5 firms will offer staff cash to live in downtown Detroit

[Bham1982]

Most people choose to live in the suburbs because the cost of living is lower.

I think fewer than 1% of hypothetically polled Metro Detroiters would agree with this statement.

IMO, most people choose to live in the suburbs for a long list of reasons, of which "lower relative cost of living than Detroit" wouldn't be in the Top 100.

[detroitsgwenivere]

I thought that the incentives were for people who work for the particular companies that are participating in the program. Can someone please clarify?

Most of the DTE people I've met were either bigwigs who live in Palmer Woods/ Sherwood Forest/ Boston Edison/ Indian Village [[if they live in Detroit at all I mean), and contract workers who mostly live in the burbs and whos wives would never consider moving themselves or their children into Detroit for any reason.

Call me ignorant if you want, but this whole "lets get as many people moved into the downtown and surrounding areas as possible" movement makes me nervous. I've been living down here for years and I really enjoy not having a zillion people living around me. I consider it a blessing. Of course, there will be no incentives to help people like me stay put when all the rents start to go up, and I am forced to move.

If this program was only intended to renovate and fill some of these empty skyscrapers downtown, then I would be completely on board. Someone in the "people are moving out of my building" thread suggested that making these rentals more spacious and updated would be a huge incentive and I couldn't agree more. This isn't New York where your thankful to get a 700 sqft place for under $1200 a month.

[Det_ard]

Hey, it's not great that Detroit needs this incentive but it's good that there's a private initiative to create demand downtown and midtown. The difference between a hot and a cold market is one unit [[vacancy or no vacany). Perhaps this will spur developers and lenders to create more supply.

[stasu1213]

The owner of the Lafayette Towers Shopping Center strip mall better fall into step by providing necessitiy stores to fill up those empty storefronts. It was said that the owner of the strip mall charges a high price to rent space. He or they better rethink their rates. The market is a beginning but more specialties stores will be needed to accomadate potential new residents who will move into the area due to the incentives. I bakery, pharmacy,coffee shop, cleaners, Bo Rics type salon and maybe a restaurant opening where Lafayette/Orleans club once was. Residents would not need to go outside of the area for the basic needs.

[detmsp]

Call me ignorant if you want, but this whole "lets get as many people moved into the downtown and surrounding areas as possible" movement makes me nervous. I've been living down here for years and I really enjoy not having a zillion people living around me. I consider it a blessing.

Yes let's keep downtown desolate for you. /sarcasm

If you don't want to live too close to other people, we have a place for that. It's called the suburbs.

[mwilbert]

IMO, most people choose to live in the suburbs for a long list of reasons, of which "lower relative cost of living than Detroit" wouldn't be in the Top 100.

I think you are wrong. When people talk on this forum about what the problems are with living in the city, the only major one that isn't primarily a cost issue is crime. Property and income taxes are obviously cost problems. Insurance is a cost problem. Schools are only a problem if you can't pay for a private school. I think cost is a major driver.

[Kevgoblue]

Maybe I scanned thru the article too quickly, but I missed the answer to a basic question.........why would these companies subsidize their employees to move downtown?

The unemployment level in Michigan is one of the highest in the country, so they shouldn't need to bribe their employees to work there. Demograhic shifts in population for the last 50 years indicate people having a preference to live in the suburbs.
So how does subsidizing the 20 something's rent to stay downtown help DTE's bottom line? And please don't tell me something about caring for their emloyees.

[mwilbert]

So how does subsidizing the 20 something's rent to stay downtown help DTE's bottom line? And please don't tell me something about caring for their emloyees.

It may well not. But if I were telling the story, I'd say that DTE's health depends upon the economic health of southeastern Michigan, and that health is compromised by the problems of Detroit. Making Detroit more attractive not only strengthens the region but also should make it easier for them to attract employees from outside the area--a lot of those local unemployed people don't have the skills that DTE needs. And they may think they will get more and/or better work from employees who have really short commutes.

[noise]

I think fewer than 1% of hypothetically polled Metro Detroiters would agree with this statement.

IMO, most people choose to live in the suburbs for a long list of reasons, of which "lower relative cost of living than Detroit" wouldn't be in the Top 100.

Since I moved back to the area a year ago, I've heard this stated as a reason for people moving out of the city at least a handful of times, actually.

[Gannon]

Unless they also get rid of their cars, which they probably won't, this money will simply get gobbled up by the insurance rape.

[Nikki Pooh]

Unless they also get rid of their cars, which they probably won't, this money will simply get gobbled up by the insurance rape.

My point exactly. I work for one of the five companies. Frankly, the incentive to rent would only cover the increase in my car and renter's insurance.

[rencense]

Unless they also get rid of their cars, which they probably won't, this money will simply get gobbled up by the insurance rape.

cars are always a big expense, especially in the city. In my case I have a spotless driving record and an old hoopdie with PLPD coverage [[rocking the club and hidden kill switches to boot) so insurance isn't that huge of a factor. If you live in the CBD though I believe parking garage rents average between 50 and 100 a month per car. If you have full coverage on a nicer ride then it could be a significant increase. I do believe you can get insurance cheaper if you park in a secured garage or lot instead of just the street.

These programs assume you're working and living within a few miles of each other at most. I know personally I could mostly live without my car at that point and get around by bike/foot/bus and imagine others could as well. Granted living in metro detroit without a car can be tricky but downtown it is certainly doable [[not if you have to commute to the burbs for work) I could probably leave my car at my mom's house in the burbs for those times when i really needed it or sell it altogether. If you only need a car for a longer trek or road trip it can be cheaper to bum rides and occasionally rent a car than to go through all the expenses of owning one.

[Detroitej72]

Yesterday on the radio, one of the host's said Detroit wont truly rebound until all the older people die off, as they tend to be the folks who started the divide between city and suburb.

[Gannon]

If only they didn't pass the hatred down as some odd legacy. <sigh> At least many of them had a firm REASON to leave, their children don't have the same excuse.



Think it is curious that Matt Drudge considers this story a column one header...

[kryptonite]

I have to agree with the theory that costs can be a factor in moving out of Detroit. There are higher taxes than in suburbs, auto insurance rates are higher, a resident income tax, cost of private schools for families.

Maybe there are offsetting factors such as lower home prices in Detroit, but for many people it can be cheaper to move to the suburbs, particularly if they have children.

I think crime, quality of life and schools are probably the most important reasons people leave Detroit or refuse to move into the city. Crime is the main reason I personally moved out of Detroit.

But for younger people looking to buy/rent downtown because it is definitely becoming trendy, I think these stipends are an excellent opportunity. I could care less if some people consider it detrimental or a sign of desparation. I think it's an innovation and is likely to result in a couple of hundred new residents. I doubt the number would be anywhere near 16,000 though. It is likely to be primarily young singles that will be attracted to the offer.

[gnome]

It is my understanding this incentive program should not be viewed as an employee relocation grant or gift. This is a loan. A loan that is counted as income and will have to be paid back to the companies involved. Maybe someone who works at DTE or BCBS can clarify the particulars.

On balance I could see this program as a plus for an empty nester who is looking for a small place in the city; especially if they are getting tired of driving in from Metamora everyday, but I don't imagin any young families moving in due to the status of DPS.

[iheartthed]

I think fewer than 1% of hypothetically polled Metro Detroiters would agree with this statement.

IMO, most people choose to live in the suburbs for a long list of reasons, of which "lower relative cost of living than Detroit" wouldn't be in the Top 100.

Of the people I know who would consider living in Detroit, or who have recently left the city for the suburbs, almost all of cite higher insurance costs as the number one reason for not living in the city.

[detroitsgwenivere]

Yes let's keep downtown desolate for you. /sarcasm

If you don't want to live too close to other people, we have a place for that. It's called the suburbs.

Yeah ok. Lets keep downtown desolate just for me, cuz that's exactly what I was talking about. Sounds like I should move to a suburb near you.

I've been living in the downtown area on and off for over 15 years. I think I've earned the right to worry a little about the coming changes in the area around my home.

As an elected official and resident representative, let me tell you I'm definitly NOT the only person in my part of town worrying about this stuff.

[English]

Of the people I know who would consider living in Detroit, or who have recently left the city for the suburbs, almost all of cite higher insurance costs as the number one reason for not living in the city.

This was my biggest hesitation. My auto insurance just tripled. Oy.

[detroitsgwenivere]

The word is that Hudson-Webber is providing the majority of the grant money, and that the companies were approached by the mayor's office as part of his Detroit Works Project.

[Nikki Pooh]

It is my understanding this incentive program should not be viewed as an employee relocation grant or gift. This is a loan. A loan that is counted as income and will have to be paid back to the companies involved. Maybe someone who works at DTE or BCBS can clarify the particulars.

On balance I could see this program as a plus for an empty nester who is looking for a small place in the city; especially if they are getting tired of driving in from Metamora everyday, but I don't imagin any young families moving in due to the status of DPS.

Here's some information from the detroitlivedowntown.org

Incentives

If time and money are critical to your quality of life, then Live Downtown is for you. The average one-way commute in Southeast Michigan is 25.6 minutes. When you add it all up, that’s more than 2 weeks on the road annually-the national average for vacation time! That alone is enough for you to at least think about living near your place of work. If you’re still on the fence, how about some big help with your pocket book?

Here are the perks if you work at BCBSM, Compuware, DTE, Quicken Loans or Strategic Staffing Solutions:

• New homeowners receive a $20,000 forgivable loan toward the purchase of their primary residence.

• New renters receive a $2,500 allowance of funding toward the cost of their apartment in the first year followed by additional funding of $1,000 for the second year.

• Existing renters receive a $1,000 allowance of funding for renewing a lease in 2011.

• Existing homeowners receive matching funds of up to $5,000 for exterior improvements for projects of $10,000 or more.

For full eligibility and program benefits, please review the program guidelines.
The Downtown Detroit Partnership [[DDP) is the overall program coordinator and is leveraging Midtown Detroit, Inc’s [[MDI) existing resources and skills to launch and administer the successful Live Midtown program. Both DDP and MDI are non-profit organizations.

[Gistok]

Yeah ok. Lets keep downtown desolate just for me, cuz that's exactly what I was talking about. Sounds like I should move to a suburb near you.

I've been living in the downtown area on and off for over 15 years. I think I've earned the right to worry a little about the coming changes in the area around my home.

As an elected official and resident representative, let me tell you I'm definitly NOT the only person in my part of town worrying about this stuff.

While the rest of the city is depopulating at an alarming rate, you worry that your area may get too many people moving in..... what is wrong with this picture?

[Flintoid]

Anyone heard Mike Valenti's reaction to this? Im sure he was on his "Nothing good will work in Detroit" soapbox.

[jsmyers]

Maybe I scanned thru the article too quickly, but I missed the answer to a basic question.........why would these companies subsidize their employees to move downtown?

I think it boils down to the fact that the companies want to improve their location so that they can improve their recruitment and their bottom line. A company like DTE of BCBS basically can't go anywhere, so if they can make their neighborhood and city a better place, they will be able to recruit talent for less marginal cost. While companies like Compuware and Quicken Loans could theoretically locate themselves anywhere in the country, their leadership has decided that the best way to keep costs down is to make a low-cost location more attractive, rather than move to an attractive, high-cost location. With DTE and BCBS, there is also the issue of increasing their customer base. With Compuware and QuickenLoans, there is the issue of their leadership's sense of civic duty.

[brizee]

Anyone heard Mike Valenti's reaction to this? Im sure he was on his "Nothing good will work in Detroit" soapbox.

Only heard the preview, heard something about moving into Delray and turned it off.

That's what guy who never lets a lack of knowledge or expertise stop him from voicing an opinion.