
Detroit, MI – A recent social media post by Wally Nowinski has reignited discussions surrounding urban development practices in Detroit, specifically criticizing the Detroit Economic Growth Corporation (DEGC) for its role in demolitions that have left "development sites" largely empty for decades. Nowinski stated in his tweet, "> It’s a shame so much of it was demolished at behest of the Detroit Economic Growth Corporation for “development sites” that largely sit empty decades later."
The Detroit Economic Growth Corporation (DEGC) acts as the city's economic development catalyst, tasked with attracting investment and creating jobs. However, the agency has faced criticism for its focus on downtown projects, with some observers suggesting it neglects the city's neighborhoods. Critics, including Michael Sarafa, president of the Bank of Michigan, contend that the DEGC's efforts often create "a tale of two worlds," where downtown flourishes while neighborhoods struggle.
One notable instance involved Ilitch companies, which leveled at least 30 buildings in and around "The District" for redevelopment, resulting in dozens of surface parking lots where historic structures once stood. The DEGC head in 2014 reportedly agreed to this deal, framing it as beneficial due to zero city investment. This outcome aligns with concerns that sites cleared for development do not always see the promised revitalization.
Detroit has undertaken extensive demolition programs over the past decade, with tens of thousands of blighted properties removed, often with federal and local funding. While these efforts aim to stabilize neighborhoods and increase property values, studies indicate that newly created vacant lots can still exert a negative influence on surrounding property values. Furthermore, recovering the costs of demolition through increased property tax revenues can take over 50 years in some scenarios.
The city continues to grapple with a significant number of vacant lots, with the Detroit Land Bank Authority managing tens of thousands of these empty spaces. Efforts are underway to find innovative solutions for repurposing these lots, including community gardens and infill construction. The ongoing challenge highlights the complex balance between blight removal and effective land reuse in Detroit's urban revitalization.