1. Presentation to Leadership Detroit November 17th, 2016
DETROIT Comeback City

2. Population: 680,250 People
139 sq. miles
Ethnic Mix- 81.5% Black, 12.8% White, 5.7% Other
Founded in 1701
Detroit’s Motto
Speramus meliora; resurget cineribus
“We hope for better things; it will arise from the ashes”

3. Detroit’s Challenges High levels of poverty Reputation challenges
Struggling education system and low levels of attainment
Population decline each year since 1950
from 1.8 million to 700,000
Significant infrastructure investment needed
Broken Institutions
Historically, the lack of good governance
Investments (last 5 years)
$3.1 Billion in investment
Over 30,000 new and retained jobs
Workforce
DESC providing workforce solutions
Strong partnership

4. Detroit’s Challenges Poverty, Income, and Education Population Detroit
Michigan US
Child Poverty
59%
23.8%
22%
Household Income
$26,325
$48,411
$51,939
Unemployment
12.4%
4.9% 5%
Less than High School Education
22.2%
11.1%
14%
Population
Census/Year
Detroit
Detroit Metro
1950
1,849,568
3,016,197
2010
713,862
4,296,250
2014 (estimated)
680,250
4,255,998
The challenges within a community are most clearly reflected to us by the most vulnerable of the population.
When the community thrives – the vulnerable will thrive.
Here’s the story in Detroit…….
Percentage of those with less than a high school education is twice that of Michigan’s rate.
(Taken from 2015 Federal Reserve Pres. Slide)

5. Prepared by State of Michigan Department of Technology, Management, and Budget- April 2015

6. Key principles to build The economy
Five P’s
PLAN
PARTNERSHIP
PEOPLE
Plan - Detroit needs a strategic plan that works to drive investment. Detroit Future City gave us a framework
Partnership - Can’t be every man for himself. Detroit important to state and regional survival, Region important to Detroit’s survival
People – Detroit will not continue to grow without opportunities for everyone. Decrease the gab between the haves and have not’s
Population - Grow population base. Young talent want strong urban core
Publish – We need to own our story. Outsiders don’t “get it” so we need to make message clear and frequent
Business Leadership – Public Sector Facilitation – Community Engagement
Participation of all people
Recognition and participation in changing global market
Innovate based on best practices
POPULATION
PUBLISH

7. Vision and mission DEGC Vision DEGC Mission
Be the leading economic development and jobs organization for the City of Detroit, leveraging our expertise and innovation to advance a sustainable, robust and inclusive economy.
DEGC Mission
To design and implement innovative solutions that drive investment, create jobs in and advance the economy of the City of Detroit through public and private sector collaborations.

8. Our Work/ Key Departments
Real Estate
Business Development
Small Business
“Moving Detroit forward by creating world class real estate projects through public private partnerships“
Development
Finance
Construction/contract management
“Positioning Detroit as the destination location for Corporate job growth through attracting new companies, while retaining and growing existing companies, to create jobs and drive investment”
strategy
marketing
lead generation
Site Selection
Deal mgmt. execution
incentive structuring
“Provide infrastructure for launching new businesses and growing existing businesses,”
“Point investment towards development corridors to help neighborhoods in transition,“
“Coordinate resources across diverse service providers”
1. Detroit Brownfield Authority, Downtown Development Authority, Local Development Finance Authority, Economic Development Corporation, Neighborhood Development Corporation, Eight Mile Woodward Corridor Improvement Authority.

9. Detroit has improved across core operational metrics...
Transformation Through Leadership
Detroit's leadership has driven operational improvements while positioning the city for the future.
Detroit has improved across core operational metrics...
...while making strategic investments in its neighborhoods and downtown
Blight – Identified 40,000 structures to salvage, demolished 10,000 structures with plans for 11,000 by 2018
Emergency services – EMS response time reduced from 18:04 minutes in January 2014 to 8:30 minutes by September 2016
Public transportation – 196 buses operating at full schedule for the first time in 10 years
Lighting – Installed 65,000 new LED streetlights
Housing – 30,000 Detroit residents able to avoid foreclosure in the last year
Transformational activity taking place in Downtown Detroit
New world-class arena being built for professional ice hockey team
Light rail system to debut in Spring 2017
Substantial mixed-use development
Comprehensive neighborhood revitalization program now underway
10 neighborhoods citywide selected for intensive design, planning and implementation
Goal to create more walkable, dense, urban neighborhoods around the city
Mobility and alternate modes of transportation key area of focus
Chief of Mobility Innovation hired in 2016

10. Private Real-Estate Investment is Pouring into City
$12 Billion in planned, active, or completed developments in Detroit since 2006, with nearly $9.4 Billion located in the greater downtown area1
Commercial
Residential
Retail
300,000 sq ft of office space absorbed since 2013; and 93% occupancy for Class A2
98% occupancy and over 6,700 new residential units in the development pipeline3
352+ retail establishments and 378+ restaurants in greater downtown, with more opening each month3
Ally signed
13-year lease on new office in downtown Detroit to house 1,500 employees
Statler Building: $40M development with 290 units, restaurant, and retail
Nike opened in Downtown Detroit in 2016
Lear invested $15.6M in two downtown properties for innovation and design center
3rd & Grand: $53M development with 231 apartments and 20k sq ft of retail
Whole Foods opened in Midtown Detroit
in 2013, seeking second location in 2016
1. Detroit Regional Chamber 2. Detroit Economic Growth Corporation 3. BedrockDetroit Matter of Fact Book and 7.2 SQ MI Report.
Note: Greater downtown includes Central Business District, Midtown, Eastern Market, Corktown, Rivertown, Woodbridge, and Lafayette Park neighborhoods.

11. “Businesses want to be in Detroit”
2015, 2014 x in jobs y in capital Progress Report
Flex-N-Gate
Sakthi Automotive
Ally Financial
Flex-N-Gate: $95 million investment to build a facility that will supply parts to Ford
Occupy 30 acres
Facility 350,000 to 500,000 square feet
400 jobs created; 750 possible jobs
$3.5 million grant by the Michigan Strategic Fund to assist with Next Michigan Corporation Designation
Acquired Land from EDC
Expanded Detroit plant to include R & D and additional production of aluminum castings.
90% of its aluminum castings work will now take part in the Detroit plant.
DEGC provided assistance for Tax Abatement and workforce programs .
Total Expected Investment: $31.8 Million, and 350 new jobs
Approximately 350 Ally employees are moving into Ally Detroit Center this month. Ally expects the majority of the 1,500 team members (employees and contract professionals) to be moved in by November 2016.
Ally will employ approximately 200 independent third party contractors and vendors in the city of Detroit.
DDA agreed to pay estimated $1M per year for ten years. Agreement has not been signed yet proposed disbursements are likely to begin in 2019.

12. DEGC Small Business
Expected investment for GGP stores’ new construction, expansions and renovations will exceed $50 million in investment
GGP awarded $540,000 in façade improvement program matching grants to 18 Detroit stores that will result in over $5 million in investment
GGP financing support for two independent Detroit grocers with total investment of over $11 Million
Buyers Council 2015 purchases from Detroit Based companies: $856 Million
13 Events held with D2D participation
$228.5m Approximate aggregate development investment

13. Talent is the core of Driving Detroit’s Business Success
Detroit's talent base is positioned to support the growing tech sector…
…as evidenced by recent success among both large and small businesses
Millennials (ages 18-34) make up 33% of greater downtown
10% higher than the national average for urban cities
Detroit ranks among top cities for a skilled workforce
#5 on Forbes 'Top Cities for Job-Seeking College Grads'
#4 'Hottest Metro for Advanced Industries' by Brookings
Trains Detroit residents for tech industry through 10-week coding bootcamps and workshops
Operates 1 of 9 Google for Entrepreneur tech hubs
Produced 200+ bootcamp graduates in video
Trained 250+ Detroit youth on how to code in 2015 – video
Ensures every Detroit high school student has a tuition-free path to an associate degree or technical certificate at any one of five community colleges
19,000 jobs added from in the Central Business District alone1, many in the tech industry
Large tech employers have relocated downtown from surrounding area...
...and major tech companies have followed suit, opening satellite offices in the city
Talent & training
Industry growth
Startup profile:
Founded 2011 to build, design, and develop mobile apps
Grown to 100+ employees, located in renovated historic downtown office
Utilizes highly-successful and oversubscribed apprenticeship model to incubate tech talent
1. Bedrock Detroit Matter of Fact Book

14. Detroit, Michigan- North America’s Automotive Center

15. Table of Contents
1. Michigan’s Position in the North American Automotive Sector
2. Detroit Auto
3. Start-up Culture

16. 76% of U.S. auto R&D investment ($10 Billion annually)
Epicenter of the North American Auto Industry
The Detroit region is the densest cluster of automotive design, engineering, R&D and manufacturing on the planet. Today, Michigan remains the center of the North American industry and is well positioned to drive the future.
16 automakers
12 assembly plants
23% of U.S. auto production
1,800 suppliers, including 61 of the 100 top suppliers to North America
76% of U.S. auto R&D investment ($10 Billion annually)

17. Major Autos in Michigan (partial list)
More than 150,000 people employed by Michigan’s automotive firms.

18. Leading location for N.A. Automotive Investment
While it is often reported that Mexico and the S.E. United States are the new centers for automotive investment, Michigan in fact is the leading state for new investment due to a number of important factors:
N.A. center for new vehicle technologies – light weighting, safety, powertrain and electronics.
Home to 90,000 engineers with more than 6,000 new engineers graduated annually.
More than 50 vehicles designed here and more than 30 vehicle models manufactured in our state.
Since 2010, Michigan has received $23.5 Billion in new automotive OEM and Supplier investments – more than any other state or province in N.A.

19. The People and Ideas to Drive the Future
Only one state in the U.S. has the all the necessary talent required to drive vehicle innovation and only one has an entire community dedicated this achievement.

20. Auto in Detroit:
Lear Corporation is a Global Leader in Automotive Seating & E-Systems, and Lear is ranked #154 on the Fortune 500.
Purchases six-story, 35,000 sq. ft. building in Downtown Detroit
Home of future Innovation and Design Center
Collaborating with Detroit based College for Creative Studies and Wayne State University College of Engineering

21. Other Auto in Detroit Chrysler Detroit Chassis Bridgewater Interiors
Global Automotive Alliance
GM HQ
Flex-N-Gate
Sakthi Automotive

22. Detroit’s Pivot to Mobility

23. Michigan’s Investment in Mobility
The State of Michigan, Michigan Department of Transportation and our public institutions and universities are making investments to ensure we have the right infrastructure, assets and legislation to support the Mobility industry.
Legislation allowing the testing of autonomous vehicles on Michigan roads
M City opens in Ann Arbor, a 30-acre connected and autonomous vehicle test center.
Southeast Michigan Connected Vehicle Test Bed opens
Detroit Test Bed Opens
State of Michigan announces $100 million development of the American Center of Mobility.
Pending legislation to expand autonomous vehicle testing without driver present on Michigan roads
Michigan unveils Planet M campaign to capture and promote mobility developments in Michigan.
Governor Snyder announces 'We Run On Brainpower' Initiative4
$25M Safety Pilot Model Deployment in Ann Arbor
Smart Corridor3 formed to developed first 'smart highway' in U.S.
City of Detroit to hire Chief of Mobility Innovation

24. Mobility Asset Map
The Detroit region is Michigan’s hub for Mobility projects, with connected and autonomous vehicle test beds spread across the region. In 2015, Michigan led the United States in connected vehicle projects (49) followed by California (35).

25. Mobility Spotlight: Decades of vehicle connectivity through OnStar.
Purchased MAVEN, car-sharing service available in multiple cities across the United States, including Ann Arbor and Detroit. Expanded MAVEN brand to encompass all GM personal mobility initiatives.
Invests $500 million in Lyft to deploy autonomous vehicle technology utilizing the Chevrolet Bolt, manufactured in Detroit.
Purchases Silicon Valley based Cruise Automation.
Acquires technology and assets, including software and patents, of ride-sharing company Sidecar.

26. Start-up Culture and Talent:
National start up accelerator launches first mobility initiative in Detroit.
2015 and 2016 classes totaled 22 companies, selected from over 1,000 applications from 52 countries.
Support includes ideation, leadership training and access to venture capital.

27. Detroit vs. Silicon Valley
Workforce
$68,354
Current Median Earnings
2,217,090
Total Jobs (2015)
$133,334
Current Median Earnings
3,277,587
Total Jobs (2015)
53,393 Elec., Indust., & Mech. Engineers
$44.32
Med. Hourly Earnings
26,853 Software Developers & Programmers $40.68
Med. Hourly Earnings
23,569 Elec., Indust., & Mech. Engineers
$55.86
Med. Hourly Earnings
150,212 Software Developers & Programmers $60.67
Med. Hourly Earnings

28. Startup Culture and Talent
Innovation
3,831
Patents related to vehicle navigation and related location data processing ( )
$22,452,530,555
Amount of automotive related investments announced ( )
1,213
Patents related to vehicle navigation and related location data processing ( )
$564,116,370
Amount of automotive related investments announced ( ) 35
Connected and Autonomous Vehicle Projects (2015) 49
Connected and Autonomous Vehicle Projects (2015)

29. Start-Up Culture and Talent
Cost of Living
$106.27
Real Value of $100 (Tax Foundation 2016)
$268,788
Home Value (2016 Q2)
$88.97
Real Value of $100 (Tax Foundation 2016)
$1,001,000
Home Value (2016 Q2)
$1,031
Rental Rates (2016 Q2)
$3,510
Rental Rates (2016 Q2)

30. The Start-Up, Tech, and Mobility Ecosystem
Michigan’s Mobility ecosystem has moved beyond the traditional automotive players to include the broader tech, telecom, start-up and venture capital communities.
Tech Giants
Startup Community

31. University Partners
The major universities in Michigan and the immediately adjacent states offer a pipeline of talent, as well as an opportunity for automotive focused partnerships found no place else in the United States.
4,950 Mechanical, Electrical, and Computer Engineering graduates (2015)
1,828 additional Computer and Information Science graduates (2015)

32. Case Study: Paradise Valley

33. Background Paradise Valley, in Detroit's Black Bottom.
66 square block area on the near east side of Detroit's downtown
From the 1920s on it was where the vast majority of the African American population of Detroit lived
By the 1940s it was teeming with the new immigrant blacks from the South who had moved north for good paying jobs in factories beginning two decades earlier on Henry Ford's promise of $5 per day

34. Background Hotels barber shops Speakeasies
These establishments encompassed:
Hotels
barber shops
Speakeasies
Restaurants, business clubs and bars
entertainment venues, bowling alleys
Banks
Churches
Drugstores,
A newspaper—The Michigan Chronicle
Apartment buildings
Service stations
Taxi cabs
Chapter of the Urban League
Funeral homes

35. The Plan DEGC acquired property mid-2000s
Creation of a Cultural/Entertainment District
Featuring a salute to the history of Paradise Valley and a new sense of “place”
Offering great amenities:
Dining
Nightclubs
Retail
Arts
Commercial businesses
$52 Million Investment into improved tenant spaces, roads, and other amenities

36. DEGC’s Investment through DDA Resulted in…
Public Space
Two Commemorative Walkways
A small stage Audio system in both the park and plaza
Attractions
The Music Hall/Jazz Cafe
Detroit Athletic Club
Ford Field
Comerica Park
Music Hall
Detroit Opera House
The Gem Theatre
Boll Family YMCA
1515 Broadway
Puppet Art

37. The Result cont’d… Took occupancy from 20% to 90%
Secured Quality Tenants
La Casa
Hamilton Anderson
Real Times Media
Created Market opportunity for traditional growth

38. Paradise Valley, additional info.
Selected Developer through RFP process.
Development will result in a boutique hotel, office, restaurants, and new residential units.
Established the Paradise Valley Conservancy to promote the cultural and entertainment of the historic Paradise Valley.
Hastings Place
H/A Extension
Harmonie Point
Harmonie Club Hotel

39. Stakeholder Relations Associate
Questions? contact:
Rodrick T. Miller
President and CEO
1(313)
Joseph W. Brennan
Stakeholder Relations Associate
1(313)

40. Other Key Assets Supporting Mobility Include
Planet M- Umbrella Michigan brand focus on collective mobility efforts statewide
Toyota Research Institute
$1 Billion in Funding
AI & Robotics focus
Toyota Tech Center
Google partnership with Roush Industries and Fiat Chrysler
M-City at U of M
32 are connected
Autonomous vehicle testing center
American Center of Mobility
100m
335 acre testing center