DDA Regular Board Meeting
Detroit Downtown Development Authority
Development
Remote
Join Zoom Meeting:
https://us06web.zoom.us/j/88547678183?pwd=Vm93MnFmaWNOaE5TTDdaRUY3aXBXUT09
Meeting notice and agenda: https://degc.wpenginepowered.com/wp-content/uploads/2023/01/01-11-22-DDA-Board-Meeting-Notice-and-Agenda.pdf
Check the source website for additional information
Reporting
Edited and summarized by the Detroit - MI Documenters Team
Note-taking by
Sonja Stuckey
DDA lowers the residency requirement from 5 yrs to 3, gives $25M to The District Detroit — both for affordable housing
Live reporting by
Amy Senese
DDA lowers the residency requirement from 5 yrs to 3, gives $25M to The District Detroit — both for affordable housing
amy k senese
@amysenese
Good afternoon Detroit! At 3pm I'll be live-tweeting the Downtown Development Authority (DDA) Board Meeting for #DETdocumenters.
Our partners: @media_outlier @BridgeDet313 @PlanetDetroit @freep @wdet @metrotimes @chalkbeatDET @MichiganRadio
@DetDocumenters
Our partners: @media_outlier @BridgeDet313 @PlanetDetroit @freep @wdet @metrotimes @chalkbeatDET @MichiganRadio
@DetDocumenters
11:22 AM Jan 11, 2023 CST
Here's the DDA meeting notice and agenda for today. This link will also direct you on how to join the meeting virtually. degc.wpenginepowered.com/wp-content/upl… https://t.co/IuddDwTbf0
As we get ready for the meeting I'll share some background and agenda items to pay attention to. You can also check out our coverage and documentation of past DDA meetings on the Documenters website: documenters.org/reporting/?age…
More from their website: "The (DDA) supports private investments and business growth through loans, sponsorships and grants, capital improvements to public infrastructure and additional programs designed to increase economic activity." degc.org/dda/ https://t.co/z8pDC2yZNS
Today, look out for the "Housing, Office, Retail Development & Absorption Fund—Modification to Loan
Parameters for Affordable Housing Units", previously discussed on Oct 26 & Nov 9 of 2022 and is related to Duggan's announcement yesterday: freep.com/story/news/loc…
Parameters for Affordable Housing Units", previously discussed on Oct 26 & Nov 9 of 2022 and is related to Duggan's announcement yesterday: freep.com/story/news/loc…
Axios reported today that "the first development that could take advantage of these low-interest loans is the $1.5 billion District Detroit proposal from Stephen Ross and the Ilitches." axios.com/newsletters/ax…
Back in October, the day before the DDA Finance Committee met on Oct. 26th, it was reported in Outlier that the "DDA Board had cancelled 13 of its last 20 board meetings" outliermedia.org/downtown-devel…
Meeting is called to order at 3:03 pm after a roll call. Meeting minutes from the last board meeting approved. https://t.co/sK7NFPgQff
They quickly went over the Treasurer's report and acknowledged receipt. https://t.co/TT0goqhbH3
Onto projects. In previous meetings they spoke about a residency requirement for affordable housing units in the DDA district. Instead of a 5 year residency requirement, they are proposing a 3 year requirement. Now a member is asking about displacement and if 3 years is enough. https://t.co/WMYoIpR3LL
The same member is now asking about gentrification. He doesn't know why they should agree to a 3 year residency requirement. It's hard to tell who is speaking, there are also people sitting around the table. https://t.co/Mva665nddP
He thinks the people who have been here for 3 years, are likely to be younger, and a whole new population of people, not the older residents who have been here longer. He's asking who are we doing this for? The housing department?
Someone sitting on the outside of the table is answering questions, maybe from HRD, but it's hard to tell what he's saying or who is speaking.
Here's the board member pictured with his two hands extended, that's asking all these questions. https://t.co/mqSyuZ4lfb
They've moved to table this discussion until someone from HRD can get on the line to answer their questions. Onto the next two items, with Olympia developers presenting with a slide presentation in person. https://t.co/3Mb0Ti2zc6
They are now going over current projects and the number of affordable units and various AMI (Area Median Income) https://t.co/QLeywbFV6X
Also slides touting success with new restaurants, shopping etc... https://t.co/Pq42S9YPEr
They are asking for support with this proposal--saying every building in their proposal with have affordable units. This is how we make downtown "inclusive, vibrant and affordable for all". They also said, "live, work, play." They are going over specific buildings now. https://t.co/U6lKdicHFA
They are really emphasizing affordability and inclusivity, as well as downtown views, amenities, etc. https://t.co/YF0I0oKbLa
They are also talking a lot about the number of jobs for each project. They are calling the affordable units, "deeply affordable." https://t.co/dwaMNR4dF7
These are the "big numbers" they want everyone to walk away with. A member asks as they are finishing, what is the actual # of units that fall under these affordable unit requirements? The answer was 150. https://t.co/KcL9ihSjyD
Board member Hosey is asking for more details. Another member says he's doing backflips over the affordable housing units in these investments and the DDA's role in providing housing. Donald Rencher, the Group Executive for Housing, Planning and Development has joined.
They are tabling the last item and moving onto Infrastructure. Presentation by Nevan Shokar. https://t.co/8afMVYVuR7
This is a presentation from the DDA Finance Committee, which is requesting a maximum reimbursement amount (or cap) of $25 million, with the purpose of having the DDA invest in public infrastructure to support transformational development. This slide lays out the timeline. https://t.co/EtS79N2Wh7
There's a question from Richard Hosey if this is sustainable, what is the source of the funds, how does it work? Someone is answering from behind the table but the audio is cutting in an out.
Richard Hosey is a developer and sits on several boards, including the Detroit Housing Commission (DHC) crainsdetroit.com/build/build-ri…
Julie Schnieder is on now from HRD. Member Beatty is the one that was asking the questions earlier about changing the residency requirement for affordable housing units downtown from 5 years to 3 years. He's asking about how this will effect long-term residents. https://t.co/B95D1qJ2v0
Half of the 20 percent of affordable units downtown or 10 percent of units in any project downtown would have this residency requirement in order for the developer to qualify for loans for affordable housing. Previously they discussed a 5 year requirement, but now discussing 3.
Schneider is saying moving to 3 years reduces the burden of proving residency. She wouldn't want people who have been here and can't prove their residency be left out.
Beatty is asking if this is a uniform change or a project driven change. Donald Rencher is speaking now. He's top right at the table with a black blazer and white shirt. https://t.co/NFckOzPWrn
Hosey is saying does this proposal make it easier for a Roseville native to live downtown vs a Greenfield/Joy Road Detroiter? How can we make sure they have their documentation whether they are a 3 or 5 year resident? Let's drop the barrier any way we can.
Donald Rencher is speaking but its hard to hear everything. Rencher thinks there's a way to be impactful without creating an administrative burden.
Another member is asking "If we take the extraordinary step of forgiving a loan, don't we want residents that have been here longer?"
A woman is answering, it's not a requirement, it's an incentive. "It's just a way to get the developer to try harder to include affordable units." There may be forgiveness later. 20% must be affordable between 50-70 percent AMI.
She continued: the reason for this proposal is not to reduce the burden on the developer, its because of a request from HRD to encourage affordable housing units.
Beatty is pushing back hard. He's saying these projects can't gobble up all the money. He's concerned about Paradise Valley and other community projects that need money. It was really passionate and it got quiet in the room.
Here's a list of board members from the City of Detroit website. https://t.co/AwRcsUJh6s
The man standing up and answering some questions is Glen Long, from the @DEGCAllBusiness and Chief Financial Officer and Executive Vice President of the Administration degc.org/teams/glen-w-l…
The audio is not great unless they are sitting at the table and facing the microphone/speaker, which is in the center of the table.
The Chair is asking, "what you're saying is, there are other funds, whether it's DDA or another pot somewhere, are you saying there are other funds to create a pledge that we could be deliberate about to address the concerns at this table?"
Glen Long walked over to the chair with a laptop, but the video went out and the audio is muddled. I can hear Hosey's voice. https://t.co/BFy6boJtwL
I think what happened is Glen Long took over the Zoom projection with his laptop. We can't see what they are looking at, but they are looking toward the camera. https://t.co/CmLOyascdj
The concern is giving away all the money the DDA has to one developer. Glen Long is going over numbers & talking about hypotheticals. I can see the room better, and it's clear there's a good amount of people observing the meeting in person. It's hard to follow the discussion.
Here are the requirements, terms and timeline to encourage long-term deeper affordable housing downtown. https://t.co/hb1ebrve4P
Now circling back to Project I. The chair wants to entertain a motion. Beatty is the single member opposed, the rest are yeas, and the motion passed. Same on Project II and the motion passed with no one opposed. There were 2 opposed to Project III, but the motion carried. https://t.co/PlBbEbg7Jd
The Chair exclaimed that was a good discussion. Now the Chair is asking for public comment, there was no one from the public who wanted to speak, no other business, so they adjourned the meeting at 4:52 pm. I believe the Chair is Sonya Delley. pace-equity.com/team/sonya-del…
If you have any questions, comments, or corrections please email documenters@outliermedia.org. For meeting coverage, check out documenters.org
Reporter @samueljrob from Axios was in the board room today, here's another view of the meeting with Glen Long standing up and members Beatty(left) and Hosey(right) facing each other and looking at Glen Long.
twitter.com/samueljrob/sta… https://t.co/YFlmqkGUpW
twitter.com/samueljrob/sta… https://t.co/YFlmqkGUpW
CORRECTION on who the chair was today via this list from @davidpalmer You can see that @MayorMikeDuggan is officially the chair but likely never in the meetings, so Nicole Sherard Freeman is the "Personal Representative for the Chair." twitter.com/DavidPalmer76/…
More on Nicole Sherard Freeman, the Chair today: she is also the Group Executive of Jobs, Economy & Detroit At Work detroitmi.gov/government/may…
@MalakSilmi reported that the DDA board are "all appointed by the mayor. They have full-time jobs or commitments outside of their board duties..." and that "many work in the development industry." outliermedia.org/downtown-devel…
Here's more background on some DDA Board members with a "checkered financial past" from a Detroit News article in 2016. Current members profiled here are Richard Hosey, Austin Black, Charlie Beckham, Marvin Beatty, and James Jenkins. detroitnews.com/story/news/loc…
A couple people asked me about this: I'm just going to lean on previous documentation to answer this, as I happened to document the DDA Finance Committee Meeting on Oct. 26th where this was first proposed. I took notes on the meeting. 🧵
twitter.com/kayleighrenel/…
twitter.com/kayleighrenel/…
Today, Shokar went quickly through the presentation on the "Additional Loan Parameters for Affordable Housing Units", but had previously presented the proposal to the Finance Committee on Oct. 26, the DDA board on Nov. 9th, and the Finance Committee again on January 6th, 2023.
In that meeting, the Draft Audit for FY 2021-2022 was presented. Here are some graphs presented that give a summary of the DDA's assets, net position, revenue, & expenses from 2021 to 2022. Glen Long said then that the “DDA was on solid financial footing.” twitter.com/JackFilbrandt/…
At the end of the Audit agenda item there was lots of laughter in the room as someone acknowledged that they “had money?” and someone said we got to know how Mayor Duggan feels when he looks at the finance staff and says, “there’s always money.” docs.google.com/document/d/1sN…
This happened before Nevan Shokar's presentation of "Additional Loan Parameters for Affordable Housing Units" for the Housing, Office, Retail Development, and Absorption Fund on Oct. 26th, where there was a long discussion. My notes can be found here documenters.org/reporting/?age…
Shokar said the DDA has the ability to make amendments to the loan parameters as market conditions change. They want to ensure that housing stock in the DDA is inclusive & more deeply affordable than 80% AMI, which was based on the executive orders sent out 6 years ago by Duggan.
In 2017 the City Council passed a city-wide affordable housing ordinance, which was originally proposed by Sheffield and amended by Duggan before passing. metrotimes.com/news/detroit-g…
As @violetikon reported above in 2017 "the amended ordinance — which passed unanimously — changes very little, because the Duggan administration had already been holding most developers to the 20 percent of units for people at 80 percent of AMI standard..."
Shokar said on Oct. 26th that “We want to challenge developers to do better, and make more units affordable within the DDA.” They also discussed requiring that any developer receiving a loan from this program & through the DDA would have to include "legacy Detroiters."
Then followed a discussion of what defines "legacy" Detroiters, which one member asked, is that 30 years? They compared the revised recreational marijuana ordinance, which defines legacy as 10-15 of the last 30 years depending on the applicant. detroitmi.gov/departments/ci…
One member said he watches a lot of City Council meetings & there was a lot of dialogue going on about affordability, people understand that 80 % AMI is still not affordable and this seems proactive because there are a lot of questions on affordability coming from City Council.
During this discussion on Oct 26, another board member asked Shokar if there were any projections about what difference this would make, based on the strong demand they are seeing now for housing within the DDA. Shokar said the biggest difference is developer incentives...
...which would encourage a 50-70% AMI deal instead of 80%. Then Shokar gave the example of a dishwasher at the Shinola Hotel being able to work & live downtown in one of these units, but provided no evidence to support that unless it was included in their internal documents.
Shokar said this opens up an additional source of funding for the developer. This new AMI requirement would be viewed favorably by City Council, which has to approve these projects. Developers would have a financial incentive for deeper affordability.
On Oct. 26 Shokar concluded the presentation by saying that the Mayor and Council are trying to drive to a deeper affordability figure so that 80% AMI doesn't define affordability any longer. The Finance Committee voted to send it to the DDA Board.
When the plan went before the DDA Board on Nov. 9th, they spoke about the residency or legacy requirement but didn't get into specifics in terms of the number of years. https://t.co/rpyOwtRlPj
When they got into the discussion at today's meeting about the residency requirement they stated that it would be a minimum of 3 years instead of 5. I'm not sure if they ever proposed 5 years publicly, but this is the point that member Marvin Beatty started pushing back.
As reported here, Duggan announced this plan yesterday by saying “We have a clear vision to create a city, including our downtown, where Detroiters of all income levels can afford to live side by side in the same buildings as people of much higher income." freep.com/story/news/loc…
Here's reporting from Channel 7 three months ago, which illustrates what tenants face when they are looking for low-income or affordable housing in the City of Detroit. There is an "urgent need." youtube.com/watch?v=V1AZ-x…
Reporting here by Tracy Rosenthal (@two__evils),
a founder of the @LATenantsUnion, goes through some background on affordable housing nationwide & the problems with using AMI (Area Median Income) & how that's playing out in Los Angeles and around the US.
newrepublic.com/article/161806…
a founder of the @LATenantsUnion, goes through some background on affordable housing nationwide & the problems with using AMI (Area Median Income) & how that's playing out in Los Angeles and around the US.
newrepublic.com/article/161806…
Another correction, I meant to share this Channel 7 article instead of the above (although that report is also insightful). This report contrasts the building of new units in Detroit with the experience of tenants looking for low-income/affordable housing. youtu.be/ygl6BfOGx-o
Attachments
Agency Information
Detroit Downtown Development Authority
The Downtown Development Authority (DDA) was established pursuant to Michigan Public Act 197 of 1975, as amended, and supports private investments and business growth through loans, sponsorships and grants, capital improvements to public infrastructure and additional programs designed to increase economic activity. Funding for DDA programs comes from a number of sources such as grants, contracts, interest on loans and captured tax increments – increases in property taxes that result from new investments – on approved developments. Property owners within the DDA district pay a 1 mill property tax to fund the basis operation of the DDA.
Documents
No documents available