Quiet. Quaint. Quirky. Living in the V. Real Estate Open House, Sunday, September 30, 2007

CDBmagazine.qxp 8/1/2007 9:17 AM Page 1

The Villages are a unique collection of Detroit east riverfront communities – each with Neighborhood Features: authentic personality and charm. This includes historic neighborhoods, high-rise condos, edgy lofts, and new construction homes. If you’re looking for a diverse, walkable, urban • Adjacent to Belle Isle and the neighborhood, discover the Villages. Housing prices range from less than $100,000 to Detroit Riverwalk more than a million, making living here an ideal option for nearly everyone. • Strong neighborhood associations • Community gardens and Living in the V! Open House garden clubs WHERE: Parkstone Apartments, 1415 Parker, Detroit, Michigan 48214 • Minutes from downtown and WHEN: Sunday, September 30, 2007, 1 p.m. to 5 p.m. Detroit’s cultural gems WHAT: Neighborhood presentations every half hour • Diverse educational options Realtor’s open house of properties for sale • Recreation opportunities, including rowing, tennis and For more information, call (313) 438-4143 or visit www.TheVillagesofDetroit.com. yacht clubs

Sponsored by: Church of Messiah Housing Corporation, Indian Village Association, English Village Brownstones and Lofts, Detroit Towers, Henry Ford Health System, St. John’s Hospital, Riverfront East Alliance, Friends School Detroit. Organized by the Villages Community Development Corporation, representing Bellevue Village, Berry Subdivision, Detroit Towers, East Village, English Village Brownstones and Lofts, Indian Village, Indian Village Manor, Islandview Village, Shoreline East, and West Village DETROIT BUSINESS MAIN 08-13-07 B 30 CDB 8/6/2007 4:54 PM Page 1

Living & Investing Quirky rehabs ■ From Page 28

EXPLORE WITH LISC AND ITS PARTNERS

The renovation of the Crofoot Building was funded in part by a Cool Cities grant and the investment opportunities that await you in Detroit neighborhoods brownfield tax credits. velopers in the 1800s. Instead of a hub for law and real estate offices or general and specialty stores, McGowan has revamped the space into a music and dining venue. The two-story, 20,000-square-foot structure at Pike and Saginaw streets is scheduled to open this month. It includes The Cro- foot Ballroom, a live concert hall and nightclub; The Pike Room, a nightclub for smaller bands; and Crofoot Café and Vernor’s Grille, both bar/restaurants. Through Neighborhoods NOW, “Oakland County needs a playground, LISC is collaborating with over 65 community organizations, and the people of Oakland County appreci- ate going into an older city with quaint making investments in $320M of housing and retail development, buildings. If we had built this complex with an eye to the future and the city’s great potential. from scratch in the suburbs, it would have cost much more than the $3 million we put into this project,” said McGowan, who ren- Call us or visit www.lisc.org/detroit ovated Detroit’s St. Andrews Hall in the late 1970s. to see the Investment Prospectus for Built in 1830, the Crofoot Building was CENTRAL WOODWARD,EASTSIDE, rebuilt in 1852 by Michael E. Crofoot, an Oakland County attorney and probate NORTHEAST,NORTHWEST, judge. The New Crofoot Building, as it was called at the time, included a full SOUTHWEST Detroit, and basement and first and second floors. A and each community’s plans and third floor at the front of the building was burned away in a 1950 fire. In addition to comprehensive investment strategies. his law office, the building housed other businesses. There’s never been a better time to invest in Detroit. Though McGowan had to gut the building, he restored as much of the original materials as possible. Now exposed brick, old wood, marble and glass set the stage for an inviting atmosphere. McGowan also built “green” by recycling block, brick and old timber, and installing a white roof.

Local Initiatives Support Corporation ON THE WEB 660 Woodward Avenue, Suite 1111 Read about what’s been dubbed Detroit, MI 48226 “automobile row” in Midtown, a collection 313-596-8222 of buildings with automotive history that www.lisc.org/detroit have made way for lofts, commercial space and museums. See our Web Extra coverage at crainsdetroit.com.

Page 30 FALL 2006 FALL 2007 CRAIN’S DETROIT BUSINESS CDBmagazine.qxp 8/1/2007 6:01 PM Page 1

150 Years Deserves a Little Noise!

Since 1857, Northwestern Mutual has quietly focused on one ambition—to do the right thing for the people who put their trust in us. Pardon us if we celebrate our anniversary a little less quietly.

The Wilshire Financial Group Brad P. Seitzinger, CLU, ChFC Managing Partner 901 Wilshire Drive, Suite 300 Troy, MI 48084 (248) 362-2220 [email protected] For Career Opportunities, please contact Marcy Tucker at (248) 244-6023 or log on to www.nmfn.com/wfg

05-2741 ©2007 Northwestern Mutual. Northwestern Mutual Financial Network is the marketing name for the sales and distribution arm of The Northwestern Mutual Life Insurance Company, Milwaukee, WI (NM), and its subsidiaries and affiliates, and “the quiet company” is a registered trademark. Brad Seitzinger is a General Agent of NM (life insurance, annuities and disability income insurance). Registered Representa- tive of Northwestern Mutual Investment Services, LLC, a wholly-owned company of NM, broker-dealer and member NASD and SIPC. NM and The Wilshire Financial Group are not broker-dealers. 7032-541 DETROIT BUSINESS MAIN 08-13-07 B 32 CDB 8/6/2007 3:00 PM Page 1

Living & Investing D inthe Restorations Focused efforts, big results

BY MICHELLE MARTIN field-based Jonna Cos. focused on 100 percent occupancy rate. Lofts find SPECIAL TO CRAIN’S DETROIT BUSINESS one of the New Center’s longtime Like the Garfield project, The strengths: the rental market. Lofts at New Amsterdam faced a he Lofts at New Amsterdam, And with the help of the New number of challenges — including success nestled in the New Center Center Council, $4.8 million in fed- longtime vacancy and neglect. For- T among technology start- eral loans and $450,000 in grants, merly known as the Graphic Arts with rental ups and the university communi- Jonna teamed with Detroit-based Building, the structure on Bur- ty, found a niche within an other- Zachary and Associates to develop wise turbulent housing market. the 52,000-square-foot Lofts at See Page 35 market When other developers were New Amsterdam. converting lofts for sale, South- The partnership made sense. Zachary and Associates already had found success in the rental market; the company converted the once-run down Garfield Build- ing on Woodward into rental units. The Lofts at Garfield, in the city’s Midtown, currently has a

Converting the former Graphic Arts Building (far left) at the New Center into the Lofts at New Amsterdam was not without its challenges. Water seeped into the interior (left) before the building was restored (above). The project was a recipient of the annual Governor’s Awards for Historic Preservation.

BY MICHELLE MARTIN House SPECIAL TO CRAIN’S DETROIT BUSINESS arl William Swanson’s a DIY 1907 Queen Anne home C was renovated with lots of elbow grease, plenty of ingenuity dream and a little Hol- lywood flair. Swanson come true bought the 1,800- square-foot historic home at 1754 Parker in Detroit’s West Village in 2004. “The place was a mess,” said Swanson, Carl William Swanson’s who undertook home was “a mess” before he took on the task of the project with his wife, Vittoria renovating it in 2004. His Katanski. “There was sewage in efforts were recognized the basement, the roof was falling with one of the 2007 in. There was old wiring, old Governor’s Awards for plumbing, the toilet was falling Historic Preservation. See Page 36

Page 32 FALL 2006 FALL 2007 CRAIN’S DETROIT BUSINESS CDBmagazine.qxp 8/2/2007 11:33 AM Page 1 CDBmagazine.qxp 7/31/2007 1:04 PM Page 1

BUILDINGBUILDING AA NEWNEW DOWNTOWNDOWNTOWN DETROITDETROIT REQUIRESREQUIRES AA STRONGSTRONG FOUNDATION.FOUNDATION.

For twenty years, The Detroit People upgrades have put us in a reliability stands ready to carry you to your Mover, owned and operated by Detroit and customer satisfaction bracket that destination in style and comfort, safely, Transportation Corporation, has served is the envy of municipalities across conveniently – and with a whole lot the transportation needs of over the country. of fun! 2-million annual Downtown Detroit Our 15-minute loop and five-train The past 20 years have been both residents, workers and visitors to the fleet ensure that a train will appear at challenging and gratifying to Central Business District. every station every three minutes, and Downtown Detroit - and to us. With continual upgrades, strategic that the time between stations will The foundation is strong, and we are improvements and conscientious average just over one minute! Forgive all moving in the same direction – maintenance, The People Mover has us if our pride is showing. a Downtown we can all value, love kept pace with the changing public Whether you are a frequent rider of and enjoy. Ride with us. Advertise transit industry. State-of-the-art necessity or a first-timer on a great with us. Grow with us. The best is computer hardware and software adventure, The Detroit People Mover yet to come!

“We’ll take you there”.™ www.thepeoplemover.com DETROIT BUSINESS MAIN 08-13-07 B 35,36 CDB 8/6/2007 3:07 PM Page 1

Living & Investing Restorations ■ From Page 32 roughs had been vacant for at least 30 years before Jonna acquired it from Southfield- based Farbman Group in 2004. The New Amsterdam project’s developers said they expect the TechTown-based lofts to have a similar occupancy rate. Cur- rently, 56 percent have been rented, with an average of two to three leases a month. “The rental market always has been strong in the University Cultural Center area,” said Ernie Zachary, president of Zachary and Associates. “We’re address- ing today’s demand, which is high-quality rentals.” Work on the Graphic Arts building, which houses 39 units, was completed in October 2006. Leasing began in January. The building was constructed in 1926, when it housed art studios that specialized in automobile advertising. Nearly 70 years later, it had major struc- tural damage and obsolete mechanical and electrical systems. “It was sitting deteriorating for so many years,” said Christine Piligian, vice president of development and management for Jonna. “It was more like a labor of love; it was very tough work to do.” Michigan historic preservation, brownfield redevelopment and federal rehabilita- tion tax credits helped make the project a reality. One of the challenges, the developers said, was incorporating current building codes while satisfying the historic preservation commission and maintaining an appealing floor plan. Zachary and Jonna also both credit their relationship with the New Center Council, which helped them secure the financing and tax credits for the project. Rental prices range from $850 to $1,550 for the 640- to 1,360-square-foot units. They offer secure parking, granite countertops, concrete floors and 12-foot ceilings. Five of them have patios. On the main level is a 1,900-square-foot space for commercial or office use. It remains available. The project is the first of two phases. The second, which is 70 percent completed, is the building at 6200 Second Ave., also in TechTown. Like the New Amsterdam project, it will have rental units. “Compared to the doom and gloom we hear about Michigan, this particular village (TechTown and the New Center) is doing well,” Zachary said. “If you look at the industry here, it is pretty solid, with the university, culture and hospitals.”

CRAIN’S DETROIT BUSINESS FFALLALL20062007 Page 35 DETROIT BUSINESS MAIN 08-13-07 B 35,36 CDB 8/6/2007 3:07 PM Page 2

Living & Investing Restorations ■ From Page 32 into the kitchen ceiling. It was the worst place on the block.” Knowing he always wanted to restore a historic house, Swanson applied for Michi- gan’s historic tax credits. He also contact- ed the DIY Network’s “Restoration Realities” program. Two weeks after he closed on the house, a production crew from “Restoration Real- ities” showed up to help him rehabilitate the dining room. Among the room’s historic gems: African mahogany ceiling beams, which since have been restored. The African woodwork, also found in the living room, was one of the reasons Swan- son bought the house. He liked that it never had been painted. Swanson, director of commercial revi- talization for Detroit-based U-SNAP-BAC, a nonprofit that promotes economic revital- ization on Detroit’s east side, used contrac- tors for some projects but did a lot of the work himself, including restoring the original windows, rebuilding the porch and clearing the debris. It took four, 40-yard trash containers to clear out the debris inside the house. The bulk of the restoration project took about a year. Overall, Swanson invested about $75,000 in the three-bedroom, one- bath house. The historic restoration credits have helped move the project forward, he said. He won’t pay state income tax for 10 years because the credit is 25 percent of his eligi- ble income. “It’s a great program,” he said. “The ap- plication process seemed a little intimidat- ing, because there’s a lot of paperwork, but once you get into it, it’s not difficult.” Swanson remains committed to the West Village neighborhood, which in July was one of 26 communities to receive Neighbor- hood Enterprise Zone tax cuts beginning in 2008. The NEZ-designated areas are eli- gible for an 18 percent-to-35 percent tax break for 15 years. West Village borders Indian Village and East Village. “That’s the next wave of development,” Swanson said. “Downtown is on one end, the Villages on the other end. We’re active- ly going after people who want to live in Detroit but don’t want to live in a loft; people who like the character of older houses.” Swanson, who continues to work on his home, doesn’t rule out the possibility of purchasing another house in West Village someday. “There are a couple of other houses in the neighborhood,” he said. “I would rehab one of the houses just to get it back into cir- culation faster. It’s a great opportunity for a young person or a couple to come in and restore.”

Page 36 FALL 2006 FALL 2007 CRAIN’S DETROIT BUSINESS DETROIT BUSINESS MAIN 08-13-07 B 37 CDB 8/6/2007 4:17 PM Page 1

Living & Investing D inthe Midtown Location, prices a draw BY DANIEL DUGGAN “There’s some uncertainty do projects along Woodward, Culture of CRAIN’S DETROIT BUSINESS right now, so there are a lot of but not really a market-rate people looking to rent for a lit- apartment development,” he aving spent most of his tle while before they buy some- said. Rental rates for Studio the corridor life living in the north- thing,” Sanzotta said. “It’s a One will be in the $850- to H ern suburbs, Eric one-year cycle; they tend to $1,200-per-month range. Schoenbaechler was looking rent for a year, then buy some- Other developers are inter- provides for something a little different thing.” ested in the rental market as when it came time to purchase his first attraction home. So when the 29-year- old gave up his Rochester Hills rental in June, he bought a condo in the Art Center ROOM FOR RETAIL? Town and Carriage Several of the residential Homes development projects in Midtown have near Palmer and John retail or commercial R. components, bringing the He was drawn to prospect of shops, Midtown because he restaurants and small can walk or ride his businesses to the area. bike to downtown and Ⅲ The Ellington: 13,000 is close to cultural square feet of amenities. retail/commercial “I thought this Ⅲ Willys Overland Lofts: up would be interesting to 18,000 square feet — something new to Ⅲ Studio One: 25,000 try,” said Schoen- square feet baechler, a designer in Ⅲ JOHN F. MARTIN Also planned is a the Birmingham office retail/commercial Eric Schoenbaechler was drawn to Midtown because he wanted to be close to development at 4240 of San Francisco- cultural amenities like the Detroit Institute of Arts. Cass Ave., near Canfield based furniture sales Street, developed by firm Design Within Reach. Among the large rental de- well, said Sue Mosey, president Detroit-based Midtown Developers and sales bro- velopments under construc- of the University Cultural Associa- Detroit Construction, said kers in Detroit’s Midtown area tion is the Studio One mixed-use tion in Midtown. principal Bob Slattery. are looking for more people development, on the 6-acre Construction is under way Renovating an old Auburn like Schoenbaechler to move to South University Village site at for 28 to 30 units at 74 Garfield Automobile Co. service the city. While units are sell- Woodward Avenue and Forest St. by developer Ernie center will bring 18,000 ing, demand has slipped from square feet of retail and where Vernors Ginger Ale used to Zachary. The project is expect- commercial, he said. recent history. be produced. ed to be completed in the Some of the tenants Since 2000, there has been The $35 million project will spring. include Ace Hardware and $1.6 billion in investment in include 130 one- and two-bed- Also planned is a 30-unit Papa John’s. the Midtown area including room apartments and 25,000 rental development by Scott “With the residential condos, institutional projects square feet of retail. Grand Lowell called the Beethoven, development that’s such as schools Rapids-based Prime Develop- which would be at Prentice happening here, you’re and the Detroit ment Co. is the project’s devel- and Third streets. getting some decent Institute of Arts oper, partnering with WSU. An additional 90-unit refur- density,” Slattery said of renovation. bished apartment development the Midtown area. Rental space for WSU stu- “There’s a lot of Lofts and dents and Detroit Medical Center is planned at 70 W. Alexan- momentum building on the condos make residents is a niche to be filled drine St. Crain’s reported in retail side. This has been up the bulk of in the area, said Larry Maran- April the developer is a group an underserved community the new resi- tette, principal with Detroit- led by McLemore Development for a long time.” dential pro- based Taktix, a real estate con- principals. jects, but rental sulting firm. He was hired as Sales might not be as brisk as Sanzotta units are be- an adviser to WSU to recom- they were a few years ago, but coming more common, said mend a use for the parcel as units are still selling at 55 W. Sabra Sanzotta, owner/broker well as three other properties Canfield St., said Colin Hubbell, of The Loft Warehouse residen- owned by the university. principal with the Hubbell Group, tial real estate brokerage. “There are a number of con- See Page 38

CRAIN’S DETROIT BUSINESS FALL 2007 Page 37 DETROIT BUSINESS MAIN 08-13-07 B 38 CDB 8/6/2007 4:19 PM Page 1

Living & Investing

■ From Page 37 Midtown which is developing the project. Roughly half the 28 units have been sold, English Village Brownstones he said, many to first-time buyers. That same buyer profile has driven sales Starting at $210,000 at the Art Center development. The 29 Quality Counts! Brokers Welcome units in Phase 1 were sold-out in June 2006 and nine of the 23 units in Phase 2 have • 2 bedrooms, 1926 sq. ft. been sold. (deck oﬀ master bedroom) Part of what’s making sales move at that • 3 bedrooms, 2750 sq. ft. Hubbell Group project are low prices, he • Brick exterior said, which start in the $150,000 range. “I look at the guys with units starting at • 2-car attached garage $300,000, scratch my head and say ‘Man, • 3½ baths I’m glad I don’t have to try to sell that right • Security patrol now,’ ” he said. Price factored into Schoenbaechler’s de- St. Paul • 3 levels of living space cision. “This was the right place for me,” Van Dyke Van Dyke Van Agnes • Terrace over garage he said. “But it was really affordable and

E. Grand Blvd. Lafayette • Fireplace that helps.” ownsend Field St. Field St. Baldwin Baldwin Sheridan St. Sheridan St. Townsend T 5%, 30 Yr. Mortgage JEFFERSON AVE. • Individual unit alarm system Daniel Duggan: (313) 446-0414, ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (

( ( ( ( ( ( ( ( ( ( ( [email protected] $10,000 Down. NEZ 12 Yrs. • Many other luxury features available • Adjacent to Indian Village/West Village Contact Michael Tyson Rates are subject to change. • Minutes from downtown (313) 579-1066 • Design your own unit MORE IN STORE website: www.englishvillagedetroit.com • email: [email protected] Other condo projects under construction or recently completed in the Midtown area: Ⅲ Crystal Lofts at 3100 Woodward Ave., developed by Detroit-based Belmar Development/Global Group, will include 17 two-bedroom units with prices in the $170,000 range. Ⅲ The Ellington, at 3670 Woodward Ave., nearly completed by Detroit-based Ram Children Explore the World at Development Co., includes 55 one-bedroom lofts at prices ranging from $170,000 to $300,000. Friends School in Detroit Ⅲ The Moorie Townhouse Estates at 104 Edmund Place, near Woodward Avenue, developed by Clarkston-based Platinum Building and Development, will have 20 units, with one-bedroom units starting at $198,000 and two-bedroom units starting at $225,000. Ⅲ Nailah Commons, a 35-unit town home development between Kirby and Ferry west of I-75, is to start construction in the fall. The project will be developed by Julio Bateau with units priced between $125,000 and $200,000. Ⅲ Park Shelton, where 220 hotel apartments are in the second phase of a conversion to condominiums at Woodward Avenue and Ferry Street by Walter Cohen of Park Shelton Associates L.P., of Southfield. Studios start in the low-$100,000s, one- bedroom units in the $150,000s, and larger 42 Years of Academic Excellence units go up to the high-$300,000s. th Ⅲ The Springfield Lofts, under construction Preschool through 8 Grade at 627 W. Alexandrine St., near Second Mandarin Chinese & Spanish beginning in 1st Grade Avenue, will include 10 lofts developed by Detroit-based Midtown Detroit Construction. Prices are near $300,000. Small Classes – BIG RESULTS! Ⅲ Willys Overland Lofts, under construction at 444 West Willis St., is a 75-loft project developed by Plymouth-based DeMattia Group Skillman High Performing Good School and Midtown Detroit Construction has units ranging from $180,000 to $600,000. 1100 St. Aubin Street - 313-259-6722 ~ friendsschool.org

Page 38 FALL 2007 CRAIN’S DETROIT BUSINESS CDBmagazine.qxp 7/31/2007 1:17 PM Page 1

WHY WE CHOSE NATIONAL CITY:

“The NCHAMP Loan helped us find the home of our dreams.”

When purchasing a home that has been built or renovated with the cooperation of the National City Community Development Corporation (NCCDC), it makes sense to consider our NCHAMP Loan. It provides low-interest mortgage lending to purchasers of single-family, owner- occupied homes. NCHAMP is an affordable mortgage program offered exclusively through National City. • The NCHAMP mortgage is a below-market interest rate mortgage. • The NCHAMP mortgage is for buyers in projects in which National City Community Development Corporation has made a direct equity investment. • Allows for product selection from a wide variety of programs. For further information, contact Dick Buss at 313-230-1615, Renee Kent at 313-230-1616 or Roz Gietzen at 313-596-8015.

NationalCityMortgage.com

Income restrictions may apply. All loans subject to credit approval and property appraisal. National City Mortgage, a division of National City Bank. Terms and conditions of this offer subject to change without notice. Rate may increase after settlement. NationalCityMortgage.com • ©2007, National City Corporation® DETROIT BUSINESS MAIN 08-13-07 B 40,41 CDB 8/6/2007 4:22 PM Page 1

Living& Investinginthe Envision healthy-vibrant-livable- sustainable-welcoming communities. Now make them happen with University of Funds find Detroit Mercy’s new Master of Community Development degree. BY TOM HENDERSON This unique program takes a comprehensive and CRAIN’S DETROIT BUSINESS holistic approach to the theory and practice of community development. The curriculum inte- rivate equity, flush with capital and grates human, organizational, physical and economic running out of deals in traditional aspects of community development. An inter- P places, has taken aim at the local af- disciplinary faculty provides a broad foundation fordable-housing industry, with an expect- for graduates to become leaders in facilitating ed deal in September expected to funnel community change. more than $32 million directly into metro Detroit. The program is designed for individuals in: Why are such sums of money attracted to • Human services organizations projects in distressed areas of Detroit and • Financial institutions • Business development organizations other communities? It’s because navigat- • Community development organizations ing the complex world of tax credits allows • Municipal administration banks, equity funds and builders to make • Urban planning money off projects that otherwise would make no financial sense. For more information, visit our web site at The Lansing-based Great Lakes Capital www.udmercy.edu/mcd, or contact our Fund, whose Detroit office helps fund af- Admissions office at 800-635-5020. We want great things for you. fordable-housing developments and commercial renovation in Southeast Michigan, is doing its first deal with a private-equity company, which wants to buy $300 million in bundled tax credits during the next three years. Until now, once a year, Great Lakes bundled and sold tax credits solely to banks and related government institutions such as Freddie Mac and Fannie Mae. Its 15th fund, which was raised late last year, bought $82.4 million in credits. This year, Great Lakes is raising two funds — a $100 million fund in September from a private-equity company, and a second, about the same size, for banks. The bank fund is scheduled to close by the end of the year or early next year. Dennis Quinn, president of the Detroit region, said he can’t name the private-equity company because final details are being worked out, but he said Great Lakes Capi- tal expects to raise two other funds of the same size in 2008 and 2009 from the same private-equity company. The first fund is earmarked to spend $32.3 million for tax credits on projects in metro Detroit, $13.6 million elsewhere in Michigan, and the rest in Great Lakes’ other markets of Wisconsin, Indiana and Illi- nois. Banks, private-equity funds and builders can make money off projects that rent the equivalent of a $1,200-a-month apartment for $400 or $500 by turning the typical mortgage model on its head. Traditionally, buying or developing real estate involves a modest down payment and substantial debt. Much of the cost of the monthly note pays the interest on the debt.

Page 40 FALL 2007 CRAIN’S DETROIT BUSINESS DETROIT BUSINESS MAIN 08-13-07 B 40,41 CDB 8/7/2007 2:56 PM Page 2

D the Getting things done nd Detroit

But in affordable housing, 80 percent or 90 percent of a project might be funded by equity. With debt at a minimum, the monthly cost to live there is lowered. Here’s how the financing works: Devel- opers apply for state and federal tax credits, which can include brownfield-redevelopment, low-income housing and historic tax credits. A syndicator, such as Great Lakes Capi- tal, raises a pool of money from its investors and buys the credits at a ne- Banks, private- gotiated discount from the builders. equity funds and The investors get the credits against builders can future tax liabili- ties. They make a make money by profit on the discount and deduct turning the the tax credits from their corpo- typical mortgage rate taxes over 10 years. model on its Banks get another payoff. By par- head. ticipating in affordable housing and redevelopment projects, they meet the requirement of the 1977 Community Reinvestment Act, creat- ed by Congress to counter redlining and discrimination in banking. The last few years, the demand for credits in a low-interest environment was high. Quinn said that in some regions of the country last year, syndicators paid more than $1 for each $1 of tax credit, with banks willing to take a small loss to satisfy terms of the CRA. He said local banks paid 95 cents per credit in his 15th fund last year, but that the pendulum has begun to swing in South- east Michigan as banks, under pressure from the local economic environment, have demanded a bigger up-front discount. Regional banks that routinely buy tax credits include Chase, Comerica, Fifth Third Eastern Michigan, National City, Key Bank, Huntington Bank, Charter One and LaSalle Bank Midwest N.A. Quinn estimated the private-equity fund will pay between 88 cents and 92 cents per dollar of credit, and he expects banks in the fund after that to pay between 85 and 89 cents. Tom Henderson: (313) 446-0337, [email protected]

CRAIN’S DETROIT BUSINESS FALL 2007 Page 41 DETROIT BUSINESS MAIN 08-13-07 B 42 CDB 8/7/2007 4:55 PM Page 1

Living & Investing D inthe Getting things done Community groups gain momentum

BY CONSTANCE CRUMP SPECIAL TO CRAIN’S DETROIT BUSINESS 7 They’re 3 ommunity development driving corporations are the dri- Detroit C ving force behind a grow- 2 ing tally of neighborhood revivals Woodward Ave. 1 75 5 10

in progress. Dyke Ave. Van $317 Fwy. Southfield Gratiot Ave. These groups have an in- Grand 94 creased economic role in an array River Ave. million in of projects through creative col- laborations and more funding op- 96 tions. 4 projects Nonprofit CDCs act as the developers of last resort, bringing Michigan Ave. together public and private re- Detroit River sources to carry out planning done at the neighborhood level. According to a recent Detroit Local 6 City of Detroit Initiatives Support Corp. study, de- Detroit/suburbs velopment projects are up 17 per- Canada cent over last year, measured by dollar value. Detroit LISC supports nonprofits through technical assistance, LAURA KOWALSKI project financing, operating support and training. It has a campaign under way, THE NEXT WAVE OF INVESTMENT “Neighborhoods Now,” which This map highlights the parts of the city of Detroit and nearby suburbs seeks to promote $100 million in that are targeted for neighborhood development. new residential and commercial The Detroit Local Initiatives Support Corp.’s “Neighborhoods Now” development during the next two initiative seeks to spur $100 million in investment in seven investment years in strategic-investment ar- zones with different priorities. eas. The initiative has leveraged 1 Central Woodward: Mixed- 5 Detroit-Grosse Pointe millions of dollars into area income housing, education, Collaborative: Commercial neighborhoods through 2005-06. health care corridor cleanup, collaboration among neighborhood associations “We have invested $38 million 2 Far East/Lower East: in projects and organizations. It’s Housing, retail, education 6 Fort-Visger Collaboration resulted in nearly $320 million in (Detroit, Ecorse, Lincoln Park, 3 Northwest Detroit: River Rouge): Residential, retail projects: residential, commercial, Residential, commercial community buildings, green 7 Van Dyke — 8 Mile Gateway Southwest Detroit: Increase space and new facades,” 4 Collaborative (Detroit, Warren, market-rate housing, socio- Center Line): Attract retail, improve said Deborah Younger, economic diversity facades the new executive director of Detroit LISC. ning now, piece by piece. I don’t generated, businesses developed. “There’s excitement think that fragmentation is hurt- Until we’re the city of the future and energy. Concern for ing the city, because it’s market- in more than rhetoric, CDCs are neighborhoods is echoed driven,” said Ernest Zachary, by many groups. There’s going to lead by example,” president of Zachary & Associates, Zachary said. recognition that strong Detroit-based development plan- CDCs can be made up of neigh- neighborhoods are going ning and finance consultants. borhood residents, businesses in Younger to rebuild cities, con- Because CDCs are community- a shopping district, or associated tribute to economic develop- based, they act on opportunities ment.” with churches, all with board that defy conventional views. That mindset is a change from members who come from the Detroit’s past. “The perception that we’re in a neighborhood. “In olden days, Detroit was defensive mode shapes decision- “They’re equipped to decide known for its planning — such as making. Except in the best CDCs; whether or not a project is appro- Lafayette Park. It came from on they see a place where the popula- high. CDCs are doing that plan- tion is growing, jobs are being See Page 45

Page 42 FALL 2007 CRAIN’S DETROIT BUSINESS CDBmagazine.qxp 8/1/2007 5:44 PM Page 1

This is a picture of a city with new hope and new life - thanks to so many nonprofit community development organzations. MSHDA is proud to support those who support Detroit.

Michigan State Housing Development Authority www.michigan.gov/mshda

MSHDA is proud to be a sponsor of Model D. To learn more about model sm D neighborhoods across Detroit, visit www.modeldmedia.com CDBmagazine.qxp 8/1/2007 6:30 PM Page 1 DETROIT BUSINESS MAIN 08-13-07 B 45 CDB 8/7/2007 4:52 PM Page 1

Living & Investinginthe D ■ From Page 42 Getting things done priate, needed or wanted,” said make greenfield development of the local housing slump. Bob Chapman, executive direc- more appealing. “We have money to build (the COMMUNITY DEVELOPMENT tor of WARM Training Center in “Private developers don’t remaining housing units) but ■ At Mack Avenue and Alter, want the hassle. Time is money. only two buyers,” she said. “The Detroit, which provides advice the Warren Connor Development on energy-efficient homes and We’re helping to overcome difficulty is finding qualified Coalition and Eastside Land Inc. training for new homeowners. that,” she said. buyers.” completed a 58,000-square- Said LISC’s Younger: “People Detroit LISC’s latest study of Younger concurred: “A foot retail center. who live in the neighborhoods development projects by com- downturn in the economy hits ■ In the same neighborhood, have to save themselves. They munity groups bears her out. the housing market, especially Church of the Messiah Housing can stem decay and turn neigh- Between June 2006 and May in older neighborhoods. We Corp. is planning up to 40 affordable homes. borhoods around. Neighbors 2007, 1,696 residential units have to ‘grow’ buyers. We also were planned, under construc- have foreclosures. Michigan is ■ prioritize, based on their assets. Grandmont Rosedale tion or completed, compared third in the nation.” Development Corp. renovated (They) attract private invest- with 1,343 units between Janu- U-SNAP-BAC is trying some the 7,600-square-foot Lindsay ment with planning legwork ary 2005 and May 2006. new tactics to cope with the Building and completed 24 (through CDCs). They assemble Commercial projects total challenges. store facade updates. sites, match plans and investors’ 303,638 square feet in the new “We are working on a part- ■ Southwest Detroit has 300 needs, direct them to places study, compared with 261,446 nership with Thrivent-Habitat for residential units under construction or completed in where they’ll be welcomed.” square feet in the earlier study. Humanity. We’re trying for a $1 the past two years, the Odd However, sometimes CDC’s Total value of projects in the million ‘Thrivent Builds Neigh- relative amateur status can be a Fellows Hall renovation on new study is $317.4 million, borhoods’ planning grant — Vernor Highway and the handicap when compared with compared with $270.9 million in half grant, half loan — for the Mexicantown Mercado. more advanced organizations the earlier period, an increase 16-block Morningside Com- ■ On the northeast side, Detroit in other big cities. of 17 percent. mons” neighborhood action Community Initiative Inc. built “In other places, attention is The projects are blossoming plan, Smith said. “We need to 48 senior apartments, with 50 paid to CDCs — Cleveland, all over town, Younger said. deal with abandoned housing, single-family homes under Chicago,” Chapman said. (See list, this page.) develop a program to get assis- construction in the Gratiot and Besides disrespect in some Linda Smith, executive direc- tance with boarding-up, cutting Rochelle area. cases, site assembly and tor of U-SNAP-BAC, a CDC, has grass. The banks and mortgage ■ On the east side, U-SNAP- cleanup of land are classic im- seen a big increase in participa- companies aren’t getting BAC plans 40 homes to add to pediments to development, tion at community meetings. around to it. Formerly we re- the 27 completed at East Warren Avenue and Alter Road. along with zoning and title is- Smith is encouraged on that lied on the city (for all these sues. These are factors that can front but troubled by the effects things).” — Constance Crump BACK BY VERY POPULAR DEMAND

The annual Crain's Detroit Business Living and Investing in the D special issue will be published August 13, 2007. This year's edition will have the inside scoop on how developers are sparking a boom in housing and other projects in and around Detroit.

PY OR Subscribers to Crain's SINGLE CO BULK SALES Detroit Business will 1-24 copies - $2.50 each receive one copy of this 25 or more - $1.50 each Plus S & H special issue. But a limited quantity of additional copies are available for purchase. This issue will be ideal for recruiting, your customer waiting area, or just for personal enjoyment.

TO ORDER COPIES TODAY go to www.crainsdetroit.com/litd or call 1-888-909-9111

CRAIN’S DETROIT BUSINESS FALL 2007 Page 45 DETROIT BUSINESS MAIN 08-13-07 B 46 CDB 8/7/2007 4:56 PM Page 1

Living & Investing D inthe Getting things done Faith-based development

BY MARTI BENEDETTI Churches SPECIAL TO CRAIN’S DETROIT BUSINESS

hen the Rev. Edgar lead Vann looks out the W window of his Second Ebenezer Church on East Grand housing, Boulevard, he sees the fruits of his church’s labor: housing, a school, jobs and retail stores. retail The church and its Vanguard Community Development Corp. projects have put many of those in place during the past 14 years. Second Ebenezer also is building a new church at I-75 and McNichols Road that is scheduled to open in the fall, bringing the church’s total investment to $65 million, Vann said. The old church will be used for community develop- WILLIAM PUGLIANO The Rev. Edgar Vann leads Second Ebenezer Church, which is among ment programs. several Detroit churches working on economic development. “The churches are the pre- mier community developer of for $2.1 million in the spring. being developed by Detroit our city,” said Vann, pastor of The 18-hole course was origi- businessman Herb Strather. Second Ebenezer, near the nally built in 1914 by promi- The church’s community de- city’s New Center. “We have to nent members of the Jewish velopment corporation Amand- do this to meet (all of) the needs community. Since Greater la (a Zulu word meaning power of our people, not just spiritual Grace bought it, it is the only to the people) and Strather needs.” black-owned and -operated golf broke ground in June. Con- Second Ebenezer is one of course in the state and one of a struction is expected to begin several major Detroit houses of few in the country. in September, and the homes worship spending millions of Ellis, also bishop of the Pente- will be priced from $145,000 to dollars to create varied hous- costal Assemblies of the World, $225,000. ing, business and educational said the church’s efforts are Hartford Memorial Baptist choices for the residents of even more important as the Church, on Detroit’s northwest their neighborhoods. neighborhood feels threatened side, and its pastor, the Rev. Church pastors often think with the closing of the Eighth Charles G. Adams, are pioneers of their neighborhoods as small Precinct police station and a in city economic development cities, said the Rev. Charles El- YMCA branch, along with the as well. About 10 years ago, it lis III, pastor of the $36 million possible closing of Redford High took a leadership role in buy- Greater Grace Temple on the School. ing land at Seven Mile and city’s northwest side. “What To keep the area viable, Ellis Meyers roads and getting we’re creating is a campus said, the church plans to ac- Kmart to locate in the city. Re- which we call the city of David. quire three retail centers and a cently, the Kmart was replaced When we built this church, we gas station on Seven Mile Road. by Home Depot. thought of it being a city that Fellowship Chapel Church on Hartford Memorial Commu- would offer all kinds of activi- Detroit’s west side completed a nity Affairs Director Edith ties.” new, $16 million church in Clifton said Adams was instru- Greater Grace’s 20-acre June 2005. The church is on 10.5 mental in starting the Summer “city” includes a banquet and acres of formerly blighted land, Leadership Institute 10 years conference facility, retail cen- said the Rev. Wendell Anthony, ago in partnership with Harvard ters, an 89-unit apartment com- Fellowship Chapel’s pastor. University’s Divinity School. plex for senior citizens, a The second phase of develop- Adams’ two-week class on eco- Montessori School and the his- ment is Fellowship Village Es- nomic development and toric Rogell Golf Course, pur- tates, 126-market rate, single- churches typically draws 50 chased from the city of Detroit family homes and town homes See Page 49

Page 46 FALL 2006 FALL 2007 CRAIN’S DETROIT BUSINESS CDBmagazine.qxp 7/31/2007 5:27 PM Page 1 CDBmagazine.qxp 8/1/2007 5:17 PM Page 1 DETROIT BUSINESS MAIN 08-13-07 B 49 CDB 8/8/2007 4:25 PM Page 1

Living & Investing D inthe Getting things done ■ From Page 46 pastors to the university’s Cam- longstanding relationship with Mile Road and Woodward Av- bridge, Mass., campus. “A num- Detroit pastors to help them un- enue has invested $60 million in ber of Detroit pastors have tak- derstand how to jump-start de- a new church, a parking struc- en it,” Clifton added. velopment. “We also recently ture and an administration Little Rock Baptist Church on met with the Council of Baptist building. Its second phase in- Woodward Avenue oversees $50 Pastors. We plan to meet with cludes 50 single-family homes, million in investment in its them regularly.” which the church’s community neighborhood, south of High- The faith-based Kendall Com- development corporation hopes land Park, and beyond. munity on the city’s west side is to start next year, said the Rev. The Rev. James Holley, pastor providing that kind of help. An Marvin Winans, pastor. of Little Rock for 35 years, said arm of the New Gospel Church of “Churches leading economic the church has tried to stay “cut- God and Christ, a few miles from development are important for ting edge” with economic devel- AARON HARRIS Kendall, it helped build 38 mod- a real comeback for this city,” opment. Little Rock and its for- Little Rock Baptist Church oversees ular homes along with Champi- Winans said. profit community development $50 million in local investment. on Enterprises; 42 more houses corporation Rock Property Man- are planned. agement L.L.C. employ 476 people of St. Regis Detroit Partners L.L.C., “It’s necessary that the BEYOND TITHES which includes 16 other Detroit in enterprises that include edu- church take a leadership role in Local churches are driving cation, housing and retail — ministers who are part of De- changing the mindset and val- nearly $300 million in even a soon-to-open pharmacy. troit 20/20. ues of the residents,” said development, according to Holley is involved with seven Jacquelyn Williams-Arm- Veronica Adams, Kendall research for this story. other ministers in developing strong, Michigan State Housing Homes consultant. Churches’ community through the Michigan Community Development Authority director of Second Ebenezer’s Vann development corporations Action Program a 144-unit apart- the Southeast Michigan Devel- hopes his church’s Milwaukee partner with other nonprofits, ment building near Eastern opment Division in Detroit, Junction Small Business Center will developers and city, county and Market. Privately, Holley is de- said the organization seeks to help do that. The business incu- state governments. Funding veloping 14 market-rate condos increase affordable rental hous- bator is designed to help people comes from church groups, ing through church collabora- lenders, government grants and at Holbrook and John R that are start businesses in industries organizations such as the Local set to open in September. tion. such as information technology. Initiatives Support Corp. Holley also owns 25 percent She said the MSHDA has a Perfecting Church at Seven

Willys Overland Lofts Reinventing Detroit. Reinventing Your Life.

Willys Overland Motor Company Showroom c., 1930 photo courtesy of Wayne State University

LOFTS FOR SALE 1,000 –3,000 SF Penthouse units available

SALES OFFICE INFORMATION 444. W. Willis Detroit, MI 48201 734.354.6125 or 313.832.2000 www.willysoverlandlofts.com

CRAIN’S DETROIT BUSINESS FFALLALL20062007 Page 49 DETROIT BUSINESS MAIN 08-13-07 B 50 CDB 8/8/2007 4:27 PM Page 1

Living & Investing D inthe Neighborhoods Opening doors to buyers

BY AMY WHITESALL worked with Huntington open houses this spring. “I Community SPECIAL TO Home Lending to track the had a Realtor who called me CRAIN’S DETROIT BUSINESS sales. say he had 30 people come “The way we approached through,” said Walt open houses arsha Bruhn raised it wasn’t just in terms of how Baczkowsi, Metropolitan Con- four kids in North many houses sell right solidated Association of Real- M Rosedale Park in the away,” said Bruhn. “Some- tors CEO. “He said, ‘I’ve nev- allow hundreds 1970s and ’80s. For a few times people aren’t ready to er had 30 people come years after her divorce, she buy, but it creates an aware- through a house. They were rented on the east side, but ness of the lined up outside to check out when she heard her old neighborhood. I waiting to come neighborhood was having a know some peo- “I had a Realtor in.’ community open house in ple who (came “Thirty peo- neighborhoods 1988, Bruhn, director of De- to the open call me to say he ple walking troit’s planning commission house and) through is al- from 1983 to 2005, decided to bought a house had 30 people most unheard take a look. here five years of, particularly “The market was down at later. It’s like come through. when there are the time, as it is now, and planting 16,000 proper- some of the neighborhood seeds.” He said, ‘I’ve ties on the mar- residents got together and The idea ket (in Wayne, decided to have a (communi- seems to be ger- never had 30 Oakland and tywide) open house,” she minating. Macomb Coun- said. “I thought it was great Grandmont people come ties).” that I could go to all these Rosedale, Community houses in one Sunday after- Boston-Edison through a house. open houses noon. I bought the third one I and the Universi- give neighbor- saw. I fell in love with it im- ty District com- They were lined hoods a chance mediately and bought it a munities all to debunk sub- week later.” have held com- up outside urban precon- North Rosedale Park is a munity open ceptions and diverse, family-oriented houses this waiting to come showcase what neighborhood. It has old year. Suburban makes them trees, custom-built homes, communities in.’ ” special — be it a and its own park and com- have borrowed historic desig- munity house. But for the the idea too; for Walt Baczkowski, nation, schools, past 18 months, Bruhn’s 1936 example, Metropolitan intriguing ar- Tudor Revival home has Bloomfield Consolidated chitecture, Association of stood between two vacant Township held walkability or English Village Brownstones Realtors in Detroit homes, stark reminders that one based loose- family friendli- no neighborhood is immune ly on a model ness. to Southeast Michigan’s soft used by the city of Berkley in Grandmont Rosedale’s for- COME AND VISIT real estate market. 2006. The Villages, a consor- mat, which several neigh- The Villages, a consortium of A lack of neighbors isn’t tium of Detroit neighbor- borhood events borrowed, neighborhoods and good for the neighborhood, hoods and condominium as- included an initial back- condominium associations which is why four neighbor- sociations, has a ground session with real es- bordered roughly by Baldwin on hood associations in Grand- multineighborhood open tate agents, the open houses the west, Mack on the north, mont Rosedale organized a house in the works for Sept. themselves, and ongoing pre- McClellan on the east and the Detroit River on the south, has community open house in 30. sentations about the neigh- a multineighborhood open May 2006. Real estate agents Community open houses borhood in a central spot. house in the works for Sept. 30. opened 62 houses on one work for real estate agents “One of the things we The gathering site for the Sunday in May 2006, and because they bring many po- struggle with is: People will informational presentations more than 200 people toured tential buyers to a concen- get into this neighborhood every half hour from 1 to 5 p.m. them. Eight houses sold to trated area at little cost. on a home tour or whatever will be the Parkstone open house visitors in the Where a typical open house and say, ‘My God, I had no Apartments, 1415 Parker. See next two to three months, might attract five to seven idea this kind neighborhood www.thevillagesofdetroit.org. said Bruhn, who chaired the people, more than 200 people existed in Detroit,’ ” said event — along with another signed in at each of the James Hamilton, president one in May 2007 — and neighborhood community See Page 52

Page 50 FALL 2006 FALL 2007 CRAIN’S DETROIT BUSINESS CDBmagazine.qxp 8/8/2007 3:07 PM Page 1

Through our work the Detroit Region has seen...

$1.5 billion in New Business togetherwe’ve been helping businesses Investment open and create new jobs in the Detroit Region 8,650 New Jobs

355 Companies Expanding or Relocating

We are the Economic Development experts for the Detroit Region. We work with all businesses, large and small; start up or mature. Whether you’re automotive, in an emerging industry or a business service, we can help you do business in the Detroit Region.

Call 313.596.0310 or visit: www.detroitchamber.com. DETROIT BUSINESS MAIN 08-13-07 B 52 CDB 8/8/2007 6:15 PM Page 1

Living & Investing D inthe Neighborhoods ■ From Page 50 of the Historic Boston-Edison As- toric districts. day it takes about three hours sociation, whose neighborhood “We have houses that take a to mow the grass because peo- FOR SALE includes homes built by promi- special buyer,” said Judy ple stop and talk.” nent turn-of-the-century De- Delusky, a 15-year resident of Delusky’s neighborhood is Homes for sale at the time of publication. troiters like James Couzens Indian Village. “You have to be just one part of The Villages’ and Sebast- willing to September open house, which ian Kresge. take on the will include the full spectrum “There are “We have houses that challenge of of urban living, from historic people who an older homes to condos overlooking just aren’t take a special buyer. ... home and the river. aware of you have to The open house might not $239,500 these places. You have to accept that accept that if generate more than a handful Grandmont subdivision It’s hard to your door is of immediate sales, said Steve 16730 Shaftsbury find a buyer if if your door is green green and Wasko, president of The Vil- (the neigh- you want it lages Community Development borhood’s) and you want it blue, blue, you Corporation, but other commu- not on their have to fill nities have shown it doesn’t radar.” you have to fill out a out a lot of pa- hurt; and taking action feels By hosting perwork or better than waiting around $375,000 open houses, lot of paperwork.” else scrape wringing your hands. neighbor- away the “Who knows who will take a Indian Village Judy Delusky, resident, 1438 Iroquois hood associa- Indian Village paint and card or packet and come back a tions can help show that it year from now or give it to a real estate really was friend or colleague?” said agents understand what it blue to begin with. Wasko, who’s also president of means to live in a certain “On the other hand, you’re the Historic Indian Village Associa- neighborhood, from painting getting into an area where you tion. “I think a lot of this is to property tax credits. It can be as involved as you want standing up, opening the door $625,000 makes for better-informed to be. … Everybody knows and saying very loudly, ‘We’re Indian Village buyers and better-prepared everybody else right down to open for business. Come see 2508 Seminole neighbors, especially in his- their dog’s name, and on Satur- us.’ ”

RiverCafe's expansive riverfront view is as delectable as its contemporary American menu. The restaurant joins innovative culinary trends with the freshest ingredients.

Call ahead and request a table with a view 1-313-568-8699.

Detroit Marriott at the Renaissance Center, Level Three GM Renaissance Center 313.420.0313 detroitmarriott.com/dining pulsedetroit.com

Page 52 FALL 2007 CRAIN’S DETROIT BUSINESS DETROIT BUSINESS MAIN 08-13-07 B 53 CDB 8/8/2007 4:29 PM Page 1

Living & Investing D inthe Hamtramck A home for the world BY CONSTANCE CRUMP Joseph Campau and Conant. tax abatements. The city also SPECIAL TO Erik Tungate, Hamtramck’s has a new group, the Hamtramck CRAIN’S DETROIT BUSINESS director of community and eco- Economic Development Corp., nomic development, said the with a board composed of Ham- mmigrants from South Asia city faces two hurdles. The city tramck and Detroit officials, and the Middle East are does not own property ear- and support from General Motors I changing the face of Ham- marked for renewal, and its city Corp., American Axle & Manufac- tramck and shifting the city’s services budget leaves little turing Holdings Inc. and National economic development strate- room for funding development. City Bank. gy. The enclave city mostly sur- Investment is taking place The creative class attraction rounded by Detroit was once despite the challenges. to cities helps too. The Ham- solidly Polish, but now Poles Vet Park Lofts, a four-unit, tramck Art Collective, based at are only one of 29 ethnicities in $750,000 live-work development Café 1923 on Holbrook Street, is its 2.2 square miles. on Joseph Campau by Ham- raising money to renovate a The shift has wrought change tramck-based Unique Urban building for offices and low-cost in retail demands and put a new Space L.L.C. just opened. Two de- artist studios. face on neighborhoods. After velopers have completed 80 of Collective President Christo- the Polish population, Bengalis 153 in-fill housing units on scat- JOHN F. MARTIN pher Schneider said the group are the second-largest group, tered sites in the city. The Christopher Schneider is raising has prepared a business plan to followed by Yemenis and homes by Rochester Hills-based money to renovate a building for secure a decommissioned city Ukrainians. Polish meat mar- Grand Haven Homes L.L.C. and artists’ studios. building. The planned $150,000 kets and fraternal clubs sit Town Center Homes L.L.C. sell for tramck’s Neighborhood Enter- project includes studios, exhibi- cheek-to-cheek with sari shops, $110,000 to $140,000. prise Zone, set up 18 months tion space, a gift shop and Bangladeshi restaurants and Several loft conversions are ago to encourage second-story shared resources such as a Yemeni video parlors along in the works because of Ham- loft-living by offering property darkroom and kiln.

With $29.5 billion in investments since 1994, Detroit is reinventing itself and the Detroit Economic Growth Corporation is leading the transformation. As the City's lead economic development agency, we're the one-stop shop for development and business attraction in the City. We can support your investment decisions with good market information, customized site selection services, and bureaucracy-busting through our relationships with key city departments. Now is the time to pick out your downtown business headquarters or your new riverfront condo. DEGC is here to assist you.

Detroit Economic Growth Corporation Come and experience urban living like nowhere 500 Griswold, Suite 2200 else in Southeast Michigan. Detroit, MI 48226 313-963-2940 CHOOSE DETROIT!

CRAIN’S DETROIT BUSINESS FFALLALL20062007 Page 53 DETROIT BUSINESS MAIN 08-13-07 B 54 CDB 8/8/2007 4:54 PM Page 1

Living & Investing D inthe Highland Park Resurrecting a city BY MAUREEN MCDONALD million plaza will rise up on a Highland Park. This spring he Developer SPECIAL TO 40,000-square-foot brownfield took over the top job from in- CRAIN’S DETROIT BUSINESS site. ternationally acclaimed plan- “It’s great to have the com- ner Harriet Saperstein. has faith in n Macomb or Canton town- munity support you,” said “I’m feeling very bullish ships, the groundbreaking Mike Curis, partner of Curis En- about Highland Park’s future,” I for a new shopping plaza terprises. His ability to secure Emanuel said. “Harriet Saper- former might not elicit a community- German-based grocer Aldi Foods stein left a very stable organi- wide celebration. In Highland and Detroit-based Communicat- zation.” Sears site Park, the anticipated shovel ing Arts Credit Union led to a five- Among the highlights are au- ceremony at the Shops at Wood- year property tax break. His tomotive, cultural and distrib- ward Place later this month is two sons, Michael and Antho- ution center developments. ny, and partner Mark Thomas, Bill Snethkamps’ third- and are also working fourth-generation, on the deal. mega-dealer fami- “We’ve spent While Highland ly occupies an in- nearly two years creasing presence planning, jump- Park has its along the north ing through end. Plans are un- hoops. Fortunate- struggles, it has der way to build Al ly we have a repu- Deeby Dodge within tation for main- the dealership’s taining and received a steady elongated pres- managing city ence. properties,” said procession of The new store Curis, who also will be named for runs the Mack and new job-creating Alphonse Deeby, Alter Plaza and the the general man- Riverbend Plaza on ventures ager of the High- Jefferson. land Park opera- While Highland including tion. The store Park still has its will occupy 80,000 struggles, it has Budco, Visteon, square feet. received a steady Highland Park procession of new Technicom and is one of eight job-creating ven- communities tar- tures. Those in- Coca-Cola. geted for state as- clude investments sistance through by Budco (2000), the Cities of Visteon Corp. (current), Techni- Promise program. The pro- com Group (2001), Coca-Cola Co. gram is helping restore the Mc- (2006), Forman Mills Inc. (2006) Gregor Library south of the Davi- and Walgreen Co. (1998). Along son, a preservationist jewel Woodward Avenue, the Model T because of its Beaux Arts-style JOHN F. MARTIN Plaza and Highland Park Place are architecture. It also is the type Michael Curis (front) flourishing. And longtime city of project expected to make expected to attract political and business Bill Snethkamp Chrysler has succeeded where business leaders wearing their neighborhoods safer and more others have failed. He Jeep is buying up properties to Sunday best. walkable. and his sons Michael become one of the largest urban At least four developers tried “The city has had a number Curis Jr. (far left) and dealerships in the nation. of incidents to recover from,” Anthony Curis (right) and failed to resurrect the site Perrin Emanuel, president of cautions Josephine Powell, as- and partner Mark where the Sears department HP Devco, the commercial and sistant Highland Park attor- Thomas are building a store departed in the mid-1980s. retail development organiza- ney, noting that about 600 resi- $6 million plaza at the With the continuing help of HP site of the former Sears tion — and a former tight end dential and commercial Devco department store. , the nonprofit develop- for Highland Park High School structures are on the danger- ment arm of the city, the Wayne — carries the ball forward as ous buildings list. The city is County Land Bank and state business and grant recruit- Cities of Promise efforts, a $6 ment and city liaison with See Page 56

Page 54 FALL 2006 FALL 2007 CRAIN’S DETROIT BUSINESS living in the d size.qxp 8/8/2007 3:11 PM Page 1

Woodward 200 “Highlighting History, Promoting Pride and Rallying the Region”

This year marks the 200th Birthday of Woodward Avenue. In celebration of this historic event, the Woodward Avenue Action Association (WA3) has planned special events that are designed for business participation. Don’t miss the opportunity for your business to be a part of these activities:

x Organize a team and come out for the historic “Hands Along Woodward” event on Sunday, August 19 at 2:00 p.m. Visit www.WoodwardAvenue.org for more information.

x Celebrate Woodward Heritage Week, August 27 – September 3. Register your business in “Shop Woodward”, a special retail and shopping promotion. To register visit www.WoodwardAvenue.org or call 248-288-2004 for more information. Shoppers can also download the “Shop Woodward Passport to Savings” coupon for savings at more than 100 participating businesses listed online.

Call the WA3 at 248-288-2004 to joint the WA3 and learn how to involve your businesses in Woodward economic development, promotion and tourism efforts.

PRESERVING RESTORING REBUILDING

Architecture www.blossomsbirmingham.com 33866 Woodward Avenue Birmingham Landscape Architecture 248. 644. 4411

Urban Design

CONVENIENT. CUSTOM. Interior Design CORPORATE. CONSUMER. Graphic Design WHEN THE PRESENTATION IS AS IMPORTANT AS THE GIFT,COUNT ON US TO CREATE AND EXECUTE YOUR MESSAGE WITH THE PERFECT WRAPPING, RIBBON, CALLIGRAPHY & SERVICE.

28834 Woodward Avenue Royal Oak, Michigan 48067 T 248 547 9094 F 248 547 9013 Hamilton Anderson Associates 1435 Randolph, Suite 200 www.lisasgiftwrappers.com Detroit, MI 48226 p 313 964 0270 www.hamilton-anderson.com

• gardens • A tory rt De his co • • a uty rc a hi be te easy to ﬁ ll a c At Cranbrook, it’s • tu ry re ve • o n c a is t summer day. Or two. Or three. u d r • e • s w i m With a natural history museum, contemporary art museum, two classic m

i homes, 40 acres of gardens, a world-class swimming pool and more, n g Cranbrook is the perfect place to spend your summer days. For more •

d information, including how to host an event or party at Cranbrook, i

o visit www.cranbrook.edu.

s •

Cranbrook Academy of Art f

a Cranbrook Art Museum m

i Cranbrook House and Gardens l

y Cranbrook Institute of Science f

u Cranbrook Schools n • DETROIT BUSINESS MAIN 08-13-07 B 56 CDB 8/8/2007 4:31 PM Page 1

Living & Investing Highland Park

■ From Page 54

using a combination of community block grants and other funds to address the prob- lem. Blight elimination is a key factor in FOROLS FI@NM the state’s campaign. FI=;N?> CH NB? B?;LN I@ A perfect complement to tearing down vacant structures is the long-awaited GC>NIQH>?NLICN paving of Hamilton Avenue this summer, Powell said, noting the 2-mile strip is the NB??FFCHANIH @?;NOL?M4 second-most-trafficked surface street +*Î]_cfcham&Øiilni]_cfchaqch^iqm through the city after Woodward Avenue. B[l^qii^Øiilm The city also is reaping benefits from the <[f]ihc_m successful redevelopment of the former Mj[]ciomal[hcn_ecn]b_hmqcnb Chrysler Corp. headquarters. Prior to its Daimler-Benz merger and just-closed separa- mn[chf_mmmn__f[jjfc[h]_m tion, in 1992 Chrysler recognized the void @cnh_mm=_hn_l it was leaving in the city and gave a $14 M_]ol_&[nn[]b_^&]ip_l_^j[lecha million parting gift, $5 million to forge HP =ihp_hc_hn+mnØiill_n[cfch]fo^_m Devco and the remainder to fund commu- Mn[l\o]em=i__&@_^?rEcheiÎm& nity development. The automaker invested N'Gi\cf_[h^F[M[ff_<[he $65 million to repair the brownfield before selling the property to Troy-based Stuart Frankel of Stuart Frankel Development Co. The result is the Oakland Park redevelop- -01*Qii^q[l^;p_(&Mocn_/+-&>_nlicn ment. Priced from the $190’s

Call 313-309-0099 • Hours by appointment only >_p_fij_^\s4 Visit our Sales Center and models in the Ellington “If you look at demographics www.EllingtonLofts.com alone, Highland Park is the

Discover the place where poorest city in the state of all of life’s essentials come together. Michigan. But certain clients and companies have visions Panoramic Views for urban redevelopment.” Michael Curis

On-Site Amenities “Sixty-six percent of its ultimate capaci- Move up ty is up and running,” said Frankel, who TO THE bought the 145-acre site in 1997 and erected warehouse/light manufacturing/distribu- City tion space of 1.2 million square feet to date. FRONT Center Under construction are two buildings: a 217,000-square-foot plant for Visteon, po- tentially employing 175 people, and a 200,000-square-foot speculative building. The height of downtown living The investments earned state and federal tax credits. “If you look at demographics alone, CONDOMINIUMS FROM $134K* Highland Park is the poorest city in the Sales Center – 300 Riverfront Dr. 800.997.9788 state of Michigan. But certain clients and Weekdays 10–6, Sat. 10–5 & Sun. 12–5 RiverfrontDetroit.com companies have visions for urban redevelopment, and they make the strongest an- ** *Prices and availability subject to change without notice. Rent-to-Own, or Live **Limited-time offer on select units. chor tenants,” said Curis as he supervised Mortgage-Free for 6 Months** the backhoes descending on the Woodward Place construction site.

Page 56 FALL 2006 FALL 2007 CRAIN’S DETROIT BUSINESS CDBmagazine.qxp 7/31/2007 4:20 PM Page 1

Wherever in the world you compete, Michigan can give you the upper hand. 342 IN A SERIES OF THOUSANDS ePrize is the model for innovation and Internet success. Michigan helped them break the mold.

If you thought you needed a West Coast zip code to make it on the web, think again. Case in point: ePrize — a globally successful interactive promotion company that works with the world’s top brands. Not only did ePrize ﬁ nd a great creative talent pool here with some of the best colleges and universities on the planet, they also found a great place to call home in Pleasant Ridge, Michigan. Hot clubs, great restaurants, year-round sports and recreation, friendly tree-lined neighborhoods and a world-class arts community.

ePrize also found ﬁ nancial and economic incentives from the Michigan Economic Development Corporation to put their Internet business out in front. As Josh Linkner, founder and CEO of ePrize, put it…“All the production, all the technology, all the innovation, is happening right here in Michigan.”

So is it time to move your entrepreneurial company to Michigan? Absolutely. And we’ll do whatever it takes to make that happen. Because wherever on the web you compete, Michigan can give you the upper hand. Let the Michigan Economic Development Corporation show you how to break the mold. Click on michigan.org/upperhand.

Josh Linkner Founder and CEO ePrize michigan.org/upperhand CDBmagazine.qxp 8/1/2007 5:51 PM Page 1