The Dirt: U-M provides new details and designs for downtown center

The University of Michigan finally released some details on what’s going into its $250 million downtown Detroit campus after offering only generalities for months. Elsewhere, the city’s Office of the Assessor continues to be in the news as City Council discusses a new report alleging overassessments of Detroit’s poorest homeowners. And big investors are profiting from single-family housing in the metro area more than almost everywhere else in the country.

New details

The University of Michigan has released a few more details about its Center for Innovation downtown after breaking ground late last year. The university’s Board of Regents approved the building design last week (paywalled). The anticipated opening is spring 2027.

The first two floors of the building will have space open to the public, including a café and shared offices. The center’s new director said he hopes to enroll 2,000 students a year in workforce development training programs focusing on technology and innovation. Floors 3-6 will have space for graduate studies. The university has resisted calls to enter a community benefits agreement to give Detroiters a say in programming at the center, among other potential benefits. (University of Michigan, Axios Detroit, Crain’s Detroit Business, Outlier Media)

Pump the brakes?

Detroit City Council approved two emergency resolutions on March 26 in response to a recently published report from the University of Chicago finding the city continues to overassess property values for its poorest homeowners. Resolutions don’t have the power of law; they are an expression of the council’s wishes.

One resolution called for the city’s assessor to reduce property taxes by 30% for homes valued between $3,400 and $34,700. Detroit’s Assessor Alvin Horhn said he had “no statutory authority” to do that because it isn’t allowed under Michigan law. We’ve reached out to the assessor’s office to find out if it will carry out the council’s request, and if not, what might happen next. The council requested a separate study last year on Detroit’s assessment process. That was supposed to arrive ahead of the March 11 deadline to appeal those assessments, but it’s not done yet. Horhn put the blame for the delay on the “political hotbed” around assessments.

The second resolution asked the Wayne County Treasurer’s Office to halt all foreclosures on those same homes . Treasurer Eric Sabree said the office identified 375 such properties this year . He says his office reached out to the owners to see if they’re eligible for payment plans. (BridgeDetroit, Outlier Media, Detroit News)

Approve funding first, ask forgiveness later

The State of Michigan forgave a $3.5 million loan balance to the QLine . In exchange, the state gets advertising rights on the streetcar and at its stops. Michigan provided a $10 million loan in 2014 for the construction of the streetcar. Officials are working on a plan to transfer the QLine’s management to the Regional Transit Authority of Southeast Michigan this summer, and the deal requires QLine operator M-1 Rail to be debt-free. Gov. Gretchen Whitmer signed legislation in 2022 to provide $5 million a year in funding for the QLine through 2039. (Detroit News)

Boon to housing investors

Investors in metro Detroit’s single-family housing stock are seeing some of the highest returns in the country . Metro Detroit ranked fourth at 7.5% in returns, just behind other rust-belt metros Cleveland, Chicago and Buffalo, New York. Some of the priciest housing markets like San Francisco and San Diego saw returns in the 3%-4% range. One local real estate agent said the lowest-value homes are actually seeing the highest returns in rent, without even factoring in their greater potential for appreciation. I don’t want to draw too many conclusions from this report, but there are plenty of landlords in Detroit profiting off their renters while investing little into their homes . (Crain’s, Outlier)

Development news quick-hitters

Get a very early preview of the Ralph C. Wilson Jr. Centennial Park , currently under construction on the riverfront just west of downtown. The $80 million extension of the Detroit RiverWalk designed by famed landscape architect Michael Van Valkenburgh is expected to open next year. (Detroit News)

The city is suing the U.S. Census Bureau for undercounting Detroit’s population, which the bureau estimates at 625,561. Mayor Mike Duggan said the bureau discriminates against “poor and minority communities like Detroit” through its methodology. The bureau uses demolitions of abandoned structures to lower its population count, but it does not add population for homes without a building permit that are restored then occupied. The census count is tied to federal appropriations worth millions of dollars. (Detroit Free Press)

I’ve been closely following New York City’s most recent attempt at implementing congestion pricing . The city approved a change that will now charge vehicles between $15 and $36 (depending on their size) to enter the congestion zone in Manhattan. The extra money would go to public transit. A whole bunch of interest groups are voicing their opposition and filing lawsuits. The toll could begin as early as June this year. (New York Times)

The Dirt: U-M provides new details and designs for downtown center · Outlier Media