FROM: Glen W. Long, Jr., Chief Financial Officer, Interim President & CEO
DEGC’s marquee programs for Detroit small businesses — Motor City Match and Motor City Re-Store — are grabbing some great headlines, but they are just part of the array of resources DEGC can draw on to help small businesses succeed in our city.
Recently, we were able to provide Red Dunn Kitchen with gap financing — in partnership with its senior lenders — from a small pool of funds we have available from a federal grant for loans to small businesses. We also helped the owners of The Inn at 97 Winder qualify for property tax exemptions under the Obsolete Property Rehabilitation Act (OPRA).
Currently, we’re working with a group of people to provide a small business loan and a tax abatement incentive that they can use with their equity to fund their start-up, and yes, we are working with the owner of Henry the Hatter as that business considers moving to a new location.
Small businesses in neighborhoods across the city are an important part of the fabric of their communities. We’re adding staff in order to keep up with demand. At DEGC, we work hard every day to find ways to support small businesses as they open and grow in Detroit.
As you know, representatives of the DDA and DEGC have been integrally involved in facilitating the Detroit Pistons’ relocation to Detroit. Recently we reached two important milestones in the process of gaining bond issuance approvals supporting enhancements to Little Caesars Arena for the team’s move.
The City of Detroit City Planning Commission has recommended the 2017 Proposed Plan Amendments to the DDA’s Restated Tax Increment Financing Plan and Development Plan for Development Area No. 1, which includes the Catalyst Development Project (i.e., the Little Caesars Arena and surrounding private development). Furthermore, the Michigan Strategic Fund — the entity which was responsible for issuing the 2014 bonds for the construction of the arena — approved the changes to the Catalyst Development Project set forth in the 2017 Proposed Plan Amendments.
There are more steps in this ongoing process, including opportunities for public comment. Detroit City Council has hosted public hearings to listen to comments, concerns and recommendations regarding the community impact of the Detroit Pistons’ home venue relocation to the Little Caesars Arena, and headquarters and practice facility relocation to New Center.
DEGC continues to deliver. We will keep you informed of future developments.
From the desk of: Glen W. Long, Jr., Chief Financial Officer, Interim President & CEO
We celebrated a very important investment in the City of Detroit this week when top automotive supplier Flex-N-Gate hosted a groundbreaking ceremony at 7000 Georgia Street in the I-94 Industrial Center, future site of its new $95-million manufacturing facility. It will be the largest investment by an auto supplier in the City of Detroit in more than 20 years.
This is a huge win for two reasons: it proves the manufacturing industry is strong in Detroit, and it will create 400 to up to 700 new jobs in an area where new jobs are sorely needed. Flex-N-Gate has committed to hiring Detroiters and Detroit-based contractors, as well as developing a comprehensive hiring plan in conjunction with the City of Detroit Human Rights Department and Detroit Employment Solutions Corp. to help ensure permanent jobs for Detroiters. Its new facility is expected to open next year.
A key reason Flex-N-Gate was able to locate in Detroit was the tax incentives administered by DEGC through the Detroit Next Michigan Development Corporation, one of the public authorities DEGC manages.
The 189-acre I-94 Industrial Park has been under control of the Economic Development Corporation (EDC) since 2000, with EDC overseeing property acquisition, clean up and development of the land. LINC Logistics was the Park’s first major new tenant when it opened a new $30-million, 500,000 sq. ft. facility last year, immediately adjacent to the Flex-N-Gate site.
This latest investment in the I-94 Industrial Park is the culmination of a collaborative effort among the City of Detroit, DEGC and the Michigan Economic Development Corporation (MEDC), which administers incentives and programs on behalf of the Michigan Strategic Fund.
|The Downtown Development Authority (DDA) is seeking preliminary redevelopment proposals from qualified developers for two of the remaining unconverted, mixed-use buildings in Detroit’s Central Business District (CBD). Responses to the RFQP (Request for Qualifications and Proposal) are due by 1:00 p.m., August 31, 2016.The buildings are located on Broadway Boulevard between Gratiot and Grand River, adjacent to the Paradise Valley Cultural and Entertainment District. Built in 1900, 1326 Broadway is a 2,200-square-foot parcel containing a 5,563-square-foot, three-story structure. The second building, 1332 Broadway, is a 5,022-square-foot parcel containing a 15,090-square-foot, three-story structure. It was built in 1919. The properties will be sold “as-is, where-is” without any representation or warranty.The buildings are near parking, theatres, entertainment, restaurants, bistros and retail. Last month the DDA approved a comprehensive plan to redevelop nine properties in the Paradise Valley Cultural and Entertainment District. Other nearby areas are undergoing significant redevelopment, including Eastern Market, Corktown, Midtown and the East Riverfront District.
A mandatory pre-bid meeting and property viewing will be held at 1:30 p.m., August 3, 2016, at 1326 Broadway. Proposals are due at 1:00 p.m., August 31, 2016, and final selection is expected to take place in September. For a copy of the RFQP and additional information, go to DEGC New Projects RFPs (http://www.degc.org/contractors/new-project-rfps).
Executive Vice President – Real Estate