Hudson’s Detroit marks downtown’s first skyscraper in decades. Steven King/Icon Sportswire/AP
As mentioned by CNN
The new Hudson’s Detroit skyscraper in the heart of Motor City has become a symbol of Detroit’s return from a debt-ridden hole to a thriving city. This $1.4 billion project unites an open office campus, a retail zone on the site of the former J.L. Hudson’s department store, and an upcoming five-star hotel condominium as part of one integrated complex.
“Detroit was probably at the bottom of this country – from crime and unemployment to everything else,” said entrepreneur Dan Gilbert in an interview with CNN. “It was a 180-degree turn.” He owns the development of the complex on the site of the former Hudson’s, once one of the city’s loudest shopping centers, which closed in 1983.
Detroit’s population finally began to grow after nearly six decades of slow growth. At the same time, GM planned to move its headquarters to Hudson’s, JPMorgan also announced a move there, later confirming a scale of investment exceeding $100 million over more than ten years ago. On Wednesday the bank confirmed that its investments in the city exceeded two billion dollars.
Despite the noticeable revival of the downtown, the full sense of Detroit’s revival is not yet complete. Previously the city’s hardest-hit district experienced a true revival after bankruptcy in 2013, but some parts remain undeveloped, others sit vacant.
Detroit’s Rise and Fall
Detroit used to be the fourth-most populous city in the United States and played the role of the center of the American automotive industry. In 1950 its population surpassed 1.8 million people. By 2013 the population had fallen to about 700,000, and the city’s economy was undermined by a shrinking tax base, unemployment, rising poverty, and costs for health care and pensions. Dependence on the auto industry had turned into a weakness: global trade, automation, and the relocation of production outside the city reduced jobs in Detroit.
Many people with means concentrated in the suburbs, while the downtown area declined in population – by about 28% between 2000 and 2015, whereas neighboring counties grew by a few percent. The financial crisis led to reductions in core city services: trash removal, snow removal, street lighting. It is estimated that about 40% of streetlights were not working on the eve of the city’s bankruptcy in 2013.
In the crisis year of 2009, Detroit’s unemployment rate reached 29%, and the median home price was about $7,500. The state took control of local government, appointing a manager to oversee costs and operations. The city owed $7 billion, and thousands of municipal retirees were forced to accept reduced benefits.
The city managed to emerge from bankruptcy within a year, and the past decade has been a period of renewal thanks to investments from JPMorgan, Bedrock – Dan Gilbert’s company – and other companies and charitable organizations.
Gilbert, co-founder of Rocket Mortgage and owner of the NBA’s Cleveland Cavaliers, remained a steadfast believer in Detroit when many left the city during its toughest moments. After moving the lender’s offices to downtown, he purchased more than 100 city properties with a total value of about $7 billion.
“We’ve no doubt this has given Detroit a push,” said Gilbert. “Many companies have moved out of the suburbs and to other regions of the country.”
“GM and Detroit’s DNA are intertwined. Both are simply going together,” said Dave Massaron, GM vice president of infrastructure and corporate citizenship. “The city is now on the upswing for the first time in my life. It’s a great time to be here.”
“GM and Detroit’s DNA are intertwined. Both things simply go together.”
Later Jamie Dimon, JPMorgan’s CEO, emphasized that the city is at a growth inflection point and is becoming a model for corporate investment in underserved communities.
“The city is on the rise for the first time in my life. It’s a great time to be here.”
Mary Sheffield, president of the city council, was elected mayor on Tuesday and became the first woman to lead the city. She expressed support for continuing Detroit’s economic revival and expanding the impact of its successes to all neighborhoods.
“This is truly a critical moment for Detroit to sustain the growth pace,” emphasized Ashley Williams Clark, vice president of Detroit Future City, highlighting the importance of growth not only in real estate but also in equal access to housing and incomes.
“This is truly a critical moment for Detroit to sustain the pace at which we’re moving.”
Despite all the achievements, the city continues to ensure that development is inclusive: expanding employment opportunities, supporting housing affordability, and infrastructure projects remain priorities for all Detroit neighborhoods.
