Activity at the Fyfe Building

[SammyS]

First of all, no one wants to "lift Detroit out of it's grave". Developers are investing in the City because of generous subsidies and tax incentives, and because they're taking a chance that they can turn a fast buck on their investment. Residents are moving in because it's currently the IN thing to do. If they really wanted to "lift Detroit out of it's grave", they would claim residency and start ponying up City taxes.

Every dollar [[multi-millions in this case) that pours into the city is likely to have a more positive outcome over dereliction, abandonment or lack of maintenance. The motivation of investors is inconsequential. So what if they're motivated by money and profits. The fact that these investors are considering Detroit should be celebrated and encouraged rather than looked upon with suspicion. If it means the city offers concessions and teasers, why not? Government offers every home owner with an incentive through homesteading and mortgage interest tax relieve but no one complains about that. NEZ has lured more otherwise non residents in. That's a success, no?
Besides all that, if this building remains rent only like Kales, David Whitney or The Albert, then the investment is long term, not a quick flip.

[Honky Tonk]

Every dollar [[multi-millions in this case) that pours into the city is likely to have a more positive outcome over dereliction, abandonment or lack of maintenance. The motivation of investors is inconsequential. So what if they're motivated by money and profits. The fact that these investors are considering Detroit should be celebrated and encouraged rather than looked upon with suspicion. If it means the city offers concessions and teasers, why not? Government offers every home owner with an incentive through homesteading and mortgage interest tax relieve but no one complains about that. NEZ has lured more otherwise non residents in. That's a success, no?
Besides all that, if this building remains rent only like Kales, David Whitney or The Albert, then the investment is long term, not a quick flip.

You're right, so what if they're motivated by money and profits? Nothing, as long as it isn't my dime that's being used to profit someone else.

[SammyS]

You're right, so what if they're motivated by money and profits? Nothing, as long as it isn't my dime that's being used to profit someone else.

But it's OK for my dime to be used to support someone else's unsustainable lifestyle which BTW discriminates against those who have earned, saved and willing to lay down hundreds of thousands of $ into a city where only a few years ago would have likely gone to the suburbs? Detroit cannot afford to be too liberal with its social spending or expect potential investors to subsidize its social obligations beyond their own financial sustainability. That would drive further investment away when the city needs it most.

Anyway, are we absolutely sure The Fyfe is subsidized by the city? If not, then we have no argument. Let the developers do what they choose. If it is, then I'd agree, a certain portion, within reason of course, must be allocated for affordable living or provide a service in which the city can be reimbursed. Pay city back with interest may be an amicable solution.

But this thread has been railroaded, admittedly thanks to my contributions too, and resulted in what's leading to a Social Justice vs Capitalism discussion. I'm sure that was not the intent of the OP.

Whatever the outcome, I just hope it results in more growth, more population and greater financial sustainability for the city.

[archfan]

...
Anyway, are we absolutely sure The Fyfe is subsidized by the city? If not, then we have no argument. Let the developers do what they choose. If it is, then I'd agree, a certain portion, within reason of course, must be allocated for affordable living or provide a service in which the city can be reimbursed. Pay city back with interest may be an amicable solution.
...

If I understand it right, developers can get a tax credit from the Federal government if they agree to set aside a certain percentage of units for affordable housing. They can then sell that future tax credit to get the money they need to develop the building. The state administers the Federal program, but it doesn't look like the city gets involved.

Look up the Low Income Housing Tax Credit [[LIHTC).