The Revitalization of Detroit - Talks at GS

Detroit Municipal Bankruptcy Context

• The city filed for the largest municipal bankruptcy in U.S. history in 2013.
• Mayor Mike Duggan assumed office in 2014 and immediately focused on establishing credibility through metrics-driven fixes to city services.

Operational Improvements & Public Safety

• Streetlight repair strategy: Replaced majority of lights with national-standard LED installations every 300 feet, prioritizing outer neighborhoods before downtown.
• Ambulance response times: Reduced from delays of up to one hour to meeting national standards through vehicle maintenance, EMT staffing, and dispatch system overhauls.
• Police response times: Currently approaching national standards.
• Park maintenance: Implemented a schedule to cut grass in parks every seven to ten days to retain residents and halt the population exodus.
• Population decline: The city lost 300,000 residents over the last 50 years (dropping from 1,008,000 to 700,000), creating significant blight with 300,000+ vacant homes at the start of the recovery.

Dan Gilbert & Economic Revitalization

• Job creation: Gilbert's Rock Ventures and Quicken Loans have created nearly 17,000 full-time jobs in Detroit's core.
• Real estate saturation: Current market conditions show no available office space or residential rental units left in downtown Detroit.
• Strategic shift: The economy is transitioning from a single-focus automotive model to a hybrid of large corporate anchors and small businesses.
• High-density focus: Investments target downtown and Midtown zones to create density, contrasting with the city's historical low-rise, single-family home structure built between 1900 and 1950.
• Corporate relocations: Fifth Third Bank and Ally Bank have moved headquarters or significant operations to Detroit, with Ally adding 1,400 jobs.

Public-Private Partnership Strategy

• Demolition approach: Executed a strategic sequence of removing 5,000 vacant houses annually, prioritizing neighborhoods with 90% occupancy first, then 80%, then 70%.
• Economic logic: Removing two burned-out homes in a high-occupancy block immediately raises property values, allowing other vacant homes on the block to sell.
• "Rehab and Ready" program: Gilbert launched a initiative to purchase and renovate homes, selling them online for $10,000–$15,000 to drive up comparable appraisal values.
• Property value growth (last two years):
  • Dark green areas on city maps: Home sale prices increased by over 50%.
  • Medium grain areas: Prices increased by 25% to 50%.
  • Light green areas: Prices increased by 0% to 25%.
• Land ownership: The city owns nearly 100,000 parcels, representing almost one-third of the city's total acreage (out of 360,000 total parcels).
• Pricing context: Despite significant gains, property values remain below 2008 peak levels.

Entrepreneurial Ecosystem & Carla Walker-Miller

• Historical barrier: Five years prior to the discussion, there was virtually no entrepreneurial ecosystem; the prevailing advice was to retain stable corporate jobs rather than risk starting a business.
• Career pivot: Walker Miller left a $40 billion engineering firm to launch Walker Miller Energy Services, facing an immediate loss of corporate-issued credibility.
• Inclusivity gap: While the city rebuilds, Walker Miller notes that access to new opportunities is not yet fully inclusive, with a feeling of unwelcomeness persisting in certain neighborhoods.
• Workforce development: Walker Miller serves on the Mayor's Workforce Development Board to prepare existing Detroit residents for local jobs, arguing against focusing solely on attracting new transplants.
• Demographic trend: Black women are identified as the fastest-growing and most successful demographic group of entrepreneurs.

Forward-Looking Statements & Challenges

• Mayor Duggan states the city will continue moving from high-density to lower-density neighborhoods regarding demolition strategies.
• Both leaders emphasize the necessity of a real marketplace to sustain an urban core, rejecting the idea that altruism alone can drive the recovery.
• Remaining challenge: Ensuring long-term residents feel included in the rejuvenation to prevent "hopelessness" among those who have historically left or stayed behind.