Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Business Improvement Zone topic
No spam. Unsubscribe anytime.
Council authorizes Rivertown business-improvement-zone election amid questions on assessments and protections
Summary
The council authorized an election to establish a Rivertown business improvement zone, expected to raise about $864,000 the first year; proponents said major property owners will carry most costs and a two-year rescission process exists, while some members and owners voiced concerns about assessments and opt-out rules.
Detroit City Council authorized the Rivertown Business Improvement Zone to proceed to a property-owner election after an extended presentation and questioning from councilmembers.
Jefferson East and partners described the proposed BIZ as a pooled funding mechanism to pay for expanded safety patrols, cleaning, domestic-violence advocates and marketing along the Rivertown corridor. Josh Elling, CEO of Jefferson East, told the council that initial projections estimate roughly $864,000 in the first year and more than $10 million over a decade as development increases. He said three large owners — Bedrock, Princeton Management and McCormack Baron Salazar — would provide about 47% of the total assessment.
Staff and technical partners explained the assessment formula: a combination of the property’s assessed value and floor area ratio, with caps and guardrails. Presenters said the statute exempts single-family owner-occupied residences from assessments and provides a mechanism — an annual owners’ meeting — where property owners can initiate a vote to rescind the zone after two years if it is not working. They also said many parcels would carry very low annual assessments: more than 80% of parcels were projected to have assessments of $3,000 or less and nearly 43% would be $500 or less.
Councilmembers raised questions about letters residents received that overstated potential rent increases, the prospect of individual opt-outs, foreclosure risk for unpaid assessments and special protections for legacy, owner-occupied properties. Presenters said the letters had been corrected and that the statute does not allow individual opt-outs; they emphasized tax-deduction mechanics and potential revenue-neutral outcomes for many apartment owners.
The council recorded at least one objection on the record but approved the resolution to authorize the election process and related waivers, allowing the BIZ supporters to proceed with the required property-owner vote.
Councilmembers said they expect ongoing monitoring of rent impacts and pledged outreach to small property owners and tenants to mitigate unintended consequences.
Next steps include the property-owner election and ongoing engagement with business owners and residents as the BIZ board develops operations and oversight.
