MAYOR KILPATRICK’S $300M ECONOMIC STIMULUS PACKAGE
Mayor Kwame M. Kilpatrick today, while standing near a vacant apartment building before it was demolished, announced $10 million of his $300 million Neighborhood Opportunity Fund will be used to demolish 50 large structures in Detroit neighborhoods.
“Vacant apartment and commercial buildings have blighted our neighborhoods for decades,” said Mayor Kilpatrick. “It’s always been very costly to demolish them, but the $300 Economic Stimulus Package will provide the necessary funding for the demolition of at least 50 of these structures. I‘m hopeful City Council will review the details of this plan and make their decision based on the needs of our community instead of politics.”
The Building & Safety Engineering Department (B&SE) uses Federal grant dollars to demolish between 700 and 1,000 vacant structures annually. The overwhelming majority of the structures leveled are abandoned homes; which cost the department about $7,500 each to hit with the wrecking ball. B&SE will knock down commercial and apartment buildings when an emergency demolition is required.
While the $300 million Economic Stimulus Package will cover the cost of demolishing 50 structures, only about half have been identified at this time. B&SE director Amru Meah warns that this is preliminary list and properties could be removed from the list based on unforeseen circumstances. The current list is as follows:
Address of Properties Estimated Cost of Demolition
5301 – 9 Concord $634,960
282 Iron $695,428
2900 –2 Orleans $612,000
18520 W. Seven Mile $570,000
8611 Grinnell $400,000
3050 – 80 E. Outer Drive $360,000
7800 Pierson $264,000
35 Owen $178,648
17111 Second $176,688
1523 E. Jefferson $172,800
3265 W. Boston Blvd. $172, 416
615 S. West End $170,000
2903 Elmhurst $160,000
31 Woodland $147,672
2330 Vinewood $144,000
2725 W. Fort $133,920
18110 Weaver (3 Buildings) $130,594
30 E. Philadelphia $124,616
3067 E. Grand Blvd. $120,000
1982 W. Jefferson $120,000
12211 Dexter $91,500
1909 Erskine $86,400
7036 W. Jefferson $84,000
(The above estimated cost does not include the removal of any hazardous materials, investigation, or remediation. * indicates group of buildings.)
The Kilpatrick Administration last Wednesday hand-delivered to City Council nine very large packets of information detailing the much anticipated $300 million Neighborhood Opportunity Fund.
Mayor Kilpatrick and top administration officials began working on the Neighborhood Opportunity fund more than 18 months ago. They worked with the nationally-respected financial consulting firms JP Morgan Chase out of New York and Loop Capital out of Chicago to develop the $300 million bond initiative.
The package calls for the use of 15 percent of casino wagering taxes, which amounts to about $29 million a year, to pay off the bonds over a 30 year period.
The $300 million stimulus package will also fund:
- Building one new police district headquarters on the east side and expand three existing districts;
- Build two new fire stations, one of each on the east side and one of each on the west side;
- Install electrical generators at all fire stations;
- Remodel two neighborhood health centers to provide better pre-natal care and better care for infants and children;
- Establish a $15 million entrepreneurship loan fund that will be administered by the Detroit Economic Growth Corporation that would create jobs for Detroiters;
- Partner with foundations and banks to establish and grow a $10 million neighborhood preservation fund to address foreclosures, weatherization issues and other structural problems;
- Establish a budget stabilization fund of at least $75 million;
- Make major improvements to the Public Lighting Department;
- Make major improvements to aging Department of Public Works facilities; and
- Provide seed funding for the 10 year initiative to eliminate homelessness and provide housing for the homeless who need it.