Some Detroiters Living With Marathon Plant Pollution Find Peace – At a Price Written by John Carlisle Detroit Free Press Presentation by Ryan Marchand Wayne State University

Oakwood Heights, A southwestern-Detroit neighborhood, immediately adjacent to the Marathon plant (most-southern neighborhood, geographically) Pollution has been a problem for several decades Mostly an Italian community Majority of residents work(ed) at the steel mills in the area 2010 study by University of Michigan: most polluted zip code in the state Average home value: $16k

Marathon’s Solution Called the “Oakwood Heights Property Purchase Program” Purchase all of the surrounding land Tear down homes on each lot (294 homes) The anticipated “buffer zone” is roughly 100 acres About 1,200 people will have to relocate

The “Deal” Minimum Purchase Price: $40k + half of home value (now at $50k) - Homeowners 60 days to sign Minimum Purchase Price: $30k + 30% of home value – Rental Properties; Tenants receive $3k if landlord accepted the buyout

Current Progress 239/294 properties have been purchased 26 still actively working to complete sale of their properties 29 not yet showing forward motion Those who chose to stay follow 2 mindsets: – Peace & Quite (no neighbors) – Model 1 – Hoping for a better buyout offer down the road – Model 2

Economic Principles UfUf UiUi QHousing Quality$ Spent on Other Goods U i -U f > C moving Home Value$ $ Potential Revenue Actual Total Revenue R Total Cost TC Residence Quality Q PiPi PhPh

References Carlisle, J., The Detroit Free Press, 2014, Freep.com O’Sullivan, A., Urban Economics, 8 th Edition, 2012, 370 – 375.