Tactical Preservation Detroit, Michigan
A ULI Advisory Services Panel ReportTactical PreservationDetroit, MichiganJuly 29–August 3, 2018
A ULI Advisory Services Panel ReportTactical PreservationDetroit, MichiganIncremental Reuse of Vacant Buildingsto Spur Economic GrowthJuly 29–August 3, 2018
About the Urban Land InstituteTHE URBAN LAND INSTITUTE is a global, memberdriven organization comprising more than 42,000 realestate and urban development professionals dedicated toadvancing the Institute’s mission of providing leadership inthe responsible use of land and in creating and sustainingthriving communities worldwide.ULI’s interdisciplinary membership represents all aspectsof the industry, including developers, property owners,investors, architects, urban planners, public officials, realestate brokers, appraisers, attorneys, engineers, financiers, and academics. Established in 1936, the Institutehas a presence in the Americas, Europe, and Asia Pacificregions, with members in 80 countries.The extraordinary impact that ULI makes on land use decision making is based on its members’ sharing expertise ona variety of factors affecting the built environment, including urbanization, demographic and population changes,new economic drivers, technology advancements, andenvironmental concerns.Peer-to-peer learning is achieved through the knowledgeshared by members at thousands of convenings eachyear that reinforce ULI’s position as a global authority onland use and real estate. In 2017 alone, more than 1,900events were held in about 290 cities around the world.Drawing on the work of its members, the Institute recognizes and shares best practices in urban design and development for the benefit of communities around the globe.More information is available at uli.org. Follow ULI onTwitter, Facebook, LinkedIn, and Instagram.Cover photos: Cali Slepin/ULI 2018 by the Urban Land Institute2001 L Street, NWSuite 200Washington, DC 20036-4948All rights reserved. Reproduction or use of the whole orany part of the contents of this publication without writtenpermission of the copyright holder is prohibited.2A ULI Advisory Services Panel Report
About ULI Advisory ServicesTHE GOAL OF THE ULI ADVISORY SERVICES programis to bring the finest expertise in the real estate field tobear on complex land use planning and development projects, programs, and policies. Since 1947, this programhas assembled more than 700 ULI-member teams to helpsponsors find creative, practical solutions for issues suchas downtown redevelopment, land management strategies, evaluation of development potential, growth management, community revitalization, brownfield redevelopment,military base reuse, provision of low-cost and affordablehousing, and asset management strategies, among othermatters. A wide variety of public, private, and nonprofit organizations have contracted for ULI’s advisory services.Each panel team is composed of highly qualified professionals who volunteer their time to ULI. They are chosenfor their knowledge of the panel topic and are screenedto ensure their objectivity. ULI’s interdisciplinary panelteams provide a holistic look at development problems. Arespected ULI member who has previous panel experiencechairs each panel.The agenda for a five-day panel assignment is intensive.It includes an in-depth briefing day composed of a tourof the site and meetings with sponsor representatives,a day of hour-long interviews of typically 50 to 100 keycommunity representatives, and two days of formulatingrecommendations. Long nights of discussion precede thepanel’s conclusions. On the final day on site, the panelmakes an oral presentation of its findings and conclusionsto the sponsor. A written report is prepared and published.Because the sponsoring entities are responsible forsignificant preparation before the panel’s visit, includingsending extensive briefing materials to each member andarranging for the panel to meet with key local communitymembers and stakeholders in the project under consideration, participants in ULI’s five-day panel assignments areDetroit, Michigan, July 29–August 3, 2018able to make accurate assessments of a sponsor’s issuesand to provide recommendations in a compressed amountof time.A major strength of the program is ULI’s unique abilityto draw on the knowledge and expertise of its members,including land developers and owners, public officials,academics, representatives of financial institutions, andothers. In fulfillment of the mission of the Urban LandInstitute, this Advisory Services panel report is intended toprovide objective advice that will promote the responsibleuse of land to enhance the environment.ULI Program StaffPaul BernardExecutive Vice President, Advisory ServicesThomas W. EitlerSenior Vice President, Advisory ServicesPaul AngeloneDirector, Advisory ServicesCali SlepinAssociate, Advisory ServicesJames A. MulliganSenior EditorLaura Glassman, Publications Professionals LLCManuscript EditorBrandon WeilArt DirectorAnne MorganLead Graphic DesignerDeanna Pineda, Muse Advertising DesignGraphic DesignerCraig ChapmanSenior Director, Publishing Operations3
AcknowledgmentsON BEHALF OF THE URBAN LAND INSTITUTE, thepanel would like to thank the sponsors, the city of Detroit,the Michigan Historic Preservation Network, and DTE Energy Foundation for inviting the panel to Detroit to examine tactical preservation. In addition, Carolyn and PrestonC. Butcher provided funds both supporting this panel andfunding implementation of the recommendations.A special thank you goes to Maurice Cox, Kimberly Driggins,and Jacqueline Taylor for their support and putting togetherthe panel’s briefing materials. In addition, the panel thanksthe many other Detroit Planning and Development Department staff members who made the week a success.4Thank you to Beth Silverman, cofounder and vice president, operations, at the Lotus Campaign for helping securethis panel. The panel would not have been possible withouther help and dedication to this project and finding a pathfor funding. Finally, the panel would like to thank the morethan 90 residents, business and community leaders,and representatives from across Detroit who shared theirperspectives, experiences, and insights with the panelover the week.A ULI Advisory Services Panel Report
ContentsULI Panel and Project Staff.6Background and the Panel’s Assignment.7Vision and Guiding Principles.13Inclusive Approaches to Development.17Catalytic Tactical Preservation Projects.21Stabilizing Iconic Neighborhood Structures.25Implementing Tactical Preservation.31Conclusion.35About the Panel.36Detroit, Michigan, July 29–August 3, 20185
ULI Panel and Project StaffPanel ChairMichael SternPrincipalMAS PlacesJackson, WyomingPanel MembersDionne BauxDirector of Urban ProgramsNational Main Street Center Inc.Chicago, IllinoisJean CarroonPrincipal—Design, Preservation, and SustainabilityGoody ClancyBoston, MassachusettsBrian ColemanChief Executive OfficerGreenpoint Manufacturing and Design CenterBrooklyn, New YorkCaroline PaffPrincipalVI Development LLCBaltimore, MarylandRobert PeckPrincipalGenslerWashington, D.C.Adam SilvermanMemberCozen O’ConnorPhiladelphia, PennsylvaniaErnst ValeryManaging PartnerSAA EVIBaltimore, MarylandULI Project StaffPaul AngeloneDirector, Advisory ServicesMichaela KadonoffAssociate, Meetings and EventsCali SlepinAssociate, Advisory ServicesKarmi PalafoxSenior AdviserPalafox AssociatesMakati City, Philippines6A ULI Advisory Services Panel Report
Background and the Panel’s AssignmentThis population loss devastated the city’s financial standing, hurt city services, and has left more than 78,000vacant buildings and more than 17 square miles of publiclyowned vacant land across the city’s 139-square-mile footprint. During this same period, the regional population hascontinued to grow to about 4.3 million residents—makingit the second-most-populous Midwestern metropolitanarea. The city’s drastic population loss, with other financialDetroit, Michigan, July 29–August 3, 2018CALI SLEPIN/ULelected in 2013, Detroit lost 244,000 residents, or 26percent of the city’s total population. That population losswas not the start of the city’s decline, however. The city’speak population was in the 1950s with about 1.5 million residents. Today, Detroit’s population is approximately677,000 residents. About 80 percent of Detroit’s population is African American, compared with about 22 percentregionwide.The Vanity Ballroom on EastJefferson Avenue has falleninto disrepair. With more than78,000 vacant buildings inthe city, difficult decisions willneed to be made about whichprojects should receive limitedrestoration funds.CITY OF DETROITIN THE 10 YEARS BEFORE MAYOR DUGGAN wasA map of publicly owned land.The blue dots represent publiclots or vacant structures.reasons, led it to file for bankruptcy in 2013 to address anestimated 18 billion in debt and long-term liabilities.Today, Detroit’s population is stabilizing and its long-termliabilities have been restructured. Downtown Detroit hasseen a resurgence of restaurants, retail, and both renovated and newly constructed buildings. Although this success is great for the city and the region, Mayor Duggan ran7
on building “One Detroit” with investment not just withinthe core but citywide. While the city’s prospects are rising,such depths of decline on top of the extreme lack of localjobs and low levels of income defy traditional solutions andrequire innovative investment possibilities.To address the scale of the problem and establish arevitalized future city for all, the city of Detroit is pursuing an urban redevelopment strategy that first focuses onseveral identified neighborhoods in an attempt to meet thefollowing goals: Fostermore vibrant, growing neighborhoods acrossthe city; Preserveall regulated affordable housing units; and Ensurethat wherever growth occurs, it increases inclusion and reduces segregation.In part, the city of Detroit is achieving success in theidentified neighborhoods in which planning is alreadyhappening through drawing on lessons learned from thecollaborative template for economic growth deployed in theGreater Downtown. The city of Detroit together with InvestDetroit established a 30 million Strategic NeighborhoodFund (SNF) as a revolving loan and grant tool to supportinvestment in three initial target neighborhoods—LivernoisMcNichols, Southwest Detroit/Vernor, and Islandview/Greater Villages—and eventually to be rolled out to 10neighborhoods over the next decade. This SNF has impressively expanded to more than 130 million.This place-based strategy promotes residential and retaildensity, job creation, and efficient infrastructure improvement. The goal of the SNF is to stabilize and strengthenthese key neighborhoods so that property values rise andadditional private-sector capital is attracted to these areas,including from traditional sources such as commercialbanks. The SNF strategy also provides a critical opportunity to pilot innovative multisector partnerships to improvestreetscapes and parks, induce commercial development,and promote housing stabilization.Overlying this place-based approach is the recognitionthat Detroit is currently the most impoverished city in theUnited States, with 39.3 percent of Detroiters living belowA map of the original three SNFneighborhoods and the sevenadded as part of an expandedSNF program.8CALI SLEPIN/ULISNF planning projects (original 3)Expanded SNF planning projects(additional 7)A ULI Advisory Services Panel Report
Announced in 2017Planning completeAnnouncements pendingCALI SLEPIN/ULIStarting in 2018Starting in 2019the poverty line. This disparity is even more pronouncedwhen compared with the region. Intergenerational povertyis exacerbated by a struggling education system, lack ofhealth resources, and mismatch between available jobsand resident skill sets. Although place-based investmentsthat trigger economic drivers and generate growth can beMany of the neighborhoodplanning or frameworkprojects align with the SNFneighborhoods.targeted, growth alone will not level the playing field unlessall Detroiters are included in the process.A robust revitalization strategy for Detroit needs to includeboth equity initiatives in tipping-point neighborhoods andflexible, innovative service provision in neighborhoodsMedian Household Income by Race/Ethnicity for Detroit and the RegionRace or ethnicityCity of DetroitTotal populationCity of Detroitmedian incomeDetroit MSA*Detroit MSAmedian income 26,249White alone, not Hispanic or Latino11.1% 30,84370.1% 62,332African American81.0% 25,37922.2% 31,693Hispanic/Latino5.1% 30,3413.0% 45,057American Indian and Alaska Native0.5% 23,4010.3% 41,587Asian1.1% 31,6503.1% 87,890——— 47,046Some other race2.0% 30,7130.8% 39,825Two or more races1.5% 26,7891.5% 44,761Native Hawaiian and other Pacific IslanderSource: U.S. Census, 2012–2016 American Community Survey Five-Year Estimates (2016 inflation-adjusted dollars).*Detroit-Warren-Dearborn, Michigan, metropolitan statistical area.Detroit, Michigan, July 29–August 3, 20189
recovering from chronic neglect. Equity initiatives includeprojects like Ready-2-Learn hubs, which provide onestop access to early childhood health services; ProjectDestined, which trains urban youth in financial literacy,builds leadership skills, and provides mentorship througha hands-on learning program on real estate development;workforce programs like Detroit Conservation Corps, whichengage residents in the concrete work of rebuilding; andMotor City Match, which connects new and expandingbusinesses with vacant commercial space. These typesof initiatives ensure that place-based investments havetraction.Innovative service provision includes programs like CleanSlate, which connects residents with information and legalsupport to help expunge criminal records; Water Residential Assistance Program (WRAP), which provides supportfor households struggling to pay their water bills; andpop-up clinics, which provide comprehensive screeningand care to help prevent unplanned teen pregnancy andinterrupt the cycle of intergenerational poverty at a keymoment when two lives are affected. Placement of thesetypes of services is prioritized by areas of greatest needand by maximizing use of existing support infrastructure.The Panel’s AssignmentAfter years in which Detroit has used widespread demolition of vacant structures as a tool in its redevelopment,now is the time to turn to a strategy in which the stock ofsignificant historic buildings is reused to help spark neighborhood revitalization. Detroit’s Planning and DevelopmentDepartment (PDD) has coined the term tactical preservation to refer to the phased reuse of historic structures.The panel’s assignment focused on how the city of Detroitcan help facilitate the partial incremental reuse of someof these iconic buildings that because of various factorslanguish vacant in neighborhoods and along commercialcorridors. Specifically, the panel’s assignment focusedon when only partial reoccupation and adaptive use of abuilding is considered. These issues were presented as thefollowing questions to the panel: Howdoes a developer cover partial or entire insurancerequirements? Howmight zoning be changed to accommodate newuses?Defining Tactical PreservationThis approach attempts to reduce costs while amplifyingefficiency by being more targeted. It focuses on specifictypologies, those recognizable iconic buildings such asschools, banks, libraries, recreation centers, theaters, andchurches that contribute to the character of place whilefulfilling critical social, cultural, religious, and commercialfunctions of urban life. Power plants are also a significanttypology that provides an excellent opportunity to rethinkincremental adaptive use of large-scale buildings that have10outlived their original use, yet retain physical value in thebones of their structures and symbolic worth in their iconicurban skyline identity.The entryway of the partially restored Alger Theater in the EastWarren/Cadieux SNF neighborhood.[Image 5 Alger Theater] [End Sidebar]CALI SLEPIN/ULITactical preservation is an innovative historic preservationinitiative that focuses on adapting a single specific spacewithin a large building for new uses. In addition, theinitiative looks to streamline processes that can moreefficiently move parts of buildings into new use whilesecuring the remainder of the building envelope for futureuse, thus adaptively using specific space within a building.A ULI Advisory Services Panel Report
Cana mix of strategies be used in dealing with regulatory red tape to more efficiently transition the buildingfrom vacancy to partial reuse? Howcan current building codes be complied with topartially reuse the building? Howmight construction loans be facilitated andsecured? Howcan utilities be adapted to the partial use of a building’s space? Howshould the city develop a flexible but strategicframework for tactical preservation? What are potentialreplicable strategies to pilot citywide? Howshould the city develop partnerships with theprivate, nonprofit, and philanthropic sectors? Whatare some innovative funding and financing sourcesthat can help implement tactical preservation in the cityof Detroit? Howdoes Detroit begin to implement tactical preservation in the first three months, six months, and 15months?Among the city’s portfolio of publicly owned vacantstructures are 48 school buildings, many of which are architecturally striking and identified as nationally significant,making them eligible for listing in the National Registerof Historic Places. Nevertheless, they are also in varyingstates of disrepair and located in a range of neighborhoodswith diverse rates of stability and potential for marketability, which complicates their suitability for adaptive use. Anabundance of vacant but predominantly privately ownedproperty that is equally architecturally significant exists inthe form of religious structures, fire stations, banks, recreation centers, and theaters. These buildings are historicassets that add not only character but also value to thecity, providing a reminder of its remarkable heritage andcontributing to a unique sense of place.Detroit, Michigan, July 29–August 3, 2018Key RecommendationsBased on briefing materials provided by the PDD, a tour ofthe city of Detroit, interviews with more than 90 stakeholders, and rigorous panel discussion, the panel recommendsbroadening the tactical preservation term to encompasscomplete as well as partial renovation and adaptive useas the catalyst of neighborhood revitalization. The panelbelieves that the PDD must adopt a triage approach toevaluate structures, eliminate barriers, and set goals andtimelines for swift action over the next 12 to 18 months.Key recommendations include the following: Betactical about tactical preservation. Adopt a
the Michigan Historic Preservation Network, and DTE En-ergy Foundation for inviting the panel to Detroit to exam-ine tactical preservation. In addition, Carolyn and Preston C. Butcher provided funds both supporting this panel and funding implementation of the recommendations. A
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