delray revitalization plan - medc · delray neighborhood stabilization & revitalization plan...

D E L R A Y N E I G H B O R H O O D

S T A B I L I Z A T I O N & R E V I T A L I Z A T I O N

P L A N

DETROIT, MICHIGAN March 2010

Submitted to: Southwest Detroit Community Benefits Coalition

People’s Community Services of Detroit

Prepared by:

Southwest Detroit Community Benefits Coalition People’s Community Services

DELRAY NEIGHBORHOOD STABILIZATION & REVITALIZATION PLAN

ACKNOWLEDGEMENTS The Delray Neighborhood Stabilization and Revitalization Plan would not have been possible without the support, expertise, insight and resources from:

Executive Leadership

Honorable Rashida Tlaib, State Representative

Steve Tobocman, former Michigan State Representative

Michigan State Housing Development Authority

Cities of Promise Program

Department of Community Development

Southwest Detroit Community Benefits Coalition

People’s Community Services of Detroit

City of Detroit

Department of Planning and Development

Michigan Department of Transportation

Planning and Development Department


DELRAY NEIGHBORHOOD STABILIZATION & REVITALIZATION PLAN

TABLE OF CONTENTS

Introduction – A Smaller and better Delray........................................................................ 2

Summary of Existing Conditions........................................................................................ 4

Vision and Strategic Direction.......................................................................................... 13

Phasing and Clustering of Delray ..................................................................................... 25

Range of Interventions...................................................................................................... 26

Stabilization Interventions ................................................................................................ 28

Revitalizaton Interventions ............................................................................................... 31

Fundraising Strategy ......................................................................................................... 35

Management – “Who Does the Work?” ........................................................................... 40

Conclusion ........................................................................................................................ 41

Delray Neighborhood Stabilization and Revitalization Plan Page 2 Detroit, Michigan March 2010


INTRODUCTION – A SMALLER AND BETTER DELRAY

Introduction The residents of Delray sought to leverage the impact of Detroit River International Crossing (DRIC) into an opportunity to implement a respectful relocation and sustainable neighborhood revitalization plan. To build the proposed DRIC Michigan Department of Transportation (MDOT) needs to acquire approximately 150 acres of land for a customs plaza, and interchange on and off I-75 in the Delray neighborhood of Detroit. The plaza and interchange will require the relocation of between 324 and 414 dwelling units. Most of these units are single-family homes in various physical conditions and two apartment buildings that comprise 100 units. Bridge and plaza operations will yield 775 new jobs that could produce employment opportunities for local residents in Delray and greater Southwest Detroit.

Located adjacent and to the south of the proposed location of the Plaza for the DRIC, sits the remaining section of the Delray neighborhood where there are clusters of residential blocks encompassed by an intense range of industrial, staging and intermodal uses. The borders for the target area are Jefferson Avenue to Melville Street and S. Post Street to Leigh Street. With the encouragement of State Representative Rashida Tlaib and past State Representative Steve Tobocman and in coordination with the staff of People’s Community Services (PCS), a group of Delray residents formed the Southwest Detroit Community Benefits Coalition (SWCBC) to represent community concerns in negotiation with MDOT. A review of the list of requested Community Benefits from the SWCBC dated July 22, 2008 showed that they have considered the depth and range of how the DRIC will affect the Delray neighborhood.

The requested benefits are broken into the following categories:

• Housing • Land use • Commercial and economic development

• Infrastructure • Environmental and health • Safety

PCS, SWCBC, and community stakeholders enhance their ability to persuade funders for concentrated investment in housing, residential infrastructure, and neighborhood amenities by developing a “Delray Neighborhood Stabilization and Revitalization Plan” that addresses the questions of:

• What is the vision and opportunities for Delray that attracts relocated residents to stay in Delray? • What are the existing physical and ownership conditions of the target area? • What is the range of interventions for stabilization and revitalization of Delray? • How is the work prioritized and when? • How much will each intervention and benefit cost?

The ultimate outcome for residents of Delray is to revitalize the target area into a “smaller and better” Delray that builds upon the commitment of existing homeowners, values of diversity, and sense of history and place. Understanding that Delray, like many Detroit neighborhoods, will not return to the population density of the past, they seek to concentrate investment on targeted blocks to provide opportunities:

• Rehabilitate houses owned by committed homeowners, • Respectful relocation and housing for households impacted by the DRIC, and • Revitalize neighborhood blocks to create “a Delray village” with a sense of place

The Delray Neighborhood Stabilization and Revitalization Plan focuses on housing and infrastructure improvements on residential blocks. Public, for-profit and non-profit leaders will engage in urban development practices that replace funding small-scale “as needed” scattered site-projects with large-scale concentrated investment. The development will be implemented based on a community-approved neighborhood plan and demonstrate that neighborhood revitalization is economic development.



Delray Stabilization and Revitalization Planning Process The Delray Stabilization and Revitalization Plan was sponsored by the State of Michigan Cities of Promise Program, which is managed by the Michigan State Housing Development Authority (MSHDA). In 2005, Governor Jennifer Granholm initiated the Cities of Promise Program to redevelop eight cities in Michigan experiencing distressed economic and social conditions.

Through the leadership and partnership between State Representative Rashida Tlaib and former State Representative Steve Tobocman, MSHDA, and MDOT, Capital Access, Inc. (CAI) was hired to facilitate the planning process. CAI received direct assistance and staff resources from the People’s Community Services of Detroit and worked in close coordination with the Southwest Detroit Community Benefits Coalition. Together, they completed the planning process, outlined interventions and strategies for implementation, and charted a path for coordinated investment. Implementation will transform the physical landscape of Delray into a neighborhood of choice for existing and relocated residents and prepare Delray for its economic recovery through land assembly that supports sustainable industrial, agricultural and commercial land use.



SUMMARY OF EXISTING CONDITIONS Capital Access, Inc. (CAI) and People’s Community Services (PCS) assessed the current physical, market and political conditions of the Delray Neighborhood Target Area. The boundaries for the area are:

• North: Melville Street • South: W. Jefferson Avenue • East: Post Street • West: Leigh Street

CAI and PCS conducted a parcel-by-parcel survey and Value Densification Community Mapping (VDCmp) developed an existing conditions map of the 1,406 properties in the Delray Neighborhood Target Area. The property ownership and conditions database and existing conditions map analyze the physical and ownership conditions. CAI conducted stakeholder interviews to gather insight on the issues facing and opportunities for Delray. CAI hired AKT Peerless to conduct a Phase I Environmental Site Assessment for the area surrounding Holy Cross Church, which is the focus of the Delray Stabilization Plan. Finally, CAI examined the initial relocation surveys of households impacted by the DRIC and conducted by the Michigan Department of Transportation to measure the existing demand for relocation housing within Delray. These assessment tools helped the Southwest Detroit Community Benefits Coalition (SWCBC), PCS and CAI shape the development opportunities and implementation strategies that will maximize the success of revitalization.

Overview of Delray Existing Conditions 94% of the parcels in Delray are zoned residential, but the neighborhood is isolated from other residential communities because of industrial plants and warehouses, heavy truck traffic, and under-occupied or vacant commercial and mixed-uses along the major corridors of Westend Street, Dearborn Street, Jefferson Avenue and Post Street. Of the 1,406 properties, 924 (or 66%) are vacant lots, many of which are substandard residential lots. The conditions of the existing properties with structures are blighted (180), needs assistance (197), and habitable (105).

The rate of homeownership in Delray is low when analyzing all property. The rate of homeownership, which includes vacant lots, is

16% (or 227 owner-occupied single-family homes) and 58% of all occupied and residential property. The national average in 2008 was 67.8%. However, for a post-industrial inner-city neighborhood, the homeownership rate is high for existing structures. Most neighborhoods average 25-40%.

Vacancy and blight in Delray remains relatively high. 18% (or 96) of all structures are vacant and 37% of (or 180) structures are blighted. 63 of the vacant structures are blighted.

During the 20th century, Delray transformed from a dense, residential neighborhood of detached homes and commercial storefronts for employees of the nearby industrial factories and warehouses to stretches of vacant land, empty buildings, industrial sites, and blight. The anchors that remain are invested home and business owners as well as churches.

Delray Existing ConditionsBlighted & Occupied

6%Needs Assistance &

Occupied15%

Stable & Occupied

7%

Vacant Structure

6%

Vacant Lot66%



In addition to the vacancy and blighted physical conditions and isolation caused by industrial warehouses and sites, Delray has some difficult quality of life issues. There are environmental and transportation hazards in Delray, which include but are not limited to, Zug Island, the wastewater treatment plant, a salt mine, truck routes to the Ambassador Bridge, and composting site. Due to the population loss and vacancy, Delray has limited to no access to basic retail goods and services. Neighborhood residents and stakeholders oft cited crime as a threat in Delray as well as high-response times by police.

Despite these challenges, Delray has assets to capitalize upon to revitalize the neighborhood. They include:

• Committed homeowners who maintain their home and work diligently with existing residents and stakeholders to advocate on behalf of Delray

• Established blocks of tree-lined streets and traditional street grid near the historic Holy Cross Church

• DRIC relocated residents interested in staying in Delray • Opportunities to re-plat vacant lots into modern home sites • Intergenerational households that demand larger homes sites and housing but want to remain in

urban neighborhoods

The target area will align its opportunities to be a smaller and better Delray neighborhood that concentrates residential investment of the DRIC relocatees and existing homeowners. Delray will assist in the economic recovery and development of Southwest Detroit. that capitalizes on its existing industrial and commercial infrastructure and ability to assembly large tracts of land that improves the urban environment and employs area residents. Those goals include:

• Market the area as a “smaller and better Delray” to those impacted by the DRIC • Retain existing, committed homeowners • Stabilize and revitalize those blocks with housing and a sense of place • Capitalize on its existing industrial and commercial infrastructure • Prepare Delray for its economic recovery by assembling land to encourage urban agriculture and

forestry, green industry, recreation, and employment of residents • Create environmental buffers between residential and industrial/commercial areas to improve the

quality of life in Delray

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Delray Neighborhood Stabilization (West) Delray Neighborhood Stabilization (West)

05001,0001,5002,000 250Feet

City of DetroitExisting Conditions Map, September 2009

¯

Existing Conditions Key

Condition

Vacant Lot - 170

Blighted - 39

Needs Assistance - 64

Stable - 16

Side Lot - 63

Ownership

City - 125

Rental/Investor - 133

Owner - 89

Occupied Structure - 96

Vacant Structure - 23

Property Use/Zone

Commercial - 8

Institutional - 1

Industrial - 3

Residential - 104

Southwest

Community

Benefits Coalition

Southwest

Community

Benefits Coalition

Target Area Location



Redevelopment Zones in the Delray Target Area Three distinct zones emerged in the Target Area when examining the Existing Conditions Map. The ownership and property condition patterns distinctly occurring in each of the Redevelopment Zones will direct the interventions outlined later in the Summary. The three zones were:

• Central Delray: Dearborn Street to Westend Street to Melville Street to Jefferson Avenue • West Delray: Westend Street to Post Street to Melville Street to Jefferson Avenue • East Delray: Leigh Street to Dearborn Street to Melville Street to Jefferson Avenue.

Central Delray The boundaries for Central Delray are Dearborn Street to Westend Street to Melville Street to Jefferson Avenue. There are 590 properties in this Zone. The area is primarily residential with the Holy Cross Catholic Church serving as its anchor.

Compared to the entire Target Area, Central Delray has a higher percentage of stable properties (11% versus 15%). The number of vacant lots are very high is this area, 62% of all property, some of which are maintained, adjacent lots to homeowners. The City owns 188 of the 367 vacant lots in the Central Delray, which is 51% of vacant lots and 32% of all property. The homeownership rate of all property in Central Delray is 21%, compared to 16% of all Delray.

Environmental concerns are high-tension power lines and high-pressure gas lines that intersect the Target Area and affect the ability to build or rehabilitate housing. These lines create a “Z” through Central Delray. They start at Melville, head south between Harbaugh and Yale, and then west along Copeland. MSHDA requires that housing cannot be built or rehabilitated within 165 feet to 300 feet of these lines. Therefore, CAI recommends that housing not be built within 300 feet of these lines to ensure maximum safety and to have these setbacks serve as an environmental buffer. There is enough vacant land and real estate to accommodate these conservative setback requirements as well as the anticipated housing demand without affecting the proposed Stabilization and Revitalization Target Area. Other environmental concerns are typical for urban neighborhoods and will require environmental assessment and remediation of vacant residential lots and structures. (See Central Delray Existing Conditions Map.)

Opportunities for Central Delray Central Delray is the focus of the Delray Neighborhood Stabilization and Revitalization Plan. It poses the best opportunity for not only acquisition and site preparation of vacant lots, vacant structures, and blighted buildings but also has a “sense of place” to market the project to DRIC relocatees. Holy Cross Church, concentration of “stable” or “needs assistance” housing, committed homeowners, and a traditional street grid anchor the area.

The stabilization and revitalization approach to Central Delray will be phased and block-by-block, where there will be a specific rehabilitation or infill new construction strategy for each parcel and structure.

Interventions include:

• Large-scale acquisition of vacant lots and target properties • Demolition of blighted structures • Homeowner rehabilitation services



• Rehabilitation of “needs assistance” investor-owned properties and vacant structures for sale to first-time homebuyers

• Infill new construction of “Custom Home of Your Own at a Starter Home Price” for DRIC Relocatees

• Streetscaping, sidewalks, lighting and curbs • Master planning for the entire Delray Target Area that plans for the economic recovery and

sustainability for residents, businesses, employees and visitors

West Delray The boundaries for West Delray are Leigh Street to Dearborn Street to Melville Street to Jefferson Avenue. There are 351 properties in this Zone. The area is primarily residential with the Delray Neighborhood House serving as its anchor.

Compared to the entire Target Area, West Delray has a lower percentage of stable properties (4% versus 15%). The number of vacant lots are very high is this area, 66% of all property, some of which are maintained, adjacent lots to homeowners. The City owns 123 of the 233 vacant lots in the West Delray, which is 53% of vacant lots and 35% of all property. The homeownership rate of all property in West Delray is 18%, compared to 16% of all Delray.

Opportunities for West Delray Programming for the area will be limited in scope and dependent on the revitalization of Central Delray and particularly the Stabilization Area Phase 1 and 2. West Delray would remain residential with an opportunity to provide larger home sites that meet the needs of larger, intergenerational families, households who would like to maintain a large, urban garden, and families that seek to have a place to store recreational vehicles and boats. Due to the population loss of Delray and Detroit, West Delray needs to embrace the idea of “smaller and better Delray” that has some residential but also considers urban agriculture and forestry, commercial and industrial businesses, and environmental buffers to improve the quality of life for residents and assist in economic recovery of Southwest Detroit.

The area should be part of a master plan for the Delray Area of Detroit, and when the market emerges West Delray will require its own parcel-by-parcel neighborhood plan that reflects and is dependent upon the outcomes, needs and opportunities that will arise after successful revitalization of Central Delray and the building of the DRIC.

East Delray The boundaries for East Delray are Westend Street to Post Street to Melville Street to Jefferson Avenue. There are 465 properties in this Zone. The area is primarily residential vacant lots with pockets of homeownership. The area is isolated from East and Central Delray because of the Railroad just east of Springwells, the access road to Zug Island, and the large industrial and truck sites along Melville and Jefferson. The western boundary of the plaza for the proposed Detroit River International Crossing (DRIC) will be adjacent to Post Street.

Compared to the entire Target Area, East Delray has a lower percentage of habitable properties (6% versus 15%). Like West Delray, most of the property is vacant lots (70% or 324). Some of the vacant lots are side lots maintained by adjacent homeowners. Ownership of property in the area was limited due to the data and information provided by MDOT.



Opportunities for East Delray Programming for the area will be limited in scope and dependent on the revitalization of Central Delray and particularly the Stabilization Area Phase 1 and 2. An economic development plan, as part of the larger master plan, should be considered for this area. Large-scale land assembly to redevelop the area as a buffer to the residential areas of Central Delray from the environmental hazards, large industrial sites and DRIC plaza. Land use opportunities may be commercial and industrial businesses that employ area residents as well as urban agriculture and forestry.

The area should be part of a master plan for the Delray Area of Detroit, and when the market emerges East Delray will require its own parcel-by-parcel economic development plan that reflects and is dependent upon the outcomes, needs and opportunities that will arise after successful revitalization of Central Delray and the building of the DRIC.

“A Smaller and better Delray” - Evolution of the Delray Target Area There is a lot of real estate in Delray that is vacant, even compared to other Southwest Detroit Neighborhoods that also experienced population loss and blight. Industry, warehouses, environmental hazards and transportation routes isolate the remaining residents and prevent any market demand from new households. Residents and advocates of Delray need to embrace the concept that Delray will be smaller, but better.

“Smaller, but better” means that the entire Delray Target Area needs to be master planned to assist in the economic recovery of Southwest Detroit as well as provide a high, sustainable quality of life for new and existing residents. There will be fewer blocks of housing, but it will be high value and concentrated to ensure a safe, sustainable quality of life for new and existing residents and preserve the historic legacy and strong sense of community in Delray. There will be more commercial and industrial uses, but there will be:

• Environmental and transportation buffers to improve air, noise and soil quality and traffic safety • Companies that employ residents and participate in the “green-ing” and diversifying of the

region’s economy

However, the limited funding available, the population loss of Delray, Southwest Detroit, and the entire metropolitan region, and negative perception and environmental hazards of Delray forces the Southwest Detroit Community Benefits Coalition (SWCBC) to collaborate with public and private partners to focus on a smaller target area. The scale of the project and size of the target area considers the balance between a project that is:

• Large and concentrated enough to stabilize the area and transform the physical, market, and health and safety issues of existing residents and DRIC relocatees, while providing;

• Just enough supply of new housing to revitalize and repopulate established residential blocks in Delray.

Central Delray, especially those blocks east of Holy Cross Church and north of the high-pressure gas lines, is the primary stabilization and revitalization zone because it has the most assets to build-upon that transforms these blocks into a neighborhood of choice for existing residents and DRIC relocatees. Central Delray has the largest concentration of invested and contiguous homeowners as well as opportunities to modernize the housing stock through infill new construction for DRIC relocatees. West Delray presents opportunities for a mix of residential and environmental buffers that depend upon the outcomes of the revitalization of Central Delray. Delray Neighborhood House anchors the area and



provides community services for local families and quality of life amenities, such as playgrounds and sports fields. The revitalization plan and efforts will have to address the incidents of crime and sense of lawlessness near Leigh Street as well as the gas and power lines and the heavy truck traffic on Dearborn Street that isolate the area from the revitalization occurring in Central Delray. East Delray is the most vacant and devastated residential market of Delray. It does not have residential anchors and amenities to support its immediate revitalization. Industrial uses, warehouses, heavy rail and truck traffic, and the DRIC plaza does and will further isolate this area. The area requires a redevelopment plan that focuses on large-scale acquisition, relocation of existing residents, and site preparation in order to recruit and retain businesses that employ neighborhood residents, assists in the economic recovery and diversification of Detroit, and promotes green and sustainable development. Nevertheless, Central Delray – Stabilization and Revitalization Area is the focus of the Delray Neighborhood Stabilization and Revitalization Plan, which will outline the conceptual site plan, the range and production of the Stabilization and Revitalization Interventions, and the strategies and management to implement the plan.



VISION AND STRATEGIC DIRECTION

Vision The Delray Village will emerge as a neighborhood of choice for existing and new residents relocated by the DRIC and, as the market emerges, for those that earn a range of incomes.

It will continue to uphold its values of diversity, commitment to community, and inter-generational living.

New and rehabilitated homes surrounding Holy Cross Church will enhance the historic legacy of the Delray Neighborhood and Southwest Detroit.

Quality green space, mixed-use development, and traffic and streetscape improvements will promote sustainable development and a safe quality of life in Delray.

Residents will benefit from a safer and sustainable community.

Guiding Principles

Neighborhood Revitalization is Economic Development Neighborhood Revitalization that incorporates commercial, housing, and infrastructure improvements for people who earn a range of incomes is economic development. Therefore, the fundraising strategy will expand from regulated low-income housing subsidy to the broader array of funds for economic development, capital improvements, brownfield remediation, and green building. Neighborhood revitalization will resize and reposition inner-city blocks to improve the quality of life for residents and redefine the new urban neighborhood for Detroit.

Plan for the Long-term Success of Delray A Master Plan of the Delray Neighborhood from the Detroit River International Crossing to the Delray House will study the long-term redevelopment opportunities of the area and provide a strategic direction based on economic, social and political conditions. It will thoughtfully unite the residential, commercial, industrial and recreational needs and engage various stakeholders to reach a common goal – a revitalized and sustainable Delray and Southwest Detroit.

Serve Existing Homeowners First This second-generation approach to urban renewal is rooted in the practice of serving existing homeowners first with a range of options that may include:

• Homeowner Rehabilitation, Repair and Weatherization • A New Home at an Affordable Price in the targeted blocks • Assistance in resolving title, credit and or estate issues

The goal is that existing homeowners are encouraged to stay and enjoy the benefits of revitalization. There will be no displacement of homeowners.

Relocate Households with Care The other half of this second-generation approach to urban renewal is to serve relocated households. In Delray, relocated households are impacted by the Detroit River International Crossing (DRIC) Project or currently reside in unsafe and blighted housing. Relocation should assume a case management approach



to assisting these households. No household will be relocated until their new home has been built or rehabilitated. Eligible households will receive the necessary subsidy needed to not only meet the law of Uniform Relocation Act, but also ensure their new home remains affordable and enhances their quality of life. The range of options may include:

• Case management approach that takes care of and demystifies the relocation process for residents • A new or rehabilitated home that is affordable, safe and allows them to continue to live in their

community and among their current neighbors. • For those who choose to live outside Delray, assistance with locating a new house and relocation

payment • Assistance in resolving title, credit and/or estate issues

The goal is that one-third of the relocated residents decide to move to Delray Village because of the increased quality of life while maintaining their sense of community.

Acquire Everything in the Stabilization Area before Building New Acquisition of all parcels in the Stabilization Area is necessary to develop a project of scale to transform the area into Delray Village. The Delray Implementation Team must stabilize the target area before revitalization can begin. Only through complete control of a critical mass of site and large scale removal of blight can the Delray Implementation Team stop the cycle of disinvestment and ensure the implementation and success of the neighborhood vision.

Block by Block Clustered Development The Delray Implementation Team will apply a phased approach to revitalization and have a preservation or redevelopment strategy for each parcel based on the existing property ownership and conditions. The Team will concentrate revitalization interventions and resources on a block-by-block basis. The Team will complete revitalization of the entire block before developing the next block.

Stabilize to Produce Build-able Lots; Revitalize to transform the Physical Landscape and Market A series of intensive and successive interventions is needed to transform the existing conditions into a revitalized Delray Village and neighborhood of choice. These interventions fall into two broad categories – Stabilization and Revitalization.

The Stabilization Phase is the acquisition and pre-development activities to end the cycle of disinvestment in the Delray Stabilization Area, eliminate the blight, crime, environmental hazards, and problem rentals that reinforce the negative perception of the area, and prepare the properties for redevelopment. The Stabilization Phase is complete when build-able lots have been produced.

The Revitalization Phase begins once the Stabilization Phase is complete in all of the Revitalization Zones and the market is prepared to absorb new houses and a re-conceptualized Delray Village. This is the “Build Out and Move In” Phase.



Strategic Direction • Apply a phase and reconceptualized approach to neighborhood revitalization in Delray Village • Preserve affordable homeownership for existing residents through rehabilitation of owner-

occupied single family homes • Relocate households impacted by the DRIC or residing in unsafe and blighted conditions to

housing that increases their quality of life, is affordable, and allows them to remain connected to their community.

• Acquire all vacant lots, vacant structures, and problem rental properties that sustain blight and are not architecturally significant

• Increase the rate of homeownership for buyers who earn a range of incomes • Preserve the legacy of the Delray Neighborhood with stabilization of architecturally significant

homes that signify the history of Delray • Improve access to neighborhood services and retail as well as industrial and commercial jobs that

employ Delray residents • Promote a healthy quality of life and urban living with the development of urban farms and

forests, green space, and trails that connect the Delray Village with the riverfront, Fort Wayne, Delray House, Southwest Detroit, and other Detroit destinations

• Improve Safety and Enhance Quality of Life with Traffic Management Plan • Plan for the long-term success of Delray with a Master Plan from the DRIC to Delray House.

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80

57

8632

83

03

7824

8600

811

7

8392

812

1

80

50

810

3

80

41

80

30

80

23

80

20

81

41

8000

80

12

8133

79

40

8100

80

40

80

02

805

1

8156

40

1

77

95

8650600

501

532

440

8400

542

400

78

82

7808

83

08

8116

80

51

81

57

8450

80

76

809

0

89

31

83

82

81

24

81

04

83

72

8152

8433

8144

8134

9062

83

14

85

37

608

85

49

8555

85

73

85

31

80

57

85

43

85

67

85

85

78

75

85

61

85

79

80

45

79

24

422

408

452

434

513

523

81

49

81

57

509

84

04

416

428

83

47

7844

83

70

84

09

84

23

84

41

83

53

83

11

84

17

84

29

84

35

845

3

84

47

83

24

84

10

89

37

85

36

85

54

85

78

84

16

84

46

85

66

84

34

85

48

85

42

85

72

83

17

83

41

83

29

84

28

84

40

83

23

85

94

84

58

83

35

84

52

84

22

85

60

83

00

83

30

8139

80

15

80

41

81

01

8350

7849

7832

7822

811

8

7801

80

22

7841

8608

8359

8624

8620

8111

7807

8612

83

08

8346

811

2

83

02

8340

8118

8411

811

6

80

40

80

34

80

28

80

46

811

0

811

7

806

0

80

56

501

80

50

80

42

80

66

80

70

80

94

81

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81

06

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83

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81

24

81

30

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8334

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84555

8443

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8333

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9038

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9054

9032

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8960

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28

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7

80

10

83

73

80

61

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97

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83

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7915

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7840

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56

78

31

8365

Delray Neighborhood Stabilization (Central)

05001,0001,5002,000 250Feet

City of DetroitExisting Conditions Map, September 2009

¯

Existing Conditions Key

Condition

Vacant Lot - 252

Blighted - 58


Stable

No Data/Outside of West Boundary

Parcel with Side Lot

Parcel with Vacant Structure

Ownership

City

Rental/Investor

Owner

Occupied Structure

Vacant Structure

Property Use/Zone

Church

Commercial

Institutional

Industrial

Residential

SSSSS

85307818

700

8478

712

7338000

7831

8490

8

8584

7831

Gas Lines

Requirements q

Power

Lines

STABILIZATION AREA

Phase I Phase II

Southwest

Community

Benefits Coalition

Southwest

Community

Benefits Coalition

Target Area Location

Condition

Vacant Lot - 252

Blighted - 58


Stable - 58

Side Lot - 115

Ownership

City - 152

Rental/Investor - 168

Owner - 150

Occupied Structure - 185

Vacant Structure - 32

Property Use/Zone

Church - 9

Commercial - 27

Institutional - 0

Industrial - 7

Residential - 177

Delray Neighborhood Stabilization (Central)City of Detroit, Wayne County, Michigan

PEOPLE’S COMMUNITY SERVICESSOUTHWEST COMMUNITY BENEFITS COALITION

Infi ll Single Family Residential A

New Commercial, Mixed Use or Multi-family

Alternate Lot

Infi ll Single Family Residential B

Delray Stabilization Area Phase Two

Delray Stabilization Area Phase One

Stable Rental, Remains As Is

Purchase Rehabilitation

Homeowner Rehabilitation

Infi ll Single Family Residential A 8 3

Infi ll Single Family Residential B 13 23

Stable Rental, Remains As Is 2 1

Purchase Rehabilitation 8 6

Homeowner Rehabilitation 27 14

Phase OneUnits

Phase Two Units

KEY:

Parking for Church

TOTAL UNITS 58 46

NOT TO SCALE

Existing Buildings

HOLY CROSS CHURCH

8187

8175

8169

8163

8167

8151

8145

8139

8133

8127

8115

8109

8101

8197

8190

8186

8173

8121

8041

8043

8057

8161

8025

8178

8166

8148

8124

8106

8094

8090

8066

8060

8056

8050

8046

8040

8034

400

428

434

502

542

ALLEY

ALLEY

608

SOLVAY CHURCH

8076

8183

8177

8169

8161

8155

8127

8121

8065

8073

8091

8101

8045

8051

8057

521

531

8370

8106

8302

8029

8046

8028

8316

8320

8340

8093

8087

8081

8075

8071

8059

8053

8047

8039

8101

8104

8116

8124

8134

8160

8123

8111

8040

8046

8058

8064

8028

8040

8052

8064

8070

8082

8088

8094

8110

8116

8130

8334

8346

8352

8364

VACANT UTILITY PLANT

416

408

8172

8130

8100

8046

8035

8113

622


PEOPLE’S COMMUNITY SERVICESSOUTHWEST COMMUNITY BENEFITS COALITION NOT TO SCALE



NOT TO SCALE



PHASING AND CLUSTERING OF DELRAY Central Delray has been divided into two phases that provide the genral order of implementation and sequencing in the target area. Please refer to “Phased Central Delray Existing Conditions Map” on Page 15 for a visual of this phased plan. CAI assumes that the first two phases will accommodate the residents relocated by the DRIC and will require 100% subsidy, due to the market devastation of this area and the benefits provided to the DRIC relocatees. After revitalizing the first two phases and there is market demand, development subsidy (i.e. fair market value less total development costs) and infrastructure costs should revitalize the other phases in Central Delray.

Phase 1 – Initial Stabilization and Revitalization Boundaries for Phase 1 are Melville Street to Yale Street to both sides of South Street and the alley behind Westend Street.

Interventions will focus at Yale Street first and move towards Westend Street as properties are rehabilitated and built. Homeowner rehabilitation is the main focus in this phase because several existing homeowners maintain their residences. Another program is the City of Detroit’s Side Lot Disposition Program to adjacent homeowners. Many homeowners have fenced in and maintained city-owned vacant lots. The City has a program for adjacent homeowners to buy these properties at a marginal cost.

Rehabilitation of Vacant Structures will focus on full code rehabilitation and façade improvement to attract renters relocated by the DRIC, but qualify for homeownership. New Construction will focus on blight removal and replatting of vacant lots to create a more modern house and home site (40-45’ wide versus 30’) while maintaining the historic legacy and character of the block. Existing homeowners relocated by the DRIC are the target market for these homes.

Phase 2 – Proceeding Implementation Boundaries for Phase 2 are Melville Street to Westend Street to Thaddeus Street to Sloan Street to Vanderbilt Street to Dill Place to the alley behind Westend Street.

Interventions will focus at Vanderbilt Street first and move towards Westend Street as properties are acquired, re-platted to larger home sites, and rehabilitated or built. Homeowner and homebuyer rehabilitation as well as Side Lot Disposition continue to be an important intervention, but infill new construction and re-platting are the main focus due to the contiguous vacant lots and blighted structures that allow for modern home sites in Delray.

Phase 3 – Blocks surrounding Holy Cross Church Boundaries for Phase 3 are Melville Street to Yale Street to Vanderbilt Street to Sloan Street to Thaddeus Street to Power and Gas Lines Setback Requirements.

If DRIC relocatees and the market absorbs the housing in Phases 1 and 2, then interventions will focus at Yale Street and the property surrounding Holy Cross and then proceed south and east towards Thaddeus and Sloan Street, respectively. Homeowner and homebuyer rehabilitation continue to be an important intervention, but infill new construction and re-platting are the main focus due to the contiguous vacant lots and blighted structures that allow for modern home sites in Delray.

The Delray Stabilization and Revitalization did not budget and develop a site plan for these blocks because CAI and PCS estimate that initial demand from the DRIC relocatees will be limited to the first two phases. However, the same principles from Phases 1 and 2 may be implemented for Phase 3.



RANGE OF INTERVENTIONS The following table summarizes the range of interventions and production goals of the Delray Stabilization and Revitalization Plan.

Stabilization Interventions The Stabilization Phase for Central Delray – Phases 1 and 2 may take up to three years to complete, which means build-able lots have been produced as a result of the following:

• Secure commitments of $1,500,000 to pay for Implementation Management of the Delray Stabilization and Revitalization Plan over the next four years

• Hire an Implementation Manager to coordinate and manage the stabilization and revitalization functions and

• Secure commitments of $150,000 to complete a Master Plan for all of Delray • Conduct a Relocation Survey of every household affected by the DRIC and determine their

interest in relocating to the Central Delray Stabilization and Revitalization Target Area • Secure commitments for $1,692,715 for Phase and $3,078,375 for Phase 2 in Acquisition and Site

Prep Subsidy; • Acquire all 102 target properties • Conduct a Code Enforcement Sweep to identify problem properties with significant blight. The

sweep will be conducted in the order of the revitalization phasing • Conduct Environmental Assessments to identify and address potential issues • Remove blight through demolition • Relocate Renters and Homeowners in a respectful manner (when applicable)

Phase 1 Phase 2 TotalAcquisition & Site Preparation of Target Properties 34 68 102

Phase 1 Phase 2 TotalExisting Homeowner Rehabilitation 27 14 41Homeownership Production

Infill New Construction - Type A (30' Lots) 8 3 11

Infill New Construction - Type B (40'+ Lots) 13 23 36

Purchase Rehabilitation 8 6 14

Subtotal Home Production: 29 32 61

Total Housing Units 56 46 102



• Re-plat Residential Lots to at least 40’ to meet the needs of DRIC relocatees and other modern households

• Value engineer and approve construction plans and infrastructure improvements • Cultivate strong relationships with stakeholders, including existing residents, DRIC relocatees,

new homebuyers and business owners, and public and private sector funders

Revitalization Interventions The Revitalization Phase, also called “Build Out and Move In,” focuses on:

• Secure commitments for $6,379,078 and $6,573,305 for build-out of Phases 1 and 2, respectively. • 41 Homeowner Repair and Rehabilitation in Phases 1 and 2 for existing homeowners (when

applicable) • “Move Up Home at a Starter Home Price” where 47 Homebuyer Infill New Construction and 14

Homebuyer Rehabilitation are marketed, pre-sold and custom built or rehabilitated for DRIC relocatees and other households earning a range of incomes

• Infrastructure Improvements and Traffic Management, which includes new streets, sewer, lights, curbs, alleys and sidewalks



STABILIZATION INTERVENTIONS

Relocation Survey The Implementation Manager, in close conjunction with Southwest Detroit Community Benefits Coalition and Michigan Department of Transportation, should conduct a Relocation Survey of all DRIC households to determine their interest and eligibility in relocating to the Central Delray Stabilization and Revitalization Target Area.

The survey should include:

• Affordability and Relocation Benefits Analysis of DRIC relocatees to determine the equity they will receive through MDOT relocation benefits and mortgage payment they can afford to relocate to Central Delray

• Existing Household Composition • Preferences of Housing Floor Plans and Amenities as provided in the Delray Stabilization and

Revitalization Plan • Conceptual Site Plan and Streetscape Rendering to demonstrate what a revitalized block of

Central Delray will be and which lots are available to DRIC relocatees • Other Uniform Relocation Act and MDOT requirements

Code Enforcement Sweep The City of Detroit, in close conjunction with the Implementation Manager and City Planning and Development Department, will conduct a code enforcement that aligns with the Phasing of Central Delray Stabilization and Revitalization Area. The Code Enforcement Sweep needs to include an inspection of every structure in the Target Area so that the City has updated information concerning:

• Homes that present immediate health and safety hazards; and • Rental properties with code violations • Owner-occupied properties with code violations

The Code Inspection Report needs to be drafted in a manner to serve as an outline for specifications for contractor bid for homeowners and investors that seek to bring their properties up to code.

By targeting properties in Central Delray Stabilization and Revitalization Target Area, the code enforcement will ensure that occupied properties are treated fairly and responsibly. If a property is up to standard, then no action will occur. Homeowners will have the opportunity to receive Rehabilitation Services. Investors that need to repair code violations of their structures may:

• Repair code violations; or • If not economically feasible, the Delray Plan Implementation Management Team will offer to

voluntarily purchase property based on Fair Market Appraisal and will assist with resolution of clouded title

• Neither the City of Detroit, MSHDA or the Delray Plan Implementation Management Team will provide subsidy to absentee investors of rental properties.

This will demonstrate to existing property owners that a new building standard is expected from the occupied structures. If property owners find the code enforcement too stringent and expensive, they may voluntarily sell their properties.



Acquisition of Blighted and Vacant Properties The Delray Stabilization and Revitalization Plan calls for acquisition of 102 parcels in Phases 1 and 2 of the Central Delray Target Area. The Implementation Management Team, in partnership with the City of Detroit and Wayne County/Detroit Land Bank, will manage this acquisition process in a sensitive, respectful, and business-like manner. It may take up to three years to acquire the property in Phases 1 and 2. The Implementation Manager will have staff people focused on property acquisition and will buy them through:

• Private Acquisition • Tax and Mortgage Foreclosure Sale • City-owned Properties

The Implementation Manager will develop property acquisition management information systems that include:

• Property Ownership Database with Negotiation Notes • Acquisition File Folder Templates • Standard Purchase Contract • Blanket Liability Insurance • Post Acquisition Protocols, such as add to blanket liability insurance coverage, board up, utility

shut-off, fencing, and schedule for demolition

Acquisition will focus on vacant lots and structures and investor-owned problem rental problems. The Implementation Manager will not acquire any owner-occupied homes, unless:

• Owner-occupied home is beyond habitation, but Homeowners want to stay in Central Delray • Homeowner wants to voluntarily sell and leave the neighborhood • For all other homeowners, the Implementation Management Team will offer homeowner

rehabilitation services

The Implementation Management should form a strategic partnership with the Wayne County Land Bank or City of Detroit Land Bank to utilize the strong state brownfield and land bank laws. These laws allow Land Banks to streamline the tax foreclosure process and purchase, clear title and hold all properties acquired until sufficient critical mass of properties are acquired to begin construction. The Implementation Management Team and Land Bank will not hold any occupied properties.

Relocation of Renters The City will ensure that all renters living in investor-owned properties purchased by them receive relocation benefits that result in safe, decent affordable housing. If feasible, the City, rather than the Implementation Management Team, will relocate renters, process applications, distribute funds, and ensure compliance with Uniform Relocation Act and any City of Detroit and Michigan Relocation Policy.

In Phases 1 and 2, the City will work with existing homeowners who live in blighted conditions, want to sell their home, and stay in the neighborhood in order to benefit from revitalization. See “Services to Existing Homeowners.”



Demolition and Site Preparation of Properties The Implementation Manager will take the lead in preparing and remediating the acquired properties to produce build-able lots in Phases 1 and 2 of Central Delray. These pre-development activities include:

• Environmental assessments of residential properties in Phases 1 and 2 • Environmental remediation of specific sites • Demolition of targeted properties • Interim Property Management – lawn maintenance, debris and trash removal, and securing of lots

and buildings (if necessary); • Re-platting and zoning of properties based on their proposed new use; • Phasing and completing pre-development activities based on the clustering of blocks in Phases 1

and 2.



REVITALIZATON INTERVENTIONS

Services for Existing Homeowners

Existing Homeowner Rehabilitation Full Code Homeowner Rehabilitation for homeowners (1) earning 80% or less area median income and (2) would like to receive financial assistance to rehabilitate their home up to Detroit Building Standards.

Façade Improvement for homeowners (1) earning any range of income and (2) amenable to financial assistance to make repairs only to the exterior of their homes.

This plan will offer existing homeowner rehabilitation and façade improvement services only in Phases 1 and 2. The Implementation Manager will lead community outreach, process applications, manage inspectios, draft work specs, oversee the completion of the rehabilitation work, and ensure compliance with City and HOME Rehabilitation policies.

Homeowner Relocation (as needed) If existing homeowners in Phases 1 and 2 want to sell their home and remain in the area, they may choose to participate in the Homeowner Relocation Program. They will invest proceeds from the sale of their old home as equity in their infill new construction home is Phase 1. An affordability gap subsidy complete the financing of the new construction home. The homeowner will not move out of existing residence until construction is complete. The relocation sawp program will meet Uniform Relocation Act (URA) guidelines.

If homeowners want to sell their home and move outside of Central Delray Phases 1 and 2, they will receive fair market value. The voluntary purchase will meet URA rules.

The Implementation Manager will manage the Homeowner Relocation Program ensure compliance with URA. The Implementation Manager will manage the Homeowner Relocation Program and ensure compliance with URA. The Implementation Manager will meet, negotiate, and enster an agreement with the homeowner to “swap” their home for an infill new construction home in Phase 1 or purchase their home at Fair Market Value.

“Move Up Home at a Starter Home Price” via Infill New Construction and Purchase Rehabilitation The plan calls for new construction and rehabilitation of 61 pre-sold, custom-built or custom-renovated homes for people that DRIC relocatees and households that earn a range of incomes. It is anticipated that 25-45 of the units will be for households relocated by the DRIC and want to remain in Delray. The remaining will be sold to low-, moderate-, and middle-income buyers.

The Implementation Manager will renovate 14 existing rental and vacant units into single-family homebuyer purchase homes for existing relocated homeowners in Phases 1 and 2, DRIC relocatees, and first-time homebuyers.

The Implementation Manager will manage new construction of the 47 for single-family homebuyer units under the “Move Up Home at a Starter Home Price” Program in Central Delray – Phases 1 and 2. The new homes will meet Green Building and Energy Conservation Standards, either through Leadership in Energy and Environmental Design (LEED) Certification or other city and state code.



Recommendations Recommendations are predicted on a number of assumptions. Most important is that the Implementation Manager successfully acquire the vast majority of targeted properties in order to achieve significant project scale. The findings also assume improvement of the Delray Streetscape and Wastewater Treatment Plant. Finally, high-quality neo-traditional home designs are critical to supporting home values.

Target Buyers

- Households relocated by the DRIC and want to remain in Delray - Existing homeowners living in unsafe conditions and want to remain in Delray, but

reside in a smaller, handicapped accessible home - Intergenerational households who demand higher square footage and larger home sites

Unit Type & Size:

Handicap-accessible Single Family Homes - 1300 to 1900 s.f. (excludes

garage and basement) - 3 & 4 bedrooms - 2 to 3 bathrooms - 2 car detached garage - Unfinished basements - Optional “Mother-in-Law” suite - Lot size 30’ – 45”

Intergenerational Single Family Homes - 1900 to 2400 s.f. (excludes garage, bonus

space, and basement) - 3 & 4 bedrooms - 2 to 3 bathrooms - Handicapped-accessible - Apartment with 1 bed & 1 bath - 2 car attached garage - Optional bonus space above garage - Unfinished Basements - Lot size: Minimum 40’

Pricing Prices will be lower in earlier Phases and then may or may not increase in later phases, due to the current housing market, Detroit economy, and existing conditions of Delray

Handicapped-accessible 3 BR: $60,000 - $75,000 4 BR: $70,000 - $85,000

Intergenerational 3-4 BR, no Apartment: $$75,000 - $90,000 3-4 BR, with Apartment: $95,000 - $110,000

Unit Amenities

Exteriors - Brick & vinyl exterior designs reminiscent of existing older homes - Covered front porches; rear patios or porches Interior Design - Upgrade options, especially for floors, kitchen, bathrooms, and built-ins - Open floor plan for kitchen, dining and living area with minimum 9’ ceilings - Wood or simulation floor for part or all of main living area - 1st floor powder room - Master bedroom with adjoining bath - Ceramic tile for bathroom floors - 2nd floor laundry room; if not feasible, combine with mudroom on 1st floor - “Bonus room” or 3rd/4th bedroom flex space for office, fitness room, etc. Utilities, Fixtures, Appliances - 5 Star energy efficiency - Wired for telephone, cable, internet, and alarm system - Central heating & air - Garage door with automatic opener - Basic fridge, range, microwave dishwasher, and disposal with upgrade options



Development Amenities

Scale: This cannot be overemphasized! It is crucial that enough acquisition takes place so that buyers know that surrounding properties will be revitalized. Improved streetscaping: Trees, sidewalks, lighting Improved safety: It is imperative that public perception of Central Delray changes. Large-scale acquisition & demolition will go far to communicating that the neighborhood is on the verge of revitalization. Lighting will also help. For Phase I, added security may be necessary, such as visible police and security patrols.

Program Management This program involves existing homeowner relocation as well working with low-to-moderate income homebuyers. Therefore, the Implementation Manager will apply a case management approach that focuses on respect for each existing homeowner and homebuyer.

The Implementation Manager will seek a joint venture partnership with another developer that has deep development experience and capital to produce a high value product at scale for the Infill New Construction Homes and Purchase Rehabilitation Homes. The Implementation Manager will bring land, complete zoning approval, finalize site and housing design, and provide subsidies to the project to play a material role as a joint venture partner.

The Implementation Manager will contract with another firm who specializes in homebuyer education and counseling.

The Implementation Manager will manage the contract and partner with a marketing firm to reach target markets and assist in home sales.

The Implementation Manager will place liens and deed restrictions in Phases 1 and 2 to ensure Central Delray remains an owner-occupied neighborhood.

DELRAY STABILZATION PLANAcquisition Redevelopment Budget

1/15/2010 Page 33

IMPLEMENTATION MANAGEMENTAverage Annual

Cost2010201120122013Implementation Management $375,000$223,075$334,416$342,241$350,268

ACQUISITION & SITE PREPPer Unit Cost# UnitsProject# UnitsProject# UnitsTotalAcquisition$8,88734$324,00068$582,500102$906,500Temporary Relocation - Homeowner Rehab$3,0008$24,0006$18,00014$42,000Homeowner Relocation - ONLY those living in Unsafe Houses$52,9095$264,5456$317,45511$582,000Renter Relocation$18,0006$108,0004$72,00010$180,000Pre-development$16,32134$529,90068$1,134,800102$1,664,700Demolition$10,0006$60,00010$100,00016$160,000Site Preparation$12,11734$382,27068$853,620102$1,235,890

Acquisition & Site Prep Subtotal:34$1,692,71568$3,078,375102$4,771,090

HOUSING PRODUCTION COSTSPer Unit Cost# UnitsProject# UnitsProject# UnitsTotal

Homebuyer New Construction (less Acq & Site Prep)$183,66521$3,857,26626$4,775,00847$8,632,274Buyer Purchase Rehabilitation (less Acq & Site Prep)$144,6518$1,156,8126$868,29714$2,025,109Homeowner Repair - Façade Improvement$15,00011$165,0002$30,00013$195,000Homeowner Rehabilitation - Full Code$75,00016$1,200,00012$900,00028$2,100,000

Housing Production Subtotal: 56$6,379,07846$6,573,305102$12,952,383

TOTAL DEVELOPMENT COSTS56$8,071,79446$9,651,679102$19,223,473

INFRASTRUCTURE AND PLANNINGInfrastructure ImprovementsMaster Planning for Delray

TOTAL INFRASTRUCTURE COSTS

TOTAL PROJECT COSTS56$10,471,79446$11,151,679102$21,623,473

Central Delray Phases 1 & 2 USES

Implementation Management$1,500,000

Acquisition & Site Prep102$4,771,090

Existing Homeowner Rehab41$2,295,000

New & Rehabilitated Homes for Sale61$10,657,383

Infrastructure Improvements and Planning$2,400,000

TOTAL PROJECT COSTS:$21,623,473

PROJECT SUMMARY BY DEVELOPMENT ACTIVITYDELRAY NEIGHBORHOOD STABILIZATION & REVITALIZATION PLAN

TOTAL

$750,000$1,500,000$2,250,000$150,000$150,000

Total$1,500,000

Project CostsTOTAL COSTS

PHASE 2TOTAL PHASE 1

Project Costs

$2,400,000 $1,500,000 $900,000

Project SummaryDelray Stabilization Budget



FUNDRAISING STRATEGY The Implementation Management Team and Executive Sponsors of the Delray Stabilization and Revitalization Plan need to raise $21,623,472 in subsidy to complete all of the Stabilization and Revitalization Improvements called for in this Plan. This section describes the strategy for raising $1,500,000 for Implementation Management over four years, $4,771,090 in Acquisition and Site Preparation, $12,952,383 in Revitalization and Rehabilitation, and $2,400,000 in Infrastructure Improvements and Planning for Phases 1 and 2 in the Central Delray Target Area.

Central Delray Phases 1 & 2 USESImplementation Management $1,500,000

Acquisition & Site Prep 102 $4,771,090

Existing Homeowner Rehab 41 $2,295,000

New & Rehabilitated Homes for Sale 61 $10,657,383

Infrastructure Improvements and Planning $2,400,000

TOTAL PROJECT COSTS: $21,623,473

TOTAL

Delray can become a model for the new definition of Neighborhood Revitalization and Economic Development in Detroit and Southeast Michigan. Central Delray will position itself as the “Smaller and better Delray” that serves existing residents and those impacted by the DRIC. Households will have diverse family structures, both in demographics, income and size. Strategic investment, concentration of new and rehabilitated housing on established blocks, and respectful relocation will address the isolation of residents caused by vacancy, blight and industrial land uses.

Parcels in East Delray and along major corridors will be assembled for new land uses and buffer Delray residents from the environmental hazards, heavy truck traffic, and industry. Opportunities include urban agriculture and forestry and new commercial and industrial businesses that employ people. Successful implementation will build upon the existing community and assist Detroit in its economic recovery.

A healthy neighborhood serves people with diverse socio-economic backgrounds and improves their quality of life, embraces sustainable development, and provides economic opportunities for residents and businesses. Delray will not be revitalized with CDBG, NSP and HOME funds nor the DRIC relocation benefits alone. The federal housing and relocation dollars have income and regulation restrictions. Their eligible uses and financing structure does not fully address all of the components and issues of successfully implementing a neighborhood plan that stabilizes and transforms the market.

Many cities recognize that neighborhood revitalization through a coordinated investment in housing, infrastructure improvements, commercial retail, strategic land reuse, and other neighborhood amenities is economic development. In the long term, neighborhood revitalization increases a city’s tax base; increases the number of homeowners, which increases demand for services; creates new businesses and jobs; and reduces the drain on police, fire and healthcare services.



Even though the Delray Stabilization and Revitalization Plan only addresses the housing and residential infrastructure needs, it provides the framework for the Implementation Management Team, Southwest Detroit Community Benefits Coalition, the City of Detroit, and local leaders that investment in comprehensive neighborhood revitalization requires funds beyond low-income housing subsidy. Financing must expand into Acquisition, Infrastructure, Brownfield Remediation and Economic Development funding because a healthy neighborhood is a market that offers value beyond housing.

The executive leadership of the Delray Stabilization and Revitalization Plan will raise $21,623, 473 in subsidy to implement this plan because they will make the conceptual sale that the revitalization of Central Delray will deliver value for new and existing residents and prepare all of Delray for its economic recovery.

USES for Phases 1 and 2

Acquisition, Site Preparation and Implementation Management To acquire 102 vacant, blighted and/or problem properties and lots in Phases 1 and 2, it will cost $906,500 for an average of $8,887 per property. Of the 102 properties, 25 are city-owned. This means the Implementation Manager will need to be focused on acquiring properties via:

• Voluntary Private Purchases • Tax and Mortgage Foreclosures • Cleaning Clouded Title

A major source of blight are occupied properties that are dangerous and unsafe. The Implementation Manager will acquire five investor-owned properties and will relocate an estimated 10 rental households. The estimated cost is $180,000.

There are homeowners living in blighted and unsafe living conditions. To increase their quality of life and ensure their safety, the Implementation Manager may negotiate with homeowners to purchase their home. All acquisitions will be voluntary and meet the Uniform Relocation Act. The estimated costs to relocate 11 homeowners are $582,000. Finally, homeowner rehabilitation is a major component of the Delray Stabilization Program and the catalyst project to transform targeted blocks. Homeowners may have to relocate temporarily if rehabilitation of their house is extensive. These costs are $42,000 for 14 households.

$3,060,590 is budgeted for Pre-development, Demolition and Site Preparation to produce build-able lots for new construction or prepare houses for purchase rehabilitation. Activities under Pre-development and Site Preparation include Environmental Assessments and Remediation, Re-platting, Architectural Services and/or Building Code Specifications.

ACQUISITION & SITE PREP Per Unit Cost # Units TotalAcquisition $8,887 102 $906,500Temporary Relocation - Homeowner Rehab $3,000 14 $42,000Homeowner Relocation - ONLY those living in Unsafe Houses $52,909 11 $582,000Renter Relocation $18,000 10 $180,000Pre-development $16,321 102 $1,664,700Demolition $10,000 16 $160,000Site Preparation $12,117 102 $1,235,890

Acquisition & Site Prep Subtotal: 102 $4,771,090

TOTAL



$1,500,000 is budgeted to cover staff, overhead and professional service providers over the next four years for Implementation Management. Please refer to “Implementation Management” budget page for details of how and when staff will be added.

Homeowner Rehabilitation and Façade Improvement $2,295,000 is budgeted to assist 41 Homeowners, currently residing in Phases 1 and 2, with Full Code Rehabilitation and Façade Improvements so that they may benefit from the revitalization of Delray. $75,000 is estimated per Full Code Rehabilitation and $15,000 per Façade Improvement.

Housing Production The Homeownership Production costs to produce 61 new homeownership opportunities in Phases 1 and 2 is $10,657,383, which is approximately $174,711. The subsidy needed is high because it assumes that all of the units will be 100% subsidized. No private mortgages will finance these units because there is no outside market demand for housing in Delray. The market is DRIC relocatees and existing homeowners living in unsafe conditions. Therefore, home sales will come from DRIC relocatees who will receive relocation benefits from MDOT. Homeowners living in blighted conditions will place their equity from the sale of their home into the unit.

Appraisal or Affordability Subsidy will subsidize the remaining gap. Appraisal subsidy is the amount needed to cover the gap when Total Development Costs exceeds Fair Market Value. Affordability subsidy is the amount needed to cover the gap with Fair Market Value exceeds the Mortgage Amount a homebuyer can afford based on 30% housing to income ratio and a 30-year fixed rate mortgage.

HOUSING PRODUCTION COSTS Per Unit Cost # Units Total

Homebuyer New Construction (less Acq & Site Prep) $183,665 47 $8,632,274Buyer Purchase Rehabilitation (less Acq & Site Prep) $144,651 14 $2,025,109Homeowner Repair - Façade Improvement $15,000 13 $195,000Homeowner Rehabilitation - Full Code $75,000 28 $2,100,000

Housing Production Subtotal: 102 $12,952,383

Infrastructure Improvements $2,250,000 is an estimate to improve the sidewalks, streets, alleys and curbs of Phases 1 and 2, but may increase if Wastewater and Sewer needs to be upgraded.

Master Planning $150,000 is an estimate to develop a Master Plan for the entire Delray Target Area that is comprehensive and looks at various land use, economic development, community input, and population growth and demographics projections. This analysis will then determine the highest and best use of property in Delray that maintains a sense of community and assists in economic recovery of Detroit.

INFRASTRUCTURE AND PLANNINGInfrastructure ImprovementsMaster Planning for Delray

TOTAL INFRASTRUCTURE COSTS

$2,250,000$150,000

TOTAL COSTS

$2,400,000



Fundraising Calling Program The Fundraising Strategy for the Cathedral District is rooted on two core principles:

• Make the Conceptual Sale that Neighborhood Revitalization is Economic Development. The Delray Neighborhood Stabilization and Revitalization Plan qualifies for economic development and capital infrastructure improvement subsidies beyond housing.

• Leverage Relationships of elected officials, business and community leaders with prospective funders.

The Executive Sponsor Committee will review the list of prospective funding sources with the Implementation Manager. The Implementation Manager will draft a Fundraising Work Plan that incorporates:

• Executive Level Relationships to be cultivated with prospective funders; • Technician-to-Technician relationships that need to be cultivated with prospective funders • Calendar of Funding Deadlines for targeted institutional funding sources such as HUD Super

NOFA, FHLBI, and MSHDA • Discretionary Funding Sources that may need longer term development • Issues to Research to help improve access to funding

The highest priority is to raise a flexible and plentiful property acquisition and site preparation fund. As the real estate market works through over-supply and the credit crisis impacts under-capitalized investors, there should be more opportunities to purchase vacant lots, structures and problem rental properties at reasonable prices. It is imperative that the Implementation Manager has sufficient cash and flexibility to maximize voluntary private purchase opportunities.

The general sequence for the launch of the Fundraising Plan will be:

• Formalize Partnership between Implementation Manager, City Department of Planning and Development, and City/County Land Bank concerning logistics for Implementation;

• Identify Executive Sponsor Relationships with each prospective funding source and schedule initial meetings to introduce funders to Plan and seek input concerning the Plan and approach to fundraising;

• Coordinate with MSHDA Cities of Promise executive staff to chart a course for coordinating with funding sources within State government at MSHDA, transportation, economic development and environmental quality agencies;

• Meet with Mayor Bing, State Representative Tlaib, Former State Representative Steve Tobocman, Congressman Kilpatrick and Senators Levin and Stabenow to introduce the elected officials and their staff to the Plan and gather information concerning next steps;

• Implementation Manager meets with program managers of each funding source to identify any issues and which funding programs may be a fit;

• Draft Calendar for Funding Applications Deadlines and calls to prospects.

From these initial meetings the Implementation Manager will have sufficient information to draft a Fund Raising Work Plan with specific performance milestones.

Implementation Manager

Financial ManagerAccounting System

Financial Planning for Projects & Operations

Construction Manager & Developer

Property InspectionsRehab & New Construction Management

Research and Application of LEED & Green

Building

Community Outreach

Coordinator

Outreach to Homeowners and Residents

Partner with MDOT on outreach to Relocated

Households

Administrative Assistant

Property Acquisition Processor

Support Fund Raising for Revitalization Projects

and Operations

City of DetroitCode Enforcement, Demolition,

Planning & Zoning, Development, Tax Assessor

Funders & LendersState, Federal, Employers,

Foundations, Banks & Intermediaries

Development PartnersLand Bank, Program Managers, Professional Service Providers

Delray ResidentsExisting Homeowners

RelocateesNew Homebuyers

Southwest Detroit Community Benefits Coalition

People’s Community Services

Consult on ImplementationOutreach to Residents

Advocacy & Community Organizing

DELRAY STABILIZATION PLAN IMPLEMENTATION MANAGEMENT ORGANIZATIONAL CHART

DRAFT – For Discussion Purposes ONLY

November 2009

Michigan State Housing Development Authority

Michigan Department of Transportation

City of Detroit

CITY, COUNTY OR STATE

LAND BANKAcquisition Manager

Property Management and Maintenance

Disposition in coordination with and

approval of Implementation Manager



MANAGEMENT – “WHO DOES THE WORK?”

Implementation Management Team The Delray Neighborhood Stabilization and Revitalization Plan needs to be embraced as a joint enterprise of the City, Land Bank and community leaders of Delray. An Implementation Team should be formed to meet monthly to monitor progress and support work of Implementation Manager. The Implementation Team should include:

• Implementation Manager • City of Detroit Planning & Development Department • Detroit Land Bank • MSHDA Cities of Promise Representative • MDOT Representative • Representative from Southwest Detroit Community Benefits Coalition

Frequent communication and shared ownership will set the tone for vigorous collaboration and success.

Role of Executive Sponsor Leadership Group To provide a broad base of support and convey a message of unity of purpose, an Executive Sponsor Leadership Group may include State Representative Tlaib, former State Representative Steve Tobocman, and Leaders from Detroit LISC, Detroit Economic Growth Corporation, and other community economic development organizations.

The Executive Sponsors will leverage their relationships with decision makers from the range of City, State, Federal, Financial Intermediary and Foundation funding sources to make the conceptual sale of the importance and value of making an extraordinary investment in the revitalization of Delray in Detroit.

Role of Implementation Manager – “Project Management Happens Every Day!” The Implementation Manager must be fiercely focused on:

• Raising funds • Acquiring properties and preparing them for rehabilitation or redevelopment • Planning and approving construction and infrastructure improvements • Cultivating stakeholder relationship among neighborhood residents, homebuyers, homeowners,

DRIC relocatees, the City of Detroit, MSHDA, MDOT, and funders from the public and private sectors.

The Implementation Manager will manage the majority of the Stabilization functions, except Code Enforcement and Relocation Services which should be administered by the City and MDOT.

During the Revitalization Phase the Implementation Manager will manage the Homeowner Rehab and “Move Up Home at a Starter Home Price” Programs as they will be implemented on a block-by-block basis.

In all aspects of the Stabilization and Revitalization Phases, the Implementation Manager will work in close coordination with the City of Detroit Planning and Development Department and Detroit Land Bank.



Job Description of Implementation Manager The Delray Stabilization & Revitalization Plan was completed to leverage the impact of Detroit River International Crossing (DRIC) into an opportunity to develop and implement a respectful relocation and sustainable neighborhood revitalization strategy. The ideal candidate will have at least five (5) years experience of proven community revitalization; possess strong skills for community outreach; and have familiarization with varied aspects of Land Banking and Brownfield revitalization and remediation. The main responsibilities of the position include:

• Raising Funds to finance and implement the proposed range of interventions in the Delray Stabilization & Revitalization Plan

• Acquire targeted properties in the proposed geographic phases and prepare them for revitalization or redevelopment

• Plan and approve construction and infrastructure improvements • Cultivate relationships among neighborhood residents, DRIC relocates, Southwest Detroit

Community Benefits Coalition, City of Detroit, Michigan State Housing Development Authority (MSHDA), Michigan Department of Transportation (MDOT), and funders from the public and private sectors.

Previous success in developing and facilitating relationships with community

Required Experience and Training • Bachelor’s degree in housing and real estate development, urban planning and/or public

administration with at least five (5) years in community revitalization, commercial business attraction, or related field.

• Direct management experience in housing, community, and/or economic development, grant writing, and administration.

• Strong communication skills that effectively translate the goals and objectives of an organization’s mission.

• Previous success in developing and facilitating relationships with community, political, and funding leaders.

• Experience in effectively managing a non-profit development organization and leading staff and administrative needs.

• Maturity and temperament to provide thoughtful customer service to homebuyers and community residents.

• Fluency in or a plan to become proficient in Spanish within 24 months.

Knowledge Skills and Abilities • Must possess excellent communication and coalition building skills, tact, and ability to interact

effectively with community stakeholders, funders, Michigan State Housing Development Authority (MSHDA), Michigan Department of Transportation (MDOT) and City of Detroit.

• Experience and knowledge of housing, Brownfield redevelopment, land banking, and economic and community development funding programs.

CONCLUSION A comprehensive neighborhood revitalization plan that concentrates housing and infrastructure investment on targeted blocks with a sense of place and community anchors will create a “smaller and



better Delray” that enhances the sense of community and links existing, relocated and new residents with the DRIC and future economic development opportunities. Implementation of the “Delray Stabilization and Revitalization Plan” and strategic land assembly for new and sustainable industrial, commercial and agricultural uses that employ local residents will demonstrate that strong neighborhoods, even if smaller, and sustainable growth will assist in the economic recovery of Delray.

This plan is grounded by the vision that Delray has an opportunity to emerge as a neighborhood of choice for people relocated by the DRIC, existing, committed homeowners, and inter-generational families that demand both an urban lifestyle and larger homestead. Coordinated blight removal will stabilize the area. Homeowner rehabilitation reward existing homeowners who are loyal to the neighborhood and weathered tough times. A consumer – rather than developer driven – homebuyer program will produce the next generation of homes that offer quality, affordability and value while upholding the historic character of Delray. Sidewalk, alley, and street improvements will improve safety and aesthetics of neighborhood blocks. Strategic land assembly near the DRIC and heavy industrial uses will provide sustainable development and employment opportunities. Property along high traffic streets can be redeveloped into environmental and commercial corridors to buffer residents from health and safety issues.

This plan provides a road map for implementing a stabilization and revitalization plan that seeks to serve existing and new residents. The net benefits of this coordinated investment will be:

• Increased population density of new and existing residents on targeted blocks • Increased sustainable economic development on large-scale, strategically assembled land • Increased tax base from new residents and businesses • Reduced burden on police, fire and human services

The plan calls for concentrated investment of subsidy and resources over the next several years and will demonstrate that there is a unified vision and commitment to neighborhood revitalization and economic recovery in Delray.

The successful implementation of the Delray Stabilization and Revitalization Plan will show that neighborhood revitalization is economic development when residents, businesses and public and community institutions share in the benefits.

The plan is set. Now is the time to implement.

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