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Infosheet: Why the Ford Deal Matters, What’s the Big Deal

Infosheet: Why the Ford Deal Matters, What’s the Big Deal

 

 

 

 

 

 

 

 

 

 

 

Equitable Detroit Coalition and Detroit People’s Platform

Infosheet: Why the Ford Deal Matters
What’s the Big Deal?

In October, Detroit City Council approved the Community Benefits Agreement struck between the Neighborhood Advisory Committee (NAC) and Ford Motor Co. around their new project in Corktown. Ford only offered 10 Million in community investment on their $740 million project. The NAC voted 9-0 to approve the Ford CBA offer. This in spite of urgings from community members to fight for a better deal.

The current Ford deal is a Bad Deal

We are giving away WAY TOO much, getting too little in return, and the “too little” we’re getting is based upon projections and intentions rather than facts and details about the process for claw-backs.

Here’s what ford gets

These incentives are made possible by:

Michigan Renaissance Zone Act
$208,796,791
in tax abatements for the Renaissance Zone, coming from a combination of city, county and state money. This is an abatement of real and personal property taxes, city corporate income tax, and utility users tax. This would occur over 30 years. Nearly $90 million would come from the City of Detroit.

Commercial Rehabilitation Act

$8,056,085
under the Commercial Rehabilitation Act (P.A. 210). Nearly $4 million in tax incentives would come from the City of Detroit. This would occur over 10 years.

Obsolete Property Rehabilitation Act (OPRA)

$18,763,677
under the Obsolete Property Rehabilitation Act (OPRA). This act allows the taxable value of a property to be frozen at its pre-improvement value with some exceptions. It would last 12 years and nearly $9 million would come from the City of Detroit. 

Neighborhood Enterprise Zone Act
$2,933,944 under the Neighborhood Enterprise Zone Act. This law allows taxable values of property to be frozen at their pre-improved value. This incentive lasts 17 years (it reduces at 15 years) and just over $1 million would come from the City of Detroit.
(Final Decision Pending)

source: https://www.freep.com/story/news/local/michigan/detroit/2018/10/16/ford-michigan-central-station-tax/1651079002/

What’s the community’s Return on investment? 

We know what Ford’s Return on Investment (ROI) is going to be, but what is the community’s ROI? 

“BUT IT’S A DONE DEAL. COUNCIL ALREADY GAVE IT AWAY. WHY DOES IT MATTER?”

Three Reasons why the Ford Deal Matters:

1. WE WANT DEVELOPMENT WITHOUT DISPLACEMENT!

We’re not opposed to development, but this goes too far.

2. INSTEAD OF BECOMING AN EXAMPLE CBA, FORD JOINS the ranks of Gilbert and the Ilitches as a bad corporate player.

This is beyond corporate welfare, this is a straight up gift to a $17 billion dollar global corporation.  For all the sentimentality around Ford Motor Company, they still roll like a corporation; driving the hardest bargain for the best deal they can get.

3. The process “gaslights” community by inviting them in and then dismissing them for already done deals.

A quick definition of gas-lighting is making people experience self-doubt or self-criticism by acting welcoming but being disrespectful. In short, saying one thing while doing another. 

Here’s what the community gets

Whatever the city collects in income tax over next 30 years.  That number will be based  on how many workers are employed and local business activity.

Ford Commits to 2,500 jobs. DEGC* says there will be 5,000 jobs. The other 2,500 jobs are just DEGC projections.  Since we know these numbers usually don’t come out as planned we’re not sure we can trust them. *Detroit Economic Growth Corporation (DEGC) manages business retention, attraction, and economic development for the city.

Ford has committed 2,500 jobs even though we are hearing about job reductions and retiree buy-outs in the media. 

What would a real CBA with Ford look like?

Every CBA is different, but REAL CBAs are community driven, meet community defined needs and are legally binding and enforceable.

A recent REAL CBA in Nashville included, setting aside affordable housing, providing child care and community services, and raised low wage jobs to $15.50 an hour.
source: https://www.tennessean.com/story/news/2018/08/02/nashville-soccer-stadium-mls-fairgrounds/11150930027

What can I do? How can we get ford back to the table?

Continue to call for the NAC to push for a better CBA deal based on the original recommendations they submitted to Ford.  ie fund the Housing Trust Fund, which supports affordable housing options for Detroiters most in need.

Attend future meetings of the NAC, Ford and city representatives and let them know how you feel. 

Support the call for the CBO amendments that are currently before City Council.

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Video: Jefferson Chalmers Development Without Displacement

Video: Jefferson Chalmers Development Without Displacement

On Tuesday, October 30 2018 residents of Detroit’s Jefferson Chalmers neighborhood organized a visit to City Hall, the Coleman A. Young Municipal Center.

During their visit, they made public comment and delivered petitions and survey results to Detroit City Council. Their District 4 Council Member Andre Spivey and Council President Brenda Jones recommended they visit the Mayor’s Office and Planning and Development.

They made sure that their demands were heard in both offices, talking with the Mayor’s Mobility Manager Gary Bullock and sitting down for a 30 minute meeting with Planning and Development’s Maurice Cox.

This week the Jefferson Chalmers Community Advocates released 3 of what will be a series of short videos documenting their visit. Please view and share these three examples of community power and look for the series to continue in the coming week.

Share and Learn More:
https://www.facebook.com/JeffersonChalmersCA/

Part One: What We Want

Part Two: Our Demands

Part Three: Making Good Use of Our Time

Part Four: We will NOT be Displaced (Coming Soon)

Jefferson Chalmers Community Advocates demand Development without Displacement

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Jefferson Chalmers Community Advocates demand Development without Displacement

Jefferson Chalmers Community Advocates demand Development without Displacement

#DevelopmentWithoutDisplacement

Detroit – Today the Jefferson Chalmers Community Advocates visited Detroit City Council to present signatures from over 300 households from their ongoing “Development without Displacement” campaign. The petition is in support of 12 demands that have been put together based on citizen led organizing and surveying.

In December 2017, a group of long time residents in the Jefferson Chalmers neighborhood came together to discuss the plans the city is making for redevelopment in their neighborhood. Jefferson Chalmers Community Advocates began to engage residents in face to face conversations about community needs while at the same time collecting important survey data.

The group has been focused on responding to the Strategic Framework Plan that the city is currently hosting community engagement meetings on. They have also met with their Council representative, Council Member André L. Spivey. Due to lack of adequate response the city Jefferson Chalmers Community Advocates have prepared, collected and are now presenting these petitions.

Petition by the People of Jefferson Chalmers

We, the undersigned residents acknowledge that the Declaration of Rights included in the Charter of the City of Detroit states “The people have a right to expect city government to provide for its residents, decent housing; job opportunities; reliable, convenient and comfortable transportation; recreational facilities and activities; cultural enrichment, including libraries and art and historical museums; clean air and waterways, safe drinking water and a sanitary, environmentally sound city.” Therefore, as residents we demand a more equitable and inclusive planning and economic development process that prioritizes the voice and recommendations of our residents and honors the community’s historical and current priorities as cited:

  • Provide home repair grants for fixed low-income residents (owner occupied) who have been residing in the home for 1 year or more.
  • Retain property tax levels at current rates for the life of the homeowner and any surviving heirs who remain in the home.
  • Ensure that only homes that cannot be rehabbed will be demolished after assessment is made by a third party not affiliated with the Land Bank.
  • Assure that once a home has been demolished a comparable home is built in its place within a 12-24 month period.
  • Community Residents will be given first priority to purchase Land Bank owned property.
  • Offer incentives to reopen a mixed-use community center, specifically Maheras-Gentry.
  • All waterfront parks will remain public.
  • Make sure there are separate buildings for elementary and middle schools for students in the Jeff Chalmers area.
  • The city office of General Services will create jobs for community residents to perform park maintenance and park patrols.
  • Upon the recommendation of an independent party demolish all Land Bank/city-owned buildings along the Jefferson Corridor that cannot be rehabbed. Offer incentives to have the demolished buildings replaced with businesses needed in the community as noted in the community survey.
  • Create an enterprise zone within the Jefferson Chalmers Community and a  Workforce Development Office.
  • Remove bike lanes from main thoroughfares, i.e. Jefferson Avenue.
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City Charter Revision Commission Candidate Night

City Charter Revision Commission Candidate Night

In the August Primary Detroiters voted on whether or not to “open” and revise the City Charter. The City Charter can be likened to the U.S. or Michigan Constitution. Proposal R was successful by only a slight margin of 184 votes. Since it passed, Charter Revision Commission Candidates will be on the ballot in November. There will be 16 candidates on the ballot for this 9 seat commission. Learning as much a possible about these candidates before the election is important because they will shape the 3 year revision process. Vote Tuesday, Nov 6, 2018!

All Charter Revision Candidates were invited to attend.
We were joined by 7 candidates:
Chase Cantrell, Cindy Darrah (write-in),  Karissa Holmes,  Denzel  McCampbell,  Tracy Peters,  Nicole Small, and Joanna Underwood.

The Detroit People’s Platform does not endorse candidates.

Please note that the video was captured from the live stream of the event and is not production-quality. Drops in the signal are noted.
The video is intended for election education purposes only and is part of DPP public education work.

 

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Homes for All! Support the Housing Trust Fund

Homes for All! Support the Housing Trust Fund

Detroit is enjoying national attention for its revitalization efforts, but not everyone is benefitting equally. Corporations and investors from around the world have shifted enormous amounts of investment into Detroit.

Detroit is experiencing an explosion of investment. Investors are purchasing land and buildings from the City, the City is investing money in infrastructure improvements in selected neighborhoods, and developers are investing money in rehabilitating buildings for trendy new restaurants, luxurious apartments, hotels, condos, and upscale boutiques. The revitalization of Detroit’s housing market includes building and renovating mostly market-rate housing that the average long-time Detroiter can’t afford to live in.

However, the one thing that Detroit has not been willing to invest in is permanently affordable housing for current residents to continue living in their neighborhoods as housing costs begin rise. 

Right now, the average Detroiter spends 60% of their monthly income on housing. This is one of the highest rental burdens in the country. One in five Detroit renters face eviction every year. That makes Detroit one of the top 10 cities for annual evictions. In order to reverse these trends that threaten to displace long-term Detroiters the City must commit to protecting and creating quality permanent affordable homes and apartments for the Detroit families who need them most.

The Mayor of Detroit has created many talking points about affordable housing. These include statements such as: “We will not support development that moves Detroiters out so others can move in” and “Every area of Detroit will have a place for people of all incomes.”

To honor these commitments the City of Detroit must take action by creating and funding a housing plan for constructing and protecting a substantial amount of high-quality affordable homes for the Detroit families who need them most. This must be done simultaneously with the city’s redevelopment efforts. This is the only way to reduce the threat of displacement.

For these reasons, Detroit People’s Platform is joining with allies across the country to launch the Homes for All Campaign here in Detroit to demand the following:

• Commitment to fund the creation and protection of permanent and deeply affordable housing 

• Increased renter protections

• Sufficient revenue stream to support the Housing Trust Fund

Detroit People’s Platform will be meeting with residents and renters across the city to make sure our voices are heard around this critical policy issue. 

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Fare Justice Not Fare Increases

Fare Justice Not Fare Increases

DDOT Undergoes Major Changes in September: Restored Access to Woodward in downtown Detroit and Proposed Fare Increases

Keep Woodward on Woodward Campaign a success! 

On September 5th, the Detroit Department of Transportation (DDOT) restored the Woodward #53 now referred to as #4 to its direct route on Woodward Ave all the way through downtown Detroit. The Detroit People’s Platform Transit Justice Team organized the “Keep Woodward on Woodward” campaign collecting signatures from DDOT bus riders 

The campaign demanded the restoration of the Woodward bus through downtown Detroit. This is a major win for residents, restaurant workers, security guards, custodians, and others who work, shop, and access social and government services in downtown Detroit.

We thank the petition signers for their support and the volunteers of the Transit Justice Team for making this win possible!

Fare Justice Not Fare Increases

In early September, DDOT proposed a new fare structure. This proposed fare restructuring will increase the base fare by 33% from $1.50 to $2.00 and will increase the prices of bus passes compared to the current system. The new fare structure will eliminate transfers and replace it with a 4-hour pass for access to any DDOT and SMART bus. It also eliminates the $0.50 fee when a DDOT bus rider transfers to the SMART bus system. Most importantly, all passes under this new proposed fare structure will be rolling passes which can be bought at any time and are only valid once activated. For example, if one purchases a 7-day pass on Tuesday and uses it that day, it will expire 7 days from Tuesday. 

Bus riders still cannot count on DDOT bus service for on-time and reliable access to work, school, medical appointments and worship. In Detroit, families and individuals are facing high rents, losing their homes to tax foreclosures, and experiencing water-shutoffs across the city at an alarming rate.

This is not the time to raise bus fares.  

Detroit Peoples Platform Calls for DDOT bus riders to take the following actions:  

• Call your city councilmember and demand that council vote down the proposed bus fare increases. Urge council to adopt a low-income fare policy instead. This low income fare policy would allow low-income Detroit residents to pay the same reduced fares that seniors, students, and persons with disabilities currently pay. 
• Attend city council meetings and offer public comment. Plan to arrive by 9:30am on Mondays and Tuesdays on the 13th floor of the Coleman A. Young Municipal Center at 2 Woodward Ave. DPP urges bus riders to leave comments with DDOT regarding the proposed fare increase.  

Detroit City Council main line: (313) 224-3443
Detroit Department of Transportation: (313) 933-1300 or email at: ddotcomment@detroitmi.gov

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Dear Ford, If you want to create tomorrow together, let’s get real today with a legitimate CBA.

Dear Ford, If you want to create tomorrow together, let’s get real today with a legitimate CBA.

October 14, 2018
Detroit – The Equitable Detroit Coalition has released an open letter to Ford Motor Co. This letter challenges Ford to go further and agree to a CBA worthy of a $17 billion multinational corporation.

Ford Motor Co. has a net worth of nearly $17 billion. They want $239 million in tax breaks for their $740 million project in Corktown. They want to “fast track” an abatement of $104 million in city taxes over 35 years to catch another $18.7 million in tax breaks from the state by the end of October.

CALL TO ACTION:

Monday – Call Council

On Monday, October 15th, we are asking Detroit People’s Platform members and supporters to call their District Council Member and their ‘at large’ Council Members, Council President Brenda Jones and Council Member Janee Ayers. 

Tuesday – Attend Council Meeting and make Public Comment

On Tuesday, October 16th, Detroit City Council will vote on the Community Benefits Agreement for the Ford Corktown project. The meeting will begin at 10am. We advise people to arrive early to locate parking, get a seat and a public comment card.

Share the “Dear Ford” video

Please use #DearFord to share on social media.

Share the “Dear Ford” letter

Dear Ford Motor Co.,

We are the Equitable Detroit Coalition (EDC) the city-wide Community Benefit Agreement (CBA) coalition representing a constituency of nearly 100,000 Detroiters who voted “YES” on Proposal A. Proposal A mandated strong and legally binding Community Benefit Agreements on large projects that receive public subsidy.

To begin, we acknowledge the hard work of community members and the Neighborhood Advisory Council (NAC) with the Ford Motor Company’s Corktown Project. We also recognize the pressure on the NAC and the community to cooperate and not offend Ford given the unique role the corporation has played in Detroit and Southeast Michigan for the previous 100 years. Yet, we would be remiss not to lift up the fact that the fortunes of Ford Motor Company and the intergenerational wealth of the Ford family were, in part. built on the backs of labor and Detroit workers.

The tensions that many Detroiters hold regarding corporate incentives is well known and documented. In a perfect world these incentives would not exist. Sadly, the political reality is that you, Ford Motor Company, will prevail in your request for $240 million dollars in public tax subsidies successfully diverting millions of dollars from much needed community improvements for decades to come. The community asked for up to $75 million in funds to support a broad array of community benefits including affordable housing for the most vulnerable, neighborhood and infrastructure improvements, workforce training, scholarships and other benefits. Your response was to offer a package of $10 million. This doesn’t go far enough.

Further, we want to remind you that while Ford is preparing for a successful future, many residents live in present day Detroit, where real people are being negatively impacted as part of the changes this and other private economic development projects bring with them. Less than a mile away from your project there are households where families with children exist without water, are threatened with housing displacement, and possibly face forced removal from their community. The median income around the project area is only $23,160.

On behalf of our constituent base, we urge Ford representatives to return to the table and renegotiate a real and legally-binding CBA with community. We challenge Ford Motor Co. to go further and agree to a CBA that is worthy of a $17 billion, multinational corporation. If Ford wants to create tomorrow together, let’s get real today with a legitimate CBA.

Sincerely,
The Equitable Detroit Coalition

Download the letterDearFord

 

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Charter Revision Candidate Night – Thursday, October 25 6 pm – 7:30 pm

Charter Revision Candidate Night – Thursday, October 25 6 pm – 7:30 pm

Election 2018 – Vote November 6th

CHARTER REVISION COMMISSION CANDIDATE NIGHT

In the August Primary Detroiters voted on whether or not to “open” and revise the City Charter. The City Charter can be likened to the U.S. or Michigan Constitution. Proposal R was successful by only a slight margin of 184 votes. Since it passed, Charter Revision Commission Candidates will be on the ballot in November. There will be 16 candidates on the ballot for this 9 seat commission.

Learning as much a possible about these candidates before the election is important because they will shape the 3 year revision process. 

Thursday, October 25
6:00 pm – 7:30 pm – FREE! 

Wellness Plan Building
First Floor Cafeteria
7700 Second Ave @ Pallister
Detroit, 48202

A light dinner will be served at 6:00 and the forum will start at 6:30 pm.

Charter Revision Commission Candidate Night Facebook: https://www.facebook.com/events/737546463257396/

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Meet the Judges Night – Wed, October 17 5:30 – 7:00 pm

Meet the Judges Night – Wed, October 17 5:30 – 7:00 pm


 

 

 

Election 2018 – Vote November 6th

Meet the Judges Night

The 36th District Court Judges have a great deal of power and their decisions impact our communities and our livelihoods. There will be 10 seats on your ballot in the general election on November 6th.  We will be specifically asking questions around landlord/tenant court.

Wednesday, October 17
5:30 – 7:00 pm – FREE! 

Wellness Plan Building
First Floor Cafeteria
7700 Second Ave @ Pallister
Detroit, 48202

A light dinner will be served at 5:30 and the forum will start at 6:00 pm.

Facebook for Meet the Judges: https://www.facebook.com/events/923120514554257/

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Detroit People’s Platform Launch “Homes for All” Campaign

Detroit People’s Platform
Launch “Homes for All” Campaign

September 17, 2018
Contact: Amina Kirk
313.338.9396
amina@detroitpeoplesplatform.org

Detroit  is enjoying national attention for its revitalization efforts, but not everyone is benefiting equally. The revitalization of the housing market includes building and renovating mostly luxury housing that the average long-time Detroiter can’t afford to live in. 

On average, Detroiters pay 60% of their monthly income for housing, double the recommended 30%  and one of the highest in the nation.1

As more and more high rent units are being developed,  affordable housing is disappearing in Detroit and many of our families are experiencing high rates of eviction.2   

Today, Detroit People’s Platform will launch our Homes For All Campaign to address Detroit’s housing crisis.  And one of our first areas of focus will be the Affordable Housing Development & Preservation Fund, a Housing Trust Fund established as part of the Inclusionary Housing Ordinance in September of last year. 

Detroit People’s Platform, along with other housing advocates, created the Detroit Housing Trust Fund Coalition in 2015 to address the housing needs of low income Detroiters. The Task Force worked for over two years with then Council Member Mary Sheffield for the passage of this ordinance. 

This Housing Trust Fund will assist low income Detroiters with rental assistance, funds for home maintenance and repair for low income home owners, and assistance with relocation. The Housing Trust Fund is funded by the city of Detroit based on a small percent of annual city commercial real estate sales.  

The Detroit Housing Trust Fund Coalition was promised Detroiters would receive $2 Million Dollars to get the trust fund started, and assistance to secure additional funding. The Task Force is disappointed this $2 Million Dollars promised was removed from the budget. 

The Detroit Housing Trust Fund Coalition supports Council President Pro Tempore’s initiative to secure funding for this incredible legislation. This tool has worked to protect affordable housing in cities all over the country. The residents of Detroit deserve the same amount of funding for our Housing Trust Fund that the city leaders of St. Louis, Philadelphia, Milwaukee, and Pittsburgh provided for their long-time residents.

In the coming months, Detroit People’s Platform and members of the Housing Trust Fund Coalition will organize with Detroiters to demand deeper funding for the housing trust fund in response to the critical housing needs for low income Detroiters. 

  1. http://www.detroitmi.gov/Portals/0/docs/HousingAndRev/HRandA%20Detroit%20Inclusionary%20Housing%20Study.pdf
  2.  https://www.detroitnews.com/story/news/special-reports/2017/10/05/detroit-evictions-threaten-neighborhoods-rentals/106315064/