We are seeing many changes in Detroit and it is bringing up questions about the impact of the rebirth. Investments downtown are drawing people from outside the city.
Billions of dollars in projects are planned in the coming years. You know what they say, if you build it, they will come.
“I would say 90% of my clients are not from Detroit,” said Jeffrey Gisstennar, of Life Inside Realty.
The concern for many who have lived in Detroit since before it was popular is gentrification, or people of more wealth taking over downtown and pushing those with less out.
Detroit realtor Jeffrey Gisstennar says as a realtor the demand is good for business. As a Detroiter he says he sees some people potentially becoming victims of downtown’s rebirth.
They are selling their homes while the market is hot, then renting. He fears eventually they will find their neighborhood unaffordable.
“They get happy about the money and they don’t realize they are being moved out,” he says.
Longtime businesses downtown feel the changes in their bank accounts - as rents rise, reality sets in. It happened this summer for Henry the Hatter owner Paul Wasserman.
He was priced out and forced to close the Detroit location, originally opened in 1893.
Money is tempting for landowners.
“We received some amazing offer for our building on Peterboro,” said Frankie Piccirilli, Chief Development Officer at the Coalition on Temporary Shelter or COTS.
COTS is an emergency shelter that serves only families with children. It is within eyesight of the new Little Caesars Arena.
The emergency shelter is moving out of its current building to a building on Wyoming near Marygrove College. But it is probably not what you think.
COTS says it will not sell the building on Peterboro.
“We are renovating this entire building, it is an old hotel, the Imperial Hotel, into 2 and 3 bedroom apartments for our families.
COTS says the big time money offers for the building hit home. Its leaders wondered where would the homeless fit in in this new Detroit?
“I think the homeless fit in with us and I am proud that our organization is leading the way in making a stake in Midtown. We have been here 30 plus years and are staying here,” said Piccirilli.
The idea is turning the emergency shelter in the city's hot part of town into long term low income housing for homeless families will put those families in a location where there are jobs nearby - setting them up to overcome poverty.
COTS said the city worked with them on the plan.
Mayor Mike Duggan’s office says they are working to have housing for all budgets throughout the city, forcing developers to regulate rates.
"We are also making sure as new development comes in that it includes affordable housing,” said Arthur Jemison, the city’s housing director.
COTS is working right now to raise money to renovate its building. You can learn more at http://www.cotsdetroit.com/.
