Model D Media has a nice little feature up this week about Mexicantown Mercado, which is a project the Trust Fund helped make a reality through our economic development loan program.
Here are the highlights from the story:
Six months after opening, the 13,000-square-foot Mexicantown Mercado has already begun to fulfill its promise as a culture and business incubator.
Two of the current Mercado tenants are jewelry stores. The Jewelry Center sells silver and gold from Mexico, Italy and Los Angeles and Maya's Jewelry features silver mined from Guanajuato, Mexico.
Mexicantown Community Development Corporation, the developer and manager of the Mercado, is currently negotiating with another potential tenant that would collaborate with the organization in selling Mexican imports.
Another space will be reserved as the GM Gallery, featuring rotating exhibits that will help draw visitors to the Mercado. There is also space designed for a restaurant.
This leaves space for five additional vendors -- one of the spaces is 700 square feet and four are 320. The larger leases for $1,200 per month and the smaller, $710. Interested entrepreneurs should contact Myrna Segura, the manager of the business incubator, at 313-967-9898.
It's always great to see former borrowers like Mexicantown CDC doing such great work throughout the state. The organization was formed in 1989, and its goals and programs include:
1) Promotion of the Mexicantown restaurant, shopping, and cultural district to audiences across southeastern Michigan;
2) Cultural programs and activities that educate and enrich the lives of residents of the neighborhood and the southeast Michigan region;
3) Physical improvements and maintenance in the Mexicantown district - including parks and streetscapes;
4) Entrepreneurial training and incubation to increase the economic self-sufficiency of neighborhood residents
5) Reuse of vacant land and development of the Mexicantown International Welcome Center and Mercado.
We wish everyone at Mexicantown CDC luck with the Mercado project, and look forward to collaborating with them in the future.
Sorry for all the Lansing-centric posts recently, but we couldn't resist sharing this story with everyone:
The Lansing-East Lansing metropolitan statistical area was the nation's fourth most-affordable housing market during the third quarter, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index released today.
The region consistently is near the top of the index, which compares housing sales prices with a region's median income.
According to the index, 87.2 percent of the new and existing homes sold during the quarter were affordable for families earning $64,000 a year, the median income for the area
Also near the top of the list for affordable major metros this time around were Detroit-Livonia-Dearborn and Grand Rapids-Wyoming. More detailed information about the affordability index can be found here.
To learn more about our affordable housing loan program, be sure to check out this page on our website.
Okay, here's another story we missed during the holiday break. The online magazine Capital Gains –– which showcases growth and investments in the Lansing area –– had a great article about how the city is slowly but surely turning things around:
Part of the story, at least, goes back to an adage relatively common among municipal officials, developers and real estate investors: public investment can help spark private investment.
At its most basic, the idea is that strategic applications of municipal resources in infrastructure, amenities and code reform can give private equity the sense of stability, momentum and, of course, return on investment, it needs to invest in an area. And once those private dollars start flowing, it sends signals to the market and other money jumps into the pool.
While it’s certainly not the whole story, part of downtown Lansing’s recent development boom can be traced back to simple investments that have made the place more attractive to people, and therefore more attractive to development dollars.
Go read that line in bold again. It's what the Trust Fund and our partners throughout the state have been preaching all year long.
Some of the critical mass of municipal investments are likely little urban details—what development writer David Sucher calls “city comforts.” These, says Sucher, are the “small things that make urban life pleasant: places where people can meet; methods to tame cars and to make buildings good neighbors; art that infuses personality into locations and makes them into places.”
Sucher’s popular development guide called City Comforts: How to Build an Urban Village, suggests that the “keys to transforming our cities into places of comfort and delight are in plain view and not in the least bit concealed or accessible only to obscure expertise. Like Poe’s purloined letter, they are so plainly visible that our eyes skip over them.”
The City of Lansing’s attention to these subtle improvements can be found along the Michigan Avenue corridor. For example, in the last year, the city’s added old fashioned street lights along the two mile corridor. Rain gardens have also been added to this corridor, and sidewalks reconstructed.
As anyone who lives or works in the downtown area can attest, the changes over the past year have been remarkable.
Pat Gillespie has spearheaded two major development projects in the Lansing area (which we've blogged about here and here), and while he says street lights and rain gardens may not be the deciding factor for businesses looking to invest in an area, they definitely send the right message that a city is invested in its own resurgence.
“No matter what the investment or the strategy, what is important for the individual human being is how the city works at the personal level,” writes Sucher. “Small details at the individual level are where a municipal strategy fails or succeeds.”
Following that strategy appears to be paying dividends in downtown Lansing, where tireless brainstorming, lobbying and innovation from city leaders, planners and developers has created a buzz and energy that’s making the city’s concrete changes very, very comfortable.
If you get a chance, be sure to go read the whole article.
You'll be glad you did.
We hope everyone is well-rested from the Thanksgiving break. Now it's time to play catch-up with our weekly roundup:
Crain's: Quicken may lead others downtown
Dan Gilbert said he has verbal commitments from three companies to move from the suburbs to downtown Detroit since the formal announcement was made last week that Quicken Loans Inc. would move its headquarters and 4,000 employees from Livonia.
"It was a chicken-or-egg thing. Now that we've gone public with it, and the land is under contract, it's become real. People are ready to commit, now," said Gilbert, who declined to name the firms. "Detroit's comeback doesn't have to be a 30- or 40-year deal if you have some synergy and get people together and on track."
Freep: Promotions firm ePrize considers move to Detroit
The Pleasant Ridge interactive promotions agency ePrize said it, too, is considering moving its headquarters and 300 employees to downtown Detroit, said founder and Chief Executive Officer Josh Linkner.
“We will only do it if we are able to provide team members and extraordinary experience,” Linkner said, adding that it will evaluate the possibility seriously within the next year.
“Part of success is based on creating an environment,” he said. “The last thing we want to do is stifle it.”
Linkner said Quicken’s move and other business developments are creating a tipping point and that Detroit is well on its way to becoming “a vibrant downtown area with art galleries, shopping and a wonderful sense of rich and open environment.”
Rapid Growth: Rising River House project spurs 1,000-plus jobs in downtown Grand Rapids
By the time construction of the 34-level River House Condominiums is completed at the end of next year, a big chunk of the $85 million investment will have gone into the pockets and bank accounts of over 1,000 local workers. Steady employment is the bonus for many of those contractors since the project broke ground in June 2006.
Approximately 30 subcontractors provided work crews for pouring concrete, installing mechanical and electrical equipment, setting studs, hanging sheetrock, plumbing, HVAC installation, elevator installation, masonry, and more. An estimated 95 percent of those workers are from the Grand Rapids area.
In addition, Indianapolis-based ASI, Ltd. hired some 20 local laborers to work with its three-person crew to install the specialty glass facade. The ASI employees moved to Grand Rapids three months ago to begin work, some brought their families with them, and they'll remain here through Spring 2008.
"The majority of the hourly wage is coming right back into the local economy," says Matt Larsen, project manager for Wolverine Construction Management, the construction manager for River House. "Even the guys out of Indianapolis are spending their money on rent and other things here in Grand Rapids."
Remember: Housing = Jobs.
Freep: Venture capital conference is one step in shedding also-ran label
In the world of venture capital for new and growing firms, Michigan is known as a flyover state, a place bypassed by the big money people doing deals in Silicon Valley, Boston and other entrepreneurial hot spots on the West and East coasts.
Efforts to shed that rap will get a boost soon, now that key Michigan economic development officials have won a bid to host the 2008 conference of the National Association of Seed and Venture Funds, Sept. 10-12 in Detroit. The group's board of directors will conduct three quarterly meetings here before that, the first including a private dinner event Dec. 17 at Seldom Blues restaurant.
This is a big deal, because the NASVF annual conference is expected to draw 300 investment and economic growth professionals from about 45 states and a dozen countries to Detroit.
Most of these professionals know about the Michigan of large, no-growth manufacturing companies. Many don't know as much about Detroit's new casino-hotels and riverfront development, or Michigan's new programs to help launch and grow firms in alternative energy, life sciences and other sectors.
Freep: Aerotropolis seen as key to reviving Detroit area
As metro Detroit struggles to renew and rebuild its economy, one goal has emerged as pivotal -- the creation of a new economic hub around Metro and Willow Run airports.
Known as an aerotropolis, or airport city, the goal foresees a day when tens of thousands of people would work in shipping, logistics, air cargo and other businesses linked to the global economy by convenient air transportation.
The goal of an aerotropolis remains elusive and faces daunting challenges. But Wayne County Executive Robert Ficano, who champions the plan, says it's critical to the region's future.
"We've got an economy that's been hit really hard. We've got to start doing things outside the box," he said. "Look at what Roosevelt did. He started a number of programs to jump-start the economy and spur economic growth. We cannot be afraid of failure."
A year ago, the Kalamazoo County Affordable Housing Partnership kicked off a bold project to end homelessness in 10 years. This week the coalition of advocates for the homeless, led by LISC, released its first progress report:
• Fifty-five new housing vouchers through the state's Homeless Assistance Recovery Program and 150 more housing vouchers for low-income people through the Michigan State Housing Development Authority allowed more people to get off -- or stay off -- the street.
• $2.5 million in state and federal funding was secured for emergency shelter, temporary and permanent housing and rental assistance.
• A "point-in-time" census of the homeless was conducted in January -- a snapshot of homelessness for one day in Kalamazoo County.
• Local data collection on homeless people was integrated with state data collection, allowing for better information and analysis. Project planners hope to better quantify data associated with homelessness to more accurately evaluate whether progress is being made
In 2008 LISC hopes to:
• Emphasize getting homeless people into permanent housing, rather than into temporary shelters.
• Develop a plan for helping to prevent evictions. This plan may become even more important as more county residents face foreclosures on their homes next year.
• Increase the number of housing units available for the chronically homeless.
There's clearly a lot of work to do over the next nine years, but as they say "the journey of a thousand miles begins with a single step." We wish our colleagues in Kalamazoo the best of luck in the coming years.
Here's a follow-up to the recent development stories we've been following since last month (from the LSJ):
City officials hope to use the proceeds from the sale of the Lansing City Market site to build a $1.7 million stage in Adado Riverfront Park.
Lansing Mayor Virg Bernero is scheduled to announce the plan to arts groups this morning.
The permanent stage would be built at the south end of the park, where a temporary stage is put up each year for the summer Common Ground music festival.
"We're trying to create a magnet in downtown Lansing that draws people by the thousands," Hannan said. "This is part of that puzzle. It's one key way to rebuild the economy of the city."
The stage would work in tandem with a number of proposed downtown developments to bring new life to the riverfront, he said.
Cultural groups hailed the stage plan as a way to promote the arts while bringing more activities to the riverfront area.
The space could be used by theater and music groups, from small productions to symphony concerts, said Leslie Donaldson, executive director of the Arts Council of Greater Lansing.
"It would be a wonderful thing to help highlight the downtown and some of our arts and cultural amenities," she said.
Building a vibrant arts community is a key component of many downtown redevelopment initiatives around the state. Armory Arts in Jackson and the Trust Fund-supported Williamston Theatre are two great examples.
"We're trying to make an environment with live theater where the people coming experience not only theater, but our parks system. And people who are coming for a stroll along the River Trail stumble upon us. It's a real benefit for both the theater company and for the community."
A strong arts presence is a great way to bring people downtown, so it's nice to see the Capitol City putting an emphasis on the arts community in its riverfront redevelopment plans.
Here's the big news of the day from the Free Press:
• Quicken to bring HQ, 4,000 workers downtown
• Quicken leader: Downtown move 'the smart thing to do'
• Move is a sign of hope for Detroit
• Editorial: Quicken lends big boost to downtown
There was talk of Quicken Loans moving its corporate headquarters from Livonia to downtown Detroit back in August, which we commented on in this post. According to the Free Press, this represents, "the biggest corporate commitment to downtown Detroit since 1999, when Peter Karmanos Jr. decided to move Compuware Corp. from Farmington Hills, building an office tower that now anchors Campus Martius."
As their editorial points out, this is huge news for Detroit:
The rebirth of downtown as a true central business district has been a long time coming, following years of high-profile exits that left the place looking and feeling much like a ghost town. But the downtown lineup now includes General Motors, Compuware, EDS, Blue Cross, three bustling casinos, two stadiums and a lively theater district. Add to that Quicken Loans, which has handled $18 billion in residential mortgages since 2006 and employs some 4,000 people.
Quicken's future will be shaped, to some extent, by the mortgage crunch. Already its subsidiary, Rock Financial, has had to trim employees. But the company is fundamentally sound and a big addition to the downtown businessscape.
Here are the two best things about this news:
(1) Quicken chose Michigan: "We were pursued by other states as well. We have other locations, in Arizona and Ohio, but nowhere is it any better than right here in Michigan. There is a skilled, knowledgeable worker with a Midwest work ethic you don't find everywhere." – Dan Gilbert, founder of Quicken Loans
(2) The ripple effect:
"Any type of business that moves downtown is going to help retailers ... and attract other retailers," said Luciano Gonzalez, the owner of Salad Creations, which opened six months ago on Woodward near Campus Martius. The restaurant benefits from being near Compuware and Ernst & Young and is doing well, he said.
Rob Remdenok, owner of the Computing Express store in the Penobscot Building on Griswold Street, said having Quicken's headquarters downtown will make the area more vibrant.
"It will bring people downtown who are potential customers for us and everyone else," he said. "It's a nice thing to have more people here."
Businesses are moving downtown. Workers are moving downtown.
The message? While Detroit still has a long way to go, the City is definitely heading in the right direction.
This one managed to slip past us last week, but in case you missed it too, this article from The Economist is definitely worth checking out.
Here are a few excerpts:
There are glints of progress [in Flint], and not just because GM is building a new factory. Construction workers are beginning to transform the downtown area. There is a heated contest for mayor: Dayne Walling, a Flint-born Rhodes scholar brimming with good ideas, is challenging Don Williamson, the incumbent, in November's election. Flint is trying to chart its own course. And it is not alone. A faint spirit of change is wafting through some of the rustbelt's grimmest streets.
Scholars at the Brookings Institution, a Washington, DC, think-tank, argue that America's old industrial cities can indeed rise again. Big cities such as New York and Chicago have experienced a rebirth, thanks in part to fine mayors and a surge of immigration and new business in the 1990s. Most rustbelt cities have had a more modest revival or none at all. But urban optimists insist that the renaissance can spread: cities are the natural centres of the new knowledge economy and will only grow more appealing to young people and ageing baby-boomers, who want amenities near their homes.
Also in Flint are LISC, part of a national non-profit group that channels grants and loans toward community work, and Uptown Developments, which is using so-called “baklava financing”—layers of private investment, loans, grants, federal and state tax credits—to build residential lofts as well as retail and office space downtown. Together, these groups are trying to make Flint liveable, a city that might lure a start-up or retain its students after graduation.
We've complained in the past that community economic development initiatives aren't getting the attention they deserve from the mainstream media. That's been slowly changing as the year has worn on, with more local papers finally picking up stories about community revitalization efforts. Even so, it's still exciting to see Flint's redevelopment work featured so prominently in a respected international publication like The Economist.
Michigan still has a long way to go before we can shake that "rust belt" image, but it's definitely a good sign that we're making progress if the folks across the pond are taking notice. Hopefully with a little help from people like you, we can continue in our own work to make Michigan a great place to live and work.
Our Evening for Economic Justice dinner is exactly
For more information on attending, please contact Melodie Balzer Sanford at (517) 372-6001 or Jane Carpenter at (313) 964-7300.
Talk about a two-for-one story. In case you missed this one from the AP earlier this week, here are a few excerpts:
Not so long ago, the Detroit neighborhood separating Wayne State University's campus from downtown mostly was a wasteland of ramshackle buildings and rat-infested alleys, notorious for its drug houses and rampant prostitution.
"We use the euphemism today and call it Midtown, but it was the Cass Corridor and everyone knew what the Cass Corridor was," outgoing Wayne State President Irvin Reid said.
When Reid arrived in 1997, he set about transforming the look, perception and reputation of the faded community bordering the 200-acre urban campus with Cass Avenue as its main thoroughfare.
Wayne State has spent more than $1 billion over the past 10 years for on- and off-campus housing and building projects.
"More people are realizing the action is in Midtown Detroit," Reid said. "As we fulfill our strategic mission to revitalize Detroit, we have become part of the growing rhythm of this diverse neighborhood."
Anchored by the university and a cultural district that includes the Detroit Institute of Arts, Charles H. Wright Museum of African American History and Orchestra Hall — home of the Detroit Symphony — Midtown has become an attraction.
Actually, it's a three-for-one story. Education + Arts + Development = Revitalized communities. What's the missing piece of the puzzle? Housing.
But wait, they're working on that too...
Wayne State is promoting new housing in the area to more than 8,200 faculty and staff, and close to 31,000 students. In return, the companies are offering incentives ranging from a year without mortgage payments to thousands of dollars in upgrades to free parking spaces.
Add small, affordable eateries, a Starbucks coffeehouse, Barnes & Noble bookstore and a hair salon, and the campus becomes more of a destination for people living in and visiting Midtown.
"It's critically important to have new retail and new restaurants," University Cultural Center Association president Susan Mosey says. "It's another reason for students to want to live in the dorm or in apartments."
What's encouraging is that the heavy investment from Wayne State is clearly having a ripple effect throughout Midtown. New eateries and small businesses will undoubtedly lead to more private business development. The folks at WSU clearly "get" that collaboration is key:
"The university discovered that if students were coming to look at the campus, the parents were saying, `Where is my child going to live?'" Brown said.
For an urban university to be a part of the community, it has to reach out and not become an island, said Reid, who is stepping down as Wayne State president next spring.
"This does not happen in one day, one year or, for that matter, in 10 years," he said. "It takes time.
That's right, it takes time. Community revitalization doesn't happen overnight, which is why it takes a strong commitment from institutions like Wayne State to be the catalyst for change. Hopefully this is just the beginning of Midtown's road to recovery.
Remember, tomorrow is election day. Okay, so this isn't a presidential or a major statewide election year, but local races are important. Aside from the important decisions these candidates will make as local officials, many of the men and women appearing on the ballot this week will probably run for higher office down the road, which is why we need to select good leaders now. Here are two great resources for voters:
• Publius.org: Find out where you're supposed to vote
• MI Votes: Answers any and all questions about voting
Now, onto the links...
Rapid Growth: New public art symbolizes revitalization of Grand Rapids' Southtown neighborhood
Nine mobile murals symbolizing the past, present, and future of Grand Rapids' Southtown neighborhood were unveiled Tuesday, October 30 at a press conference followed by a walking tour of the new art installments. Lighthouse Communities commissioned the murals through the Urban Institute for Contemporary Arts to get young people involved in the revitalization of the neighborhood.
"We've been working to re-brand the neighborhood as Southtown," says Dave Allen, executive director of Lighthouse Communities. "With the renewed energy and development we thought what a cool opportunity to bring some kids in."
The "past" murals feature white birds flying out of the pictures, representing white flight. The "present" murals have birds of prey, representing predatory lenders that prey on Southtown. The "future" murals show brightly colored birds coming back, a beacon of hope, and a variety of skin colors depicting the area's multiculturalism.
The murals hang in groups of three. Throughout the coming months, Lighthouse will move the murals to places of revitalization within the neighborhood. Currently, the murals are on display at 1401, 1408, and 1414 Madison SE.
Wow, talk about a great revitalization project! This sounds like something other communities could pull off pretty easily. Kudos to Dave Allen with Lighthouse Communities for making it happen.
Rapid Growth: Streetcar investment could accelerate Grand Rapids' revival
For about the same money it cost to build the Van Andel Arena, Grand Rapids could develop a streetcar system that would return billions of dollars to the local economy, just like the streetcar system in places like Portland, OR has brought some $3 billion to that city in less than a decade. A feasibility study is underway and the results should be ready by summer 2008.
$3 billion in less than a decade? Sure sounds like a great way to attract business development. If we want to compete with big cities like Chicago and New york for young, talented workers, offering some form of mass transit could be the ticket.
PR Newswire: Detroit Renaissance Releases First Road to Renaissance Progress Report
It is time to change the narrative about our assets in Southeast Michigan. This report shows that we are on target to meet our objectives and substantial work has been done to achieve our goal of transforming the economy of Southeast Michigan."
The "Road to Renaissance" initiative focuses on helping the region achieve the following six objectives: 1) become the center for global mobility; 2) develop an aerotropolis; 3) grow Metro Detroit's creative community; 4) expand the region's entrepreneurial capacity; 5) secure a strong future talent base; and, 6) promote globally while communicating locally.
According to Rothwell, this has been an unprecedented civic effort combining the talents and input of diverse constituencies into a plan that addresses our economic growth by building upon the region's assets.
Sounds like they're making great progress so far. We'll definitely be keeping an eye on future releases from Road to Renaissance Initiative.
Sam Singh, Mayor of East Lansing: "You are going to see a number of old rundown rental properties turned into owner-occupied properties. There are a number of them that are going to be set aside for down payment assistance for those people that are low to moderate income categories."
In all, 30 new homes will go up on Virginia Avenue, 16 single family homes and 14 townhouses that will be called Avondale square. Builder Karen Schroeder says people are already excited about moving here.
Theresa Patnoude, Eastminster Child Development Center: "We offer child care services in East Lansing. We're just around the corner, two blocks away and we're really hoping we will be able to service some of the new families."
But for those instrumental in getting this project off the ground, Avondale square isn't about building houses, but building a community. The builder says they have already applied for the first building permit and hopes to start constructing the first model soon. The thirty homes will be phased in over the next two years.
Can you guess which line caught our eye?
"Avondale square isn't about building houses, but building a community."
It's nice to see a City like East Lansing taking economic development and community revitalization projects so seriously. Granted, E.L. is luckier than some other communities in the state, in that they already have a fairly stable tax base to support such forward-thinking projects. However, it's always great to see elected officials like Mayor Sam Singh who have decided to make community revitalization a priority for their city.
Projects like this rarely get off the ground without community leaders being involved, so we tip our hat to Singh for continuing to move East Lansing in the right direction.
Our Evening for Economic Justice dinner is exactly one week away. There's still time to register online. Just hope over to this page, fill out the form, and submit your information.
“We are delighted to be honoring Susan and John at this year’s dinner,” said Coady. “I’m proud to say that we recently made our first loan from the Naimark Fund to the Williamston Theatre. This is a wonderful project that Norm would have loved.” (See related story.)
At the dinner, the Trust Fund will also honor equity contributors Joe and Luella Bassett. Longtime humanitarians and Trust Fund investors, the Bassetts are prime examples of how investments and equity contributors can help fuel our work. This summer, the Bassetts announced a $100,000.00 challenge investment, where they will match new individual investments with the Trust Fund dollar-for-dollar up to $100,000.
“We feel a responsibility to make a large commitment in our time, talents, and treasures to (organizations like) the Trust Fund,” said Mr. Bassett. “We see a need to educate people, to engage them—particularly faith groups. That’s supposed to be part of their commitment, to look out for others.”
Along with the Naimark family and the Bassetts, Sisters of Mary Reparatrix will also be recognized at this year’s dinner. The Riverview, Michigan-based congregation became investors in 1991, and they are committed to working with groups that fight for justice and the dignity of the human person.
“The Sisters of Mary Reparatrix have supported our work for many years, and we are truly grateful for their commitment to our mission of fostering economic justice,” said Coady. “The support of groups like these is what helps our vision become reality here in Michigan.
For more information on attending, please contact Melodie Balzer Sanford at (517) 372-6001 or Jane Carpenter at (313) 964-7300.
Of course, the best news for our industry relates to the first-ever funding of the Michigan Housing and Community Development Fund. A line item introduced by the House of Representatives into the Department of Labor and Economic Growth budget (which you can read more about here) included $2.1 million for the MHCDF!
This is definitely short of the $100 million goal our coalition set for this year, but it's certainly a great start. The State will undoubtedly face more fiscal challenges in next year's budget, but the Trust Fund will continue to advocate for more investment in MHCDF.
There's clearly more work to be done, but this week's action from the Legislature sends a message to our industry that they value our work. Major kudos go out to Majority Floor Leader Tobocman and Senator Jansen for their support this year.
Now... back to work!