Press Release – Detroit Charter Revision Commission

Economic Development and Planning
The way forward to local economic recovery, balance & thoughtfulness.

Tuesday, July 27, 2010 - @ 6:00 p.m. at Mayflower Congregational UCC Church, 7301 Curtis Avenue, in Northwest Detroit (48221)

Given the recent problems with government ranging from local incidents of corruption to state financial difficulty and federal gridlock, economic development is by far the most important governmental function that can put workers into jobs, and realign local economies to address local development issues. Cities, regions and states have and can make decisions on how they will deploy limited economic development resources to shape quality of life issues. Investments in job training, education, local infrastructure and the manner or fashion that government organizes itself to enhance economic development are all critical questions in moving ahead in Detroit.

The current Detroit Charter references economic development and/or planning in at least four sections including Section 4-401 City Planning Commission, 6-201 City Planning Department, 7-501 Economic Development Department and 8-601 Special Assessments. In as far back as the commentary associated with the 1974 Charter, it summarizes a precarious alignment between city and non-government development initiatives,

“The new Charter makes major changes in the conduct of City planning. A half century ago when the present Charter was written, planning was a function carried on haphazardly, often outside the formal structure of City government. The 1918 Charter placed the planning function under the control of a Commission, enjoying considerable independence from elected officials. Today, Detroit City government is a service institution whose annual budget exceeds 0.67 billion dollars. The demand made on scarce dollars is awesome and every expenditure must be planned carefully. Detroit can no longer afford the luxury of planning that is not responsive and responsible to the officers charged with raising, appropriating and spending the City’s tax dollars.” (p12, 1974 Charter with Commentary).

As for economic development, the same commentary indicates,
“In Detroit, both planning and urban renewal has been carried on semi-independently of each other and of the mayor. It is the intent of the subsection 7-501 (3) that the executive branch department responsible for community development be designed as the agency for the administration of renewal and development projects…” further, “It is the intent of” the department to ”analyze economic problems and development opportunities; recommend development projects; recommend the exercise of governmental authority in aid of development projects undertaken by commerce and industry…and prepare legislative proposals which will enhance the City’s capacity to alleviate economic problems.” (Ibid, p. 25)

To discuss the current and potential alignment of resources needed to address economic development and planning issues, the Detroit Charter Revision Commission
will host an informational panel discussion on the structure, mission and opportunities surrounding city planning and economic development. The meeting will be held Tuesday, July 27, 2010 @ 6:00 p.m. at Mayflower Congregational Church, 7301 Curtis Avenue, Detroit, Michigan in Northwest Detroit (48221).

The Commission has assembled a panel of subject experts including Dr. Karl Gregory, Distinguished Professor Emeritus, Oakland University. Dr. Gregory is an expert in economics, macroeconomics, finance and management. Dr. Gregory helped inspire the development of the First Independence National Bank, Detroit’s only African American banking institution. Dr. Gregory has advocated for various economic policies at the federal, state and local levels of government. He is also a former Vice-President of the Detroit Economic Club, Chairman and founding board member of Greater Detroit BIDCO, Inc., and has provided pro bono consultation services to key not-for-profit, civic and civil rights organizations in Detroit and throughout the United States. Also joining Dr. Gregory is Marsha Bruhn, AICP. Ms. Bruhn is the former Director of the City of Detroit Planning Commission. She is currently retired but serves as the Chair of the Detroit Landbank Authority. Ms. Bruhn has direct experience with neighborhood and commercial development activities and has advised the Detroit City Council on development issues for in excess of 20 years. Rounding out the panel is Dr. Michael Belzer, professor of Economics at Wayne State University. Dr. Belzer is an expert in transportation planning and development and is the chair of the Transportation Research Board Committee on Trucking Industry Research. Dr. Belzer is currently working to create a strategic economic development plan to transform Southeastern Michigan into a global freight transportation hub.

The panel will explore the proper balance between economic development and planning as well as the roles of economic development and planning organizations within Detroit’s government. The discussion will also seek to understand the extension of traditional governmental powers for planning and development and how these powers and functions have morphed into the private sector with the creation of private agencies like the Detroit Economic Growth Corporation EDGC), Downtown Development Authority (DDA), Detroit Brownfield Authority, Economic Development Corporation (DBRA), Neighborhood Development Corporation (NDC), Local Development Finance Authority (LDFA) and the Tax Increment Finance Authority (TIFA). With this array of development agencies as well as other internal business support organizations operating within city government such as the targeted business office, the neighborhood commercial revitalization office, along with the Planning department, many have begun to wonder if the current city efforts in this area are haphazard, uncoordinated and duplicative. With the demands of the current economy, do we have the required focus and leadership to alleviate economic problems? Can the Charter address these issues of coordination, accountability and the exercise of traditional government encroachments into the property rights and taxation burdens of Detroit citizens?

Each panel member will have 15-20 minutes to present their ideas on the above. After presentations, the members of the Charter Commission will ask questions of the panel on their presentations or topics related to the Charter revision process. Following the exchange between Commissioners and panel members, the Commission will open the floor for public comments. If you have questions, please contact Gregory Hicks, Executive Director, 2009 Detroit Charter Revision Commission at 313-628-2516.