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March 03, 2022

SDBA: Empty southwest Detroit industrial sites target for new life

A business group in southwest Detroit wants to learn how to market vacant industrial land for new use without harming the area's tightly knit residential communities.

By Annalise Frank

A study on how to put unused industrial properties in southwest Detroit back into productive use, released Monday, pointed to several examples, including a 16-acre site at 2995 Hubbard St. that is owned by the Redford-based Piston Group.

A business group in southwest Detroit wants to learn how to market vacant industrial land for new use without harming the area’s tightly knit residential communities.

This ever-precarious balance is the subject of a new study released Monday by the Southwest Detroit Business Association and nonprofit Detroit Future City. It’s called Exploring Opportunities for Equitable Development in a Southwest Detroit Industrial District.

The goal is to lay out how reusing former industrial space can fit into an area development plan that’s equitable, centering the opinions of and benefits for nearby residents, especially those with low incomes in under-resourced areas.

New York-based community development financial institution LISC, or the Local Initiatives Support Corp., approached the SDBA and funded the study. LISC also manages the city of Detroit government’s Detroit Housing for the Future Fund, and previously created a similar report in Detroit’s Milwaukee Junction neighborhood with Vanguard Community Development Corp. It’s been studying how to re-imagine industrial areas in rust belt cities.

LISC granted the SDBA $70,000 and Detroit Future City $60,000 for the work.

The study looks at sites zoned for industrial use within a specific section of southwest Detroit bounded by I-96/I-75, West Vernor Highway, Livernois Street and Michigan Avenue. It’s an area of around 1.6 square miles around the Clark Street Technology Park, and includes around 5,300 residents and 30 existing businesses.

Part of it was used for decades ending in the late 1980s for assembling Cadillac cars for General Motors Corp. That complex got torn down in 1994 and the uses have been varied since.

Study: Exploring Opportunities for Equitable Development in a Southwest Detroit Industrial District
A Detroit Future City and Southwest Detroit Business Association study looked at opportunities for equitable development on unused or underused industrial sites in a specific sector of southwest Detroit, shown in a map of the entire city.

Identifying the issues

It’s a small slice of the total such land in Detroit. The city had more than 900 vacant industrial-zoned sites as of five years ago, according to a previous Detroit Future City study. But the study’s creators want it to be a model for elsewhere.

The central question is how these empty sites can become productive again and contribute to the economy without harming the residential areas they’re surrounded by. It’s a huge question, one that arguably has not yet been answered in southwest Detroit where environmental concerns proliferate amid pollution.

“They wanted us and Detroit Future City to explore … how we could strengthen what the existing assets are in this industrial area, how to attract more light industrial makers, manufacturing … to create and look at jobs for area residents that are good-paying, salary and career jobs that might not require … college education,” said Greg Mangan, real estate advocate at the Southwest Detroit Business Association.

Mangan hopes the study can be used to improve relationships between residents and existing businesses in an area where homes are sandwiched between industry clusters. He also expects it can bring ideas for amassing funding that can be used to help businesses with beautification efforts — like replacing a scrap yard’s sheet metal fence with a more attractive buffer, for example — and guide principles for what kind of development southwest Detroit wants to attract.

There was a bioethanol distributor who wanted to come to the area, Mangan said, called POET LLC. But it would have added fewer than 10 jobs while bringing 15-20 additional semitrucks to the streets.

“We just thought that wasn’t the best and highest use of that space,” Mangan said.

Mangan said engagement efforts can be used to help the SDBA and others working with economic development agencies weigh positives like jobs against negatives like environmental impact in order to assess what kind of companies should be lured to the area.

The SDBA and Detroit Future City did individual interviews and held virtual community meetings to garner input.

One potential opportunity area Mangan pointed to is cannabis. The growing industry has a “lot of potential for being an economic driver” while checking boxes on equity. And NBA Hall-of-Famer Chris Webber has already broken ground on a $175 million cannabis campus along Michigan Avenue in southwest Detroit.

Part of the solution to all these issues, the report says, is to expand the SDBA’s duties. The association could focus more on larger manufacturing and other industrial businesses, not just small businesses. It could also put more weight on whether or not to support development proposals that come down the pipeline. It could also create a new job title specifically focused on connecting businesses with community, marketing the area to potential site users and serving as an “equitable development advocate.”

Paying for it

One thing the association would need in order to take this on? Money.

“These roles require a long-term commitment to relationship building with business, community, nonprofit, and governmental stakeholders and must be adequately resourced if SDBA is to be successful in achieving its goals,” the report says.

The SDBA is also working with the Detroit Economic Growth Corp. and Michigan Economic Development Corp. on this potential new industrial district.

The study also identifies 11 specific sites ripe for reuse. Among them:

  • 16 acres at 2995 Hubbard St., the largest contiguous vacant site in the proposed industrial district. It’s owned by Redford-based Piston Group and is vacant but not being offered for sale or lease.
  • 10 acres at 2751 Clark St., for sale and used to store trucks for now.
  • 5.5 acres of city-owned property at 6370 W. Vernor Highway, next to 2.4 acres of privately owned property
  • Two historic warehouses at 2410 and 2330 Vinewood St.

Jesse Venegas, vice president of Ideal Group, a general contracting, steel manufacturing and distribution business in the area, said industrial and manufacturing companies don’t always get included in these planning conversations. He said he told other businesses: “This is your opportunity, you better get involved with this.”

He said he’s concerned about what this study is looking at: how to preserve the fabric and families of southwest Detroit, where his own family is from, while keeping the area competitive economically. How to create that “harmony,” understanding the needs of both parties: residents and businesses. And, he added, making sure the larger Detroit city government is prioritizing the area, as well.

“I think they should do this every five to six years,” Venegas said. “I think it brought a lot more people out of the woodwork to talk about things.”

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