Welcome back. I’m still Malachi Barrett.

Mayor Mike Duggan and five City Council members announced plans to “fast track” tax breaks for new affordable housing projects.

A new ordinance, expected to be introduced next week, would offer property tax cuts to developers that offer rental units at cheaper rates.

Duggan said the tax breaks are directly passed on in savings to renters. The deeper the affordability, the deeper the tax cut.

“This is tax capture,” Duggan said. “Some people criticize it. I believe in it. The taxes we would capture go to lowering the rent on people who will live here long-term.”

Developers must commit to keeping rent discounted for 15 years, maintain compliance with Detroit rental regulations and pass an annual audit.

Developers have an option to renew the cuts for an additional 15 years. Failure to honor the low-rent commitment will automatically forfeit the tax abatement.

A majority of the council is poised to pass the ordinance. Council President Mary Sheffield and Council Members Fred Durhal, Coleman Young, Mary Waters, Latisha Johnson and Gabriela Santiago-Romero voiced support during a Tuesday press conference.

If approved, the ordinance would create an automatic tax break for qualifying developments.

Durhal, a former state lawmaker who also worked at the Michigan State Housing Development Authority, said the plan is two years in the making.

It’s a response to changes in state law that allow Michigan cities to collect a service charge instead of property taxes. The so-called “payment in lieu of taxes” was previously only available to projects that received federal funding.

Tuesday’s press conference was held at The Ribbon in East English Village. The 18-unit development is along a commercial corridor undergoing a wave of investment. Duggan said rents in the neighborhood are rising.

“People who could easily rent a house here at low cost are being pushed out,” he said. “Now they’re going to have another option.”

Johnson said the tax breaks will prevent expensive housing from displacing families. Her eastside council district experienced the largest population decline in the last decade.

Sheffield highlighted the potential benefit for smaller minority-owned developers who struggle to access tax breaks tailored for large-scale developments.

“It levels the playing field for responsible, small-scale investors and developers who are making a difference in our neighborhoods,” Sheffield said.

Duggan said developers can’t afford to rent property to low-income residents without a source of funds to replace the lost revenue. In other words, affordable housing isn’t affordable for developers without subsidies.

Santiago-Romero put it this way: “The math isn’t math-ing, y’all.”

Duggan said there are two main flaws with other types of tax abatements used to incentivize affordable housing. The abatements didn’t last long enough to cover construction costs and faced a lengthy process to receive approval from state and local entities.

Affordability guidelines are based on area median income (AMI) calculations set by the U.S. Department of Housing and Urban Development.

The tax cuts start to kick in when developers offer rental rates at 120% AMI, which equals $2,160 for a one-bedroom apartment.

But city officials hope most units will be under 80% AMI, which equals $1,440 for a one-bedroom apartment.

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No-protest zone at health clinics? 

The City Council will consider establishing buffer zones to protect abortion providers from protesters who gather outside health care clinics.

An ordinance introduced by Santiago-Romero would require people to stay eight feet away from others while protesting in the public right of way.

It also requires protesters to stay 15 feet away from any entrance to a health care facility.

The ordinance would apply to hospitals and medical offices providing out-patient treatment services.

A public hearing will be held on the proposed ordinance next Monday at the Public Health and Safety Committee.

Santiago-Romero said the ordinance aims to both protect the right to free speech and the right to seek medical treatment without being harassed.

Three healthcare professionals who supported the ordinance during Tuesday’s meeting said they’ve faced more harassment since abortion rights were repealed in 2022. 

“I am harassed every time I go to work by protesters who are often armed and very threatening to myself and my patients,” said Dr. Natalie Gladstein, an obstetrician gynecologist.

Ethics training needed 

The Board of Ethics is planning to introduce changes to city ordinances that would provide more guidance on prohibited activities.

The guidance would include more examples of campaign activities that aren’t allowed, including using city property and staff to sign petitions or distribute campaign messages.

Training Specialist Michael O’Connell said the board hasn’t enforced rules requiring campaign finance disclosures.

Council Members Scott Benson and Waters said they were unaware of requirements to disclose campaign contributions and expenditures with the board.

O’Connell said the board is expanding its educating and training program so city staff provide required disclosures regarding potential conflicts of interest.

“We don’t get enough disclosures,” O’Connell said. “We should be inundated every year and we’re not.”

OIG slaps contractor over deception  

A Detroit logistics and trash-out company is prohibited from doing business with the city for five years after falsifying insurance documents.

The Office of Inspector General debarred BDM Transport, LLC and its owner Marvin Eddins this month.

An OIG report found Eddins provided false and misleading information to city officials, concluding that “he is not a responsible contractor.” 

“Evidence shows that Mr. Eddins knew his workers compensation and commercial auto insurance were expired,” the report states. “Instead of renewing the insurance coverage, he not only submitted falsified documentation to maintain the contracts with the City, but later attempted to cover up his knowledge by falsely blaming his administrator during his interview with the OIG.”

Eddins ignored an opportunity to contest the OIG findings. Eddins has worked with the city since 1995. At the time of its suspension, BDM had five contracts with a total maximum value of $3.9 million.

BDM provides logistics services and also trash-out services for vacant and blighted properties, including interior and exterior debris removal and proper disposal.

Whitfield-Calloway: Don’t demo the Ren Cen 

Council Member Angela Whitfield-Calloway suggested office towers at the Renaissance Center should be converted into housing instead of being demolished.

She submitted a memo in response to news reports over the summer suggesting General Motors CEO Mary Barra and Dan Gilbert’s Bedrock real estate firm are open to a partial demolition of the iconic building.

Whitfield-Calloway instead argues that the top 20 floors of each tower can be converted to residential units, including affordable housing using tax incentives.

“City Council will study the downtown commercial market demand, downtown residential market demand, tax incentives and the rights of private corporations to better understand the situation,” she wrote in the memo.

“However, the future of Detroit looks better with the existing four towers of the Renaissance Center re-used and re-purposed. Detroit deserves better.”

Economic outlook improving 

Wage growth is expected to slightly outpace inflation during the next few years, according to an annual assessment of Detroit’s economic conditions.

Wage gains had been wiped out by local inflation recently, but University of Michigan researchers expect the trend will reverse from 2024 to 2029. But it’s not a blockbuster increase, wages will likely increase 1.4% for residents each year when adjusted for inflation.

Six in 10 Detroit households were considered lower-income (earning below $55,301) in 2022. This includes 80% of children in the city.

The distribution of Detroit’s economic prosperity remains uneven. Detroit’s Hispanic and Black populations are less than half as likely to live in higher income households than white residents.

Educational attainment continues to be a key pathway to economic prosperity. Only one-quarter of Detroit residents with a bachelor’s degree lived in lower-income households in 2022.

Election reminder: Early voting 

Tuesday was National Voter Registration Day, which inspired several mobilization events around the city. 

Sheffield’s office partnered with Black Church PAC and other groups to coordinated a “Voter or Else” town hall and concert at Huntington Place Tuesday night. 

Detroit will offer 16 days of early voting for the November presidential election. 

From Oct. 19 through Nov. 3, Detroiters can drop off absentee ballots or vote in person at any of 14 early voting centers.

Early voting sites will be open 9 a.m. to 5 p.m. every day, including weekends, and are overseen by bipartisan election inspectors. 

Two early voting centers will be located in each City Council district. Residents can also register to vote at the early voting centers. The locations have yet to be announced. 

Learn more with our Voter Guide.

City of Asylum/Detroit unveiled “Haiti Here and There,” a permanent outdoor photo exhibition featuring the work of their fellow, Dieu-Nalio Chery.

The exhibition explores Haitian culture and is featured on this building in the North End, which will house participants in the City of Asylum/Detroit fellowship program.

“Haiti Here and There” was created with support from Arts Midwest. Find it at 7432 Brush St.