2. State of the City Address
Mayor Dave Bing
March 23, 2010
3. Phase 1 Phase 2 Phase 3 Phase 4
“Making Tough Choices”: Alternative “Moving Detroit Forward”: Final Strategic
Listening, Learning, and
Future Scenarios and Early Action Preferred Alternative and Draft Framework Plan
Analysis Framework Plan
Plan
July– Dec 2010 Jan – April 2011 May – Aug 2011 Sept – Dec 2011
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10. 1950 Willis Street
2010 Willis Street
McDougall Street
McDougall Street
Moran Street
Moran Street
Leland Street Leland Street
Historic Density Current Density
185 Homes 40 Homes
540 People 116 People
23 Persons per acre 5 Persons per acre
$151,673 tax revenue $32,794 tax revenue
29. Drive alone
8%
69%
Carpool
/ Vanpool
Public
Transportation
Other Work
Walk Means at home
Detroit Transportation Modes Breakdown (Ages 16+)
For those traveling to work
Tax calculation takes into account both property and income tax. The median housing value for the block group which contains the study area is $25,172 and the median household income is $19,326.The tax rates used are 65.14 mills for property taxes and 2.5% for resident income tax.
If half of the total number of unoccupied residential parcels were reoccupied, the standard homestead property tax rate could be reduced by 21% to produce the same revenue currently generated by existing occupied parcels. There are approximately 387,000 total parcels in the City. 343,849 residential parcels. There are 91,488 vacant residential parcels and approximately 33,529 vacant houses. Tax calculations are for property tax ONLY. The calculations assume a median housing value of $85,200 and a tax rate of 65.14 mills. This is the housing value reported from the 2005-2009 5 year American Community Survey. The current revenue derived from taxes in this equation is $609,135,123. If there were an occupied on one half of the vacant lots revenue would be $782,593,960. This represents a difference of $173,458,837. Reducing the tax rate to 51 mills would create $612,715,566 in revenue. Slightly more than is currently being generated.
Source: 2008 Claritas, 2009 ACS, 2010 SEMCOG
Vacant land area is overwhelmingDetroit’s percentage of vacant land is twice the amount of the average American city. The Brookings Institute estimated that 15% of the total land area of the average American major city is vacant. Detroit’s generally accepted percentage of vacancy is twice that amount. At 29% vacancy, Detroit is estimated to have 40 square miles of vacant land. In many cases this vacant land is a discontinuous array of small residential parcels not easily assembled for development. The size and population of San Francisco would fit in the current vacant land in the city of Detroit.
Overall population is only half the story…. Density is critical.
Job sprawl in the Detroit region is the highest in the country. Today, Detroit is the third largest job center.
2030 Projections show a continued decline if current circumstances go unchanged.
International linkages, critical to value proposition:U.S.- Canada trade corridorInternational/NAFTA transport linksAccess to Canadian portsCustoms house, forwarding, and related servicesForeign trade zone facilitiesSOURCE: MSU AND DETROIT REGIONAL CHAMBER OF COMMERCE REPORT TO NEI FOR SE MICHIGAN, MAY 2010; FHWA Freight Analysis Framework (trucking and rail); Bureau of Transportation Statistics, Air Carrier Statistics T-100 database (air); U.S. Army Corps of Engineers, Waterborne Commerce of the United States database (marine).
There is a certain degree of irony that, despite the City’s and region’s reputation as the “motor city”, many people do not have access to a vehicle and are reliant on public transportation to access jobs and daily services. Those households that do not have a vehicle tend to be concentrated in the inner portions of the city. This happens to be an area with a greater density of DDOT bus stops, but it also tends to be an area facing several other challenges, including an extremely high vacancy rate.
Revenues are achieved via a combination of user charges and standard charges, sometimes placing an additional burden on those wishing to set up a new home – with the possibility of thereby reducing municipal property tax incomesWith prices capped –reinvestment will fall off rapidly accelerating decline in effective infrastructure capacityGiven current regulatory and legal revenue raising structure, sales and charges are insufficient to meet needs ($1.5 billion transport investment shortfall1)Revenues are fallingGiven current regulatory and legal revenue raising structure, sales and charges are insufficient to meet needs
Detroit’s level of educational attainment continues to be one of City’s largest challenges. The Citizens Research Council explains:Through analysis completed by Excellent Schools Detroit, the performance for each school in the city is assessed against state and city testing standards to yield a “report card” for 5th, 8th and 12th grades. To ensure these cover the breadth of educational opportunities present in the city, the assessment includes: Public schools Charter schools Private schools Public schools that are now closedThe preponderance of statistical information illustrates a struggling educational system.
Detroit’s high concentrations of poor health conditions correlate with areas of poverty and areas of older population. These areas demand an increased level of service. This requisite level of service is challenged by tremendous cost issues.
Overall population is only half the story…. Density is critical.
While the number of Homicides has decreased to its lowest level since 1967. The homicide rate (per 100,000 residents) is double what it was in 1967.The Number of Homicides has fallen 26% since 2006.
Collective InvestmentNeighborhood typologies, infrastructure data and economic recovery analyses and findings should result in a shared and collaborative approach to investment in Detroit.While the stabilization, foundation, and city initiative investment target areas are generated based on analysis specific to their mission, the Detroit Works Project needs to propose a collective informational resource for targeting future investment.
