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Axios
11-04-2025
- Business
- Axios
Bond-funded demolition program coming to a close
A five-year demolition program funded by bonds and approved by voters is coming to a close this year. Why it matters: Officials say that by the end of this year, the $250 million Proposal N program is set to exceed the two major goals it began with in 2021: demolishing 8,000 homes and stabilizing another at least 6,000 homes to be saved for private sale and rehab. Catch up quick: A major policy goal of Mayor Mike Duggan's has been demolishing all of the derelict homes left behind as the city lost population over the decades and the Great Recession hit. As federal funding ran out, the city sought a new way to finance the work, which has both received praise and sparked controversy. Detroit voters approved a ballot initiative in 2020 that allowed the city to generate funding by selling $250 million in bonds. The city had spent $203 million as of September. The latest: Duggan described Proposal N as a success this winter when he pitched his last budget to City Council. "By the end of this year, almost every land bank house that needs to be demolished will be demolished, and they'll be down to about 1,000 they have to sell," he said, down from 47,000 vacant land bank homes in 2014. By the numbers: As of late February, 7,472 homes had been demolished with the funding. Per city figures sent to Axios this month, a total of 8,500 are expected to have been demolished when Proposal N ends at the close of this year. Proposal N's second goal was preserving homes by cleaning them out and boarding them up with a high-strength, clear material, with the Detroit Land Bank Authority then selling the homes and homeowners rehabbing them. Between the lines: The city says 8,805 vacant homes had been sold through the land bank as of February. Per recent city figures sent to Axios, a total of 10,400 will have been sold by the end of the year. Proposal N funds were used to stabilize just 4,700 of those homes as of March, though, per demolition department figures. That's for good reason, city spokesperson John Roach told Axios in an email. The city didn't have to stabilize as many homes as it originally projected, because more buyers have been willing to purchase and stabilize homes themselves. Context: Detroit saw interest in rehabbing vacant homes surge during the pandemic, per local researcher Alex Alsup. Proposal N "really helped us save a lot more properties because it has helped speed up the [home-preservation] process and also helped strengthen the market a lot," Rob Linn, director of planning and analysis at the land bank, tells Axios. Friction point: While Proposal N was popular with voters, it was also a magnet for criticism from activists and some council members because of Detroit's controversial history with demolition — and because it doesn't address the systemic problems behind home vacancy and evictions.
Yahoo
26-03-2025
- Business
- Yahoo
Top takeaways from Mayor Mike Duggan's final State of the City address
Mayor Mike Duggan enchanted an energetic crowd at his final State of the City address inside the new Hudson's Detroit skyscraper, highlighting his administration's successes of confronting Detroit's dire issues over the last decade while reassuring Detroiters a promising future. Duggan distributed praises among residents, business leaders, Detroit's clergy community and politicians for helping the city emerge out of his hardships, particularly after the city filed for municipal bankruptcy before his taking office. In his 12 years as mayor, Detroiters have witnessed ample development and building restorations, crime reduction, eliminated abandoned housing and blight and restored recreation centers. But looming neighborhood issues remain, which Duggan cited as the city's "biggest battle" in the last 12 years. "I thought we could bring every neighborhood back. It was started by demolishing it at rates faster than anybody in the country," Duggan said, adding that since taking office, the city had 47,000 abandoned houses. Through a partnership with the Detroit Land Bank Authority, which sold 15,000 houses and expects to have 1,000 by the end of the year, neighborhoods are expected to improve. Here are some takeaways from his speech: More: Mayor Mike Duggan drew Dan Gilbert, roaring audience for his final State of the City speech Many predicted a bleak future for Detroit when the city's unemployment rate reached nearly 20%, but Duggan attempted to maximize opportunities on the city's vacant land. Through his tenure, several manufacturers stepped in to develop facilities on those sites, which would open up hundreds or even thousands of jobs. These included several automotive companies and major businesses, such as Amazon, to anchor a business center at the old State Fairgrounds. Last June, Ford Motor Company restored and reopened the abandoned Michigan Central Station, a long-awaited development showcasing elaborate attention to details in its restoration. In 2014, Detroit was considered the "most violent city" as residents and police officers left. The city consistently boosted public safety by hiring more officers, providing them $10,000 in raises and advocated for Community Violence Intervention initiatives that have had a big affect on reducing neighborhood crime. Duggan said 99% of the police department's positions are filled to date. Duggan hailed a major drop in homicides in 2024, marking the lowest since 1969, and commended Community Violence Intervention initiatives like ShotStoppers for reducing gun violence in the city. Since taking office, Duggan was tasked with balancing the city's budget and growing revenues. In his latest budget address, he proposed several financial boosts across multiple departments, thanks to increased revenues from more income tax collections as people have moved back to the city — reversing a decades-long decline in population — and new business have opened. Funding homelessness initiatives to increase shelters and beds, hiring more Detroit Department of Transportation drivers and mechanics, buying new buses, and boosting public safety were among the investment priorities in his $3-billion budget proposal to Detroit City Council. Several investments include new parks and proposed projects, like bringing a multi-sports complex and an entertainment district to the riverfront. The mayor highlighted transforming what would have been a condominium complex on the East Riverfront into Gabriel Richard Park, paving the path to further developments along one of Detroit's most visited attractions. That includes Riverside Park on the west side of the riverfront, which was previously abandoned and closed, and rebuilding AB Ford Park on the east side, and Ralph C. Wilson, Jr. Centennial Park at West Jefferson Avenue and Rosa Parks Boulevard. Plans to partially demolish two towers surrounding the Renaissance Center, Michigan's tallest building and an icon of Detroit's skyline, have been a subject across the city in a proposed effort to redevelop the riverfront. General Motors moved into the building in 2000 but recently announced it would move into Hudson's Detroit. Businessman Dan Gilbert's Bedrock firm and GM are partnering on a proposal to remove two of the RenCen five towers — those facing the riverfront — while the center hotel tower would remain as a hotel, the two remaining towers would be reconceived: one as an office tower and the other as apartments, which would include affordable housing units. The plan also calls for a quarter-mile park for an entertainment destination similar to Chicago's Navy Pier. Restoring the two towers proposed for demolition could be an option, but Duggan added it would be cheaper to build entirely new housing due to the building's layers of steel and concrete, which would require extra work to run plumbing and utilities. Despite mixed reviews about the RenCen proposal, Duggan promised better days ahead for Detroiters. "You're going to have more days like we had last April," Duggan said, referencing the 2024 NFL draft, which drew about 775,000 visitors, followed by celebrating "an even bigger event ... when the (NCAA) Final Four comes to Detroit," landing a grand applause and cheers from the audience. Dana Afana is the Detroit city hall reporter for the Free Press. Contact: dafana@ Follow her: @DanaAfana This article originally appeared on Detroit Free Press: Top takeaways from Mayor Mike Duggan's 2025 State of the City address
