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Old October 25th, 2006, 06:18 PM   #1
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Detroit Development News

...continued from the previous thread.

Here's a link to the old thread:

http://www.skyscrapercity.com/showthread.php?t=312864
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Old October 27th, 2006, 02:16 AM   #2
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http://detnews.com/apps/pbcs.dll/art.../BIZ/610260362
freep.com

I love seeing stories like this. I was going to go to the forum tomorrow, but learned about it too late. Let's get more people talking "DETROIT"!!


Christopher Leinberger, director of U-M's Graduate Real Estate Program, discusses the concept of "walkable urbanity" in Detroit on Wednesday.

Developers aim to get Detroit on its feet
Renovations, updates to downtown area spur real estate forum on the market for walkability.

Louis Aguilar / The Detroit News


DETROIT -- There are times when Christopher Leinberger has gone to community meetings with bodyguards because of his radical ideas about walking -- like suggesting neighborhood planning that encourages residents to walk up to six blocks to get to stores and entertainment.

"I have an associate who regularly receives death threats" for suggesting the idea, said Leinberger, who is director of the University of Michigan's Graduate Real Estate Program.

Many people don't want high-density housing and storefronts in their backyard, Leinberger said. "Thirty to 40 percent of us want to live in driveable places," he said.

But another 30 percent to 40 percent are attracting to urban living where they rarely have to drive -- places like downtown Royal Oak, Birmingham and Ann Arbor.

Academics like Leinberger and real estate developers interested in downtown Detroit say creating a similar walkable urban experience is crucial to city's growth.

Many of those proponents will gather today and Friday at the 20th annual University of Michigan/Urban Land Institute Real Estate Forum at Cobo Center in Detroit.

At the forum, Leinberger plans to present research showing that downtown Detroit is well on its way to becoming a place where people want to live, shop and dine out. And, he says, creating a walkable Detroit is crucial to the city's economic future, he said.

The presentation will be part of an official strategy for a walkable downtown to be unveiled early next year by the Detroit Economic Growth Corp. and the Downtown Detroit Partnership.

Impressive progress made

The forum will highlight some of the catalysts of downtown Detroit's resurgence, such as the $180 million renovation of Book-Cadillac Hotel and the influx of 4,000 mostly young, educated and relatively affluent people to the downtown core since 2000.

Leinberger is impressed with the recent progress. "You made all the right decisions," he said.

"There is not a wrong decision I can see that this metropolitan area has made regarding downtown over the last five, six or seven years."

"If so many of us want (walkable urbanity) and you don't offer it, from an economic point of view, you're out of luck," Leinberger said, as he took a quick walk downtown Tuesday evening. "Those people will move to Chicago or someplace else to find it."

New Detroiters valuable

And it's not a group -- educated, influential -- that a community wants to lose.

Leinberger will tell forum participants that average household incomes of downtown Detroit is $59,300, which is 33 percent higher than a previous estimate based on 2000 census data.

As a whole, 83 percent of new downtown residents have a college degree or better.

And there is a larger population base than previously thought, his research shows.

The study also shows that of visitors to Metro Detroit, 35 percent come for the casinos, 23 percent come for the nightlife, 22 percent for social and family events, and 20 percent for professional sports.

The research notes that a large number of those activities are concentrated downtown, which itself draws 15 million visitors a year.

"That makes downtown Detroit an urban entertainment district that appeals to adults.

"That's a unique position," Leinberger said.

In contrast, other cities have activities more attractive to families, such as sightseeing, shopping and dining.

Further expansion ahead

Attending this week's forum are the biggest developers in the nation, including Albert Ratner, co-chair of Forest City Enterprises; Sam Zell, president and chair of Equity Group Investments; and Stephen Ross, chief executive officer of The Related Cos. The University of Michigan's business school is named after Ross. All three have Michigan ties, Leinberger said.

Other proposals include creating a business improvement district, in which properties are taxed for sidewalk and street cleaning, and roving ambassadors, such as those who greeted Super Bowl visitors.

Leinberger envisions a downtown Detroit with a population five times it current size.

"If you build out downtown, there'll be 50,000 to 70,000 people in this one square mile. Build out midtown, that's another 70,000 people," he said.


Talking about walking

What: 20th annual University of Michigan / Urban Land Institute Real Estate Forum
When: Thursday and Friday
Where: Cobo Center
What will be happening:
The forum will highlight the market drivers of Detroit's resurgence and recap the progress to date, such as the $180 million redevelopment of the Book-Cadillac Hotel.

The forum also will host real estate leaders, who will examine how to regenerate downtowns and suburban centers. The group will use the redevelopment of downtown Detroit and other projects across the nation to highlight the trend toward walkable urbanity.


Leinberger, right, jokes around with Sweetwater Tavern bartender Michael Webb during his walk around downtown Wednesday.

People will always fight walkability because car culture has been subsidized into the status quo and people don't like change. The good news is that there is a market and a demand to go along with it in DETROIT that can recapture wealth, prosperity, and competition...not only for itself, but for the region which includes pissed off, lazy naysayers...
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Old October 27th, 2006, 06:05 AM   #3
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Great read, great article, but death threats? Come on people, walking isn't THAT bad!?
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Old October 27th, 2006, 06:30 AM   #4
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I am perfectly fine with walking. I don't think I'd ever live in a neighborhood where I'd have to drive to get a gallon of milk or whatever.

BTW, I hope he means 70,000 more for Midtown. In 2000, the population was about 17,000 and that was before all of the new housing in Brush Park, Art Center, etc. I'm sure by now (or at least in the next few years) the population has reached 20,000. While Midtown is only 2.09 sq. mi. and a density of 33,000 ppsm would be very respectable, I'd like to see at least 100,000 in Midtown when it's all said and done. Hell I'd like to see a WSU student population of at least 10,000 alone.
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Old October 30th, 2006, 03:05 AM   #5
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So was anyone down there for the marathon today, my cousin was running it, and it was packed downtown.
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Old October 30th, 2006, 03:42 AM   #6
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I ran the marathon today. Had a fantastic time, wonderfully ran event.

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Old October 30th, 2006, 09:32 PM   #7
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http://www.crainsdetroit.com/apps/pb...G&Profile=1011
Downtown Detroit can support more retail, residential, study says

By Jennette Smith

1:40 pm, October 26, 2006


Detroit has the market demand to support more retail and residential development in and near downtown, according to new research released Thursday at the University of Michigan/Urban Land Institute Real Estate Forum.

City leaders and researchers said the data helps makes the business case for more investment, continuing efforts accomplished in recent years.

“In Detroit there are more people who earn more income and represent more purchasing power than previously believed,” said John Talmadge, president of research company Social Compact. The rest of the team behind the research includes the Brookings Institution, University of Michigan, Detroit Economic Growth Corp. and Downtown Detroit Partnership.

Talmadge and other panelists at day one of the event at the Cobo Center said there are real opportunities based on the new figures. Among the findings:





 The expanded downtown area has a workforce of 193,000. If worker spending is estimated at $1,800 per year, that translates to a spending potential of $350 million.


 There is demand for 125,000 square feet of grocery stores in downtown and adjacent neighborhoods and 389,000 square feet of clothing, furniture, electronics and other non-grocery shopping.


 The market study area that runs north from the river north to the New Center area and east down Jefferson Avenue has median home values of $115,000, up 31 percent from 2006 census projections.


 The downtown core area includes 6,500 residents with average household incomes of $59,300, 33 percent higher than 2006 census projections.




The Brookings Institution’s Alyssa Lee said not only are market fundamentals apparent in Detroit, but so is capital-markets support.

Matt Cullen, general manager of economic development and enterprise services for General Motors Corp., said the new data is important and will be part of the message about Detroit shared nationally.

Other topics discussed during morning sessions at the forum included the importance of mass transit to Detroit, and programs such as Neighborhood Enterprise Zones and Business Improvement Districts.

The theme of this year’s forum is “creating walkability.” Speakers told the group of real estate developers and academic and government leaders they need to think in new ways.

“We have to learn how to create an experience. It’s a much more complicated management job than any of us has done in the past,” said Chris Leinberger, professor and director of the graduate real estate development certificate program at UM, a Brookings fellow, and partner in Arcadia Land Co.

Crain’s also presented Real Estate Excellence Awards for Peter Allen, adjunct professor at UM and an Ann Arbor developer; Andrew Farbman, CEO, Farbman Group; Neil Sosin, CEO, Northern Equities Group; and Vincent Murray, executive director of the Bagley Housing Association
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Old October 31st, 2006, 01:39 AM   #8
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In a newspaper article a while back, Mike Ilitch stated that he would be making an announcement regarding a new arena within a month depending on whether the Tigers continued in the playoffs or not. Is it possible that this announcement is coming up soon? I suspect that he will be announcing the building of a new arena behind the Fox Theater in Foxtown, but it has been extremely top secret.
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Old October 31st, 2006, 02:39 AM   #9
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A hundred trillion dollars says the announcement will coincide with Rock Financial's announcement to move downtown and be the new arena's neighbor at Grand Circus Park. This will come before the end of the year, if not, the end of the year. More than likely during the opening winter celebrations at Campus Martius Park in November.

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Old October 31st, 2006, 02:52 AM   #10
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That would be great if it happened, but why would the city and DEGC be marketing both the Hudson's site and Statler-Hilton site openly at the real estate forum last week if they had those sites locked up?
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Old October 31st, 2006, 03:12 AM   #11
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Because Rock Financial hasn't chosen yet. And wait, aren't u the one who said u had all the "inside" information and now all of the sudden you're doubting that Rock will end up down here?
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Old October 31st, 2006, 03:27 AM   #12
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I report on the City based on what I am told. At first the reports about Rock were solid and now, as my point states, they appear to have crept back a bit. The people on "the inside" are being very tight lipped about both the arena and Quicken/Rock.
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Old November 1st, 2006, 01:20 AM   #13
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what happened to Redico for Hudsons?
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Old November 2nd, 2006, 01:46 AM   #14
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^ Well, they have a brand new 70% vacant building at Campus Martius. If Reidco actually goes through with putting a building on the Hudsons site, I'd be scared. Time to break that contract.
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Old November 2nd, 2006, 03:26 AM   #15
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That's if they were looking to put up a substantial amount of office space on the Hudson's Block, but from what I understand, this is supposed to be developed solidly as mixed-use, with residential, hotel, retail, entertainment, and office space. They could still definitely pull off a mixed-use project.
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Old November 2nd, 2006, 04:09 AM   #16
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Quote:
Originally Posted by NorthAndre View Post
^ Well, they have a brand new 70% vacant building at Campus Martius. If Reidco actually goes through with putting a building on the Hudsons site, I'd be scared. Time to break that contract.
You mean 100%. There's nothing in that building except a security guard and maybe some invisible heat waves to keep him warm.
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Old November 2nd, 2006, 06:44 AM   #17
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But is that Redico's fault? Why hasn't Visteon/IBM moved in? And why did Ernst & Young put their name on the building and not move in offices? Does anyone know why the building is empty?
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Old November 2nd, 2006, 08:17 AM   #18
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I was under the impression that the interior in most of the building is still under construction. Could it be Ernst and Young simply haven't moved in because the building actually isn't completed yet?
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Old November 2nd, 2006, 01:07 PM   #19
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Ernst and Young will be moving into the building this winter. Visteon is paying the lease for the rest. The retail is expected to be occupied soon as well, but no word on exactly what is going in there.
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Old November 2nd, 2006, 09:25 PM   #20
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Manage, why has this one taken so long to finish, or is it really on schedule? I understand that exterior facades are usually the first thing to be finished, but it seems like they've been working on the interior of this small office building for longer than I thought it would.
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