Return to Detroit City Council Formal Session, 10 a.m.
Live reporting by Kayleigh Lickliter
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Pleas for affordable not luxury housing; OIG expects debarment for Inner City Contracting

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Agenda: https://bit.ly/3u3NKU0

Note: you can access relevant documents by clicking the 📎 icon next to each agenda item

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The public can access City Council’s calendar, links to join meetings virtually and watch previous meetings on City Council’s website.

Watch today’s meeting live on Channel 10: https://bit.ly/3JMHuW4

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If you’re following along with me today, watch for a ‘🚨’ to signify the start of public comments

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The controversial tax abatement that Dan Gilbert has requested for the redevelopment of the Hudson site is BACK on today’s agenda. City Council has delayed the vote the past few weeks. Read more here: https://bit.ly/3nprhgC

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More coverage courtesy of @metrotimes!

https://bit.ly/3yq9lsn

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The meeting is called to order at 10:01🥳 https://t.co/As36NVgPhu

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Invocation is by Pastor Dion Walls this morning. https://t.co/DpiaGJSwCN

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Whitfield-Calloway asked to remove the testimonial resolution for Hon. Dawn Isom from today’s agenda. No explanation provided.

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Council member Young is presenting a testimonial resolution for Ms. Lillie Lester, the first African American Woman to serve as Seargeant of Arms in the Michigan State Capital and first to serve in any state legislature. Today is her 100th birthday! 🎂 https://t.co/Qq3fzWuEoa

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She accepted the award from Councilmember Young II, who she said was a trusted advisor to her.

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Correction: not sure if it’s today, but they’re celebrating today!

https://twitter.com/kayleighrenel/status/1541786453742608385?s=20&t=LjtMqWMZD0Z-Ygi31I-YxA

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Councilmember Young is presenting another testimonial resolution to Sean Werdlow for his work related to tax and public financing. Mr. Werdlow (top window) served as the Debt Manager for the City of Detroit. https://t.co/mhZIlLUHOJ

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Mr. Werdlow said he’s spent a lot of time at the table with City Council and worked on significant projects along side of Mr. Ivy Corley, LPD (middle) and Derrick Head (not pictured). Those projects include the pension obligation transaction and casino development agreements.

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Councilmember Young is presenting another testimonial resolution for Attorney Carl Collins and his family for their contributions to the City of Detroit. He was present to accept the award and read a statement from his son who was unable to attend as he was in court.

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Spirit of Detroit award recipients are taking photos now https://t.co/X25Eq4TUaz

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Moving forward on the agenda ➡️

Items under Section 5-8 were referred to the appropriate Standing Committees.

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🚨Public Comment is starting now!

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  1. Spoke about the tax abatement and encouraged Council to vote in favor of residents. Also commented on Whitfield-Calloway’s vote against Herb Strather. https://t.co/VsTtEeRa2X
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  1. Spoke in favor of bonuses for DDOT drivers and encouraged competition between DDOT and Ann Arbor. https://t.co/JF1d9nparX
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  1. Has been a victim of violent crime on numerous crime and spoke about Detroit Police Dept’s treatment of her case. As well, various housing she’s experienced. https://t.co/F7VurioX2q
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  1. Passionately opposed the $60 million tax abatement requested by Gilbert. Reasons he noted were that Gilbert is already a recipient of $200+ million in tax incentives.
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  1. Joe, Detroit Eviction Defense - Encouraged City Council to work with the Housing Department. He said there’s still approx. 100 people living in hotels who are being told they have until June 30th to leave. https://t.co/kvWt7k1jY7
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Councilmember Tate thanked Joe for bringing these issues to City Council as they’ve kept them informed. Asked him to provide additional information about the issue so they’re able to adequately address them (i.e. case manager info)

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  1. Said it’s a crime for the city to continue giving tax credits to Dan Gilbert and he won’t pull up the stakes if they vote no. Overall, passionately opposed the tax abatements on today’s agenda
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  1. Said she came to City Council to advocate for someone facing eviction from a hotel. The city’s response was that she wouldn’t be evicted but they couldn’t tell her a move-out date.
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  1. (middle) - said she’s facing false charges against her with a court date hanging over her head. She’s currently living in a hotel. Said it’s like city is building the Spirit of Detroit out of the misery of lower-class residents https://t.co/nKKJ3oOw4p
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  1. Spoke about the # of landlords in violation of the city’s rental ordinance. Said 9/10 landlords filing for eviction don’t have a certificate of compliance.
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  1. (top left) said the city is gas lit by Dan Gilbert so the city is convinced that he won’t be able to continue with the development if they don’t give him the $60 million tax abatement. https://t.co/fUKDWPHULj
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  1. Had complaints about a specific shelter she has experience staying at including food and space. Wants the city to investigate what’s going on.
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  1. Said the food offered at a shelter makes her sick and other public health issues they’ve experienced at the same shelter.
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  1. Said it’s “shocking” that Dan Gilbert is coming to City Council to request a tax abatement. Spoke about issues residents are facing, such as rat-infested apartments.
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  1. Appreciates Council President Sheffield’s treatment of residents during public comment. Said former council member Charles Pugh was rude, Brenda Jones was better, but he appreciates what Sheffield is doing.
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  1. Asked if City Council has done a report about the number of tax abatements that Gilbert has received thus far. Said the hotel issue shouldn’t come as a surprise. Doesn’t feel Council should approve the abatement after the # of residents
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15 (cont’d) have shown up to oppose it.

Councilmember Tate responded and said City Council hasn’t stopped working on the issue since it was brought to them. Welcomed her to the Planning & Economic Development Committee meeting

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  1. Opposed to the Gilbert tax abatements. Said that Council has the power to stop many issues at the table. Feels the threatening stuff needs to stop.
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  1. Had concerns about the Virginia Park streetscape and representation that City Council is offering, which she says is limited. Spoke about the over taxation, contracts for furniture, said there will be recalls if they vote yes on the Gilbert tax abatement.
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  1. Applied for CERA funding back in November, hasn’t received an update other than confirmation that she applied. Said she qualifies and she can’t continue living in a hotel. She used to be a homeowner.
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  1. Said if Dan Gilbert wants more tax abatements, it should be for low-income housing so residents can afford to live here.
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  1. Encouraged City Council to “absolutely vote no” on the Gilbert tax abatement. Thinks it’s “absolutely ridiculous” and says statistics show that abatements don’t work. Doesn’t understand the city’s willingness to take $ away from DPSCD and the library system.
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  1. 45-year resident, has children who went to DPSCD. Listed off a number of issues and concerns that Detroit residents are facing. Opposed the Gilbert tax abatement.
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  1. organizer with Detroit People’s Platform - supports the DDOT driver incentives that are on the agenda for today. Encourages support from City Council.
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  1. Strongly supported the Hudson development. Encouraged the public’s support so their kids and grandkids can experience Hudson like their grandparents. Said Council should vote yes because jobs and the economy is important.
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  1. Owns a couple buildings in Eastern Market. Has no problem with a new Market Zone that’s on the table today but he’s been advocating for about 18 months. Said it hasn’t been included in the new zoning ordinance but has concerns about red tape as a result
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  1. Willie Davis - discussed various concerns related to retirees and pensions and how residents are impacted.
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  1. Supported the Hudson site tax abatement. Said “property taxpayers” are in support with an emphasis on property tax payer. Feels the threats about recalls are petty. Spoke about thinks Gilbert has done, including writing a check to pay for past due property taxes.
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  1. Disagreed with the previous caller. “We’re not comparing reparations, wrong word sister. We’re talking about restoration, not reparations.” Opposed the tax abatement. Feels he has enough money.
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  1. Asked Council to allocate the $60 million for the abatement to the schools. Said Phoenix Academy is holding the community hostage since it closed in 2019. It has had more than one fire since. However, it has a full basketball/volleyball court and garden beds that are unused.
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  1. Opposed the Gilbert tax abatement. Questioned how a man is so wealthy they can give $500 million in philanthropic money, but they can’t afford their development without a $60 million tax abatement.
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  1. was the first person to mention the Supreme Court decision on Roe v. Wade. Opposed the Gilbert tax abatement.
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  1. Said the city has an issue with apathy. Feels the city is corrupt from the top down.
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And that concludes public comment for today!

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All items under section 14 were approved.

15.10 was the only matter that failed to get approval under Section 15.

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Tate, Santiago-Romero and Whitfield-Calloway voted no on 15.4. Here’s the resolution: https://bit.ly/3bCa012

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Council members unanimously opposed 15.10 which is a resolution for legal representation related to a police officer involved in a lawsuit. https://t.co/WEsJlcR1SD

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16.1 - Councilmember Santiago-Roero asked if this was the same contract they’ve seen before for heavy duty vehicle rentals. This is an ARPA contract with Herc Rentals, Inc. (Romulus)

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The contract was delayed due to issues obtaining tax clearances, but they’ve resolved them. This is the same contract as they’ve seen before. 16.1 was approved.

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All items under Section 16 were approved.

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Councilmember Sheffield has various questions about the Home Repair items on the agenda. (17.3-17.4 and 17.6-17.7).

There are 1,700 people still on the home repair waitlist. The city hopes that Renew Detroit will reduce some of the waitlist.

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The city will continue being a point of contact for residents. They’ll be working closely with the organizations as well.

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Items 17.1 - 17.18 were approved. Various public hearings were also set as a result.

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Onto the Hudson site tax abatement. Council President Pro Tem Tate said they’ve made aware that the administration was requesting the abatement be removed from the agenda. Gail Fulton, Mayor’s Office, confirmed. Council members moved forward without comment.

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17.22 was postponed for one week. The remaining items under Section 17 were approved.

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Now on items under Section 18.

Council unanimously denied 18.4 - an emergency demolition contract with Smalley Construction https://t.co/YnjRwiyexg

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Now discussing the Inner-City Contracting demolition contracts. Corporation Counsel Conrad Mallett Jr. is providing additional information about the city’s actions against the contractor.

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Detroit’s Inspector General has issued a Notice of Suspension for Inner City Contracting following an investigation into their business certifications that would have allowed them to obtain leverage in the procurement process.

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City Council has questions about whether they should be approving contracts for work performed if they should not have qualified as a small business. Sheffield said she prefers to wait until the investigation is cleared.

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Corporation Counsel Mallett Jr. said he anticipates OIG will issue a debarment for the company. Moving forward, City Council won’t see any new contracts for Inner City.

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Mallet said that based on contract awards and evidence of work they performed as a result of the awards, if City Council was to deny approval of the contracts for work performed and Inner City was to sue the city for a failure to pay - the city may be ordered to pay

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Most of the questions have been focused on whether City Council would put the city in a vulnerable position if they were to deny the contracts for work performed.

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Sheffield prefers to let the investigation play out before they vote on any contracts with Inner City. She said, “I feel that if they had not purported to be as such, it would have went to a different individual or contractor”

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Young supports postponing the vote. He said “I have a problem with saying that you know, we’re going to pay someone who intentionally, or who, for whatever reason, defrauded the city by claiming he was something he wasn’t”

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Benson supported voting to approve or deny the contract today.

Santiago-Romero moved the Inner-City contracts (18.12 and 18.15) on the agenda back to Committee for one month to allow additional time for the OIG’s investigation to conclude. It’s not clear when that will be.

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18.16 was removed at the request of the administration.

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Now on Section 19.

19.1 and 19.18 are contracts with Smalley Construction and Council unanimously denied approval for both.
19.2 - 19.12 are Inner City contracts and were moved back to Committee

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Whitfield-Calloway voted on 19.13 and 19.39.
Johnson also voted no on 19.39.

Both of these contracts and the remaining items under Section 19 were approved.

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Items under Sections 21-25 were sent to the appropriate Standing Committees.

Council member Young moved 23.1-23.12 to New Business for a vote, noting this was a request from the administration. These are various events.

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Waters motioned to reconsider the vote on 17.23 and 17.24. Both items failed (don’t quote me on that, though)

24.1 was also removed from the agenda, requested by Marcell Todd, LPD, who said the matter needed to be amended as to it’s form

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Members Reports were suspended. And with nothing further on the agenda for today, the meeting was adjourned at 1:18PM 🎉

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This concludes the Detroit City Council Formal Session meeting on Tuesday, June 28th, 2022.

For more meeting coverage, check out http://documenters.org ☺️