1. Detroit – Unprecedented Challenges and Opportunities Benjamin Erulkar Vice President Economic Development May 15, 2014

2. 2 “Paris of the Midwest” in 1950 1.8 million population Now: Detroit as the prototype of urban ills Bankruptcy (Chapter 9) in July 2013 Under 700,000 population A more complex reality: $10 billion in direct investment since 2008 Place-based redevelopment Beginnings of sectoral diversification Challenges and Opportunities

3. 3 Deindustrialization 300,000 manufacturing jobs lost since 1947 Population Great Migration leads to mass exodus Taxation, debt financing weigh more heavily on a shrinking tax base Leads to a decline in services Great Recession hit Detroit especially hard History

4. 4 Short Term: Make the City work again Fiscal Solvency Provision of essential services Medium Term: Redefine the City’s footprint 142 sq. miles (227.2 sq. km.) is not sustainable Long Term: Education and population Make Detroit a destination of choice Current and Future Considerations

5. 5 Goals: Restructure $18 billion in debt, and Minimize reductions to pensioners Preserve the City’s art collection Leave the City with a sustainable fiscal base The Grand Bargain: $816 million Coalition of government, philanthropies and City institutions (DIA) Union approval is threshold indicator of voluntary or court-ordered resolution Bankruptcy and Beyond

6. 6 Essential City services Security and first response Lighting and sanitation Regional transportation Remaking the City Detroit Future City Education From a school system to a system of schools Policy Priorities

7. 7 Industrial Policy Focus on autos? Diversify? Or both? Legacy costs How to manage public pensions Planning Benchmark from best-in-class Accountability Demand more from the leadership Lessons for Other Cities