Tungate & Savic: Case Study: Closed Deals and Successful Pitches

The Detroit Economic Growth Corporation Case Studies: Closed Deals and Successful Pitches Stay Focused. Be Efficient. Prioritize. Michigan Suburbs Alliance 2008 Regional Redevelopment Summit Presented to

The Detroit Economic Growth Corporation is:

A private, non-profit corporation established in 1978 devoted exclusively to supporting Detroit’s economic development initiatives

A provider of technical, financial and development assistance to the City and the business community

Funded by the City, private sector business, as well as by public and private grants

DEGC is dedicated to Detroit’s growth. DEGC’s brings together public sector policies and priorities with private sector development and investment interests to strengthen Detroit’s economic development. 01

Assist in retention and expansion of existing business

Attraction of new business

Site consulting

Project management

Technical assistance

Financial assistance

DEGC is uniquely positioned to assist its clients through the internal processes and procedures of various governmental entities 01

Today’s Topics

Where We’re Going

01 Case Study: How Detroit Is Using Information Led Development Strategies

02 How You Can Use “Detroit” to Leverage Your Community’s Strengths

03 Tools Any Community Can Use

Telling Our Story © 2008 DEGC Confidential and Proprietary Information www.DEGC.org Page No. Defining Detroit’s retail attraction strategy through the use of effective information and sound partnerships 02 AND

Addressing Information Barriers © 2008 DEGC Confidential and Proprietary Information www.DEGC.org Page No. Capturing Underserved Market Potential Using more accurate , timely data from 30+ public and proprietary sources The Social Compact DrillDown analysis measures core market drivers: 02 Buying Power Stability/Risk Size/Growth

Capturing Urban Market Potential © 2008 DEGC Confidential and Proprietary Information www.DEGC.org Page No. Bridging Public and Proprietary Data Through Technology … Proprietary Data First American Real Estate Solutions InfoUSA Acxiom Equifax Experian Public Data Tax Assessment Data Construction Permits Utility Usage and Bill Payments Federal Deposit Insurance Corp. Internal Revenue Service Home Mortgage Disclosure Act … and Alliances with Strategic Leaders for Enhanced Analytic Capacity 02

2006 Detroit Drilldown Focused on Downtown Detroit Larger Buying Power = Greater Purchasing Potential Average Household Income Demonstrate Downtown’s Potential 02

2007 Detroit DrillDown Highlights Sources: Census 2000, Claritas Corporation, 2006 and Social Compact Detroit DRILLDOWN, 2007

The 2006 Census population estimate was 871,121

DrillDown 2007 captured larger population by nearly 62,000 residents

933,043 17%

Average household incomes 17% higher than in 2000

An informal economy of $803 million

DrillDown estimates aggregate income in Detroit at $15.8 billion, $2.0 BILLION more than Census 2000 estimates

Demonstrate City’s Potential 02

Sources: Census 2000, Claritas Corporation, 2006 and Social Compact Detroit DRILLDOWN, 2007

Aggregate income in the Central Business District is estimated at 75% above Census 2000 reported income

Income density in Indian Village is more than twice the city average; at $444,000 per acre, this neighborhood compares favorably with surrounding areas such as Birmingham ($425K/acre) and Grosse Pointe ($442K/acre).

Income density is above $300K/acre in Rosedale, Denby and Lower East Central, higher than Royal Oak ($280K/acre) and Dearborn ($146K/acre).

Highlight Individual Neighborhoods 02

The average household incomes of home buyers is growing faster in Detroit neighborhoods than in surrounding suburban communities; incomes have more than doubled in Lower Woodward, the Central Business District, Jefferson/Mack, Butzel and Jeffries.

Median home sale values have more than doubled from Census 2000 values in fourteen neighborhoods; with the greatest increases seen in the Central Business District, West Riverfront, and Corktown.

Focus on Signs of Strength/Stability 02

Detroit residents spend more than $1.7 billion, more than $1 out of every $3 spent on retail purchases, at retailers beyond City limits.

Detroit residents currently spend $291 million outside city limits on apparel purchases alone.

Unmet demand for full service grocers in Detroit could support 500,000 square foot of retail space

Focus on Opportunities 02

Key Lessons from Detroit

Reframe the dialogue about your community using information.

Use unconventional data sources to show your strengths.

Focus on signs of growth, stability and strength, not decline, deficiency and weakness.

Engage all your stakeholders to institutionalize your message, including brokers, developers, public officials, residents, etc.

Keep it practical—focus on a few priorities.

Using “Detroit” In Your Message

Detroit is a world-class cultural center.

Detroit Institute of Arts is the fifth largest fine arts museum in the U.S.

Detroit is home to four professional sports teams (three located in the city): Detroit Tigers, Detroit Lions, Detroit Pistons and Detroit Red Wings

Detroit is the third largest casino market (behind Las Vegas and Atlantic City ) and the largest U.S. city with casinos

Detroit is the development hotspot.

5000 building permits since 2000; led the state for three years straight

New riverwalk, waterfront mixed use and downtown developments;

Businesses are choosing Detroit for their HQ

Detroit has stable neighborhoods with high incomes.

Detroit’s official population is 918,000, but it may really be around 933,000

Average income in Detroit is $48,000 but there are many neighborhoods where it is higher

Find and use the positive news sources Tools Any Community Can Use

Model D Media

Published by Detroit-based Issue Media Group, LLC.

The Web site posts daily reports on job growth and development in Detroit

MetroMode Media

The Web site posts daily reports on job growth and development in Southeast Michigan, from Detroit to Ann Arbor. A free, weekly e-magazine is published Thursdays