Slideshow Transcript

1. Slide 1: The Detroit Economic Growth Corporation Presented to Case Studies: Closed Deals Michigan Suburbs Alliance and Successful Pitches 2008 Regional Redevelopment Summit Stay Focused. Be Efficient. Prioritize.
2. Slide 2: 01 What is the DEGC? 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. 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 © 2008 DEGC Confidential and Proprietary Information www.DEGC.org Page No. 2
3. Slide 3: 01 What are DEGC’s services?  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 © 2008 DEGC Confidential and Proprietary Information www.DEGC.org Page No. 3
4. Slide 4: Today’s Topics 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 © 2008 DEGC Confidential and Proprietary Information www.DEGC.org Page No. 4
5. Slide 5: 02 Telling Our Story AND Defining Detroit’s retail attraction strategy through the use of effective information and sound partnerships © 2008 DEGC Confidential and Proprietary Information www.DEGC.org Page No. 5
6. Slide 6: 02 Addressing Information Barriers Capturing Underserved Market Potential The Social Compact DrillDown analysis measures core market drivers: Size/Growth Buying Power Stability/Risk Using more accurate, timely data from 30+ public and proprietary sources © 2008 DEGC Confidential and Proprietary Information www.DEGC.org Page No. 6
7. Slide 7: 02 Capturing Urban Market Potential Bridging Public and Proprietary Data Through Technology … Public Data Proprietary Data Tax Assessment Data First American Real Estate Solutions Construction Permits InfoUSA Utility Usage and Bill Payments Acxiom Federal Deposit Insurance Corp. Equifax Internal Revenue Service Experian Home Mortgage Disclosure Act …and Alliances with Strategic Leaders for Enhanced Analytic Capacity © 2008 DEGC Confidential and Proprietary Information www.DEGC.org Page No. 7
8. Slide 8: 02 Demonstrate Downtown’s Potential 2006 Detroit Drilldown Focused on Downtown Detroit Larger Buying Power = Greater Purchasing Potential Average Household Income $70,000 $59,300 $60,000 $50,000 $44,600 $39,200 $40,000 $30,000 $20,000 $10,000 $0 Ce n su s 2000 2006 Ce n su s Tre n d DRIL L DOWN P roje c tion 8
9. Slide 9: 02 Demonstrate City’s Potential 2007 Detroit DrillDown Highlights 933,043  The 2006 Census population estimate was 871,121  DrillDown 2007 captured larger population by nearly 62,000 residents 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 Sources: Census 2000, Claritas Corporation, 2006 and Social Compact Detroit DRILLDOWN, 2007
10. Slide 10: 02 Highlight Individual Neighborhoods • 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 per Acre Up to $100K • Income density is above $100K - $200K $300K/acre in Rosedale, $200K - $300K Denby and Lower East Central, 300K - $400K higher than Royal Oak $400K to $830K ($280K/acre) and Dearborn 0 2.5 5 Miles ($146K/acre). Sources: Census 2000, Claritas Corporation, 2006 and Social Compact Detroit DRILLDOWN, 2007
11. Slide 11: 02 Focus on Signs of Strength/Stability • 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 New Home Buyer Income 2000 values in fourteen $18,000 - $30,000 neighborhoods; with the greatest $30,000 - $45,000 increases seen in the Central $45,000 - $60,000 Business District, West $60,000 - $90,000 Riverfront, and Corktown. $90,000 - $145,031 0 2.5 5 Miles Sources: Census 2000, Claritas Corporation, 2006 and Social Compact Detroit DRILLDOWN, 2007
12. Slide 12: 02 Focus on Opportunities • 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 Retail Leakage by Neighborhood support 500,000 square foot No Leakage Under $20 M of retail space $20 M to $40 M $40 M to $65 M $65 M to $99.8 M 0 2.5 5 Miles Sources: Census 2000, Claritas Corporation, 2006 and Social Compact Detroit DRILLDOWN, 2007
13. Slide 13: 02 Room for More Grocery Stores 4 1 3 2 GROCERY LEAKAGE © 2008 DEGC Confidential and Proprietary Information www.DEGC.org Page No. 13
14. Slide 14: 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. © 2008 DEGC Confidential and Proprietary Information www.DEGC.org Page No. 14
15. Slide 15: 03 Using “Detroit” In Your Message Perception of Detroit frames the Region  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 © 2008 DEGC Confidential and Proprietary Information www.DEGC.org Page No. 15
16. Slide 16: 03 Tools Any Community Can Use Find and use the positive news sources  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  Crains Detroit Business, DEGC, Detroit Renaissance, etc. © 2008 DEGC Confidential and Proprietary Information www.DEGC.org Page No. 16
17. Slide 17: 04 Tools Any Community Can Use Use the D Brand  Request the D brand resources www.dbrandsummit.com  The D brand is a branding effort to help attract companies, talent and investment into the region – and to help foster civic pride.  Resources can be customized © 2008 DEGC Confidential and Proprietary Information www.DEGC.org Page No. 17
18. Slide 18: 04 Tools Any Community Can Use Put it to Action  Act locally, speak regionally. Tell a positive economic growth story about the region  Link to other informational sites that reinforce your story  Tap into unconventional, but free, data sources © 2008 DEGC Confidential and Proprietary Information www.DEGC.org Page No. 18
19. Slide 19: 05 Thank You  Olga Savic, Vice President of Business Development osavic@degc.org (313) 879-3261  Erik Tungate, Business Development Manager etungate@degc.org (313) 237-6096 © 2008 DEGC Confidential and Proprietary Information www.DEGC.org Page No. 19