Day.

Thursday, June 18th, 2026.

Madam Clerk, will you please call the roll?

Good morning.

Councilmember Letitia Johnson present.

Councilmember Gabriela Santiago Romero.

Member Santiago Romero did indicate she would not be present today.

The clerk will know.

Council President Pro Timporter.

Coleman Young.

Madam Chair, we have quorum.

Having a quorum present, we are now in session.

Good morning, Pro Tim.

Is there a motion on the minutes?

Motion.

There's a motion to approve the minutes.

Hearing no objections, that action shall be taken.

We are going to move into general public comment.

If there is anyone joining us here for general public comment, please raise your hand, whether in person or virtually, please raise your hand.

Public comment will be cut off at 1012 in two minutes.

Good morning, Ms.

Gray.

How many hands do we have raised virtually?

Good morning, madam chair.

We have 12 hands raised for virtual public comment.

All right.

We're going to give everyone one minute 30 seconds for general public comment.

And we do have someone joining us in the committee of the whole.

If you would like to take one of the seats here in front of me, we will set the clock for one minute 30 seconds.

And once we have the clock on the screen, you may begin with your public comment.

Good morning.

My name is Adrian Tines.

Um, been here several times about addressing the issues at 375 West Grand Boulevard.

Um I'm here today um because we're still dealing with some serious issues with the owner.

Uh the city inspector came out to so-called inspect.

Um, he was supposed to go to every unit.

He did not, and found out that um he didn't even care to ask the the tenants what were the issues going on, the ones that he did go into their units.

Uh we still deal with infestation, the owner not addressing serious issues going on in the building, people uh becoming ill, uh, some dropping dead.

Um I'm targeted as well because I speak out.

And um, I did connect with Marquetta Samuels.

She contacted me.

We haven't actually met up yet um to address some of these serious issues that are going on in our building.

And um, as I have stated, the um no one's addressing any of the problems, people getting sick, dropping dead, having similar symptoms.

And as I have stated, the FBI needs to investigate Keatus Miss Kinnis, this owner with what's going on and the attitudes of the staff very sexually perverted.

I'm almost 65.

I don't want to hear that.

Um, and the owner just covers it up and tell them, you know, to dismiss what we're saying.

So I wanted to continue to get this on record of what we're still dealing with and how this needs to get looked into because of serious.

Thank you.

Thank you.

And um, I know that you've been working with um your council member and her team will make sure that we get your information to ensure that they're they're continuing to communicate with you so that they're aware of what you just shared with us.

Well, I haven't heard anything from the councilwoman so far.

I'm quite a samuels has emailed me, and we're trying to connect.

Okay, thank you.

Thank you.

13.

Thank you.

We will now turn to our virtual callers, noting that the collection of general public comment has concluded.

Who do we have first?

Caller is caller ending in one zero one.

Caller ending in one zero one.

You have one minute thirty seconds for general public comment.

Good morning.

Good morning.

I just would like to say that God can be gay.

Does that conclude your comment?

Yes, we do.

Thank you.

The next caller.

Our next caller is William M.

Davis.

William M.

Davis, you have one minute, 30 seconds for general public comment.

Uh good morning.

Can I be heard?

Good morning, yes.

Okay, I want to invite everyone that's listening to come down to the Colonel Young Municipal Building, 13th floor today.

Uh, from one to three, the City of Detroit retiree task force has resumed, and it's going to be our first meeting this year.

And uh, there are a lot of issues that we need to bring up, a lot of issues we need to be concerned about.

As you know, that the thousands of city chart retirees have died since the start of the this corrupt grand theft bankruptcy and our pensions was cut, our cost of living was uh retroactively removed, and uh many of us still have a annuity claw back.

So we are suffering, we've been suffering, and we continue to suffer.

We need to be exploring ways the city can help us, especially in so much that now is not up under daily jurisdiction of the bankruptcy court.

You know, so it's imperative if you can't call if you if you can't come down, get on Zoom, and you know, even if you don't want to say anything, just get on zone, let them know that we're still here and we still need help.

Because far too often, it looks like the city does not give the concern and help for City Detroit retirees.

This whole recovery has been on our back.

And I think that the previous administration was hoping more of us would die than has died.

So y'all have a good day and be active.

Vote.

Thank you.

Before we proceed to the next caller, I'd like to call the 1015 public hearing to order and recess it to the call of the chair.

We are now back at virtual public comment.

Who do we have next?

Our next caller is Owner Papa.

You have one minute 30 seconds for general public comment.

Owner Papa.

Oh, good morning.

And through the chair, Matthew Heard.

Good morning, yes.

Um, yes.

Um you have eight dot uh two on your agenda today.

Eight dot two is about nuisance abase abatement.

Could we see the current nuisance abatement program?

Could we have a can you tell me where it can be found so I could take a look at it since now you're trying to um alter it, make it into something else.

I thought you already condemning houses and you're already using a process.

I need to see what process you're using to date.

Um eight dot two, that was eight.

This is nine.

Um why are we providing um DEGC $2 million?

Um, I'm not sure what their pro what what we have to do with them.

Um, they make money and they don't give us any of the money they make.

And yes, um, Mr.

Uh Williams, they could have helped you.

And um Donnie Johnson told you that if you had paid out 70 million dollars that every city council member said that they could not afford, but they can afford to give 42 million dollars to plug a corporate income tax hole.

I think this council should operate to to help the people that live in this city.

You are a liability.

I don't know if you know that, but you are a liability to us, and you're come becoming more of one every day.

Thank you.

Thank you.

The next caller.

Our next caller is Tyson Gersh.

Tyson Gersh, you have one minute, 30 seconds for general public comment.

Thanks.

Can you hear me?

Yes.

Thank you.

Um, I wanted to comment on um item nine point two two.

Um in council's 2025 closing resolution.

Uh member Miller requested that BZA activity be incorporated into the community outreach ordinance, and it does not appear that much, if any BZA activity has been incorporated.

Um also I'm glad that a what is it called?

A record of community input is going to be created.

Where will that be stored and how does the public access it?

Um, the law department just literally doesn't fulfill FOIA requests, and anybody who tells you otherwise is misinformed or lying to your face.

Um there has to be a space for the community to access public records for taxpayers to access public records.

And if it has to go through the law department, those records will never see the light of day.

So there has to be a place to access the stuff.

And perhaps most importantly, um, what obligates any of these departments to actually listen to anything anybody says?

I don't see a single thing in here other than we're gonna take people's time to document their input, but it doesn't say you're gonna listen, it doesn't say you're going to do anything with it.

Um, much thank you.

The next caller.

Our next caller is Cunningham D dot Mobility Access Ambassador.

Cunningham, you have one minute 30 seconds for general public comment.

Hello, hello, hello, everyone.

313, 444, 9113, 444, 911.

213, 44, 911.

That number was made, so you can remember it.

Um so I am not the enemy.

Uh, don't let the powers that be make big money.

They make big money or have nepotism or favoritism, the easy way out.

I have endured by the hand, and you might be one of those bullies.

I'm an easy target.

Get to know me before you join in the bullying.

Touch not God's anointed Cunningham, neither do the servants Cunningham.

No harm.

No harm or reducer.

I've been going through so much by the hands of the bullies for over a decade.

I don't make $30 a year.

I don't make $40 a year.

I don't make $100 a year.

I do a lot for the community from the bottom of my heart, and I ask you to pray for me.

First off, and assist in the work that I do.

Touch not God's anointed Cunningham.

Neither do his servants, Cunningham.

No harm.

No harm.

Thank you.

And before we proceed to the next caller, I'd like to call the 1020 public hearing to order and recess it to the call of the chair.

We are now back at general public comment.

And who do we have next?

Our next caller is Blackbag.

Black bag, you have one minute 30 seconds for general public comment.

Well, well, well, Tissy Johnson, you're a cheated in public official.

I ain't lying.

You won't say I'm lying.

You won't say I'm passing bad information.

Janice Winfrey to filed a report, a complaint against me with the Detroit police department saying she didn't fear for her life.

Now I ain't got no intention on harming nobody, but I'm gonna expose all y'all.

TV and city council members, the mayor cheated in, the city council cheated in, the school board cheated in the board of police commissioners cheated in.

Got some kind of funny style plan to get married to resign and remove first get her removed from office, and they got this channel seven news reporter trying to get some information.

He ain't gonna get it.

I put a block on that.

I'm real.

Thank you.

The next caller.

Our next caller is Jadante Smith.

Jadante Smith, you have one minute, 30 seconds for general public comment.

Good morning.

Um I want to say uh I want to agree with Tyson.

The FOIA department in the city of Detroit is horrible.

Um, you can put a FOIA request in, and uh unless you have a reporter, I feel like that's the only way you're gonna get information back from the FOIA department unless you um email the supervisors uh incessantly, you you don't get any responses back.

Also, Angela Wolfell Calloway, uh, she made a comment yesterday that D DOT was the biggest issue that she heard over the last four years, and I think that's ridiculous to hear that, unfortunately, because we have people who are sleeping in cars, sleeping on the streets, we have people who are home, we have people who are um unemployed, we have the amount of crime and violence that we have in the city of Detroit.

We have BC department that is only in 15% compliance.

We have people who are being evicted from the units that are uninhabitable and that are already condemnable.

Um we have mental illness in the city of Detroit.

So as much as I will have Cunningham, Dodd is not the biggest issue in the city of Detroit.

And anybody who would tell you that is mentally unstable.

Buses are important to have, but we have so many other issues.

Also, uh, I do agree that Conrad Mallard should not have his law license for him to say that it's a conflict of answers for uh a police commissioner to sue the CD B trait when officers sue the CDB trade all the time and they still remain on their in their positions.

It's a conflict of interest for our corporation council to sit on the board of police commissioners.

And anybody who sits here and lets him do that is terrible.

Also, we need ordinance for digging up uh thank you.

Before we proceed to the next caller, I'd like to call the 1025 public hearing to order and recess it to the call of the chair.

We are now back at general public comment.

And who do we have next?

Next caller is legendary Detroiter Legendary Detroit has already spoken.

The next caller is are solar farms really safe in residential neighborhoods.

Caller, you have one minute, 30 seconds for general public comment.

May I be heard?

Yes.

Hello.

Hello.

Good morning, yes.

You can hear me.

Yes.

Can you hear me?

Can you hear me?

Yes.

Okay, thank you.

Well, folks, um, you really are violating the charter.

Uh Conrad Mail is not upholding the charter.

You didn't do your due diligence on the solar farms.

There was just a massive solar fire at a warehouse in Boyle Heights in Los Angeles that erupted.

There are air quality concerns that remain as the fire smolders.

The people were told to shelter inside, run air purifiers, purifiers if you have them.

It is very you guys didn't do your due diligence.

Is the Detroit Fire Department even equipped to handle solar fires?

Uh and I don't think they are.

There's there's there's there's somebody who knows who's visited these places.

They're supposed to be all sorts of stuff to protect from solar fire fires that you don't have.

It is dangerous to put these in residential neighborhoods as this fire in Boyle Hearts, Los Angeles has proven you have failed to live up to the charter.

And you should really take a look at it.

You should have a full public hearing and ask the fire department.

Are they equipped to handle this?

And clearly now I know why they were cutting trees down that do carbon capture before they even have the property.

It's this is a scam.

Uh uh to just to get more federal money through the inflation reduction act, which we saw yesterday.

You basically committed fraud on the residents.

You didn't tell us this.

No, not everybody's getting house improvements.

And why don't the rest of it get house improvements?

There's no CBO.

This is thank you.

The next caller.

Our next caller is Betty A.

Varner.

Betty A.

Vernon, you have one minute, 30 seconds for general public comment.

Uh good morning to all within the sound of my voice.

I'm Betty A.

Varner, president of DeSoda Elsewhere Black Association.

Gonna give the information in regards to the free or discounted haircuts.

The services that is provided at the D's Corner Unisex Salon.

1830 Plymouth Road, Detroit 4828.

Telephone number to call for appointments and questions is 1313, 228, 632.

They have a website.

It's Gifted Hands, Incentif.org.

This program is called the Gifted Hands Community Hair Cut Program.

Uh, they have free Sundays for youth.

You must be age two to thirteen from time 12 to 4.

For seniors, you must be 62 plus, and it's free Tuesdays from 10 a.m.

to 2 p.m.

For veterans on Wednesdays with violet ID, it's 50% off all day.

Again, it's at D's Corner, Unisex Salon 1830, Plymouth Road, Detroit 4828 for appointments and questions.

Call one three one three two two eight six three two zero.

Thank you for this time.

God bless.

Thank you.

The next caller.

Our last caller is Ralph, noting there was one hand raised after you cut off public comment.

Ralph, you have one minute 30 seconds for general public comment.

Good morning, Ralph.

Are you there?

Yes, I am, ma'am.

And thank you for allowing me to be able to speak.

I'm here with roughly a half dozen residents of 24247 mile.

We received notification in the mail regarding reclassification and rezoning to accommodate over a hundred new construction in the area.

We have not received any information explaining just what is the status of this plan or any of the details.

Does that conclude your general public comment?

Well, I I can't comment on anything.

I don't know.

I'm just saying we've received no information.

Is there will this meeting allow that information to be disseminated to us?

Uh will we get information pertaining to this redevelopment of the building in which we are in, reclassification of zoning in and around the area in which we live because we have not received any information.

So I'm asking uh as I received notification to report at this meeting today.

I received them.

Yes, ma'am.

Thank you so much for responding to that notification.

There are so many times when people receive those and they actually don't respond.

So we appreciate that.

Um the 1015 public hearing is in fact to um address the uh question that you're calling in about.

And so I hope you have the ability to stay on.

You are our final public caller, uh, public commenter, and so we are going to move into that discussion very shortly.

I hope you are able to stay on, and then you will have an opportunity to make a comment after you hear the presentation regarding the notification that you receive.

All right.

Uh so that now concludes our general public comment.

And I'd like to call back to order the 1015 public hearing.

And Dr.

Bolger, please feel free to join us at the table.

The 1015 public hearing is to amend Chapter 50 of the 2019 Detroit City Code Zoning Article 17, zoning district maps by amending section 50 173, district map number 71 to revise the zoning classifications for the properties, commonly known as 2040 telegraph, 19254 through 1953 Woodbine, even numbers only.

19261 through 1951 Woodbine, odd numbers only.

24224-24270 and 24290 West 7 Mile Road, 19225 Woodbine, 19141, 19160, and 19191 Winston, 1912, 1914, and 19180, Grandview, 24620, West 7 Mile Road, 19185, Lenore 1900 Fenton, 19301, Shiawasi, 19255, Shiawasi, 1913 and 19220 Appleton, 1914 and 19173 Berg, 19800 Telegraph, and 245 24540 and 24570 Shiawasi from a combination of the existing B2 Local Business and Residential District and PD Plan Development District Zoning Classifications to a combination of the R1 single family residential district, R2, two family residential district, R3, Low Density Residential District, and R5, medium density residential district zoning classifications, and to repeal any regulations for development of the existing PD zoning districts or portions thereof subject to such revisions.

And we do have Dr.

Bolger here to share a little bit more information about the zoning request, the rezoning request, and um hopefully we'll be able to speak to any questions that we receive as well.

Dr.

Bulger.

Good morning, Council members.

Good morning.

I was just going to ask whether I could share my screen.

I'm seeing that the most recent update to the software seems not to be giving me that option, but there I have copies of a PowerPoint that I'm glad to share with council members, so we can follow along.

But as was mentioned, this is a um a charter mandated public hearing.

Okay, looks like I'm being promoted, so that may help.

This is a public hearing relative to the rezoning of multiple sites.

In far northwest Detroit, in council district number one, it relates to what the zoning ordinance identifies as map number 71.

The zoning uh the city of Detroit is divided into 78 different zoning district areas, and map number 71 is the farthest northwest district zoning district in the city.

Um all of the properties that we're looking at today are currently zoned in the Plan Development P D zoning district classification, and they're proposed to be rezoned to a variety of zoning classifications.

Um R1, single family residential, R2, two-family residential, R three low density residential, and R five medium density residential.

Um these PDs that we see today are the result of 11 different ordinances that had been passed over the years.

Nine of them were adopted during the mayoralty of Louis Mariani and Jerome Kavanaugh at a time before the state had authorized planned development districts to exist.

And at that time, nine locations were changed from R1 single family residential to RMA zoning classification for residential multiple with approval.

And then in 2004, there were 81 lots that were rezoned for a Home Depot development that never came about on the west side of telegraph south of Frisbee, north of West Seven Mile.

And in 2009, there was a PD that was established on a portion of the old Bonnie Brook Gulf Course for an extended stay hotel.

That hotel development never never took place.

And some of them are appropriate.

Development proceeded as authorized, like the shopping center did at the northwest corner of Seven Mile and Telegraph on the former Topinka site.

Some never got off the ground, such as that Home Depot on Telegraph.

And then some of them, nine of those, were established before 1968, and they lack the basic elements that are currently required for a PD, namely an approved site plan and a development plan that identifies permissible uses for the subject land.

When we look at the nine locations of the nine ordinances that had rezoned land to RMA, what we see today are townhouses and apartment buildings, suitable developments for the area.

When the law department noticed the amount of PDs that there are calls, so you should be able to share this one.

Oh okay.

And we set about to fix them.

This is the latest in the PD project that we are bringing to City Council.

And on April 3rd of last year, we met in the community over at the Wayne County Community College Northwest Campus to review these various these various rezonings that were being proposed.

There were some questions raised about the PD that was established for the Home Depot area.

And there were some questions raised about the Bonnie Brook Gulf Course.

So at this point, after the April 3rd public hearing, the Planning Commission met on May 1st and recommended approval of the rezonings.

So of the nine RMAPDs, the ones that were established between 1957 and 1963, eight of those are proposed to be rezoned to R3, which is a lower density residential zoning classification.

One is proposed to be rezoned to R5, and that would be the PD that's located closest to West 8 Mile Road.

And that that's to be more consistent with the master plan of the master plan of policies for the City of Detroit.

The PD that was created in 2004 for the Home Depot site, which consists of 81 different lots, it's proposed to be rezoned to R2.

And the PD that was created in 2009 on a portion of Bonnetbrook Golf Course is proposed to be rezoned back to R1, a single family residential district.

And this is as at the request of the owner of the property.

We're looking to consolidate the zoning classification on that with seven mile property, which consists of two separate apartment complexes and a non-residential building, and that would be rezoned to R3.

There is no none of these rezonings come along with any sort of city proposal for redevelopment.

All it does is to allow a fresh menu of land uses that would be permissible.

And in the R3 zoning classification, such as would be allowed on West Seven Mile, it would allow for not only single and two family houses, but also for multiple family dwellings and townhouses, in addition to certain public, civic and institutional uses, such as child care centers and other uses like that.

That concludes my presentation, and if there are any questions, I'd be glad to address those.

All right.

Thank you so much, Dr.

Bulger.

If you can just indicate if all of these parcels are publicly owned.

Madam Chair, no, the um the parcels are privately owned.

There are some that are in particular in the area of the Home Depot, the failed Home Depot site.

Um a number of the vacant lots there, of the 81 lots, um, some 70 of them have houses on them that are privately owned.

Some of the vacant lots in the area may be land bank, some may be city of Detroit.

Um, but they're they are um largely privately owned properties.

And we've provided notification to the owners of the parcels for them to know about the rezoning.

That's correct.

The clerk sent out some 2,000 notices of this public hearing because of the number of different sites on both sides of on both sides of Telegraph Road.

Um we notified not only the the owners and the occupants of the properties that are to be rezoned, but also neighbors within 300 feet.

And um all of the rezoning is preparing for, but there is no necessarily uh no project within these parcels that is online that is requesting this rezoning.

That's correct.

Unlike many other planned developments that come before council, someone has a particular idea for which they need flexibility, um, and that plan development is then able to proceed based on the applicant's development plan and subject to site plan and elevations that you have approved.

That is not the case here.

We're basically trying to fix something that is overdue for correction.

Okay.

Thank you.

Pro Tim Young.

Yes, uh, thank you.

Uh excellent presentation as always, sir.

Appreciate you.

Uh, I just wanted to ask you just really quickly.

It seems like what this is is more just like a correction uh legally.

It seems that the law department requested that this be done for the purposes of the city being in compliance with the law.

And it seems that you have you know, um gone along with that request, and now you're submitting this for correction, you know.

As um the chairwoman in her um uh wisdom just pointed out, there are no economic plans that we have for this, even though I noticed that the majority of these are reverted back for housing.

I think one that's because illegal I think also is because the plans that they did have, you know, fell through most of them.

Some can't see what most one towards the whole depot, and I won't think it was an in or hotel, those fell through.

So we're reverting back to housing.

Now there could be a plan over time to be able to have more housing, which is a crisis in the city of Detroit.

But from I just I mean, you know, just just for my um reiteration, there are no proposed plans at this time for that land.

This is just resulted back because of the law, right?

That is correct.

Okay.

That's it.

Thank you.

All right, thank you.

We will now call for a public comment regarding the public hearing.

If you'd like to make a public comment regarding the 1015 public hearing that was just discussed, please raise your hand.

Please raise your hand, whether in person or virtually going once, going twice, going three times.

The collection of public comment has concluded.

We do have one hand in the committee of the whole.

Ms.

Gray, how many hands do we have raised virtually?

Madam Chair, we have six hands raised for virtual public comment.

All right.

Let's give everyone one minute, 30 seconds for a public comment, and we'll start first with Mr.

Foster, who's here in the committee of the whole good morning through the chair.

First, I think he um gave a good presentation.

He answered a lot of questions that I had as far as how many other zoning issues are in the city and where they stand as that goes.

But I think that is important uh not to overlook the failures, right?

But to identify why those businesses entities failed in the first place.

Is this something that was not desired in that community?

Is it something that was not uh fashionable to bring business there?

What were the reasons of the failures there?

And then also how much time do the city um put into those investments and developments for them to fail.

So we have to do a little bit of management, better management with uh resources and and time in these processes.

I know a lot of times they take a year or two.

That's a lot of time to have interactions, meetings and everything else for them to fail, and it lacks a lot of real foresight, and I believe um true community engagement.

It's not enough for people to have money to come in our communities and say this is where we want to put things, and this is what we want to do.

We have to really have a deep dive into environments, whether or not they're profitable or not for certain zonings and different things, and really understand uh in totality the failures and cost analysis of those failures.

Thank you.

Thank you.

We will now turn to our virtual callers.

Who do we have first?

Our first caller is our solar farms really safe in residential neighborhoods.

If we can please reset the clock and we'll get started with the caller.

Good morning, Miss Warwick.

Are you there?

Our next caller is caller ending in 534.

Caller ending in 534.

You have one minute, 30 seconds for public comment regarding the public hearing.

Good morning.

May I be heard?

Good morning, yes.

Yeah, I'm sorry, I'm multitasking.

I can't get back to the other screen.

Um, there's sometimes a problem in notifying people about stuff like the brown field doesn't really notify people uh before hearings.

Um, there's sometimes a problem in notifying people about stuff like the brown field doesn't really notify people uh before hearings, and the community outreach ordinances because of me, because I asked Brenda Jones to have a standard procedure about community engagement, and then the administration said you can't tell us what to do, and they came up with a community outreach ordinance, which really doesn't address the problem.

And uh, yeah, you know, a lot of people don't even know how to call into meetings.

I spent an hour the other day trying to explain to a senior citizen how to call into a meeting.

So in your evening community meetings, you should do that.

That's why maybe there are not more people here, because they may have gotten a notice, but they don't even know how to call in.

So uh I think it's incumbent on council to make sure that people know how to participate in government.

Uh, thank you so much.

Thank you.

The next caller.

Our next caller is Owner Papa.

Owner Papa, you have one minute 30 seconds for public comment regarding the public hearing.

Uh good morning, and to the chair, may I be heard?

Good morning, yes.

Did this incident come out of um uh a ruling from the state of Michigan when three parks were illegally taken, one of them being a park in uh Midtown and uh two other parks were taken, and they were purchased with federal dollars, and um the last administration and um council voted to have these parks converted to some type of housing or something other than what it was supposed to be for, and the regulation came from the state that you had to create more parkland.

Mr.

Bulger should understand what I'm saying.

Um Dr.

Bulger, this this just came out of a ruling from the state of Michigan that um forced the city of Detroit to create uh more park land, and this is the reason why this whole thing off telegraph came about.

Um, can you explain to me what this is going to cost the citizens and the city of Detroit and uh what do what are they going to do with the private owners of the homes uh currently?

Uh thank you.

Thank you.

The next caller.

Our next caller is Tyson Gersh.

Thanks, can you hear me?

Yes, we can.

Great.

Um, so I mean, I'm just kind of glancing at the attachments for this.

Um, and as far as I can tell.

Yeah, it looks like you guys did everything right.

Um, and correct me if I'm wrong here, but there isn't a current plan.

Um, you're just reverting it back to what it was before because the plan that the original zoning amendment text amendments, um the reason they did it previously fell through, and so they're converting it back.

Uh maybe I misunderstood, but I guess the larger point I want to make here isn't it incredible that the city and its departments and the law department absolutely know how to do their job and follow the rules correctly when a matter is not disputed, but when they know something is controversial, everything falls through the cracks, and all of a sudden everybody's incompetent and doesn't understand the rules.

I mean, Northern Landing never actually got a master plan confirmation letter because it absolutely cannot be interpreted to conform to the master plan, um, which is the first criterion to give a BZA uh variance approval.

Um, they one was never created for 202 Smith Street, and then the other ones are all filled with typos to give the appearance of far fewer units than are actually proposed.

And you know, it's just funny, right?

Like this is why people get mad because everybody does know what the right thank you.

The next caller.

Our next caller is legendary Detroiter.

Legendary Detroiter, you have one minute 30 seconds for public comment regarding the 1015 public hearing.

Yeah, it's ironic that is uh public hearing is about uh zoning matters and uh classifications over in District One, that's over where this is uh taking place over off telegraph.

Now, the irony about this is that we got you guys holding a hearing and then passing it on to the others to be voted on and either approved or not approved, and oh y'all, every last one of y'all.

Detroit City Council members on the 2026 Detroit City Council have been cheated in by cheated in city clerk who cheats herself in six times in a row.

Now, the irony about it, the zoning matters is because all across the city of Detroit, the same exact thing is unfolding.

And it's part of the plan, that's the 30-year plan to turn Detroit into a non-majority back black city on an international border, done by you crooked politicians and political figures in the city of Detroit.

That's my comment.

I had nothing to do with the public hearing.

Thank you.

The next caller.

Madam Chair, our last caller is Ralph.

Ralph, you have one minute 30 seconds for a public comment regarding the public hearing.

Thank you for staying on.

Yes, ma'am.

Um, Madam Chair, again, I uh honor and respect the chair for giving us an opportunity to at least inquire as to the information that was sent out.

And I thank you that you and the fellow, your other fellow Congress council persons have given us clarity that this is just a zoning correction.

I will like to say though, as residents representing as a spokesman of a half dozen folks here that live at 2424 West Seven Mile.

We were excited about the prospects of some potential planning development in this area because the options over here are scarce.

And quite frankly, um I would obviously speak on behalf of these half a dozen residents.

We are extremely underserved at that building.

The management uh very negligent uh at best.

And and so we would urge the council to at least consider finding developers for this area because we think our demand is the man generally of the area that there are a lot of people who are underserved in terms of housing.

There's a lot of mental illness in the area, and there's a lot of homelessness.

We have people that are sleeping in our parking lot.

And I'm talking about young ladies with children.

So we would urge the council to look for developers to find those options so that people can live a more wholesome quality of life.

And we thank you for the time and opportunity input, and thank you for the clarifications.

Thank you.

And we appreciate you standing on the call.

We will certainly share your sentiments with your council members and ask for them to um follow up with you and address the concerns that you have raised.

Thank you again.

Are we returning to a caller?

Oh no, it was Miss Warwick twice.

Yes, Madam Chair, it was also Miss Morway.

Okay.

All right, thank you.

That now concludes public comment.

And Dr.

Bolger, I'm not sure if you jotted down any uh questions that are pertinent to you.

I do have a couple, but if you'd like to um respond to any that you heard.

Yes, thank you, madam chair.

None of the properties which are proposed to be rezoned have the kinds of strings attached to them as would some parkland in the city of Detroit that may have been gifted to the city from other sources.

Um there is no parkland involved with this.

Um, and as indicated, um, generally we're just looking at uh lots which are owned by private individuals.

Um with respect to cost that may accrue to homeowners or to property owners, um, this would be neutral.

It comes with no expense to the to the property owner.

Um key thing in terms of owners of houses, particularly in the area where the uh on the 81 lots that had been proposed for the Home Depot, the the current PD actually prevents a homeowner if they wanted to um extend their property, if they wanted to expand the house or you know, do some additional construction.

Um, the current zoning prohibits that um so what this would do is return a zoning classification to uh a category that allows individual homeowners more flexibility in how they may want to uh treat their land or develop their land.

We're glad to show those on the on the PowerPoint if if needed.

Thank you.

Um Director Todd, did you have something good morning, madam chair?

Just wanted to indicate consistent with Dr.

Boj's remark.

I have the PowerPoint and I have the ability to share.

Uh if I can be given permission, should you like just so that we could display that map?

The um only item I wanted to touch upon what is what uh Mr.

Foster asked about, and I'm not sure that you all um have uh historical information from these times.

Uh he did inquire about businesses failing to open um and wondering if there was any city investment into those projects.

The the two failed situations that were looking about the Home Depot and then the proposed extended stay hotel um at the Bonnie at a portion of the Bonnie Brook, of course, not aware of um city considerations that have been extended in those instances.

Um 2004 is long enough ago.

I'm not I'm I'm not real fresh on what may have been involved with with that, but I believe it was just a a deal between the company which wanted to develop and individual property owners.

Okay, all right.

Thank you for that.

Pro Tim Young, any additional questions?

Seeing none.

Is there a motion on the 1015 public hearing?

Motion is there a motion to send the 1015 public hearing to formal with the recommendation to approve.

Motion to send a 1015 public hearing to formal session with recognition to approve.

Hearing no objections, that action shall be taken.

Thank you so much.

Thank you, Madam Chair.

This now closes out the 1015 public hearing, and I'd like to call back to order the 1020 public hearing.

The 1020 public hearing is the establishment of a neighborhood enterprise zone as requested by Stockbridge Renaissance LLC in the area of 590, East Jefferson, in accordance with public act 147 of 1992.

And we have should have Mr.

David Howe as well as Justice Cook, who's joining Attorney Barclay.

Attorney Barclay, we see you on the screen.

Please introduce yourself for the record.

Thank you.

And Miss Great, do we have the other panelists?

Madam Chair, I promoted David Howell.

Um, and I'm promoting Justice Cook now.

Thank you.

When you see yourself on the screen, please introduce yourself for the record.

Justice Cook Housing and Ravenization Department.

Good morning.

Good morning, David Howell, uh Detroit Economic Growth Court.

Good morning.

I don't show that anyone else is joining us.

There are uh a number of individuals, madam chair from the development team, they should be uh raising their hands uh at this point.

Thank you, and Ms.

Greet will promote them as panelists as they raise their hand.

Thank you, madam chair.

Thank you.

I should be on this thing, all right.

We'll take a brief pause and allow them to uh join us as panelists.

Thank you, madam chair.

21%.

I've been notified by the consultant that uh the development team is uh raising their hand and the the the chairwoman stepped out.

Uh she'll be back in a little bit, so okay you just hang tight.

Thank you, Pro Tem.

No problem.

We'll just have a brief recess.

Can I can I can I can I do that?

Okay.

But since you're back, it was just a pause.

Okay, it was pause, huh?

Yeah.

All right, we are now back, and thank you all so much for joining us.

If you will individually please introduce yourselves for the record anyway, okay.

Sorry, um, this is Christine Rader.

I'm sorry.

Um, thank you so much uh for having us this morning.

I am with Miller Johnson Growth Advisors, and I'm gonna hand it off to John.

Good morning.

My name is John Marusi, Maristic Architecture.

I'm the architect for the project.

Morning.

Dr.

Al Hadidi.

Good morning.

I'm Mahmoud Al-Hadidi.

Um the CEO of Stockbridge Enterprises.

Morning.

Jeremy.

I am Jeremy Sparks.

I'm the general manager for Stockbridge Enterprises.

Morning.

Catherine.

Hi, I'm Catherine Samperi.

I'm with North American Construction Enterprises.

Um, myself and Mike, who's just come on, um, are working on the general contractor side.

And Jared Good morning, Jared Boots, also with uh Miller Johnson Growth Advisors.

Appreciate the time today.

Good morning.

Thank you all for joining us.

Who would like to get us started?

I will to the chair.

To the chair, Stockbird's Renaissance LLC is requesting that establishment of a neighborhood enterprise zone in the area of 590 East Jefferson.

The governing body of a local governmental unit by resolution may designate one or more neighborhood enterprise zone within that local governmental unit.

Upon the creation of a zone, the applicant will receive the certificate as a matter of right and shall not be required to participate in the public hearing.

The Detroit Economic Growth Corporation is present to present a presentation.

Thank you very much.

Thank you.

Thank you, Justice.

Madam Chair, may I share my screen, please?

Yes.

Can you see my screen okay?

We can see your screen.

If you can put it in presentation mode, that would be even better.

Yes, ma'am.

Madam Chair, uh, if I may, uh we have uh obviously one presentation uh and two consecutive uh hearings.

The first obviously being uh the NEZ and the second being the Oprah.

So um if uh it's if it's okay with you, we'd like to just do one comprehensive presentation, and then at the end of the my presentation, I'll talk about the uh incentive requested uh for this hearing and then the subsequent hearing I could talk about the Oprah.

Uh just in we thought just in the interest of time, I know it's a remote robust schedule today.

Sounds good.

Okay, thank you.

Um Mr.

Howe, one moment, please.

Yeah, super quick.

I just want to add, I don't think we could do this, but we can't we can't take up the 1020 and the 1025 presentation at the same time.

We gotta do them.

Okay, I just want to make sure because if we were gonna have the presentation, I'll like, well, let's take them both up at the same time.

All right, thank you.

You so uh we are here to uh day to talk about an exciting adaptive reuse uh project.

It is the redept adaptive reuse of the 600 tower of the Renaissance Center.

Um again, the developer is Stockbridge uh Enterprises, and the principal is Dr.

Al Hadidi.

Um Stockbridge is proposing a $65 million uh renovation of Tower 600.

Um the hard cost is estimated to be 45 million dollars.

Uh we uh uh uh anticipate about a hundred uh new full-time equivalent jobs, 150 construction jobs, and madam chair, over the life of the incentive, uh we are uh projecting a 4.27 million dollar net fiscal benefit to the city.

Uh the project details are as follows.

Um we're uh the developer is uh proposing 86 rental units, of which uh 18 will be affordable, which is 21%, uh, between 60% and 80% AMI.

Uh also a 200 room uh global brand, mid-tier upper select service hotel.

Um unfortunately we're under NDA right now and can't uh disclose the actual flag, but it is a global brand uh that I think we will all be proud of.

Uh in addition to the rental units and uh 200 room hotel, um, the developer is proposing 40,000 square feet of commercial and retail, uh, which will encompass a full service restaurant, uh, some existing office and supporting retail.

Lastly, uh there will be uh six for sale uh condominiums.

Um again, uh overall there's a 140 uh PA 146 Oprah request, which is the next hearing, just for the hotel and commercial uh retail spaces.

Uh and then uh this hearing obviously is a one uh PA147 NEZ uh just for the uh actual condominium units and uh and uh rental units.

Here are some uh project images uh of the uh the the top uh images are from the apartments, uh lower uh left hand uh of your screen uh is an image of the uh hotel rooms, and then the the right lower uh image is of the uh lobby.

Just want to give you some uh a preview or uh explain to you uh the revenue side uh of the project.

Uh again, uh 86 rental units, uh studios, one bedrooms, and two bedrooms, and see the square footage is at 500 square feet for the studio, uh 743 square feet for the one bedrooms, uh, and just uh a little uh over 1,300 square feet for the two bedrooms.

Can see the uh unit breakout uh with respect to the affordable units at 60% AMI and 80% AMI, uh, as well as the rents uh for each.

And you'll note that uh the uh affordable units are overweighted in the ones and twos, uh, which um you know we worked with the developer to ensure uh that the affordable units wouldn't be overweight overweighted uh in studios.

The market rate rents are to your far right, which are uh very reasonable.

Um the commercial square uh the commercial space, uh the projected rents are at $30 a square foot uh with uh $7 a square foot and common area maintenance charges.

The uh hotel or or the project uh includes 240 uh underground uh parking spaces.

Um the uh market rate, apartment rents uh or uh rates for parking spaces are projected to be about 200 a space.

Um the uh market rate, apartment rents uh or uh rates for parking spaces are projected to be about two hundred dollars a space, and the monthly rates for the affordable units at 60 and 80% uh AMI will be sixty dollars a month, and then the hotel valet uh overnight rate is uh will be fifty dollars a car.

The condominium pricing is uh projected to be uh uh about five hundred and sixteen dollars a square foot at just north of twenty three hundred square feet, uh, and you've got a uh a projected asking price of about one point two million.

That's like to uh turn your attention to uh the uh supply this this slide details the supply capacity analysis of the hotel market.

Right now, uh there are approximately sixty, five hundred rooms uh in the greater downtown area um either planned or under construction.

Uh in our pipeline, DGC's pipeline, we have uh 1,767 uh rooms.

Um so that would take after those are completed, that would take us to about 8200 uh rooms, and given uh the target baseline between 10,000 uh and 12,000 rooms, um, we've got about a 1700 to 3700 room uh gap in the market.

That 10 to 12,000 uh targeted rooms will uh keep us on par with competing cities.

Um industry convention and hospitality consultants routinely assess convention competitiveness based on the concentration of hotel rooms near a convention center.

Uh peer convention destinations such as Nashville, Indianapolis, Columbus, Minneapolis, and San Antonio have invested heavily in hotel inventory close to convention sites to support tourism, business travel, and major events.

Even after considering Detroit's current pipeline of approximately $1,700 rooms, greater downtown would still fall short of many peer convention markets.

So this proposed hotel therefore should be viewed as part of a broader strategy to strengthen our convention tourism and visitor uh economy.

Um I mentioned the 1,767 uh uh rooms in our pipeline.

This slide details those uh obviously we all know that the JW Marriott is under construction and will be open next year.

Um there's a uh uh hotel at uh the train station uh Ford Motor Company uh is developing Bedrocks Hotel, the Detroit Edition, uh Little Caesars uh Hotel, uh the Fox uh both uh developed by Olympia, and there's a boutique hotel uh right uh adjacent to Paradise Valley that's under construction by method development, and then Roxberry and the Walters Group are developing uh the uh redevelopment of an uh existing vacant building uh into a hotel.

The competing properties uh or hotels for this particular asset uh are detailed here.

You've got the Hilton Garden Courtyard element, uh, the double tree, which uh you all heard uh last week, and I think it's a bring back this week, uh, the Holiday and Express and the obviously this proposed hotel.

So you can see the ADRs uh and um the uh year bill.

So one of the uh reasons why uh we're so bullish on the hospitality market is uh in addition to uh providing rooms that will allow us to be more competitive on a national basis.

There are actually economic development drivers.

Uh and we've taken some data from uh H uh HVS proposed uh hotel uh impact study and determine that this particular uh proposed hotel would generate nearly 200 million dollars in local spending over the life of the incentives.

Like to uh talk about the BUT for analysis.

Um, you know, clearly uh our the core of uh our review and analysis process is the but for analysis, and it answers the question: could the project happen without incentives?

Um and then subsequent slides will show you that the project would not be able to receive financing without the incentives, nor would it be worth investing in.

Two key metrics out of the five uh that we look at our debt service coverage ratio, uh, which is the ability for the developer to pay its mortgage payments after accounting for revenues and expenditures, uh, and uh allowing for a reasonable uh return on investment.

The middle column uh shows the debt service coverage ratio without the incentives and the returns without the incentives.

Uh the column to the far right shows the debt coverage, uh debt service coverage ratio with the incentives and the return with the incentives.

Uh when you compare them uh uh the returns to our benchmarks, they do not exceed them.

Um there's adequate uh debt coverage ratio, which allows the developer to secure financing uh and achieve a reasonable uh rate of return on their equity.

The existing property taxes are uh that the developer is paying are 471 uh thousand.

Uh the improved property taxes with the incentives uh would increase modestly to 481,000 uh and uh uh the taxes uh without the incentives and the improvements or with the improvements would be nearly 1.7 million dollars.

So why this hotel and is it appropriately priced?

Um with respect to uh the average daily rate, uh, which is the rate that uh patrons pay to stay in a room.

Um hotels with waterfront views consistently command higher ADRs uh and um the uh hotels typically uh that are in close proximity to convention centers uh outperform similar hotels located further away and therefore uh usually charge a little bit more.

Um this hotel is a limited uh select service uh uh hotel.

Most of the hotels uh in the CBD are luxury boutique and full service.

So this hotel is is uh uh addressing uh a segment of the market that uh is underrepresented in rooms.

Uh newly constructed uh hotel rooms uh typically charge a little bit more uh due to modern design and updated amenities.

And again, uh we like hotels because they're uh uh they facilitate job opportunities, economic spinoff for downtown businesses and uh tax room uh tax revenue.

I will add, uh, Madam Chair, uh, that the developer uh has made the commitment to use uh unionized uh labor with respect to the improvements of the asset as well as uh operationally uh with the employees of the hotel.

Um we've also had uh meetings with uh Detroit at Works and the developer has established a great relationship with that uh city agency to uh help uh locate uh Detroiters uh for these jobs.

The assessor wrote a letter confirming that this project meets the eligibility requirements for the neighborhood enterprise zone.

And the request before you today is exclusively for a district.

It's important to note that the district itself does not establish a tax exemption.

The NEZ benefit will be conferred upon the purchasers of the condominiums.

And based on our assessment, DGC advocates for the creation of a district to assist condominium condominium buyers by assisting and mitigating the substantial property tax burden.

And of course, to enhance the marketability of the condominiums.

So with that said, I'd like to turn the presentation over to Christine and the development group.

Thank you, David.

Appreciate it.

Good morning again.

I'm Christine Rader, as I mentioned, I'm with Miller Johnson Growth Advisors, and we've been working with this development team for several months and the DEGC and the city to bring it before you this morning.

Stockbridge as an organization has been investing in properties for 30 years.

They have properties throughout the United States with a very high concentration here in Michigan.

They are local investors.

And this project is something that it's their first foray into a project here in Detroit.

But it is something that is really important to them, and they are very proud to have this building under their ownership and are excited to see it renovated into for it for its next chapter.

So you can see here they have investments throughout the United States and they've got several shopping centers and other properties.

Next slide, David.

John is here on the call.

He's worked with Wayne State in the past as a as a professor and is still someone that works closely with the university and their um their architecture program.

And I believe that he at one point did have his office here in the city of Detroit before that building had been, I think, purchased and renovated.

So he's very familiar with Detroit and the buildings here.

They are a veteran-known business here in Metro Detroit that has done several projects here in the city as well as the metro area and the airport, the Weston Hotel in particular out there, as well as additional current projects.

They also renovated the courthouse here in Detroit, that the federal courthouse, and they've done uh plenty of work uh in school districts around Metro Detroit, as well as hotel properties, um, not just uh in in Michigan, but also in the Caribbean, and their specialty is really um adaptive reuse and renovations.

Um and the properties they've done in the hotel space, as I have here range from uh Fairfield Inns to Fairmont properties.

So they've done um, you know, the the side, you know, the the interstate where you've got Fairfield Inns and others that are um are for travelers running through, and then um high-end properties like the Fairmont.

Um so they have an extensive uh experience and housing as well as real estate um in the hotel space.

Next.

Um, as David mentioned, the parking plan is um we believe very sufficient for this for this building.

Um, as mentioned, there will be tenant spaces for the affordable units um at $60 a month, um, as well as the um general tenant spaces at $200 a month.

Um, and those line up with other competitive um tenant spaces um in the central business district.

Um there's also the uh the parking in the front of the building along Jefferson, as well as additional spaces within the garage that will be used for visitors to the residents as well as the hotel.

Um, and then there the developer does have an option for additional surface lot parking nearby, should it be needed.

But at this time, we do believe that the spaces provided will be sufficient, knowing that many hotel guests will come if they're flying in for conventions at the conference center.

Perhaps they'll be taking public transit or an Uber or Lyft to get to the property, and they won't need to park a car overnight.

So we do believe that this is going to be sufficient for the parking needs of the site.

Next slide.

The adaptive reuse of this building, as you know, this building was built several decades ago to be a commercial office building.

The development team, while when the you know they purchased the building over a year ago to have it maintain as an office building was an option.

They believe that this adaptive reuse of the building is going to make it a far a far more positive chapter for the building going forward.

With that, they are very committed to accessibility and universal design being incorporated into the renovation as they go forward.

You can see here in front of you many of the different elements that they're looking to bring into the building for those residential properties as well as the areas that are common throughout the space.

But it's it's truly a very important part of what they want to see in the building.

They've got three accessible type A units that are part of the plan today, and then the rest of the units will be designed to be adaptable as type as type B units today, but they will be adaptable as well.

Certainly other elements like perhaps not perhaps, but putting in the reinforced walls as they renovate the building for future grab bars or other things that will be needed as people age in place in the in the building.

And then also identifying the clear door openings and the ability for people, if you're in a wheelchair disabled, you've got clear radius turns in kitchens and other other parts of the apartments.

So we are extremely dedicated to this as a development team.

The architect has this incorporated into the designs and happy to answer any questions as we go forward on this.

Next slide.

Sustainability is also a really important part of this project.

This project is going to take a building, again, that's been historically used as an office building and convert it into residential space and a hotel, restaurant, bakery, and maintaining some of the office space that they have there today.

But this is a really high priority to be able to take the types of efforts that are available today that weren't available in the 70s when the building was being constructed.

So you see here some of the renovation plans of what they're looking to do as far as energy, water, the materials they're going to be using, as well as the overall sustainability of the site.

You're going to see the existing boiler system maintained, but they're going to enhance it to today's efficiencies.

And then the construction plan will be looking to use to use as many recycled products as possible.

Of course, low VOC paints, and of course, they will be looking to use all of the items that are in the building today and create the recycling plan and be sure that as much of that waste is going to be recycled and not put into a landfill.

And then, of course, with the riverfront right there and downtown is you know as part of this the neighborhood where this building is, making this design very walkable and bikeable.

So they're planning to be sure that that's part of this plan going forward as well.

As David mentioned, we have met with Terry Weems at Detroit at work several times, talking not just about the construction jobs, but also the jobs that'll be there going forward with the hotel and building maintenance and the restaurant and whatever else they potentially bring in.

We're very excited the relationships that the general contract has with the union labor here in the city of Detroit.

Many of the uh union trades have already been contacted about this project potentially coming to them to be able to bid on.

So we're really excited to provide opportunities for Detroiters through Detroit at work as well as through the relationships that the general contractor and the developer have locally here.

We are planning to, as the project goes forward, uh, once the hotel, once they're ready to start hiring for hotel uh workers, that'll be something that they'll be looking to work with the existing um labor unions in the town.

Um, and actually the building today um has um has labor um labor unions represented uh with the maintenance and and the other uh uh positions within the building.

Um so this is something we're excited to do.

Uh we know that getting Detroiters to work in this building is going to be a high priority, and um, and they're going to be looking to work with Detroit at work for training programs and other pipelines uh to find those workers.

Umgagement's also been very important part of this process, getting to know uh, as I mentioned, this is the developer's first foray into a project here in the city of Detroit.

Um so we have been very intentional on our outreach to different organizations in the community.

Um we have uh through the um through through the this engagement process, we have met with um organizations like uh you know, Downtown Detroit Partnership, uh visit Detroit, um, as well as the um Detroit um the Riverfront uh Rivertown Detroit Association.

Um we've also met with local residents on the Near East Side.

Um we have met with um Houses of Worship, um, and we have letters of support from several of these uh several of these organizations we met with.

We also um have met with Bedrock, knowing that um they will uh they're they have a significant interest in the the property next door.

Um so at this point, the feedback that we've gotten on the plan that we have before you um has been extremely positive, looking to take this tower from a commercial office building into something that will be more active, provide affordable housing in the downtown as well as uh a new hotel that people can uh can again attract, attract the conventions, but also people can have their loved ones stay there when they're coming in to visit.

Um so overall, we've had very um very positive feedback through our outreach.

Um we're actually going to be hosting a meeting of the uh Rivertown Detroit Association members um later this month so that they can um get to know the development team better and get to know the property and the plans better.

Um but so far um we've had extremely positive feedback um locally.

And I think David, that is it for my part of the presentation.

Thank you.

Yes, thank you, Christine.

Uh excellent.

Uh Madam Chair, uh again, we're really excited about the adaptive reuse uh of this building.

Uh we have uh spoken before about you know adapt adaptive reuse of of underutilized assets, particularly in downtown.

And um again, we're very excited about it.

We're excited about the hotel, particularly given its uh market segment uh and the uh again the um the economic uh uh ancillary benefits of of the hotel rooms.

So uh with that said, uh that concludes our portion of the presentation.

And I believe uh I madam chair, if it's okay with you, I believe I turn it over to Ms.

Barclay.

Thank you.

Good morning.

Um you have before you stock branch Renaissance LLC, um the project developers for the property located at 590 East Jefferson, commonly known as 600 Renaissance Center.

This tower was purchased by the developer in April of 2025 and is functional, a functionally vacant office building.

Um it is 500 and 505 um thousand square feet, which was built in 1980 and sits on a 1.2-acre parcel in the city's central business district.

Since the COVID-19 world health pandemic, the demand for office space has diminished greatly.

As such, the property owner has created redevelopment plans that repurposes the building for residential and hotel use.

The nuke reconfiguration will include a 200 room hotel, 92 um residential um units and a small amount of office space to accommodate the building's existing tenants.

The developer will utilize a number of tax abatements and incentives to undertake this project.

One a PA 146 obsolete property rehabilitation district for floors one through 13, which includes the hotel, the office space, and other retail space ancillary to the hotel, which includes a restaurant.

A PA 147 NEZ for the apartments and condom condominiums which are housed on floors 14 through 21.

And additionally, a broadfield plan and tax increment financing will be sought to further support this project.

The proposed NEZ district require includes the creation of 92 residential units, which consist of 86 apartments and six condos.

The redevelopment of the floors 14 through 21 will yield approximately 102,000 square feet of residential leasable space and 25,000 square feet of common areas.

The 20% or 18 units of the apartments will be designated as affordable units.

That includes units such as studios, which be six 16 units and four of them will be affordable.

One beer rooms, there will be 32 units and six will be affordable, and the two bedrooms will include 38 units and eight of those will be affordable.

The reconfiguration of this space will require major rehabilitation and renovation, which includes facade rehabilitation, hazardous material abatement, new roof and windows, all major plumbing, mechanical and electrical systems, parking lot improvements, and mill work.

The investment of this property project is estimated as 64.7 million.

The abatement is projected, the abatements combined will be worth a tax savings of 5.2 million dollars for the developer.

The estimated investment and new residents are projected to produce a positive cost benefit for the city of Detroit of 4.27 million dollars and a total of 8.2 million for all the impacted taxing units combined.

In addition to the creation of 150 construction jobs, 39 FTE positions, which include 20 professional jobs and 30 skilled labor jobs.

The result of this finished project revitalized the building as current use is no longer in demand within the central business district and provides it as a benefit by returning the obsolete property to productive use.

And that concludes my presentation.

Thanks.

Yes.

I just wanted to uh clarify something.

I I did mention the NEZ anewering to the benefit of the purchase purchases of the condominiums, but it certainly does apply uh to the residential rental as well.

Thank you for that.

Uh you must have been reading my comments to my team member about that.

So thank you for clarifying.

Um thank you all for the presentation.

It was very detailed and very thorough.

Uh, certainly do appreciate the information relative to universal design and the accessibility of the units.

Um also um appreciate just all of the work around accessibility.

Um, I did want to ask about green stormwater infrastructure, knowing that it is a structure that is already in existence.

Um, is there any way for you all to address stormwater because of your proximity to the water?

I'm not sure what currently is in existence.

Um thank you.

Um, I'm gonna ask if uh Jeremy uh can maybe jump in on that.

I would think that we would use what is currently there and try to come up with a plan, if any is possible to fulfill that.

Um, it's not something that we've actively really addressed, but it's definitely something we can look into and try to solve.

Thank you.

So I'm not sure um how the system currently works uh within the building, but would love to have a detailed conversation with you all, uh, considering again your proximity to the Detroit River to see if there's anything that we can do to take the storm water out of the system and and instead of it going to um the wastewater treatment facility and you know having to be added into the system um because of your proximity to the Detroit River, I think there may be some things that can be done just to keep that water out of the system because it does create challenges for a number of us on the east side of Detroit.

Um my next question is, and I think I just missed this because I was preoccupied, just trying to clarify what Mr.

Howe just shared.

Um there was mention of parking.

Is the parking structure that is adjacent to the tower going to be utilized to provide parking?

Jeremy, can you uh jump in on that as far as where these spaces are?

I know the underground is a very good thing.

Yeah, yeah, most of all are in the existing structure underneath the structural underneath the building.

There are some adjacent, I guess it would be towards the southeast that we could utilize uh in a vacant lot that we have access to per the purchase.

We are not utilizing them now, but we retain rights to if we need to in the future.

Okay, so the the parking that was referenced is part of the tower.

So it's correct.

Yes, there's a three-story parking garage underneath the tower.

Okay, all right.

I don't think I realize that.

Um, and then a couple of things I wanted to clarify.

So I think Mr.

Howe, when you talked about the increase in the property taxes, I'm assuming you were talking about the entire complex, not just the NEZ portion.

That is correct.

Okay.

And can you share why would the taxes increase um so much for an existing structure if the abatement was not being provided?

Yes.

Uh the so uh you've essentially got two abatements layered over the property at an NEZ uh and uh an Oprah.

Uh the NEZ uh for a rehab freezes uh uh the taxable value and essentially uh all of the abate all of the mills are abated uh with uh NEZ rehab.

That's the you know largest or one of the largest components of the property, and then you overlay that with uh an Oprah on the commercial, and you've got a substantial uh reduction of mills that are actually paid given the use of uh two abatements.

So would the assessed value of the property go up significantly as a result of the investment?

Yes.

Okay.

That would cause the taxes to increase substantially, yes.

Okay.

All right, thank you.

Pro Tim Young, any questions?

Thank you so much.

I appreciate it.

Thank you.

Uh wonderful presentation.

I think this is a really good project.

I'm really excited about it.

I just wanted to ask you um is this the first question I want to ask, is this had the potential to be a city within the city?

And what I mean by that is is this a project where all the amenities or anything that you would want you could get within these towers?

So do you plan on having I know in the Renaissance Center they used to have a former movie theater that has shut down?

Are is there plans to be able to revitalize that?

Is there plans for people to be able to shop, people to get the gym health benefits?

You could get anything that you basically need within these three towers.

And so is there a connectivity between I know these are different projects, but there are a connectivity between that.

Is there a plan for that, or is this just the focus that you have primarily is just on housing and certain small level retail and restaurants?

May I answer?

Yeah, please.

Yes, the the what's gonna be available to the public is the restaurants, at least two restaurants.

There could be a possibility of the spa and um and the gym also available.

Uh the private residents, obviously gonna be uh uh a privilege for the tenants and the hotel also for the tenants.

So, yes, some of the amenities would be open, and we're excited about the project next door.

So there would be some kind of cooperation to to maintain the benefit to the general public in addition to the tenants themselves.

So absolutely, there will be some benefit to the public.

Uh as far as restaurants and some amenities where it is not the privilege for the tenants only.

So I understand.

No, I and I'm sorry, I didn't make this clear.

I wasn't talking about um for the public.

I think I think the the amenities that you're asked for the public are great, and I think that's fantastic.

But I would talk, but what I was talking about within the city was the city I'm talking about, particularly for the residents that are gonna that are gonna that are gonna be there.

Um I I think it's great that you're providing public amenities, but that's not what I was referring to.

I was referring to the residents with they, the people that actually live in these buildings, would they be able to have all the amenities available, you know, that they can look for within that area and not have to go anywhere else within the city?

That's why I'm gonna be able to do that.

The restaurant, maybe convenient store, small convenience store, you know, the gym, the spa, conference room, clubhouse, meeting rooms, all that would be available.

Absolutely.

Okay, okay.

Now, does that also include like you know, health care or you know, mental health treatment or things of that nature?

I'm trying, I'm thinking like on a comprehensive, you know, that is not part of the plan.

No problem.

No, it should be looked at.

No, I know I'm I'm I'm not I'm not trying to sway one way or another.

I'll just ask it just out of curiosity because I know that's been when you have these type of projects that are usually within this type of size and scope, usually those deals are discussions that are held about that.

You know, I mean, some cities that actually have that, like you don't have to go outside of that area, you know, whether to shop or whether to get health treatment or whether to work out or whatever it is you want to do, you could basically get you know dry cleaning or whatever, you could get almost any service you need that's essential within that area.

I didn't know if that was a part of that.

I just thought that would be good for the people, especially for the working class um homes that you um um rooms that you have reserved, and for people who are poor that are reserved, even though it's five people, I still think that's pretty revolutionary, depending the no the determining that it's right on the riverfront.

I don't I i i in my experience I have not seen anything like that in any other major city in the Midwest or across the country, period, where they offer any affordable housing on their riverfront at all.

So I think that's a pr that that's a that's a pretty big deal.

So I but I just want to make sure exactly what would be available for that.

Um I also wanted to ask another question.

Um do we have a um estimate in terms of what the one of what the estimate of minority and women owned procurement businesses that you will be working with on this project?

Uh um I'll answer some of this.

Um thank you for the question.

Um, I know that what we're looking to do is is cast a very wide net, councilman, um, for the type of uh you know, businesses, whether it's the subcontractors on the project itself, um, as well as the the businesses that that come into the building.

I mean, I know um Dr.

Just mentioned the restaurant, the spa, the up, you know, the other things that they'll be putting into the building.

Um, and I know that there is a commitment to uh to diversity and to having as much representation in the building as possible.

So um I don't know if anyone else would want to reiterate that um on the general contractor side, maybe Catherine or Mike, um, on your outreach.

Yeah, this is Mike.

Um, yeah, we've we've reached out to um pretty much every local union, and um we're encouraging you know, as many um local Detroit residents, um, be a part of the construction process.

Um, and I'm sure that'll that'll happen with the building as well.

Um so yeah, we're we're out there um and we're gonna, you know, we're not you know, we're looking for the best contractors that we can come across, the most qualified, but also ones that represent the city, uh that's very important to us, and um, and that that's really our goal.

So uh there will be a very very good diverse and well-represented workforce on this project with us.

Can if if I can ask for anyone who's speaking to please turn your camera on so we know who's speaking?

I I was looking at everyone, and I was thinking, I don't see the person that's speaking here, so I'm not sure what's happening.

But please be sure to turn your camera on as you are speaking.

Thank you.

Yeah, yeah, I appreciate that.

Um that's just what I was thinking about.

That that kind of stuff gives me the heavy jeebies a little bit when I can't see what's talking.

Um I just want no, I no, I think that's an excellent um response.

I just wanted to ask on a more granular level.

Do we have that um down to a number at all?

Do we have the minority owned business shares?

So that's contract dollars to certain minority owned firms divided by the total of um of firms that you're doing business with versus women-owned business shares.

That's the same thing, contract dollars to uh to certify women-owned firms divided by the total.

And then I also wanted to ask about Detroit contractor share, contract dollars to Detroit firms divided by the overall contract uh dollars that you have for this project.

Do we have those numbers available or estimate of those numbers?

They ought to be accurate.

Just do we have an estimate of what those numbers will be?

If not, that's fine.

I just want to know.

Um, we haven't we haven't gotten to that granular level yet at this point of the process.

Um we are very aware of you know the executive order and other um, you know, in through this incentive process and the programs here in the city.

Um, and then we've also as as I mentioned, and and David mentioned, we are uh we're in close contact with Detroit at work and you know, other organizations here to be sure that um as we go forward, we're gonna find um, you know, find Detroiters uh to to fill these roles, especially in the in the contractor area.

Hopefully all of it, hopefully all of it.

We just have to do what we have to do to make sure that uh we finish on time, start the project.

No, absolutely.

No, I I I I really I really appreciate that, and I think that's great.

I mean, I I again I'm a I'm a supporter of this project.

I'm just asking these questions so I can answer this to my constituents when I go out there and talk about them, because these are the questions that are gonna come up a lot.

But I mean, I I don't mean to get too personal here because I don't know a lot of people here on this call.

But uh there is a uh but there is a personal connection between me and my father and that building and uh and what that means.

And so I think the fact that we're actually doing something rather than that building being empty, I think is important to me, not just on economic level, not just on the constituent level, but also on a personal level.

So I definitely want to see something done.

I'm not trying to block this in any way.

I just want to make sure I have all the information I need so I can inform my constituents when I'm going out there.

Um I also wanted to ask um what is your public to private leverage ratio?

And that means for every public dollar that you receive, how many dollars are you receiving from the private sector for this project?

Through the chair, uh I'd I'd like to respond to that.

Yeah, I was hoping so.

I've I forgot that I forgot to acknowledge you, brother.

But yeah, that that was meant to you.

I'm sorry, I didn't give you proper acknowledgement earlier.

But I was hoping you'd be the one to answer.

I'm I'm grateful for that.

And then uh Christine, uh please follow up if if necessary.

But this is a uh uh through the chair again.

Uh Pro Tem is a unique uh capital stack formation in that uh is unlike most of the projects that we see, it's just equity and debt.

Um this is one of the reasons we're so encouraged by it is because uh the development team has not approached us and asked us to help them find gap money, if you will.

Okay.

It is just equity and debt.

Um it's um, you know, the and and that's the type of project that we want to see, right?

We don't have to go to the state and ask for uh uh gap-filling money.

We can use uh that money and other projects, particularly projects outside of the downtown area.

So uh it's you know, uh a 60 40 split of equity and debt, and we typically again we typically don't see that.

No, I know I I I I appreciate that.

I mean, I'm sure that makes that makes the project uh more attractive and do and but even though it's as a unique capital stack.

Do we have those numbers in terms of what the difference is?

I I I just think that's important for me to go to my constituency because people, you know, people are talking about people are calling in, talking about um tax discounts all the time.

And so I think when I could say, well, listen, they have this amount of money that's coming from the private sector versus this amount of money that's coming from the public sector, you know, and say this is something where they've raised more money, I'm sure significantly on the private side.

And so I think that's something to really be able to, you know, let people know and dig into when we're having this con when we have this conversation because it lets it lets people know the significant burden and investment that the developers here are taking on this on this project.

This is this is not an easy project by any stretch of imagination.

This is this is very risky.

And so the fact they're taking it on, if that they're doing it is important, but we have to be accurate about what this is so people understand, so people could see you know what what this is and how it's working and and and why we need it.

Yeah.

And so through the chair, uh member Young, uh again with respect to the property tax abatements.

Uh there is no public money actually going into the project.

Okay.

The actual uh property tax abatements just lessen the tax burden uh with respect.

So no cash.

Right.

Uh you will be uh uh you will hear in the not too distant future uh from the brownfield team here uh at DEGC with the development team a request for a traditional and a Mishta or housing TIF.

Uh with respect to the TIFF, there's a reimbursement for money that's spent up front with the traditional TIFF, and then there's a uh a reimbursement to help uh defray uh the loss of revenue by because of the addition of the affordable units, and you'll hear directly from the Brownfield team uh with respect to uh how and how much and how long it takes for the the developer to be reimbursed, but with respect to the property tax abatements, they're just a discount.

There's a discount just applied to the uh essentially it's a discount applied to the the property taxes, uh, which does not result in any public cash or any public money going into the project.

Well, first of all, let me say uh thank you for that correction.

I must be wearing orthopedic shoes because I stand corrected.

Thank you, sir.

I did not mean in any way to assume that this project was receiving public dollars.

I was referring to what you were talking about, the tax discount versus the money that they're raising on the private sector.

I did not mean to assume that they were because that would not be accurate.

Any on budget financing.

I know that's not happening.

I just wanted I was just trying to talk about that um that difference.

Um I also wanted to ask a question about economic multipliers, and I also wanted to ask about spinoff jobs and small business um benefits, particularly in this area right here.

Um there are a couple of, and I'm just saying this is an example.

I'm not saying that it's gonna directly impact them, but we have a couple storefronts that are along Jefferson Avenue that um could be occupied or could be used to be occupied.

Do we have any sort of potential analysis of what the economic multiplier of this project would be and how this would impact small businesses around um this project and how is it as an anchor project, how many other small businesses uh would potentially develop because of this project?

We we have not uh frankly uh got that granular in terms of how many businesses may be created as a result of the development.

But what we have done, and if if you want me to, I'd be more than happy to bring the slide back up, is we've done an analysis uh that uh estimate makes an estimate with respect to how much money uh that the uh uh hotel rooms would generate in terms of economic uh spinoff.

And I think over uh the life of the uh uh abatements, um the the longest one being the the NEZ 15 years, we're projecting about 200 million dollars of additional spending uh in the area uh or as a result of the hotel stays.

Now that money uh will be going into obviously nearby restaurants and stores, shopping and the like, which ultimately will increase you know revenue from the surrounding areas and hopefully result in hiring more people.

Okay, excellent.

And I we'd be more than happy to actually send over to you uh the slide and the analysis.

Um be more than happy to do that.

No, I I I appreciate that.

And then my um my final uh question would be uh what does this project represent in terms of the gross domestic product of the city and the macroeconomic analysis of the city?

So um do we have that by percentage?

Through the chair, I think that's an excellent question.

I appreciate it.

Uh as I stated earlier, over the life of uh the incentives, we're uh projecting about a 4.2 million dollar net fiscal benefit to the city.

That's actual money into the general fund, notwithstanding the tax abatement.

So property taxes will be abated.

Uh the major driver of that $4.2 million, uh, $4.2 million is income tax revenue from the folks that will be working at the hotel and uh in the uh retail uh outlets as well as the construction jobs.

So over a 15-year period, sir, about $4.2 million uh we project uh will anure to the general fund of the city of Detroit.

Do we also have analysis of the tax leakage in terms of how much money would potentially go to other hotels or other uh other other apartments and hotels outside of the city, but because this is built, we're now gonna capture that tax revenue as well?

Yeah, um, part of the uh uh income tax projections, uh that's an excellent question.

I really appreciate that.

Part of the the income tax projections uh takes into account uh a capture rate of uh a conservative capture rate of about 30 percent uh of the newly uh constructed apartments will uh you know be uh occupied or or rented by people moving into the city, and about 30 percent of the uh new jobs we project will be uh uh from folks you know, 30 percent moving into the city.

So uh we use a fairly conservative capture rate uh with respect to new residents and uh uh new employees.

Well, I'm glad you said that because that led it to the question I had about population growth and uh tourism, but I'll ask those questions for another day.

Thank you very much.

I appreciate it.

Um chair, I'm done.

Thank you, ma'am.

Thank you.

We will now turn to public comment regarding the public hearing.

If there's anyone who'd like to speak regarding the public hearing that we just witnessed, this is the 1020 public hearing.

Please raise your hand.

Please raise your hand.

Going once, going twice, going three times.

The collection of public comment has concluded.

We do have one individual here in the committee of the whole.

Ms.

Gray, how many hands do we have raised virtually?

Madam Chair, we have four hands raised for virtual public comment.

Okay, if we can please set the clock for one minute, 30 seconds.

We will start with Mr.

Foster here in the committee of the whole um good afternoon to the um chair.

Just a few things, just like last week.

I'd like to know um I just heard him mention something that's going in the general fund.

Is he sure that any taxes will be going in general fund?

Did he misspeak at all?

Secondly, I just like to just think, um, say with the hospitality business, just like last week when it comes down to hotels, it's generally young, attractive women that's in there working, right?

They lack benefits, they lack a lot of other things.

They rely on tax tips and maybe be vulnerable to other type of exploitations, right?

So to be working downtown or have hotels, uh simply ask you all to take into account their wages and making sure that their wages are reflective of the new developments downtown.

Um, not only in a hotel industry um are they vulnerable, but as the ties change, their job descriptions change.

They're required to see something, say something, they're required to do a lot of other things outside of their ordinary job description, and with that job description change, wages should change as well.

And then lastly, what do you expect after the incentives run out to do with this building?

I believe that the buildings are in a state they are in because the centers ran out and there was no foresight there in the first place.

So what is happening when these incentives run out?

And then uh, well, that's it.

I appreciate it.

Thank you, Mr.

Foster.

Who is our first virtual caller?

Our first caller is Tyson Gersh.

Tyson Gersh, you have one minute, 30 seconds for public comment regarding the public hearing.

Thanks.

Can you hear me?

Yes.

Um, the the last caller said, uh, you know, we use these NEZ tools quite a bit to get things built without much of a plan for what happens afterwards.

Um I'm gonna go, I guess, to avoid mentioning any projects specifically.

I mean, we've had stuff built just in the last five years that uh well, I guess last 10 years and NEZs ran out.

Um, I think they were a shorter period.

I don't know, but there were some issues.

Uh developers lost money, banks took things back.

Um, and I guess just to speak to the specific project.

You know, as much uh tourism is like such a valuable thing for a city, and if we're ever gonna be able to get property taxes down and stop handing out all these incentives to do anything and have a real market that can support real market development without subsidy, um, we're gonna have to find good revenue um and and just build better revenue streams, and that's not through taking more money from our existing residents.

Tourism is the move.

You know, we're Michigan's major city.

This is the place people should be traveling to and spending money, and those tourists spend money like crazy.

We hate the those like little whatever the like drunk people bike car things downtown, but they're great for money.

Thank you.

The next caller.

Our next caller is Owner Papa.

Owner Papa, you have one minute, 30 seconds for public comment regarding the public hearing.

Yes, good afternoon.

May I be heard?

Yes.

I have a question for Councilman Young.

He mentioned women and who I want to know who are the minority that he's mentioning that uh should be getting these jobs.

Um, the NEZ, Mr.

Howe, my question to you is what is the return on the investment for the developer?

And um how do you account for approximately one million dollars uh reduction that should be going to the uh general fund that is not going to the general fund?

And like Mr.

Hid, you always have projected jobs.

But what was interesting, Mr.

Howe is you said you expected 30% new people.

I thought you worked for the city of Detroit and the people who are currently here.

Uh, maybe not.

Um I think this is just another way to supplement to subsidize rich people.

I don't think that people who are living on the riverfront need to be subsidized, not with not with reducing my general fund when they get I have to pay for police, fire, and you're in talks right now with contracts which are putting stresses, and Mr.

Corley sounds like a person with schizophrenia.

He tells you one minute that the general fund is being stressed, and then next minute he's telling you we can absorb our fund our uh programs.

This is absolutely ludicrous.

Um, I don't need to subsidize people who live on the riverfront.

I don't need to subsidize people who can afford a million dollar condo.

So please stop with these tax reductions.

Thank you.

The next caller.

Our next caller is legendary Detroiter.

Legendary Detroit, you have one minute, 30 seconds for public comment regarding the public hearing.

Yes.

Uh echoing what uh Kill Hughes just spoke on and expounding on it.

Uh now, subsidizing people that live in that area is kind of redundant now.

City is awash now with areas that need to be uh subsidized, and uh cheating in political figures and politicians here in the city of Detroit cheating in, don't care about the neighborhoods.

Now, what we're talking about in this public hearing.

Um needs to be expanded all the way out to the fact that it person is cheating in uh political figures and politicians here, the Detroit City Clerk and the chairperson of the Detroit election commission, along with the General Corporation counsel, the city of Detroit that was sitting right beside her when she lied on the Zoom meeting on April 25th, 2024.

And I'm not telling you.

Yes.

Yeah.

Well, first of all, I just don't even know how these NEZs are legal to give some people tax breaks and other people not.

I know it's a state tool that came out of Lansing for some reasons back in 1997.

But I have openly heard from allegedly elected officials in Detroit that the reason they're giving the NEZs is to get the higher income taxes.

Let me repeat.

Why don't they ask people to come back to work?

And then you'd have full buildings and um eighty-six rent rental units, six condos for sale.

Again, you're telling me these people don't have the money to pay the taxes.

Like really, I think of the entire city of Detroit knew what these NEZs were, and who's getting them that you would have an instant uprising.

But you appear to count on residents being ignorant about what's going on, because like a whole bunch of residents don't even know what's going on, they don't even know how to call into a meeting.

So this is about your financial troubles trying to get higher income people and not paying attention to the Detroiters who are right here.

And there was a massive switcheroo, it appears, that uh Gilbert played so he could build his tower and grab the water from thank you.

That now concludes the collection of public comment, and I would now like to recess to the call of the chair before we proceed with responses.