Tuesday, October 02, 2007

Article in October 2, 2007 Detroit Free Press

Kilpatrick steps up retail recruiting

Mayor cites report's findings that Detroit's quality of life is better than people think.

David Josar / The Detroit News

DETROIT -- Touting new statistics that claim the quality of life in Detroit is better than many believe, Mayor Kwame Kilpatrick on Monday said he's renewing his bid to lure retailers from large stores to small specialty shops to the city.

Also on Monday, Kilpatrick released an update on steps his administration has taken to bolster six neighborhoods as part of his Next Detroit Neighborhood Initiative. The improvements, which started in May, have included road resurfacing, more code enforcement and Detroit police blitzes to remove abandoned vehicles and crack down on prostitution.

The glowing statistics, contained in a report released by the nonprofit Social Compact, claim Detroit has 933,043 residents, nearly 62,000 more than 2006 Census estimates. The report also claimed each resident spends a third of all their retail dollars outside the city -- roughly $1.7 billion in buying power that new Detroit businesses could capture.

Social Compact officials said they based their findings on a data collection method that includes tax assessments, credit card purchases, building and renovation permits and utility bills. Private groups paid for the $150,000 study.

"Accurate market information is the first step to attracting retail and other investment in our neighborhoods," Kilpatrick said.

Still, the 933,043 tally is down from the 951,000 residents the U.S. Census estimated in 2000.

City development officials will take the report and use it to reconnect with a number of retailers they've been trying to convince to open shop in Detroit.

"We'll go back to the people we've been talking to and show them this data," said the city's chief economic officer, George Jackson.

Since Kilpatrick took office, he has been stymied by efforts to draw retail to the city. He regularly champions his success in convincing Home Depot to open a store at Seven Mile and Meyers, but there have been few other success stories.

In the six months, Farmer Jack has shuttered the last of its Detroit stores, but in one instance, the Kilpatrick administration was able to convince an independent grocer to move into the vacated store at Seven Mile and Livernois. The new owners promise to include a deli and bakery when they open.

The report concludes Detroiters not only have plenty of spending dollars, but they live closer together. Six times as many people per square mile live in Detroit than elsewhere in the region -- a retailers' dream, said John Talmage, CEO and president of the Washington D.C.-based Social Compact.

Social Compact has done similar reports for eight other communities including Oakland, Calif.; Cleveland; and Jacksonville, Fla.

"Whoever comes here first will do very well here," Talmage said.

He notes the success Starbucks had when it opened its first store in Harlem in 2002, which led to a rash of other new business.

To back up his claim, he noted that major grocery stores need to have roughly $355 in business per square foot of store space. The party stores that dot Detroit do $855 per square foot.

Social Compact will continue studying trends in Detroit and complete other reports that could boost development in the city, Talmage said.

While Irma Raskowicz, who operates a beauty parlor and supply shop on McNichols west of Woodward, likes the numbers the mayor quoted, she noted that running a business is not as easy as finding a place with lots of people who have money.

"Do the stats account for the high cost of insurance? Do they include the theft and the crime and finding good workers?" Raskowicz, 49, said. "I'd love to see more retail too but Detroit has problems that make it tough to operate here."

But Colin Hubbell, a developer of several loft condominium projects who lives in East English Village, said he hopes the report will bring the sort of retail that proliferates in the suburbs.

"This should make a difference," said Hubbell, who noted he and his neighbors are miffed that, despite their buying power, they have to drive to the suburbs to do much of their shopping.

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