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Community
Revitalization Newsletter
494
Lakewood - Detroit, Michigan 48215
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April 2004 Issue |
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Solutions
for Affordable Housing (Part IV)
J&A/SmithGroup
JJR announces SMRT Team for Cool Cities
National
Main Street Conference and Main Street News features Juergensen &
Associates
Orange
Barrel Slalom: Rethinking our Transportation Investments
Cali
Chronicles - Memories of the PCH
The
Original Detroit Music Scenesters: Gospel Music
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Solutions
for Affordable Housing (Part IV) For
months, we have offered a variety of broad concepts on the issue of affordable
housing. More recently, we have focused on the misperceptions of affordable
housing, most notably that it reaches primarily middle-income and working
class families. This month and in May, we will offer some possible solutions
to our affordable housing challenge.
It can be shown that policies that encourage affordable housing can significantly
improve the quality of life and economic competitiveness of a community.
Conversely, policies that discourage affordable housing create deep economic,
social and racial divisions within communities and limit economic opportunity
and investment.
For far too many people, “affordable housing” exclusively
implies housing for the less fortunate, when “affordable housing,”
actually refers to a much broader sector of the community, including solidly
middle income residents – teachers, nurses, police and fire officers,
as well as the retail, restaurant and other service workers that are the
now the back bone of a community’s workforce.
Much has been written about the loss of manufacturing jobs overseas. But,
little has been noted about the link between the loss of these jobs, the
wages they pay and the fact that America’s middle-class workers
today and in the future will have greater difficulty achieving the same
buying power as these higher paying jobs seek lower wage workers on other
shores. Since income is the key determinant in housing choice, the impact
is enormous as the loss in wages and buying power stands in direct contrast
to the ever-increasing costs for housing.
The reality in our country is that wages are lower and the resources consumers
have to spend on housing will continue to decrease and this issue is unavoidable
and will confront and challenge every politician and public servant in
just about every unit of government.
In the absence of any identifiable domestic policy to address the loss
of manufacturing jobs, we should not be surprised by the lack of Federal
leadership on issues related to housing affordability as our nation is
left with a significant pool of workers at significantly lower wages and
a severe loss of purchasing power for housing. Therefore, communities
are often left to their own devices.
To create more affordable housing, community leaders need tools that leverage
private investment and encourage income diversity. The key to obtaining
these tools is a sound regional strategy. The region, rather than individual
community, is the dominant economic and social unit in the current economy,
but that does not relieve every unit of government from having an affordable
housing policy and strategy.
It
seems reasonable that community leaders should be required to adopt a
comprehensive regional affordable housing strategy as a consequence of
receiving some State or Federal resources, similar to the way transportation
dollars are funneled out to communities. Bruce
Katz of the Brookings Institute, one of the leading thinkers on affordable
housing, suggests that the decentralization of big cities and the diffusion
of employment centers including Metropolitan Detroit have led to difficulties
for individuals to get from home to work easily and efficiently causing
increased housing costs and reducing the quality of life. As a consequence,
the housing gap between urban and suburban communities continues to grow.
Urban communities, with aging infrastructure and abandonment, struggling
to attract a significant cross section of renters and home buyers present
the greatest challenge. To restore the housing market, affordable housing
can be used to stabilize neighborhoods and plant the seeds of revitalization
that encourage private investment. These communities need tools and development
incentives to attract market rate renters and purchasers or true revitalization
will never be achieved. Altering tax structure, taking advantage of adjacencies
to strong, historic districts, using the existing and now trendy urban
grid and dense development pattern and allowing for mixed uses in neighborhoods
by encouraging live-work opportunities are ways a community can attract
buyers and reduce entry costs for developer and entrepreneurs alike.
As the single largest resource for affordable housing, the low-income
housing tax credit requires the developer and community to use rental
development as the only means to access those resources, when rental development
may not be what the community needs. In low-income urban areas, the low-income
housing tax credit should be expanded and retooled so that it can be used
for home ownership programs and not the current methodology where it takes
15 years to achieve the desired result.
The Millennium Housing Commission
(MHC) initially recommended that a new Home Ownership Tax Credit be
made available to census tracts at or below the poverty level to build
or renovate homes for sale. As Conrad Egan, the chairman of the MHC, recently
wrote in Urban Land magazine, “In qualified census tracts, where
the cost to build or rehabilitate a unit will be greater than the appraised
value of the completed home, states may use the credit to offset the developer’s
total development cost.” In addition, Egan and the MHC recommend
restructuring HUD programs that allow for greater long-term investment
strategies for affordable housing and we would suggest it include expanded
production programs that allow for for-sale developments as well. .
Next month, we’ll look at more challenges and solutions including
those that address suburban and thriving markets. |
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J&A/SmithGroup
JJR announces SMRT Team for Cool Cities
Great
places – the districts that will make Michigan’s cities
cool – are a collection of buildings, real estate developments
that provide the fabric for exciting activities. However, gaps in specific
real estate development expertise can often stand in the way of buildings
achieving a higher and better use and contributing to the vibrancy of
the district they inhabit.
To assist communities as they become cool, Juergensen & Associates
in partnership with SmithGroup JJR has formed the Strategic Multidisciplinary
Regeneration Team (SMRT) to stage your downtown for real development.
The world-renowned architectural and planning expertise of the SmithGroup
JJR and our nearly twenty years of economic development and financial
expertise can help put shovels in the ground and make development happen
quickly and efficiently.
To
learn more about how the SMRT team can help make your downtown cool,
call us today at 313.824.0824.
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National
Main Street Conference and Main Street News features J&A
On
Tuesday, May 11, Jay C. Juergensen, President of Juergensen & Associates,
will present "Be a Main Street Developer"
a three-hour real estate workshop for Main Street and community development
professionals at the National
Town Hall Meeting on Main Street in Albuquerque, New Mexico. The
training will provide an overview of the real estate development process,
terminology common to the real estate industry, and identifying members
of the team necessary to make investment happen.
The workshop will also use a case study to walk participants through
the basics of doing a real estate deal, including using the use of incentives
like Historic Tax Credits, Low-Income Housing Tax Credits, HOME funds,
along with private investment. The purpose of the workshop is to demystify
the development process and empower Main Street managers as they take
on real estate development challenges in their community.
And don’t forget to keep you eye out for the next issue of
the Main Street News. Jay Juergensen wrote the lead article on developing
housing on Main Street. The article will be made available through our
web site once it is published.
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Orange
Barrel Slalom: Rethinking our Transportation Investments
For
the besieged motorists of Metropolitan Detroit, springtime is synonymous
with road construction season and traffic delays. As a low-density metropolis
with limited mass transit options, Detroiters are dependent on an extensive
highway system to get around and any delays raise the ire of even the
most affable of Michiganders (or Michiganians, take your pick).
Metropolitan Detroit isn't that different than most American cities.
Even with New York, Chicago, and the eight or so high-density transit-oriented
cities in the U.S., a shade less than five percent of Americans get
around via mass transit. We own cars, we like cars, and as much as I
get wistful for my days riding the Green
Line Metro to Capitol Hill (with a transfer at L’Enfant Plaza)
for work every morning, cars are here to stay. But, that shouldn’t
preclude us from having a sensible and balanced transportation investment
strategy and a congestion mitigation policy that actually reduces congestion.

For now, I will leave the discussion on mass transit for a later day,
and discuss the question of congestion. By definition, insanity is the
art of doing the same thing, yet expecting a different result. When
we add lanes and expand our road capacity as a method to reduce congestion,
we are on a clear path to traffic insanity. In Michigan, we still haven’t
learned, as illustrated by the I-75
Corridor Study, which stated, “widening I-75 by adding one
lane in each direction where it is needed to provide four through lanes
in each direction is the single most productive element in addressing
congestion.”
It is counter-intuitive, but more (and wider) lanes actually increase
congestion over time. Anthony
Downs of the Brookings Institute calls the phenomenon, “triple
convergence.” Mr. Downs, in an article published in January 2004
said, “traffic flows in any region’s overall transportation
networks form almost automatically self-adjusting relationships among
different routes, times and modes.” In layman’s terms, Mr.
Downs suggests that drivers hit the routes that we think will get us
there quickest.
The implication is that when we add capacity to our roadways, the additional
capacity attracts new drivers and we achieve the same level of congestion
over time. The mere fact that Metropolitan Detroit has about the same
population today, as it did in 1970, yet by any account congestion is
far worse than it has ever been, suggest there is some legitimacy to
this argument.
As an alternative, economists would argue that nothing works better
than a congestion-pricing scheme. Suppose we paid a fee to drive on
the highway between 6 am and 9 am and again during the afternoon peak
rush hours. Would you considering getting to work before 6 am to avoid
paying a fee or moving closer to your place of work to avoid the fees
altogether? Maybe, maybe not. Either way, in the economist world, we
could theoretically set the fee at a level that would encourage driving
at alternative times and spread out the traffic and reduce congestion.
The fees would then be used to maintain the highways.
Though
politically unpalatable, a congestion-pricing scheme is in place in
New York State, New Jersey and Massachusetts. My in-laws, who live in
Albany, New York, have a small electronic sensor (EZ-Pass) attached
to their front windshield that charges their account every time they
enter a New York Sate Thruway. Though New York does not use peak hour
pricing mechanisms to spread out traffic, the toll system does affect
overall congestion levels and the quality of the roadways is notably
better.
Toll plazas on the highway might cause riots in Metropolitan Detroit,
but there are other options. Highways can be designed with common lanes
that can be utilized based on peak traffic flows. Simply building roads
to manage peak hour traffic, according to Anthony Downs, is expensive
and would be virtually empty during non-peak hours, not unlike many
Metropolitan Detroit highways. Suppose instead of two news lanes, the
four center lanes of I-75 were southbound only in the morning, and northbound
only in the evening.
This approach could significantly reduce cost while adding lane capacity
during peak hours to reduce congestion. This method is used in the Washington
D.C. Metropolitan area including the Rock Creek Parkway. This option
is trickier in Metropolitan Detroit because, unlike Washington, D.C.,
downtown Detroit is not the preeminent job center and a good number
of trips are between Oakland and Macomb Counties and not into downtown
Detroit.
If we are serious about building “cool cities,” Michigan
needs to take a much longer view of its transportation infrastructure.
When cities were polled about elements of “cool cities,”
walk-ability was the overwhelming response. Michigan cities with state
trunk lines that bisect their historic downtowns and traditional centers
of commerce need greater flexibility and resources to deal with transportation
issues. Spending billions in transportation dollars for needless lane
expansions to mammoth highways so that commuters might get to their
destinations a few minutes quicker, puts us on the onramp to transportation
insanity.
I will continue the transportation discussion on another day, right
now, I have to get in my car and drive home in rush hour congestion.
Mike Scholl holds a Master
of Public Policy and Master of Urban Planning from the University of
Michigan and he supports both research and policy efforts at Juergensen
& Associates. He and his wife Ann are avid hockey players and he
is the volunteer Executive Director of 1,000
Friends of Metropolitan Detroit.
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Cali
Chronicles – Memories of the PCH
For some time, I have had a desire to experience the Pacific Coast Highway
(PCH or Highway 1). I recently made a commitment to myself to make the
trip and my colleague and friend, John Morey, joined me for what was
a refreshing, humorous, enlightening and awe-inspiring two-week vacation.
Having been to LA and San Francisco recently, I knew where I wanted
to stay in metroplexes that provide lots of options, but John charted
the course for most the trip. Each morning we reviewed the previous
days’ experiences and kept a sort of journal of our thoughts throughout
the journey. The following are some excerpts, with more likely to follow
in the months to come.
On March 15, we arrived in sunny San Francisco and quickly realized,
we packed enough for 4! The trunk on our candy apple red Mustang convertible
couldn’t accommodate our luggage and we briefly considered the
slightly more expensive Thunderbird parked almost directly across from
us. It had even less room in the trunk! So, we re-arranged put down
the top and took full advantage of the 70 degree, cloud free sky as
we exited the parking deck at SFO and headed north.
We
had lunch just north of the Golden
Gate Bridge and continued north to Santa Rosa, where the 101 turned
into a parking lot and we turned left to Bodega Bay. We bopped and weaved
up the coast and figured the traffic engineers must go crazy making
Highway 1 work. We had the top down and my shirt was off for most of
the day as we hit highs on hillsides that had to be near 90 and sunny
lows of 40 in the microclimates close to the beach and in the woods.
The first day of huge rocks, ocean splendor and amazing landscapes ended
with a great meal and a powerful sunset at Pt. Arena and we ventured
further for an overnight stay at Ft. Bragg.
The
second day took us to the scenic route through the Avenue of the Giants
where a meandering two-lane road had been conveniently carved for tourists
out of the old stand redwoods. John found an even more spectacular route
on the way to Honeydew where the redwoods were exponentially larger
and encroaching on the road, narrowing it to places where one car could
barely pass. After high-speed switchbacks and 180 degree turns up and
down two mountain ranges I was enjoying the screeching sound of the
rubber on the road until I realized it was John screaming.
The mountains gave way to an ocean-side straightaway that made me feel
like a Mazda commercial (zoom-zoom) and that was followed by what seemed
like an Irish mountainside pastureland, complete with grazing cattle
and goats. A late lunch in the Victorian village of Ferndale and an
evening in historic Eureka (featured
in Main Street’s Success Stories) made the second day complete,
including a late night café in the city’s historic core.
On the third day we experienced and absorbed Eureka, boogied back down
the 101, and headed instate to Clearlake, just north of Napa. The abject
poverty we experienced in the rural parts of the state on both days
2 and 3 were a stark and disturbing contrast to the vitality of the
urban centers we visited.
On
Day 4, we headed through Lake Barryessa and Napa to Berkeley and San
Francisco and it appeared there were several ways to get to Napa, none
of which we could find and even the road construction workers, whose
aid we sought, couldn’t read the map. The disappearing grid in
the vineyards entranced us and our return to “civilization”
(if that’s what you should call it?) was shocking as I-80 was
a parking lot and a detour to Berkeley proved helpful. Berkeley looked
hard used and we were a little burnt too as we pondered how many Iowans
found their way to Berkeley as we made our early evening journey across
the Bay Bridge.
On Friday, a junket to Frank Lloyd Wright’s Marin
County Civic Center was inspiring and enlightening as we got the
inside scoop on the building’s failures from a retiring courthouse
worker. Lunch in the cafeteria by an outstanding short order cook was
followed by a sun-filled afternoon on the Point
Reyes National Seashore, dinner in Stinson Beach and a dark and
dangerous meandering on Highway 1 back to the city.
Saturday brought more traditional tourist stuff as John sought to find
the neighborhood where he hung out in the 70’s and we met later
at Ghiradelli
Square. The bay filled with sailboats and the blanket of fog that
covered them was almost as quickly removed. A walk along the marina
led to the Palace of the Fine Arts and the evening was complete with
shopping and dinner in the Castro and the weekend was complete while
I reconnected to some old friends and made some new ones.
The first day of the second week began as the only gloomy one as the
rain and fog that often plague San Fran clouded our exit from the City
by the Bay. By midday, the top was off as we found our way to Santa
Cruz and a disappointing seafood lunch on a wharf whose aromas we’d
rather forget. By mid-afternoon we arrived in Monterey to visit the
infamous (yet, somewhat disappointing) aquarium, the clouds and rain
were back, but we ended the day with an outstanding meal following musical
chairs in a downtown fire house converted into a bistro.
Winnie
the Pooh would have called Tuesday a blustery day as we continued
south in the sun. The sites were continuously spectacular and we constantly
were conflicted about stopping to enjoy the view and making progress
on our journey. Beyond more amazing views we found para gliders, boogie
boarders, porpoise, otter and elephant seals enjoying the sea, surf
and sun as we found our way to the infamous rock of Morro Bay, where
we couldn’t seem to find some sunny sand protected from the wind.
Dinner in historic downtown San
Luis Obispo (SLO) was enchanting as John sought a functioning espresso
machine.
We
spent some time the next day exploring SLO’s vibrancy (a
1999 Great American Main Street Award Winner) including the development
a downtown “lifestyle center” complete with the Gap, Express,
Barnes & Noble, Victoria Secrets along side local entrepreneurs
that all seemed to be doing very well. Higuera, SLO’s main street,
abuts a babbling creek that provides a excellent backdrop for a waterside
meal opposite the Spanish mission.
Santa Barbara
and its amazing beaches were the destination for Wednesday and we did
our best to take full advantage of it. Downtown was vibrant and alive
with a great selection of restaurants as well as a lifestyle center
that included Macy’s and Nordstrom’s and incorporated a
local arts organization and a theater venue. Design controls on development
were clear with a predominance of Spanish stucco and while the vibe
in SB was great and it was hard (really, really hard) to leave the beach
on Thursday, I was struck by the pale color of all the architecture
and most of the people.
We
beat the worst of the traffic into LA that afternoon and found our way
to a popular eatery in Hollywood. Friday, with the sun at full bore,
John made his way to the beach as I found the Walmart in LA’s
Crenshaw neighborhood and the much-raved-about lifestyle development
known as The Groove.
On
our last sunny Saturday, we were joined by friends and had lunch and
wandered the grounds of the Ghetty,
where the art seemed secondary to the entertainment opportunities provided
by the inspiring grounds as its seems Richard Meier’s mountainside
museum-sculpture has been turned into community play space. The balance
of the weekend I hung out with old friends, made some new ones and looked
forward to my next junket back to Tinsel Town.
Sunday evening’s late evening trip to the airport for our red
eye to Detroit came with great hesitation. Simply put, I tearfully said,
“I don’t wanna go home!”
In reviewing the photos, I was amazed by the quality of my cheap little
digital camera, knowing that you could never capture the beauty in pictures.
And while these few words remind me of the great time we had, words
really can’t describe the amazing sites we viewed, the gut busting
laughter we enjoyed, the meals savored and the friendships heartfelt.
It was a trip for 2 weeks that I dreamed of for years, that we planned
over several months, but with memories that will last a lifetime.
Stay tuned for
more laughs and photos...
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The
Original Detroit Music Scenesters
While
browsing a newsstand during a layover at an airport a few weeks back,
my eyes caught sight of the headline on the cover of Spin Magazine “The
Battle of Detroit: Von Bondies vs. White Stripes.” The article,
under the misleading headline, declared the Von Bondies, a local punk
rock outfit, the next big thing out of Detroit following in the footsteps
of the White Stripes, the internationally acclaimed Detroit punk rock
duo.
In the wake of Create Detroit, and various discussions on making Detroit
cool and the importance of arts and culture, it is a little bit unfair
that the Von Bondies, White Stripes and their ilk, Blanche, the Dirtbombs,
and Detroit Cobras, seem to get most of the ink and the attention for
the local scene.
Consider the quote from the Michigan Council for Arts and Cultural Affairs,
“During the 1980’s, Detroit became known as the “Gospel
Music Capital of the World,” but Detroit has long been an integral
part of gospel‘s development, thanks to an abundance of gifted
singers, composers, and instrumentalists. Various popular musical styles
have been influenced by the sound of gospel soloists,
groups and choirs. Today, Detroit is a nationally recognized gospel
mecca, know for its mass choirs and talented directors, and as the birthplace
of the Gospel Music Workshop of America, the largest
organization of its kind in the United States.”
When we consider Detroit’s music scene, it is critical that we
not overlook the contributions that Gospel music has made to our regional
arts and culture. The “Motown Sound” was heavily influenced
by Detroit’s Gospel music scene. Aretha Franklin, the Queen of
Soul, got her start as a Gospel singer with her father Reverend C.L.
Franklin at the New Bethel Baptist Church. The Gospel scene can trace
its origins to 1920’s radio programs on WMBC 1400 AM in Detroit.
Today,
there are six independent music labels based out of Detroit, along with
the Gospel Music Workshop
of America, which organizes an annual convention and the Annual
Gospel Music Awards ceremony. The Gospel Music Convention, held annually
in August, originated Detroit in 1968 and is attended by more than 20,000
people.
How many of us knew that the International Gospel Music Hall of Fame
is located in Detroit, Michigan and is looking to relocate near downtown
Detroit? I have to admit that until recently I was ignorant to the contributions
Detroit made to Gospel music. The Hall of Fame recognizes the contribution
of Gospel music includes Detroiters such as the Winans Family, the Meditations,
and the Clark Sisters among many others.
As we struggle to promote diversity and tolerance, we need to understand
the long history and importance that Gospel music has had in the African-American
culture. Gospel music is as old as our nation, the Gospel Music Hall
of Fame traces the origins of Gospel music to slaves on southern plantations
around 1650.
With no offense to the punk scenesters de juer, when we speak of Detroit’s
art and culture and what makes us “cool”, we owe it to our
city to mention Gospel in the same breath as the White Stripes and others.
Our music scene is as diverse as our population, its time we embrace
our diversity, in all its forms.
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