The Dirt: No property tax relief yet, and Packard Plant has a demo deadline

Mayor Mike Duggan promised that the Packard Plant will be demolished by the end of the year. What will take its place? Another factory, he hopes.

The last time a major NFL event came to Detroit, the city spent an absurd amount of money demolishing abandoned buildings downtown. This time, there is less (but still plenty) of money going to things like signs and pavers. A lot has changed in 20 years.

To cap it all off …

Inflation is falling, but Michigan homeowners won’t feel the decrease in their property tax bills. Record property tax increases in the last two years reflect high inflation, and because there’s a multiyear lag in how the adjustment is calculated , relief isn’t on the way yet.

State law caps increases on the taxable value for people’s primary residence at either the rate of inflation or 5%, whichever is lower. That number is only uncapped when the house gets a new owner.

Last year, the adjusted rate reached the 5% cap for the first time in 28 years because inflation hit rates not seen in decades. It’s going to reach the cap again this tax year. (Detroit Free Press, State of Michigan)

Gussying up downtown

The city and the Downtown Development Authority (DDA) have been spending millions to make downtown more appealing ahead of the NFL Draft next month. The DDA has spent at least $5.7 million so far from the money it’s gained through tax capture and other sources.

What is it buying? A revamped Washington Boulevard median, new brick pavers on several blocks of sidewalk and incentives for parking lot owners to “beautify” their properties. The city commissioned a “Hollywood-style” sign spelling out “DETROIT” along I-94 — as well as five other welcome signs near city borders — for $400,000. It also controversially greenlit $215,000 worth of murals on buildings downtown as part of the NFL Draft package.

Because the Planning and Development Department didn’t get approval from City Council, which rejected the contract in January, the city hasn’t actually paid for the mural project. Claude Molinari, president and CEO of the Detroit Metro Convention and Visitors Bureau, said the draft will be the biggest sporting event ever hosted by the city. The NFL itself has a budget of $25 million for the event, and the city hopes to generate more revenue from spending by visitors.

In 2006, the city spent more than $150 million demolishing abandoned buildings and cleaning up downtown ahead of the Super Bowl . (Crain’s Detroit Business, Outlier Media, Freep, BridgeDetroit)

Gut reno to (almost) net zero

Kendal Kuneman spent $1,700 in 2016 on a Detroit Land Bank Authority home that her grandmother grew up in. The house didn’t even have a door when she bought it. It took eight years and a $275,000 renovation, but today, it has a door and is highly energy efficient .

Kuneman said she focused on the home’s thermal envelope, especially by closing any gaps where air could seep through. She did an infrared analysis to find leaks and installed double-pane windows, a metal roof and high-quality insulation. The home also has an efficient HVAC system and appliances. Kuneman expects her home to reach net-zero energy efficiency once she installs roof-mounted solar panels. She plans to rent out the home and make it available to Section 8 voucher holders. (Planet Detroit)

Development news quick-hitters

Mayor Duggan said the former Packard plant, once Detroit’s most conspicuous symbol of blight, will be completely demolished by the end of the year . The city will prep the site for a new factory and open bids in the next couple months. (Detroit News)

A 43.6-acre site in the Grixdale Farms neighborhood, east of Palmer Park, is no longer being considered by the city for a solar farm project. Residents had voiced concerns about property values, use of herbicides and the lack of upkeep on the site of another solar farm in Detroit. The city said proposed sites in other neighborhoods in the running still have “overwhelming support” from nearby homeowners. (Planet Detroit, Outlier)

Marcia Fudge, secretary of the U.S. Department of Housing and Urban Development, said she would step down from her post this month. She said the department needs over $70 billion to maintain its public housing, but it has only gotten around $3 billion from Congress . (USA Today, HUD)

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