Daily insights for city builders, delivered every morning at 6 AM ET. I’m Brandon Donnelly — a Toronto-based real estate developer and founder of Globizen. I’ve been writing here since 2013.

Tag: detroit

  • Why was Lafayette Park so successful?

    One of the places I had to visit during my trip to Detroit last weekend was Lafayette Park. Designed by famed German-American architect Mies van der Rohe, it’s the largest collection of his buildings and one of the most successful examples of urban renewal in America.

    Still today it remains one of the most economically and racially diverse neighbourhoods in the city and a bastion of stability within Detroit’s eroding urban fabric. But from a planning standpoint, it shares many of the same characteristics as other tower-in-a-park renewal plans. 

    It was built at a lower density than the neighbourhood it replaced (the unfortunately named Black Bottom slum) and it was far more insular in terms of its relationship to the greater city. From cul-de-sacs to expansive green space areas, it’s an island in the middle of Detroit.

    This recipe has created many spectacular urban failures all across the world. So why not in Detroit? One would think that Detroit of all places would suffer the same fate.

    I have 3 hypotheses.

    First, the fact that it’s a Mies community matters.  I’m sure it attracted and continues to attract residents simply because of who designed it. The entire neighbourhood is on the National Register of Historic Places.

    Second, the community doesn’t have the same monoculture that many other master planned communities had. From the beginning, the intent was to develop a self sustaining mixed-income neighbourhood with shops, restaurants, schools and so on.

    Third, I think the fact that the neighbourhood was more insular actually helped it. As the rest of the city’s fabric crumbled, Lafayette Park remained this kind of curated semi-urban space in the core of the city.

    These are just some of my initial thoughts.

    There has, of course, been a lot of rigorous academic thought on this topic by the likes of Charles Waldheim, the late Detlef Mertins, and others. 

  • Nothing stops Detroit

    When I told my friends that I had booked a weekend getaway to Detroit, I got responses like: “By accident?” and “Why on earth would you want to go there?” But that’s exactly what I did last weekend. I went to Detroit.

    I wanted to see first hand what was going on the city. I wanted to see if it really was the lost cause that the media makes it out to be or if it had the potential to come back. I had been following Dan Gilbert’s efforts to seemingly buy up every building in downtown Detroit and I wanted to see if those efforts were working. I’m an optimist, so I wanted to believe that they were.

    I also have friends who live in the city and a friend who’s working on a number of urban renewal initiatives in the midtown area. It was a great opportunity for me to get a local point of view and also learn about what’s coming in the development pipeline. So I met my friend Alex – pronounced Ay-lex in Michigan – and I got the run down on Detroit.

    Detroit is an absolutely fascinating city. As I mentioned before, it’s like visiting the ruins of a former empire, but one that’s recent enough to remind you of how ephemeral success can be. Whether it’s the death of Blackberry or the decline of Detroit, the mighty fall all the time. But it’s precisely this rich history that makes the city so interesting. When you walk inside some of the buildings built during the first half of the 20th century, you can’t help but be reminded of how important of a city Detroit was for America. Detroit was filthy rich.

    But even beyond the showpieces like the Guardian Building and Fisher Building, the Detroit landscape is littered with office and industrial buildings that would make any developer want to line up. One neighbourhood in particular that stood out for me was Rivertown. Running along the water just east of downtown, the area is filled with old brick buildings and the right street scale for a magnificent neighbourhood.

    However, I was told that this neighbourhood doesn’t really have a lot of momentum behind it. Most efforts are focused on the downtown and midtown areas. Still, I couldn’t help but imagine the area as a thriving mixed-use community. In the shorter term, I also thought the area could be really cool as an entertainment and nightlife district similar to Kuntspark in Munich, which was also a former industrial zone.

    Downtown and midtown are where it’s most evident that change is underway though. “Opportunity Detroit” is the slogan of Dan Gilbert’s real estate company, called Bedrock, and you see it plastered up in all of the windows downtown. Offices buildings are now leasing up and new retailers are moving in. I was told that five years ago none of this was happening. Woodward Ave was empty.

    As you move north towards midtown, you then discover a Michigan first: an urban depressed freeway. Detroit was the first city in America to build these and it’s certainly going to work in its favour as its city centre is reborn. I can only imagine how much more divided the city would be today had the freeways that wrap the core been built as elevated overpasses.

    But that’s not the case. Downtown and midtown are decently connected, albeit different in feel. In midtown, the buildings are more midrise in scale, the streets are broader, and the retail appears further along. There’s a Whole Foods that just opened up and fantastic new coffee shop called Great Lakes Coffee. It was busy when I was there on Sunday morning and I was told that it’s really the first place in Detroit where people could go to hang out and work.

    As you leave the core of the city things really fall off though. This is where Detroit becomes a prairie city and you see the one house on a block condition that the media likes to capture. It’s here where it becomes apparent that Detroit is simply too big, geographically, for its current population. You have infrastructure in place for 2 million people and yet a tax base of 700,000 people. No wonder it went bankrupt.

    So like many others have suggested before, I think Detroit needs to figure out a way to shrink in order to eventually grow. Just like a company going through restructuring, Detroit has to rid itself of some its liabilities. It’s going to have to take that write-down.

    At the same time, the population needs to be somehow consolidated and something needs to be done with all its excess land (urban agriculture is one idea). Jane Jacobs taught us that towers in a park don’t create urban vibrancy and the same can be said for houses in fields. Detroit is fragmented and divided. More so than dangerous, most of the city just feels eerily deserted.

    However, despite these challenges, two things really stood out for me during my visit.

    The first is that Detroit still very much has an ethos of production. It likes building and making things, and it’s visible in the emergence of brands like Shinola who are producing bikes, watches and leather goods right in the city.

    The second is that there’s a palatable sense of possibility. Detroit hasn’t lost that entrepreneurial spirit that made it a leader in manufacturing, music and sports. A great example of this is the Green Garage in midtown, which is a former Model T showroom turned sustainable coworking lab for Detroit entrepreneurs.

    But perhaps the best way to sum up this spirit is through a line I saw on a neon sign downtown on Woodward Ave. 

    It read: “Nothing stops Detroit.”

  • The Ruins of Detroit [Book]

    In light of my upcoming trip to Detroit, I thought I’d share a (photography) book that was recently recommended to me called The Ruins of Detroit. It’s by photographers Yves Marchand and Romain Meffre. You can check out some of the photos here.

    The imagery is absolutely incredible and I really like their description of the project. Here’s a part of it:

    “Detroit, industrial capital of the XXth Century, played a fundamental role shaping the modern world. The logic that created the city also destroyed it. Nowadays, unlike anywhere else, the city’s ruins are not isolated details in the urban environment. They have become a natural component of the landscape. Detroit presents all archetypal buildings of an American city in a state of mummification. Its splendid decaying monuments are, no less than the Pyramids of Egypt, the Coliseum of Rome, or the Acropolis in Athens, remnants of the passing of a great Empire.”

    I particularly like the last line: “…remnants of the passing of a great Empire.” When I look at their pictures, I like to try and imagine what those spaces would have been like teeming with people. Do you think anyone, at the time, could have possibly imagined that those good times were going to end? 

    Clearly most did not, because look at the money that was spent on what are beautiful buildings. As derelict as those buildings are today, each one of them was presumably built with economics in mind. Developers were making money, tenants were paying rent and people were occupying the spaces. Now look at them.

    There’s something really powerful about witnessing this kind of abandonment, particularly because it feels so recent. It’s one thing to look at relicts like the Coliseum and dismiss it as being eons ago. But this wasn’t that long ago. For me, it’s a stark reminder of how ephemeral things in life can be. Just because you’ve got it today doesn’t mean you’ll have it tomorrow.

  • Labour Day thoughts…

    Today is Labour Day (or Labor Day for my American friends).

    Many of us simply think of it as the official end of summer, but it’s also the day we’re supposed to celebrate the labour union movement and the achievements of workers. Given this, and the fact that yesterday’s post was about Detroit, it seems like an appropriate time to talk about jobs.

    In many ways, the woes of Detroit are simply an extreme example of what’s happening in many advanced economies. The loss of manufacturing based jobs is creating a void that is not being filled – or is being filled differently – by new industries.

    The first piece to this is what I mentioned yesterday: education.

    Manufacturing jobs allowed unskilled workers to make good middle class salaries. But other than a few remaining instances – such as in Fort McMurray, where high school graduates can make six figures working in the Canadian oil sands and the average price of a home is pushing $800,000 – I think it’s pretty clear that the opportunities for unskilled workers is on the decline.

    Therefore (and this is old news), we clearly need to figure out ways to retrain existing workers and ensure that the next generation is equipped with the skills and knowledge to compete in this new world. The problem though – and this is the second piece – is that I’m not sure the new economy will require the same raw number of people.

    What I mean by this is that scaling up production of an automative plant is quite different than scaling up an internet platform like Twitter or Tumblr. You just don’t need as many people, which is why the returns to being smart have grown massively for those few. And this is part of the reason we’re seeing rising income inequality across the board.

    Now, I don’t know what the answer is, but I think we’ve already shown that the transition to a new economy isn’t going to be a smooth one. To that end, I’ll leave you with one last thought which came from a former professor of mine at Rotman, Walid Hejazi.

    His argument is that it’s actually unethical for governments to subsidize unproductive sectors of the economy, such as a manufacturing, in order to sustain jobs. The reason being that you then have high school students telling themselves that they don’t need to go to University because they can simply go work at the local plant and make decent money. But what they don’t realize is that there’s a very real expiry date to those opportunities and, when it comes, it’ll be much harder for them to be retrained.

    What are your thoughts?

    Here’s what venture capitalist Fred Wilson had to say today.

  • Why I’m planning a trip to Detroit

    I’m planning a trip to Detroit this month.

    Some of you might be wondering why on earth I would do that, but I’m actually super excited. Why? Because I’m fascinated by the city. Detroit is such a dramatic example of how the fortunes of a city can change. I think some people forget what places like New York City and South Beach were like in the 1980s.

    But more importantly, I’m interested in the future of Detroit and the opportunities that might lie ahead. In many ways, the city feels like a clean slate. It’s a city that’s trying to completely rebuild and reinvent itself. And there’s a lot of smart (and rich) people, like billionaire Dan Gilbert, putting their weight behind its renewal. Through his company Bedrock, he has quickly become one the largest private landlords in the cityI also have a good friend who’s working in Detroit on strategies for the Midtown area. He’ll be my “tour guide” during the trip.

    It’s easy to get wrapped up in media headlines and so I want to see what’s happening first hand on the ground. Detroit has a long history of entrepreneurialism and so the eternal optimist in me wants to believe that it can come back.

    One of its big challenges, however, is education. As Harvard economist Ed Glaeser put it in his book, the Triumph of the City, one of the greatest things about the Detroit of yesterday was its ability to create a lot of high paying jobs for people with little education. Now the city has to deal with that legacy and few jobs.

    I’ll have more to say after my trip but, in the interim, what are your thoughts on Detroit? Can it come back? Will it ever be the economic powerhouse that it once was?

  • razorshapes:

    Kevin Bauman100 Abandoned Houses

    Artist’s statement:

    “100 seemed like a lot, although the number of abandoned houses in Detroit is more like 12,000. Encompassing an area of over 138 square miles, Detroit has enough room to hold the land mass of San Francisco, Boston, and Manhattan Island, yet the population has fallen from close to 2 million citizens, to most likely less than 800,000. With such a dramatic decline, the abandoned house problem is not likely to go away any time soon.”

  • Twitter opening office in downtown Detroit

    Twitter is opening an office in the Dan Gilbert-owned M@dison Building in downtown Detroit. Gilbert is a huge supporter of Detroit and is looking to establish “Webward Avenue” as the next Silicon Valley.

    Twitter opening office in downtown Detroit