2026.

Madam Clerk, will you please call the roll?

Councilmember Letitia Johnson present.

Councilmember Gabriela Santiago Romero.

Present.

Council President Pro Tempera Colman A.

Young the second.

Pro Tim is on his way.

He will be arriving shortly.

Clerk was so note.

Madam Chair, you have a quorum present.

Thank you.

Having a quorum present, we are now in session.

And good morning, Member Santiago Romero.

Is there a motion on the minutes?

Good morning.

Motion to approve.

Hearing no objections, that action shall be taken.

And we are going to move into public comment.

If you are joining us and would like to make a general public comment, please raise your hand.

Whether in person or virtually, we do have Mr.

Cunningham here in person with us.

Please raise your hand virtually if you would like to make a general public comment.

Public comment will be cut off in two minutes at 10.07.

Good morning, Miss Gray.

How many hands do we currently have raised?

Good morning, madam chair.

We currently have seven hands raised for virtual public comment.

Thank you.

Let's set the clock for two minutes and we'll get started with Mr.

Cunningham, who's here in the committee of the whole good morning, honorable uh council persons, and good morning, everyone under the sound of my voice.

313, 444, 9114, 313, 444, 914.

313, 444, 9114.

That number was made so you can remember it.

Um there's a transit millage.

I got uh kicker cards I can deliver to you.

Uh anyone under the sound of my voice, they're like small cardboard or I'll always say small uh cards with the information for the millage on them.

You can get as many as you like.

Hit me up.

It is just a just a shame.

I've been doing this for a long time.

D dot is on time 65 percent.

65 to 70 percent.

Where's the sense of urgency?

A phone call, an email to the director to put some fire up under him.

Fire sense of urgency.

65 to 70 percent is terrible.

Terrible.

And remember, I don't get paid for this.

Remember that I make money off bus service being bad.

If it's bad, I make money.

So I'm doing this from the heart.

I'm I I'm everybody's sitting in the uh office somewhere.

I'm out here, okay?

And I know what I'm seeing, and I know what they're telling me.

Um, I'm asking those to love, love genuinely, love without schism, without schism, without schism, either hate directly and boldly or love directly and boldly.

Don't be scared.

Um, I'm looking for bus ride-alongs.

If you want to do a bus to ride along, any candidate or incumbent, you know the number.

Pray for me.

Um, my bedroom needs AC, my vehicle needs AC.

You know you're blessed when you have air conditioning.

Um, so tomorrow's free for our Fridays, free ice water, and free bus tickets.

And councilwoman Johnson, I'm still awaiting that org to contact me.

And thank you for your support, both of you.

Bye-bye.

Thank you.

And I will follow up with them and reach back out to you, Mr.

Cunningham.

Public comment has now been cut off.

And who is our first virtual caller?

Our first caller is Dr.

Denise Darnell.

Dr.

Denise Darnell, you have two minutes for general public comment.

Good morning.

Can I be heard?

Good morning, yes.

Okay.

I'm calling to give a few key points on proposal S and the millage for that.

Uh, this is for Detroit Public School Community District.

Uh, so that if this is funded and continues to be funded, it will supply and continue art, music, PE, and athletics in all schools.

It will expand career and college programming for high school students.

It will give more classroom supplies for students and the teachers, and help with additional repairs for the school board.

I mean, for the school buildings.

So, most importantly, this proposal will cost nothing to Detroit voters who own their own home.

This is um because it's replacing the tax that was previously levied by Detroit Public Schools, and now that the legacy debt has been paid, Detroit Public School Community District will be getting the millage.

And now that the legacy debt has been paid, Detroit Public School Community District will be getting the millage.

So I'm encouraging people to uh educate themselves about proposal S so that we can continue to fund our schools.

And as Brother Cunningham just stated, we also have a proposal on our ballot and a millet to support the Wayne County public transportation because this transit will allow thousands of people with disabilities to work to be productive and live meaningful and independent lives.

It provides affordable alternative uh transportation for nearly 350,000 Wayne County residents who have little to no options to get around if they can't drive.

Everybody doesn't catch the bus within the confines of the city of Detroit.

Some people who live in Detroit have to go to other areas and other uh parts of Wayne County.

This will help customers with small businesses as well.

So that is my comment for today.

God bless you all.

Thank you.

Thank you.

The next caller.

Our next caller is William M.

Davis.

William M.

Davis, you have two minutes for general public comment.

And before we proceed, I'm sorry, Mr.

Davis.

Give me one moment.

Uh, Madam Clerk, if you will please note that council president pro tempere has joined us.

Clerk with so notes.

Thank you.

You're welcome.

Mr.

Davis, good morning.

Uh good morning to all.

Um, I think it would be good to have an entertainment tax or a central business district tax, you know, and that many major cities do that.

And prior to the emergency management coming on the scene, uh, we was receiving, you know, when the Joe Lewis Arena was first built by Coleman Young uh years ago.

We used to get concessions, we used to get broadcast um money.

We you know, we used to get different streams of income from that.

But of course, the emergency management deemed that we didn't need anything, and also waived uh the fact that Joe Lewis Arena owed the Detroit Water and Sewage hundreds of thousands of dollars.

You know, so I think uh entertainment tax or central business tax would be good, especially in so much that many of our guests don't live in the city, but we are actually supporting their endeavors and their entertainment.

Also, uh, it is going to be really hot again today, and I think we need to make sure that the people at the Detroit Detention Center are cool.

Uh, because um, I know all of y'all are young, but it at one time the city of Detroit was up under the Justice Department review.

And one of the reasons among many was the fact that the local jail lockups was in horrible conditions.

Uh we have horrible conditions still at uh the at the Detroit Detention Center.

Uh actually it was better conditions when the state was running it because the people used to be able to get out, you know, and not be constantly you know contained with a room full of people.

So hopefully we remember that.

Hopefully we remember that we need to be doing more to help more people in the city of Detroit.

Uh, hopefully, we also remember that on stolen land there's no illegal people.

Y'all have a good day.

Thank you.

The next caller.

Our next caller is Black Bag.

Black bag, you have two minutes for general public comment.

Okay, uh Tissia Johnson is over with.

Now I'm coming out the black bag.

I'm gonna dump the whole black bag over the city of Detroit.

You a cheated in public official, and you're sitting there with another cheated in public, Gabriela Santiago Ramirez.

Now, who'd Jake?

Santiago Ramirez, that's your relative, right?

The one that got all the blight tickets that ain't been to care of.

And you've been working your hand, your magic behind the scenes.

Now, last night, the mayor, the deputy mayor, and the chief of staff was on Channel Four with Dennis.

Now, Dennis knows me, been knowing me for a long, long, long time.

No, I'm stand up.

Now, I Dennis Archer Jr.

is a friend.

I consider him a friend, even though he is one of them alumni now.

He's University of Michigan alumni.

See, I'm black bag, I will come out on anybody.

That is Latrell Cunningham that gave me a ticket for my truck being black backed up in my driveway on concrete, talking about it's a commercial truck.

Oh concrete, talking about it's a commercial truck.

It's a little box truck.

And the guy's coming over to fix it.

So he's coming over to get it.

I parked in the drive.

He gave me 230 dollar ticket.

I'm tired of all you see us in Detroit.

Now I'm getting ready to dump the whole black bag on her.

Janice been cheating in elections.

Oh, y'all cheating in.

Y'all gotta go.

We gotta have a special election in Detroit.

I'm sick and tired, y'all.

And Nini gotta get what she won't.

She wants that false bogus tag of suicide up off her mama.

I'm not gonna let her go through another summer, which is nonsense going on.

That tag hanging over her mother's head, so all y'all gotta go.

We gotta have a special lecture.

Get on.

Bye.

Bye.

The next caller.

Our next caller is Marguerite Maddox and Scarlet.

Miss Marguerite Maddox and Scarlet.

Good morning.

You have the floor for general public comment.

Good morning.

Um may not know me.

I get they've smoked.

This morning about James.

My partner used the bathroom.

The elevator was not looking.

I kind of nine one.

I did not know the number to our meeting.

Yeah.

And that a pup meet building.

And I look at it online.

Got it.

Got it online.

But he's not me.

He added it.

Now here is you.

How to get how did you get to your puppy?

And the star is she is playing behind her.

But right, right at the time.

He remember the elevated.

Just before seven.

We not be shame.

Thank you.

I'm young.

Thank you, Miss Maddox.

And we'll have someone reach out to you if you'd like for us to give that information to the building department to ensure the elevators are working.

Thank you.

The next caller.

Our next caller is Owner Papa.

Owner Papa, you have two minutes for general public comment.

Good morning.

And through the cheer, may I be heard?

Good morning, yes.

Thank you.

Um 10.1 on the agenda suggest that there's 100% grant funding for a million dollars to go to uh Corktown or North Corktown.

I want to know what grant that is and why is it just specifically for this residential develop redevelopment and they're out of uh Boston, Massachusetts.

Um I'm a little tired of people deciding the winners and the losers up there on your body.

Everybody deserves to have a choice neighborhood, not just predominantly white people, and that is what you are creating in this city.

I wouldn't suggest that anybody vote for any millage for this city for the state to waste more money and abuse black people and their money.

Uh you keep saying grant funding.

I had I see grant funding to provide window AC units installation, $378,000.

Who is getting these units?

Who?

For who?

And what grant is funding it.

Um you have a lot of things on your agenda constantly that spell malfeasions and corruption.

We constantly have Corktown on our agenda.

Do black people in this city know that they're setting it up where you pay a hundred meals and they allow other people, others to come in and pay 20 meals or 28 meals.

This is an atrocity.

Don't listen to people.

I don't care if they have doctor in front of their names, I don't care who they are.

Don't vote yourself in another millage to pay more money in taxes.

It's absolutely crazy when we don't see our tax dollars in our neighborhoods, not our CDBG dollars.

You're stealing them, misappropriating them, giving them to other people, and we're suffering.

Absolutely not.

Not for DPS, not for a millage for transit.

Thank you.

Thank you.

The next caller, oh, before we proceed to the next caller, I'd like to call the 1020 public hearing to order.

And re says it to the call of the chair.

And Miss Great, who do we have next?

Our last caller is Cindy Dara, noting that legendary Detroiter also has their hand raised, but they already spoke.

Cindy Dara, you have two minutes for general public comment.

Can you hear me?

Yes.

Uh-huh.

Yeah.

Uh if we had a thousand Carolyn Hughes and Joanne Warwick sweet me so much better off.

Uh you know, uh could we uh instead of spending all these millions hiring these out of the country and out of state companies, how about taking them some of these millions who are throwing away out there, pay off the millages so we don't have such high millages.

Could we do that?

Uh and uh I mean the it seems like the problems that the government tries to solve are actually problems that they created and uh uh uh sometimes what you think is an improvement is a degradation.

So uh I think if we want to attract people here, we should uh uh focus on keeping the environment clean.

I thought to this uh uh Canadian uh well, she's she's from Dearborn, but her husband's from Canada, they're gonna move back to Canada because the government doesn't allow all these poisons to be put in the Canadians' food, and they don't have all these over white people either.

So uh uh there's something on this country that not very healthy, and that's the important most important thing we have is keep our people healthy.

And I will thank you.

That now concludes general public comment.

Colleagues, Madam Chair.

There was one hand who had lowered their hand, but their hand was raised before you cut it off.

Would you like me to call on them?

They re-raise their hand.

Sure.

In that case, our last caller is Jadante Smith.

Shadante Smith, you have two minutes for general public comment.

Good morning.

I appreciate that.

I wonder what happened, how my hand was lowered.

Um, I like to say that um I've been going around the city uh trying to do some work around boarding up homes.

I've been trying to uh get homes demolished that are in deportable condition, some in district three, some at issue four.

I went around district one, and surprisingly, I'll give credit where it's due.

Council President James State did a good job in district one for the most part.

There are some some outline areas, but in Brightmore, there are not many houses that the land bank has not secured properly.

But in District 5, there's a lot of issues, district four a lot of issues, district three a lot of issues, district six has some issues.

I haven't been over there as extensively as I would like to be.

District two also has some issues.

So I do I am happy to see that uh councilwoman Callaway is is trying to you know work on some things of uh bike remediation uh around the city and partner with DPD, but ideas and imitations like flattery.

It's the most imitation is the most uh fascinating form of flattery.

So I appreciate her imitation, but she had no uh no idea of doing this type of work until she seen me do it, and she's commented on my Facebook page, my personal Facebook page that I've never been friends with her on.

So she started to do the same work.

So I I love the the flattery there.

Also, um I just got to respond to uh councilwoman Miller uh from a couple days ago.

So you you I don't know why you're making this personal.

When you ask about who's paying me and what what I am doing as a living, I advocate for the residents of the city of Detroit because it's the right thing to do because I live here.

The better this city works, the better I work, the better I am, the better my children have a future in the city of Detroit.

You are uh elected official in the city of Detroit.

You control our money, our resources, and you are a legislative check and balance, uh, and you control the budget for the city of Detroit, which is a very important thing.

But I do know who is paying you though, Renata Miller, the Torgo family, the Sterling Group, right?

The Tor, I I could just name them off, but Jacob Torgo and uh Hannah Torgo and the other Torgos and the Maroons.

I know who you who's paying you, who owns you who you own your payroll.

I don't get paid due to the work that I do.

I'm a volunteer, and I'm a person who is happy to make this city better.

Thank you.

Thank you.

That now concludes general public comment.

I'd like to call the 1025 public hearing to order and recess it to the call of the chair.

All right, colleagues, any responses to public comment?

Seeing none, um, I am now going to call back to order the 1020 public hearing.

The 1020 public hearing is to establish an obsolete property rehabilitation certificate on behalf of ADH property 7 LLC in the area of 16215 East Warren Avenue.

And if we can cue everyone up, if you are not being promoted and you should be promoted, please raise your hand and we will be sure to move you over as a panelist.

For those that have already joined us, please introduce yourself for the record.

Lake Sha Barcliffe LPD.

Good morning, Alison Williams, Detroit Economic Growth Corporation.

Justice Cook, Housing and Revivalization Department.

Good morning, Madam Chair.

Uh, my name is Charlotta Hall with ADH Property 7 LLC.

Good morning.

And are we expecting anyone else to join us?

All right, no.

All right.

Who'd like to pick us off?

I will.

Thank you.

To the chair, ADH Property 7 LLC is requesting obsolete property rehabilitation certificate in the area 16215 East One Avenue Detroit, Michigan.

This application is for a certificate, and this is the final public hearing currently scheduled in front of this honorable committee before a certificate may be approved and issue.

The DEG is present to answer any additional questions.

Thank you.

Thank you.

Thank you, Justice.

Uh Madam Chair, may I please share my screen?

Yes.

Thank you.

All right.

So today, Cash Only Beast Row led by Charlotte Hall is requesting a PA 146 obsolete property rehabilitation certificate.

PA146 was enacted by the state of Michigan to promote the redevelopment of obsolete commercial and or commercial housing properties.

Per state statute, the value of building improvements receives a 100% property tax exemption from local mills with the exception of DPS operating and state education tax.

The exemption may be approved for up to 12 years.

And the incentive benefits are not generated until after the completion of construction.

On June 24th, 2026, the Assessor's Office for the City of Detroit provided a letter confirming this project's eligibility for the PA146 Oprah exemption certificate.

This project is located at 16215 East Warren in the Morningside neighborhood of Council District 4.

Cash Only Bistro is an $853,540 3,000 square foot commercial rehabilitation project.

The DGC has conducted its evaluation of the project.

As part of our evaluation, we ensure that every project meets specific policy objectives.

Projects should provide strategic benefits that align with the city's goals and initiatives, economic benefits that create opportunities for Detroit residents and businesses, and generate fiscal benefits for the city.

Projects should also meet the BUT 4 requirement indicating that financially the project cannot proceed without the incentive.

Cash only Bistro demonstrate strategic benefits by eliminating blight, reactivating a vacant building, and providing a new community amenity.

Cash only Bistro demonstrates economic benefits by creating 15 to 20 temporary construction jobs and creating 10 permanent FTE jobs.

Cash only Bistro generates a 12-year benefit of 162,047, which is approximately $13,54 per year.

Through the DGC underwriting review, we have determined that the project meets the BUT 4 requirements due to the developers' inability to cover debt service payments without this incentive.

Through the DGC's analysis, we have determined that the existing annual taxes on the property are $6,529.

Upon completion of the development project, the new unabated property taxes are estimated to increase to $11,202.

With the abatement applied, the total annual property taxes would be reduced to $7,900.

This concludes my portion of the presentation.

Thank you all.

Thank you.

Good morning, Madam Chair and the Detroit City Council.

Again, my name is Charlotta Hall.

I am the managing member of ADH Property 7 LLC, which will be the housing unit for Cash Only Bistro.

I do have experience in residential rehabilitation as well as community redevelopment projects.

I am a Detroit resident, proud Detroit resident, active community leader serving on multiple Detroit-based nonprofit and economic development boards.

As far as the site lay on parking, we are right off East Warren Avenue.

We will be developing four off-street parking spaces right at the near of the building.

So that way that area will be designated for loading and the delivery area to minimize traffic impacts on the customers and neighboring businesses.

Additional parking for our site is going to be available through existing public street parking along East Warren and the adjacent side streets.

This location supports walkability for nearby residents, employees, and visitors.

Some of our sustainability efforts will include high energy efficient HVAC systems.

We're also will have 10 permanent full-time jobs upon stabilization.

We will offer career pathways in food service, hospitality, and management.

As far as opportunities for Detroiters, we are committed to hiring Detroit residents at first at all costs.

We will offer food safety and serve safe certification.

We will have leadership and management development.

And because of the mission of our restaurant, uh, we will offer financial literacy and professional development resources.

Well, as far as our hiring plan goes, we will seek to utilize a partnership with Detroit at Roy at work, which is right up the street from our location.

Community engagement, we are currently and we have already done in the past community engagement meetings.

We have presented our project plan and gather feedback through these meetings that we've had, and we're continuing to do that uh currently as well.

We have engaged community partners, including United Children and Family Head Start and East Warren Development Corporation.

We have strong support for the redevelopment because this building was vacant for a very long period of time on the East Warren Corridor.

We also have our community stakeholders, stakeholders, excuse me, that express support for additional dining gathering and economic development opportunities within the neighborhood.

Thank you for listening.

Thank you.

And before we proceed to our next presenter, I'd like to call the 1035 public hearing to well, I believe I have to recess the 1020 public hearing first.

Call the 1035 public hearing to order and recess it to the call of the chair.

And we are back at the 1020 public hearing.

Good morning.

I'm the city council.

You have ADH Property 7 LLC before you developing property located at 16215 East Warren within the Morningside neighborhood.

This 3700 square feet building was erected in 1951 on point one, I mean 0.1 acres of land.

The proposed developer development is um at um adaptive reuse project whereby this one-story former dry cleaner is being transformed into a restaurant.

Cash only bistro is a full service.

Build your own pasta restaurant with with a business club.

The developer has designed this to service both the restaurant and a community hub where food culture and financial literacy come together to create a lasting impact.

The development plans include interior demolition, a full build-out, structural improvements, roof repair and replacement, facade improvement, site upgrades, installation of a commercial kitchen, and upgraded mechanical, electrical, fire and fire suppression systems.

The estimated capital investment for this project is $850,000.

The sources of funds for the project is through owner equity and um tax um incentives.

It is also estimated that the completed project will create 10 um full-time equivalent jobs and 15 to 20 temporary construction jobs.

The total value of the 12-year Oprah is $21,186.

Based on the investment in jobs, this project is estimated to provide the city of Detroit a net benefit of 162,000 and all of the impacted tax unions combined, a net benefit of 199,000 over the 12 years of the Oprah tax agreement.

And thank you.

And that concludes my presentation.

Thank you.

And I believe that is that concludes all of your presentations.

And I know we heard this project last week for the district.

Um colleagues, any questions?

Pro Tim Young?

Thank you very much.

Hello, everybody.

Excellent pro excellent project.

I just got one quick question.

Is there any potential chemical residue issues in the building?

Because it previously was a dry cleaners.

So as far as the building contamination goes, we've done our phase one, we've done our phase two, and based on the phase two findings, the levels that were in the soil are below any type of uh raising any type of concerns.

And the recommendation that was given is that I needed to do a vapor intrusion system.

So Eagle has been engaged to uh get that work done and put that system in the building.

Exit.

Thank you.

Thank you, Milager.

Yeah.

Thank you.

We will now move to public comment.

If there's anyone joining us in person or virtually who'd like to make a public comment in regards to the public hearing that we just heard, please raise your hand.

Going once, going twice, going three times.

The collection of public comment have concluded, Miss Greek.

How many hands do we have raised?

Noting that there are no hands raised in the committee of the whole.

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

Okay, if we can we'll give everyone a minute 30 for public comment regarding the public hearing.

Once we have the clock on the screen, who do we have first?

Our first caller is Owner Papa.

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

Good afternoon through the chair, or good morning through the chair.

May I be heard?

Good morning, yes.

Carolyn Hughes.

Excellent project for the city.

It has a community component, and I'm absolutely sure that she will do her best to hire Detroiters and train Detroiters.

Um, these are the kinds of projects that we look for to for our city.

Um the this is one of the worthiest projects for our tax incremental deductions.

Um it doesn't hurt the general fund too much, but but it adds to the general fund, but you also have a component of community service, which is financial literacy, which is an important component in our uh community that is lacking, but uh I like to thank her for her thoughtfulness, and um I very much approve this project.

Thank you.

Thank you.

The next caller, our next caller is Blackbag.

Black bag, you have one minute 30 seconds for public comment regarding the public hearing, Miss Hall, Miss Barcliff, Mr.

Williams, Ms.

Cook.

Uh what I find is ironic about this whole situation.

We we got a great project, excellent opportunity for advancement of a African American black individual in the city of Detroit who's gonna help other blacks, but we got a budget that's 2.5 billion dollars, only two point one of the built 2.5 goes to non-black hands in a majority black city now, Mr.

Cook.

You work for the city of Detroit.

Um you know what I'm talking about when I say this.

How is it that we can hold have hearings on subjects where monies are going to non-black hands and all over everywhere by some cheated in public officials?

They Janice Winfrey cheated them all in.

The whole city council cheated in, once voting for the money is cheated in, and I'm not lying.

I'm being honest.

I caught them, they busted.

Donald Trump knows it, and we sit here like we retarded as black citizens in Detroit, majority black, and we only get a small portion of our annual operating budget.

Thank you.

The next caller.

Miss Marguerite Maddox and Scarlet, you have the floor regarding the 1020 public hearing.

Thank you.

Um the number I did not hear a pattern thing.

Thank you.

Thank you.

I believe that now concludes public comment.

And I heard some comments.

The question I heard was in regards to parking spaces and ADA parking spaces.

Who'd like to respond?

Thank you, Madam Chair.

This is Charlotta Hall responding.

Um, as far as the comments, I would like to thank Papa for supporting the project.

Um, so thank you for that.

Uh, for the second caller, I wouldn't just say the name was Blackbag.

Um, I want to thank you for raising your concerns because of the business uh component of the restaurant.

We will be having classes to make sure that people in the neighborhood know their rights to vote, what voting does, budgeting.

Um, so and then also just to let you know, we do have at least in D4, which I'm pretty sure was others outside of D4.

Um, we have the development summit.

So there are other African Americans that take hold of a lot of the um tax incentives and other financing that the city of Detroit offer to get the projects off the ground.

So, and it is a website that you can go to if you just Google uh D4 Development Summit and you can see all of the various resources that's been offered to a developer like myself who just happens to also be African American for Ms.

Maddox.

Yes, uh, we are going to have ADA parking.

So right in the back of the building, of course, um during the delivery hours.

That's going to be in the wee hours in the morning or uh late at night when we're uh actually closed because I may be signing up for them to come in when we're closed to do the delivery, but it will be two spots in the back that will be designated for um disabled individuals.

As I told you on the last week, I am a disabled individual, so that is important to me as well, so they can have access.

And then as far as the other parking go, this is a commercial corridor, so there is plenty of street parking that is available and has been already mapped out due to the city planning of that area.

So thank you so much for those questions that I hope I answered them.

Well, thank you, Miss Hall.

I think you you responded to everyone's comment and answer the question.

So I appreciate that, and I appreciate you sharing information about our uh district four developer summit that we've hosted.

We have always targeted black and brown individuals, they don't have to be developers, but they should have an interest in doing development in the city of Detroit because we walked them through the process on how to do it and who they can connect with to get it done.

I'm I'm glad that it was a resource and an opportunity for you to bring this project online and hopefully future projects as well.

Thank you so much.

Colleagues, any additional questions, comments, concerns seeing none, is there a motion on line item five, the 1020 public hearing.

Is there a motion to send line item five, the 1020 public hearing to formal with recommendation to approve?

Motion is in the formal recommendation to approve.

Pro Tim, do you mind turning your microphone on?

Motion is send the formal with recommendation to approve.

There's a motion to send line item five, the 1020 public hearing to formal with recommendation to approve.

Seeing no objections, that action shall be taken.

Again, thank you so much.

We appreciate you and your support in District 4.

Thank you.

Thank you.

Thank you, and thank you to the Detroit City Council.

That now closes out the 1020 public hearing.

The 1025 public hearing is to approve an obsolete property rehabilitation certificate on behalf of Stockbridge Renaissance LLC in the area of 590 East Jefferson in accordance with public act 146 of 2000.

And we have several individuals that are joining us for the 1025 public hearing.

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

Morning.

Lake Shabox of Legislative Policy Division.

Morning.

Justice Cook, Housing Unionization Department.

Good morning.

And again, if you would please raise your hand if you are speaking or presenting in regards to 590 East Jefferson.

I believe last week we had a screen full of folks.

Yes, madam chair.

I'm receiving text messages that uh from the development team indicating that their hands are raised.

Okay.

Uh desiring to be brought over.

Thank you.

All right, Ms.

Great.

If you will please promote them.

Good morning.

Madam Chairman, I'm Dr.

Hadid, I'm the CEO of Stockbridge Renaissance LLC.

Thank you.

Please introduce yourself for the record if you are on the screen.

Jeremy Sparks, General Manager of Stockbridge Enterprises.

Good morning.

Christine Rader, Miller Johnson Growth Advisors.

Good morning.

North American Construction Enterprises.

Good morning, Council Members.

Jared Boots with Miller Johnson Growth Advisors.

Morning, John Marusich from Rosic Architecture, Architect for the Project.

Morning.

All right.

If we have anyone else who joins us, they can introduce themselves as they speak.

Who do we have first to kick us off?

I will.

Thank you to the Chair Stockbridge Renaissance LLC is requesting the obsolete property rehabilitation certificate in the area 590 East Jefferson.

This application is for a certificate, and this is a final public hearing currently scheduled in front of this honorable committee before a certificate may be approved and issued.

The DEDC is present to answer any additional questions.

Thank you.

Thank you.

Thank you, Justice.

Madam Chairman, may I share my screen, please?

Yes.

Thank you very much.

Madam Chair and Honorable Committee.

Today Stockbridge Enterprises led by Dr.

Al Hadidi is requesting the approval of a PA-146 obsolete property rehabilitation exemption certificate.

PA 146 was in enacted by the state of Michigan to promote the redevelopment of obsolete commercial and or housing properties.

Per the statute, the value of the improvements is exempt from local mills at 100%, except for the DPS operating and SCT or state education tax.

The exemption may be approved for up to 12 years, and there's no reduction in the existing property taxes, and the incentive benefits are not generated until after construction is complete.

On June 18th, 2026, the Assessor's Office for the City of Detroit provided a letter confirming this project's eligibility for the PA 146 Oprah exemption.

And Madam Chair, given that we were before this honorable body a couple of weeks ago, I've actually condense uh the uh presentation.

The estimated total investment for the redevelopment of the 600 tower of the Renaissance Center is $65 million, of which $45 million is estimated hard construction cost.

The project is anticipated to create a hundred new direct uh jobs, FTE jobs, full-time equivalent jobs, $150 construction jobs, a net fiscal benefit to the city of Detroit over 15-year period of $4.2 million.

Again, the uh developer is Stockbridge Enterprises.

The project is the redevelopment or adaptive reuse of the 600 tower again, which will consist of 86 rental units, of which 18 are affordable between 60 and 80% AMI.

It will also consist of a 200-room hotel.

It will be a global brand, mid-tier upper select service hotel.

There will be 40,000 square feet of commercial and retail space, which will include a full service restaurant, perhaps several existing office tenants may stay in some other supporting retail.

And finally, there will be uh six for sale condominiums, uh, approximately 2300 square feet uh each.

Again, uh we're here today for uh uh the uh certificate uh request, uh, which will uh extend just to the hotel and the commercial and retail spaces.

The value of the incentive across all taxing jurisdictions uh is estimated to be uh $7.8 million, uh present value uh at $5.8 million, and that is based on uh uh 12 years.

The developer has agreed to work with Detroit at Works to ensure opportunities for Detroit residents.

I think there have been a number of meetings between the development team and uh Detroit at work.

Uh the developer is also committed to a unionized workforce uh and you utilizing union construction labor with respect to the improvements.

I've included an identifier map.

Uh the 600 tower is identified in red.

It's this one of the two smaller buildings on the east side uh of the other five.

Uh, and it's the furthest east.

Uh it is not owned by GM, was never owned by uh General Motors.

Um, and uh the Stockbridge uh purchased the uh uh the building through an auction.

Just want to give you uh some perspective uh on uh uh the apartments and the hotel room in the main lobby.

Uh the top two uh pictures illustrate perspectives from the living room, um, giving you some insight on on how the uh you know living rooms will look, and then living room and kitchen uh prospective uh image of a hotel room and then image of the main lobby.

Um just briefly, I'd like to go over the the revenue summary, um, the residential uh units, again, 86 units, studios, uh one bedroom and two bedrooms, um the square footage of the studios is 500 square feet, the one bedrooms at 743 square feet, two bedrooms uh just north of 1,300 square feet.

You'll note that the uh affordable units are overweighted in one and two bedrooms.

Uh in the 60% rents, uh 60% AMI rents range from $866 a month uh to $1,096 a month.

80% AMI rents range from $1,20 to $1551.

And at the far right column, you'll note that the uh market rate rents range from $1,800 to $2,400 a month.

Again, about 40, 41,000 square feet of retail projected to be leased at $30 a square foot a square foot with uh $7 square foot in common area maintenance charges uh producing total occupancy costs of $37 a square foot.

The uh the asset includes uh 240 parking spaces that are underground.

Uh underground parking spaces, the monthly rate for market rate units is anticipated to be about 200 a month and uh $60 a month for all of the affordable units, the 60% AMI units and the 80% AMI units.

Um the asking price for uh the condominiums is 1.2 million dollars, and again, just over 2300 square feet.

Uh just a quick uh overview of how we determine the uh local spending estimates as a result of the redevelopment.

Um 62.5% occupancy results in 125 daily bookings, which will produce uh over 82,000 visitors per year, um, which we anticipate will result in about nearly 12 million dollars a year in additional uh spending.

Our but for analysis um answers the question could this project happen without the incentives?

Uh of course we've taken a deep dive into the underwriting and determined no, it could not.

The project would not be able to receive financing uh without the incentives, nor would it be uh worth investing in without the incentives.

Two of uh the five uh or two of the four uh metrics uh that we use uh in determining uh if a project could meet the butt for test is debt service coverage ratio, which is the ability for the developer to pay its mortgage payments after accounting for revenues and expenditures and return on investment or uh it's it's referred to as cash on cash return as well, which is an approximate measure of an investment's profitability.

Um, underwriting uh has determined that the uh project, well, I'll start on the far left are are the DGC guidelines.

Um we the debt service coverage ratio uh should not exceed 1.5 uh on average through the life of the incentives uh and the developer return or the cash on cash return uh should be less than uh 10%.

You'll note in the middle column, the project analysis uh without incentives, um debt service coverage ratio is 1.9 uh without the incentives and the return is just a little bit north of 3%.

Uh typically you won't uh you banks or lending institutions like to see a 1.2 or 1.25 debt coverage ratio.

Um, and this the debt coverage ratio with the incentives is 1.49 on average over the life of the incentives, so it doesn't exceed the uh ceiling uh there, and the return is uh 7.27 uh over the life of the incentives, which is less than the 10%.

The existing property taxes are 471,000, but a little over 471,000 uh improved taxes, improved property taxes with the incentives uh will increase to 481,303.

And if the incentives are not approved, uh the property taxes would uh be about 1.7 million dollars.

Before I turn it over to the development team, Madam Chair, I just like to note that DEGC is recommending a 12-year term for the certificate for the following reasons.

As mentioned, the but the project meets the BUT 4 test, which is the cornerstone of our underwriting analysis.

The project meets some of the key uh strategic objectives of the city by providing affordable housing as low as 60% AMI and the adaptive reuse of a mostly off mostly vacant office building in downtown Detroit.

The project meets the fiscal objectives of the city by producing an estimated $4.3 million, uh $4.3 million net fiscal benefit to the city of Detroit and an estimated $200 million in additional economic activity over a 15-year period.

And finally, the project meets the priority economic objective of the city by the creation of approximately 100 full-time equivalent jobs and 150 construction jobs.

Moreover, the project will utilize labor for the construction of the project and the operation of the hotel.

And with that, Madam Chair, uh that concludes my uh portion of the presentation.

I'd like to turn it over to uh Stockbridge, uh and Christine specifically, and she will uh go through uh their portion of the presentation.

Thank you.

Thank you, David.

Um thank you, uh Madam Chair and members of council.

Um good morning.

We have uh we're very excited to have this project in front of you again today.

Um the Stockbridge team itself is an uh it's an organization of local investors here in Metro Detroit.

Um they have over 30 years of experience in investing in properties, turning them around, um concentration of those investments are in Michigan, but they have investments um throughout the United States.

Um, and they are very excited to focus on their first investment in Detroit and do something here um locally in the central business district.

Um the development team includes um Marusich Architecture, um, and this is a firm that has over 25 years of experience with uh tremendous experience in adaptive reuse and work here in the Metro Detroit area.

Um, and also the general contractor, North American Construction Enterprises is also uh very experienced in um rehabilitations, uh older properties, uh doing work here in the city of Detroit as well as um throughout the metropolitan area as well as outside of the country.

Um but again, they have great experience in renovation projects and housing projects as well as hotels.

So they are a great fit for the plan uh for the building.

As David mentioned earlier in this presentation, we do have a parking plan that includes tenant spaces and an affordable rate um lower than the market rate units in the building.

Um, and then we also have spaces for the hotel guests as well as um visitors to the building.

There's also an option for Stockbridge to acquire additional surface lot parking if if it if they have a need for it nearby the building.

So if they have if they see more needs for parking from what's available underground, they will um uh acquire additional property that they have an option for accessibility and universal design.

Um the team here is committed to incorporating these design standards throughout the building through the residential features, the hotel features, um, the first floor commercial.

Um you can see here um there are there are many um uh items that they're focused on here with um the wide um door openings, the uh the showers with the to allow for roll-in as well as grab bars, um, converting some spaces, making making them easily convertible for uh for should the need arise for residents.

Um and they're also looking to uh allow for the um the vision, you know, the visual and audible alarm systems, um, as well as uh broadband technology throughout the building.

Um there will be a full accessibility for mailboxes at the in the reception desk.

Um they're very again very focused on incorporating these types of elements into the design and and renovation of the building.

Sustainability.

Um there's a list here.

I won't go through each one.

Um, but again, this is a high priority for the development team.

Um they are looking to incorporate um energy efficiency, um, the water conservation is very important.

Um, and just taking a building from you know the late 70s, um, you know, construction and the you know, occupants of the building, taking that building into a you know 2026 model and all of the the ways we've uh learned um how to become more energy efficient and and use materials and and recycling um during the construction phase as well.

So we are uh very committed to the sustainability of the building and making it a much more efficient structure in the city.

As David mentioned, we've had several meetings with the um the city of Detroit's um Detroit at work team with Terry Weams to talk about not only the construction job opportunities, but also the ongoing uh full-time employment and part-time employment that'll be available uh once the hotel opens and the building becomes occupied with residents.

Um so she's been fabulous to work with, and the team here is committed as we um go forward in the process to continue that conversation and identify you know training programs and others where they can draw the workforce from.

Very committed to hiring Detroiters as local as possible to the building.

Um, and also uh, as mentioned earlier, the construction team has already reached out to union halls uh and and the trades within the city of Detroit to be sure that they are aware that there could be an opportunity coming uh for this project should it move forward.

Um, and the hope is that they will be able to work with as many local um subcontractors and union labor as possible to bring the building to fruition.

Um, community engagement.

Um, we have been uh talking to local stakeholders for the last several months to be sure that they're aware of what the plans are for the project.

Um we have letters of support um that include not only um the the very obvious next door neighbor uh with with uh the uh bedrock team um looking to uh renovate the other five um structures next door, um, but also um near Eastide Residence and Lafayette Park, as well as um Saints Peter and Paul uh Jesuit Catholic Church right across the street, um, as well as the uh downtown Detroit Partnership, visit Detroit, um, as well as the Riverfront Detroit Association and local business owners nearby.

So we the feedback that we've received uh as we've communicated the plans for the building has been all favorable.

They're very excited to see this building come back to life and the adaptive reuse and and you know, seeing a hotel and housing go in on the rough riverfront is is very exciting to those that we've talked to.

Um, and then as well as the affordability factor of the unit.

So um, so we're really excited about the response that we've received from the community.

Madam Chair, that uh concludes our presentation.

Thank you.

Okay, Madam Chair.

Um we you have before you side bridge Renaissance LLC, seeking absolute property redevelopment certificate for property located um in the 600 tower of the Renaissance Center.

This tower purchased by the developer in April 2025 is functionally vacant office building.

This 505,000 um square feet building was built in 1980 and sits on a 1.24-acre parcel on this in the city's um central business district since the pandemic, the demand for office space has diminished greatly, and as such, the property owner has created this adaptive reuse plant that repurposes the building for residential and hotel use.

The new reconfiguration will include a 200 room hotel, a 92 unit apartment and condominium, and a small amount of office space to accommodate the building's existing tenants.

This Oprah certificate is being solved for floors one through 13, which include the hotel, the office space, and other retail space and solarity to the hotel, which includes a restaurant.

The rehabilitation would include interior demolition, reconfiguration of floors, and a complete overhaul of plumbing, HVAC, and electrical systems.

This will be a complete renovation of the building.

The estimated total capital investment for this project is 64.7 million.

And it is estimated that the complete project will create 10, I mean a 100 tenant jobs and 150 temporary construction jobs.

The total value of the 12-year Oprah is 522,711.

Based on the investment in jobs, this project is estimated to provide the city of Detroit a net benefit of 4.3 million.

And then um and for all the tax team jurisdictions combined, a net benefit of 18.2 million for all of the tax incentives combined.

Thank you.

Thank you.

All right.

So it looks like that concludes the presentation.

And we will kick it off with questions.

I'd like to um follow up with the question that I did ask two weeks ago relative to green storm water infrastructure, uh, considering the proximity of the building to the Detroit River.

Um anyone have any additional information relative to taking stormwater uh out of the system and um addressing it in a different way?

I think I'll speak to that, madam chair.

Uh we are working with D.

Clementy Siegel currently, who's the uh original uh MEP mechanical electro plumbing engineers, and in the part of the process, we are in discussion collecting the stormwater from the roof, the existing tower, as well as the platform of the podium, and either containing it in and some capacity or re um redistribute it into a great water system for use within the uh context of the uh uh is an example of toilets and uh other non-depositable um features of the um building use.

All right, thank you for that.

Um I did just want to ask another question in regards to the elevators.

How many elevators are in the building that will service um the hotel?

And are there separate elevators that will service the apartments?

I don't believe so, but how many um in total are there?

Right now there's a total of eight elevators that formally service the office tower, formally dedicated to the um residential component and four will be dedicated to the hotel component.

Okay.

All right, thank you.

Colleagues, any questions, comments?

Pro Tim Young.

Thank you.

Uh, appreciate your presentation.

I just want to say first and foremost, my team asked for the uh actual uh presentation for this, and they couldn't get that.

So I'll feel a little bit left out, feeling like you guys don't care about me.

You know, I am, you know, I'm sensitive about stuff like that.

So let's get to work on that.

Other than that, um I need to ask you really quickly.

Do we have an analysis?

Uh first of all, let me say great presentation.

Uh, I'm all four.

I just want to know.

Do we have an analysis of how much tax revenue this is going to raise per acre?

Um, and do we know how much the it's gonna cost um for tax incentive per job and tax incentive costs per resident jobs?

So citizen Detroit getting those jobs.

Do we have that analysis in this project?

Uh through the chair.

Um council member Young.

We could get you that information.

I do not have it at my fingertips.

Uh I think uh Miss Barcliff indicated the acreage.

And I don't I don't have it on at my fingertips, but the the net fiscal benefit to the city over uh the 15-year period uh is uh about four point two seven uh four point four point two seven million dollars.

And that's for the entire building.

Uh and then we could follow up with uh uh abatement your second question.

Can you remind me of your second question again?

Uh yeah, how much does it how much does it cost uh incentive?

How much uh tax money are we?

No, excuse me, how much are we paying of incentives?

How much does it cost?

Incentive per job.

So how much we we spend on incentives per job created, and how much are we spending stores incentive per resident jobs?

So how much we're spending it for incentives or via how many Detroiters are getting jobs.

Do we have that number in breakdown?

Uh we can get that to you, sir.

The the value uh of the uh Oprah is uh uh over the 12 if if uh the 12-year uh request was granted would be $7.8 million dollars, and then so we can determine the the per job uh number.

No problem.

Send that to you right away.

No, no problem.

Uh my my next question I wanted to ask is I wanted to ask a question about um spin-off jobs.

I wanted to ask a question about small business creation.

Um I also wanted to ask uh about area deprivation index in terms of how this is going to how what the the impact that this project will have in terms of areas that are living in poverty that are impoverished uh economically.

The reason why I'm asking that is for two reasons.

One, I'm asking that because 45% of the city, almost half the city cannot afford a $400 emergency.

Okay.

That is what we're talking about.

So these are serious, dire times economically, and so people need to understand what this project is going to do.

I know it's gonna have a positive impact.

Okay, I'm not I'm not trying to say this to you know be hypercritical of this project.

I'm not.

I'm saying this because people need to understand what this is in terms of how this is gonna impact their day-to-day life.

It's gonna have great impact, affordable housing, but it's also gonna have an impact in terms of jobs created, to the small businesses that are gonna start up in terms of revitalization, and we need revitalization right here on Jefferson.

I drive up and down here to work almost all the time.

I see those little abandoned stores where they used to have places, you know, the butcher, the baker, the candlestick maker, all that.

They used to have that, it's not there anymore.

And so this project is gonna revitalize that.

And so people need to know what it can do and what the multiplier of that is.

And do we have those statistics available?

If not, I look, I'm gonna support this, but we need to get those that available for the public.

So I understand the investment that we're making, and how it impacts their life, so we can connect those two together.

Because there is a connection.

It's positive.

I don't get to say that all the time about certain stuff.

Uh through the chair, uh, thank you for that, uh, member Young.

Um the one of the exciting things about uh hotel uh development is the fact of the additional economic activity generated, right?

And um, you know, I I mentioned earlier in the presentation, uh 200 rooms at 62.5 percent uh occupancy uh gives you an estimated 125 daily bookings, right?

And if you take that 125 daily bookings and you have the estimated 1.8 visitors per booking, uh you got 82,000 people uh coming uh through that uh hotel on an annual basis.

And what we said what we project, and this is based on uh an HBS uh study that was done for uh nearby convention center hotel.

Uh we are assuming that each visitor is going to spend about 145 in the local economy, and that results in about an estimated 12 million dollars a year uh over a 15-year period.

That's 200 million dollars uh in of uh additional economic activity.

That's money spent in restaurants, that's money spent in stores.

Um with that type of additional economic activity, uh business owners, restaurant owners, store owners, uh are able to hire more people.

Um so uh you know, I we do have the numbers.

Um we'll you know, I presented some will get you a written response uh immediately.

Uh, but we are looking at uh quite a bit of projected additional economic activity given the the uh uh hotel rooms.

Um the uh jobs uh we anticipate will be you know but on average about fifty-two thousand dollars a year.

Um so they're good paying jobs.

Uh but again, we can get you uh answers to all your questions in writing.

No, I appreciate that.

Thank you.

And then this is my final question to wrap this up.

Do we know what this was gonna do?

The success of this project is gonna have the impact in terms of uh venture capital and private equity in terms of investment overall for the city from that perspective that is a great question.

Um and and I'm glad you ask it through the chair.

Uh this will have a positive impact with respect to uh aiding to attract venture capital and as well as institutional capital, and this is why uh this is a project that uh the manner in which it's finance, the capital structure we normally don't see, it's just equity and debt.

You got a sixty-five million dollar project, 40% of the capital stack is um just pure equity.

The developer is placing a bet uh a well reasoned, well thought out, calculated bet on the success of the adaptive reuse.

And when you start to see uh when the broader capital markets start to see and understand that we're starting to do deals here uh on a very limited basis, I might add, but we're starting to do deals here with just debt and equity, incentives, of course, but there's not a cap, there's not a gap where we're trying to go to the state and get MEDC money or um Invest Detroit or any of the CDFIs.

Um this is again pure equity and debt, and that sends the right signal to the capital markets that uh you can you can make a deal work with incentives, but you don't need a lot of gap-filling uh capital to uh round out the capital stack.

So sorry I'm a little long-winded, but I love questions uh like that, and and I appreciate the the the question.

No, no problem.

I I appreciate it.

This is a lot to be long-winded about.

I mean, this is really you know, once a lifetime, you know, game changing product, you know, um project, excuse me, you know, right along the riverfront, and you're providing affordable housing.

I I don't know any other city where you're gonna provide affordable housing trying to find that and you know, Chicago or LA or somewhere like that.

So this is a lot to be excited about.

So I appreciate it.

Thank you, madam chair.

That's that's all my questions.

Thank you, everybody.

And just lastly, uh through the chair, council member.

I I did just send over the presentation and the leak.

I I'm assuming he's received it by now.

We got it, thank you.

Okay, thank you, sir.

I'm grateful for your questions.

All right.

Uh we will now turn to public comment.

If there is anyone joining us who'd like to make a public comment regarding the public hearing we just heard, whether joining us in person or virtually, please raise your hand.

Going once, going twice, going three times.

The collection of public comment has now concluded.

Ms.

Great, how many hands do we have raised?

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

Thank you.

If you will please set the clock for one minute, 30 seconds.

Who do we have first?

Our first caller is Marguerite Maddox and Scarlet.

Miss Marguerite Maddox and Scarlet, you have the floor regarding the 1025 public hearing.

Um we um the time goes.

That we'll be valuable.

On the university and the EVAs that will be the people I do and be able to be shining doors button building and the um drier and the parking people be poking at the hand the underground and we can I didn't have the A seven you can get the ADA rooms I do know that this will be a dream come true for all people who want to choose to live on the waters and the window we got we got to put a dream of mine and two make sure that we get out of the ADA friendly thank you thank you the next caller our next caller is owner papa owner papa you have one minute thirty seconds for public comment regarding the public hearing yes thank you and through the chair Carl and Hughes may I be heard yes thank you uh Mr.

Howell I'd like to ask you um will the million dollar condos also receive the same incentive for rents um and um I would also like to ask you um PA 146 is for obsolete properties I don't see the rents in ever being obsolete and in this district where we have all of this money we've spent to build all these buildings I'm absolutely sure that it could not be an obsolete district I would like to call Mr.

Alvin Horn to ask him how he has the um by charter mandate is not qualified but labels this as a obsolete obsolete um property or district um I would like him to come to the table and tell us how he came to that conclusion because that is the first step to this the assessor has to deem it obsolete obsolete and I don't believe that he has and Mr.

I don't think they need the incentives.

I thank you.

The next caller.

Our next caller is Black Bag.

Black Bag, you have one minute 30 seconds for public comment regarding the public hearing.

Okay.

Now I just listen to another public hearing in the city of Detroit, Michigan.

And it's about housing on the international waterway.

If I'm reading it so I understand this correctly.

In the background, you hear some talking.

But that's not important.

What's relevant is this public hearing that's been held by two three TDN public officials here in the city of Detroit, Michigan.

I'm not lying.

And before it's I'm interrupted, or it's about my freedom of speech and speaking about this.

I'm talking about the topic of cheating in public officials public hearing, Mr.

Crowley.

Yes, it does.

It has everything to do with this public hearing, Letitia Johnson.

It has everything to do.

I will conclude your time unless you'd like to make a comment in regard to in regards to the public hearing we just heard.

I think this whole matters need to be tabled.

That's what I think.

I think the whole situation needs to be tabled, and we need to deal with the TDD and public officials running this hearing.

That's what I feel like.

Thank you.

The next caller.

Our next caller is William M.

Davis.

William M.

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

Good afternoon.

Can I be heard?

Good afternoon, yes.

Okay.

First off, I I didn't hear anything about any real storm management, you know, for the storm stormwater.

Um I think we it still needs something.

Uh uh, what is it gonna be doing with the water that's falling on the structure and and the area around it?

Um I didn't hear anything about possibly green energy uh to defer some of the you know, carbon that's gonna be generated from the the traffic and what have you.

Uh I I'm not sure what I heard as relates to parking uh for hotel guests.

Did I hear that the hotel guests are gonna be paying $50 a day for parking?

Uh also would this facility would they also be paying drainage fee?

I know I have to pay drainage fee on my little quarter of an acre.

So I wonder will they be paying drainage fees?

Uh those are my questions.

Thank you.

Thank you.

The next caller.

Our last caller is Cindy Dara.

Cindy Dara, you have one minute, 30 seconds for public comment regarding the public hearing.

Yeah.

Uh do they really need to get any tax sometimes?

The first one I ever heard of was Kenny Cockrail was the only one who voted against it when he was on the council to give a tax incentive to the fisher apartments right there on the river.

I don't see why you have to give tax incentives for riverfront development.

If people that's there's only so much water, there's only so much river.

That should be a competitive thing that people are gonna want, and you don't have to incentivize it.

So I don't know why you're doing it.

Uh I I tell you the Renaissance, my mother said they're uh so I got confused about it where I was in the place next time.

She came point put her in the pot train, which was a more human hotel.

So I I'm glad you're able to find a new use for it.

But I also remember when I'm in Canada, you can drive along the river uh uh along the road and see the river in Detroit.

They keep they tear down the cement silos and then park belt parking lot so you still can't see the river.

That's about it.

Excuse me.

Thank you.

I believe that concludes public comment.

And I did hear a number of questions.

Who would like to begin responding?

Madam Chairman, may I respond to some of the questions?

Yes, please.

Thank you very much.

I I really appreciate all the questions, especially the first caller.

I was touched with her statement saying that this is a dream coming through.

I would love this project to see the light of day and have it completed and have her dream come true.

This project will not be possible to happen without this incentive, because the current situation, it's almost vacant.

Been on the market for years now, before we owned it and after we owned it.

No interest for anybody to come and occupy it.

And the current tenants, probably at least one of them might be leaving.

So as far as it is being obsolete with the current situation without major renovation and repurposing and using our assets, and this situation, it is not gonna be possible to happen.

And we at Stockbridge also to answer Mr.

Young's question.

What this hotel, an apartment, small apartment complex gonna bring is an opportunity for new small businesses.

I could name a few immediately, security, housekeeping, catering, parking lot management, and other service areas.

All these are possibilities for new small businesses, and we would love to partner with any small business that has the innovation, the the talent to make this successful.

So finally, about the drain, we will make every effort possible under the guidance of our architect and engineer to look at the current structure that is part of a much bigger structure, as you know, of the five big towers on the Renaissance and Tower 500.

This is not one building that's isolated from the surroundings.

We are part of a complex structure as far as heating, cooling, electricity, water, and sewage.

If there is any way possible to divert the drainage and make it better, we will definitely do it if it's affordable and the cost will not ruin this project.

So we will look at it, we will discuss it with the engineer, and if it's possible, there's a way that's possible.

I'm not an engineer, so I cannot give specifics.

So if at all it is possible, we will try to do it.

Thank you.

Thank you.

And who would like to go next?

And I will say too that um I'll look for Mr.

Marusich to identify solutions for that because when when our system gets overwhelmed, it creates a tremendous challenge for a large percentage of Detroit households.

Well, Madam Chair, let me address that a little bit more than uh Dr.

He's right.

It is a very significant uh engineering issue and the dynamics of this building being a high tower as it is, as well as the podium uh aspect of it.

Uh there usually this is regarded as a what's called a gray rotter, gray water recovery system, where it captures the water, it filters it, and it diverts it into the areas of use, reuse, um, such as I say, toilets and other non-drinkable areas.

So it has to be engineered, and it will be engineered, and actually it's to the benefit of the uh uh of the system because there's value to it in the Detroit's uh water and sewage uh takes in consideration how much uh we are the reuse is taking place, and therefore it lessens the amount of cost that uh doctor's uh water bills are gonna be.

So water and sewage bills.

So there's a uh balance factor between the cost of implementing a system that's successful to what the dynamics of the building, as well as the recovery benefit um that then translates into the Detroit water and sewage system.

Um so let's just say it's a lot of um cities are requiring this as a part of their um uh new building construction as well as adapter use, and it's just normal part of how we evaluate engineering um considerations in the redevelopment of any building or new construction.

Thank you.

Um Madam Chair, if I may, uh Ms.

Hughes asked uh me to address uh a couple of things and and um one of the things I think she she asked or or mentioned was the assumptions that we use, and um I think it was with respect to the uh added economic uh activity.

Um and then she mentioned the net fiscal benefit as well.

I think uh it we put together a slide to actually detail how we've how we come up with those estimates.

And uh we take the data, uh we we took the data with respect to uh this particular project from uh uh HVAC HVS study that was recently done for uh watermark, uh the watermark uh convention center hotel.

HVS uh is a uh nationally recognized uh firm um and um you know we've we felt very confident uh in the data in the assumptions that we use.

Uh now with respect to, and then that's just how we underwrite.

I mean, we're very conservative with respect to the net fiscal benefit, uh the amount of 4.3, I think it's mostly uh in income tax um given the layering of tax abatements uh coupled with the TIFF capture.

Um the net fiscal benefit uh is primarily fueled by income taxes.

Um and uh lastly, uh I did my one of my team members came in my office and and gave me a number with respect to council member uh Young's question about the incentive amount uh per job, and it's 10,68 dollars for uh all three uh incentives that are contemplated.

Thank you.

Would anyone like to um respond in regards to accessibility for the project?

Yes, I will, Madam Chair John Marusetch, Russian architecture.

I like to have everyone to know and be assured that uh we are going to be fully universally accessible.

It's not only a state of Michigan requirement, and the standards have been set forth uh rather rigorously, and uh they are overviewed very rigorously, but it's also a department of justice.

That's a federal issue by which um certain aspects of design have to be fully accessible.

In this particular case, there are um three units that are gonna be fully ADA accessible, 100%.

And then the remaining units are set up and established so that they can be adapted in the event that they're required to be performing to ADA accessibility.

All of the uh common areas are fully accessible, all the bathroom common areas are all within the context of the compliance to or will be a context of the compliance of accessibility, both in the stalls, the toilets, the uh the sinks and the like.

The parking is always a part of requirement.

One space per 25 is to be a handicapped accessible space.

The elevators and all of the uh accessible, let's say operational components of an elevator as well as switches and lights and fire strobes all have to be within a certain component of universal accessibility and audibility.

So I'd have to say that not only are we committed to that, we're mandated by the state and the federal to be in conformance to those standards.

So I'd like to make sure that the individual who's very concerned about that is understanding that uh we are in full um uh let's say desire to make sure that that's met.

And if we're if we miss something, the state and the federal uh government authorities will make sure that we're in conformance.

And I um through the chair, I'd like to also add here um that the way that this pro forma was put together and the way that the design was presented, is that this development is going above and beyond the Detroit ordinances for accessibility.

So there are more units.

Um there are more units that'll be accessible as well as then making the rest of the units uh fully uh uh able to become um accessible units.

So um I wanted to add that as well, John.

Um more thing I wanted to mention as well.

Um Mr.

Davis asked about the hotel parking, and I want to confirm that the plan is that it will be $50 per night for hotel guests, um, and which is uh from our research uh a competitive rate um for hotel parking in the central business district.

Thank you.

I would like to make one more um comment by me.

Yes, I'd like to address the um the uh question uh regards to this this building be obsolete property.

I'm currently involved with a number of projects that are office buildings that are within um 30 and 40 year old.

I got one America office building headquarters in Auburn Hills, 210,000 square feet, been vacant for 10 years, and we're converting that to residential.

Uh we have a project in Ann Arbor, Michigan that we're converting an office building dedicated to one particular use, and we're converting that to residential.

I have a project, two projects in Farmington Hills that they've actually changed the zoning ordinance to allow without um going through special conditional use to be converted into residential, and the primary reason for that is as stated by Mr.

Howe and others that the market for office buildings has decreased to a point where these buildings are gonna lay vacant if they're not adapted.

So they are obsolete properties, and the reason for that is that the market has shifted away from offices, and new market for the need of residential is taking place.

It's cost effective to build um a renovated building into residential as opposed to ground up.

So I just want to make sure it's a trend, it's a nationwide trend, it's not even a local trend.

Thank you.

Colleagues, any additional questions, comments, anything I missed.

Uh Pro Tim Young.

Um, but um I wanted to ask a question about the per um the incentive per job costs.

I just wanted to say, does that also include incentive per resident job cost?

And what is the comparison of that between uh cities of our size?

Well, that's gotta be in the top five.

That seems like a lot to me.

Yeah, it's it's just through the chair, uh if I may, uh the 10,600 is the incentive amount per uh jobs anticipated at this building.

Um we could do some more research, uh, member young with respect to residents.

Um our uh economic analysis uh focuses on the uh property itself.

So the 10,600 is is instead of per hundred jobs anticipated.

Yeah, and I'm not blaming the the the project, the people of the project.

I think that just goes to show uh why we need a reform of our tax that we will, you know, if if they would do what I told them to do about that land value tax, but that's another discussion for another day.

We're not gonna have that right now.

But uh yeah, I you know, I just I I just think that is an awful lot.

And so it definitely just goes to show um that we need reform in that area, but also goes to show why this project is important, so people understand, you know.

So we have these type of discussions in terms of why we're doing it and the positive impact, but also the reforms that we need to um to deploy for us to have a better, more affordable and more accessible city.

So uh thank you so much, sir.

I appreciate that.

Uh that's all the questions I have, madam chair.

Thank you.

All right, colleagues.

Line item six is also um part of line item eight.

Um, so because we have these items and several things moving together, is there a motion to bring line item six back as a line item in two weeks so that they all move together.

Oh, just they're all the actual project.

Wrong, the actual project.

All right.

Uh motion to bring back line item six in two weeks.

Motion.

There's a motion to bring line item six back in two weeks as a line item.

Here are no objections, that action shall be taken.

This now closes out the 1025 public hearing.

Thank you very much.

Thank you.

I'd now like to call back to order the 1035 public hearing.

The 1035 public hearing is regarding approval of the Brownfield Plan of the City of Detroit, Brownfield Redevelopment Authority for a Stag Bridge Renaissance Development for the same project.

So I hope everyone is staying on the line.

And if we can uh Madam Clerk, if you would just note that it is the same presenters from the public hearing that we just heard.

Clark was so note.

Thank you.

You're welcome.

And who would like to?

I do not see Mr.

Cook.

Who would like to kick us off?

Oh, Madam Chair.

Uh this is Brian Gosberg from the Detroit Economic Growth Corporation and the Detroit Brownfield Redevelopment Authority.

And here to present on the Brownfield plan for this project.

You may proceed, Mr.

Vosberg.

All right.

Thank you.

If I could share my screen, I have presentation.

And I will keep it brief.

I know a lot of material was covered previously by the previous public hearing.

So I won't go over every detail of this if it was previously covered.

But this is the Brownfield plan for the Stockbridge Renaissance, also known as the 600 Tower of the Renaissance Center, the farthest east tower.

And so first I'll explain how Brownfield TIFF works.

Brownfield TIFF works to read of reimbursed developers for costs they have to pay for up front that they wouldn't otherwise have to pay for to if they were to redevelop a greenfield site, say on the edge of the suburbs.

So that will be continue to be paid to all taxing jurisdictions.

Then the increase in taxes, the yellow bars here on the chart, those will be captured by the developer to reimburse them for costs that they're paying for up front with their own funds.

So I'll talk a little bit about uh those costs for this.

Uh first I wanted to talk about uh the building right now.

Uh again, here's the the same property that was discussed previously.

Uh it's a largely vacant uh office building.

Um, and uh so it'll be redeveloped into the the hotel use uh floors one through 13 apartments on floors 14 through 19, and then the condos and uh residential condos uh to be more precise on floors 20 and 21.

And um so the way that this brownfield plan would work is that there's housing development activities.

Uh so there will be out of the um 86 total uh apartment units, uh 18 of them will be provided as affordable uh with six of the units uh being or excuse me, five of the total units being available at 60% AMI, uh, and then uh 13 of the unit being provided at 18 uh or 80 percent AMI, and that will be a 30-year commitment being made by the developer, uh, and those uh affordable units will be evenly spread across the studio one and two bedroom units as well as spread across all uh of the floors, uh floors uh 14 through 19 of the apartment uh portion of the project.

So faculty what's happening is that the increase in taxes on this uh development is being captured to provide uh the affordable commitment uh by the developer of it.

So there's approximately 11.5 million dollars of the total 16.7 million dollar uh brownfield TIFF request is going towards uh the affordability uh over the 30 years for those uh affordable units at 60 and 80 percent AMI.

Uh there's additional costs, uh the construction related cost of the developers requesting uh for uh the conversion of the office space into the residential uh use uh for the project.

So the brownfield TIFF again will uh only be going for the affordability uh the of the building.

Um and as you heard uh previously, the there's also the Oprah and NEZ request uh will be a part of this.

Um the project uh is subject to the executive orders, uh so 51% Detroit residents on the construction.

Uh that uh executive order will have to be followed uh by the developer uh for this brownfield TIFF as in addition to the 30-year commitment of the uh 60 and 80 percent affordability.

Uh did hold a neighborhood public hearing on Monday, June 1st.

Uh the minutes from that public hearing are included in your uh submission to city council.

Uh so with that, I will uh conclude uh my presentation.

I think a lot of the other details have been discussed uh in the previous hearing.

Thank you.

Yes.

Anyone else uh madam chair?

The the developer uh believes that uh most of their uh items have been covered as well.

They're happy to answer questions uh later if council has any.

Thank you.

Mr.

Vosberg, can you um just speak to the capture for the school millage?

Um is that provided by the state's school aid fund to the school system?

Yes, ma'am.

The let me move look at the brownfield plan just to double check those figures.

And yes, the the school operating fund, um, the school operating tax and the state education tax with the SET as it's often uh called uh is captured by the plan.

Uh that uh the reason uh or with this, uh the still of the Michigan State Housing Development Authority um would be uh pledging to make the school district whole in the event that there was any loss experienced uh by this brownfield plan for the project.

Okay, thank you.

Colleagues, any questions, comments, concerns seeing none.

We shall go to public comment.

If there is anyone joining us who'd like to make a public comment regarding the public hearing, the 1035 public hearing, please raise your hand.

Going once, going twice, going three times.

The collection of public comment has concluded.

Ms.

Great, how many hands do we have raised?

Madam Chair, there are three hands raised for virtual public comment.

Thank you.

If we can set the clock for one minute, 30 seconds, and who do we have first?

Our first caller is Black Bag.

Black bag, you have one minute, 30 seconds for public comment regarding the public hearing.

Yeah, as it relates to these brown field uh tax credits, there should not be um you guys, and I mean Gabriella Letitia and Carlman voting on any or approving any matters any more have to do with City of Detroit's tax credits, finances, payments, checks.

Now, the Brownfield tax credits are usually well designed to be uh a benefit to people coming in to develop projects, but what has been used for is not and what I've been watching take place, it's not been going towards the majority of the blacks in Detroit.

How many majority blacks get brownfield tax credits?

Get brownfield tax credits.

And I'm not racist, I don't have a racist bone in my body.

I've got brands from our nationalities.

Uh, but what I'm seeing is I see two blacks, African Americans and one Latino voting on stuff, and they've been teething in by uh black.

Thank you.

The next caller.

Our next caller is Marguerite Maddox and Scarlet.

Miss Marguerite Maddox and Scarlet, you have the floor regarding the 1035 public hearing.

Yes.

Thank you.

Thank you.

The next caller.

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

Owner Papa, you have one minute 30 seconds for public comment regarding the 1035 public hearing.

Good afternoon through the chair, may I be heard?

Yes.

Carolyn Hughes.

I'm still stuck on you know Alvin Horne situation and deeming this obsolete property.

You you guys call people to the table all of the time.

Why don't you call him to the table and ask him how he arrived at this property being obsolete?

I disagree.

It is not obsolete property.

It is property that was just in service and is in service today.

So it does not fit the obsolete district.

And if this district is obsolete, then we've spent a whole lot of money for an obsolete district.

He said 4.3 million over 12 years.

Well, and I also asked him, were the people and the million-dollar condos going to get a tax uh incentive as well.

And I did not get an answer to that question.

Um I am due answers to a public hearing, and we are also due the documents, which are missing on all the public hearings, which whether you get them or not, I'll come in young.

We all deserve to see the public hearing documents.

And for that reason, I think we should table this until we get Alvin Horns testimony on why he can call this an obsolete property and and the documents that are uh being presented in this um these hearings.

Uh, thank you.

Thank you.

That concludes public comment regarding the public hearing.

And is there anyone who would like to begin with the responses?

Um Madam Chair, I can address uh the questions about uh the at least from the Brownfield plan standpoint, the qualification of less than uh the question about the condos.

Uh and then I think the developer would be the best to answer the questions about accessibility that Mrs.

Okay.

So uh regarding the uh obsolete qualification for uh the brownfield plan.

Um here that uh brownfield plans uh can qualify through obsolescence.

However, uh this particular brownfield plan is hasn't requested uh to be qualified as obsolete and requesting uh qualification through the uh housing property qualification.

Uh so by providing affordable housing uh again at the 60 and 80 percent level in this particular project, uh they are meeting the state's requirement uh to qualify for the brown plan.

Um and then as far as the condos, uh again for the speaking just to the brownfield plan again.

Um will not be receiving any brownfield uh incentive.

Uh in this case the condominiums as well as the hotel spaces and the market rate apartments, uh the taxes paid by those are actually subsidizing uh and making possible this affordability uh agreement through the Brownfield uh housing TIFF plan.

So that is uh why this or how this this program works and why this uh housing TIFF uh Brownfield plan is being offered.

With that, I can turn over to the development team to talk through the uh accessibility questions for the building.

Uh thank you, uh Brian.

Um I would like to ask John if he could jump in on some of the accessibility questions.

Oh John Rusich again from Russian architecture.

Uh first of all, I'd like to uh apologize for making reference um to the term handicap.

I know that that's an old reference, and uh uh nomenclature changes over time from the perspective of different people, and I was accessing a um yeah, a narrative comment that uh is not passate.

Uh I would like to again uh restate the uh what we had stated in the previous um meeting on the Oprah that our project is fully universally acceptable, accessible to all individuals in every aspect that the federal government requires, the state of Michigan requires, and as stated earlier by Christine, we are in excess of that criteria.

Uh it's my personal practice of doing so.

Uh, it was early stated I uh was a teacher at um state university in interior architecture, and I had a class specifically dedicated to these issues, and uh continue to be an advocate for that, and I will do so throughout the course of this project.

All right, thank you.

And we can certainly provide the um great greater details to Ms.

Maddox.

Um and to Ms.

Hughes.

We are going to bring this back in two weeks and we can get the responses, the direct responses to your questions relative to obsolescence um and the um condo units.

Pro Tim Young.

Thank you, Mayor President.

Uh I was a man chair, sorry.

Uh I just want to say in Detroit functional obsolescence means a building that is no longer economically useful in its current state to qualify for incentives like the obsolete property rehabilitation act or the brownfield tax increment finance.

A structure must be rendered functionally or economically obsolete due to outdated design, inadequate building systems or market shifts.

So it has to have outdated infrastructure like outdated HVAC, plumbing or electrical or inadequate that are inadequate for modern functional standards, it cannot be costly, cannot be cost-effectively rehabilitated without substantial structural modifications, functional inadequacy, the property's layout or design, e.g., poor floor to ceiling heights, lack of modern loading docks, or inefficient square footage distribution makes it unsuitable for its original or intended modern use, and then finally economic impracticability.

The cost to renovate or restore the building to an economically viable condition exceeds the projected market value after completion.

Thank you very much, Madam Chair.

Thank you.

Any additional questions, comments or concerns?

Seeing none.

Is there a motion to bring line item 8, the 1035 public hearing back in two weeks as a line item?

Motion.

Hearing no objections, that action shall be taken.

All right.

Thank you all so much for joining us this morning.

This now closes out the 1035 public hearing.

Thank you.

Thank you.

Thank you.

Thank you.

Thank you.

And we will move on to unfinished business.

Beginning with line item 9.1.

Line item 9.1 is property sale of 1080, West Chicago.

My apologies before we go to line item 9.1.

Colleagues, I'd like to call the 1030 discussion to order.

The 1030 discussion is an opportunity for any impacted taxing jurisdictions to provide public comment regarding the Brownfield plan for stock bridge renaissance redevelopment.

That is the project we just heard most of the morning.

Anyone joining us for the 1030 discussion?

Ms.

Great.

Do you see any hands raised?

Madam Chair, the only hand that is raised is Cindy Dara's.

Okay.

Thank you.

Ms.

Dara does not represent a taxing jurisdiction.

So we shall close out the 1030 discussion.

And we will now move back to unfinished business and line item 9.1 property sale of 10800 West Chicago.

This is the Planning and Development Department has received an offer from 3M Real Estate LLC.

Colleagues, any questions or comments?

If not, is there a motion on line item 9.1?

Motion line item 9.1.

Is there a motion to approve line item 9.1?

Motion to approve line 9.1.

There's a motion to approve line item 9.1 and send to formal with a recommendation to approve.

Hearing no objections, that action shall be taken.

Line item 9.2 is a requested property transfer of 1728 Moran from the Detroit Land Bank Authority to the City of Detroit.

Is there a motion?

Discussion.

Discussion.

Pro Tim Young.

Why are we bringing this back for a date to be discussion?

Where are we not with this out?

I would love for you to have a conversation with your colleague, with our colleague.

Um in district three.

Uh you you you got you maybe.

Yes, project.

Can you give me some highlights or can you give me some cliff notes?

I don't have any.

This was a request to be brought back essentially in September when we return from recess.

Oh, okay.

And so I'm just bringing it back for a date to be determined.

Okay.

And it will happen in September.

So this yeah, okay, that was my concern.

Like this will come back.

It's not gonna go like that.

Oh, sure, sure.

The never never land.

All right, thank you.

All right.

Uh motion to approve.

Is there a motion to bring line item 9.2 back for a date to be determined?

Oh, sorry.

Well, motion to bring back line on 9.2 to for a date to be determined.

Hearing no objections, that action shall be taken.

Line item nine point three.

Line item nine point three is property transfer between the city of Detroit and the Detroit Land Bank Authority.

These are district four properties.

I have um had a conversation with the administration about this request.

Is there a motion to send line item 9.3 to formal with recommendation to approve?

Uh motion to send line 9.3 or formal recommendation to approve.

Hearing no objections, that action shall be taken.

Line item 9.4 property transfer between the city of Detroit and the Detroit Land Bank Authority.

These are district six properties.

Is there a motion to send line item 9.4 to formal with a recommendation to approve?

Discussion.

Discussion.

Pro Tim Young.

I support this.

I just suggest that at some point in time uh we have the land bank authority come before us and present us with a plan of what they plan on doing with these properties and you know what they plan on building, or do they have any idea with what exactly they want to do with this in terms of is it placemaking?

Is it more parks?

Is more pocket parks, is it more wall businesses?

Are we gonna more housing or we're gonna revitalize corridors?

I just like to kind of know what we're doing with these properties.

So other than that, I'm done.

Thank you, Madam President.

Pro Tim, we do have John Trung here.

I'm not sure if John Trung can speak to that or if he would request that the land bank um share any details.

Yeah, Mr.

Trung, are you able to respond to Pro Tim's questions?

He's being promoted to panelists now.

Thank you.

Good afternoon.

Good afternoon through the chair.

This is John Trung, the housing revitalization department, the real estate division.

Um could I get the question or the the number?

I know there's there's a few that are uh specific to these various true ups or land transfers.

This is line item nine point four.

These are the district six properties.

Pro Tim Young, would you like to restate the question?

Sure.

Uh Mr.

Trump, good to see you.

You got a haircut, look sharp, man.

Uh I like it.

Uh listen, uh, I just want to know for the properties nine point uh for in the district four or district six.

I just wanted to know uh what the plan is, just overall.

You know, what are we planning on doing with this?

Yeah, you know, in terms of is it is housing, is it placemaking, is our are there revitalization of corridors, is it pocket parks?

You know, is it uh more municipal services?

What just exactly what are we planning on doing?

I I really would like a presentation from the land bank in terms of what this is, but if you can kind of just explain, I appreciate it.

Yeah, I could give uh quick overview for district six specifically.

The city's receiving four parcels as part of uh BNAC park expansion.

So and then even take the step back.

Overall, I mean, we've been doing these trips since uh you know the existence of the land bank where we exchange uh you know certain properties.

Sometimes um, you know, whether we have, especially in district six, there's a few properties going to the DLBA that are zoned M4, but they are really residential lots.

And so we, you know, whether we get applicants that try to buy them for a hundred dollar side lot, we'll send it to the land bank to uh accommodate that because I think as you know, um our pricing system sometimes can be more expensive.

Right.

And so we try to sometimes it's reactionary, sometimes it's proactive, but generally most of the properties going to the Detroit Land Bank or are for um those types of sideline situations.

Most of what the city's receiving in general has been for uh parks at the request of GSD.

I think uh, you know, scattered throughout these various transfers are stuff that uh DPW needs for you know certain right-of-ways.

There's also um, you know, there's the big one uh in city airport, and we're getting those properties.

Uh there's also times that we're receiving properties from the land bank uh to support the public private partnership team and HRD for future RFPs.

Maybe we own a majority of commercial corridor, and then you know, maybe the land bank owns some residential lots in the back that could, you know, be part of the site plans for parking or just you know greater expansion of it.

Um all these two, my team does send uh, you know, now specifically on the letters, a quick overview as well as the list of properties as an exhibit, you know, it'll say destination, so it's whether it's going to the city or the land bank, um, you know, property transfer requested reason.

So that tries to give you a quick narrative, and then of course, council district and zoning.

Um and then property class, we kind of, you know, it may say a M4, but it will describe it as a non-residential lot or something like that.

But uh happy to drill in any of these, and then in the future, uh, we can be, you know, certainly happy to have the land bank join us too.

All right, sir.

I appreciate that.

Thank you very much.

Uh thank you, madam uh chair.

That's all.

You're welcome.

Um member Santiago Romero.

Thank you, madam chair.

Um, thank you for the question.

Uh Pro Time we ask this question all the time for the properties in District 6.

I want to say thank you to the city for working together to uh put together the land for being a park.

This is definitely needed in Chatsey Condon.

I know this is something that bridging communities has been working on for a while now.

Um so yes, uh Pro Time more pocket parks, more park development, more neighborhood developments in the city.

Um and just really grateful to see things like this happen.

Um with that, Madam Chair, motion to approve 9.4 sent to formal with the recommendation to approve.

Um with that, madam chair motion to approve 9.4 sent to formal with the recommendation to approve.

There's a motion to send line item 9.4 to formal with recommendation to approve.

Hearing no objections, that action shall be taken.

And Pro Tim Young, I just want to uh share with you the properties in line item 9.3 that are in district four are um assembling additional land to um to entice a retail outlet to to come to the city and in district four.

So thank you for your inquiries and your support.

All right, line item nine point five is property sale of one three one zero zero and one three one one six curchable.

I have had an opportunity to meet with the developer as well as Mr.

Trung and uh colleagues, is there a motion to send line item nine point five to formal with recommendation to approve?

Motion hearing no objections that action shall be taken line item nine point six status of council member Mary Waters, submitted memorandum relative to follow-up questions on DLBA development activities.

There is a request for a two-week bring back.

Is there a motion?

Motion there's a motion to bring line item 9.6 back in two weeks.

Hearing no objections, that action shall be taken.

That now brings us to new business and line item 10.1 contract number 6005921-a two 100% grant funding.

Amendment number two to provide an extension of time for residential redevelopment of vacant parcels in North Corktown neighborhood.

Contractor, the the community builder, contract period through September 11th, 2027.

Contract increase amount zero dollars, total contract amount one million dollars.

Colleagues, is there a motion to approve or discuss?

Motion discussed discussion.

Pro Tim Young.

Thank you, madam chair.

Um to office of contract and procurement or who this uh concerns.

I don't see the amount of bids for this.

I like to know that, and I like to know no hate to my fellow men and women, they and them from Beantown, but why are we hiring somebody from Boston?

Don't we have people from Detroit that can do this?

Or at least in the state of Michigan.

Uh a few other folks that were slated to speak to this line item, and I believe um perhaps someone from HRD or PND might be able to speak to the questions that were just raised.

Good afternoon.

Uh, this is Jamila Watkins with the Office of Contracting and Procurement.

And through the chair, I heard uh Councilman Young's question about the number of bids.

I'm looking that up.

I just do want to clarify that this is an amendment.

I did not handle the initial uh contract award, but I'm looking it up now to see if I can find that information for you.

So we have Anita Harrington, Alex Alexis Alexander Madam Chair.

I don't see them online.

Uh to the administration.

I'm not sure if John Trump can answer that question, but uh Miss Sullivan or Mr.

Washington, who do we have from the administration?

Miss Great.

Do we have Miss Sullivan or Mr.

Washington?

Malik Washington is on, and he's up.

Okay, well, yeah, let's hold up.

Mr.

Washington, we are on line item 10.1.

Do we have anyone from the departments who can address questions?

Yes, through the chair, we should have John Trong online.

And I believe Anita Harrington and Alexis Alexander.

Through the chair, this is John Trong.

Um, I think there is uh mislabeled on this contract.

I just want to be um just want to note that it is now my item.

Uh I can see if Alexis Alexander is available.

I think that was our internal notes.

There might have been a an error.

Through the chair.

If you could bring this back to the end, we'll um work this out behind the scenes.

Thank you.

Colleagues, is there a motion to bring line item 10.1 back to the end of the agenda?

Motion.

Hearing no objections, that action shall be taken.

And Ms.

Watkins, we will come back to you as well.

Thank you.

Line item 10.2 is contract number 6007937, 100% grant funding to provide window AC unit installation contractor, Blue Horizon Construction LLC, contract period upon City Council approval for a period of one year.

Total contract amount 378,050.

Is there a motion to discuss?

Motion discuss discussion.

Thank you.

I just have a very quick question for either Rico Razo or Amy Amador.

Good afternoon.

Good afternoon.

Please introduce yourself for the record.

Through the chair, uh Rico Roslo, Chief of Home Repair and Neighborhood Services.

Amy Honador, Deputy Director for Bridging Neighborhoods.

Thank you both for joining us.

Um questions.

One, if you can share who will receive the AC units, and two, if you can identify that there is some type of filter that will keep contaminants outside as much as possible.

Through through the chair to Councilmember, well, to the chair, sorry.

Um so we have identified when I say we m dot has identified a boundary that we would service, and it is all south of I-75, uh, east and west of the Gordihau International Bridge Project uh plaza.

And so there are 166 households that we've identified that are eligible for um these air conditioning units and in some cases electrical upgrades, and these air conditioning units will uh come with a MERV 13 filter, which is generally the highest rated uh uh filters on the market.

Thank you.

And um can you just uh as as these are being provided, can we just make sure that there's a conversation with residents um on replacing the filter and just making sure that there is a filter there because I understand the intent of it, um, but just want to make sure that um as they are being utilized as opposed to opening their window um because the window is still technically open for the air to move to flow through, that the air filter is clean, that it is all there is always an air filter in the AC unit.

Thank you.

And to the chair, yes, education is always an aspect of our programming.

We we did it on the I-75 environmental mitigation program when we provided uh additional filters to the residents.

We'll do the same for this program and and definitely reiterate that that piece that you uh brought up.

Those pieces, sorry.

Thank you.

And did the funding come from the state of Michigan the uh to the chair?

The funding did come from MDOT.

Uh so they were looking at doing a rail spur project in Del Ray specific.

They scrapped that plan, uh their plans changed, so they still had those dollars remaining, and they reached out to bridging neighborhoods and uh wanted to see if if they had the capacity to run uh tree giveaway program as well as the air conditioning uh sorry, air conditioned air conditioning giveaway program.

Um and so Amy and the team put together the the program and MDOT funded it.

All right, thank you so much.

Thank you, colleagues.

Colleagues, any additional questions, comments, or concerns?

Member Santiago Romero.

Thank you, Madam Chair.

Good afternoon, everyone.

I just have questions regarding um, I guess um the ability to do this in the future.

Um are we just for the record, we're doing this because we received grant funding one, um, but because of a project that would negatively impact the community, correct?

And I ask this because I know this city council has thought in the past about providing filtration systems or AC units to residents that are living next to industry that are being negatively impacted by pollution there.

So existing projects, not new, not grant funded, city funded.

Um being told that we're still not able to do that to recreate a program like this through city funds.

We have to wait for it to be grant funded.

We have to wait for it to be a part of uh uh incoming project through the chair to council member Santiago Romero.

Um I think the biggest issue lies if you're talking about city funding and general funds specifically, it it still comes down to the lending of credit rule that's associated with those dollars.

I think that that is really where uh the sticking point is.

Um these specific dollars from MDOT.

Uh let me let me backtrack a little bit.

When MDOT was exploring doing this rail spur, they were already going to provide uh uh a benefit to neighbors that they would have used land for.

So I think there may have been a couple of house purchases and um lot purchases.

So I don't think that project they originally set out to do would have harmed the community in terms of um any environmental pollution.

I think that project did not go through, so they wanted to make sure that we could um utilize the dollars and still benefit uh the residents.

So that's what we're doing with these dollars specifically.

But I I will say in terms of the city funding something specific, I do think it does does come down uh to the lending of credit rule.

Okay, thank you through you, madam chair.

Thank you.

Um, because this is something that's needed um throughout the city for all residents for many residents, um, and I know how it must feel um to see this happening and to not be able to to recreate this for others.

Um so the lending of credit issue, I think there's a disagreement among some of the council members and the administration that we will work through and try to, I guess, find some creative solutions because this is something that's needed.

Um, but thank you.

Just wanted to to put that on the record as we continue to work through this.

Um this isn't the city council or the administration picking favorites.

This is an opportunity resources coming down, um, and we're able to make this connection, um, but really hoping that we're able to do more of this and try to find creative solutions or work through our current um uh issues that are preventing us from doing this because I I know the need, I know the feelings, and um I I see them and trying to work through them as well.

So thank you.

Thank you, Madam Chair.

Thank you, uh Member Santiago Romero.

And to that point, um, I think it would be great if we could get more of our um state legislators to uh provide some resources for us to be able to do this uh throughout the city.

Um if MDOT saw an opportunity and a need to provide this support here because of I-75.

Um, there are certainly projects that the state approves of industrial zoned land and uses throughout this city.

Um there's an opportunity there for as they approve those permits, and we have industrial that is very close to residentially zoned areas, there's an opportunity for it for them to provide additional support, greater support to our residents by way of things like this.

So certainly hope they are hearing us and and would encourage all of us to have conversations with our um state legislators, colleagues who we can reach out to to ask for some additional assistance because I was as as you were talking, I was typing to my team saying, you know, there are a few areas in district four that could certainly utilize um this some grant funding, some support to make sure residents have AC units and still uh be able to breathe cleaner air in their home while their home is near industrial zone land.

So thank you.

All right, colleagues pro Tim Young.

Thank you, Chair.

Yeah, I just wanted to ask, you know, looking at some of these things, it stays involving an energy star-rated window air conditioning unit.

I just want to know can the residents also expect savings in terms of energy as well from this program, or do we know how much that would be to the chair?

I I don't know if there will be uh savings since they would be running uh an air conditioning unit that they may not have had previously.

So if anything, it may be a few dollars more than they're they're normally spending.

Even though it's energy star.

Well, I I think it'll be a few dollars more, but it may not be as high as something that's not energy efficient.

I will say the great part about this program is that if a house is not currently set up uh with the electrical capacity to serve this well to to uh run this AC unit, our team will then go in and provide those uh circuit upgrades to their uh electrical boxes so that they can run it efficiently and not have anything else trip in their house while they're running the air conditioning unit.

So that is part of it.

I think that's a great benefit to the resident.

Okay, do we know what impact this would have in terms of them being able to breathe clean air with this versus not?

Yeah, through this through through the chair, if a household currently does not have any air conditioning or central air, um, and they are utilizing just open windows or putting box fans in the windows.

I mean, that that air is not being filtered at all.

Um so that you know, this allows a resident to close their windows, feel seal everything up, have one AC unit running cold air, filtering it with a MERV 13 filter.

So I you know, I would imagine that it would be a greater benefit to them than just having you know a box fan or just windows open, allowing uh uh the outside air to come in and out of their house.

No, I I I agree.

Listen, I I listen, I I'm extolling the benefits of this program.

I'm I'm I'm I'm just asking these questions, so just so I know when I go to my constituents and I tell them, you know, well, hey, look, we just installed these air conditioning units, and this is what we're gonna do, and it's gonna reduce this by this amount.

We're gonna have this much more clean air.

That's why I'm asking this question, so I can just be specific about what the benefits of this and the great work that you guys are doing in your department.

All right, uh I am done.

Thank you, madam chair.

Thank you.

Motion to approve 10.2 since a formal with the recommendation to approve.

There's a motion to send line item 10.2 to formal with a recommendation to approve.

Hearing no objections, that action shall be taken.

Thank you all for joining us.

Thank you.

Line item 10.3 submitting report relative to a request of the Detroit Wayne Joint Building Authority for PC Public Center Special District Review of Proposed Exterior Alterations to the Covenant A Young Municipal Center.

Colleagues, is there a motion to receive and file line item 10.3?

Motion.

Hearing no objections, that action shall be taken.

Line item 10.4 is a corrective resolution for the legal description of 2300 Grash it.

Colleagues, is there a motion to approve line item 10.4?

Motion.

There's a motion to send line item 10.4 to formal with the recommendation to approve.

Hearing no objections, that action shall be taken.

Moving on to miscellaneous line item 10.5.

Council President James Tate submitted memorandum relative to request for comprehensive homeless services contract matrix.

Is there a motion to refer line item 10.5 to HFS and bring back in two weeks?

Motion refer to HFS and bring back in two weeks.

Hearing no objections, that action shall be taken.

Line item 10.6.

Councilmember Angela Whitfield Callaway, submittee memorandum relative to request for a resolution in support of Senate Bill 1053.

Colleagues, is there a motion to refer line item 10.6 to the legislative policy division and bring back in one week?

Motion.

Hearing no objections, that action shall be taken.

That brings us back to line item 10.1.

Again, this is contract number 6005921-82.

This is to provide an extension of time for residential redevelopment of vacant parcels in North Corktown.

And let's see, we have please introduce yourself for the record.

Good afternoon.

This is Alexis Alexander, um, director of choice neighborhoods with the housing and revitalization department.

Good afternoon.

Hello again.

This is Jamila Wackness with the Offensive Contracting and Procurement.

Thank you for joining us again.

I will turn the floor over to Pro Tim Young.

Thank you.

Yeah, uh, just to ask the question again.

I just wanted to know what were the bids on this, even though I know this was an amendment.

I just want to know what were the bids on this, how many um asks did you put out there, how many responses did you get back?

And how come we couldn't find somebody from the city to be able to do this, not hating on our good friends and neighbors from Beantown?

So through the chair, this is actually a non-standard procurement, and this uh was approved by OCP.

The justification was submitted by um BC, and I I can read to you what they've written.

Uh please.

However, they will probably be better, you know, equipped to explain it.

But would you like for me to read the uh description or the basis for selection?

Oh, you said you say you're no, well, I I would well, the chairwoman would tell me not to.

So Tim, we we do have now uh Christopher Rogers who's joining us from BC.

So perhaps she can provide some additional information.

Thank you.

Crystal Rogers, General Manager for Environmental Affairs with B seed.

Yes, this was a non-standard procurement because the developer goes with the grant.

This is a um Eagle Grant.

So when we were brought the grant application to facilitate it, the developer and the grant go together.

Uh discuss, I just want to know discussion.

Why is that?

And secondly, when you say non-standard contract, you mean no bid, right?

Yes, that's what she means.

Okay, and so so why what why is that?

And how does that work?

How is it a grant go with a developer?

I I I I haven't heard of that.

Sure.

No, Pro Tim, perhaps Ms.

Alexander can delve a little deeper um with the work that she does with choice neighborhoods.

Ms.

Alexander.

Thank you.

Um, through the chair.

Um, the community builders was actually selected competitively.

We released um in the spring of 2020, um, an RFQ to identify developers to support uh development of housing um for our fork tunnel footprint.

There were a total of five bids.

We had three top candidates, and our selection committee actually identified the community builders as um the top candidate out of those bids that came in.

Um so they are associated with um the properties here that are coming before you for this amendment to an Eagle grant uh because of their selection to be part of our housing implementation entity.

And um what made them stand out um was their success with choice neighborhood um applications elsewhere in the country um in terms of being able to deliver total number of affordable units on time and helping other cities to spend down their choice grants um on time, and so that is how PCB, which does have a Boston-based address, came into the fold.

I do want to note that um since our grant award in 2021, um, they have had a consistent presence, including setting up space um here in Detroit for not only um their housing team, but also uh dedicated team of a case management supportive services that are working as I speak right now with our residents um on goals.

I just I wanted to provide that background information um to kind of explain how they came into the fold and in turn have been awarded this eagle grant um to really help us um get across the finish line uh preserve on ash three, uh, which is it's really important to the affordable units that we're trying to grow um here in this ever-changing uh neighborhood.

No, I thank you for it.

I appreciate that, but I'm still a little bit confused about how the how this works.

So let me just say this, and you correct me if I'm right or wrong or not.

It seems like the you had a bid for the service, and this company won that bid, and then there was a grant process that was separate and apart from that, and because they already won the bid for this service, you just matched this company with that grant.

And is that what this is what I'm looking at now?

I don't understand how the previous conversation was about this company being connected to this grant.

So just kind of explain that to me a little bit.

Through the chair, um because the community builders is a developer who's responsible for building the site where these eagle dollars um have been awarded to they the developer was competitively selected.

The money has to come to them in order for them to get preserved on Ash, in particular the environmental remediation taken care of so that the new residents um can live in a safe environment.

So the entity was competitively selected.

Okay.

They were awarded.

Oh, make sure to underscore that.

Ms.

Alexander, can you identify who selected them, what the process was?

Because it sounds like it was separate from OCP.

So OCP, um when we have the individual funding that comes into the phases that the community builders is responsible for bringing online, we do have to go through processes like what um OCP and BC were explaining earlier.

Each time we're awarding them additional dollars, there does have to be a write-up justifying why.

The community builders was selected by a consensus committee that was made up of members from the housing and revitalization department, planning and development department, um, and two or three other community stakeholders here in Corktown at that time.

We had to look at every bid, understand um what their role had been in choice elsewhere before identifying the top candidate.

And just to clarify those individuals that you just mentioned, HRD, PNDD, folks from the community, um in 2020 they went through the RFP process.

Yes.

Okay.

All right.

Thank you.

It sounds like some records in OCP need to be updated to reflect that.

So it does not look like a sole source or that this company was just selected.

I do understand that it's an amendment, but even an amendment would have the details on what you just shared around how TCB was identified to be the entity to utilize these um grant dollars to help with the development.

Um I didn't want to interrupt, but uh through the chair, the justification that had to come in with this amendment, I do know there is a requirement to explain um each time there's a a new bucket of funding, whether it's a new grant or an amendment, why um this entity is tied to it.

So the process that I'm explaining from six years ago is what brought the community builders um into the fold.

The Eagle Grant itself, um, that is something that we applied for just a few years ago.

And so there is a separate process for kind of explaining getting the requisition forward and ultimately onto this agenda for each batch of funding.

Thank you.

And so now to further clarify, the funds that we're talking about here are from Eagle or from the Choice Grant.

Okay, from Eagle.

Okay, thank you.

Pro Tim Young, my apologies.

No, no, you're fine, ma'am.

Chair, and and and I I just want to say is the reason why they had to go through the process they went through with the other departments rather than going through the traditional um process they went through OCP.

Is that because they're they were part of the choice neighborhoods program, or was that because in order for them to get this Eagle grant and close it out, they have to go through that special process through the chair.

Um the they are listed as a grant partner as a result of that competitive process that we went through and it's documented um back in 2020.

Okay.

Okay, so so that's why they went through that process, because in order for them to get the grant, the Eagle is going to send to that to that area, they had to go through that process rather than the traditional OCP process, right?

Through the chair, the the Eagle grant, that is those monies become available annually.

Okay.

And so as we go through and understand um what developments across the city are in a place to start construction and use those dollars to further our affordability goals and clear environmental concerns.

Um that is where we look broadly.

There's usually a list of developments to see which ones will be in position to be able to spend those dollars on time and help us make the largest impact.

Okay.

Okay.

I see what I see what you're saying.

So was it just about getting the eagle grant?

It was also about which one of these um contractors will be able to do it in the most efficient and effective way possible.

And that's why they went through that process.

Okay, okay, and that's why it's it's okay.

And okay, because I'm reading this about closing out.

All right.

All right, you are you're no no.

I want I want I want I want to ask you this question.

Uh this I this is uh to OCP.

I just wanted to ask really quickly.

Um we have a lot of you know conversations about um minority contractors and being a participant, not being participant.

I just wanted to know what is your um your minority contract uh advertising spend.

What is your women advertising contractor spend, and then what is your black advertiser contracting spend, and then what is your Detroit contractor advertising spend.

Okay, so through the chair, um I do recall you asking me that, I believe earlier this week or last week.

So I'll write those down, and that is information I'm going to have to go and get for you.

So you asked particularly for minority, minority-owned media spending black women, yep, all media spend, Detroit-based media spend.

Yep, and then woman-based media spend.

Okay, all right.

I will go to our outreach team and see if I can get this information for you.

I appreciate that.

Would you accept the answers and email?

Uh, yes.

All right.

I will see if I can gather that information and send it to you in email.

Thank you.

I appreciate that.

Um I'm done, manager.

All right, thank you.

Uh colleagues, is there a motion to send line item 10.1 to formal with a recommendation to approve.

Motion.

Hearing no objections, that action shall be taken.

Thank you all so much for joining us.

We are now at member reports.

Member Vice Chair, Santiago Romero.

Uh, negative report, everyone enjoy the holiday this weekend.

Thank you.

Pro Tim Young.

Native report.

All right.

And I don't have a report either.

Just want to say, as you all are enjoying the holiday weekend, please stay safe, stay cool, and stay hydrated.

If there is nothing further to come before this committee, we shall stand adjourned.

And no,