Welcome to Juergensen & Associates

At Juergensen & Associates Inc. we specialize in projects and initiatives that benefit the community in which we work. Based in Detroit, Michigan, we have provided planning and development consulting services through our affiliated companies for nearly two decades.

J & A Information and Updates

Detroit's Land Puzzle Ten Years Later

MHFA Awards Tax Credits/Financing to New San Marco Apartments

Cincinnati Says Yes to Diversity

Downtown Conference Highlights Michigan's Downtown Success

Black Enterprise Ranks the Cities

Tipping To Cool

Need Help on Thanksgiving - Try Corn and Chipotle Bread Pudding

Detroit's Land Puzzle Ten Years Later

During a recent purge of files, we discovered an old news clip from the Detroit News entitled “Detroit's Land Puzzle.” (Detroit News, 7/24/94) The bold headline in the business section led an extensive expose on the problem of vacant land, title clearance, land assembly and lack of retail development opportunities in the City of Detroit. In the midst of the 1990's nationwide boom in urban revitalization, Detroit was struggling to attract big box and other retailers to the city.

The article also referenced the burgeoning Harmonie Park development and the work of Warren-Conner Development Coalition at the Mack Avenue and Alter Road site on Detroit's eastside. (The article is available by clicking here. I would suggest checking out the article, if only for the picture of Warren-Conner Executive Director Maggie DeSantis and Zachary Rowe on page two.)

When published in 1994, Kmart was a viable big box retailer, Dennis Archer was the fresh-faced post-Coleman Young Detroit Mayor, and the city was struggling to get control of its vacant land for commercial and retail development.

In ten years, one might wonder what has changed?

We have a new Mayor and Kmart, fresh out of bankruptcy is closing stores, not opening new ones and just announced its merger with Sears, while the city still struggles to get a handle on its vacant land.  In fairness, Harmonie Park has developed into a nice entertainment district, and Warren-Conner recently broke ground on the Mack/Alter site earlier this year. In fact, Warren-Conner was just honored by LISC for their work in community development.

There have been some other notable developments including the Compuware Headquarters in Downtown and a smattering of new housing and retail developments, but does it really add up?

For those of us working to improve and revitalize the city, the numbers are disturbing and frustrating. According to the most recent census, between 1990 and 2000 the number of acres dedicated to shopping centers (50,000 square feet or greater) decreased by sixteen percent from 244.9 acres to 205.2 acres and secondary businesses decreased by 13 percent. At the same time, the number of undeveloped acres increased by 36 percent.  According to the last Census, Detroit lost nearly 35,000 housing units to the wrecking ball between 1990 and 2000 yet the number of vacant housing units jumped by 2,698 units to 38,668 over the same period.  Even though the city is clearing vacant housing at a tremendous rate, the number of vacant units is still growing! 

In the residential sector, the numbers are only slightly better. There are signs that new housing is increasing but demolitions, having peaked in 1996 with 8,432 demolished units, continue at a rate of about 1,500 to 2,000 units per year. Without residential growth, the city isn't likely to attract substantial long-term retail and commercial investment. Take a look:   

Single-family housing development has trended upward over the course of the last ten years, which is reflected in the increase in new housing units. For comparison, take a look at some neighboring communities over the same period:

And while it may not be completely fair to compare Detroit to its suburban peers, the comparison with other rust-belt cities in the Midwest, demonstrates that we have significant challenges before us.

Ultimately, Detroit must get control of its real estate assets, make some strategic decisions about investment of resources necessary to stimulate development and have a sound, rational and efficient system for disposing of land.

Nearly ten years after the Detroit News article, the debate about redevelopment in Detroit continues as demonstrated by the Detroit Free Press feature earlier this month. In upcoming issues of The Juergensen Report, we'll continue to offer observations and suggestions on how Detroit and communities around Michigan can stimulate investment in distressed or difficult markets.

MHFA Awards Tax Credits/Financing to New San Marco Apartments

On October 28, the Minnesota Housing Finance Agency (MHFA) awarded Center City Housing Corp. of Duluth, Minnesota $600,000 in Low Income Housing Tax Credits and $1.55 million in financing for the development of 70 units of supportive housing.   The $600,000 over ten years is the maximum allowed by MHFA and will likely net the project $4.5 to $5 million in equity.   This combined with the $1.55 million deferred loans and grants from MHFA and Greater Minnesota Housing Fund, puts the project on a solid path toward becoming a reality.  

The $8 million, 45,000 SF project will provide 30 permanent supportive domiciliary/group residential housing units for chemically dependent individuals living in and around downtown Duluth and 40 units of supportive efficiency units for individuals with a history of mental illness and/or homelessness.

Juergensen & Associates wrote the successful application, which included creating operating statements and establishing the financial structure, as well as the crafting of an extensive supportive services plan and management program. J&A also led the development team, including architect LHB, Inc. and coordinated supporters and partners including the City of Duluth, Duluth Housing & Redevelopment Authority, Duluth Local Initiatives Support Corporation, Corporation for Supportive Housing and HUD.  

The City is in the final stages of acquiring the property and will be demolishing several derelict structures to make may for the new project. A $400,000 grant from HUD's Supportive Housing Program (SHP) is included in the project's financing.   J&A also prepared a request for $120,000 of City HOME funds and a $500,000 application to the Federal Home Loan Bank (FHLB) of Des Moines, which are both pending.   The project should begin construction in the summer of 2005.  

Congrats Center City!

Cincinnati Says Yes to Diversity

While eleven states across the country, including Michigan, were voting to ban gay marriages and civil unions between same sex couples, Cincinnati took the extraordinary step of repealing an anti-gay and lesbian amendment known as Article XII from the City's charter that banned the City from including sexual orientation in its anti-discrimination policy.

In the city known for the controversy surrounding the Robert Maplethorpe exhibit, what is most amazing, is the level of support from Cincinnati's corporate community including Proctor & Gamble and Federated Department Stores (Macy's and Bloomingdale's parent), which ponied up $10,000 and $20,000, respectively to Citizens to Restore Fairness the political group organized to support the repeal.

Almost ten years ago, Cincinnati voters approved Article XII, which forbid the city from including sexual orientation in its anti-discrimination policies and any claim to minority or protected status, a protection that had been granted by City Council a year before.  The charter amendment caused some to label Cincinnati as an “island of intolerance in the middle of America.”

So why, after ten years, did the city vote overwhelmingly to reject the amendment and eliminate from the city charter?   It was bad for business.

During the ten years the discriminatory language of the Charter was in effect, research suggested that Cincinnati lost $45 million in convention business and became know as a city unwelcome to gays and lesbians.   As a result of legalizing discrimination, evidence pointed to Cincinnati companies having difficulty in attracting and retaining employees.

Proctor & Gamble, the Greater Cincinnati Chamber of Commerce and other businesses and business interests lent their considerable influence, both publicly and monetarily, to the fight.  “Article XII is bad for the city because it impacts the region's economic vitality.  It portrays Cincinnati as being intolerant and the puts us at a disadvantage in attracting employees and visitors to the area,” according to Louise Hughes a spokesman for Proctor & Gamble.

Nearly two-thirds of Cincinnati's largest businesses offer same sex domestic partner benefits and the Cincinnati Chamber voted unanimously to support a repeal, stating, “Our board members really considered what's best for business and the overall business environment in our community. Article XII is not good for business.”  The Chamber's press release also stated that other competing cities had laws anti-discrimination laws in place including Indianapolis, Cleveland, Columbus and Lexington. (Detroit was not mentioned as a competitor).

This isn't to suggest that gay rights can't stand alone as a worthy social justice cause. It most certainly does and should be championed as such. However, we shouldn't overlook the impact the business community can have on important social issues. The support from the Cincinnati Chamber and the business community lent considerable weight to the cause that forced citizens to look at the impact of discriminatory policies.  

And while the REPUBLICAN governor parted with his own party to oppose the statewide ban, simply on economic development, Ohio, Michigan and the nine other states that banned gay marriage and civil unions need to beware of the unintended consequences of their actions.   Whether fair or not, those eleven states are now labeled as being intolerant to diversity.

I wonder if Cincinnati will now be known as an island of social consciousness in a sea of bigotry and intolerance.   Stay tuned!

Back to the top

Downtown Conference Highlights Michigan's Downtown Success

If you missed the Michigan Downtown Revitalization Conference earlier this month, I would suggest you circle the date on your calendar for next year.  

I've been to a number of statewide Main Street conferences around the country and this was one ranks right up there with some of the best.   Though, I'm not sure if Downtown Bay City would have survived another night of karaoke from Michigan's finest community and economic development professionals.   (I'm sorry I missed out, though I'm not much of a singer, the reviews in the next days police blotter provided a full account of the activities ;-)).

The new Michigan Rehab Code is a critical element of the redevelopment process in our downtowns and having played a critical role in helping craft it, we were grateful to have the opportunity to present, “Positive Changes in Michigan's Building Codes.” We were joined in the presentation by our colleague Lis Knibbe of Quinn Evans Architects.

Unfortunately, too few people are aware of the new Michigan Rehabilitation Code for Existing Buildings (Rehab Code) and even fewer architects, owners, developers and building inspectors are educated on how to use the new code.   If you haven't grabbed a copy yet, the code is available online through the Department of Labor and Economic Growth (Click here to order a copy of the Rehab Code)for $42, it is certainly worth the cost and prominent spot on your bookshelf.    

Keep in mind, when you work with property owners and especially architects, they need to be made aware of the new code prior to engaging in a redevelopment process.   At the onset of any project, it is up to the owner and architect to select which code will be used – the Rehab code or Michigan Building Code (MBC).  Most inspectors are only familiar with the MBC codes and how to administer the Rehab Code.

The Rehab Code provides for greater cost certainty because owners and their architects can submit their schematic plans prior to applying for a building permit for a review and mandatory meeting with the building inspector. The building inspector must meet with the prospective applicant and come to agreement on the selected code compliance strategy and issue that conclusion in writing.  

Additional trainings for architects, owner/developers, downtown professionals and building inspectors are being planned for next year. Watch our website for details.  

As for the rest of the conference, having been involved in bringing the Main Street program back to Michigan, the conference was a great opportunity to highlight some of the achievements of Michigan's downtowns and traditional centers of commerce. Of particular note, was the presentation by the City of Marquette, which wisely choose to embrace the winter climate by adding a downtown ice rink and snow trails, demonstrating that being cool can be both figurative and literal.

I also enjoyed Scott Day's presentation on attracting retail to downtowns. Our colleague from the National Main Street Center suggested that 71 steps is the longest a consumer will walk from parking to a store – a lesson that stuck with me.

Black Enterprise Ranks the Cities

Detroit, Chicago, and Philadelphia were noticeable omissions from this year's Black Enterprise Magazine's Top Cities for African Americans (July, 2004).  The new cities are a collection of sun-belt stalwarts along with upstart Columbus, Ohio.  According to the editors of Black Enterprise, twelve finalists were selected from their online survey.  (The image to the right will take you to Black Enterprise® magazine, though you will need to register to access their articles.)

The finalists were ranked based upon a variety of factors including the number of black-owned businesses, poverty rates, crime rates, mass transit, home-ownership and residential segregation among other factors and survey respondents placed a high priority on earnings potential, cost of living, housing prices and entrepreneurial opportunities. Detroit, 6th in the last ranking (Chicago and Philly were 9th and 10th, respectively)  was amongst the over 300 communities nominated, but this time, according to the editors, it didn't even make the first cut. 

Black Enterprise Magazine's Top Ten Cities for African Americans are:

1. Atlanta, GA
2. Washington, DC
3. Dallas, TX
4. Nashville, TN
5. Houston, TX
6. Charlotte, NC
7. Birmingham, AL
8. Memphis, TN
9. Columbus, OH
10. Baltimore, MD

The rankings are far from scientific and certainly subjective, but it does illuminate some interesting trends.  Five (5) of the Top Ten cities have African American populations less than 35 percent of the total population. Two of the new additions to the list, Columbus and Nashville, have an African American population well below 30 percent of the total population.  As a percentage, the total African American population in the Top Ten Cities is 47 percent.  Birmingham is the highest at 73.6 percent and Houston is the lowest at 25.4 percent.  Detroit, which dropped off the list, has an African-American population at 81.2 percent.

This might suggest that rates of segregation and diversity are likely critical factors influencing perspectives on the Top Ten.   The dissimilarity index, a measure of residential segregation (0 = full integration and 100 = full segregation), is slightly higher, 65.5, in Top Ten cities than the national average, 64.5.  However, the three cities that dropped off the list are deeply segregated compared to the three added:

On the whole, however, the magazine factored in traditional indices of quality of life including the cost of health care, rates of home ownership, schools, employment & earnings, percent of black owned business and relationships with police and other government agencies. The Top Ten Cities had higher job growth, lower unemployment, higher graduation rates and college graduates, and more doctors than the national average.

The concern for communities like Detroit is that if the city becomes less attractive to educated upwardly mobile African American residents, black flight and economic segregation will continue to be greatly accelerated.   One of Detroit's key strengths is its strong African American leadership and deep cultural and social roots.  For older largely African-American cities, the new great challenge is remaining attractive and competitive.

Tipping To Cool

Get your tickets now for the 10th Annual Meeting of the Michigan Council for Arts and Cultural Affairs.  Scheduled for December 9, at the Lansing Center, the Conference features author Malcolm Gladwell, and Becky Anderson, Executive Director of Handmade in America.  

Following up from last years successful Conference that featured Richard Florida, who made the “Creative Class” a buzzword, this year should be just as enriching and worthwhile.  If you haven't read Gladwell's, The Tipping Point: How Little Things Can Make a Big Difference , it is definitely worth the time especially if you or your kids grew up on Sesame Street.  There is a great chapter dedicated to how the PBS stalwart became a television institution.   

Gladwell, a former reporter with the Washington Post and current staff writer for the New Yorker, writes with a journalistic prose that is easy and fun to read.  Be prepared this year to talk about, “mavens,” ”connectors” and “salesmen” along with the “stickiness factor.”       

Hope to see you at the conference….Check out the Tipping to Cool website  

Need Help on Thanksgiving - try Corn and Chipotle Bread Pudding

Looking for a quick and easy dish for Thanksgiving, try the corn and chipotle bread pudding. You can make it ahead of time and pop it in the oven on Thanksgiving. The chipotle adds a little heat, but if you prefer a tamer dish, substitute red or yellow bell peppers. You can also substitute canned corn (drained) in place of the fresh corn.

The recipe comes courtesy of Cooking Light® magazine.

2 teaspoons olive oil
1/2 cup finely chopped red bell pepper
1/2 cup finely chopped onion
2 cups fresh corn kernels (about 2 ears)
1/2 cup thinly sliced green onions
1 jalapeño pepper, minced (optional)
1 garlic clove, minced
1 teaspoon salt, divided
1 teaspoon ground cumin, divided
1 1/2 cups 1% low-fat milk
1 cup egg substitute
1 cup (4 ounces) shredded Monterey Jack cheese, divided
1 tablespoon finely chopped canned chipotle chiles in adobo sauce
9 ounces (1-inch) cubed day-old firm white bread (about 10 cups)
Cooking spray

Preheat oven to 350°.

Heat oil in a large nonstick skillet over medium-high heat. Add bell pepper and onion, and sauté 5 minutes or until tender. Add corn, green onions, jalapeño, and garlic; sauté 3 minutes. Stir in 1/2 teaspoon salt and 1/2 teaspoon cumin. Remove from heat; cool slightly. Combine remaining 1/2 teaspoon salt, remaining 1/2 teaspoon cumin, milk, egg substitute, 1/2 cup cheese, and chipotle chiles in a large bowl, stirring with a whisk. Stir in corn mixture. Add bread; stir gently to combine. Let stand 10 minutes. Spoon into a 2-quart baking dish coated with cooking spray. Sprinkle with remaining 1/2 cup cheese.

Bake at 350° for 45 minutes or until pudding is set and lightly browned.

* Mike Scholl of my staff assures me that this recipe is well worth the time and effort. He claims to be a skilled amatuer chef, though he has yet to make anything for his boss and co-workers (hint...hint).