12 from uh legislative policy division um related to Auditor General's awards for claims.

Is there a motion to discuss?

Discussion to discuss and I'll defer to L's attorney.

Through the chair, this has been uh um uh being reviewed by the law department.

We have made our edits and then sent those to council president's office.

They're currently in review of the draft.

I would ask for an additional two weeks uh for additional correspondence.

And thank you for that.

Thank you for that.

Anything else for us?

Okay.

Is there a motion to bring back 5.12 in two weeks?

It's been a motion made on 5.12 to bring back in two weeks.

See no objections that action shall be taken.

Right.

That would bring us on to new business from the Office of Contract and Procurement.

Submit the resolution authorizing.

Um contract and please and please note that this is submitted on May 20th for city council agenda for May 26th.

And it has been amended to read as uh contract number 6005272-A1, 100% city funding.

Amendment one to provide an extension of time for residential multiple regression valuation analysis, including the regression statistics and options, the interpretation of results and the separation of land and building values.

Contractor is keen, mass appear appraisal appraisal consultant LLC located in Philadelphia, Pennsylvania.

Contract period is June 20th, 2023 through June 20th, 2026.

Amended period will run through June 14, 2027.

There is no contract increase amount.

Total contract amount is 540,000.

This is for the OCFO.

Uh is there a motion to discuss?

Motion.

It's been a motion to discuss, and I believe we have um Mr.

Elvin Horn and Ms.

Uh Shakya Swell Sewell with us.

Mr.

Chair, they're being promoted to panelists right now.

Thank you.

Thank you.

Good afternoon, Mr.

Chair Alvin Horn, uh, deputy CFO assessor.

Good afternoon, afternoon.

Do we have anyone else?

Is Ms.

Sewell on?

Good afternoon.

If you can just unmute yourself and set your name for the record.

Good afternoon.

Thank you so much.

Thank you both for joining us.

Uh, if you could just go through the need for um, just go over this contract and the need for the amendment here.

Thank you.

Uh, through the chair.

Three years ago, the office assessed start was called a proof of concept.

It was a an attempt to validate that regression and analysis can be an effective way to value properties in an urban area like the city of Detroit.

So we're in the third year of this process.

We've been successful, but there's been some bumps along the road.

Kevin Keene, who is the vendor behind us, is the former mass appraisal manager for the city of Philadelphia.

We specifically sought him out because Philadelphia has many of the same issues and problems that Detroit has when it comes to valuing old older properties, properties that are in many ways dis disrepair.

We have mirrored that process as closely as we could.

We've trained a core group of people who I believe are ready to take that ball along with it.

But there's as I said, there's been some hiccups along the way.

We've had some problems with staff retention initially, which pushed which pushed us back a little.

It pushed us back about a year and a half.

We finally resolved that issue, but we are requesting an additional year, no additional money.

So I just want to reiterate that.

No additional funding is being asked.

But we're asking for an additional year to validate some of our concepts and to ensure the training of the staff so that at the end of this contract, city staff will be fully engaged and fully able to maintain these uh these models, and they can do it without any type of any type of outside assistance.

Thank you, Mr.

Chair.

Thank you.

Thank you.

Appreciate that breakdown.

Um a couple of questions on my end.

As we're looking at understanding that um King uh mass appraisal has you know they have done this work in Philadelphia with seen similar issues beyond working with you and your office office do they have anyone on staff or on that team that also has that knowledge of the way you know uh the city of Detroit is set up and our various properties.

Understanding that that's valuable information from Philadelphia about if you can go into how to uh that Detroit knowledge and knowledge and beyond your staff and yourself and yourself.

Uh thank you, Mr.

Chair.

Um initially when Mr.

King was brought on board, it was in a training room, uh almost exclusively in the training room.

It was to look at he took a good six months to a year to analyze some of the issues that we were having in Detroit, to talk to the staff here in Detroit, but not just at in at the city, but the county equalization and some members of the state tax commission to get a full understanding of what we were facing in Detroit.

We did the same thing.

We went and spoke to some of his former colleagues in the city of Philadelphia so we could understand that were we going down, were we going in the right direction?

So it's been a two-way street.

He's spent time here in Detroit to understand what our problems are, but we spent time in Philadelphia and Cook County and Maricopa County in Arizona and other jurisdictions that are fairly large and face some of the problems that we're facing.

So it's been a, as I said, two-way street.

It's been an exchange of ideas.

Um the idea primarily was not to recreate the will.

We didn't want to make the same mistakes Philadelphia did.

We don't want to make the same mistakes that Cook County did.

If they've gone down these paths, and many times they have, then that allowed us to bypass a lot of problems that they had to work through.

We had our uh admittedly we had our own problems, so we didn't need to reinvent the will in that case.

So I'm hoping I'm asking the answering the question that you've asked.

It was a two-way street.

We had staff go to Philadelphia, go to Cook County, go to Maricopa County to see what their best practices were while he was here, conferring with some of his staff in Philadelphia to try to create that template.

So that was the first year, year and a half of this contract, and that perhaps more than any reason is why we need we're asking for an additional year extension.

We didn't expect to spend that much time with that type of effort, but we realized very quickly that was necessary.

So thank you, sir.

Thank you.

Thank you.

Any additional questions?

Um thank you, Mr.

Chair.

Um, Mr.

Horne, can you just confirm this is a continuation of the IAAO study that was required by ordinance.

Through the chair, yes, Member Johnson.

This felt into the the property tax reform ordinance, which calls for an outside evaluator, which is the International Association of Assessing Officers, to review the processes here in this in the city of Detroit.

Initially they were brought in to answer one very important question.

Are we following Michigan law when it comes to valuation?

But as you know, Mayor Sheffield issued an executive order at the beginning of the year to take steps to reassure people of the valuation process in Detroit.

Those steps include a mass appraisal report and additional um racial studies that don't conflict with Michigan law.

So that contract with the evaluator has been not changed but extended to some extent to allow them to perform the first two years of those of those racial studies, but the same token, they will be transferring that knowledge to the city of Detroit.

They'll do the first year as they did last year.

They'll do the first year racial study.

City staff will be heavily involved going forward, and by the third year, they will oversee our work, but the bulk of the work will be done by staff here in the city of Detroit.

So it's a continuation of the property tax reform ordinance.

It's a continuation of the mayor's executive order, and it's a continuation of the steps that that the last three CFOs and the last two mayors have directed the office the assessor to go to.

Thank you for the question now.

Thank you.

And so will this um report is the the report required to be completed or the study required to be completed before the mass appraisal report is provided.

Yes, ma'am.

Uh through the chair.

Yes, ma'am.

The the evaluators prior to do a yearly report.

The mass appraisal report report will be done every other year.

And the first year for the mass appraisal report will be in 2027.

The reason why it's every other year is that this is intended to be a substantial report, a nut and bolts reporting how we value property in the city.

It is a heavy lift, uh had an effort to to actually tell people how we do this and assure them that we're doing it the right way.

It's not something we could do on a yearly basis, to be honest with you.

Understood.

All right, thank you.

Thank you, Mr.

Chair.

Thank you, man.

Thank you.

Thank you, Victor Johnson rewarders anything.

No, all right.

Uh thank you so much for the thank you.

Thank you.

Thank you.

Uh Vice Chair Johnson uh just a question on this, and this is for LPD or folks who um I realize that this was a 6.1 is uh correction on the contract, and then we also had this for 6.4.

So just wondering, do we need to move both out to formal or are we removing one?

Or it might be for OCSO.

Mr.

Chair, um I believe the one for 6.4 is the corrected is the corrected um write up for this contract.

And so that's the one that you can move out.

Okay.

Um actually, let me see one second.

One second because I also see on 6.4 says contract period period to June 19, 2027, but on the correct system.

Okay, um, yes, yes, Mr.

Crohn.

Okay, um Ms.

Barclay.

Uh corrected me.

So if we can go back to 6.1, it would be it would be that second one.

It says should we ask that that second one?

And that's the one we should move on.

Okay, okay.

All right, thank you.

Thank you.

Thank you so much for that so much for that.

Uh is there a motion on six point one motion to send line item six point one to formal with a recommendation to approve as amended.

There's been a motion to send six point one to formal or the recommendation to approve as amended.

Any objections?

Seeing none, that action shall be taken.

Thank you.

And is there a motion to remove 6.4?

There's been a motion to remove 6.4 from the agenda.

See no objections, the action shall be taken.

All right.

That'll move us on to 6.62, which we will also take a for 6.3 as well.

I'll read them both.

Um 6.2.2.

Uh resolution authorizing contract number 600 7281, 100% city funding to provide auto wash services for various city departments, contract or downtown auto wash LLC located at 1217 Michigan Avenue.

Uh contract period is for two years.

Contract amount is 383,532.

This is for OCFO.

And also 6.3.

Uh resolution authorizing contract number six zero zero seven two eight one hundred percent city funding to provide auto wash services for various city departments contractor downtown auto wash LLC located at 1217 Michigan Avenue uh contract period is for two years contract amount is 383532 this is for OCFO and also 6.3 um contract number six zero zero seven two eight three hundred percent city funded to provide all the wash services for various city departments contractor star auto wash located at one eight four zero one West Warren uh contract is for two years as well contract amount is one hundred and thirty-eight thousand seven hundred eighty and this is for OCFO is there a motion to discuss six point two and six point three motion that's been a motion made and I believe we have um um Alex Wether up and uh Ramon or Raymond Green Brandon Green Ryan Green officer contracting procurement one second Mr.

Green I could we couldn't hear you if you could just try to repeat one more time one more time Raymond Green Opposite Contracting and Procurement Still a little low but can you all hear okay all right thank you and then do we have Mr.

Wather up on Mr.

Chair I do not see Mr.

Brother up online Miss Sullivan uh do we have is there anyone else joining us or it's just for Mr.

Green for Mr.

Duran Chair, we just have Mr.

Green for right now.

Okay, thank you.

Thank you.

Uh uh Mr.

Green, good afternoon.

I just have one question here.

As I was looking at the um contracts a I saw that um these both were both were uh uh chosen for the lowest cost, but could you go into I has seen that um there was another contractor considered um and um it seemed like those costs were lower, but if you can just go to the breakdown here, I just want to make sure I had the correct information.

Okay, well, yeah, these are the just the first two.

We we have a total of five right now.

Um the other two were celebrity auto wash and legends grand river, which is now called Planet Oil Center, oil chain centers of Detroit, along with Turbo Wash, which is now called considered fast flash.

We're just waiting on additional paperwork from those to get those.

So it was it was a total of five.

These were all we everyone that uh bid we we uh gave a contract to.

Gotcha.

Okay, that's that's all for tonight.

All right, thank you.

Um other questions from college?

Thank you, Mr.

Chair.

Um so I know this is for a lot of different departments and their vehicles, their fleet to be able to have their vehicles washed.

Um, do we not have city vehicles that kind of stay that stay on the east side that can have their vehicle washed on the east side instead of having to bring the vehicle downtown or go to the west side through the chair, yes.

We are actively seeking uh east side vendors as well as one additional west side vendor for that same reason, so people wouldn't have to go um all the way to the west side, or I believe that's why downtown has the most volumes because of their location kind of centralized, but we are seeking to uh had one to do more to this uh fleet so that for those same reasons, especially with the high gas cost and time anything else additional.

We would like to have it close to each and more or less the police department has the most uh spread out uh precincts as well as fire, but they don't have as many vehicles, but we were looking to in order to appease the Detroit Police Department.

Okay, very good.

And me as well, because someone suggested that I just pay to have my vehicle washed, although there are many other folks that don't have to pay to have their vehicle washed.

Um, but my husband does it anyway.

Um, so if you need some assistance identifying an east side vendor, please let me know.

I'd be happy to reach out to some, and they don't necessarily have to be in district four, but something on the east side would be appreciated.

Thank you.

Thank you, Mr.

Chair.

Absolutely, thank you.

Thank you, Vice Chair Johnson.

Yeah, yeah, even with the race that we see with how gas prices are now to go to downtown the west side from the east side, you're paying for multiple gallons and multiple car washes to do that.

So that's I'm definitely would be good to see an east side and multiple east side vendors here.

Thank you.

Uh I like the location location.

Yes, yes, yes.

Any other further questions from colleagues on six point three and six point four?

Seeing none, is there a motion to send a formal recommendation to approve on six point three and six point four?

Six point six point six yep, uh six point two and six point three.

Thank you.

Is there a motion to send a form of recommendation to approve?

A motion on six point two and six point three.

She didn't make motion.

So there's no motion.

Oh member.

Oh yes, motion.

The motion made a six point two and six point three to center formal with a recommendation to approve.

Any objections?

Seeing none that action shall be taken.

Thank you.

Thank you.

All right.

All right.

So we did remove 6.4.

Thank you, Madam Clerk, for the correction there.

Um that'll move us on to from the office of city clerk and the city plan to commission.

6.5 resolution authorized the neighborhood enterprise zone certificate applications for 70, not condominium units within the lower of what were corridor.

This um is in these there are a motion to discuss.

Motion.

So motion to discuss 6.5.

Mr.

Gulak and folks from you may go for it.

Yes.

Yes.

And then a four-foot everyone could go for it.

Yes.

Thank you, Mr.

Chair.

Chris Gulak of the CPC staff.

Good afternoon.

Good afternoon.

And then if folks are David.

Not familiar with the new technology.

David Durita for the uh for Whitney Partners LLC.

And James Van Dyke for Whitney Partners LLC.

Richard Barr from Hodingman with the applicant.

Oh which mic is on.

Richard Barr from Honigaman with the applicant.

Okay.

Okay.

Thank you all.

Thank you.

I'll turn it over to you, Mr.

Bullock.

Thank you, Mr.

Chair.

Um staff submitted a report and resolution for your consideration.

Uh permission to show a brief slide show of the request.

Absolutely.

Thank you, Mr.

Chair.

Um this is an NEZ certificate request.

Next slide.

This is for the David Whitney Building.

Most most people are familiar with it.

It's on the west side of Woodward, just south of Grand Circus Park, shown as the red dot on the screen.

Next slide, please.

It's the historic building opened way back in 1915.

There's 19 stories.

I believe it's nationally and locally designated historic.

Next slide, please.

Here's a view looking south on Woodward towards the building and a floor plan, which is pretty much the same on each floor, but it varies a little bit as you go up the 19 stories.

Next slide, please.

This is confirmed as being in the lower Woodward Corridor NEZ, which was created by approved by council back in 2007.

It has about 10.8 acres, shown as the turquoise box uh on east and west sides of Woodward.

Next slide, please.

The petitioner is the David Whitney residences LLC.

Uh the owner and developer is with us today.

It's the Rockberry Group.

Um in 2014, the Rockberry Group uh acquired the building and invested over 90 million.

I guess the building sat vacant for several years.

They acquired the acquired the building and invested 90 million to create 136 hotel rooms and 105 rental apartments.

In 2022, the developer invested an additional 20 million, converting 26 of the apartments to additional hotel rooms, leaving 79 apartments remaining.

Next slide, please.

Currently there's a mix of one, two, three bedroom units ranging from 569 square feet all the way up to 2100 square feet.

And we provided a summary of some of those in our report.

Next slide, please.

The estimated sale price range for the condos is 270,000 to 575,000.

However, the developer notes that the pricing uh of the units includes a wide range of offerings with a number of units at or below the median price for a new or new for sale condominiums in the greater downtown area.

Uh next slide, please.

So there's no these are market rate condos, but the um Roxbury Group is asking you to consider its total portfolio, which includes several affordable projects in Detroit that most of you are familiar with.

First, they indicate they have over 500 multifamily residential units, of which are over 50 percent of which have been steeply affordable.

They recently acquired the Lewis Camper and Stevens building on Washington Boulevard.

And then lastly, most folks are they're currently working on the Lee Plaza, which will have 117 voucher assisted senior residential units.

Next slide, please.

For parking, there's none available on the at this particular building, but there's a available parking they indicate across the street below ground at Grand Circus Park and other surface lots around the building.

Regarding accessibility, the petitioner indicates the building is fully accessible.

Purchasers wishing to maintain a unit as ADA compliant are permitted to do so.

And lastly, we confirmed it's in the NEZ zone.

Staff was recommending approval and a resolution is included for your consideration.

Thank you, Mr.

Chair.

Thank you.

Thank you.

Do folks with anything to have anything to additions?

Again, David Rita through the chair.

I think the staff uh report was very thorough, and I I I guess I would just step back from it, recognizing that the committee we're before here today is budget.

And we understand that your uh primary charges uh on that score is protecting uh the the city's fiscal uh health.

I think this is an excellent uh story of of fiscal revival, frankly.

Uh and I feel like just uh what sometimes gets lost in the work we and other developers have done, we we've been at this for about 20 years, uh done a dozen projects in the city of Detroit.

Uh overwhelming majority of those projects started with a building that was either vacant or owned by the city or both.

Um a small anecdote when we bought the David Whitney building as uh was just suggested back in 2011, uh we were I think our tax bill on that property for that year was something around fifty thousand dollars.

Uh and and my colleague James Van Dyke can talk about the uh taxes that David Whitney will pay going forward, even with this abatement, but it it's in the millions.

And and it really is a good news story for for the use of abatements at the front end of a project and the ability to allow those abatements to wean off over time.

I uh would like to point out uh that, and I believe it was clear in the staff report, uh, that the David Whitney, the hotel David Whitney is actually uh no longer an abated property, and it is paying full taxes in the city of Detroit.

Uh and that the NEZ certificates we're asking for here are really to enable homeownership at that property.

And as we uh as we all know, until we can uh find a way to lower the fiscal burden on homeownership, uh they really are a necessity if we if we want to uh see homeownership expand.

Uh and in this case, uh we are very committed to this expanding tax paying residence in the city of Detroit.

Another point I would just want to raise is we have a strict prohibition in the HOA on short-term rentals.

So these are not investment assets uh that we're selling here, these are homes.

And so um so we look forward to welcoming uh 79 uh Detroiters into the David Whitney building to call it home.

And I James has a few fiscal points that I think probably are worth mentioning as well.

If I may, Mr.

Chairman.

Um thank you for having us today.

Yeah, just uh as it relates to the David Whitney building itself, just a little backstory on its kind of more recent history.

Um so as my colleague, Mr.

Dorita uh mentioned, uh, we were under an Oprah uh abatement from the time we redeveloped it the first time uh into the hotel and apartment mix until uh the end of December last year.

Um so even in that time frame, it's important to note that our tax bill uh even under the abatement went from about $50,000 a year to last year in 2025, we paid $430,000 a year.

So even abated, we were still you know adding value and increasing the tax base.

Um at the end of last year, the the NEZ or the uh Oprah burned off.

Um even though over the last two years we invested another 20 million dollars into the building, we chose not to come before uh the the city council to seek another abatement because we knew the original abatement had done its job.

You know, uh the the hotel had stabilized, it was doing well, and it could afford to pay its tax bill.

So uh at the beginning of this year, we split the building up uh into two units, one for the hotel, one for the apartments.

Um and like I said, the tax bill, and that we haven't received it yet, but our estimate on the tax bill for the hotel is gonna be over a million dollars this year.

Um so that represents about a 65 percent increase in the taxes the just the hotel portion will pay.

Um but it's important to also note that the taxes, even you know, if if we're fortunate enough to have this NEZ, these certificates be approved, the the tax payment for the residential will also go up.

And that's just the nature of how these things are calculated.

So um last year in 2025, we estimate that the tax bill for the residential was about sixty-five thousand dollars a year, and then even under the NEZ in 2026, that'll go up to about 170,000 a year.

That represents about a 62 percent increase.

Uh so overall, you know, from a 2026, the building paid 430,000 in taxes, and we estimate from 25, I'm sorry, we estimate in 2026 the building will pay about 1.2 million dollars in taxes, even you know, again, if we are fortunate to have the uh NEZ approved.

So it is a good news story as it relates to um you know acquiring investing in and stabilizing a vacant building in downtown Detroit and then allowing the process to play out naturally, where the portions, the assets that can afford to pay the tax bill, don't have to seek abatements anymore.

But today, of course, we're focused on on the residential and trying to convert that from multifamily to condo uh and this much needed uh NEZ abatement.

Thank you.

All right, anything else?

Happy to answer any questions.

Thank you.

Um we'll go to the question.

Star War member waters.

Thank you.

Um what's the um current occupancy?

Well, uh as it stands right now, the occupancy is uh uh fairly low because we've been uh undertaking the conversion effort that was described in this uh presentation.

Before we started the process, uh we with the David Whitney uh typically stayed in the range of uh 90 plus percent occupancy.

Before you started, before we started the process.

Okay.

Um, similar um your sales prices similar to other prices that in the downtown area.

Well, I think we fought it's an excellent question through the chair, uh, Councilmember Waters.

Uh I think we fall into a into a good uh what I would say middle high range uh in downtown Detroit.

Um we're nowhere near as as costly as our neighbors up the street who I know uh uh sought and obtained an abatement the addition.

We wish them well, but I think uh I think their uh going in prices are are a little bit north of double or a little bit south of double what we're charging on per square foot basis.

Uh and um and because and I think the staff report also did a good job.

We we always built a wide range of um of unit options into the David Whitney.

So even when we first opened it as apartments, and by the way, uh when we did first open an apartment apartments, we voluntarily had a 20 percent set aside for the first five years.

Um at the project for 20 uh 80 percent AMI, I believe it was.

That was before the council had actually uh uh codified that into a requirement.

Um but we always had units that that were I would characterize it at the middle scale and the high scale in the building.

And with the 500 square foot units in particular, which are extremely popular, um uh you know, we have units in there that uh some of our our long-standing residents are uh who were apartment owners were anxious to buy.

So they they could afford the apartment apartment as a condo, assuming it got converted and they could pay a mortgage.

The mortgage would be at or about what they were paying in rent.

So uh I don't think this is this is certainly isn't a step up in uh because the David Whitney was always a very uh uh uh I would say popular apartment building uh because of its location and its beauty and amenities.

Um but I think it we are presenting excellent opportunities here, I think, for first-time buyers, I guess is the way I put it.

Okay.

So you haven't owned it.

What's the percentage of the owner occupied right now?

Uh well, right now zero.

Uh yeah, because we haven't I mean it's everybody's renting now.

Everybody's renting who is still there, and I you know, I I know there's often a question of but four on on abatements uh and NEZ uh for residential is is no uh exception to that.

Um and and those of us who own homes in the city of Detroit know that uh when you get above a certain value, uh it becomes very hard to find a buyer if you can't uh ensure that that tax rate is gonna be capped.

Excuse me.

That the tax uh I know the uh it's actually uh NEZ is actually kept the assessment, the rate is full uh on this.

Um and that is no exception here.

We have many, many people who are interested in buying these units, and every one of them have said we need an NEZ to purchase this, every one of them.

And uh I I wish that were true.

I really do.

Uh well then we need to tell the State of Michigan to just step it up some with the NEZ.

A bit more.

Well this is because we've been moving forward on the work that is already required here our hope is to actually start selling units to uh residents who have expressed a reserv uh provided us a reservation a willingness to to purchase um this year so we're our we hope to receive our first residents into the building uh by the ideally by the end of summer and and we're not in any rush this is a long-term hold we want this property to to uh um uh as a residential property to me you know meet its full potential so we're in no rush but we but we know that without uh this support uh we really can't even start the process uh and and you know obviously we went ahead and started making these investments in the property uh you know understanding that that uh uh this body uh uh has to approve these and we're we're hopeful that uh that we can like I said make these people homeowners in in Detroit who are anxious to buy homes here.

Um just another um thought here what about the uh public benefit benefit how does it uh justify granted tax breaks for units price up to 575 thousand benefit of it I mean the public benefit to us is is preserving and maintaining homeownership in this neighborhood which we we have been investing in for 20 years and and of course uh to us the public benefit of providing this level of tax support to the city uh through the through our long-term investment in the David Whitney uh again um uh while I I think our bona fides are are are very clear on affordable housing and um and affordability is has been a key component of everything we've done in the city though we've recognized as we moved into for sale and this is this is a first case case of first impression for the Roxbury group as well this is our first for sale project.

We also know we have to let the market dictate what people are willing to spend and and you can't mandate somebody buy a home and and even though their income might be at a certain level that that income stay at that level you know they have to be able to rise.

And um and so uh so we see the public benefit here is preserving and maintaining and enhancing one of Detroit's most iconic properties and making it a home truly for for Detroiters and uh it is our as we always say the doors of the David Whitney are never locked.

And uh and you know we welcome uh Detroiters 24-7 into the building and and and we we really are personally excited at the notion that after a hundred and ten years uh some people can actually call it call it their home well um Governor Whitram certainly stayed down there when she's first campaign for the change she did she did.

We're very honored to have her all right then thank you Mr Chair Mr.

Thank you member Johnson Thank you Mr Chair uh good afternoon um thank you all for being here I am uh first want to say thank you for letting that NEZ burn off and not coming back to ask for another one that doesn't happen often enough um and it really just shows how the NEZ helps to develop or to rehabilitate a property um get it on stable footing and then allow you to give back to the city which we've been asking for a lot of developers to do because our um our expenses continue to grow right um nothing stays stagnant and so I wish so many others would recognize that and that when we push and to ask for additional uh dollars coming to the city's general fund by way of property taxes it is because everything that happens in life continues to cost a little bit more right um and so having some additional support from these projects are really what how they were intended to work right so thank you for that um as it relates to the apartments being converted to condos talk to me about rental rates AMI um raw rental rates um in comparison to the costs of the condos uh I'm gonna start James will probably have a uh through the chair uh probably have a uh more granular answer and uh and and and you made me think of one thing uh council member uh Johnson that that uh I feel is worth pointing out we wouldn't have been able to be quite so magnanimous if the decision had been to maintain apartments in the building because the point of the fact of the matter is and James has some data on this if if these had stated apartments even though and I'm about to answer your question even though the apartment were some of the highest priced apartments in the downtown we were often uh we hit the magic $2 a square foot kind of out of the blocks a decade ago when everybody was saying that would then make apartments uh no longer require uh subsidy and support but unfortunately construction costs kept going so you you had developers continue to uh to need it we had apartments getting upward upward

If if these had stated apartments, even though, and I'm about to answer your question, even though the apartment were some of the highest priced apartments in the downtown.

We were often uh we hit the magic $2 a square foot kind of out of the blocks a decade ago when everybody was saying that would then make apartments uh no longer require uh subsidy and support, but unfortunately construction costs kept going, so you you had developers continue to uh to need it.

We had apartments getting upward upwards there in the range of $2.62.70 cents a square foot.

We could have gone higher, frankly, but we preferred to maintain uh less turnover in the building, and so we it we tended to favor loyalty if you stayed, we didn't bump your rent that much.

But the reality is that that without an abatement, for it to them to stay apartments, they the the taxes uh that would have kicked in at the apartment level would have devoured our rent.

Um and uh and uh and so that's one point.

The other point, and I'm gonna do my best to answer it before I give it to somebody who is smarter than me.

Um it's sometimes an apples to orange comparison uh to say how does the for sale price at call it you know X per square foot relate to a for uh a rental rate, except to say I think the tenant base and the residential base uh are there's a fair amount of overlap, I guess I would say.

They're just people at a different point in their decision making.

There are people who are renting because it was convenient to rent at the David Whitney uh who are choosing to buy.

And so there's a fair amount of overlap there.

So while that's anecdotal, I think we're talking about residents with the same means, frankly, at both ends, but are just making a different choice about ownership versus rental.

Um I don't know if James you can add anything to that.

Yeah, if I may through the chair, just to echo the point, and I mentioned it earlier, but you know, so just kind of unabated, just on its own, the taxes for the building as you know are going to go up $800,000.

So it at some point if it's it was a pure multifamily project, we'd have to really jack the rents up to cover that cost.

Um, or we'd be in trouble.

Um so you know, over the years we've operated the building as one, so these lines were blurred a little bit just because we had you know you know both hotel and residential income coming to the same into the same account.

Um but now you know this process has forced us to bifurcate it, you know, they're two separate units now, and really look at that proration between the two.

So it's a pretty significant 62 percent increase in taxes just for the residential portion alone.

Um with the NDC.

Uh but it would have been anyway.

Yeah.

So I'm just saying, because it's this it would be the same bump this year in 2026.

And NEZ just helps maintain that.

Um so yeah, I I think that you know it we would be having a different conversation if we kept this multifamily uh we'd probably come back and say, hey, could we actually continue uh an abatement program for the multifamily because we're having a hard time making ends meet, and obviously if we were to to ever think about selling the building, that you know, that would be a you know different economics as well.

So I would say in large part this is the natural evolution of the project that we set out three years ago to do, which is to improve, you know, you know, invest 20 million dollars in the building on the whole, um, you know, convert the hotel to the the autograph and then come back and convert the the residential to um to to kind of minimum.

And I'll also say, you know, and again, this is just going back to the the benefit point, if I may.

Um, you know, none of the numbers we talked about obviously include um income tax to the city.

Um and and last year uh our projects contributed about 1.3 million dollars of total property taxes to the to you know to city and other jurisdictions.

Um with this change alone, we're gonna be uh over two million dollars a year in property taxes across all of our portfolio.

But that doesn't include any of the of the income taxes being paid.

And I know that um with home ownership, you'll have uh more people that are choosing to call this their principal residents and claim residency, of course, uh in this building.

Uh and I think just that alone, you're gonna see kind of an exponential jump in in uh in the income tax uh component as well.

Thank you for that.

Uh is this a historic building?

It is very national, national, local, and state.

Yeah.

So does that require you to do a specific or specific types of improvements to the apartments to as you convert them to condos?

Well, fortunately most of what we're doing.

I'd say through the chair.

Um most of because we're not making physical changes to the spaces, um that there's no issue there.

We're maintaining the uh the the historic facade is not being impacted.

And there's a facade easement on this building that protects that, which we placed with uh and uh in our hallways too.

And another hallways and in the atrium.

So we so we granted a uh historic easement uh to the Michigan Historic Preservation Network at the end of the original restoration to protect for all time the uh the common areas of the building, the exterior as well.

So we're kind of left with a fair amount of freedom inside the units.

The units themselves were restored in accordance with Park Service standards in 2014 when we initially built them, and we're not really changing their um physicality beyond uh important refreshes, flooring, paint, appliances, uh countertops, things that generally don't fall within the purview.

Right.

So basically the historic components have already been addressed when the property was rehabilitated by you all initially.

Yes.

All right, thank you.

Um Mr.

Gulag, I'm not sure if this is a question for you or for uh Mr.

Barr might take the question.

Um I'm used to these types of conversations happening in PED.

And um I would look for getting uh having a good understanding of the current assessed value, which is an apartment, um, and what the assessed the what the assessment will be when they are condos to have some idea, some understanding of what Mr.

Van Dyck shared about the property tax revenue that is going to come to the city.

Do you have any sense of how that assessment, how the um assessment takes place considering it is an apartment unit?

Uh through the chair, yeah.

My uh initial response is yeah, the the building would be assessed as a whole previously, I guess it was assessed as a whole apartment building and a hotel together.

Moving forward, I I think they split the building into two different deeds.

Well, correct me if I'm wrong.

Two deeds, one for the hotel, one for the condos.

And then I think each of those 79 condos will get their own tax bill.

So it's a little hard to compare uh the two different structures, but that's my understanding is that instead of having one property tax bill with the hotel and the apartment in the future it'll be a tax bill for the hotel and then a 79 separate tax bills.

And I think if you just have a unit that's 300,000, you know, you paying about 9,000 a year in taxes without the NEZ, but with the NZ it would be about 3,000.

So but I'll defer to Mr.

Barr or Mr.

Van Dyke if they have more a better answer.

James says.

Yeah, I'm I'm happy through the to the chairman.

Um generally correct.

I mean, so you know, when when we rolled off of the Oprah last year, um we had uh we had an assessment notice that came out for the whole building.

And so we were we've worked with the assessor's office on determining what portion of the building was attributable to the uh hotel, which and and what portion, of course, uh for the residential.

So I think they've made some recommendations along that score.

Those are the numbers I shared with you before.

So from an assessment perspective, things just kind of get divided up into their into their prorations.

I think that the big change is the is the rate.

Because when we are under the Oprah, um all the improvements that we made, all the $80 million of improvements we made back in 2013 to 14 were were assessed at a lower rate.

So that's the nature of the increase as it relates to the hotel that the the millage there went through the roof, and that's creating the difference between the $360,000 up to over a million dollars in taxes will pay on the on the hotel alone.

Um as it relates to the residential, the same is true.

Um we were paying a lower millage rate under the Oprah than we would be paying now, even under the NEZ.

I think the the benefit of the of the NEZ is to essentially freeze the the building composition comport uh portion of that uh assessment in place.

And so um So the NEZ splits the assessment up essentially into two components, the land and the building.

The land will continue to increase and so taxes will still go up, um, but it's just goes up at a lower rate because you're freezing the assessment for for the units.

But all the while the hotel is gonna you know go, you know, will be increased on you know year over year as it would naturally would.

So you had only an Oprah on the entire building?

You didn't have an NEZ.

Correct.

Oprah on the whole building, though.

Yeah.

We were in a zone, but we we chose to go for an Oprah at that time.

Got it.

I'm just curious now that the Oprah has burned off what the rate is for that portion, I guess, of the um what will be condos.

So again, I'll have uh Mr.

Barr correct me if I'm wrong here.

Um but it it the rate itself does is is the rate that anyone would pay for a non-uh homestead or a homestead.

So it goes to the 82 mills or or the 64 mills.

Um so the rate itself uh is the same as anyone else would pay.

The benefit is that the assessment we have currently on those units would stay in place, or a portion of that assessment would be locked in.

But they will also see the reduction in the millage for the school debt millage because now they will be owner occupants.

Right?

Is that right?

That would happen, but even that reduction is higher than the millage we're paying now, or we paid last year.

You know, so that the any the Oprah rate, it's blended because it it's several different millages across the whole building.

But the blended millage rate is lower, was lower under the Oprah than even the homestead rate is you know will be today.

So that's what I'm saying.

Taxes are going up across the whole across the board.

This is just a mechanism to help kind of reduce the rate of increase on the residential portion.

Yeah, well, for for the record, I would um I'm always I think a little bit more considerate of giving an abatement to an owner-occupied um property more than anything, I will say because those folks have a little bit more skin in the game, if you ask me.

Um less transient, you can anticipate that they will pay income tax revenue over maybe a longer period of time than someone who is renting and has the potential to move next next week, next month, right?

Um it makes it a little bit more difficult if you own and occupy the property.

So I was just curious about all of that.

Uh it looks like Mr.

Barr, attorney Barr would wanted to maybe chime in a little bit.

Did you?

Well, I think you can you hear me?

Can you hear me?

We're not sure which one of these microphones actually work at this point.

This one work?

It is picking your voice up, so I'll just read it on the screen.

Okay.

Uh I think you have the questions answered, but let me mention one thing.

You mentioned the difference between owner-occupied and non-owner occupied.

And the case of the NEZ, for an owner occupied, they are entitled to the homestead exemption, which would be an elimination of the 18 mils school operating tax.

Otherwise, they pay all the other taxes.

And if it's a non-principal residence, it could be a second home, for example, they would get the 18 mills off and pay roughly 64 mills instead of roughly 82.

Uh, the difference between this and other rehab NEZs is that the existing taxable value is much higher than normally is for your typical gut rehabilitation.

When somebody comes in with a building with barely has walls assessed for 100,000 and the benefit is substantial by having the NEZ.

This benefit is much less than a typical NEZ rehab because you are starting with a building that has a much higher base value.

So there the uh but for the the investment of the city in terms of the reduced tax rate is much less on this project than other projects I brought before you in the past when the freeze was at a very low level for a long time.

Uh this matches all the things you are asking for.

Got it.

Um I would love to see the numbers that you and the assessor are working through so I have a a good understanding of what the what the um I guess not the assessment rate, but the um taxes for the units will likely be moving forward because um I do understand what you are saying, and I I have that understanding.

Um that's why I was curious to to know like how the assessment is going to be done because it is already a pretty much renovated um building or renovated units, and you're just adding some additional investment as they're being converted into condominiums.

So and just through the chair to be clear, uh and we were throwing a lot of numbers around.

Uh we we do have an estimate for what those taxes will be, and I think James uh combined the two in total.

In total.

Um but we can break that out.

That's happy to send it to the Mr.

Chair.

Thank you, Vice Chair Johnson.

Uh just have a couple of questions for myself.

Um when it comes to the renovation work, uh can you go into the work being performed by union labor and also the percentage of construction workforce that expected it to be Detroiters?

That's a uh you know, we've always prided ourselves at a pretty high level of that here.

We brought O'Brien construction in to do the work because they had done the development work on the conversion of the hotel.

Uh that has often involved a a fairly high percentage of Detroit-based uh uh workers, particularly in the in the uh carpentry trades, which is largely where we're focused now, to be completely candid.

Uh uh, Mr.

Chair, I we have not been tracking it uh on this project because it has been uh it was a reasonably light touch renovation.

Uh and um and so if that's information that would be helpful, we're happy to provide it.

Uh but we just haven't been tracking it because there was no outstanding requirement to do so.

We're just trying to get the work done.

Gotcha.

Yeah, if it if you could get that information, that'd be great.

That'd be great.

Um and for and also if they're union um workforce as well.

When we first redevelop uh uh we're uh first redeveloped the project, uh it was a 100% union project.

Uh and uh and uh we typically are in the range of 50 percent on our projects, including Lee Plaza, which is probably 90 percent uh union trade right now.

Okay.

Um but this is getting into the as I said, uh lighter touch work that sometimes the those percentages drop in Canada and then um I know you mentioned um at the outset uh you know uh some of these units would be um and you getting some would be prime for a first-time home buyers and you get some interest around that.

Beyond the outreach to the folks that may have already occupied these apartments, are you all doing any outreach to those first-time home buyers or um folks that may be on the lower end that kit uh qualify for a down payment assistance?

How is that looking?

We we don't have a specific program.

We we're obviously anxious to uh have anybody who would be interested in in buying a home at the David Whitney uh um available.

So if there are programs that we can refer our brokerage team at at properties to, we're delighted to do that.

Yeah, I think there are some uh we can follow up on that because I think there especially as we continue with the down payment assistant program with the city.

I think that might be a good place for folks.

Um and then also uh just thinking about just a question for on the parking.

I know you was indicated different parking garages and surface lights, uh surface lots.

Uh uh do residents get any type of discount with those parking or how does the parking work in that way?

If I may, yeah.

So uh we do have a relationship with the Grand Circus Park parking garage, and so they're discounted rates for the residents there.

But uh I will say uh oftentimes if folks work downtown, they'll just leave their car at work and walk home.

Um so you know, we let people kind of figure out their own, you know, their own solution there.

It's really why we don't incorporate it into the price of the unit like a lot of projects do.

And we've seen, frankly, again, another marker of our success in the greater downtown as a community has been the dropping need for parking spaces because people aren't driving.

Gotcha.

Okay.

Okay.

Well, thank you for that.

Um yeah, if we can get that workforce, those workforce numbers there, that would be great.

And I know there's some info that Vice Chair Johnson um requested, but any other questions from our colleagues.

All right.

Is there a motion on six point five?

Motion to send line item six point five to formal with a recommendation to approve.

There's been a motion to send six point five to formal with a recommendation to approve.

Any objections?

Seeing none, the action shall be taken.

Thank you all for joining us.

Thank you for your time.

Thank you for your time.

All right.

So we'll move us on to uh six point eight through uh six point six through six point eight.

These are various budget memos, um relative to media services.

Um I'll just read them into the record.

Um this is uh 6.6 is the 2026-2027 Media Services Department budget questions from Member John uh Member Benson, and then 6.7 is Media Services Department Budget questions from Member Waters, and then 6.8 are uh 2026-2027 Media Services Department budget questions from uh member Johnson.

Is there a motion to receive and file six point six through six point eight?

Motion has been a motion to receive and file six point six through six point eight.

See no objections the action shall be taken.

And then that will move us on to 6.9 um under miscellaneous from Vice Chair Johnson uh memo relative to the request uh request information regarding how public safety fees are calculated for large events.

Uh we've been asked to bring this back in one week, but I'll defer to you, Vice Chair Johnson.

Motion to bring line item six point nine back in one week.

All right, there's been a motion to bring it back six point nine and one week.

Seeing no objections, that action shall be taken.

That move us to the end of the agenda under member reports.

Are there any member reports?

Start with Vice Chair Johnson.

Uh no report, Mr.

Chair.

Thank you, member Wards.

Thank you so much.

I would just say um just to note since it is Friday on this Friday there will be the disability task force uh meeting.

Uh that is chaired by myself, myself, uh member Johnson and Pro Tim Young.

Uh it will be this Friday at 4 p.m.

Um at Arc Detroit, and this is also a hybrid meeting.

So folks can join us virtually.

So please do come out to the disability task force meeting.

That's the end of my report.

Uh seeing that there is no further business before this committee, is there a motion to adjourn?

Motion.

It's been a motion to adjourn, see no objections.

That this committee should stand adjourned.

Thank you.

Thank you.