Downtown Detroit in 1990 -- its Bottom-most Point?

“Empty hulks scar Detroit: Crain’s survey shows 46 vacant buildings, 7.2 million square feet”
Crain's Detroit Business May 21, 1990

I stumbled across this fascinating read today. It provides a snapshot of Downtown Detroit reeling under a wave of abandonment, frustrated renovation projects, pessimism and seemingly hopeless continual decline.

Even the handful of new developments such as Trappers Alley, Madden Building, Hines Buildings and River Place were viewed as threats to the remaining buildings' occupancies.

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The majority of buildings identified by Crain’s were offices before a gradual, 40-year exodus of jobs from downtown left them bare. But renovating them for office space makes little economic sense today, said Parker, owner of RFP Associates, a commercial real estate brokerage situated downtown in the Michigan Building on Bagley. New downtown office towers such as the Madden Building and the one under construction by Houston developer Gerald Hines are already making leasing tough for such downtown office stalwarts as the First National Building on Woodward, Parker said.

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Compare the above with this 360 degree article by Kirk Pinho in today's Crain's.

Attachment 35821

Only scraps remain...

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Two and a half years ago, Crain's detailed the remaining vacant eyesores in the central business district, with nine highlighted based on interviews with brokers, developers, architects and other real estate experts. In those 30 months, two-thirds of them have been purchased and viable redevelopment plans have been revealed, leaving a handful of large buildings left to renovate and bring back online.

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It is amazing turn around for downtown Detroit. And it seems likely
capital investments in downtown, midtown and the east waterfront
will continue with an increase in employment and in the residential
population.

It's all because of two men, Dan Gilbert, and to a lesser extent, Mike Ilitch [[or, Marion.)

If it weren't for them Detroit would have more vacant buildings and would be more run down, and an embarrassment, than it was in 1990.

What's been accomplished has been done in spite of the incompetent, corrupt municipal governance the city has experienced almost forever.

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Originally Posted by 3WC

It's all because of two men, Dan Gilbert, and to a lesser extent, Mike Ilitch [[or, Marion.)

If it weren't for them Detroit would have more vacant buildings and would be more run down, and an embarrassment, than it was in 1990.

What's been accomplished has been done in spite of the incompetent, corrupt municipal governance the city has experienced almost forever.

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Cool story.

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Originally Posted by 3WC

It's all because of two men, Dan Gilbert, and to a lesser extent, Mike Ilitch [[or, Marion.)

If it weren't for them Detroit would have more vacant buildings and would be more run down, and an embarrassment, than it was in 1990.

What's been accomplished has been done in spite of the incompetent, corrupt municipal governance the city has experienced almost forever.

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Totally agree. This statement should be kept in mind when those with little to no skin in the game rally against subsidies handed over to the private sector in the form of future tax revenue. There is no way the City could have made this happen without the initiative of the mentioned visionaries Detroit is lucky to have.
Detroit needs to encourage private investment without the red tape. Investment stimulates job creation which leads to organic wealth distribution and therefore upward mobility for those who are willing and able to take advantage of it. Bypassing these crucial steps by stealing from the productive class to buy the welfare class vote has the exact opposite effect. We've tried that for >50 years and it's been a proven failure. Enough is enough. Let's make Detroit Capitalist again.

Don't forget Peter Karmanos. Compuware started the city ctre revitalization.

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Originally Posted by SammyS

Totally agree. This statement should be kept in mind when those with little to no skin in the game rally against subsidies handed over to the private sector in the form of future tax revenue. There is no way the City could have made this happen without the initiative of the mentioned visionaries Detroit is lucky to have.
Detroit needs to encourage private investment without the red tape. Investment stimulates job creation which leads to organic wealth distribution and therefore upward mobility for those who are willing and able to take advantage of it. Bypassing these crucial steps by stealing from the productive class to buy the welfare class vote has the exact opposite effect. We've tried that for >50 years and it's been a proven failure. Enough is enough. Let's make Detroit Capitalist again.

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What exactly is capitalist about the state government deciding who is going to get by far the largest tax cuts for the investing?

The reality in your example is the government is directly interfering in the economy and picking the winners and losers at its own discretion.

Yeah, without Pizza-Pizza how would y'all have gotten so many parking-parking lot-lots? Who needs vacant buildings that could have been rehabbed and occupied, when you can tear'em down and make parking lots?

Which occurs under socialism as well, I'm afraid......

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Originally Posted by ABetterDetroit

What exactly is capitalist about the state government deciding who is going to get by far the largest tax cuts for the investing?

The reality in your example is the government is directly interfering in the economy and picking the winners and losers at its own discretion.

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Originally Posted by Zacha341

Which occurs under socialism as well, I'm afraid......

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Absolutely.

But that fact doesn’t change what is going on in this state sure as hell isn't capitalism.

^^^ Yep. It's mixed madness!

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Originally Posted by SammyS

Totally agree. This statement should be kept in mind when those with little to no skin in the game rally against subsidies handed over to the private sector in the form of future tax revenue. There is no way the City could have made this happen without the initiative of the mentioned visionaries Detroit is lucky to have.

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Everyone has skin in the game, in that it is their taxes being handed over. And I don't see much difference between hand outs to the poor, and handouts to the rich [[hi, TCJA!) except the rich really don't need them to eat.

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Originally Posted by SammyS

Detroit needs to encourage private investment without the red tape. Investment stimulates job creation which leads to organic wealth distribution and therefore upward mobility for those who are willing and able to take advantage of it. Bypassing these crucial steps by stealing from the productive class to buy the welfare class vote has the exact opposite effect. We've tried that for >50 years and it's been a proven failure. Enough is enough. Let's make Detroit Capitalist again.

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There you go, bringing class into it again.

SammyS's post shows an understanding of basic capitalist and conservative economic principals but ignores the reality of the situation where business leaders get huge subsidies to create jobs, then get a nice bonus of tax reform that further helps them, never allowing the money and jobs to filter down to the "welfare" class. If capitalism is so great for upward mobility in this country why do we constantly rank below more socialist European countries? The American dream is still attainable, you just have to live in a different country to achieve it.

As for the breaks and how they apply to Detroit, I am completely 100% against breaks for Ilitch and any sports and entertainment ventures. I am more accepting to the efforts by Gilbert where you are getting long term benefits of businesses and residents moving to the city that would not have otherwise. With that said as the recovery of downtown continues and gets on better footings I want to see the incentives lessened and the expectations of inclusion to be increased. It is a pretty precarious time for the city right now, the recovery could very well reverse if we aren't careful but at the same time if efforts for inclusion aren't increased you are going to see the divide between the "two Detroits" deepen and that type of resentment is hard to overcome if not addressed as it is happening.

In the 1990s when Downtown Detroit is turn into a nothingness. Coleman Young is just sitting his office with his head down. His face covered and yelled 'd&*%, d#%^, d*^&!!!'

Could someone post the original article. I tried reading it but Crain want membership

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Originally Posted by southen

SammyS's post shows an understanding of basic capitalist and conservative economic principals but ignores the reality of the situation where business leaders get huge subsidies to create jobs, then get a nice bonus of tax reform that further helps them, never allowing the money and jobs to filter down to the "welfare" class. If capitalism is so great for upward mobility in this country why do we constantly rank below more socialist European countries? The American dream is still attainable, you just have to live in a different country to achieve it.

As for the breaks and how they apply to Detroit, I am completely 100% against breaks for Ilitch and any sports and entertainment ventures. I am more accepting to the efforts by Gilbert where you are getting long term benefits of businesses and residents moving to the city that would not have otherwise. With that said as the recovery of downtown continues and gets on better footings I want to see the incentives lessened and the expectations of inclusion to be increased. It is a pretty precarious time for the city right now, the recovery could very well reverse if we aren't careful but at the same time if efforts for inclusion aren't increased you are going to see the divide between the "two Detroits" deepen and that type of resentment is hard to overcome if not addressed as it is happening.

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Oh trust me, Capitalism is in full force and running business as usual. We just refer to it as Crony Capitalism nowadays.

Let’s take the last 20 years as an example.

Whilst export centric nations [[Germany and France) were forming the EU in order to dilute their own currencies, the US accelerated the path of outsourcing to China. Major corporations like GM front ran the cheap resources [[land, labour, capital) with the assistance of the Chinese authority and Federal/State legislators. China maintained the Yuan/USD peg by repatriating USD for US Treasuries and US consumers barely felt inflation due to deflation importation. Furthermore, Chinese nationals laundered billions through western RE purchases primarily in Canada, West coast US and Australia. It’s a win win win for everyone involved except US manufacturing. Never said Capitalism was loyal. In fact, it was Capitalism on the backs of US workers that lifted millions of Chinese out of poverty.

But I believe the pendulum has swung its course further agrrevated by public frustration. It’s this sentiment that propels the Trumps to the highest office with slogans like MAGA.

Capitalists now need to find a new avenue that satisfies both their bottom line and keeps the pitchforks at bay. This ushers in a new era of crony Capitalism that uses public money for domestic wealth creation rather than making the rest of the world rich. Dare get in the way and you risk capital flight to more fertile pastures abroad.

20 years from now, you’ll be hearing about the next wave of outsourcing and how that only makes America stronger [/sarc]. Until then, enjoy the resurgence of US productivity, innovation and entrepreneurship. I truly believe the future’s looking pretty bright for the US over the next few decades.