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Budget Hearings - Detroit Institute of Arts, Planning & Development Department (BOTH CANCELED, Planning Committee discussion of District Detroit instead)
Speaker 1
The city to provide us any agreements that had already been previously agreed to be it through the DDA, or through design or about honorable body prior to coming to the NEC. And so we want that was our starting point as to what had already been committed to. And then we wanted to build upon that. And so the 100 million dollar commitment to disadvantaged business again, which started off as two African American minority owned businesses, for all goods and services was not a previously agreed to commitment by the developer
Unknown Speaker
Johnson shores right. Thank
Speaker 2
you, Mr. Chair. So that that's not I appreciate you sharing that information. I wasn't necessarily implying that but I think what I'm getting to is if we have $100 million dollars in this agreement, and we have the expansion of the category, so it's disadvantaged businesses, Detroit based businesses, Detroit based small businesses, Detroit headquartered businesses and Detroit resident businesses, if I asked the developer right now to pull a list of all of these various types of businesses and how much money they they've spent with them thus far as they're working on this project, I'm sure they will have some dollars that they can identify. And so I'm just just looking at it from the standpoint of added benefit for it to be in this community benefits agreement that maybe the developers were not already going to do expecially because of the expansion of how we've defined these things, and where these resources are going to be utilized.
Unknown Speaker
Thank you, Mr. Chair. Thank you, colleagues. Vice Chair you want to anything to
Unknown Speaker
outcome. I'll come back, Mr. Chair. Okay.
Unknown Speaker
Counsel, present. Thank
President Sheffield
you. Thank you, President Pro Tem and to the committee. I first want to thank the NEC members, I was able to attend most of the hearings and I got a chance to see the work that you are putting in day in and day out to get us to where we are today. So thank each and every one of you all for your support and your work on this particular agreement that is before us. I also want to give you a shout out is Miss Logan. Correct. Miss Logan, I know you were the lone no vote and I know that can be tough, but you stood on principle you stood on what you believe and I just want to thank you for for your your willingness to do that. I know that can be tough, so I just wanted to recognize your work as well. So my questions really are around the $100 million spin as well too. And I just want to get clarity one, that the way it reads now is it's a target, right? It is not actually security, a guarantee or a commitment that $100 million has to go to these various entities. And so when I get letters from organizations that say, Hey, I support this because it's $100 million commitment to disadvantaged businesses. I think that that's very misleading. And so if you can speak to what the agreement actually says it is a target. It is a goal. So the developer does not necessarily have to reach this $100 million target. Right. And so I wanted to highlight that first and I wanted you to touch on that because to me that's very important a commitment to actually saying shall procure $100 million, but it's very for these various entities is different than you should have a target or goal. Can you speak to that please?
Speaker 1
Yes. Madam President and I also will also at some point defer to court counsel, as relates to some of the legal terminology. The community benefits agreement is our understanding we've been told will become a binding document. That is part of all the other incentive packages that are included. We work within the parameters of what we are, we're told is allowed or legal as to what we can sort of demand or require or ask for within the confines of your community benefits or debts. And so as relates to the language, be at targets or mandates. I'm not sure if for instance, how much of all of this whole agreement or even for instance, the or executive orders or other agreements, other components of you know, the development agreements with the developer are tied into mandates or are they are targets but I'll defer to the law department as a relationship
President Sheffield
and in my read of of these the community of benefits thus far, there are certain categories that have shall and that you are committed to reaching those targets this one is more open to a target or goal. And so if someone could possibly speak to that because you know, this is a big part for me to secure my support for it because I think it is huge if we can get $100 million secure for and I want to get more into the definitions that member Johnson mentioned specifically Detroit based or African American based businesses, but right now it's simply a goal. It's a target. So I'm not sure if someone from the administration can speak to to this particular clause in the agreement or provision
Unknown Speaker
where we have this response,
Unknown Speaker
Mr. Chairman, Brian Cole, please.
Speaker 3
Yes, through the chair Brian Cohen sued Detroit law department. The large law departments role in the city's role in this process has really been to facilitate the negotiations and the discussions between the neck and the developer. And those recommendations of the NEC are what's before you in this agreement today. And I would just say that, throughout the process, this has been discussed as a target by the developer and we are sensitive to a hard line when includes any sort of race based component because of the constitutional issues that it raises, and as Justice Malad has discussed previously, we took a very inclusive kind of approach and we're trying to really get as as close to the line as we think is justifiable and constitutional. And some of that translates into as you heard the word disadvantaged being included in the section, as well as using the targeted language that council President raised just now. Yeah, but
President Sheffield
that has nothing to do with the commitment to secure or procure $100 million dollars disadvantaged businesses is the word that we have currently within our creo. ordinance. And so I think, for me, I guess I'm just a little bit confused as to why this is just a target or a goal. I would like to see the developers commit to this and the way it's written again, states that it can be disadvantaged Detroit based Detroit, small Detroit headquartered or Detroit residents, so it's not specific to a race. And so again, that will be one of my Ask. Additionally, I'm a little bit concerned because the developer developer, in theory, could secure all of the 100 million dollars to a Detroit based businesses which can be non black. Right? And so there's no no guidelines, no benchmarks around how do we ensure that a portion of this $100 million actually goes to disadvantaged businesses? And so I just think that this particular area of the community benefits agreement could be strengthened. Also, there is no timeline for when this money has to be spent. So in theory, the developer could wait 510 20 years to actually start procuring is $100 million and I know we had issues on you know, past performance in the in the past and so I would like to see some more benchmarks around when this procurement has to be actually procure in this particular area. I also want to get clarity on the 30% were the executive order 2014 Dash five one construction. So is this in addition to the original or the executive order that says 30% of construction has to be spent on Detroit based businesses?
Speaker 1
So through the Chair, Madam President of the NEC, we did ask for we want to add make sure that we did include we were asked and there was a number of people in the community even though you already have executive orders or certain things by ordinance to include some of those things in the agreement as like belts and suspenders. So it's not over and above what is executive order, but it was just making sure that executive order was understood that that you still are going to have to be in compliance with the executive order and that this consultant that was referred to also this third party will be tied into the executive order oversight, as well. And so because we wanted that consultant, it to be tied to them meeting those goals, we put the actual Executive Order language in the agreement to tie it into this consultant. And to your point we were very concerned about you know, again, I reemphasize we started out at 10% of all purchases all goods and services purchased to African American, Hispanic owned businesses. We got to this language here. We did ask the developer as agreed to enter into a third party arrangement or document that cannot be a party to this document because of the legal challenges that they would enter into an agreement with a third party validator or organization that defines disadvantaged business more specifically, that then gets us sort of outside of those legal parameters. They have publicly agreed that they would be a signatory on such an agreement. And so I know there are some discussions we cannot be part of that as the NEC, because we are technically part of you the city, but a third party private entity can enter into any agreement and so we're hopeful that that will take place where you will have that language more defined and be more specific.
President Sheffield
Yeah, and I know we've talked about that offline. And I would like to see that third party agreement in place if possible, before we actually approve this. I think it was a great idea to go into an agreement with actually defines disadvantaged businesses and gets more explicit as relates to the language and so I'm not sure if that can be done before. We take this up for a vote. We'll definitely would love to see that. And I just want to be clear to Chris. So you're saying that construction spin is included or is not included in the 100 million dollar overall spend on goods and services?
Speaker 1
So our understanding as the NEC was we didn't want them to stopping by construction when it came was above and beyond but you can educate as you are hiring an African American owned construction company, and that hit show 30% that also can be included in your
President Sheffield
the way that again, I've been hearing from community and letters that have been spent sent to me as well, is that essentially post construction $100 million being for disadvantaged businesses on goods and services, but it's all good all purchasing or construction, etc. Yes, okay. Also in the agreement, I did see reference to the executive order as relates to 51% however, there is no I did not see a commitment or any language regarding executive order 2014 Dash five in the agreement whatsoever. And I know that that particular executive order order is only for city funded contracts. And that the developer way since we have to commit to those particular targets, but it was not listed in the agreement to date. So can someone from the city explain why that executive order was left out of the agreement?
Unknown Speaker
Anyone who has response can answer
Speaker 4
through the chair to council president Sheffield, I'll invite a lot of Parliament to correct me if I'm wrong here. But the understanding is that that executive order is applicable. And so the reference to 2014 Dash five is not meant to incorporate that EO into the agreement. Specifically, it's in reference to the ways in which the agreement and investments and program commitments in the agreement are meant to deliver compliance on that executive order 20 to 51% whereas, the point of intersection on the 30% is chair Jackson referenced, meant to meant to be supported by the 100 million dollars spent. So similarly, there's additional thought being given to how to achieve those objectives and deliver more for Detroiters. It's just that that commitment and specifically referenced the 30% 30% executive board Mr. Cole, I see
Speaker 3
your hands up. Yes, through the Chair, just to supplement what Luke said. The references to the executive orders in this document are essentially to to borrow definitions, or to clarify what commitments are as the NEC chair has presented. There was a conscious effort made by the NEC not to duplicate effort or commitments that were already enshrined in obligations through executive orders or different agreements that the developer might have. So the executive order 2021 dash two or the 2014 executive order are not directly incorporated into this document, but that does not mean that they do not apply to the development.
President Sheffield
So just to be clear, executive order 2021 dash two is in the agreement on page. I'm not sure what page is there's no pages on here, but it is listed specifically in the agreement and this is the executive order regarding 51%. So that is in the agreement. However, as I mentioned, 2014 Dash five is not but it sounds like you're combining the $100 million speaking with the executive order 2014 Dash five and I understand that I just think that there could be some room to improve the language around here because it's a bit confusing. It's they're combining construction commitment from the executive order with the overall $100 million dollar spin and that commitment is a target is a goal. The executive orders a shower. So I would like to work on that I saw one of him Pro two. And then I want to move to a second question I have to possibly
Unknown Speaker
turn Miko.
Speaker 3
Just think through the chair just to respond to council presidents question. The language that I believe is being referenced is under the header compliance with executive order. And that is a commitment that the NAC raised that they want to make sure that the developer complies with the executive order by hiring the number of Detroit businesses and Detroit jobs that the executive order requires, as I believe the council knows, the executive order has a penalty if the actual hiring is not achieved. So that language doesn't require compliance with the executive order, which is already something that developer must comply with. It instead states that the developer will prioritize contractors that can meet the actual workforce target without paying a penalty to ensure that the jobs that the executive order is designed to achieve are actually achieved, not just payments made as a penalty for failure to comply with the hiring requirements. All right, thank you.
Speaker 5
Thank you, madam president before we proceed, have the clerk can please note that we've been joined by member young.
Unknown Speaker
So not Mr. Chair. Thank you. Thank you.
President Sheffield
Thank you. So and I know we have we have over 20 Something questions that we submitted in writing and I will further my discussions offline regarding my concerns around that, but I just wanted to address a couple more for the record. And that is of the jobs proposal we're hearing 6000 jobs are going to be proposed post construction. However, there is no commitment that any of these will be or percentage of these will go to Detroit errs and so I wanted to make sure I'm clear that of the 6000 jobs ODM and related would have would not be the in employer for any of these jobs. Is that correct?
Speaker 6
We are the end employer for a small number of the jobs which are in basically the building services property management side of the buildings.
President Sheffield
Can you just briefly state how many jobs those are?
Unknown Speaker
I can pull that number and come right back to you if that would be all right.
President Sheffield
Yes. And then can you and I know right in the past you you have mentioned the various ranges of jobs that will be available in that for my understanding. There was a third party contractor that was hired to conduct a study that went over the various ranges and types of jobs that were will be available. Can you mention again those various job types in projective salaries?
Speaker 7
Yes, Madam President. Thank you. And so in the office towers, we're looking at jobs in the financial services, whether that's loan officers tellers, claims adjusters sales agents. Also we're looking in the tech space as software developers, computer system analysts. The property management side as my colleague mentioned, maintenance and repair work office clerks and general operations managers, particularly in the hospitality space, we see a significant amount of jobs, whether that's in concierge housekeeping waiters, chefs, operations, managers, retail most of all, if not all the projects have a ground floor retail space. So that is salespersons, supervisors, cashiers, again operations managers, and then food and beverage we're looking at folks in the culinary arts industry and that's also associated with hosts and cashiers and then lastly, the construction jobs.
President Sheffield
Okay, and then I know that the Fox Theater now you all have employees that are above the fox, having office space, those individuals will be moving to another space within the downtown Detroit area. Are you all counting any of your existing employees as a part of the proposed 6000 jobs? The relocation?
Unknown Speaker
Yeah, see Mr. Cantor's hand raised?
Speaker 6
Yep. Thank you, Mr. Chair. We are not and the number of jobs to the prior question from a council president. That would be are projected to be related Olympia jobs would be directly would be 63. Okay.
President Sheffield
All right. So of the 6000 jobs and there's just there's no guarantee whatsoever that a percentage of those will go to Detroit because we're not we are not essentially the employer.
Speaker 6
What we what we've done through the commitment in the in the CBA is a is a commitment to encourage and connect all of our tenants with Detroit at work, to encourage them to use the hiring portal and the opportunities that come with that, as well as linking the opportunity connector that we are opening as part of the community benefits agreement commitments to employment opportunities to route employment opportunities, for Detroiters to all of our end tenants and, and employers.
President Sheffield
Alright, thank you and then currently at the LCA, how many jobs are currently at il va and then how many of those are Detroiters?
Speaker 8
Through the Chair happy to address that. We have over 3000 jobs there today including third party contractors with you know, our food service provider and cleaning companies and so forth. And I believe our number of Detroit employees and that exceeds 30%. But I can get to that number exactly here in a few minutes.
President Sheffield
All right, and we did submit this some of these are questions that we did submit in writing can you also speak to the starting pay of your employees now at LCA and I raised this because we have received some concerns about you know how current employees are being treated under distribute trade or ODM and so I just want to get a clearer picture of again, how many of the current workers already traders and what's the current starting pay? For my understanding some employees are not quite at $15 An hour and so if you can speak to that as well.
Speaker 8
I'm happy to address there are a few, very few part time position. And these are individuals working less than two days a week that are under the $15 an hour. But if you're full time, I would say the overwhelming majority are at $15 and above.
President Sheffield
Okay, and so again, though, I did submit that question in writing, wanting a breakdown of that in detail. And then a couple more questions and I'll be done. President potentate, again, we have several questions that we did submit in writing. There's a reference in the agreement that speaks to reducing barriers to employment through non discrimination or marijuana use and second chance for persons with prior convictions. I'm just curious how that applies. Again, if you guys are not be in developer on job, so what jobs are those in reference to?
Speaker 6
Those are in reference to the employment that we have, both within the project as well as within the properties but also our at our company. So for the related Detroit entity, and I am the ODM entity as
President Sheffield
well. So those are just current
Speaker 6
jobs. But I actually expect that there will be more significantly more jobs created than what we've shown here because these were jobs of people actually working in the buildings. But we are going to be adding to our staff and growing our car companies in market as part of the development process to build these buildings.
President Sheffield
Right and I see an additional hand.
Speaker 8
Yes, thank you through the chair, to get back to your question regarding number of residents that are working at LCA that our Detroit residents, it as of January of this year. It's 48%.
President Sheffield
All right, thank you. And then lastly, I just wanted to state I know when the original deal came before city council, I was actually here for it for that particular vote. And it was definitely a difficult decision. But I know that at the time, I did speak to the need for the city of Detroit to receive some type of direct revenue from LCA. At the time we have proposed a ticket surcharge or some type of direct revenue from the entertainment that takes place within the arena. And so with respect to that deal, ODM receives concessions, you all receive parking, television rights, naming rights, all that revenue from the Event Center, and additionally ODM does not contribute any funding directly to the city of Detroit until the Michigan Strategic Fund bonds are paid off. According to a LPD report. The level of the private contribution to the Event Center seems more favorable to ODM in ideally ODM will provide a revenue stream directly to the city of Detroit related to the events taking place in the entertainment district. And so I just wanted to bring up again for the record will ODM and related companies agree to institute a 2% ticket surcharge on entertainment that takes place at the arena to allow for a direct revenue stream to the city of Detroit
Speaker 6
I can speak for the related companies that we have no nexus to any to the arena. We are not you know we are this is a separate development Yep.
President Sheffield
So this is not to related this is not to you of course then this will be to ODM
Speaker 6
whatever finish I just I just also wanted to note that this is a project that in which we're as related the Managing Member of and so, this is, you know, in the context of this project, this is you know, not not really part of what we are what we're proposing at this point,
Speaker 5
but you got to understand that that was an ask there wasn't defining what what a part of the there was an ask.
Unknown Speaker
Penalty for clarifying.
Speaker 8
Right and I do the chair from an audience perspective, very similar to Mr. Cantor's response ODM. is not responsible for the operation of the arena. That is a different division of the Ilitch organization and we can add in intricate agreements for that that part of the organization.
President Sheffield
I would like to again have further discussions with the village organization regarding this it is something that I've talked about for years. I know that the city of Detroit is always looking for additional streams of revenue for our general fund and we do not receive any direct revenue from the benefit of the entertainment that is taking place downtown aside from income taxes. I understand that but we'd love to see some type of 2% Tickets are charged my last question and then I'm done. I just wanted ODM to talk a little bit about some of the philanthropic work that has taken place since the original agreement back in 2014. Some of them my issue again is not what you all are doing now. But what has taken place before this agreement is coming before Council. And so if you could just talk a little bit more about your philanthropic work, work your engagement in the community around various social issues in the city of Detroit since the original agreement was passed.
Speaker 7
Thank you Madam President. And I will take that question. So I'm going to organize the answer in a couple of buckets, particularly our core values where we believe we effectuate change in the city and have a history of doing so. So just a little bit. I'm going to go in the education bucket. Currently we have a significant relationship with dpscd through all of our companies and provide internship experiences for young people and particularly high schoolers in the 11th and 12th grade that has a program that has been going on for roughly 15 years now and we continue to add to that most recently with our real estate development internship program where you saw many of the young people come to public comment and advocate for the project as they understand development and what it can mean for the future of the city. Additionally, we've made financial commitments as well a $1 million commitment to our Learn play score program, which is with the NHL and Red Wings, where we have deployed resources to both educators and students in every K eight and dpscd. Additionally, we have built 20 ballparks around the city of Detroit for youth to participate in their own neighborhoods and baseball programs. In addition to that, we have a deep commitment to food insecurity in the city and most recently we just wrapped up our love kitchen servings throughout the city of Detroit, serving over 5000 people that is something that we do throughout the year and it is a commitment to the city of Detroit as we are as Little Caesars is headquartered in the city. In in regards to economic inclusion, and this came up a little bit earlier. But what has our commitment been to Detroit based businesses 60% of contracts have gone to Detroit based companies and that is a $530 million reinvestment and then also just going to go through this really quickly and I will send this document around it is really a good whip around of all of our impact. But I think most importantly, we've we've had the opportunity to train over 1000 construction apprentice apprentices in the city through our projects, and provided over 20,000 construction jobs. And that is no small number. And so again, I will send this document around to all council members. But our impact has been broad and significant for the years. Thank you and
President Sheffield
thank you Pro Tem for allowing me to ask these questions we have about around 20 questions that will submit in writing and I just want to stay for the record of course I wholeheartedly support, redeveloping our downtown and creating a vibrant downtown. I just really want to ensure that we're able as a council to really dig into the agreement to make sure that it truly benefits Detroiters at people of color black businesses in the city of Detroit and so I am no way trying to stop or stall the progress of downtown. I just want to make sure that as this comes before city council that we have the opportunity to do our due diligence to go through the agreement and make sure that everything that has been promised things that are being stated to community members are actually factual and that are actually in the agreement. So I appreciate the time and looking forward to further discussions with the developers as I continue to look over the agreement. Thank you Pro Tem.
Speaker 5
Thank you, Madam President. I got a quick one here before I toss it over to colleagues if we can go to line item 6.3. That is the request to terminate the Brownfield plan for the Detroit life building till the developers and we had just a brief exchange in a previous meeting about it, what is the request and maybe I should ask the Mr. glassberg first, because this is coming from I know that it was recommended the DB are a recommended termination of this plan. Sir, why are we recommend Why is there a recommendation for a termination of this current brownfield plan for the Detroit life building?
Speaker 9
Thank you, Mr. Chair. The brownfield authority is recommending termination of this because the plan is an old plan. And the plan was a credit only plan it did not include tax increment financing. So the credit has expired the there was no value received from that credits and no tax incentives were received or sent for that. And so we're recommending termination of it for that. And
Unknown Speaker
I'm sorry, I didn't mean to cut you off. You
Unknown Speaker
gotta plan
Speaker 5
for my understanding was for it was approved. And excuse me, the Brownfield development plan was approved in 2007. Is that correct? That's correct. And that means that there was what about 16 years that has now expired, and I received a document response to my questions that indicated that there was no real investment in that property. It was vacant at that time of purchase, no real investment until 2019. And that was an anticipation of this particular proposal before us. If if I'm correct, when does that, is that correct? By the developer or whoever can answer their question. Just want to make sure on the record, that I'm stating facts and not just what I thought I read.
Speaker 8
I'm happy to address Thank you. Thank you, Mr. Chair. The the investment made in 17 was to stabilize and prepare the building, keep it in
Unknown Speaker
working condition. I mean,
Speaker 5
okay, it's just so so but not to actually develop it. And that's what
Speaker 8
I mean obviously, it was to it was to keep the building and conditions in order for development in the future.
Speaker 5
Okay, and so it was initially developed or the least the plan was for office space, is that correct?
Speaker 8
I believe the plan for the original incentive that were discussing was for residents residential development at the time. Okay, and
Unknown Speaker
now what's the Thought for today?
Unknown Speaker
I did. Residential. Okay. So
Speaker 5
it just again, just walking down that road that we did before. I mean, it says that. Well, I won't say what it says here. So why wasn't there any development in that direction of residential housing because I'll tell you, as sitting as the chair now in the second, second term here as the chair of Planning and Economic Development, there was a lot of development, a lot of apartments, a lot of housing that was that comes before this body for approval, and we've seen it done. Why why why was there no true activity on this particular property?
Speaker 8
I believe there at the time of those there were some economic conditions obviously, that arose during those those years of the 2007 Eight economic crisis. Obviously the city went through some difficulty that time. And then I would say the organization's priorities changed in terms of development, where they moved to Columbia Street refurbishment, as well as the Little Caesars headquarters building as well as the arena so priorities of other developments came into play.
Speaker 5
How many how many purchases did a building purchases did Olympia or any affiliated entity with Olympia purchase products? Excuse me after 2007 We have a number.
Speaker 8
I do not have that number at my disposal in terms of an aggregate number of properties purchased since that date? No.
Speaker 5
Okay. So, and I'm saying this from a Detroiter standpoint, not just from a council member standpoint, but if the city provided that benefit back in 2007. And there were challenges then priorities shifted, but yet there was no movement, no real activity on this particular building until the thought process was to live according to the memo I received the response included into this big package and then going back to 2000 and I believe 19 Why should one this body remove this brown fill this brown fill from this project and why should we approve it? To go into the bigger plan that's being asked today?
Speaker 9
Mr. Chair, if I may answer the first part of that question. This brownfield plan again, it only has a credit for the plan. And that that credit is expired, there is no value to it. And so we would be the Brownfields authority would be recommending termination of the Brownfield plan, regardless of whether there was this new proposal for the district Detroit and we will be bringing the summer sometime Allah large slate of terminations for credit projects that are all over the value has as expired for those. But then from a technical legal standpoint, we do also for the district Detroit project, we're not allowed to have two brownfield plans on the same parcels. And so that's from a technical legal standpoint, the termination of the Detroit life building brownfield plan would have to happen before a new brownfield plan. Could be approved.
Speaker 5
So this body decides not to approve the termination of line item 6.3 When there was a denial of that what happens to the Detroit life building within this particular project to the developers?
Speaker 9
We would have a conflict. I guess we would if that was the decision of counsel, we would probably have to have check with legal counsel and what the implications of that would be. But from the, I guess, the surface that our understanding of of the Brownfield Act would be that we could not have two brownfield plans in place.
Speaker 5
I guess what I'm asking though, is if this body decides not to terminate, then to me from layman's terms, meaning that you can't utilize this particular building in the overall project, is that correct? I mean, just let's keep it real plain.
Speaker 9
Yeah, that that could be the implication. I wouldn't want to speak definitively on that. If we haven't had that scenario. happen before, with brownfield plans. So we would, before making a definitive statement would want to check with legal counsel before coming to a definitive
Unknown Speaker
statement on that.
Speaker 5
Was there anyone who can give us any kind of light just shed on it? I mean, I'm pushing back I'm pushing back home because again, this is all you got to look at what folks have done in the past, to look at what we're doing today and hope that things will be different in the future. So that's why I'm really asking this question what what happens? Is there someone from a legal standpoint they can give us a more pointed response because right now is we're just totally not sure and again, from my layman's mind means that you cannot utilize this particular project or excuse me, the Detroit life building in the overall project, at least from a brownfield standpoint. If that's the case, can someone give us just a little bit more clarity on that?
Unknown Speaker
Through the Chair,
Speaker 6
could you just clarify one thing? Is, is your question if you were to approve the transformational Brownfield program, but not remove the current brownfield that that exists for the Detroit Life Program, or is it or is it something different because we just want to make sure we're answering the right way?
Speaker 5
Well, that was yes, maybe I should have said that. My apologies. That's what the assumption that the transformational brownfield is still at play.
Speaker 9
In its third chair, I did check with our DG C's legal counsel, and she had concurred that we would have to research this, this item before giving a definitive statement.
Speaker 5
So in other words, there was just a general assumption that counsel was just going to move forward with it without asking this very important question.
Speaker 9
Mr. Chair, yeah, the given that the plan has no value. The thought was that the council would entertain a termination of the plane
Speaker 4
through the chair. If I may have taken the proof is different. Mr. Chair, may I speak? Yes, sir. Thank you, Mr. Chair. This is Luke Paulson Mayor's office. I appreciate your your question and your concern given that the old brownfield plan had no value, and given that there are a number of old credit plans that have no value that need termination. As a matter of cleaning up the tax rolls, as Mr. Mr. basit Burke noted, we did not mean to be presumptuous in any way about councils councils consideration of this request by given that the transformational brownfield benefits that could be used to redevelop this property are more than a mere brownfield but also involve income tax capture because of the unique opportunity of fitting this particular building into the 10 project program into this interrelated development program. We are supportive of this. This project being part of the transformational brownfield plan in order to maximize its prospects for being redeveloped. The old brownfield plan with the old tax credits expired as they are of no value as they are under an old state tax credit program that can no longer be accessed. If Council were to leave that in place. It would be to leave behind the opportunity that the transformational Brownfield program delivers for this particular project among the nine others in order to see it redeveloped, so beaten that need to be presumptuous, but we hope Council can see the wisdom of seizing this opportunity for this project amongst the nine others.
Speaker 5
Thank you. Thank you. And I still have additional questions, but I want to make sure I offer the opportunity for visiting members ask their questions as well. Comments will still remember what
Speaker 10
Yes. All right. So thank you so much, and good morning to everyone. I just want to I want to get started and my questions are going directly to the developers if that's if that's fine, not to NEC or not to Corporation Council. And the first few came from from the community. Recently we have found out that Ross has pulled out of the U of M Innovation Center development and that development we'll move forward with your VM as the primary partner. Can you give us further context on why Ross has pulled out at the last minute from the community. Also, second part of it also the European Board of Regents still has hasn't voted to approve the U of M Innovation Center. Do you know of the timeline regarding their approval? U of M has not engaged with either the Brownfield board meetings or the NEC meetings. Can you tell us why they haven't been involved within this process as of now, and I'm the right person to answer this. I'm a I'm a UVM grad. And so So I I really want to know because that was the part that I was pretty excited about in the first place. And I want to know and understand University of Michigan's role in all of this. So my first few questions, thank you
Speaker 11
through the chair to member waters and very happy to answer these. The news I think you're referring to his written announcement last week by the University of Michigan that they would lead construction of the academic building. That's been a request really in a hope of ours that they would do that. That's a sign of leadership from President Ono that they are kind of stepping up versus stepping back so the University of Michigan's commitment is solid. The commitment from Steven Ross to donate $100 million is firm. The deadline for that development is this year. They are statutorily required to break ground by the fourth quarter of this year in order to receive the matching benefit from the state of Michigan for $100 million. So it's on track. It's actually what we hoped would happen. It's how the Ross School of Business was built at the University of Michigan in the same manner so it's it's it's great and I'd be happy to talk more offline about that. So my colleagues have anything to add. I'm happy to handle them. But we're very happy with those announcements, those developments and have no no concerns at all. It's what we were hoping we would they would do frankly.
Speaker 10
All right. Okay, let me move to a couple of others. I certainly want to discuss that further. We have to take into account the impact of the proposed district project on the entire city. Please discuss the growing body of evidence that innovation districts lead to displacement of residents surrounding the innovation district How will you mitigate in it editable displacement in and around the district?
Speaker 11
Through the Chair, I would add briefly that the member waters the developments we're looking at have either a parking lots or out of service buildings have zero displacement and we've tried to build build in through councils recommendations, community recommendations, deep affordability to help keep them affordable and mitigate displacement across the board but happy to hand other colleagues for comments.
Speaker 10
I you have completed an economic analysis. Why have you not completed a racial equity analysis? While social impact analysis is only appropriate for majority black city?
Speaker 11
Through the Chair, I can again take a stab at that member waters I think we've tried for 250 community meetings we've had from the beginning to have racial justice as kind of a core component in the equity framework we've been developing. We're working with Detroit equity report and other stakeholders to kind of have a monitoring system going forward to track all of the priorities we have around racial justice as well as that the NAC members raised that we talked this morning about reporting and tracking. So I think on those fronts, they're incredibly important to us and ones that we are trying to be leaders on and break new ground on. I think the 100 million commitment that council raised this morning has not been done before. So we're trying to be leaders to be bold in those areas and and hope Council can can see that.
Speaker 10
All right, moving right along what efforts have been made to shield economically fragile households in nearby neighborhoods, from the consequences of out of control property market escalation, as a consequence of this project. You know, there's urban inequalities centered around innovation districts.
Speaker 11
What member waters through the chair but I would say to that and again happy to hadn't 100 colleagues is our hope was that by having $0 come from the general fund, but $750 million, go into the general fund that would help mitigate, you know, services to neighborhoods and be a massive benefit to neighborhoods that could be city service programs that support neighborhoods as well as protect residents. So that was at least one of our our hopes as we look at what this can mean for neighborhoods, vulnerable neighborhoods, city programs job for us workforce training. It's part of our community benefits focus and part of our our fiscal intent and protecting the city by not having $1 come from the general fund. So hopefully that answers some of your question.
Speaker 5
So just a couple other hands one dancer, okay, Mr. Kent, but now Ryan has raised their hands.
Unknown Speaker
Okay, thank you. Right
Speaker 7
through the Chair. Thank you, member waters. Thank you for the question. As far as equity is concerned, I would like to say our work has been rooted in community engagement and that led us to our five year framework where we firmly believe we can effectuate change for Detroiters. And so that is through our lens of education, employment, economic inclusion, that real intentional spending and support of black owned businesses in the city, environmental justice and engagement and just a little bit about the other third parties that we've consulted with, from the very beginning. We've been sitting down with organizations to really have equity at the center of this. And that's the Detroit branch NAACP, the phenomenal leadership over there. Metro Detroit Black Business Alliance, we've consulted with them frequently throughout this process. And so equity is at the center and we are leveraging people who do this work on a day in and day out basis to make sure that their fingerprints are on these plants. Alright, so
Speaker 10
um, 
I certainly want to see want to discuss a little bit later the Housing Trust Fund and how we can we can add to that. My office is also reviewing community benefits agreements that are currently on the use and other cities with university based innovation projects similar to those in Nashville, Somerville, Southern Cal and Los Angeles. The University of Michigan officials can can work jointly with us to help with the housing trust funds, preserve publicly owned land for projects targeted and low income tenants and homeowners discourage speculative investing such as a greed driven bundling by the land bank favoring Specht, speculators over citizen housing knees and provide deep support to mission driven organizations such as Neighborhood Development cooperatives and community land trust. So I wanted to say that because there's so so very, very important that we look at those kinds of things. I don't want us to, to think that this is just in a certain part of the city this this is the entire city. This is this is this is a huge, huge issue for everybody across this city. I don't take that lightly. It's not enough on the table for Detroiters, and I'm gonna say that now and hopefully we can have some some additional discussions. I don't want to take up all the time. But I do want to ask you though, have you yet hired a construction manager and if so, tell us about that.
+1
I certainly want to see want to discuss a little bit later the Housing Trust Fund and how we can we can add to that. My office is also reviewing community benefits agreements that are currently on the use and other cities with university based innovation projects similar to those in Nashville, Somerville, Southern Cal and Los Angeles. The University of Michigan officials can can work jointly with us to help with the housing trust funds, preserve publicly owned land for projects targeted and low income tenants and homeowners discourage speculative investing such as a greed driven bundling by the land bank favoring Specht, speculators over citizen housing knees and provide deep support to mission driven organizations such as Neighborhood Development cooperatives and community land trust. So I wanted to say that because there's so so very, very important that we look at those kinds of things. I don't want us to, to think that this is just in a certain part of the city this this is the entire city. This is this is this is a huge, huge issue for everybody across this city. I don't take that lightly. It's not enough on the table for Detroiters, and I'm gonna say that now and hopefully we can have some some additional discussions. I don't want to take up all the time. But I do want to ask you though, have you yet hired a construction manager and if so, tell us about that. Speaker 6
Council member through the chair. We have not yet hired a construction manager. We've been working with several construction managers on a pre construction basis and are in the process of selecting one for the first the first buildings that we will be building under the plan.
Unknown Speaker
Okay, thank you,
Unknown Speaker
Mr. Chair. I'll leave it right there. Thank you.
Speaker 5
Thank you. And I just wanted to before we possibly are working with the council president's office to see if we can move it sounds like we might be able to do so. The route to reschedule the 11 o'clock budget hearing to allow for this body to continue again. Again, we've had zero discussion on any of these items thus far. And today is the opportunity to do so. So sounds like that will be we're in the process of working that out. Just wanted to let you know that and also want to talk about another member message coming to you after this question. Want to talk about timing as well in terms of this particular project and I want to go to group exec ash wireframing. I know that there are some concerns about timelines on getting this project before the full body to approve or not approve the items that are before us. Will you please talk about the timelines because there's been questions from folks, you know, why are you guys doing this during budget? You know, I've got to put it out there. What Why, why are we rushing this? Why is the rush What's the rush and I know that the net conversations began back in November. But the question today is why the rush so if you can talk a group execs Robert Friedman on time, timing aspects or deadlines involving this particular project.
Speaker 12
Yes, Mr. Chair, thank you so much for the question. There are two dynamics in play. The first is, as many know this project has to go to the Michigan Strategic Fund for consideration. That's the state of Michigan State of Michigan board that will make decisions on state incentives. And as folks at this table and residents in the audience know a huge component of this is State of Michigan tax revenue to help offset costs. So that process has a deadline like every board like every committee deadlines, just like the NAC had timeframes just like the NEC had. We are already past our deadline for making the April meeting. And when I say past the deadline, I mean past the point of when we needed to submit materials to the state of Michigan and we are now asking them as a favor quite frankly, a professional favor for Detroit to consider accepting this for the April meeting, so that it gets considered by the Michigan Strategic Fund at the end of April. If the MSF Michigan Strategic Fund approves it. There is a period of time that has to expire before the developer is able to close on their financing. The developer has to close on their financing in order to began construction. So for construction on the first building to begin and July specifically with the especially rather with the underground parking and for them to be able to take full advantage of this construction season. Those things start to back up and when you miss one deadline, you've then missed another and when you miss that second that deadline by definition, you've missed the third and now you've missed taking advantage full advantage of a construction season and your costs are gonna go up. So that's one set of dynamics, Mr. Chair and the second is the transformational brownfield plan has a cap on it. There's a there's a certain amount of money that the state has dedicated to this and there's a cap on it that if you if if projects across the state of Michigan were to apply for this TBP and they were to be in excess of that funding. It would take the legislature to approve changing the caps. So there are other cities in the state of Michigan who are eager to to apply for TBP funding. We don't want other cities to get ahead of Detroit in this opportunity to use state funding to support the significant development project that will ultimately add so much to the general fund. So thank you for the opportunity to answer that question. Mr. Chair.
Speaker 5
Thank you for your response. Now, if it's taken us no this time, and I know we had to go through the community benefits agreement and other municipalities within this state of Michigan doesn't necessarily have that same process. How would they be able to gin up a project within a short period of time and crossed the threshold before us?
Speaker 12
Mr. Sherr? That's a great question. Their projects are ready and waiting so that they don't they wouldn't have to. As you said the process is very different. And they don't have to gin up the projects. They've been they've been waiting. So they are they are ready to roll.
Unknown Speaker
Thank you.
Speaker 5
And before we go forward, madam president has been able to work her magic again and we thank her for assisting us in this committee in allowing us yet another opportunity to continue to discuss this very important item. So with that being said, I'd like to recess Planning and Economic Development to the call of the chair. All right,
President Sheffield
we will call to order the expanded budget Finance and Audit standing committee if the clerk will call the roll.
Unknown Speaker
Councilmember Scott Benson.
Unknown Speaker
Benson I
Speaker 13
have some member Freya Doha the third president, Council Member Leticia Johnson, President, Council Member Gabriela Santiago Romero. Customer member Mary waters, President council member Angela Whitfield Callaway, Councilmember Coleman Ayyan and second. Council President Pro Tem James Tate, your council President Mary Sheffield. President. You have a quorum present Madam President.
President Sheffield
All right there being a quorum present. We are in session and we are going to reschedule the planning and development budget hearing. We're not going to move it into executive session. We will be scheduled to a later date our hearing for the planning and development department. And so we will recess to the call of the chair and we're working with LPD in the administration to reschedule that hearing. We will stand in recess to volunteer
Speaker 5
thank you so much, Madam President very much appreciate it. Now I'd like to call back to order the Planning and Economic Development standing committee Madam Clerk, would you please call the roll?
Speaker 13
Sure. Council President Pro Tem Shane state your awesome member Fred Tarhana. Third president, Council Member Leticia Johnson present. We have a quorum present president pro tem
Speaker 5
Thank you ma'am. We're in session. Now we have a quorum. I would like to also note that we have remained being joined by council president Sheffield member waters as well as member Benson and member Benson. The floor is now yours, sir.
Unknown Speaker
Thank you, Mr. Chair.
Speaker 14
Thank you all for being here today. Just want to acknowledge the time and thank you, Madam President, for making sure that we continue these conversations are very, very important. I just want to say also, I support the idea of a ticket surcharge is something that personally asked the mayor and Chris Ilitch during the LCA conversations and received a poopoo then I would love to see a ticket surcharge, go towards sustainability operations and funding that within the city of each one, there'll be a great way to ensure we move forward our sustainability in the city. Looking at the LPP report and 15 March LPD talks about the need for enforcement and the importance there. Can we talk about the import the enforcement with Creo and then how we ensure that the targets that are set will be achieved and others a third party agreement. I understand that part but how do we do that because enforcement is such a huge part of the CBA process
Unknown Speaker
where we're going to answer the question a response
Unknown Speaker
that I believe will be a credo responsibility.
Speaker 4
Through the Chair. This is Luke Paulson. I'll take the first pass at the response which I'm sure will involve input from the law department and planning department because to the chair to member Benson, I'd love to seize the opportunity raised by the question to call out the totality of the enforcement process and note that is more than just Krios monitoring responsibilities. So the Civil Rights inclusion office is the first line of monitoring compliance with the with the community benefits agreement. And there is it is through Korea in the planning departments partnership that continued engagement that neighborhood Advisory Council going forward meetings with the NAC and residents are organized and made transparent. The results of that are published on the project website. And and monitoring process is extremely systematic as to each and every commitment. That is, of course the level of information and transparency that's required to set up an enforcement process for success. From there any issues are elevated to an enforcement committee that that would convene and if make if so needed make a recommendation to city council for further action. And I'll be brief in this final point because this is out of my lane. But then the third and other key leg of the stool is of course, the city's ability to enforce the agreement through specific performance. And so although City Council does have its prerogative to recommend and take action, as needed to enforce the commitments by whatever means it sees fit. The community benefits agreement is an enforceable agreement, where the law department on behalf of the city does have the power to file litigation requiring specific performance of the of the obligation so so there is of course, a very important role to play by Creo member Benson, but I'd like to also call out all the other elements of the enforcement strategy that are of greater great importance as well. And with that, I'll hand it to miss king who I think had her hand up first.
Speaker 15
Okay, that was actually going to hand it to Mr. Call he did. Okay. But I will just add this. So thank you for that question. Member Benson. One of the ways similar to what Mr. Paulson stated about the enforcement component. There is an informal enforcement process however, there is a formal important forcement process. That process is spearheaded through Corporation Counsel, in this case is Mr. Mallet is also comprised the enforcement committee itself is comprised of representatives from the law department, human rights, or we commonly know that them as creo, a representative from the planning department LPD as well as a member of the NEC Additionally, the Enforcement Committee also allows the flexibility through the ordinance to add other departments as necessary. There is a website or link rather on creels website to address concerns related to complaints related to not only this CBO but any future or past CBO. We do meet once. A complaint is declared officially filed. We will I think we have 21 days part of the ordinance to come up with a finding and to come up with a finding. Once that is done we will share our findings with council and then if escalation is needed that occurs. Additionally, I would like to add that and this agreement typically up excuse me, so there is a requirement to that. Annual Meetings are held typically for CDLs. They have been roughly two meetings after the completion of the CBL process. The NEC strongly recommended and the development team agreed to a minimum of or excuse me at least five years as far as meeting with the NEC and having a commitment to address any concerns on the front end before it hits enforcement level. And with that being said, I'd also like to pass it to Mr. Cole, who catch you before it
Speaker 14
happens. Miss king I like to just go back to one of your statements I believe is really really important here. You said if a if a complaint is filed, who has standing who can file a complaint if they believe that the Mac is not being compliant with
Speaker 15
that thank you Mr. Chair. Excuse me, Mr. Benson through the chair. So on that point, typically, those who have standing members of the NEC are the ones who typically file complaints. We do ask that if someone is filing a complaint that they're filing it on behalf of the NEC and not necessarily in their individual capacity. However, that does not necessarily limit those who are not members of the NEC or you know, maybe you're a concerned citizen and you just have a concern about something. We do receive those complaints. We do our due diligence as far as investigation. And we do encourage those. You know, we've received complaints from members of council, we've received complaints from concerned citizens and we've received complaints from individuals on the neck as well. So
Unknown Speaker
what have we received complaints on any of the other CPAs in the past?
Unknown Speaker
Yes, we have received complaints on
Speaker 14
past my ask the question is, have we so we have flex this muscle when it comes to enforcement, another CBA? So that's correct. And he's kind of describe what the results were of those complaints investigation.
Speaker 15
Absolutely. I will defer to so we I will say that especially under the new ordinance. We have received complaints related to enforcement and concerns related to past SeaBIOS. I will defer to Mr. Koh because that process is spearheaded by a lot department or Mr. mallet to talk about what that process looks like.
Speaker 3
Thank you and through the chair, to respond to the most recent question from member Benson. There. There are routinely complaints or requests for information that the city receives, either through Korea or the planning department that are are handled administratively by those departments. And often those are things about, you know, construction, parking, or access to the site or blocking streets or noise those sorts of things in the city through the credo in the planning and development department often holds meetings between the community members and the developer or otherwise reaches out to the developer to make sure that the obligations of the community benefits agreements are being followed. That is there's the more informal of the enforcement processes that the city engages in. There's also a much more formal elevated enforcement process that's enshrined in the community benefits ordinance and that has been used to my knowledge twice, most recently by members of the State Lantus snack. Were regarding air quality complaints. When that complaint was received, it was investigated by the city. There were multiple meetings held. And, you know, as I believe many members of the council know the city itself had had little it could do to enforce air quality but put a lot of pressure on Eagle to take action against still Lantis and essentially to enforce air quality standards that exist at a state and the federal level, which Eagle did and recently wrapped up. Pretty significant enforcement process and they continue to monitor the site as well. And I won't rehash the way the ordinance works for enforcement, which I think was very covered by covered very well by Mr. Paulson and Miss king. But I would just highlight that this agreement specifically has a very robust series of reporting requirements on behalf of the developer to make sure that these commitments are being followed and that the city has the information it needs to enforce these commitments and also as a number of commitments that require continued involvement of a neck liaison to ensure that the not just the word but the spirit of the commitments are also followed.
Speaker 14
Thank you yourself, Mr. Chair to the members of the NEC Are you are prepared to take on this responsibility and a long term commitment to this project.
Speaker 1
Yes, through the chair. And you know, I speak on behalf of the NEC but also individuals are here to speak into for themselves. We understood going into this process, that there was a front end which was the negotiation of this agreement. But then there was also the ongoing component as relates to and that was always a very big concern for us, the enforcement and making sure that all of this does happen. And so we were as it was mentioned, we stressed that we wanted to go over and over again over and beyond the allotted amount of time that the neck stayed in place and so that that five year window, we wanted to keep the neck on going as as relates to working with the developer because there's 10 different projects is not one project getting done and there'll be over. And so as these projects are ongoing, we have components within this agreement that ask for allows for or requires NEC members to be involved in either the selection of these third party entities, ongoing monitoring and enforcement. So it I think is understood by everyone that we will still be involved and we are willing to take on that task.
Speaker 14
So I am seeing nods and I'm seeing a shaking. So are all five members who are here at the NEC prepared for that responsibility.
Speaker 16
I absolutely. And I just want to say one thing. You know, last meeting I just want to amend my comment during public comment was at a line about council members voting now I mean the questions I've heard were just perfect today and they were concerns I had because I admit the business part was not strong enough. I really wish we could have got guarantee that black owned Detroit businesses got the opportunity and I really praise Leticia Johnson for asking that question because that was a concern of mine. Because you know, I run a small business in the city and I see that companies in Troy Bloomfield, even out of state are getting contracts with Detroit based organizations and I just strongly support the Troy minority on businesses, which I'm not but I have clients who are and I just really hope we can get that stronger in the next upcoming weeks.
Unknown Speaker
Any other comments to member Benson's question?
Unknown Speaker
I would just Chairman Conrad mallet if I might.
Speaker 5
Mr. Mr. Corporation Counsel. I think the question was directed towards the neck first and then we'll come to you after I'm sorry. Thank you.
Speaker 17
I just want to add my voice to the rest of the members who are committed as a member of the NEC who has served on three necks prior for a total of four. Each one I made a five year commitment, and I'm proud to see the book tower coming to completion now, in terms of that, and we we have each when we sat down we made an agreement to see this through to the end. And I believe everyone here is good to their word. And we are there
Speaker 18
I would also like to add my voice as well as being committed to see this project through. Of course, also understand that you know, everything won't be addressed in. In one project. However, I am optimistic that we can hold these developers to a standard that we set when we wrote this agreement in broker disagreement. And that's why I voted in support of this development. I mean, I'm new to this. So I'm learning as I go. However, I believe that understanding what is required, and I think that I can hold there, hold them accountable.
Speaker 19
Councilman Benson I was not aware that that this was a five year commitment. But I am eager to contribute. If I'm asked. I really thought that after I voted no, that I was out of the game.
Speaker 14
So I would say you you are willing to commit two to five years. Yes, absolutely. I just want to respond to your saying your no vote meant that you were out of the game and so dissenting voices are needed. This is a democracy. And if we knew we're going to get all yeses, there wouldn't be a need for to have us as the oversight body. So dissenting voices are needed and can hold people accountable and hold their feet to the fire. So I would believe an eight to one vote with one dissent, that your voice would be necessary. And so I would hope that you would commit to the long haul on something like this to make sure that we're used awesome discrepancy that you could lift your voice and elevate that, and it just helps the process and it helps strengthen a democracy and it helps strengthen the CBA and the CBO process. I'm just glad to see that you're here as well and haven't given up. And just because you dissent and stand alone doesn't mean that your voice is any less powerful. So Ben thank you for being here. And thank you for that commitment. Mr. Chair, if we go back to the report number question number two is regarding the spend. And then we have the commitment from the developers. Well 100 million dollar target spin point 5 million target spin $1.25 million dollar for Detroit, co developer program and 2.5 culturally relevant programming, reporting the case that line items A, B and C. The expectation is that it would be spent during the first five years of the construction period is that accurate? Which would mean the 100 million dollar goal target for minority disadvantaged businesses would be during the first five years $20 million a year. Is that an accurate is that a good forecast for the spin there?
Speaker 5
Where we're going can answer the question may respond, sir the chair. I think I was gonna say I want to go to a Corporation Counsel. My apologies. Before we go to that response, Corporation Counsel, whatever company we're going to add the floor shores.
Speaker 20
I'm sorry, Mr. Mr. Chairman, thank you. I don't have an answer to the question that was just asked out to the first to the development team. But I did want to point out very briefly, that the public nature of the reports that we will be that will be delivered to the Enforcement Committee will be matters of public record. Which will be shared with the Detroit City Council. When we use the word target, there will be regular reporting to the Detroit City Council how how far the developers have come. And so the awareness of the progress, call it a target call. It a goal. Please don't call it a quota. But what however we defined it, it is going to be a matter of public record which the city council then will be able to comment on be aware of and we believe within the context that the community benefit agreement. These developers will be well aware of the overall nature of the public nature of the of the of the commitment that the CBO to the CBA contains, and so that was the only point I wanted to make the regular nature of the reporting will result in we believe, significant achievement of the goals set by the NAC.
Speaker 14
Mr. Chair through yourself to Corp counsel, thank you for that response. And so here's gonna be a question. The agreement the draft agreement identifies shall set a target of $100 million for the spin. So can a member of the neck if at year three. The developers are only have only spent $10 million or $200 million target goal, not a quota. Can someone file a complaint and crack open this within enforcement process and bring this back to city council who at that point can work to legislatively and legally hold the developers feet to the fire and then extract or retract any incentives at that point that are legally able by the city of Detroit that sort of apply some of these incentives are beyond us at the state level.
Speaker 20
So Councilperson Benson my office has often said that we we reluctantly do not respond to hypotheticals. In this particular case. Let me say this, that where we add three years and only a $10 million spend. The members of this particular neck I think would have weighed in long before but if it's at the three year period, something significant must have gone sideways. I am sure that after the investigation that the ordinance requires, if there are not immediate solutions possible, then the ordinance itself I think will be will provide all the guidance that we need
Speaker 14
here so you think we could crack this open? If we had that was an issue at the time.
Speaker 20
I'm saying that the ordinance is going to provide us all the guidance that we
Unknown Speaker
need. I'm not sure what that means, Mr. Corp counsel.
Speaker 20
It is. The law dictates a certain set of responses and I am positive that the partnership between the corporation Counsel's Office and city council will result in an appropriate response.
Speaker 14
Okay, thank you. So to the development team, the five is inaccurate. Are we looking to spend $100 million the target goal within the five years sort of about a $20 million a year?
Speaker 6
We're looking to spend it over the course of the of the development. So yes, okay, just
Speaker 14
looking at the report that comes from the third party if I believe not the third party but from the consultant it will be acquired for the $100,000 to track and report. It comes an annual basis is there a possibility to bring that on in a bi annual basis? And so for me if we only have five opportunities to review the progress it's it's not enough. I think we need to do that at least every six months, so we can get a better gauge. I just think that a data data set of five, it's just not enough. I'd much rather have a data set of 10 to make sure that we're really tracking the progress and so after six months, we know a year 1.5 years is the better way to track for city council and keeps it front of mind versus year to let the previous report get dusty.
Speaker 6
Or the chair we're happy to consider that I think we are mindful of not adding undue reporting requirements that call add cost burden and take away from our ability to focus on completing the projects and making sure that we are delivering on the commitments that we've made and so that you know these were carefully crafted to try to match the expectations the requirements and and what we can deliver in the context of moving a bold vision forward for a significant number of projects in a short amount of time. And so we can give that thought I am hesitant though to commit to that at this point because of the you know the significant work that's required just to provide the reporting for this.
Speaker 14
So I'll just look at the the draft agreement, and in any case, that's going to be done by consultants. So that wouldn't be something from the development team that would be a consultant doing that work, which makes sense to me. But are you indicating you think the consultant would just be too much for them to add five additional reports to their contract?
Speaker 6
I'm indicating that the in order to be able to track the spending information that's going to require significant coordination with our contracts team with our procurement team. And so we're, as I said, we're happy to take a look at that and revisit that as part of the conversation in the next week if that or the next few days if that is helpful, but I think we would, it is not a consultant on their own who would be able to do this work they will require access to and reporting from our team as well. Okay, then just
Speaker 14
finally, Mr. Chair looking at the line item for events at Columbia Street Plaza in the case so a 10 year commitment as per the CBA at a quarter of a million dollars per year. Do you plan to do that organizing those events, managing those events in house, would you hire somebody to do that? I mean, if if you plan to hire who
Speaker 6
I think the strategy for that, which we're talking about, at least four years from now, is to be determined.
Speaker 14
Okay, so when can we get some type of guy I would like to see I mean, we're just going to be DDP if somebody else if you're saying you want to do some culturally significant events, I want to make sure that the person who was going to be managing that process has the history and the sensitivity to the culture within the city of Detroit, ie making sure that black people are participating in that round. people participating in that and that we most likely hopefully would have a person of color leading those cultural events the way they do with DDP.
Speaker 6
chair that's understood, I don't think that we are ready to select that person we do understand and that was the intent of the of this from the start in terms of including this, and there is a there is an element of Knack coordination and liaison on this as well. It's my understanding that
Unknown Speaker
there's a cheer I believe I see Miss.
Speaker 7
Yes, thank you through the Chair, just to add to what my colleague was saying. That is the attention, intention there. So you look at the wording it says culturally relevant placemaking and that is solely about retaining a city that is 85% Black, the traditions, music, art culture, that all of that is being thought of in this programming. Additionally, the income of Detroiters so making sure that the price point is sensitive as well, so low and no cost programming throughout the year. So that sensitivity of celebrations that underscore the rich culture in the city is being thought of and considered. And we would definitely be poised to select someone who does this type of work best in
Unknown Speaker
class. Thank you,
Speaker 14
Mr. Chair. Thank you for the opportunity that was taken some time this is a significant project. I also want to just say to the NAC you will have brought forth the largest commitment of any the next that we've seen in setting a target goal of 10% is something that we did at least I did personally when we had the four candidates come through. We didn't hit that target. But we were very, very close. And so having a targets of that level, I believe are huge and then being realistic as well about the type of spin and so we're looking at $1.5 billion, that $1.5 billion development is done over a three year period. So it was a time value of money here as well and your ability to front load that should also be commended. And so the time value of money works better to the sides of the public in this deal. So number one, thank you very much for being doing that. And I just want to say there are many things that can kill a deal. And I know that Mr. Jackson, you know this, I mean, bad management can kill a deal. Lack of financing can kill a deal, but time kills all deals. Time can kill all deals. And we have the ability to see closer to $25 million a year coming into our general fund. I'm hoping that we're looking at the upside to our general fund and our ability to pay for the great programs that we have as a city of Detroit. And so if you like programs that support low income families, homeless families, the disabled, these are the type of deals that help us pay for that. So then remember, time kills all deals. Thank you.
Unknown Speaker
Thank you remember Vice Chair.
Speaker 21
Thank you, Mr. Chair, and was it afternoon almost afternoon now to you all. So just a couple of questions diving deeper into employment. I know and again, I share some of the same concerns that my colleagues have relative to jobs and ensuring that folks have access particularly Detroiters, minorities, but also talking about our unions. What what do some of these jobs look like relative? You know, for for our unions, what are those conversations with Union groups that exist right now? I know we talked about 6000 jobs already. How many of those jobs are going to be union jobs? We have an answer to that.
Unknown Speaker
response can answer.
Speaker 6
I mean, sure. Thank you for the question. Councilmember. are all like, I'd say, I just want to highlight that the construction jobs that we're talking about are 12,000 projection. And the conversations that we've had to date with with labor have been very productive, very positive and constructive and have centered around you know, the the opportunity that that 10 Project Portfolio allows for them to invest in and bring more Detroiters into the, into the workforce, the union workforce, which is of critical importance, I think too clearly to the council and to us as investing in Detroit as well. And so we are we've had a number of good conversations. We've had a chance to visit and learn more about the carpenters and millwrights Training Center, which has great promise for the ability to to grow participation and training and as well as a number of very good conversations. With leadership across all the trades.
Speaker 21
So let me I'm sorry, let me let me clarify you talk 18 In total, so let me be more specific. I know about the 12,000 construction jobs I'm talking about when this project is done, because permanent jobs to me are more important. Well, I can't say more importantly, be careful what I say. But permanent jobs are just as important as those construction jobs because that is what we talk about helping folks with their quality of life, ensuring folks can go home and pay their rent and pay their lights. Have there been discussions with unions relative to that there are service unions. I know sometimes when we think unions, we don't only think construction, but there are service unions as well that exists throughout the state of Michigan. How are those conversations been going as well?
Speaker 6
To my knowledge through chair, we've not had those conversations we've been for two reasons. One we've been extremely focused on the construction and bringing these projects to life there's been this process has been a as you can imagine a an all consuming process and an important one to make sure we lay the groundwork to be able to build these projects. And and second, because the number of jobs that as was noted earlier in this that we are responsible for is actually relatively small within the context of the 6000 jobs that we directly would hold them. So those I think the number that I cited earlier was 63 jobs. And so that's been a limited focus relative to the importance of everything else that we're working. So hard to try to bring forward.
Unknown Speaker
So total number of jobs post construction and how many
Unknown Speaker
for all projects,
Speaker 6
directly held by the developer on site 63 is the projection. Okay,
Speaker 21
and as ODM as well. That is correct. Okay. All right. So
Unknown Speaker
so,
Speaker 21
again, just help me wrap my maybe I'm confused right now. So we say 18,000 jobs total. That's what we were talking about. Correct?
Unknown Speaker
Correct. And if
Speaker 21
12,000 I mean, I'm a mathematician, but at 12,000 our construction, where are the other 6000
Speaker 6
their permanent jobs held by tenants and operators who are would not be related nor ODM. So we were building buildings to create opportunities for businesses to continue to grow in the city of Detroit.
Speaker 21
Right. And I understand that you're saying that when tenants move in, I mean, I understand how developments work. I guess what I'm really pushing to ask you to do is is that find a way to work? I mean, that's not in this agreement. It's kind of stated in this agreement. First of all talking about Detroit at work in Detroit, our work is going to connect folks to those permitted jobs. I can read the agreement pretty well. But what I'm asking for is also just that commitment and have those discussions. I know tenants may want to move in these new developments, but you can't control necessarily what the tenant does, but I do think that you can have the opportunity to drive that discussion for those tenants that come into your development and say, Hey, listen, you know, we've had a very good conversation we'll work on something with the some of these local unions got to obviously a conversation which is in this CBA with Detroit at work and and all of that, but I don't think again, I will I do think that those conversations should be had even with your tenants or prospective tenants before they come in there. So you miss Mara Hill has English bar who has her hand race
Speaker 7
Thank you through the chair, Councilman dr. Hall. I'm in complete alignment with what you're saying. Thank you for breaking it down breaking the question down a little bit further for us. We are looking at a comprehensive workforce plan working in tandem with Detroit at work, which as you know, is a robust agency throughout the city with nine locations. And so we do want to serve as a facilitator or a matchmaker, if you will, between the tenants that we are attracting and Detroit at work but also a talent of pipeline with dpscd as well. We have these long standing relationships with Wayne State Wayne County Community College, and we really see that opportunity connector being a space to serve in that in between of what you're saying. I think council president addressed it at the top of this call that we are not the end user of these tenant spaces. And so we cannot mandate it. But we do want to see Detroiters in these places of work. And we believe a good way to do that is to have these conversations on the front end with our tenants and we're already seeing that there's a tremendous amount of core value alignment with our organization and tenants that are seeking to locate in Detroit. They understand that all Detroiters win when they are economically empowered. And so we do want to serve as that middle space to facilitate those conversations.
Speaker 21
Well, thank you and again, we you know, we will be monitoring if this is the move through monitoring that kind of participation because it is important you know, I often say we've had these discussions and I'm very transparent about it. Sometimes folks have an issue with this particular development coming through based off of things and trust that has been done or things that may or may not have been done in the past and I do believe the best apology has changed behavior. But that also comes with developing a plan to get to that change, right? And so that's what I'm focused on. Those are some of the things that I want to see out of this development. And those conversations again can happen now. Because this is an environment is important to understand when we're talking development. We're talking about an entire environment that involves different aspects, different different organizations, different entities, and some folks may need to be engaged, if they have not been engaged in and that would just be my recommendation. My second thing, advice here we had a hand Oh, I'm sorry. Group execs, referee.
Speaker 12
Oh, thank you, Mr. Chair, through you chair to member Dr. Hall. Just one other point to try to work as you know is also made up of nine other community based organizations. So it's not just the administration that will be very aggressively seeking to engage any employers in the area in Priority hiring agreements for Detroiters. So I just want to be clear with everyone that it is not just at the feet of the developer is not just at the feet of the city. We are in partnership with community based organizations across the city in every single district and looking for priority for Detroit owners in hiring processes will be our aim. Because we all know that mandating employment or guaranteeing employment. Never turns out well for anyone. Thank you, Mr. Chair.
Speaker 21
Thank you. And again, the call we've obviously I know Detroit at work, I know what they do. But again, that's why I'm pushing towards the developer as well because they have to be involved in those conversations as well. That kind of drives me to my second question going into the opportunity connector. You know, please explain what that looks like how that's going to be helpful. How is that going to drive folks to these jobs that we're talking about? How are going to how is this going to drive folks to some of these affordable housing units knowing that they're available? How informative is it going to be and where are they doing some of these, you know, type of things and other cities and municipalities around the country?
Speaker 7
Sure, I'll take you through the chair. So the opportunity connector I want to praise the neck first and foremost, this came up in our meetings and negotiations and they advocated for a space for people to come and not only get information, but as the name says, Get connected to opportunity. And at first that was strictly around employment. And then we grew the idea of this space to also include housing and so this will be a physical retail space where someone can walk right in and be connected to whether that's construction jobs during that phase, or be connected to information regarding our tenants that sign on and the permanent jobs. And so as noted there's two hotels in this plan, so hospitality, jobs and all things that are associated with those, the office jobs, all of these opportunities will be in that physical space. Additionally, the intention here is to reduce barriers in all ways, shapes and forms and so there will be a hotline for people to call and get this information. As well as a website that is consistently refreshed with these opportunities. And so we see this as a push and pull. You can come down into the district Detroit and get connected but also we will be taking these opportunities out into the city throughout all of the districts in these Detroit workspaces and this Four Point Plan. I believe you will see that coming forward in the in the date in the coming days, but it is comprehensive about getting that message out and leveraging people in the community who have these deep relationships with Detroiters so that we are utilizing them as amplifiers as well. Again, I
Speaker 21
guess my only I won't say My only concern but a concern that I had with the opportunity connector. I know a lot of that is going to be in the impact area right. But just you know, a recommendation obviously trying to find some way to connect even when other districts you know, we we talk about the district Detroit and where these jobs are gonna be there are a lot of folks that live down there. Yes. But are also a lot of folks that live in other districts across the city of Detroit that need to know about the opportunities that may be present at some of these developments that some of the housing that may be available as some of these developments. And so, I will just urge you know, thinking about marketing and wrapping your mind around it, if this were to pass, how do you reach those folks, as well? And again, you know, that's you know, we've had discussions and folks are asking well okay, this is down here in this area. Is it just for Wayne State College students shout out the winning states. WC three, but is it just for them or is it for all Detroiters? Right, these are the questions that we're getting to our office when folks are talking about this development project.
Speaker 7
I will briefly respond to that. And I forgive me for not being more clear. We will be leveraging Detroit at work. Bill nine hubs throughout the districts of the city so forgive me yes, we want to go into the neighborhoods with these housing opportunities and job opportunities. And just really quick to rattle down the list. We will also be working with Department of neighborhoods OCP neighborhood groups, block clubs like we have had such a tremendous outreach during this process into the neighborhoods block clubs. We want to continue those relationships and that is our intention.
Unknown Speaker
Investor I think some something from the neg one to speak.
Speaker 1
Yes, but due to chair, Councilman door. That was a very important issue for us as far as that accessibility and how being able to reach out so Yes, there'll be this physical space in District Detroit. And one thing that was not mentioned actually by Miss English, it was not only connecting on the job opportunities, not only connecting on the housing opportunities, but on the business opportunities. Because if you got this 100 million dollar span and you're looking for businesses to do business, we want them to be part of that's also a part of the connector. And so there was that discussion of how do we not only have this physical space, but it should be a virtual space that Detroiters from all over to Detroit could also access those opportunities.
Speaker 21
And kind of just touching a little bit deeper. What you're saying and talking about the businesses, you know, I think I'm missing this. This is seems like our fourth hearing on this now is has been coming back around. But I've talked about wanting to mirror some of the things that I'd have saw at LCA connected with minority businesses, you know, whether it was young villagers coming into LCA, doing a you know, having their space there for a certain amount of time or other black minority businesses coming in partner and and being able to get some of that commerce that exists. So when we're thinking about like some of these developments in our commercial space around there, I think including, you know, black or black businesses and that are minority and black businesses in that is very important. getting that word out, though to know that those operators opportunities are available. is critical. Because oftentimes, you know, folks will say, okay, there are, you know, folks who are connected in a minority business community, but it's a small percentage, and it's the same old faces and it's the same old folks, right? So expanding that reach is going to be important to you know, all minority businesses. So they can have equal opportunity to, you know, partner. And so looking forward to that connection, one of the last things, looking into there's something near and dear to my heart without and there's some things that I'm glad to see. When we talk about accessibility. You know, having quarterly meetings, and I think in here it says, you know, no less than one quarterly, one quarterly meeting. I really hope that we stick to this and when we say not, you know, no less like we have one quarterly meeting and then that's it. I hope that engagement continues and I know we have a member of the disabled community on the neck. And so I love that idea, that liaison to help see these projects through to fruition, if they are to happen to ensure that that accessibility is happening again, often. I believe in learning and just a lot about these developments. The bare minimum is done relative to the ADA, you know, having ADA being compliant, but compliance and accessibility is a totally different thing, which we're learning here and I've learned throughout these developments and having conversation with members of our disabled community. So I'm just looking forward to that dialogue continuing or I'm sorry, continuing throughout the entire construction process to ensure that these things are getting put in particularly in the residential areas. I remember from my community calls in I think she called in a public comment earlier Ms. Varner and she talks about tubs, you know, things that we take for granted like you know, tubs that are not accessible bathrooms that are too small to for a wheelchair or hallways that are too small for a wheelchair. You know, I'm glad to see that in there. And I'm assuming I don't want to assume but I assume you are going to be the liaison?
Speaker 18
Yes. Okay. And because I've been in my chair for over 42 years now. I'm injured. I'm an injured person. So a spinal injury left me in this situation. So yes, this was very important to me, this accessibility component in AI was the driving force beyond this, above and beyond ADA compliance, that was totally my language, and they really adapt it to that immediately. There was no real hesitation to do that. And yes, relative to housing, that's very important because there's not a one size fit all for all individuals with disabilities. There's some people that prefer rolling showers. There's some people that prefer bathtubs like myself, there's a lot of people that we just can't depend on a one size fits all concept, and they were very understanding in that particular area. Of this accessibility component. The universal accessibility design is also being considered by the developers which I thought was, you know, they were very open to the conversation. So in that particular area, I don't think that we will, of course will be monitoring their project progress, to hold them to their commitment to be accessible, but I think I'm pretty confident that this won't be an issue that we need to distress about. I think that we are definitely will hold them to the fire on this. No question. There's no way in Yes, they will be held accountable for what they don't do. wholeheartedly, I will be definitely tracking their their progress
Speaker 21
and I'm glad to hear that no other members of our disabled community in our task force have expressed concern about that. I know they're glad to hear that and that participant about that participation. My last question through you, Mr. Chair is just talking about affordability. Obviously, we talk about housing here in the city of Detroit. That's one of the biggest issues that folks talk about housing instability. And I notice even in this agreement, it talks about and specifically states, the acceptance of Section Eight vouchers. That being said, though, I do understand at times, getting those folks that Well, there's two issues that that happen. One of the first issues is that there may be a structure like that, but it's not marketed to folks who have section eight vouchers. And at times, yes, you will will accept those vouchers. But you may mean I have a huge influx of folks who who who get section eight vouchers coming to look at properties like that, because in their mind, they're saying okay, this is one of these high rises, and one of these apartment buildings I'm not going to be able to afford what is what is going to be done. And not just obviously working through the city of Detroit HR D, because I know that's gonna be coming. What is what is the relationship look like with other agencies, whether that's Mr. Whether that's other harbors, which are housing assistance. resource agencies, Wayne Metro, right. What What does those conversations look like to connect folks down there? I know and here we are, you know, I mean, and that's pretty standard. You can't discriminate and housing anyway based off of the law, however, and not to say that it happens but sometimes even unintentionally, that does happen based off of who it is marketed to, and who it is deemed to be assessable to what are what are you guys going to do to take that extra step to ensure that other folks in the community have access to to these developments
Speaker 1
through the Chair? I just want to call from indura Before the developer I think is more of a developer answer. But for the NEC, we did look at every research that one that a developer is not required to have to take section eight vouchers. And so one of the things that we wanted to do is make sure that that was included, that they had agreed to that they will that that was not a game time decision, but they have to accept those for those 50% Ami residents. And so that was sort of for us sort of the one thing going over and beyond what is required by law, having them commit to something beyond that. What is the strategy? Hopefully the opportunity connector is one strategy as relates to how their people are applying for tenancy in their buildings. But then, you know, I'll let the developer speak more to the other strategies attracting that section eight voucher tenant who I'm assuming also would be that 50% Ami tenant.
Speaker 21
And let me say real quick before the developer responds, I appreciate that. And that pushed to ensure that you know, get a commitment saying hey, listen, we don't have to do that. But we're going to do that. But again to the developer and my question is what are we going to ensure to make sure that we get folks down there and let them know that opportunity is available, not just the opportunity connector? But how are we going to partner with other agencies around our area to talk about you know, folks who are low income Hey, there's some you always want to live downtown. You got a section eight voucher, now you can do that. What are you guys going to do to connect to those folks in
Speaker 7
the chair out I'll take this question. And then I'll pass it off to my partner, Andrew cantor. I think you raise a really good point here about getting that message out to folks who need it most. And so we really do want to leverage every agency that you mentioned mentioned we currently have a great working relationship with UC hc over at our Henry Street project, but also thinking about the city and the faith based community and how we can take that message out as we know that faith based community are anchors in our communities in Detroit and so working with like a pastor mo or other pastors who have been supportive of this project, we want to meet with their congregation and really get that word out in every way possible. Additionally, looking at you know, marketing plans that are specifically targeted to this and I'm going to pass it to my partner, Andrew to talk about some of the best in class practices that they've done in other markets to make sure we get this word out.
Speaker 6
Thanks, Ryan and through the Chair and thank you for the question. Councilmember. Darrell, you we have a national portfolio of 8020 developments that includes 50% Ami, and so we have a track record of marketing plans, which obviously needs to be customized to every market and we're going to work closely with with everyone to do that, but includes media includes participant partnership with community development organizations, government agencies, community districts and and council members in each case, so we would also welcome you know, the opportunity as we get further along in the process to go through that with you and, and also to the extent that you have suggestions about best practices you've seen from other organizations, we're happy to take those on board as well. Because we share your your interest and are aware of the perception sometimes they can occur, that this may not be available and we've surpassing overcome that in in other markets across the country.
Unknown Speaker
And just a final thought before. Oh, I'm sorry,
Speaker 1
Mr. Maduro through the Chair. I just want to make sure I reiterate here. Counseling. The President mentioned how we wanted to make sure Miss Logan stayed engaged in this process and how even the one dissenter, how important they are. This was her initiative that she brought to the table and we asked all the NEC members bringing something to the table with is sort of a pet project or an idea. And so the NEC members. She was heard and her voice was important and it was in the room. So I'm in agreement with that. And we think that this was actually one of the very key initiatives that we were not compromising on at all as relates to the developers. I just wanted to this recognize that and that her contribution relative to this particular initiative,
Speaker 21
and 
thank you for that Miss Logan i This is a huge issue. And, you know, just final comment before I turn it back to you, Mr. Chair is even with that marketing, and we get folks down here to have section eight and Mr. chairman says this all the time or other developments that we see here come across this table. Just because folks have Section A two I want to ensure that if this project does go through, you know, we just don't have one floor full of Section Eight folks, right, then we're talking about a mixed community. And that's how you bridge that gap. Or one of the ways you bridge that gap and I hope that the developer and or a tenant, whoever comes in there is thinking in that mindset, that just because that person is on Section Eight doesn't mean that they are not as important as any other resident in that development. So kind of having that mixed use per se and kind of having you know, that diversity throughout all of those developments is going to be something that is very important. So just wanted to put that on your mind as well.
+1
thank you for that Miss Logan i This is a huge issue. And, you know, just final comment before I turn it back to you, Mr. Chair is even with that marketing, and we get folks down here to have section eight and Mr. chairman says this all the time or other developments that we see here come across this table. Just because folks have Section A two I want to ensure that if this project does go through, you know, we just don't have one floor full of Section Eight folks, right, then we're talking about a mixed community. And that's how you bridge that gap. Or one of the ways you bridge that gap and I hope that the developer and or a tenant, whoever comes in there is thinking in that mindset, that just because that person is on Section Eight doesn't mean that they are not as important as any other resident in that development. So kind of having that mixed use per se and kind of having you know, that diversity throughout all of those developments is going to be something that is very important. So just wanted to put that on your mind as well. Speaker 18
Through the Chair. May I speak. So Mr. Darko that was also very important. To us as well. And we did have a conversation with the developers and there won't be any designated space. That's just for Section eight residents. They will be mixed throughout the buildings.
Speaker 21
Thank you and also ADA just just saw the look on your face, evidently. So I appreciate that as well. And I appreciate some of your efforts. Thank you, Mr. Chair.
Speaker 5
Thank you, Mr. Vice Chair. And Scott, I want to say I know it's been mentioned that this is potentially the largest will would be if approved by this body, of course the largest community benefits agreement that the city is had thus far. But it's also we have to be transparent the largest incentive package as well that the city has had thus far as well. So again, we weigh the both it makes sense for this to be the largest package and again, thank you for meeting that moment. Certainly there's other issues and items that folks wanted to see. I wanted to on the record you know, thank all of the members of the NEC both here in person maybe at home, but also on Zoom. But, you know, in addition to everyone the Chair, Vice Chair, also the slogan it is it is quite difficult to stand out and not just go along with everybody, especially when the world is telling you you know you shall you should if you don't, something's wrong with you. And so I want to commend you on your courage and standing strong and encourage you to stay engaged in this process for as long as it's needed. That is very special. That's that that's something that I'm glad that we had members who were wise enough to get a cross section of folks from the community that wasn't just gonna go along just to get along. And I'm not saying that those who did a great did that. But it was clear that other voices around the community were also heard in that room. So again, just want to commend you on that and thank you for your work and thank all of you as well.
Unknown Speaker
Thank you so much. It's been a pleasure. Thank you. Absolutely.
Speaker 5
Want to talk a little bit about the 51% Detroiters right. In terms of hiring we've kind of talked about that as all that's on all of our minds, you know, how do we ensure that we have Detroiters that are hired because right now we're hearing employment jobs, jobs, jobs, jobs, jobs, jobs, shops, shops. We know that and if I'm incorrect, somebody please make sure you correct me that for these development projects that receive incentives that only 30% of them achieved that 51% that mark, and again, if I'm incorrect, somebody please correct me. Why do we believe that this project will do anything different than that? And I know where there's efforts and there's items that have been placed into the NEC agreement that are certainly more favorable than we've seen in just general agreements with developers. But, again, if we're looking some of our trade organizations don't even have more than 10% of their employees being Detroiters. So how do we believe that we're going to reach that 51%? Mark? It sounds great. It's all on paper. But in reality, how do we walk us through for the public who's watching? And it's not necessarily for the neck. I mean, it's more for the developers, the DGC and the administration and how do we believe that we're going to reach that 51% When thus far, only 30% or so of incentivize development have reached that mark?
Unknown Speaker
Through the Chair, may I respond?
Unknown Speaker
Oh, sure. You can go.
Speaker 18
Okay, so relative to an aggressive workforce development program that we are currently in conversation with with Wayne County Community College District. We are currently working out some sort of training programs that will filter the individuals directly into pre pre apprenticeships, that we've had conversations with union people, but I can't speak to it began. We were still in conversations. So it's not like we haven't been considered of this. This matter. We are and we're constantly trying to come up with solutions to resolve this matter. But right, but I will definitely be happy to keep you abreast of what those conversations are. As we continue to develop those plans. So we are working on that. And that is a concern that we all have.
Speaker 5
Yeah. And I thank you for that because it was clear that the next thought about it, you could see it in the document but pivoting towards the folks who actually will be able to pull some of those triggers need to hear from you all and whoever gonna answer Feel free.
Speaker 7
Through the chair out, I'll begin with this and then I will pass it off to my colleagues. I will start by saying this is a huge issue to tackle and this is something that will take a village this will need the work of developers, skilled trades unions, contractors and educators to really solve this pipeline shortage. The other thing I want to just open with on this subject is that we understand the intention of the executive order and truly believe that economic empowerment is the way to impact all Detroiters and we do want to reach that goal. So much so that on the arena, we hit the 38%. Mark, is that shorter? 51%. Absolutely. Yet on the Eddystone we'd hit 46% And so we are making strides to solve this problem. We are putting together and aggressive work plan but we need to work with all of these entities in order to solve it. Additionally, we don't want to continue to pay fines. We actually do want to solve the work shortage, and we're sharing our workforce right now with other Detroiters and so we know we need to get more people into the trades. In addition to that we need to keep folks in the trades. And so we're looking at a myriad of strategies. Again, this four point workplan here working with the city of Detroit, but it's the all hands on deck issue and we do want to hit that 51% And I'll pass it to my colleagues if they have anything that they want to add here. But it's a tangled problem, but we are committed to doing our part to solve it.
Speaker 5
I raised the issue. I mean, because it was clear again and the documentation that was provided to us that this plan was thought out all the way back in 2019. That's when the Detroit life building started to get the renovation that it needed. Why didn't we start working on this back then? Working and when I say this, I'm saying ensuring that Detroiters were a part of this. Let me back up. How has Olympia development and we'll say related as well, since it's a partnership How have the two developers worked in the past to ensure that Detroiters are a part of the skilled trades outside of finds of course. So receiving and receiving work because I I've gotten a number of calls from folks who are qualified who have worked on projects or major projects one being there. Reina and these are Detroiters, and they're currently out of work right now with all this development that's going on today, and they're currently out of work. So we're not talking about hiring or training new folks. I'm talking about folk right now who already have qualification certification and have worked on these projects and they're out of work today. So my question is, with the two developers understanding that you began this road least the thought process according to the documents we received back in 2019, anticipating we should that this would be a concern because it was concerned certainly in 2019, we made some strides. But what efforts were made by the developers dating back to that time when it was determined that this project would be one that will be put forth before our community
Speaker 8
to the chair, I would say, look, I appreciate the question. I think Ryan explained it quite well. And that this is a it's gonna take a village to solve this problem, right? As we look at the amount of development that we're proposing in the in the 10 projects you look at projects such as potentially, you know, Henry Ford Health System in the $2.5 billion development there. There's going to probably be more development than there are individuals within the city of Detroit that can can feel the amount of jobs there
Speaker 5
but Mr. Bradford, my question was more about the, again, the thought process was in the past, understand in 2019, getting ready for this moment, like what efforts were made in the past to build the workforce towards this moment. Right.
Speaker 8
And so I do think the contributions that we have made the $6 million with the LCA are to further the education and training of individuals to get ready for these types of jobs. And for
Speaker 5
clear projects. Hold on one sec. Hold on. I just want to make sure we're clear. And I don't mean to interrupt. I just want to make sure we're clear. That $6 million commitment, what was that $6 million as a result of so
Speaker 8
by not reaching the 51% at LCA, we contributed $6 million to help towards Creo towards the training of individuals to get ready for these jobs. We also have a project we've been using as part of the CBO as well as well as a project destin program. We're retraining students in the area of development and educating them on how to become developers and also understand what these jobs and affordability are. There are just some examples of where we've done that. In just in the recent years, Brian can talk to other programs.
Speaker 7
Thank you, Keith, and through the Chair. Just to add the significance of the arena work the arena added over 1000 apprenticeships which are now full time trades people. And so work or development, gives them the experience to then enter into the trades full time. Additionally, we're looking at bringing on a fast track program that we seem to be successful over at the Ford site where it gives people an on ramp to the trades and that was the best practice that was rolled out from the CDA from the central train station. And so we are looking at bringing forth a volume of work that will get more apprentices on job sites in order to meet their hours in order to be a full time tradesman.
Speaker 5
So it sounds like there were no efforts outside of the projects that were before us at that time. Me again we understand that the training for the the apprenticeships. of the individuals who worked on LCA, but LCA has been constructed now for a couple of years. What's I'm just again asking about the work in between there that time completion and today
Speaker 8
to the chair. I mean, I think and I think Ryan mentioned this but Eddie Sam was an example of improved efforts. Right. So where are we went to 46% at Eddystone. By more deliberate efforts and being intentional and and how we go about this. I think some of those learnings can be kind of applied to this as well as we go forward.
Speaker 5
Okay, so in terms of benchmarks, I mean, we know right now, we don't anticipate 51% Let's be real. I mean, that's why we're building all of this in and we have to be honest with each other. Are there any benchmarks, any milestones that we're looking at, potentially, right? If we don't hit 51% Right out the gate, which is probably going to be probably going to happen, you're not going to hit that 51% Because we've seen again 30% of the incentivize developments. Only meet that that mark? Are we looking at any milestones along the way just internally to determine if this is if the efforts are successful? Are we just waiting until everything is completed? And then saying it's a success or not? Where are mile markers to determine success for employment? Through
Speaker 6
the Chair, if I may, I think one of the real benefits of this of this structure that we're proposing is that it's 10 buildings happening over time. And so that actually allows for us to continue the two things one, it means yes, it's a billion and a half dollars of development, but it's not on a single project with a single electrical package, a single set of you know, a single brick lay or package are a single concrete job that's going right. Instead, it's a series of 10 different projects. And so that allows for more opportunities to continue to iterate, do better, and also to keep people employed over time. And so, you know, one of the things that we've heard from the trades is that for them to invest around one project by the time that they have created some of the training that they need to because this does need to be done in partnership, by the time they've done the training that let's say nine months or two years that it may take to get through it, that many of the projects are already done. And so for what this allows for is over the five year period for people not only to get into the training programs, but to move from apprenticeship to journeyman by the by the end of this right. So and that's where where we really we talked about careers earlier, I think you spoke about peers. That's where the big difference is. And so we do think that there is a better opportunity here because of the way that this project is set up, to be able to bring people along and really create those opportunities. And yes, like, will we continue to look to improve and iterate? Absolutely, because that that is what I think we do as a company and what what you're going to hear from us in our regular reporting, which is all mandated both by the law but also by by our commitments to the NEC.
Unknown Speaker
Thank you regroup. Exec
Speaker 12
Yes, thank you Mr. Chair. So I just want to double down on the last part of Andrews answer. So the reason we were successful with Ford Fast Track is because it happened on the heels of some other developments and it gave us an opportunity to learn quickly bring in through the the general contractor who's leading that work, some insights from other parts of the country, and to really put this on sort of like, like think of it is putting the whole process of getting Detroiters ready on a conveyor belt by having so many projects if approved, come online at once. It also allows us to learn what's really working and not working as we get Detroiters ready, do we need to spend more time on you know, the skills that are going to be necessary to manage I don't know a certain couple pieces of equipment? Is it soft skills related? Is it foundational skills related? The thing we can't do the thing we know doesn't work is to build some sort of static readiness process, launch it and then expect that it's going to work. So just as you're saying, by having so many projects follow each other in such close succession. It really gives us a chance to learn what's working for adult learner and fix what isn't in a way that is really going to produce the kind of workforce long term that we've been aiming for for decades.
Speaker 6
That mad one more thing through the Chair if I may, which is that we really and Ryan hit this the beginning about being taking a village we need your help as well because there are facilities like the carpenters facility that right now has capacity to train more people and the on and off people applying is our understanding so this is also about educational direction and pathways and making sure that your constituents are aware of the opportunities that are out there. And so we look forward to partnering with you to the extent that we can but but that's a that's a shame. Right and that that's where we're all suffering if there actually are these great training programs that are available and yet there aren't enough to try just taking advantage of it either because they're not aware of it or perhaps they're not interested. I hope it's they're just not aware and that we can help address that.
Unknown Speaker
Thank you for that. Mr. Chairman.
Speaker 12
I'm sorry, man. Mr. Chair. May I address one other point you raised? Sure. So you talked about Detroit errs who are union members who are currently out of work. We'd be very pleased as we approach this as a village to take information offline and try to reconcile where there might be opportunity now or in the future to fix that dynamic.
Speaker 5
Thank you. I know member Johnson you have to momentarily leave the committee but want to give you an opportunity to provide any remarks before you do. So.
Speaker 2
Thank you, Mr. Chair. So I just wanted to bring up a couple of things just based on the conversation that we've been having to member Benson's point around enforcement. I just want to say to the NEC that as the District Four council member working with the FCA NEC, in the NEC members, we had quite a challenge enforcing the agreement. So I think there is a tremendous amount of improvement and opportunity for enforcement. So Mr. Koh indicated that the law department did what they were to do was to apply some pressure to Eagle as it relates to the air quality concerns that residents had. What that turned out to be for the community was not necessarily a benefit for the community but still Lantis ended up paying a fine to the state of Michigan. They also signed a consent agreement to address the odors. We still have not yet seen that go into effect, but I just wanted to raise that because the last report that was issued by Creo Steel had FCA as off track. So I just want you all to be aware as you move forward and continually work with the developers hoping that they won't have this challenge and that you know, you all can move forward without having to really go through any enforcement issues with the actual agreement. And then the other thing I wanted to mention was we spoke about viewing things from an equity lens and council president did bring up the second chance for persons with prior convictions and as I view this, it says that developer will not inquire or consider the criminal conviction convictions of an applicant to be an employee of developer until developer interviews the applicant or determines that the applicant is qualified and from an equity lens. I would like to see that that sentence and after the second developer, not until developer interviews the applicant, I'm not sure if that is a legal statement that was added to that paragraph. But if we're talking about social equity, and making sure that we provide opportunities to Detroit residents, I would like to see that line actually adjusted just to make sure that people know that we're truly giving them a second chance at employment with this particular entity. Everything else Mr. Chair, I will leave for our discussion on tuesday if this should move out of committee today. So thank you so much.
Speaker 5
Thank you. And member Yeah, I'm gonna come to you. I wanted to make sure I give always deference to members of the committee, but I know she was leaving so I wanted to give her that opportunity. To say that before she did so but we're going to be coming together ask him just a few more questions. So I know that there is a reimbursement agreement that's attached to this proposal. Someone can walk through this reimbursement agreement what is it and how is it enforced?
Speaker 9
Mr. Chair, I can speak to that. So with all brownfield plans, there's a reimbursement agreement. So traditional brownfield plans have them as do transformational brownfield plans. And those layout the terms or as the name of it implies the terms when reimbursement will occur. So that lays out the financial terms and who gets paid when, as well as the requirements that have to be met by a developer in order to start receiving the reimbursement
Speaker 5
it when does that go into effect? When would that reimbursement essentially go into effect? Sure.
Speaker 9
So the reimbursement agreement could be entered into only after a transformational brownfield plan. Is it
Speaker 5
okay, so once we approve it, then you would be able to create those particular metrics. Is that correct?
Speaker 9
That's correct. Yes. So the document itself, could be discussed. Then after the transformational brownfield plan is approved, if that if that occurs. Okay.
Speaker 5
Thank you. And we'll go back to the developers and because I know I'm bouncing around here, not all my questions have been answered as colleagues, which is great, but I have quite a number of others. I know it was mentioned and we hear this all the time that you know, the the major developer cannot mandate any percentage of Detroiters with their particular vendors. And we're saying again, now this transformational we I'm running with that word transformation. This is why why would there not be I know this probably not desirable, but is there anything that legally prohibits the developer from? I don't know, just saying 10% I'm just getting a real low number, but just throwing something out there. Is there anything legally that prohibits the developer from wear crocs, excuse me requiring vendors who are inside of their facility, from requiring a certain percentage of Detroiters on their in their establishments, legally? And if so, can we cite that that law
Speaker 3
through the chair Brian Cohen at the law department I'm not aware of any restriction for a private party to agree or require the hiring of people from a certain location. That said, you know, it does create potential difficulties which the developer might be able to speak to about, you know, what sorts of tenants might be willing to locate in their buildings. You know, if it's a national corporation that hires people from from around the country,
Unknown Speaker
you ask them a question for him, I'm leaving it open for
Speaker 3
okay and then I will, I will just state that a private party may hire from wherever they desire.
Speaker 5
Thank you to the developers your turn. If you can answer their question, please.
Speaker 6
Think that we, in our experience with leasing millions of square feet of office space and work, I think that's what we're talking about here from if I'm correct through the chair, sorry. We we have found that two things, one, the tenants that we talked to want to be and want to be be part of the communities that they're moving into, they want to hire from the communities in which they are moving. That is part of the reason they're looking at the talent in the diverse talent of Detroit and and its surrounding areas as they look to consider moving to Detroit at the same time. They are extremely reluctant to have requirements placed on them that might limit their ability to access talent to carry out their primary business. And we're not I'm not aware of any such restrictions in any of the other markets against which we're competing for these jobs. And so I would, I might, in my experience, I think it would have a negative impact. On our ability to fill the jobs and create the jobs for Detroiters because it would limit the attractiveness of this development and of the city to outside employers.
Speaker 5
Thank you and for Olympia development, how many Detroit based businesses vendors are currently located on Columbia Street in that development. We have a percentage of the total number
Unknown Speaker
that are Detroit based
Speaker 8
currently on Columbia Street. At think we have four restaurants that are currently open right now and none of those are Detroit Detroit based at the moment
Speaker 5
last question I have is regarding the affordable housing and I've been very vocal about that with folks who are asking me who I'm willing to tell that I think that the three year three year mark to quote unquote qualify folks for that component is is too low. It doesn't really I think it opens the pool up to wider and it keeps it open to awhile. And we finally got an opportunity to put a a timeframe if you will of those who we gave us opportunity to target excuse me, Detroit errs, bonafide Detroiters and we got three years in there and I asked again, in terms of the documentation that we've been told that Detroit has typically cannot find beyond three years. Can we describe those documents, please? I want to make sure we're very transparent with what we believe in Detroit is cannot require recover of their own documentation after three years.
Speaker 4
Through the Chair, this is what pulls from the mayor's office. Unfortunately, a group executive negotiated Freeman was bumped off and she's trying to re enter so I could ask she may have moved over and help respond to the question but I'll I'll begin in the interest of time. You know, Mr. Chair, this has been an issue where you've shown I think, a really, really extreme level of focus and interest and we appreciate all the feedback that you've offered. This is of course, as you know, a first of its kind program from the DDA just to explain it a little bit more thoroughly for the public to track the conversation. This is a this is a an incentive component in a DDA loan for affordable housing, that would, that would trigger loan forgiveness, infractions on an annual basis. If units are leased to Detroit areas as defined by a Detroit resident of three years or more. The three year time horizon was was calculated and determined to be the best possible balance between between having a residency requirement that gave Detroiters the opportunity to access that housing that incentivize the developer to seek out Detroiters to live in that housing, while also not having a time horizon to prove residency with documentation that would be potentially that would be difficult to meet for people who are habitually housing insecure. And by that I mean people whose residency is unstable, who may be moving in and out of friends apartments or sleeping on someone's couches. You know, potentially even homeless for a period of time. And so if they have the kind of housing insecurity over a period of time, that could mean that they don't have the stability of residency that could be documented with a lease with a utility bill. That if the time horizon were longer, that it would be a way to exclude people who are housing insecure and who need their for that affordable housing as much as anyone so to answer the question more directly member take the documentation concerns would be documents that could prove residency and that is, I think, especially given given how, how few bills are available to renters, for instance, a water bill would be paid by the landlord. They would be I think, a third party utility bill like an electric utility bill. It would be a driver's license, if ideas maintained, it would be a lease agreement, if so signed, but the concern is that the longer time horizon you have to assemble those documents with continuity and by that I mean an unbroken period of time. The more difficult it is for housing insecure person to meet those documentation requirements.
Speaker 5
So we didn't say cumulative, I think it's how you pronounce that word is. It's consecutive years is what we're saying three consecutive years. That's right, Mr. Trump. So we, again I look again for creativity Why not five years and be creative with even a five year and if you have someone who is you know, sleeping on the couch, a friend's couch or if they're homeless, now that still opens again, an opportunity for or at least it potentially shortens the competition for those folks who I believe everybody here wants to see in those, those apartments, real bonafide Detroiters.
Speaker 4
So Mr. Chair, I again, this is a really useful feedback and Mr. Freeman's rejoined us I invite her to chime in but suffice to say, we've heard you on this. We've heard other members of council who are understandably very interested in making sure this program works. works best for Detroiters, and we are. We are very interested in in assembling a working group and go and continuing to pull together best practices and everyone's feedback on how to make this tool work as work as best as it possibly can.
Unknown Speaker
Thank you Mr. Chair. Yes, there
Speaker 12
you go. Yes. Yes. Apologies for my technology challenges. Mr. Chairman, I am I'm not sure I can improve upon Mr. Paulson's answer, but I will say that your concerns remember Johnson's concerns the concerns of others are So noted. And in trying to to define and design this first ever concept. We readily admit that it is not usually possible to get a thing like this out of the gate perfectly the first time. I think what you're asking of us and certainly what we are committing to is convening. the right set of experts at the table to get your input and the input of others to keep iterating on the product or the factors in the product that lead it to be forgivable so that it achieves what it is you and your colleagues and all of us really want to see for Detroit. Is there a technicalities behind that that, you know, housing is not not my lane and and so I you know, wouldn't wouldn't pretend to have the technical expertise on it. But I think what you're asking is that we keep at this to have it better reflect what you and and your colleagues really want to see happen or quite frankly, have a be sure we avoid with affordable housing solutions and their impact across the city.
Speaker 5
And is there any thoughts of priority prioritization, if you will? Because I'm sure you put it out. There. There's going to be far more folks who are seeking to live in the affordable housing units then we actually have housing affordable housing units available. Is there any prioritization on how you go about identifying and selecting those individuals that would qualify for those particular units?
Speaker 12
Mr. Chair, in the go forward design, your point is exactly the kind of factor that we want to take into consideration and designing what the next iteration looks like. But I will defer to the rest of the team and the developer on the current structure.
Speaker 6
I'm not aware of a of a prioritization that's been built in right now, but I think it is there's a clear incentive for us to achieve this as well as a desire just to be clear. So I think that this is something that we're gonna we need to work on. And to the extent that there's an opportunity to continue to discuss this with with after sort of approval as we move forward. We're open to that as well.
Unknown Speaker
Thank you, Cooperation Council.
Speaker 20
Mr. Chairman. Thank you very much. The council president has been in conversations directly with Mayor Duggan about looking at various programs that would include the kind of prioritization that you're discussing. This issue is in the forefront of a number of ordinances currently under consideration in discussion by the council president and the mayor. So I do think as my colleagues, particularly Luke and Cole and the developers begin their discussions about what those priority plans will look like. There is actually going to be a framework put forward by the Detroit City Council that will give them significant guidance. So I would say, Mr. Chairman, stay tuned. Prioritization of the kind that you're discussing, is going to be what those discussions are ongoing.
Speaker 5
Will it will it happen prior to this vote is the question
Speaker 20
prior to the vote? No, sir. It will not happen prior to the vote. It will certainly happen prior to the design or the reception process for applications.
Speaker 5
Okay, 
thank you. I have a number of other questions. I will submit them further in writing in the interest of time to allow member young to now ask the questions that he has number Yeah.
+1
thank you. I have a number of other questions. I will submit them further in writing in the interest of time to allow member young to now ask the questions that he has number Yeah. Speaker 16
All right. Thank you so much, man. Praise it. Thank you so much, Mr. Chair. Good to see everybody good to be here. The neck I want my first question wants to go to group executive Nicole's. Gerard Freeman. Um, I just want to ask this program that I have proudly as sponsor me and a member of waters as well. How many employees will be prepared to receive jobs through the Jumpstart program for these projects? And with the $100 million scholarships they're going to receive as well.
Unknown Speaker
Nicole, you are a new furniture. Bring a chair. Yes ma'am.
Speaker 12
Great remember young thank you for the question we're fully expecting through jumpstart to have 1200 Detroiters prepared for these kinds of opportunities. Now, because that program is new, as you know, since you are the co sponsor, and I don't know if member waters is still in the room, but she as the other co sponsor. i It is impossible to say at this point. How many Detroiters in the Jumpstart group would be interested in construction jobs, but I would feel very safe saying that a good number of the Detroiters and who enter the Jumpstart program will be interested in either the construction jobs or the permanent jobs. If we move to the 100 million dollar scholarship, we can tell you that roughly 30 40% of those who are coming through that program are interested in a career that is construction or construction. Related, which would include logistics and transportation, of course, and then the rest of the 100 million dollar scholarship participants those who are able and willing to work very many of them would be interested in the kinds of permanent opportunities that this development would bring about.
Speaker 16
So can you give me a direct number, a specific number or a ballpark number? How many people is that in the aggregate?
Speaker 12
1200 for jumpstart, okay, and then we're expecting Hold on let me do quick math. We are expecting roughly 2000 through the 100 million dollar scholarship program now please bear in mind, that's new participants. That doesn't count the 40,000 Detroiters who are already in Detroit it works database and so missed through the chair member Young is that are those numbers you're asking for?
Speaker 16
Yeah, I just wanted this one exact number because I know that a lot of these people that are coming to jumpstart are people who've been out of the workforce for six months or more correct? That's correct. No, no, this is the good number. I appreciate that. I don't know we have anybody here from the Oh CFOs office. But from my understanding, it's about 8000 people who are out of the workforce currently. So I just want to know, could I make the assumption that this number that we have here, because unemployment rate right now is like 7% I think it dipped below that December, like the first time it's been below 7% in 20 years. It is like 11,000 jobs that are available but it doesn't count people who have been out of the workforce for you know for a period of time I did with this program will this project not only go towards people who are looking for jobs now. We will also go looking towards people who have been unemployed for a long time, and we're bringing them back into the workforce and reduce that 8000 That 8000 number
Unknown Speaker
through the Chair. Yes,
Speaker 16
Freeman Yes, ma'am. Oh, oh, sorry. I'm sorry. You know, he's just so used to be back. Oh, sorry. I wasn't trying to I was dressed up on your territory. I swear that was just
Unknown Speaker
Google it. You may prove that we will do it.
Speaker 12
Thank you. So there are roughly 17,000 Detroiters who are out of work right now. And what we don't know is quite candidly, as economic winds continue to blow across the nation, what impact that will have in Detroit. So that's 17,000 unemployed. There are as best we can tell. More than 100,000 Who are disconnected from the labor force and don't show up in the unemployment numbers anymore. What a development of this sort represents to your point is very visible opportunity and with the developers plan to launch the opportunity connector with the nine community based organizations and WC 3d as partners and others we are we know that Detroit is need to see opportunity at scale. Whenever I should say that differently. Whenever Detroit are see opportunity at scale, and quite frankly, it's the llantas hiring 8000 Detroiters not just for the Mac plant but for their facilities across the state and in Toledo because of its driving proximity. When you try to see opportunity at scale, they reengage and take advantage of it.
Speaker 16
Okay, 
thank you very much. My next question goes to Mr. Bryant. Um, I want to ask you, sir, we talked about this earlier about 1520 minute neighborhoods, in terms of you know, planning in terms of being able to wherever you live, you're 15 to 20 minutes out from any sort of services that you need for the neighborhoods that are around downtown or within the vicinity of this area. Could this be seen as an opportunity to kind of build on that, that because of the services that we provided because of the opportunity to small businesses that will be there? Could this be seen as part of a way to kind of build on that and then you can replicate that throughout the city? That 1520 minute concept. So if you're talking about grocery stores or dry cleaning or any sort of services that need transportation, could this be something that you can use as part of that model and then build replicate that throughout the city?
+1
thank you very much. My next question goes to Mr. Bryant. Um, I want to ask you, sir, we talked about this earlier about 1520 minute neighborhoods, in terms of you know, planning in terms of being able to wherever you live, you're 15 to 20 minutes out from any sort of services that you need for the neighborhoods that are around downtown or within the vicinity of this area. Could this be seen as an opportunity to kind of build on that, that because of the services that we provided because of the opportunity to small businesses that will be there? Could this be seen as part of a way to kind of build on that and then you can replicate that throughout the city? That 1520 minute concept. So if you're talking about grocery stores or dry cleaning or any sort of services that need transportation, could this be something that you can use as part of that model and then build replicate that throughout the city? Speaker 22
Through the Chair, this is a this is Director Brian, I appreciate that. Councilmember. Thank you for the opportunity to respond. There are a lot of built in advantages that are already in play with the particular project. The concentration of activities that are there and that will be expanded by this project are amazing and something that could be a benefit for residents within a 20 minute walk or short bike ride away. So that is something that we definitely see as an advantage. And we can leverage. I think the ability for all of these entities to be developed within a pretty much a short cycle is something that we're finding to be very exciting. The fact of the matter is this level of development has not happened in a number of decades, quite frankly. And a concentration of activities within three to four years is going to be something that will be advantageous to residents as well, but to your original query, yes, there is a real opportunity for them not only to immediately have this be a 15 minute neighborhood, but also an opportunity to replicate this in other parts of town. We are aware of some of the innate advantages that exist because of its already dense nature. But there are certain things that we can take away and use as a model in other parts of the city.
Speaker 16
Excellent. Thank you for that, sir. I appreciate that. I have another question. Um, I wanted to ask him to whoever this may concern I got a question from a constituent of mine and basically what they were asking is about the affordable housing piece. It's kind of a simple question, but it's a direct one I just wanted to ask when you're talking about that AMI, the 20% and correct me if I'm wrong, but get the numbers wrong. 20% it locked in and 50% below. That's something that's gonna stay permanent. Right? That's not something that would ever revert back to market rate over a period of time.
Speaker 6
But I think there's locked in through the Chair, if I if I could answer that. There are two two things I would say to that one. We're making a we're signing an affordability agreement that is a 30 year commitment. Okay, well, the primary term is 30 years. Second as a company, we related as a long standing owner and developer of affordable housing and we have not converted any of our units to market rate through this period. So that is a continued commitment that in terms of our track record
Speaker 16
okay as I'm think it correct me if you're correct me if I get this wrong, but is Creo enforces that agreement, right.
Unknown Speaker
isn't only for Creo here.
Speaker 16
It isn't one No, just just I just want somebody to walk me through the penalties, the sanctions of that because you know, law without sanction is no law at all. So
Speaker 4
through the share, this would be monitored by a combination of cRIO. Department however, Mr. Coe can speak to the penalties and affordability agreement, Mr. Cole, Mr. Cole,
Speaker 5
good to see you. It can be Oh, where you go for it. I just want to be clear, we've we're going to be losing a quorum at one o'clock. So we've got to move through. We're going to be losing a quorum at one o'clock. So
Speaker 16
you're telling me to wrap it up? Or if we can just kind of
Unknown Speaker
fine tune on it? Well, you did have a question that she wanted to ask as well.
Speaker 16
So just so I'm a politician I'd like to talk. So just kind of giving you some guidance here. If you want me to wrap up, I can ask one more question Do I can ask to or what's the deal here?
Unknown Speaker
I'm giving you let you know what we're up against.
Speaker 16
All right, because I got two more questions out there. And I swear I just go as a corpsman one and member waters has a question and I'll wrap it up. So to answer that, for me, was like what like Luke was was the was the was the minister Cozaar was just the penalties was the sanctions. Is it fine?
Speaker 3
During the chair? Yes, there are financial penalties if the developer fails to meet the affordable housing commitment that they have provided to as Mr. Cantor stated their commitment is for 30 years and 20% of units affordable at 50% ami. If they fail to meet if units are rented out above the 50% Ami affordability threshold, their penalties would be 25% of the rent charge for that unit plus the amount that is overcharged above what the they're supposed to keep it affordable at so you know that disincentivizes kind of overcharging by providing an additional penalty, in addition to what they might have overcharged by that that 25% penalty. And that's something that's pretty standard in the city's affordable housing agreements. Additionally, and then in addition to that, which is the the county for overcharging the city has a right to clawback during the tender 12 I actually started the 15 years that the any z certificates might be in place to claw back a portion of the tax abatement provided equal to the portion of units that are not rented out at the required affordable rates. So you know, that, again, is a standard remedy that is included in the city's tax abatement certificate agreements that involve an affordable housing component. So both, both of those are baked into the Affordable Housing Agreement that the developer in the city would enter into. Excellent,
Speaker 16
thank you for that. I appreciate that. And I put my final question, wrapping up per chairs, desire, I just want to ask Cooperation Council are you there?
Unknown Speaker
Thank you by the members of
Unknown Speaker
council I'm here sir,
Speaker 16
my man I want to ask you really quickly. Um, President Sheffield brought up a real good idea about the I think it's a 2% ticket tax. And I had proposed a bit similar to that when I was in the legislature. The problem I ran into was the handling of men. Particularly Article Nine section 31 The Constitution. If we were to do something like that, where are we to potentially run into state constitutional prohibitions? And if not, could we expand that to any stadiums or other services as well?
Speaker 20
So Councilperson Yang, if the if nothing else, I've learned not to speak about tax matters off the top of my head. Let me take that as a question for which you need a written answer. And we end before the vote. Mr. Chairman, we will get our response to council persons Young's question just so that both he and the council president are clear as to what the law departments view is.
Speaker 16
Thank you. Appreciate. Thank you, Mr. Chair. Thank you for your patience. Thank you, Madam President.
Speaker 18
I am done. Excuse me, the Chair, may I make a comment relative to the affordable housing mandate is, isn't it normally I have a question. If anyone can answer this, isn't it normally 80% required by the developer or the property owner? Is the mandate 80%. So with this company going 50% of the AMI also felt needed to be noted because we felt that that was a fair based on it normally be an 80% as acceptable by federal guidelines.
Unknown Speaker
Thank you. Remember waters. Thank you.
Speaker 10
Thank you. Um, okay, so, um, the whole the whole affordable housing piece the I'll just be very quick with that with that question. 139 units are not enough. Um, and you're saying 50% You know, I wanted to see more housing between 30 and 50. Number one, so since you're not able to offer them in this project, I need you all to consider whether or not you can do another housing project in another neighborhood and receive credit for that but because we do need income based housing, I need you to consider that you don't even have to 
answer that today. But I want to put that up. The one thing that I want to clarify and I did ask this question in writing, Mr. Chairman, and I'm not satisfied with the response. It goes to the $21 million per year. That's going to be added to the general fund. And there are just so many things that tie in to what's going to go into the general fund. You're talking about income, tax revenue, and so forth. Now, I truly believe that your target market market is for those homes over there, those apartments and what am I going to end up being students frankly, maybe many students are not going to be paying income tax in this city. Many students I will be using their parents addresses in the suburbs. And you because they don't want if they if they dragged in that kind of want to pay the high insurance costs here in this city. So and then if you're talking about Office, office space, if you got to get monies from that I don't really see a bunch of that happening because we have so much free office space now. Where is this $21 million per year coming into the West coming from into the general fund? And when does it start?
+1
answer that today. But I want to put that up. The one thing that I want to clarify and I did ask this question in writing, Mr. Chairman, and I'm not satisfied with the response. It goes to the $21 million per year. That's going to be added to the general fund. And there are just so many things that tie in to what's going to go into the general fund. You're talking about income, tax revenue, and so forth. Now, I truly believe that your target market market is for those homes over there, those apartments and what am I going to end up being students frankly, maybe many students are not going to be paying income tax in this city. Many students I will be using their parents addresses in the suburbs. And you because they don't want if they if they dragged in that kind of want to pay the high insurance costs here in this city. So and then if you're talking about Office, office space, if you got to get monies from that I don't really see a bunch of that happening because we have so much free office space now. Where is this $21 million per year coming into the West coming from into the general fund? And when does it start? Unknown Speaker
Anyone can answer? The chair. I'll begin. Can you hear it? Would you like to?
Unknown Speaker
Yeah, look, we'll head out way to you, you start.
Speaker 4
I'll be brief, and I'll hand it to miss bridges. Thank you for the question. Member waters through the chair. So so the $751 million dollars projected in that fiscal benefits for the city is a combination of income taxes to be paid by not just the residents who would be living in the units, which we do believe would not just be students but would actually be a higher earning individuals who would be really individuals of all all income levels, given the mix of employment opportunities, but not just students. You know, we envision there being envision there being, you know, working residents in the 695 units predominantly, along with more importantly member waters. The workers in the office and retail commercial developments that are part of this development. And so, when you think about the general ratios and breakdown of that 750 1 million, about 635 would be paid by those workers and residents. Another 52 would be corporate income taxes paid by the corporate tenants in the commercial office, and then other via utility user and other miscellaneous taxes and fees to the tune of 63 million. So while city income tax is a major component, there are other sources around around corporate income tax around utility users tax that go into that 21 a year but also member waters just underscoring, you know, very important observation about you know, how many different how some of the residents may not pay high, as many as higher tax level as some others. You know, that number is inclusive of office workers, as well and so that drives a lot of the city income tax revenues. I'll hand it to Mrs. Bridges to speak to anything she'd want to supplement and maybe that when it starts answer,
Speaker 23
no, thank you. Look, I just wanted to supplement that. It does not rep. So there is you know, different individuals pay a different tax rate and we do realize that and so we took a conservative approach to blend those tax rates to ensure that we're giving City Council feasible numbers that represent what the level of income taxes that will be collected from this project, and those income taxes would not come into play until after the project. Well, they will come into play during construction because a portion of that of that is construction work or income taxes, right. So the city of Detroit gets a portion of that so it will come into play during the construction, as well as you will see a significant uptick once those jobs are placed in service after the construction is built. After the project is built.
Speaker 10
Okay. So quickly. I'm just going to ask one of the questions in the essay because of the timing. One question from the community and I'll email you the rest of them later. They said why is your no cap on the discounted parking fees parking fees can continue to increase. Will this be affordable?
Speaker 8
So through the chair, you know the current parking fees that we have right now are $140 for retail and we've offered up 50% off of that. So $70 a month for parking, which is what $2.30 A day. And so yes, you're correct as as inflation happens as prices increase over 30 years, you know those rates would go up but they would maintain that 50% discount at all times.
Speaker 10
All right. So I have a statement to read from a constituent you can respond to they need to pay for a real employment pipeline initiative and employment referral service is not going to do it. You try that work has lots of problems. The incentives should also be tied to those benchmarks. They keep talking about the village and they are making no commitment to work directly with community organizations and churches. Relying on Detroit at work is the lazy way out in response. Thank you, Mr. Chairman.
Unknown Speaker
Was that directed to anyone?
Speaker 10
Mr. Chairman, whoever wants to respond to him. They can go right ahead. Anybody up there
Speaker 11
through the chair? I would just say we have a Goodwill Industries and dozens of community groups and churches so we were absolutely committed to continuing that as well as the City Partnership.
Speaker 7
Through the Chair, I'll just add on we've had members from the faith based community show up and advocate for the project and be supportive. And I do believe that is because of our year and a half long community engagement and keeping people informed about this project and really getting their input to shape our plans and so we have no intention of being lazy and want to leverage the entire community to get these opportunities out.
Speaker 12
And through the chair. I would also just offer that Detroit work is actually made up of nine community based organizations including Wayne County Community College District, so I take the point but also want to just raise that we are the community.
Speaker 5
All 
right. Thank you mineral water. So thank you all for the responses and I'm going to take the chairs prerogative with one last question. And that is to the neck. I know there's been questions about you know, and I won't even put anything else outside of it outside of what a lot of people are hearing $250,000 that was recommended that the NEC would implement in some capacity. But the NEC said no, we don't want that $250,000 That's what is being circulated. So I want you to talk about that. So that is very clear. Whether it's from the dissenting member of the entire neck or the chair, whoever wants to discuss that. I'll give you the floor.
+1
right. Thank you mineral water. So thank you all for the responses and I'm going to take the chairs prerogative with one last question. And that is to the neck. I know there's been questions about you know, and I won't even put anything else outside of it outside of what a lot of people are hearing $250,000 that was recommended that the NEC would implement in some capacity. But the NEC said no, we don't want that $250,000 That's what is being circulated. So I want you to talk about that. So that is very clear. Whether it's from the dissenting member of the entire neck or the chair, whoever wants to discuss that. I'll give you the floor. Speaker 1
Yeah, Mr. Chair, Madam President. And other council members. I'll take whatever you know, Brian, or hit, if you will, as relates to there was a request that came in through part of our public comment as relates to $250,000 going towards the library system. As a neck, we one of the first things we sat down and said ours are sort of a rules of engagement. When we took in input from the community, we actually wanted that input, especially if it was a public entity or agency like Detroit public schools or the library, or even if it was used as city council, that we would have some type of official request from that agency, if there were something they wanted us to consider. And so Detroit public schools there were official ask or requests as relates to the athletic fields being upgraded in a contribution, and that we would negotiate that. And so what we asked was for if that the Detroit library had a request, because we wanted to be consistent, that either the CEO, board member or someone or something in correspondence from the library has specific requests as relates to the negotiate something on behalf of the library system. We never had a representative be the only executive side or member of their board, current board. come before us. With any specific request. And so the $250,000 we did research we went back and asked the city and said well, it was a library is it underfunded we got information back of course there's you know, there's a four meals, part of our all of us were taxpayers and the jury we pay into the library system. They had over $330 million. We were told in a surplus of unfunded dollars. Now I don't know that was sort of information we got back, both from city people at Detroit public schools because there's a connection with DPS and the library. And so we were trying to figure out what is $250,000 due? Because the request was to reopen all the closed libraries in the city of Detroit. Well, $250,000 there was no one showing us and we asked the library to come and explain if that will reopen the libraries in the city of Detroit. And so we never got a response from the library system. No one official party library infrastructure ever approached us and or asked and so we wanted to stick with some of these other requests. Like a Cass tech, that it was very specific, that we know that with target 220 400 students, you know, allow the community have a recreational facility within district Detroit that does not exist. And so that was sort of the you know, we were trying to stick within our guidelines, how we were operating taking requests. And to this date, we have not I have not seen a a formal request from library system as relates to a donation or how a donation would benefit that system.
Speaker 5
And there was no request for 250 to go towards some housing fun on a map on a regular basis
Speaker 1
that I do recall an hour out. And actually we have our vice chair here. I know he was focusing a lot in on some of that. I recall maybe during public comment, there is the housing trust that the city that the city has, I believe maybe there was a resident that had had mentioned that we did focus a lot of our energies into the affordable housing the section eight the other initiatives. Of course, there was a lot of focus on the business development side and so there was never really a specific I don't recall seeing a lot of specific details as relates to donation into the housing trust. But I know there I do recall that there was a public comment someone mentioning that
Speaker 18
Yes. Through the Chair for transparency, there was the person did request through public comment, never really submitted anything to us regarding anything specific regarding any type of donation. Now after the fact, that individual approached me and asked for something specific but that was after the process was over.
Unknown Speaker
Mr. Chair,
Speaker 5
if I may, still going through the neck, understood
Speaker 19
the first thing I've heard I had heard from the about $250,000 was the developer presented their mate were made a presentation and during the presentation they said something about contributing to Cass tech and the athletic field or or something to that effect. And I wanted to be wanted the developer to be more Pacific, contribute what contribute how much and I say contribute $1 or $100 million. The developer said $100 million can lock the neck member can lock set well what about the library? developer said $250,000 That's the last I've heard of it. Thank you. Vice Chair.
Speaker 17
Yeah, I'm thinking we're on the clock and this is about wrap up time. So let me try and address just a few of the things that have surfaced here that
Speaker 5
just the 250 That's last just the 250s To me it's just a quick let me get past Luke and then give it to you to wrap up um, for the last one and then we're gonna wrap this up because we got it. I'm losing a quorum.
Speaker 4
The Chair Thank you I'll be very brief. I just want to note that chair Jackson observed that the library did not press its case for the $250,000 and I suggest that that's because in parallel the city was reviewing the nature of the library's revenues visa vie DDA and brownfield tax capture. And the legal analysis concluded that these projects will create $27 million for the library over 30 over 35 years. And so the library is not only not harmed in any way by these projects, but in fact, we'll see $27 million and upside because of these projects. Thank you.
Unknown Speaker
Thank you Madam President.
President Sheffield
Thank you. I just wanted to recognize that I did receive an official request from the Detroit people's platform as it relates to funding the Affordable Housing Trust Fund so that was received from my office. I'm assuming other council members did receive that request. I do support a contribution into that trust fund. I also wanted to mention that the 2% ticket surcharge will be a voluntary agreement. It would not be a tax change or a law change. It would be a voluntary agreement that the developer would enter into. And then lastly, I just want to state that for me, I believe that there is room for stronger language around this $100 million speed as it relates to Detroit based trade disadvantaged businesses. And I'm hoping that the developer and all will come to an agreement that we can strengthen this particular clause within the agreement for me that is huge. And if I'm going to support this project, I would like to see stronger language regarding it, especially as relates to the executive order 2014. For the construction part, if we're going to combine the two I think it should state that. Also if the goal is suspended in five years, the agreement should reflect that as well to currently there's no timelines and benchmarks as relates to the spend of it. And so I would like to dig a little bit deeper into that portion of it as well. And so I will close I'm not sure if you guys are going to move it out today. But with the amount of concerns questions that were submitted, I would just encourage the committee to bring this back in one week for us to be able to receive responses and to appropriately be able to digest all that is before us. Again, I'm not trying to hold this up. I just want to ensure that when it comes on Tuesday, we're not doing the same thing with tons of people down there. Getting people excited. We're we're not quite ready to move forward. So thank you President potentate.
Speaker 5
Thank you. So member Vice Chair, we've gone through the items. We've had the discussion we've had the public hearings as well. As you know, I can't move an item. But I do believe that based on timing that it's important to at least provide the best opportunity possible. For us to have a true debate about this particular project, but again, I cannot make a motion but I will say this that we have a number of the items that would simply be receiving file and walk ons. Then we also have items that are that would would move to formal for a vote. So if we can start first because this will determine about the walk ons and receiving and filing. Is there motions for line items 6.3 6.5 through six point 13 Six point 15 and 7.1. Again, these are the items that involve the incentives as well as the the community benefits agreement.
Speaker 21
Thank you Mr. Chair and again I appreciate all the questions today. I think this has been one of our morals, Rebus robust discussions that we've had. This has been our committee now. And we've been hearing about these projects now for close to a month now. And today was the opportunity to have them speak within that speak with all parties involved. That being said, there is a number of questions that I'm sure that members are going to pose and put forward. However, one of the things that always concerns me is that timeline I've set on on the state level in the legislature. And I know they're in budget season now. I know that they're discussing the missing and strategic fine, and I do believe timing is of the essence. But that being said, I'm very respectful of colleagues and some of their recommendations and their questions that they still need to be answered for Tuesday. If this is to go through, but I don't look to hold that up. But that being said more of a neutral and so not necessarily making a recommendation to approve this or to deny it but to send it for without recommendation and to allow those questions to be answered on Tuesday. And so with that, Mr. Chair, I'd like to make a motion to send a formal without recommendation, those line
Speaker 5
items. So there's a motion to send to former without recommendation and line item 6.3 6.5 through six point 13 also six point 15 In addition to that line item 7.1. Seeing any discussion, see no objections we shall move those line items to former without recommendation. I'd also like to note that we've been joined by member Callaway with the clerk shall note.
Unknown Speaker
That was so no president pro tem Thank you.
Speaker 5
Thank you. And member vice chair we also have still hanging the walk on a line item 6.1 line item 6.2. line item 6.4. line item six point 14 And line item 7.2. Is there a motion to receive and file those line items?
Unknown Speaker
So moved Mr.
Speaker 5
Chair, see no objections? Those actions shall be taken. Again, colleagues, thank you again everyone who participated in this discussion today. We appreciate it. And if there's no objection, this meeting now stands adjourned. Thank you
Unknown Speaker
meeting this agenda