Economic development will grow substantially in the commercial, residential and retail sector, Archer predicts. He says more housing will be available for all income levels in the city.

More than 115 residential developments begun or completed since 1994 show Detroit's suitability for market-rate housing development, he says. More than 2,500 new and rehabilitated residential units have been added to Detroit's housing stock since 1994, with approximately 60% for low- to moderate-income families and senior citizens.

The city must also eliminate most of its inventory of publicly-owned properties through title clearance and sales to the public, while also taking care of abandoned homes, Archer says. Between January 1994 and mid-March 2001, the City demolished 16,450 dangerous, abandoned homes in Detroit neighborhoods.

Special development incentives and major projects are also high on the list of successes, Archer says. Detroit's Empowerment Zones attracted $6 billion in new development todistressed industrial areas and neighborhoods since 1994.

"Comerica Park, Ford Field, DaimlerChrysler's Mack I and II engine plants, renovation of General Motors World Headquarters at Renaissance Center, the ongoing construction of Compuware World Headquarters, and the opening of three interim casinos are development highlights that would make any major city proud," Archer says.

Detroit's tax revenue from casinos is expected to increase from $92 million a year from temporary casinos to $248 million each year from permanent casinos, hotels and related retailing space.

"Without tax revenue from the permanent casino developments, major budget deficits are projected for the city, due to the freeze on state revenue increases for most of the decade," he says.

During this decade, the city must continue to take advantage of state and federal incentives to fast-track private industrial development on brownfield sites, Archer says.

Retail development has also improved, and promises to get larger, the mayor predicts. Detroit has seen the return of major supermarket, drugstore and discount chains such as Kmart, Kroger, Rite Aid and CVS.

"Detroit residents are eager for shopping choices more like those found in Chicago and other major cities, rather than the strictly "discount" nature of some retailing currently available," Archer says, referring to department stores and nationally known retailers expected for the Campus Martius project downtown.

Archer also says Cobo Center, the city's conference hall, should be expanded, with the help of the regional hospitality industry. Hotel rooms are also important, he adds.

"It is absolutely essential that we add hotel rooms to downtown Detroit. The existing development agreement between Detroit's casino operators and the city calls for three hotels with 2,400 total rooms to be built as part of the development of permanent casinos. As host of the 2006 Super Bowl in our downtown Ford Field stadium, Detroit has committed to have the hotel rooms ready by February 2006. That obligation will be met," he says.

Archer is expected to announce soon whether he will run for a third term as mayor.

Instant Insights /

Decade Will See Continuing Growth, Mayor Says

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