Motor City Gold Rush

[Allan]

I saw this a few days ago...I'm surprised nobody has posted it yet.

http://www.modeldmedia.com/features/goldrush.aspx

[detroitfan]

With a handful of exceptions, local developers are ignoring Detroit and letting the out-of-state developers come and eat their lunch,

[Ramcharger]

Two new loft residential projects on Detroit's near-west side show the trend toward urban living is continuing

"Both loft projects benefit from Neighborhood Enterprise Zone designations, an incentive for new developments that permits sharply reduced property taxes for up to 12 years." "We're finding that without the NEZ program and the low tax rate, the product would not sell."

So what happens when the incentives expire after 12 years? Will these buildings empty out?

[Jin Kim]

I can tell you that otherwise reasonable condo in the Indian Village Manor sits empty partially due to the fact that it carries $5000/year tax burdan. Does anyone have any information on what taxes are like in other urban cities?

[DetroitBazaar]

Two new loft residential projects on Detroit's near-west side show the trend toward urban living is continuing

So what happens when the incentives expire after 12 years? Will these buildings empty out?

Yes or sell for much less than the markets true value. Look at "Victoria Park", the first real residential community within the city built in decades. The housing values in the suburbs for similar houses have gone up more than double. Sure you might make a profit to sell after a couple of years in these empowerment zones but does that lead to stable and diverse neighborhoods? Taxes in the city will prevent any true growth, and I emphasize GROWTH, within it. We may see enclaves of prosperity like Illitch sees it, but we'll never see a true uplift in economic GROWTH- good for the house and good for the job.

Peace to Detroit

PS. I'm sorry to harp on bad news. I grew up in the 7 mile and Woodward area and cannot logically explain to out of town folks how hard it is to do business in our good city! How would you promote this city when noone wants to voluntarily move in? Sure, there are jobs in companies like EDS, GM, or some of the legal offices for now, but what else? If there is something else, DetroitBazaar will promote it as we have with others but want to hear from people who have experience and devotion for doing business within the city!

Peace to you and Peace to Detroit,

DetroitBazaar