Good morning. Everyone and welcome to the Planning and Economic Development standing committee for today, Thursday January 26 2023. Clerk please call the roll.
Good morning, council president pro tem James Tate. Good morning. Sir. Council member Fred Hall to third
member DeHaan did indicate that he is on his way but he's running behind.
So know that by the clerk, Councilmember Leticia Johnson,
and Johnson also indicated that she is on her way but she is running behind. Mr. Pro Tem there is no quorum. Thank you. So we do not have a quorum. But we do want to get this meeting going. We have a pretty aggressive agenda today. So what we want to do is go into general public comment. So there's Anyone from the public who would like to speak please raise your hand now. If anyone from the general public would like to speak please raise your hand now. Going once, going twice, one three times. Collection of general public comments have now concluded and just for folks who are watching because we do not have a quorum, we will not be going back and forth. We typically don't do that anyway. But we are allowed to conduct the meeting for public comment purposes, as long as we do not go back and forth. So if I'm not going back and forth with you, that's why don't take advantage of that either. So we'll go with the first caller. Good morning, Mr. Mr. Singletary. How are you today?
Mr. Chairman, yourself.
I'm doing well. How many callers do we have and who do we have first?
Mr. Chair, we have five callers beginning with Miss Karen Winston.
All right. We're gonna give everyone two minutes for general public comment. We're gonna wait till we get the clock on the
screen. The timer
we can expand it
there we go. All right.
Our first caller, I Miss Karen Winston Winston. Good morning. Thank you for joining us. The floor is yours.
Hello, good morning. Good morning.
Did you have a rough drive this morning?
Driving in I mean, we're pretty bad up there. Um, well. Maybe you spent the night I'm not sure. So I want to speak about oh, public act 278 1980 Is the unfair labor practices, unfair labor practices. So we have like only situations where we can't just you know, give our jobs and our assets way. So I'm trying to figure out where are all of our assets and where is the list of all of our assets. Case in point, you know, we we own? We be in the city, we own many assets, garages, parking garages and things like that, and I know we leased them out, but they're still ours. So we have you know, the residents have to know we need to know where, where and what our assets are. You know, you can't just keep those things from us. But as it relates to the unfair labor practices, I believe that the city is in violation of doing that right now because you don't hire any city workers. You only hire contractors that hire 501 C three, so the money does not you know, benefit the taxpayers, even though the taxpayers finance the budget. So I think we should try to take a look at that and find out. You know, who if we're dealing with people who are participating in unfair labor practices, by not hiring at some point DTE was supposed to retrain people from public lighting to other jobs in the industry. Lot me and my friends still don't have
jobs. Thanks. Thank you. Next caller please.
next caller is over with. With thank you for joining us. The floor is yours. You have two minutes
Yeah, good morning Detroit. To everybody within earshot. I don't know what's going on. In the city. But a community Coleman didn't shoot herself. She can't be ruled a suicide because there's no guns. They're playing his own. He will not affect it to the city council to the mayor. Chief of Police Eternals there's and the Cymatics is being played. It's just downright ridiculous. So now the issue. Robert Carlyle. Now the mayor, all of a sudden, he holds a press conference to tell us all this incredible stuff about LEDs extortion attempts, the man trying to do stuff to him embarrassing him, and he said all this stuff that he'd know. Hi started, but then he filed an affidavit with the court saying he don't know nothing. He ain't got no personal knowledge. He got all this information. For some people at the law department. Not just city or Detroit. City council has subpoena power. Y'all need to call these people in here and have them explain to the citizen Detroit, what to shoot where the matter is because there's a lot of cloudy and greatness. Now I'm sitting here reading this report. I'm at my desk reading this report from the LPD regarding limited obligation tax bonds. Now it got a list of bonds on there. One of them was a notice published stone, but it's kind of allude to the fact I haven't got all the way through it is but it's alluding to the fact that there is no notice required further other bonds is never mentioned in the report. Now, why is that taking place? And this David Whittaker LPD and Miller Canfield. They seem to be on some BS straight up. Thank you.
Next caller please.
The next caller is Miss Carol Hughes.
It's Carol Hughes. Thank you for joining us. You have two minutes the floor is yours.
Good morning, Councilman Tate. You're alone today? No, may I?
May I speak? Yes, ma'am.
Okay, I'm calling about items on the agenda 7.3 and 812. It seems very nefarious to me and this this is behavior that doesn't seem to fit or being in line with the citizens to be suggesting that you put them in tiny boxes with a fence around it because they're homeless. I think it's inhumane and I think is inhumane for you to even let a white man come to this city and suggest that we house our people in these kinds of areas. I also would like to bring your attention to 812 which lists a RT North X LLC. That is not a registered business. These people want to combine the money that they get to help build tiny homes, tiny homes of which we didn't ask you for because they're not homes at all they are there's no kitchen and there's no bath. I don't know how that could be a home. It's a misuse of the word. And I want to call your attention to eight dot 11 where the mayor is having you all you know modify the CD BD RBG grants and the N and O F, please. You're modifying black people out of the grant process because the mayor is using or misusing these things. So So please, if you if you've got to do the basics, please check and see if these people actually exist as a registered company. That's the bare minimum we pay a million dollars for you to have a staff and I'm not sure where Mr. Todd is coming from allowing this kind of planning to come across his desk. Even to your table. You all have a blessed day. And I guess I'll talk to you again at the public hearing.
You as well. Next caller please.
The next caller is Mr. Kevin Hennessy.
Mr. Kevin Hennessy. Thank you for joining us. You have two minutes the floor is yours.
Thank you so much for taking the time. I'm specifically wanted to speak about something that's on your agenda. If I my tiny phones, I can't see what item it is but it regard the Michigan State law that bans captures and the public libraries. And I think you're taking up the fiscal impact of that is I have contacted my senator and representative to find out what the Michigan legislature can do about this but I'm upset that there is such a thing on the books that except for the city of Detroit, every other city is protected from people like the Downtown Development Authority, Detroit downtown authority to take money out of the library's budget. And information I have says that they're scheduled to take $4.2 million from its budget. Now I'm a frequent library user. I love the Detroit Public Library system. And when I go to the Detroit Public Library, and I know there's problems with hiring employees and so forth, but you can't even go to the main library downtown and go anywhere but the first floor, they don't have staff to even open up those other areas of library yet. So anyway, I'd like you to to address this that when you come to that item on your agenda. Thank you and thank you for your time have a good day. Thank you
you as well sir. next caller please.
next and final color is color ending and 711
color ending and 711 Thank you for joining us you have the floor and two minutes
you may forget the morning when you click on the draw I barely can make it up rapid next public comment on real fast I could barely Call me anytime. You don't want it too fast. James. You gotta give people time to call in. Okay. I want to briefly comment on the LTDs report on those bond issuances. There's a lot of holes in it. And I'm going to address the holes in it also. He took the liberty of putting in the ruling from the Michigan appeals court on those bonds, which that ruling was also full of holes in the statements and arrows. And but the LPD division neglected to tell you that our case is now in the Michigan Supreme Court was not over with a very important issue. As you will know. The Detroit Auditor General's position is going to be open very shortly so City Council is going to be selecting a new auditor general I just like to say that that's a very important process. And we need somebody who has the utmost integrity to be in that position and also the external auditing firm, external auditing firm, plant Moran the council needs to get rid of that particular outside auditing firm. They've had a lot of problems. There's been a blistering report by the oversight auditing agency about plant Moran doing subpar, incompetent audits also, as you will know Mr. Tate the selection process of plant Miranda took place several years ago
was tarnished.
So we don't we don't need plant Moran.
Thank you so much. Appreciate your family. And that takes us to the end of our general public comment and we're going to recess to the call of the chair to allow for a quorum to form a recess to the call the Chair
I'd like to now call back to order the Planning and Economic Development standing committee for today. Thursday, January 26. Mr. Clerk, please call the roll.
Council President Pro Tem James tait your council member Fred Hall to third president. Council member Leticia Johnson.
Member Johnson is on her way because she has deleted this moment.
So noted to our present you have a quorum.
Thank you sir. We have a quorum which means we're now in session. Good morning member Vice Chair. Sir, is there a motion to approve the minutes from last session? So moved Mr. Chair as a motion to approve the minutes from the last PD meeting. Committee meeting seeing no objections that action shall be taken. We are number Vice Chair. I believe it's been communicated to you, as well as member Johnson's office and we're looking to move the 1005 discussion to next week. We did get the information on it. But because of the very aggressive agenda that we have today, I thought it'd be best for us not to have to rush through this particular discussion because it is in my opinion, pretty important. I did make the request. So is there a motion to I guess we don't have to do just to make sure the motion to bring back in one week the 1005 discussion. So move Mr. Chair. See you no objections. We shall bring back the 1005 discussion in one week. objections that action shall be taken. let folks know that we're going to have a discussion today at 1025 just in a couple of minutes regarding the fiscal impact of the exclusion of the Detroit Public Schools and Detroit Public Library from tax abatement and tax captures. We have a number of individuals who will be joining us who have a lot of information and knowledge on what this impact would look like. We're looking forward to that. We also have a public hearing taking place at 1035. So number five is to try to get through some of these items which are 1025 If you don't mind. It's a motion to discuss nine items 7.1 7.2 and 7.4. Some of us Chair Thank you, sir, that we did have an opportunity to speak to council president's office regarding these three items. I know that she had some questions, remaining questions. They have since been responded and we were told that they her office is okay with moving forward with this. protect these particular items. Is there a motion for line items 7.1 7.2 and 7.4, please?
Yes Mr. Chair, I move that we take line item 7.1 7.2 on 7.4 and send a formal with a recommendation to approve
as a motion to send line item 7.1 7.2 and 7.4 to follow with a recommendation to approve seeing no objections as action shall be taken. Get to line item 7.21 a status of contracting procurement a contract number 6004051 100% arpa funding. This is to provide an extension and time only for attorneys to serve the troit landlord. Legal Counsel, is there a motion to I'm sorry, I meant in line item 7.3. Going too fast here
so I'll take we'll discuss line
item 7.3. Mr. Chair
Thank you sir motion to can we also get an I? Motion to discuss line item 7.3 as well as you know what? I think that's going to take us into a major discussion just because of the tiny homes conversation and we are at the 1025 hours. So let's get into that discussion. If you remember Vice Chair, I withdraw
my motion Mr. Chair.
Thank you sir. The motion shall be withdrawn. So let's get to the 1025 discussion with the parties who are participating please queue up. 1025 public 1025 discussion is regarding the fiscal impact of the exclusion of the Detroit Public Schools and Detroit Public Library from tax abatements and tax captures. Now this has been an episodic we've been talking about this for quite some time. And I want to thank all those individuals who have provided information provided advocacy as well. And thank you for their patience as the report was being drafted the report and when I say the report, the one that we really wait for this 10 year review. And I've got to say I'm a vice chair you know you we all have like favorite meals when you go to one restaurant a taste one way go another it tastes another same ingredients, typically because there's no love and there was a lot of love, a lot of care in this particular document that LPD put together. So I just want to commend LPD for the detail the analysis as well as me It may have taken us a while to get it but even the speed upon which they got this document to us. So I again want to give a big shout out to LPD for their work on this particular document. It's a guiding document for us at this point.
Alright, so
we are now about to jump into the discussion and the way that we're going to do this we're gonna allow LPD to discuss briefly, that particular document that I just mentioned the 10 year review of DPL and then we're going to allow LPD to briefly discuss the resolution that is before us that will potentially remove Detroit Public Library as well as Detroit public schools from a tech tax captures for tax abatement within the city of Detroit following LPD. We will have a representative from the Detroit Public Library now that one representative didn't. The first representative will be Mr. Russ bulat, who is no longer on the commission. But he I think your term is you returned out in December of 22. So it's just right around the corner and he is without a shadow of a doubt been the individual that has led us to the point today where we're having this discussion. So again, thank you, Mr. bulat, for being an advocate to ensure that we're doing the best that we can for the residents of the city of Detroit. We really appreciate that. We'll also have someone from the library, Detroit Public Library to provide additional comment on the position that they may or may not have on this particular resolution that is before us. Following that we will have representatives from Detroit public schools, community district will be joined by the school board president may may vary as well as School Board Member sharing data and Yogo will be speaking. Following that we will have individuals from the administration and the EGC to give their perspective on the resolution. We will allow anyone who has not had an opportunity who's a presenter to give a couple of remarks, brief remarks and then we will go to q&a with committee members. So just wanted to outline that let folks know what the intent is. And we were I'm asking everyone to please be tight with your responses stay on point because we again have a very aggressive agenda. All right, we're gonna open the floor first to for those who are participating, please introduce yourself for the record.
The morning Mr. Chair of quality from the listing Policy Division. Morning, sir.
Good morning, Mr. Chair Derek had LPD
morning I see Luke.
Morning Mr. Chair and compatible committee booth Bolson deputy group executive for jobs in economy in the mayor's office. Thanks for the invitation to appear.
Absolutely. Good morning. Next Good morning. Can
you register with the Detroit economic growth Corporation.
Good morning. Thanks for joining us.
Good morning Rebecca navan with the Detroit economic growth Corporation. Good morning.
Mr. Chair Good morning John nickel chief deputy CFO, finance director and interim treasurer for the city of Detroit and also the DDA treasurer. And Chair of the Finance Committee. Good morning.
else do we have
we have a number of participants so folks please be patient with us.
To the presenters if you can please raise your hand. It will give our team an opportunity to find you in the Zoom if you can raise your hand
because we want to make sure we pull you over
so as we wait for the additional members or presenters to raise their hand and be moved over to the presentation, we're going to allow LPD to briefly again discuss the highlights, if you will, important points of the 10 year review and then LPD if you can go into the resolution and briefly explain what is being requested what that resolution is will do. The floor is yours LPD.
Thank you, Mr. Chair. And again, good morning to all Mr. Chair and the committee members and to the citizens. I would like to briefly go over the PowerPoint associated with the Detroit Public Library tenure review. And hopefully Mr. Haire could speak to the resolution regarding this issue, and so just to quickly go over the presentation. I want to first acknowledge Renee short and LPD as well as Mr. hid in helping me to put together this comprehensive report on the trip of a library and a financial review of it. This was commissioned by councilmember Benson, excuse me, and based on his request, we felt it was important to provide a detailed history as much as we could on the public library
see here
okay, just got a whole lot just got to advance my screen here. Troy Public Library is a very important educational and social institution for the city Detroit for almost 160 years and they have provided essential library services to library patrons and citizens to the best of visibility with limited resources. However, the Troy Public Library does need help, financial help and passing the renewal of the library millage in 2026 is one key step in assisting the library financially.
And we in our research found that public libraries are still very important in this country. And of course, in the city Detroit Public Library has provided a host of of services for the citizens, again, on limited resources. And when I say limited resources, what I mean is that the library's total budget is around 30 to $35 million. And the lion's share of that budget comes from its library millage is 4.63 library millage, which generates about $30 million in net property tax revenue. So that's about 90 to 92% of its overall revenue sources. And unfortunately, at least for the library, before the before the DDA and other Tiffa owners, organizations or authorization to state law came into being there were no cap test captures the library was able to keep all of this revenue from its millage starting in 1975 76. The downside of government authority came to existence. That's why I'm very important reason why the DDA isn't assistance. So without question, the DDA has provided many well, you know, needed development projects in the downtown area. And then in 1981, the Brownfield Redevelopment Authority came into being which also can capture property tax revenue from the library. And again, the Brownfield Redevelopment Authority legislation has enabled the city to address brownfields throughout the city of Detroit for economic development. So those are very important tools, no question for the city. But because of those legislations, the library no longer is able to capture those revenues that are taken away by the Brownfield Redevelopment Authority and the DDA. And we had in our report, that those tax captures started out to be maybe around a couple of million dollars. And they're projected to be about $4.5 million by 2027. And what's difficult for the library then, because their revenue sources are so tied to the property tax revenue, that's, that's revenue data is not growing. So it's pretty stagnant and growth that we found over the 10 year period. So because of that, the library is limited in what it can do to provide services from the main library and from his branches. Now prior to COVID, the library had a main library and about 22 branches, as well as the mobile library. What coma hit they had to shut down the entire library system just like libraries throughout the country. But give me credit to the library. They reopened on a limited basis. The main library, the mobile library, and six or seven, I think seven branches. And so coming out of that, now that the pandemic you know, is fairly under control, still have problems of course let's get it under control the library has been able to reopen, supposedly, an additional nine branches. But in order to do that, we found that the library has to take money from his money day fund, which right right now has about $32 million dollars in it. But the other take money from their wedding day fund to either meet their daily operations or to provide our plants and our print material for the libraries. And we know that non print material, like ebooks are more expensive. So they have to use their own monies to do this. And also the library has to use monies from their rainy day fund to provide necessary capital improvements to the main library as well as their branches. What's unfortunate, is that back in 2009, maybe 2008 The voters of say Detroit approved bond authorization $97 million dollars in bond authorization to provide general obligation bond proceeds for museums, cultural institutions, municipal facilities, as well as a Detroit Public Library and it was communicated to the citizens back in 2008, that possibly 25 million of the 97 million bond authorization will be used for Detroit Public Libraries. But since that time, no general obligation bond sales have been conducted on behalf of the library, which means again, the library has had to use its own resources to provide capital improvements to its library system. So we looked at just kind of wrap this up. We looked at three scenarios and I'm just going to talk about two of those scenarios regarding the liability. We'll look at a scenario where starting in fiscal 2024. One, the library's revenue sources could increase by another million dollars, maybe a million a half over a four year period from 2024 through 2027 26, I'm sorry. And and that's based on the latest revenue, assumptions and property tax revenue that was discussed during the last September revenue conference. And also, more importantly, the library's pension obligation or pension expense will drop dramatically from $2.6 million down to one $1,000. And that's because the library was able to make his pension payments during the 10 year kind of adjustment period. And, and those were accelerated payments. So by doing that, I see Miss Powell that the powers can up, sir.
Mr. Chair, I think you've missed calling the 1035 public hearing.
Thank you Dr. Powers.
My computer just shut down on crazy I would like to now call the 1035 public hearing and recess it to the call of the chair. Thank you so much, Dr. Powers. You may continue.
Thank you Mr. Kerr. So by the library making a salary payment to the general retirement system, they will have paid off their personal liability starting in this fiscal year which starts this July one. So that gave them a wiggle room about $3.5 million more to work with. And my scenario two shows the impact of that greater wiggle room and it also is based on the library operating just 80 branches and a main library in the bookmobile. And looking at this scenario. The library would just have to go into their rainy day fund for 2023 the current fiscal year to do any capital improvements, but they show a balanced budget for 2024 through 2026. Now the third scenario is based on the library's proposed budget for next fiscal year. And based on that proposed budget, they desire to operate 20 branches their main library in a bookmobile and based on that they will have to go back to going to the rainy day fund to meet operations or to provide capital improvements. And that's deficit spending. And if they were to continue to deficit spend at that level, they mean they find could be exhausted in about 12 years. That is not a way to run an operation. And so, based on those scenarios, we had a number of recommendations. And I just want to highlight a few. And by the way, our full report on library as well as a PowerPoint is on the legislative policy divisions website for citizens to review. So just to highlight on a few recommendations, we strongly urge the city of Detroit to consider a library whenever they go back on the market. To sell general obligation bonds. We know that right now. It's just not a good time to try to sell your obligation bonds because of high interest rates. So the market is just not primed to go and sell bonds but whenever it does, we're hoping that the library can be considered. And the Barcelona let me let me say that there's $21 million remaining from that $97 million bond sale and I know that there's capital improvement needs the router sin. Would it be wonderful as the administration consider library if they sale that $21 million and bonds? Yeah, for any reason the administration cannot use some of that 21 million for the library. Whenever it does go back out on the market. We asked that future bot valid questions. For general obligation bond sales would include a separate one of a library so it could get the attention that it needs.
We also recommend that the library conduct a capital needs assessment because right now their their five year capital improvement plan is about $9 million dollars. It appears that that's just to provide minimal capital improvements to keep the branches open. But if if a true cost analysis was done, most likely that cost analysis was show to truly bring library system up to the 21st century. It's probably gonna cost a lot more than $9 million. And I think that the mayor in the city council needs to know that as well as the library commissioners so that plans can be made to address those needs moving forward. Couple more. We had about 15 recommendations. I'm just trying to highlight the main ones. Um, we asked that the the Office of Grants and under oath CFO, the housing revitalization department and the communications and media services provide more assistance, a library in particular obviously grants. We know there's a number of federal grants out there that the library public could utilize for their operations. And then lastly, we recommend that the drug administration and the city council said collectively determine if a restructuring of the governance structure of dp DP or the library such as providing city appointment authority on the Library Commission. Not a takeover, not a full takeover. Just a partnership, such as providing city appointment authority on a Library Commission says restructuring of the governance could give the mayor and the city council greater comfort and providing a city subsidy to the library and providing significant public capital investment in the library systems problem. But as we mentioned in the report, any change in the governance structure of DPL will require state legislation and just to end this again, we we ask that the city council that's one of our great recommendations too by the way then City Council pass a resolution and support other we know of the formula know that go meals coming up in 2026. We feel that by the city Detroit Become a stronger partner with the Troy Public Library. It would really help them moving forward it possibly will help them to also receive assistance from the from the philanthropic community foundations and so forth. Now briefly with respect to the task caches again.
First of all,
there was an amendment to the DDA legislation back in 2013 2017. And there wasn't a public act that allowed libraries to opt out of
test captures.
Unfortunately, with the library number one, that legislation did not stop the Brownfield Redevelopment Authority to capture taxes from the librarian with respect to the DDA unfortunately, the library cannot opt out of a library unless there's an agreement between the library and the DDA. But the cannot opt out as long as there are outstanding obligations with the DDA. And we know that the DDA sold bonds to the tune of about almost $40,000,000.20 to $50 million for the little seasons of winter project. And when you add the interest to that, Principal, for those bonds, the total bond indebtedness is about $560 million. Those bonds will be paid off and 2049. So because there's outstanding obligations, the TVA is still able to capture taxes to pay off those bonds. So with that, I'd like to turn it over to Mr. Head to go over the resolution. That's before you. Thank you so much, Mr. Chair.
Thank you again, Mr.
Corley, for that very thorough report that you provided this body and the general public. Thank you.
Mr. Here. Thank you, Mr. Chair. And thank you, Mr. Corley.
Before Mr. Mr. Haire. Before we go, I would like to note that we have been joined by member Johnson Good morning, ma'am. Thank you for joining us. Thanks. all the way here as well. Mr. Head floor is yours, sir.
Thank you, Mr. Chair. This resolution, which council president Sheffield requested that we draft included several things and I will not rehearse them. The worst of all but one of the things we pointed out resolution was DPS has struggled to fulfill this mission. Because historically the state of Michigan has used property tax collection and local areas to fund schools, which for a poor district like Detroit, this is an unfair and inequitable way of funding schools. Also the library's impacted similarly given the fact that it has a heavy reliance on local property tax revenue, which I will not go into because Mr. Corley has covered that tremendously. So essentially, what this resolution asked is that the choice city council would request that the state legislature actually changed the state law and change it in a way that would exclude both dpscd and DPL from both tax abatements and tax captures in order to find immediate increase in funding for both of these institutions. So essentially, Mr. Chair, that's what that resolution would do and what it says
and that yes, thank you, sir.
Thank you, just for for clarification, and then we're going to make sure we go to the rest of our speakers. Just for clarification. If in fact, city council and the minister everybody works together to exempt DPL as well as dpscd from those tax captures. I know we talked about the fact that currently DPO cannot get out of those particular tax captures because of the outstanding debt. Would that still apply? Or would that only apply what would they be allowed to move or be exempted as a result of any new legislation even though they still would have that outstanding debt?
Mr. Chair, you are correct. They would not because it's the same it's the same thing because of the outstanding debt. So right now, they would not be able to opt out. But DEP L. Well, Detroit Public Schools. This situation is a little different than the Detroit Public Library. Because the state actually makes up for the tax captures and also the tax abatements. But as Mr. Corley could tell you and he has pointed out is that there is no such system in place for the library to replace what is abated, or what is captured through tax captures, but yes, you're right because there are several outstanding bonds, which which are dedicated which which are applied to Detroit public schools, they would not be able to opt out or immediately be opted out anyway.
Okay, so it sounds like there would have to be some additional legislation on top of this move to reach that particular goal. That's what it sounds like. I'm gonna go now just very briefly, I think it's a clarification clarifying statement to a member vice chair who we know love and respect. He's got information that we don't have necessarily at this table by being a former member of state legislature with grace with his presence.
Thank you, Mr. Chair. I don't know how deep that knowledge runs. But just to clarify, though, even if there were and correct me if I'm wrong, Mr. Corley, as well as Mr. Head even if there was action taken on the public act, due to the fact that unless in some way it was made retroactive, which I don't think you can generally do, particularly when you're obligated with bonds, for this particular instance for a library. Again, they will still, obviously be on the hook relative because those agreements were made prior to even if legislation was passed. Correct.
Mr. Chair, custom in general, yes, I would agree with that assessment.
So I think that's just a concern. You know, even if there is a modification going forward with, let's say, other developments and other agreements, the difficulty becomes the fact that they are still on the hook for one of the largest developments or bonds that we have hanging out there. And so I think that's the concern, you know, moving forward, let's say there is another there are more abatements to come. And, you know, you try to tackle that issue so you're not or they're not on the up till 2049 Still with the remaining debt that for those bonds up to 2049 is still would be a tremendous number. I mean, maybe less, you know, in hindsight, because you're not adding on to the debt with new obligations, however, that one obligation still exists. So that was just my comment and my concern. I know, many of my colleagues in Iowa and we're going to hear from one shortly, who was on the school board, but also served in the legislature with me, you know, we, we reviewed a lot of different ideas relative to that and trying to find ways to make our library stronger. But noting that, again, that legislation kind of binds us, per se, so to speak, to about 2014 So I just wanted to provide that clarification, you know, relative to this issue. Thank you, Mr. Chair.
Thank you so much, Mr. Vice Chair. Alright, so we've got the, we won't first let the presentations go forward. I just wanted to have a quick clarification on that. And certainly, we're gonna let this train continue to move. Next up, we have restaurant former Detroit Public Library Commissioner thank you for joining us, as I mentioned before, he has a very integral reason why we're here today having this discussion because of the relentless advocacy that he has pursued, and tried to again identify how to increase the funding revenue for the Detroit Public Library. Thank you, sir, for being here and want to give you an opportunity to speak and express what you would like regarding this particular resolution.
Thank you, Mr. Chair, I and I appreciate the manner in which you're conducting this discussion. And creating a process of inclusion in the discussion. That includes the Library Commission and the school board. And I also appreciate elements of the report. Mr. Connolly presented, especially about the history of tax captures, and the adverse effect they've had over the years on the Detroit Public Library's finances.
The issues also of
the capital bond that hit that Mr. Corley reported on are essential and little known. I do want to say, however, that there's some some things that I'd like to correct i i noticed in the PowerPoint that was presented last week at another committee that they said the tax captures will be 4.1 and 2027. Today, he said 4.5. In the coming fiscal year, the city plans to escalate the tax capture up to 4.2 million. And the report that was given to the Library Commission through Antonio Brown from the city said that they were going to increase that 4.2 million 100,000 Every year, up to four, you know 4.7 million from the 3.5 which is a huge historic high already. I see the resolution addressing legislation that will prohibit tax captures new tax captures going forward. I agree with the comments, and I think the library agrees with that. We cannot undo what's done in the past, but we need to stop what you know from my my perspective is a rapacious increase. Continuing against the library, and I noticed that library administration officials are on they will I'd like them to explain why they can take a $1.2 million fee out of the library's budget and not give any documentation as to what this 1.2 million is paying for. The city has administrative costs, they issue checks and so forth, but 1.2 million our auditors have asked the city to document what those fees are going to. They refuse to do so. We are still facing you've probably seen a number of outside reports now that report to you what I talked to you about on January 10 About that the taking of the wire fraud which the city refuses to take any responsibility for to the point where they have held up the allocation that city council gave them for several years now. When the DTE is doing redoing its power grid, it was agreed that the city would pay for the HVAC conversion because of the voltage change the city through our General Counsel Dickinson right law firm told us that they wanted us to sign off on something absolutely absolving them of any responsibility for the wire theft of the accounts that they control for the library. And they've held up the City Council approved project for two years. And if you know so our HVAC system is on one leg right now. And we're going to wait could lose operations in the main library this summer if they don't follow through. So what we're showing and this is responding to, I didn't expect this to be on in the report. The call for restructuring. Mr. Quarterly set, repeated Scott Benson's statements that this isn't a takeover, it is a takeover. And if you look at the language restructuring and taking over the the governing board of the library is a takeover. So if if the party that that is indifferent to the wire fraud from their own own area of responsibility, that takes $1.2 million a year in administrative fees without the courtesy of an explanation. I personally think that 1.2 million is way higher than the actual costs if they tax capture relentlessly and and plan on huge increases for years to come. Those aren't the folks that have a heart and a care for the mission of the Detroit Public Library. They see us as a cash cow for development projects. That it in the city that faces the deep educational crises that the school that we face through the address through the school board and the library. any diminution of the capacity of the library, and director mon Downey has done tremendous work in getting programs into the libraries in the branches and and cooperating with the Detroit Public School District. any diminution of that and our capacity to do that is inexcusable. For every dollar of development that they say they're getting downtown, that that's $1 away from neighborhood development and education of our people in our young children and we're doing programs that start with children at p k before kindergarten and we need those funds. I would also like to correct one other thing, another thing in the report it says that the attachment three on page six the LPD report put this in a memo a report on April 26 of 2021. On Page Six it says that the library gets point six four Mills from the school district that's completely false. Director Minh Downey and myself on separate initiatives have repeatedly addressed this to David Whittaker and LPD but they refuse to change it. And I've asked him to talk to the school district perhaps somebody today can address it but from the school district. We do not get any money from the school district. We're on our own to 4.63 mils. On Property taxes are 90% of our revenue, and most of that other 10% wouldn't occur if we didn't have that 90% So we literally exist on our millage other tax capture entities. The millage is a small part of their revenue for this. It's everything. We need the city council to protect the library and you know down the road we can talk about ways of addressing the legacy millage expenses, tax capture expenses but we I'll just say that week, we cannot fathom why the administration has been indifferent. We sent a letter signed by all seven commissioners two years ago to talk to the mayor about the library and its mission and we never got an acknowledgement or any kind of response from the mayor. They have completely ignored and are indifferent to the concerns of the library and through through the wire fraud theft through the mass escalation of tax captures from the 1.2 undocumented administrative fee. We're going to be losing one of every $6 Or every $5 Even in in the coming years. 20% Can you imagine if somebody was tax capturing 20% of the city's revenue think of put the library and education in the needs of our our children, our seniors, and a community first and foremost, there's a lot of resources that exist in the downtown development arena. The library should not be one of them. Thank you
Thank you, Miss Phillip, thank you for your testimony. And know that we are also joined by Commissioner Franklin Jackson. Commissioner Jackson, are you there? And I believe you're you were not able to be on your camera but you are joining us by phone. That is correct.
That's correct. Okay, please
introduce yourself again for the record and give you an opportunity to state as a current member of the board the position on the resolution if you can strictly stick with the resolution that we have because I think we've got a lot of a lot of stuff that got framed. I think they're very important, but what's before us for sure, is a resolution for exemption, should we do it should we not so if you will, Commissioner get Introduce yourself for the record and let us know the position of the GPL committee Commission.
Thank you, Councilman. My name is Franklin George Jackson. I'm currently the secretary of the Detroit Public Library last year I was the president. I won't be redundant but I support what Russ bulat former commissioner has stated up to this point entirely. And he stated it very succinctly and accurately. What I would like to add is the efforts to make a partnership with the Detroit Public Library by the city is a violation of the establishment of the commission system. The commission system was supposed to be above the political fray and it's been this way for more than 150 years. And any attempt to partner with us while you're tax capturing us. While there's the outstanding issue of the $400,000 deaths that the city won't pay us back even though the city was the cause of the $400,000. Last, not the library. All of these ongoing issues are violating the the commission system that was established to leave the library separated from the political system. I don't understand how a city can use your term partner with Detroit Public Library when you are our fiduciary. I don't know how you get appointment authority on the members of the body that you are the fiduciary for isn't there an inherent conflict of interest in that? I think so. I think it's glaring. I think it's obvious with regards to the specific legislative policy division article to tell the library that we are on the hook for things that we didn't initiate until 2049. And the city in year in and year out comes to the library to take money out of our accounts. Through the tax capture. They won't tell us what they intend to take. They won't even tell us what they intend to take the following year. And it through your own projections you see that you will probably make us insolvent within a decade. With this continued abusive behavior. Why wouldn't the library want to be separated? From the city of Detroit through tax capture? We already suffer greatly at the hands of the city. And the irony is the library is so well managed. We issue tri annual budgets. And despite that, we have managed to hold it together to provide services to have branches. We managed to have a emergency fund that emergency fund which was identified as having $32 million in it. I don't want anyone to be under the impression that that is static. That number rises and falls quickly because it is dependent upon property tax collection and the needs of the library system as well as the unknown amount the city will take every year through tax capture. Through all that the library has still managed to reach an agreement with our labor groups for our workers through the memorandum of understanding through the general retiree system. I just want something clearly understood that the library never experienced bankruptcy while the city went through bankruptcy and retirees from the city took a hit. We were not in bankruptcy because we're a separate municipal entity. And the unions approached us and they said you got to make the retirees from the library that are in the city system who had taken a hit you've got to make them whole and we did that despite the financial challenges of tax capture. We did that because it was the proper thing to do and the right thing to do. It wouldn't have served Library's interest to go into bankruptcy with the city one because it would have been fraud. We had some money in reserve but to we there was no need for us to do that and put our properties and our art selections and our and our books in jeopardy. Just to follow the city into bankruptcy to dispatch with old debts. And so we've we've done all these Herculean economic things with very little fun and we've managed it very tightly and what we're trying to communicate very clearly to the city is that we have reached a limit the the the behavior of the city towards the Detroit Public Library has reached and I'm not afraid to say this an abusive stand. They have regarded us they have come to regard us for some odd reason as a cash cow as Russ valon said and we need to stop this because when the library system collapses, it will be at the hands of the city. It won't be because we were internally mismanaged. Or we're just another legacy department from old Detroit that needs to be revamped or whatever colorful words you might be using. Our biggest threat is coming from the city and to this date the city has refused, just flatly refuse to return the $400,000 that was stolen from the library because of the city actions, not because of anything in the library. Now currently, there's an FBI investigation into this and I'm still waiting for a report from them. Regarding this theft. We didn't receive any support or help from the Detroit Police
Commission. So, Commissioner, if we can we can kind of get us back to the actual resolution because that's we've got to, again, a pretty aggressive agenda. And we're right now at 1114 We have other speakers who want to speak as well. Take us back to my position again,
Councilman. I appreciate you thank you, Councilman, the legislative policy division. They went to great lengths to create this document and as Mr. biller has slowly pointed to go through 150 pages of this front and back and they're under the assumption that the Detroit Public Library is receiving funds from the school district. I don't know how they came to that conclusion. But that is completely false. We are a separate municipal entity. And we're going to have to seek relief from the abuse that we're receiving currently from the city. I'll leave it there and you can go to other comments. Thank you.
Thank you, Commissioner. Appreciate your comments. Your participation as well would now like to turn to the Detroit Public Schools community district and that we've been joined again as I mentioned earlier, by President Angelique Peterson Mayberry as well as a member of sherry Gayden Yogo. If you both would, please turn your cameras on and we'd be appreciated. Love to see as many people as we can. We're presenting before us. And good morning to both of you. Thank you for being here if you can, please. Before you give your statement. Introduce yourself for the record. I want to publicly congratulate President Peterson Mayberry for again, being appointed as president by the school board. So congratulations. Definitely do a tremendous job. The floor is yours.
Thank you. Thank you, Councilman say I am Angelique Peterson Mayberry served in my second term on the Detroit Public Schools community District Board of Education and really, really much thanks to my colleagues for entrusting me for a second term also, as President of the Detroit public schools, community District Board of Education, and I'm honored to be alongside Miss sharegate diagnostico legislative guru who is here with us today. So I will let her introduce herself. I'll say a few things and then I'll turn it over to my colleague member getting tecnova
irrigating elbow, former staffer to city council back in the day. And my Councilman is Councilman Tate, former State Representative serving with Councilman Fred Rojas. It's good to see all of you today. And now currently trade school board member former teacher.
Awesome. Thank you for being here as well. Neighbor.
Council President Are you are you going to give
remarks first No, no, the floor is yours. Okay,
so I'll start and then I'll turn it over to my colleague. So let me just first say unequivocally the board and the district we fully support the redevelopment and improvements in Detroit, I mean, that that should go without saying. And while some of these developments can actually spur growth, we want to ensure that billion dollar company with billion dollar companies that abatements Don't continue to take away dollars from our students. It was mentioned earlier, but I just wanted to mention it for those who are listening. We have two villages in the school district. So there's 13 mills and as for capital debt, and then at Mills for school operations, which we presented to voters. It was presented by the school district and voters approved. Both of those DPS does not receive 18 millage reimbursement, and that's basically due to the configuration of dpscd So therefore, each abatement of the 18 meals actually extends the debt repayment time, and it increases the amount of interest that we have to pay. So we have approximately $200 million in outstanding debt to be repaid. There also currently is a $1.5 billion outstanding capital debt to be repaid through the 13 meals that day is not expected to be repaid until 2049. So that just kind of leaves us with very few options to raise funds to address the $2.1 billion need that we have for facilities. So let me again, just say we maintain our stance to be exempt. This was stated in a communication that we share with President Sheffield back in 2021. And due to the new board composition, this indeed is a planned agenda topic in our upcoming retreat. So as we move out of this horrific pandemic, we want to get back to the educational reform work, which we know is severely underfunded. Our focus has to remain taken action that is in the best interest of our Detroit students and academic recovery. So I wanted to make that statement just to let people kind of know where we are and then turn it over to my colleague member gage Nago.
Thank you, Madam President. And again, thank you all and all of our citizens who are also tuned in this continues to be a pressing issue. So we're very grateful that your body has taken our request seriously. And as we address inequitable funding, we know that a lot has happened. Since these conversations have started, we know that we've been impacted by COVID. We know that we received some additional dollar from COVID. We also realized that we now have a Democratic majority in the House, the Senate and the governor's office is so Wow. The board does have a custodial obligation and responsibility to highlight and point out the inequalities that exist and how we're in affected by these villages. We believe that there are some partnerships that we can establish with the councilmembers the administration to have a more robust conversation about addressing not only the legacy debt that exists, it almost feels like in perpetuity but until 2049 But we also need to look at how we can update Proposal A and to hold harmless the low millage funding that is associated and why we're not able to get equitable funding in the first place
without the rounding
proving counterpart help with respect to removing the vestiges that was created and
there are a lot
we also need to look at at community colleges. One of the big elephant in the room is for you know our legislature to fully fund of literacy lessons, the $94 million so we do have two new members and our financial finance committee does meet tomorrow of which I'm part of and as our president highlighted this
this never get done younger
your your is also like my summer style. I'm sorry. Are you can you hear me?
Yeah, we're having some trouble troubles. Your fetus is going in and out.
Here Yeah, remember guys know where happens sometimes is if you're trying
to buy Wi Fi
Yeah, I was going to ask if you can turn your camera off. Yeah. And complete your your statement that will prob that might help.
That may help. Can you hear me? Okay, turn it off. Okay. Is that Is that better?
We can hear you. You can hear me?
Yes. I don't know where I left off. But I talked about the areas in which we would like a dish. Ship as our custodial responsibility of addressing the millages and the legacy debt.
We all
so need your help and focus on addressing protocol a hand holding harmless the district and as we try and compete with our surrounding suburban counterparts, removing the debt we created under their watch making sure that we address NBC the $94 million from the literacy lawsuit. So there are other ways as we continue to move forward and talking about this. As I mentioned, our finance committee meets tomorrow. We have two members, but as our president dated, we do have a custodial responsibility and obligation to highlight the impact on the district. We're just asking to broaden the scope and ask for your support and the other areas that I believe will help ensure additional funding that is coming directly to the classroom for our children.
I believe that does that conclude your your comments member Daniel go yes it does. All right. Thank you so much, very much. Appreciate it. Alright, so now we're going to go to the administration as well as the D GC, who will provide their position if you will on the implications. Of this resolution if it is approved by our body and if you can please introduce yourselves. I think you guys have done it. We saw you on screen earlier. So you may proceed whoever like to begin.
I this was category just with the Detroit economic growth cooperation. I like to begin, and I'm just like to say that the Detroit Public Library and in Detroit public schools are very important. And we do realize that but I do want to take us back to just the overall authorizing statute. Tax abatements are not local statutes. These are enabled by state authorizing statute. So we have the this would have to be addressed through a change in the legislature. But I do want him to start and say that at no point in time does DPS or DPL, lose revenues, tax abatements, the way tax abatements work is that tax abatements provide a discount on real property improvements for certain period of time, any taxes that were paid prior to those improvements being made, as well as the taxes on the land continue to be paid and the taxing jurisdictions continue to receive that, that funding and no different from the TIF there's a base value that's established prior to the increment occurring and that base value the taxes are continued to pay to be paid on that base value. So I do want to mention that there's never a loss and revenues here. So we're not talking about the schools losing money. But this is something that helps us tax incentives is something that helps us to remain viable and competitive as a city, right. If we want to continue to see that economic activity that we're seeing today. These tools are necessary. We underwrite all of these tools, and we look at these tools and they go through rigorous evaluation. And there is about four guiding policy that say without these incentives, this project could not happen. And so when we look at what we were able to facilitate last year, it was more than 3000 jobs that we were able to kind of put in motion, as well as over a billion dollars in investment that would not occur without these incentive tools. Because we like to say we underwrite each tool, and each to each abatement demonstrates the need without the need, there is no project to be had. So I just wanted to make those few comments and then I'll turn it over to my other colleagues. Are they sure?
For sure, sir.
Thank you, Mr. Chair. And thank you, can you the only thing I'd add, Mr. Chair is that again, given the the recognition and the design of the statutes that Watts have baited or captured is only incremental revenues. I believe the legislature's intent is to take and apply the reach of any abatement or capture to nearly every taxing jurisdiction without without many exceptions. And in similarly as we evaluate the, we evaluate the need for the use of these tools on a project by project basis, our choice is only on is to flip a switch essentially up or down, and have these tools apply categorically, as all taxing jurisdictions are none of them. And so as Miss bridges just explained, we only use these tools when they are necessary to enable development. And and we are only impacting what would be new revenues unlocked by these developments and non existing revenues. And I think that's a really important point to underline the risk of repeating Miss bridges. If I can say a few words, Mr. Chair about how these tools do and do not impact school funding. You know, I would I would not dispute any any points that the dpscd leadership may have given their expertise but but if I could try to sort of frame the conversation in my own words. There is I think, an important distinction to draw between the way in which these revenues, what the what the various Mills do and do not fund in terms of assessing the impact. It's important to note, Mr. Chair that the school operating mills and the stt revenues that are that are generated by properties in the city of Detroit are in fact contributed to the state and become part of the contributions to the state school aid fund. The school aid fund, Mr. Sherr is a state source that then funds school districts on a per pupil basis, regardless of the amount of local revenue generation and so that means, Mr. Chair, that if there were any abatement or capture of operating mail revenues or ICT revenues, by virtue of a tax abatement or a TIF, any shortfall in revenues that may result from that or any, any diminution in new revenues, I should say, that would have gone to the school aid fund because of that, do not impact the amount of money that the community district receives on a per pupil basis. And I think that is an important mitigation consideration for the question of school operating funding. Similarly, I think as a community district leadership pointed out there is of course, the question of the old EPS that is to say, the former Detroit Public Schools district as compared to the community district, their capital debt, and the way in which the debt mill which really only exists to service their old debt is a unique challenge that I think has a lot of different solutions to it. And and yet for purposes of evaluating the significance of what the exemption from tax abatements are capture the significance of an exemption for the debt mill. It is, I think, worth underlining that that would only apply to the funding source that exists to service that debt of OTPs. And so, so I appreciate the committee's time. I know we have a lot to discuss them. We're already running along so if I could please Mr. Chair, handed over to my colleague Mr. neglect to say a few words about library revenues. And the role of the CFO.
Yeah, thanks, Mr. Sharon. Thank you, Luke. I just wanted to correct one comment that I believe the former commissioner made. The city has I think everyone on this call knows is required by state law to have a revenue estimating conference and a four year balanced budget. So we project all of our revenues, as you know, through this revenue estimating conference, and what he's referring to is we shared with the library, the projection for what property tax revenue would be in each of the next four years and because we know that the taxable value has been growing in the city because of the great turnaround in values because of a lot of the things that the administration has done. There, yes, their capture goes up but the net revenue to the librarian that projection is also going up. So as Mr. Paulson said, it's important to remember that the library in the schools are not the only people who are having their taxes captured. The city is having property taxes captured the DDA just to put some numbers on this. Sales tax capture revenue. Last year for our audited financial statements of a little over $50 million 30 million of that as the debt service on the bonds that Mr. clearly mentioned that were issued for Little Caesars arena and then the incremental bonds that were issued to accommodate the changes for the pistons, making a commitment to come downtown. The remainder of the DDA revenue is used to support economic development on job retention when when we needed to make a deal to have ally commit to keep their employees and to relocate employees from the suburbs to Detroit. The DDA participated in that most recently, the DDA is using part of its revenue to support affordable housing in in the in the DDA district. So so all these things the revenue that the DDA collects are being used for economic development that we all believe and think the numbers show are increasing the value of properties with within the district which which are are captured. So, just wanted to mention that and through the chair in November, Durham mentioned the DDA bonds that we all issued are not projected to mature until 2048. So we do have an existing existing dat I just wanted to mention that. Maybe the only other thing I'd mentioned is just because it might not be apparent to people. The city's library really is connected to the city in many ways. The library's employees participate in our general Retirement System. The library uses the city's oracle system do its payables, it uses the city system do its payroll and the city is the one that's collecting the millage as we collect all villages for other taxing jurisdictions for them, so there are substantial services that the city is rendering to the library in terms of both collecting the revenue and then also using our systems to make disbursements. So with that, I think that's the only comments I wanted. To make based on what I've heard today. Okay,
thank you all very much. And I had intended to allow for those individuals who were not given presentations to give comment but has been noted. We are very deep in the agenda and we are we have to be out of here by one o'clock for the next committee. So for those who have anything to add, they're very well made me an opportunity for you to speak again. But I can't make that promise at this moment because we have now about to go to council colleagues who may have any questions concerns, comments regarding this particular item and we'll start with member Vice Chair Thank you,
Mr. Chair. And again, I won't belabor the point. I know we went over that first I think and want to thank LPD as well for just a great comprehensive report. I guess my concern is is a few that have been noted one we have not had our revenue estimating conference as of yet. So to take action on any item right now relative to that, I believe would be premature to we have not heard or nor has the government or the governor pardon me. Even laid out her idea for what the budget is going to be in the state of Michigan has spoken about the changes that have to come, although we may make decisions are going to have to happen on a statutory level. And so I think it would be premature to even vote on those resolutions or address them at that time not knowing what the implications are going to be before we have a complete idea of what our economic forecast is going to be. That's one two, without possibly having discussions with the legislature on what their intent is and or what the governor's intent is. I know we talk about and it's undeniable. Our libraries are barely hanging on. You know, I have one in my district. And although operational, they need help, and there have been many that have closed throughout the years, but I do believe there is a way with a newer legislature that maybe through partnership that other solutions can be created to ensure that our libraries get adequate funding. And I know sometimes there's a misnomer that the city of Detroit has a big bucket of money all the time, even with the ARPA funding. But when we talk about sustainability, you know, we do have to have those tough conversations of what that looks like for the libraries here, what our roles are, but I just think at this time, it'd be premature to push for even resolutions. And we don't know what that forecast is going to be. We don't know what the state's intent is to ensure that we are able to do some things operationally down here. So wanted to make that comment. Not making a motion yet as we have not reached that line item. But just wanted to put that on everyone's mind. I believe everybody here wants to see our library succeed. But there are a lot of things wrapped up in there. There's a lot of action that has to be taken. And I can tell you as a former legislator, and this is all due respect to local municipalities and government, governments because I started rolling now, often when you push resolutions up to the state level, it is just to urge a body of government to take action on something that does not mean that that is going to happen. That does not mean that even most of the representatives will hear that resolution. I can tell you from experience sitting on the floor there read into the record after everybody has left the floor. So I think it would be disingenuous to even push for for resolution up to our governing body painting or or saying that we haven't even had a discussion with them of what we would like to see. So I did want to articulate that. And I appreciate your indulgence, Mr. Chair. Thank you.
Thank you, member Johnson. Any questions, concerns, comments?
Thank you Mr. Chair. I'm not really sure where to start. This has been a lot of information to take in. I will say that I think we all understand where the DDA gets its authority to hear Mr. Coralee talk about the bonds that were issued by the DDA that now essentially, if we were to move forward with this resolution, it would be more symbolic in nature than anything. But I also think that it could send a message if we were to move it forward. And now it sounds like the DDA would really need to make a decision. We've been creative in identifying forgivable loans for development projects. And when we look at the $4 million on average for the Detroit Public Library, I'm not sure what that number is for the schools. But I would venture to think that is a drop in the bucket. There was one gentleman who said that the DDA captures $50 million, I believe, and so just really interested in getting a better understanding of the DDA is perspective of providing some relief to the Detroit Public Library because my colleagues will remember last year during budget season, I was pushing trying to help support one of the branches in in my district that is closed there has been closed, and it really does not need a lot of attention. But it just needs some of us to just show that we support the library as a system and that we recognize the value that it has to our residents. We can say that but I think the way to show it is to identify some creative ways to provide support to make sure that the libraries can remain open. I always point out my district because it is one ironically enough that does not have a an open and active rec center. It does not have an active or open community center. And still we have libraries in district four that are closed. So if there is some level of support that's supposed to come from somewhere I'd love to see where it's coming from. That this is all to me. It continues to perpetuate the interest, the support the endorsement of development downtown, and not in our neighborhoods. And so I'm hopeful that we can come to some resolution. I'm not exactly sure what that's going to be but certainly looking forward to continuing the conversation. Thank you, Mr. Chair.
Thank you. And just for me, you know, I there's no deadline, no rush to approve this today. This conversation, this discussion that we have been having. It has been very informative. The documents were extremely informative for me to read through. But there's it sounds like some additional conversations that need to be had with other entities outside of those who we have present today. To see if you know again, how do we go just beyond even a resolution? How do we fix this issue? How do we address the issue in its entirety? And you know, again, has been stated the resolution as as as currently drafted. does pretty much all that we can do with this table here and clearly again, that's just our intent, and not necessarily the actual movement that is necessary to make it happen if in fact again, this body is in support. The full body is in support of moving forward with a recommend recommending the exemption for DPS CD as well as DPL. And then to that point, this resolution would do something different to both of those entities. And we want to make sure that in the event that again, if it's approved that it maximizes the opportunity for both of these entities that are extremely important to our children, our city and our future as well. And so, colleagues I am again thankful for you allowing this discussion to take place we very well may have an additional conversation publicly here. But remember, Vice Chair by you serving in the state. I will follow your lead on how we handle this item with respect to our state legislature and will allow those conversations to take place before I push for a vote on this particular item in this committee. It's always better to have as you know, get to the discussion, get it to the point where we need it to be in the committee before we send it out to the full body and then it ends up being postponed pushed back pushed back and maybe jump back to the committee as well. So sounds like we still have some just a bit of work to do and conversations to be had. And I'm looking forward to those conversations definitely want to see impact. It's one thing we look at what the law allows for. We've heard that but it's another thing to look at what how we can be creative, working with the current laws that are in place, but then also seeing what we have to do to amend those laws so that you know at the end of the day, we still have development going in the city of Detroit but we also ensure that we maximize the revenue opportunity for operations for the DPL and dpscd. So with that being said, colleagues, is there a motion let's say a motion to adjourn. Moved Is there a motion for line item 7.8. We are in discussion right now for the actual discussion, but is there motion to discuss and move?
I moved to 7.8 as well as discussed line item 7.8.
As a motion to discuss line item 7.8. Member Vice Chair.
Thank you, Mr. Chair and as articulated before and thank you for your great comments and your indulgence and even bringing this before our body. I know it's been a discussion for a very long time we've had members come down for public comment. And so it needs needs more work, I believe before we decide just as you state it, and there are discussions that can happen in the very near future relative to what is happening in our state. We're in a new era, so to speak, just left Lansing last night. So there are some things that are happening that are moving that I believe need to be attended to as a first so with that, Mr. Chairman, I know I know you normally don't like to do that because we run a tight ship on our schedule. I would like to make a motion to bring back line item 7.8 To be determined.
Remember I second Can we at least give it a give it a month before we bring back at least allow those conversations to
take place that that is that is fine with me noting that the governor should be presenting our budget and in that in the next couple of weeks. So I move I amend my motion I move that we bring back line item 7.8 and one month
there was a motion to bring back line item 7.8 and one month slash four weeks. Any objection? Seeing on that action shall be taken I just want to make it clear on the record that we're not just kicking the can down the road. We're not just not trying to make a decision. We want to make sure that the decision that we make actually addresses the issue and not just putting a bandaid on it and checks the box that says we did something but that something doesn't it doesn't cure the ailment, the ailment. Thank you again, thank you all who participated in today's presentation. We really appreciate it and look forward to the continued discussion. All right. We shall now call back to order the 1035 public hearing with the parties who are participating please queue up. The 1035 public hearing is establishing a commercial rehabilitation certificate on behalf of AC Detroit holdings LLC in the area of 3448. Woodward Ave, Detroit, Michigan in accordance with public act 210 of 2005 with the parties who are participating. When you see yourself on the screen, please introduce yourself for the record.
Good morning, Mr. Chair, Nevin showcar with the Detroit economic growth Corporation one
morning again, Mr. Chair Derek had LPD
Good morning, sir. Good morning,
James VanDyke from the Roxbury group representing a trade holdings LLC. Morning.
Good morning, David de Rita also from the Roxbury group and also representing AC Detroit.
More, I believe we may have one additional speaker will allow that person to introduce themselves when they arrive
who would like to begin to that
through the Chair, I guess I'll defer to Mr. showcar.
Mr. Chair, I believe we've been joined by Justice cook.
Mr. Cook, we can now Good morning please introduce yourself for the record.
Justice cook HRD.
Morning, who would like to begin? Our thank you to the chair and AC Detroit holdings LLC is requesting a commercial rehabilitation exemption certificate and that area of 3448 West Avenue ditch
Mr. Cook
you might want to turn your camera off that may assist you.
You have frozen up on our end
scope are you there?
Hi while we allow Mr. Cook to get his system back up and going Miss showcar if you can proceed with your portion please.
Certainly Mr. Chair and good morning again. So as you've already heard, the AC hotel project is before you today it's led by the Roxbury group, David to Rita and James Van Dyck are present. This is a commercial rehabilitation exemption certificate for the new construction of 154 key hotel. There was a broad based district that was created back in 2016, June of 2016 to support multiple new developments within the Midtown brush Park area. And so this developer is before you today with the final step and the only incentive or approval that they're that they're seeking, which is the PHQ 10 certificate. And so with that, Mr. Chair, I'd like to share my screen. You may thank you so let's talk about the commercial Rehabilitation Act. So this provides a reduction on the future increase in property taxes as a result of the construction of new commercial structures. So it essentially acts as a property tax coupon and it can last for as long as 10 years. And so let's talk a little bit about the way that it works. So so what you can see here is this is a graph that shows 15 years so Year Zero is where we are today, roughly $4,000 in taxes are currently being paid for this property and upon completion of the improvements and so there's roughly $50 million that will be spent to construct this new hotel. The taxes with with the tax abatement applied, will jump to almost $140,000 roughly $138,000 and then add upon expiration of that tax incentive, the total the total taxes will be over $500,000 in year 11. As you can see, so let's, let's also talk about where the project is. So the project is located at the corner of Mac and Woodward, close to the Whole Foods Market. And what is there today so this is a sort of like an aerial view of the site. The site is in blue. It's in the blue kind of rectangle that's there in the center of the screen. What you can see next to it is the bond Stell theater and directly behind it is the roughly 500 space 600 space parking deck that was constructed recently. And so what will be created is, as I mentioned, sorry, a 10 storey 153 Key hotel with a glass conservative conservatory that's in the middle of kind of between the bond Estelle Theatre and the hotel. And so the developer has secured all of the necessary approvals that they would need in order to start construction on this hotel in the second quarter of this year. So as I mentioned, this is sort of the final step in the process for them. And so what this development specifically will bring is a significant number of new jobs. So the developer has committed to creating 35 full time jobs. They've signed an agreement with Creo that will enforce this tax abatement agreement and and also ensure that these 35 employees are hired. Additionally, the developer expects to create 100 temporary construction jobs and and all of these jobs they are committed to working with Detroit at work. And so the developer, I think is prepared to speak more on how they expect to hire Detroiters and and also speak to their commitments. of hiring Detroiters in the past for other projects that they've worked on in Detroit. And so with that, I kind of want to talk about two things that, you know, that we look at here at the DGC. So the first is the net benefits, so no tax incentive. Is ever recommended for approval without a net benefit to the city of Detroit. And so we look at in this case, this is a 10 year tax abatement that we're recommending. So over the next 10 years, the city of Detroit is $1.2 million better off as a result of this development with the abatement being factored in a large reason for that is because of the large increase in income taxes that are being collected and and going directly into the city's general fund. Second, when we look at a project requesting an abatement, we look at the returns when we go through, you know, the cash flow, the pro forma the financials, the construction costs, and we sort of determine, does the does the project first of all even need a tax incentive? And second of all, could it do with a shorter tax incentive? Less than, you know, the full 10 years could it be a six year abatement an eight year abatement, but in this case upon the review, the full 10 year tax abatement term is necessary and the reason for it is because without it, the project would not be able to get a mortgage from the bank. Simply there wouldn't be enough money left over at the end of the month for the bank to feel comfortable getting a payment. And so with that, I think the developer would like to say a few words and share some more details specifically on on their their hiring and other sort of project related details. So thank you, Mr. Chair.
Thank you. The guy proceed.
Thank you, Mr. Chairman. Thank you. And I realize you have a very packed agenda so I will not belabor the remarks. I'd like to just to say a few words of context to hopefully address for members of the committee and council members obviously that the long road and collaborative road we've we've led with the DGC and the city of Detroit to this moment. The the the AC Detroit was originally conceived of and launched as a project we very much intended to get in the ground in the early part of 2020. And then obviously, we all know what happened then, what I guess I wanted to just do is give you a perspective that hopefully rounds out a little bit of what everyone was just saying as it relates to hospitality. And as it relates to our investments in hospitality and in the city of Detroit. My colleague James Van Dyck is gonna talk a bit about the employment benefits of it. But we all know the importance of adding more keys to our marketplace so that Detroit can continue to compete and grow. We are an under hotel market. And I can tell you that the last three years hasn't made it any easier to add those keys quite to the contrary, it is an Frank miracle that I have to put at the at the doorstep bubble, a lot of people Marriott International Of course, our development team, our construction team, our lenders and our investors for sticking with this project because it really will be a phenomenal addition to our portfolio of Marriott properties in Detroit and help the city continue to grow an industry that is frankly a homegrown industry and an industry that that adds jobs and, and we're really frankly honored to have the opportunity to stand before you saying that with all seriousness. We want to get this thing in the ground in the next couple of months. And so I'm going to just be perfectly happy to answer any specific questions about this important project. But I'm going to ask James Van Dijk to talk just a little bit about the employment aspects. Thank you, David.
If it pleases the chair may continue. You may proceed. Thank you, Mr. Chairman and council members. Yeah, I just you know, we haven't been before you for a few years, given the pandemic but you know, whenever we are before you and as recently with our hotel projects, both the element at the Metropolitan building and the aloft at the David Whitney building. We love to go back and pull out the the employment metrics that we've been able to achieve at those two operating businesses. Just pulled this morning from the general manager that in those two hotels, we've been able to create about 100 jobs total between the two operations and of those 100 jobs. 65% are filled by Detroit residents. And it just in we've, it's always been a priority of ours, but it happens quite naturally in the hospitality industry. It's an industry that a lot of time hires people with no experience it then you know, with each one of these projects, hundreds of 1000s of dollars is spent on on training to get the particular person ready for whatever what role he or she is going to take in the operation. And then it's also a it's really a career building industry. It's an industry where most if you ask most managers of a hotel, they started washing dishes or they started behind the front desk, taking, you know, taking reservations and so it's just a really wonderful industry, I think for the trait to have focused on it. is a growing industry here as we know. And and I think the track record of our other properties kind of speaks for itself as it relates to the benefit it has for the community. here and I will say that this project is again not unlike the other ones we've have a meeting scheduled with with Dana Williams of Detroit at work and and we plan to again employ some of the same practices that that we put into use for the other two properties in getting in and getting the in this this particular hotel staffed up in the beginning of 2024 because it'll take us about 15 months to actually complete the project. So yeah, just just to underscore the point that that both David and Nevin were making, you know, this is definitely a but for test that we are at the finish line on a very kind of, you know, long pre development process, trying to keep lenders and investors at the table through a pandemic, and now through the inflationary environment that we find ourselves in. Just just by quick quick example. Our construction costs now are around $370 per square foot that is 20 20% higher than than they were before the pandemic. And it's about 100% higher than the cost that we spend on the David Whitney building. So we continue to you know, construction costs continue to be a headwind for development here. But but, you know, we're confident that you know, because of the demand for hospitality, that you know, we're confident to move forward with the project but But absolutely, you know, is Nevin pointed on need this abatement to kind of just make the make the numbers pencil to get on the ground?
Thank you. All right, Mr. Hey,
floors, your sir.
Thank you very much, Mr. Chair.
This particular project is incentivized to the commercial Rehabilitation Act public act 210 or 2005, which is a tax incentive for the rehabilitation of commercial property. For the primary use of a commercial business or multifamily residential facility. The property must be located within an established commercial rehabilitation district, and exemptions are approved for a term of one to 10 years as determined by the local unit of government. The property taxes are based upon the prior year's taxable pay, as indicated the project developer and owner of the property well, the project developer this property at 3448 is AC Detroit holdings LLC. They are now seeking the approval day to 10 certificate. The property consists of a vacant commercial property, parking lot with point 364 acres of land the developer plans to construct a 153 to 154 Hotel, with food and beverage service consisting of 100,153 square feet. The development is expected to increase the commercial activity in the area prevent loss of employment, revitalize the urban area and increase the number of visitors and residents to the city. The land will remain owned by SEC Woodward Elliott LLC, and is subject to a ground lease to AC Detroit LLC. AC Detroit LLC will construct and own a new facility and the applicant is currently currently in the process of amending the property address to 10 Elliot. And as Mr. Schumacher has indicated, the DGC is recommending a full term 10 year Commercial rehabilitation certificate.
The estimated total capital investment for this project is $49.7 million. It's also estimated that the completed project will create 35 full time jobs and 100 temporary construction jobs. The total value of this 10 year Commercial rehabilitation tech savings is estimated to be $3,958,744 Based on the investment in jobs this project is estimated to provide the city Detroit and their benefit of $1,248,396 and all of the impacted taxing units a net benefit of $2,685,047 over the 10 years of the commercial rehabilitation and abatement.
Additionally,
right now, the current taxes on this property, as it exists on an annual basis are $4,058 now the new annual taxes during incentive period will increase to $137,942 on an annual basis. But finally, after the incentive expires, the taxes will rise to $506,711 on an annual basis.
Finally,
the statute provides the council the right to revoke the certificate, any set of circumstances and the Act allows the city to the legislative body of the qualified local unit of government may by resolution revoke the commercial rehabilitation exemption certificate of facility if it finds that the completion of the rehabilitation of the qualified facility has not occurred with the timeframe authorized by the legislative body, any exemption certificate or a duly authorized extension of that time, or the holder of the qualified facility has not proceeded in good faith with the operation of the qualified facility in a manner consistent with the purposes of the Act and the absence of circumstances that are beyond the control of the holder of the exemption certificate. And Mr. Chair that completes my report and I thank you.
Thank you so much Mr. Haire. Colleagues questions concerns, comments, starting with me last year.
Thank you, Mr. Chair. And let me say I'm very supportive of this project. I think it's a good thing. building some hotels down there, visited some AC hotels on my time they're a little bit more modern and I think brings a good look down there. A couple of questions that I did have their own concerns. What are what what does it look like relative to parking in that area? We always raise that issue. From the rendering. I don't see a parking structure I could be mistaken. What are we what are ideas around parking
and you want to take that
if I may, Mr. Chairman. So the parking deck that Mr. showcar had referenced in the in the in the aerial photograph was actually built by a neighboring developer happens to be actually the landlord that owns even even our site and it was built planning for this project. So all of our spaces will be inside that parking deck. And and in it's been planned for and so there'll be no pressure on parking in the neighborhood.
Three Mr. Chair Just a follow up. What is parking look like? Is this going to be? What parking be free for folks who frequent the hotel or is there going to be a charge for parking in that lot? What does that look like?
Yeah, we'll have to work out the final details. But parking won't be free. You know, well, overnight guests will have the opportunity to either valet at our building or self Park. But then, but then people just coming to the building to visit for instance, one of our food and beverage outlets would also have the opportunity to park there as well, but it wouldn't be free. I'm not sure exactly what the daily rate would is going to be a couple of years from now, but there'll be a charge
cord. It's also worth noting through the chair to the Vice Chair. It's also worth noting that another benefit of hospitality as a development use is generally speaking it has a lighter footprint on communities as it relates to parking. And that's simply a function of modern urban hotel travelers often offering now getting to the location by Uber or Lyft or some other method so we typically expect and can play on for roughly 50% of our guests. overnight guests will come come with a car and so it's just another I think one of the other benefits of the hospitality industry that it that it brings us activity without necessarily bringing undue undue pressure on our neighborhoods around
and I will say that you know three Mr. Chair, I will say that we generally talk about parking so much when we're dealing with affordable housing not so, so much dealing with hotels I do understand when you go to hotels there are charged about there is a charge to valet there is a charge overnight and sometimes they work that out through vouchers or however they do or motels chooses to do that. But we're just curious about that parking and that structure. What that would look like for residents I know we were talking about rates are probably going to be on average to 25 a night was obviously is a projected clientele of folks who are travelers or tourists as I can imagine. So just just was curious about that, even relative to the day the average daily rate for the hotel that I'm finding other than that, Mr. Chair, thank you.
Thank you, Mr. Vice Chair, any additional questions? Member Johnson.
Thank you, Mr. Chair. Not necessarily a question just want to state that I am typically in support of hotel projects. Having spent a decade in the hospitality and community industry. I recognize the value that it brings as it relates to jobs for Detroiters. It was indicated that, you know, there's opportunity for growth in the hospitality industry. I've seen it I've witnessed it. I do believe that there are a large number of Detroit residents that tend to work at our hotels that are in the city of Detroit. I do I am a little hesitant and just thinking about the size of the hotel though, and how much it will actually benefit the our hotel, our hotel package as a whole in the city of Detroit as it relates to attracting tourism and convention business to the city. But generally supportive because I recognize the value and the opportunities for jobs for Detroit residents. Thank you, Mr. Chair. Thank you.
Did you want any response to any of those statements? All right, thank you, Mr. Vice Chair,
Mr. Gerron and not to prolong that we've got a very lengthy agenda. But but to remember, Johnson's point, she brought up something that I was thinking as well, relative to the questions. I know we were talking about 65% of the folks in the workforce that would be there from Detroit. Just a question, you know, and I know you mentioned Detroit at work, maybe playing some parking and helping get folks employed but have you thought about reaching out to organizations like unite hear that generally it's a union obviously, but they employ pretty much all the members belong to a lot of our hotels and industries and casinos down here. Have we thought about that relative to employment you know, saying hey, listen, we're gonna be opening up this hotel down here. Let's just, you know, we would like everyone to know that. Maybe that helps increase the number of folks who apply or try to work at that hotel.
Remember those chair you are literally in my head because those were the questions that I was going to ask. I'm sorry, Mr. Chair. It's all good. No, I mean, another question I would have is when we start talk when we talk about the 65% of those employees, how many of those are post construction, pre construction versus post construction? Those are the long term potential jobs and opportunity for advancement.
But, Mr. Chairman, actually, it's a great distinction to make because I was trying to make it before so I want to make sure it's pointed out that all of those jobs although 100 jobs I spoke about, relating to the other two properties are post construction, those are permanent jobs, those don't go away. And so that's really the point that this is not just a temporary job, and those are great too, as it relates to construction, but these are really careers that are getting started here in the city of Detroit. And so and so that number since we've opened those two properties has only grown year over year. As you might imagine. And so and then that you know, touching on the the other question from council member dear Hall, we have met with Unite Here actually, and and we are open to it to any avenue to attract workers to to these properties, as I'm sure you've heard, in other testimony. Finding workers, especially over the last few years has been a huge challenge. And we've actually had to limit the hours of some of our establishments because we don't have enough qualified workers to fill the hours. So we are open at any avenue that would that would, again, direct a worker to one of our properties. And again, just because it's just such a such kind of a good opportunity for folks in Detroit, in an industry that you know, as as as council member Johnson has underscored is growing and as a great job creator, permanent job creator.
And through you Mr. Chair, I just want to say that is great. I was already supportive of the process project but I'm glad to hear that you are even taking those additional steps that are said to be honest through some groups are not even on their mind when they build some of these developments relative to housing, hotels, they may not reach out to unions or anyone else to kind of bring or connect folks to the hospitality industry and connect those jobs. So I really appreciate that. I would like to let you know that. So other than that, I'm fine. Thank you, Mr. Chair.
Thank you. We are running again a bit long in the agenda but just a quick question I have regarding the 3% excise tax. Does this particular development. Is it subjected to a 3% excise tax and if so, is there an amount that is anticipated? I guess that would go to whoever can answer the question.
I don't specifically know the answer to that question. I don't know if the tax analysis. Mr. showcard. Was that discussed? if again, if it's if it's levied against Hospitality properties in the city, Detroit this would be no different.
But I'm not sure how that would work specifically. felguard mister here any
insight you can always ask offline but I'm just asking now while we have one together.
Mr. Chair, I don't have the answer for that question. I can follow up with you via email.
Okay. Yes.
I'll follow up sir.
Thank you. We shall now go to public comment is there anyone from the public who would like to speak on this particular item? This is the 10 to 35 public hearing and line item number six. Please raise your hand now. If you'd like to speak on the 1035 public hearing, its presentation just review witnessed watched. This is line item six. Please raise your hand now. going once going twice. Going three times. Collection of public comments for the 1035 No one here in this committee of the whole, how many callers do we have and who do we have first?
Mr. Chair, we have three callers via zoom beginning with Miss Karen Winston.
All right. We're going to give everyone today one minute. Public comments for public hearings. We can get the clock up
Karen West and the floor is yours. You have one minute.
Yes. Hello. Hello. Yeah.
I didn't. I didn't catch the name of this new development where we're talking about right now. And what type of do I hear Him say entertainment? Did I hear Him say something about entertainment, but no, or just a hotel and parking. I was concerned about the parking as well. Will there be ballet, you know, excuse me. We're gonna of course we're gonna make it a handicap accessible, all the entrances and I just want to hear if we have anything planned for that and the rooms as well as the access to the location. What about jobs for any people that may have disabilities have anything in mind about that? Thanks a lot.
Thank you.
Next caller please.
next caller is over with.
Oh, with one minute the floor is yours regarding the 1035 public hearing.
Well, I echo the statements of miss you see just spoken questions that are those very pressing, but you raise one, James etait you raise one about the excise tax. I heard you know the eloquent speak about what this project entails and was going forward in a permanent job creations, but the excise tax and the amount of money to be anticipated to be generated will be certainly misters your core and listen. Yeah, but most definitely have to consider going through with this project, but they both seem stumped. When you ask that question. I'm Mr. Van Dyke. I can understand you have not actually been up to speed on that. But those two individuals, surely. I mean, I mean, surely should have considered that considering a proposal development of this magnitude and what it's supposed to be bringing to the city wouldn't an excise tax and that 3% capture v sub that would be prominent in their discussions.
Just pass me.
Thank you. Next caller please.
next and final caller is Miss Carol Hughes.
Carol Hughes. Thank you for joining us. You have one minute regarding this the line item six to 1035. public hearing.
Carolyn Hughes May I be heard? Yes, ma'am. Thank you, council members and panel. I just had a question about the prior experience that gentlemen have had in the city of Detroit. Could you please give us like the the average salary of the people that you're hiring, what is the average salary that they're making? And the minimum salary that they make? So let's go maximum salary, minimum salary or average salary, but could you tell us something about the structure of how these jobs will be paid? Thank you.
Thank you. And I believe that takes us to the end of our public comment. So to the panelists, those who are participating, we had a couple of questions there give you an opportunity to briefly respond to them. I believe one of the responses is that one of the questions was what's the name of this facility?
So we'll start there. Yeah,
this will be the AC Marriott
Detroit Hotel. Okay.
You all can just answer the questions that we're gonna ask. Sorry.
Go ahead. God, James. Yeah. So, you know, entertainment, per se. I think that was one of the questions. This is this 154 Key hotel. It will be ADA accessible. Both the lobby areas and, and the rooms are there'll be a number of rooms that are handicap accessible. And no entertainment. There is a lobby bar plan. For the first floor, but it's just a serve as kind of a lobby bar. The wage rates, as you might imagine, have gone up quite a bit in the last couple of years. I'm just looking at the projection. For this hotel. I'm kind of the entry level positions here are going to start at 17 or $18 an hour and it goes all the way through the general manager making $130,000 a year so so you know, again, talking about there are opportunities that every kind of wage scale and opportunities to move within you know, the wage scales. Even at one facility. This is really you know, we talked about every time we open a hotel, it's really starting a new business, as well as a
construction project.
Thank you so much. Colleagues. We've heard the q&a we had the presentation, public comment as well. Is there a motion on the floor? Yes,
Mr. Chair, I move that we take line item six and send to formal for a recommendation with a recommendation excuse me to approve.
Thank you, as a motion to send line item six to form a with a recommendation to approve any objections? Seeing none, that action shall be taken. Thank you. This now closes out our 1035 public hearing. I'm going to drink it back. Very welcome. We're gonna jump back into the bulk of the agenda and let's go to line item 7.3 as well as this eight point 12 where we can take those two together. Please.
So move the move for discussion Mr. Move to
discuss line items 7.3 and eight point 12. Both of these items are regarding the request for tiny homes, shelter colleagues, this item has been before us. Not sure if you if you have any additional questions concerns regarding these particular items. line item 7.3 again and line item eight point 12. In discussion and or
approval. Mr. Chair There we go. Mr. Gula. Good afternoon, Mr. Chair. Yeah, critical lock LPD staff. These two line items are kind of go together and it's a rezoning on the east side. And this is to consider setting the hearing next Tuesday. I have a few slides if you want me to do a quick overview of the two requests or I can try to answer any questions.
I think we'll go to q&a in less colleagues have any objection to that? Okay, Colleagues, any questions, concerns comments regarding line item eight point 12 Or line item 7.3.
Member Johnson.
Thank you, Mr. Chair. I just wanted to ask Mr. Gulak. If he could maybe speak to one of the general public comments I believe that was relative to a kitchen and I believe it was a shower or something to that effect. I know that that CPC I believe is requiring certain things within the quote unquote shelters or in the tiny homes. But can you elaborate on that I don't believe that there's been any discussion about the other facility that is part of this quote unquote campus?
Yes, through the chair up,
I can try to give a quick background and then I'll try to answer the question more directly. This is a Detroit based developer wants to provide services to the homeless. They there's a large church, the location they want to they bought the church they want to renovate it to provide support services and then the tiny home shelter would be just next to the church on Vic currently on vacant land. they're proposing, I believe 12 tiny home shelters. And we and we can show the site plan at the public hearing of course. Also next to the tiny homes would be a community building for the residents. And that would that would have partly be occupied by a caretaker who would be there 24/7 And next to the caretaker quarters would be a common kitchen area and restroom facilities. But also next to the tiny homes. they're proposing a bathroom facility next to the tiny homes. That was when the commission had their public hearing. They debated this issue as well and the Commission recommended the part of the rezoning mandate that each of the tiny homes have their own sink and toilet facility. So that's one recommendation that the Council could consider at the public hearing. So the developer is trying to find funding, it will add a lot of cost to the proposals so they're trying to find funding now to put toilet facilities and sink in each of the tiny homes. But if if that's not required by council then they would propose a restroom facility adjacent to the tiny home village and then one within the common area where they have the kitchen area so the commissioners did recommend that each unit have a toilet facility at this time but that's up for council to decide. When you review this proposal, you can obviously say yes, no or yes with conditions and the Commission recommended, I think eight conditions and the council can review those, you know, when you have the public hearing. Thank you. Thank you Mr. Chair.
Thank you. I absolutely support that recommendation by the City Planning Commission to ensure they have that the plumbing inside of that those those tiny homes and one council member as far as it relates to the turnover, if you will. I thought I read something that they indicated that folks can stay in the tiny homes in as long as they would like is that. Am I correct in reading that? Because typically when we talk about shelters, there's at least some type of movement that takes place, which will allow for someone else who's in need to to utilize those services. Am I reading that incorrectly? For whoever has the information
mixture? I can try to answer that. Um, yeah, as it is. I want to clarify the developers in terms of national debate and local debate, some people don't like the tiny home shelter some do the developers trying to provide this as an option for the homeless who refuse or can't go into congregate temporary shelters. So they're, they're proposing to provide staff and a support system for the residents and and you're correct. I believe the residents could stay there as long as needed until they're ready to find permanent housing. But I think they haven't. And based on their national research, they have an you know, an average stay of maybe six months, but you're right, they would work with the residents to get the support. They need to be able to find permanent housing, but there's not a ticking clock. I don't think the residents so they would work with them to try to get them to be self sufficient and ready to go to permanent
housing. Okay. And then the last thing I have is, briefly, the support from the community. Has there been any engagement at this point? If so, what does that look like? And not just those who support but Have there been some who do not support who are in opposition. And so were their concerns.
Mr. I'll try to answer that. Yeah. The the developer has been working on this for a while they did have a zoom community meeting last January. The Commission usually strongly encourages that and they had quite a bit of turnout. This area, it was kind of mixed I think this area is a lot of vacant land a lot of abandonment and so some folks on that Zoom call and at the end the Commission's had two public hearings on this as well because we just kind of the plan has been modified over time. So the neighborhood meeting and the public hearings, you know, some residents here and say yes, we welcome this. There's a lot of vacant land. We need more people in the neighborhood. Some folks who don't live adjacent or live in the area said, we support this but good luck because this is a very difficult population to deal with. You know, want to make sure they have this group has the skills to work with this population. So there hasn't been a lot of strong opposition based on Commission's public hearings, but there has been questioned if so, so some groups and they read welcome development. And then others question you know, do you have the skills to work with this
population? Okay, thank you,
colleagues. Is there a motion for line items 7.3 as well as line item eight point 12.
Thank you, Mr. Chair. I first move that we receive a file line item 7.3
as a motion to receive and file line item 7.3. Any objection? See none that action shall be taken.
And next Mr. Chair, I move for line item eight point 12 To send a formal for the introduction and setting of a public hearing.
There's a motion.
Mr. TAI,
I'm sorry. Again, consistent with Mr. gouache presentation, I believe both items again each represent separate ordinances for the two components. So both actually need to be moved, would need to be moved to form off my introduction.
I don't see a ordinates attached to 7.3.
If I can defer to Mr. Coolock.
To share I would have to both should have reports and ordinances and we can double check to make sure that the clerk has those as part of the applications.
I'll shift gears to Mr. Singletary, who manages this committee extremely well, sir.
Through the Chair. My conversations with Mr. goudelock last week, he let me know that it was accidentally missed that the ordinance was not attached to line item. Pardon me 7.3 7.3. Thank you, Mr. Chair. So in doing so it was brought back this week with the attached ordinance. Okay.
There we go member vice chair so both of them have ordinances attached to them, but also reports as well.
Thank you Mr. Chair, so I revoked my previous motion and moved to sin line item 7.3. To formal for the introduction. I know Dr. Powers I didn't we didn't reconsider.
That's correct. And we don't have revoke. Pardon
my language Dr. Powers I knew she was going to give me today.
I moved to reconsider the vote for line item 7.3. As a motion to reconsider the vote for line item 7.3. Any objection? That action shall be taken. Is there a motion for line item 7.3.
Thank you Mr. Chair. I move that we take line item 7.3. It has to fail. That's right.
We got to rewrite you have to vote on the receiving file and make it fail.
My apologies, colleagues, is there a motion to receive and file the report for line item 7.3. So moved. Objection. There's a motion any objections? To Extra Extra objection? Will the clerk so know that there's been rejection from all three members of the committee. So now? Thank you. All right, that item fails. Colleague Is there a motion for line item 7.3?
Yes, sir. Mr. Chair, I moved to take line item 7.3 and send to formal for the introduction and setting of a public hearing.
As a motion to send line item 7.3 to formal to set a to introduce and to set a public hearing. Any objection? See none those actions shall be taken. There's also a report there and line item 7.3 Though
moved to sin the report I'm sorry, I think receiving file. We now can we receive a file that report.
You can receive a file that report part of this line item? Yes, I believe because it was a twofer. And this TCC has something else.
Mr. Chair, Mr. Tat,
certainly, while as the parliamentarian has indicated, you can customarily the report has sort of been left live chatting along with the ordinance as It's also recommended as it substantiates the recommendation from the commission. So that has not necessarily been a practice but as as the parliamentarian said you could but generally it just tracks with the ordinance.
So my apologies from leading us down that road. Vice Chair Thank you,
Mr. Chair. I don't really blame you. But so because my question is if we are going to send this to formal, there was really no need to or we're going to receive a file 7.3 There was no need to reconsider. So I guess my question is, are we sending now are we going to receive and file this is that the recommendation from CPC or the recommendation is to send this to formal along with the ordinance that
currently, the action that you have taken I believe is accurate. You did not make a distinction with regard to report and ordinance when the second motion was made to send a formal for introduction. That would again would be the standard practice and yes, that is what we are recommending that you just said that you would send the matter too formal for introduction in the setting of a public
hearing. No need
to separate the report from the ordinance.
Thank you. I believe we just saw now we're on eight point 12 now so I moved to send line item eight point 12 to formal for the introduction and setting a public hearing.
There's a motion to send line item eight point 12 to formal just for introduction and setting of a public hearing any objection? Seeing none, those actions shall be taken. Thank you colleagues. Let me 7.5 status of council president pro tem James tasted many memorandum relative to employment data for tax abatement approved projects. A college is there a motion to bring this line item back in four weeks. So once I reviewed it had a few more questions regarding I think it's gonna take some more time to get those answers. Thank you. There's a motion to bring back line item 7.5 and four weeks seeing objections that action shall be taken on so thank those who helped put together this information in line item 7.5 But no 7.6 status with councilmember Angela Whitfield Callaway submitting memorandum relative to property inventory. We did have an opportunity to speak to member Callaway his office and they are requesting a receiving file is there a motion so moved as a motion to receive and file line item 7.6 See no objections. That action shall be taken. But under 7.7 status of council member Angela which feel Callaway so many memorandum relative to statement on developer accountability and enforcement. We had an opportunity to speak with member Callaway 's office and they requested a one week bring back on this item colleagues. Is there a motion to
move to bring back line item 7.7 And one week
there was a motion to bring back line item 7.7 In one week seeing no objections that action shall be taken by them. 7.8 status of legislative policy division. Don't touch that one. All right, let's talk 7.9 And no 7.9 status of Council President Mary Sheffield's admitting memorandum relative to community lot endorsement. We did have an opportunity to speak to council president's office and they are requesting to receive and file on this item colleagues.
Is there a motion move the receiving file line item 7.9.
There's a motion to receive and file line item 7.9. Seeing no objections that action shall be taken. Not no seven point 10 status Planning and Development Department submitting resolution authorization for property sale it's 63556361636563696421 and 6427 Theodore we did have an opportunity to speak with HR D and they are requesting for this line item to be removed from the agenda colleagues is their Motion
moved to remove line item seven point 10 from today's agenda
as a motion to remove line item seven point 10 from the agenda. See no objections. That action shall be taken. line item seven point 11 status of Council President Mary Sheffield's amending memorandum relative to resolution urging the adoption of local rent control are awaiting a response from Council president's office on this particular item. So we want to bring this line item back in one week to allow for that to take place. calyx Is there a motion
move to bring back line item seven point 11 And one week there
was a motion to bring back line item seven point 11 And one week seeing no objections that action shall be taken. Not item seven point 12 status of council members Scott Benson submitting memorandum relative to zoning ordinance text amendment hookah lounges. We did have an opportunity to speak with parties who are helping assist with this particular item. It has been here for some time, but they are requesting a four week bring back on this item colleagues. Is there a motion to bring back line item seven point 12 and four weeks there's a motion to bring back line item seven point 12 to bring back step line and some point 12 In four weeks. See no objections. That action shall be taken on to new business office of contracting and procurement conflicts if we can please take line items 8.1 8.3 8.7 8.8 and 8.9. together all of these items are regarding the bridging neighborhoods program. Is there a motion to discuss and or approved? Thank you, Mr. Move to discuss as a motion to discuss member Vice Chair.
I don't have any further questions. I have obviously reviewed these and we've had many of them obviously come through this committee. I don't know if any other members have questions. If not I'm ready to proceed with the motion.
I've seen this these items and review them had no questions deadline answered earlier.
So with that, Mr. Chair I move that we take on items 8.1 8.3 8.7 8.8 And I believe it was 8.9 and send to formal with the recommendation to approve.
Thank you there's a motion to send line items 8.1 8.3 8.7 8.8 and 8.9 to formal with a recommendation to approve any objection? say none those actions shall be taken by them 8.2 drop down. This submitting resolution authorization for contract number 6004055 dash a one this is 100% arpa funding to provide an amendment to the scope for eviction protection canvassing services. Comments we did have an opportunity to speak with the Office of contracting pyramid. They did request a one week bring back on this particular item.
Is there a motion mode to bring back one week?
Thank you. There's a motion to bring back line item 8.2 in one week. See no objections that action shall be taken. It's coming out and an 8.4 I don't know 8.4. Colleagues if you can take one and it's 8.4 and 8.6 together please. Both of these are contracts regarding services for those who are at this moment homeless. So thank you, Lana 8.4 Contract Number 6004848 100% grant funding to provide outreach and engagement services to individuals experiencing homelessness. We dropped down to 8.6 and it is contract number 6004096 dash a to 100% grant funding amendment number two to provide extension of time and increase the funds for shelter operation and support families and individuals experiencing homelessness. Is there motion again to discuss and approve. Discussion with discussion member Johnson.
Thank you Mr. Chair. Just noticing on line item 8.4. Not exactly sure if there's a request for an increase in funds.
We're going to be joining Tara Linzer as well as Richard Cole has information on these items. You see yourself on the screen please introduce yourself for the record.
Running Councilman name is Carolyn snur. I'm the homelessness solutions director in HRD.
Have you had an opportunity to hear the question if not we can have it repeat it for response
for the chair. So for 8.4 This is not an increase in funds. This is just for a regular This is the first this is the first award for this
contract.
Got it. Thank you. Thank you, Mr. Chair.
Thank you My question for Lymon 8.4 I see that it expires at the end of this year. My question is, are these ongoing contracts that we have
now I'm sorry, Lanham 8.6 That's the one I was looking at and looking at but that one expires April 30 2023. What's anticipated in terms of the this this particular function still taking place after this particular contract expires?
For the chair, so this was a shelter that was brought online what in the pandemic first started. We've kept the shelter in operation since that time, and we were originally planning on ramping down this shelter in the fall. However given given the winter months, we were able to secure funding to bring to extend the contract through the end of April. And so at this point we if the body approves this extension, we are starting the ramp down process which you'll help exit those households that are in that shelter so that they have a permanent destination to go to by the end of April. So that shelter will actually close. Okay,
thank you. Colleagues any further on 8.4 and 8.6.
Sir Mr. Chair move that we take nine items 8.4 A point since six has sent a formal with the recommendation to approve
as a motion to send line items 8.4 and 8.6 to former with the recommendation to approve seeing no objections, those actions shall be taken, but on 8.5 Submitting resolution authorizations for contract number 6004586 dash a a letter A one 100% arpa funding amendment number one to provide an increase of funds for additional roof replacements and related construction services. Colleagues, is there a motion to approve and or
discuss
Thank you Mr.
Chair. I move that we sent a formal with a recommendation to approve
as a motion to send line item 8.5 to formal with a recommendation to approve. See no objections and action shall be taken as this drop down to line item eight point 10 point 10. Platinum eight point 10 Office of Grants excuse me Office of the Chief Financial Officer Office of Development and grants submitting resolution authorization to submit grant application to the Michigan State Historic Preservation Office for fiscal year 2023. Certified local government grant is there a motion to discuss and or approve
moved to center former with a recommendation to approve line item 8.2
as a motion to stay in line on an eight point 10 to form a with a recommendation excuse me with a recommendation to approve, say no objections that action shall be taken but an eight point 11 Submitting resolution authorization 2023 2024 Community Development Block Grant neighborhood Opportunity Fund program schedule and hearing appeals notice colleagues is there a motion to discuss and or approve. Mo to discuss member Vice Chair.
This is very customary as we know our CDBG hearings will be coming up we're around budget season so pretty pretty self explanatory for this line item so I moved to send line item eight point 11 The former with the recommendation
to approve. There's a motion to send line item eight point 11 to formal with a recommendation to approve seeing no objections and action shall be taken. We have already dealt with line eight point 12 So let's go to Line an eight point 13 Submitting report and proposed ordinance to amend chapter 50 of the 2019 Detroit city code zoning by amending article 17 zoning district maps section 50 Dash 17 Dash four district map number three to revise the existing R two two family residential district zoning classification to the S D one which is a special development district small scale mixed use zoning classification for the properties commonly known as 342634323436 and 3442. Cochran Street as well as 1581 and 1589. Martin Luther King, Jr. Boulevard. Colleagues, is there a motion to approve and or to set an introduction is send a poor approval for introduction and setting a public hearing. Thank you Mr.
Chair, I moved to center former for the introduction and setting of a public hearing.
There's a motion to send line item 18 Point excuse me eight point 13 to formal for introduction and a setting of a public hearing. See no objections. That action shall be taken. Thank you. Item eight point 14 Submitting resolution authorization. This is for the revisions to the previous awards, annual HOME and CDBG. ARPA for anchor at Mariners and left field and brush and Watson colleagues is there a motion to discuss and or
approve
moved to second line item eight point 14 to formal to formal with a recommendation to approve.
There's a motion that's in line eight point 14 to form a with a recommendation to approve. See no objections. It's action that action shall be taken by item eight point 15 historic designation advisory board submitting resolution authorization for the extension of study period for the proposed Kranz Woods Sojourner Truth homes local historic district. Is there a motion to discuss and or? Thank you Mr. Chair. I've had opportunity to review this November 7 as well. So I moved to send a formal with a recommendation to approve line item eight point 15 as a motion that's in line item eight point 14 to form excuse me eight point 15 to form it with a recommendation to approve seeing no objections. That action shall be taken. line item eight point 16 Submitting resolution authorization for the transfer of 8374 homer to the Detroit Land Bank Authority as part of a bridging neighborhoods program is there a motion to discuss please?
So moved Mr. Chair.
Thank you. If we can have someone from HR D. Bridging neighborhoods explain why the request for this particular property
is through the chair. The work that we do with optional housing relocation
please introduce yourself for the record, sir.
Sorry, through the chair Rico razo director of bridging neighborhoods and through the work that we're doing with optional housing relocation with the Del Rey community, a lot of lot of our participants are looking to move to southwest Detroit. It's been really tough trying to find inventory. Over the last year, we had the opportunity to get a few RLR homes and neighborhoods that a lot of our families are looking to move to Homer st is in the spring wells, Southwest Detroit community. And so it was purchased through the city and we work primarily with land bank properties. So we are looking to move it from PDD to the Detroit land bank ownership so that we can move it in our pipeline to renovate an offer to a family in Delray.
Thank you so much. Colleagues. Is there a motion for line item eight point 16. Unless there's any additional questions? Member Johnson.
Thank you, Mr. Chair. I just briefly want to understand whether or not there is a timeframe a deadline for residents to identify whether or not they'd like to seek alternate housing.
Raza through
the chair. We currently don't have a hard deadline but I will tell you as it stands right now we have six participants that are fully eligible for home squat. So as it stands right now we have six and a lot of the inventory again that we currently have is not in the Greater Southwest Detroit area where a lot of families want to move. We're looking at inventory that may meet those needs, in addition to trying to find properties that, you know, maybe more than three bedrooms and a larger square footage of footprint of a house. So that's where we're at right now. I think we're trying to ask a lot of those questions and figure out you know, if there may be an application deadline, but as of today, we do not have one. Thank you. Thank you, Mr. Chair.
Thank you any further for line item eight point 16. Seeing none colleagues, is there a motion?
Move to take line item eight point 16 and sent to former with the recommendation to
approve the motion to send line item eight point 16 to following the recommendation to approve seeing no objections. That action shall be taken. Thank you. Item eight point 17 miscellaneous councilmember Gabriela Santiago Ramirez many memorandum relative to the status update on the properties located at 3600 and 3564. Toledo as we did have an opera colleagues is there a motion to refer this line item to be seen and bring back in two weeks so see no objections we shall refer line item eight point 17 to BC and bring it back into weeks. This action shall be taken. Thank you. line item eight point 18 And line item eight point 20. Colleagues if we can take those together please. A line item eight point 18 Submitting memorandum this is again from Council President Mary Sheffield submitting memorandum relative to the downtown excuse me Downtown Development Authority DDA report as well as line item eight point 20s Is Council President Mary Sheffield's made a memorandum relative to community lot endorsement, resolution because their motion to refer these items to legislative policy division. So there's a motion to refer both items through legislative policy division. I see no objections that action shall be taken. Correct. Is there a motion to bring back line item eight point 18 And four months following the report
request. As
we refer to it, and we're giving it four months, I'd neglected to add the four month bring back. Okay, point 18. So, as a motion to bring back line item eight point 18 in four months, seeing no objections that action shall be taken. Why don't I'm eight point 19 Council President Naresh Sheffield's submitting memorandum relative to the in column protection ordinance. Is there a motion to refer line item eight point 19 to LPD. So moved, say no objections that action shall be taken not sure how long it's going to take them to get back to us but we'll make sure we watch. line item eight point 21 Councilmember Coleman a young second submitting memorandum relative to request for information regarding affordable housing units constructed available in the number occupied by AMI for each unit. Cause Is there a motion to refer this item to HR D and bring back in two weeks so seeing no objections we shall refer line item eight point 21 to 42 HR D and bring back into weeks who all right, got us through. Thank you colleagues for this now takes us to member reports. Mr. Vice Chair.
Thank you very much, Mr. Chair. I'll just be very brief. I wanted to report obviously I had the opportunity to attend the State of the State last night to hear our address from Governor Whitmer. Looking forward to having further discussions as we this is the Planning and Economic Development Committee of how we can advance Detroit forward. Even talks relative to a line item earlier for our libraries looking forward to having those discussions with the their administration as well as other legislators in Lansing to help us awesome issues here. So good speech. Glad to be there and look forward to the partnership. Thank you, Mr. Chair.
Thank you, Mr. Johnson.
Thank you Mr. Chair, no report for me.
Thank you, ma'am. And for me, we will be having our next district one monthly meeting this Saturday at 10am at the Charles J. Edison Center located at 24444 West Seven Mile Road that's between Telegraph in Grand River. We will have presentations on the current marijuana licensing in the city of Detroit by homegrown Detroit, which is located in Korea. We will also have we'll be joined by council president Sheffield who will discuss the reparations Task Force and its next moves. We'll also have a presentation by the developers at the Gateway industrial center, that huge structure located I 96 and the Southfield freeway, and we also have a very special young man that we're going to be showing a whole lot of love too, in our D one youth spotlight. That again is on Saturday at 10am at the Charles J. Edison center. If you have any questions or need any additional information, please call our office at 313-224-1027 And that's all I have colleagues thank you again for your patience and allowing me to make the mistakes that I've made today and we still ended up getting out of here at one o'clock. Is there a motion to before we do that Mr. Singletary.
Apologies Mr. Chair, just when looking at eight point 19 and eight point 20 There was just a refer reference to LPD but not bring back recommendation which was against sir, Mr. Chair for 8.19 and 8.20.
Okay, is there a motion for a line for line items eight point 19 and eight point 20 to bring back in two weeks college summer Mr. Chair, say no objections we shall bring back Thank you Mr. Singletary. What's your bring back line items eight point 19 and eight point 20 In two weeks. See no objections? Those actions shall be taken. Is there a motion to adjourn?
So moved Mr.
Chair. See no objections. We shall adjourn this meeting everyone be safety well God bless this meeting is now adjourned.