CBA/NAC Session 2 by detroitjusticecenter

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Page 6, The Detroit Legal News NOTICE OF ENACTMENT OF ORDINANCE To: THE PEOPLE OF DETROIT, MICHI GAN. Through an initiative submitted by City Council resolution, the people of the City of Detroit adopted the following ordinance at the November 8, 2016 General Election: ORDINANCE NO. 35-16 CHAPTER 14. COMMUNITY DEVELOPMENT ARTICLE XII. COMMUNITY BENEFITS IT IS HEREBY ORDAINED BY THE PEOPLE OF THE CITY OF DETROIT THAT: Section 1. Chapter 14 of the 1984 Detroit City Code, Community Development, is amended by adding Article XII, Community Benefits, which consists of Sections 14-12-1 through 14-12-5, to read as follows: CHAPTER 14. COMMUNITY DEVELOPMENT ARTICLE XII. COMMUNITY BENEFITS Sec. 14-12-1. Purpose; Title. (a) The City is committed to community outreach and engagement that promotes transparency and accountability and ensures development projects in the City of Detroit benefit and promote economic growth and prosperity for all residents. (b) This article shall be known as the “Detroit Community Benefits Ordinance.” Sec. 14-12-2. Definitions. Community Benefits Provision means the agreement made by and between the Planning Director and the Developer which specifically addresses the issues raised by the NAC. Enforcement Committee means a committee led by the City’s Corporation Counsel and composed of representatives from the Planning and Development Department, Law Department, Human Rights Department, and other relevant City departments as determined by the Planning Director. Impact Area means an area determined by the Planning Director that includes all census tracts or census block groups in which the Tier 1 Project is located, and any other areas as determined by the Planning Director. NAC means the Neighborhood Advisory Council. Planning Director means the Director of the City of Detroit’s Planning and Development Department, or a member of the Planning Director’s staff working on behalf of the Planning Director. Tier 1 Development Project means a development project in the City that is expected to incur the investment of Seventy-five Million Dollars ($75,000,000) or more during the construction of facilities, or to begin or expand operations or renovate structures, where the developer of the project is negotiating public support for investment in one or both of the following forms: (1) Any transfer to the developer of City-owned land parcels that have a cumulative market value of One Million Dollars ($1,000,000) or more (as determined by the City Assessor or independent appraisal), without open bidding and priced below market rates (where allowed by law); or

Tuesday, November 29, 2016

(2) Provision or approval by the City of tax abatements or other tax breaks that abate more than One Million Dollars ($1,000,000) of City taxes over the term of the abatement that inure directly to the Developer, but not including Neighborhood Enterprise Zone tax abatements. Tier 2 Development Project means a development project in the City that does not qualify as a Tier 1 Project and is expected to incur the investment of Three Million Dollars ($3,000,000) or more, during the construction of facilities, or to begin or expand operations or renovate structures, where the Developer is negotiating public support for investment in one or both of the following forms: (1) Land transfers that have a cumulative market value of Three Hundred Thousand Dollars ($300,000) or more (as determined by the City Assessor or independent appraisal), without open bidding and priced below market rates; or (2) Tax abatements that abate more than Three Hundred Thousand Dollars ($300,000) of City taxes over the term of the abatement that inure directly to the Developer, but not including Neighborhood Enterprise Zone tax abatements. Sec. 14-12-3. Tier 1 Projects. (a) Community Engagement Process for Public Meeting. (1) Prior to submitting to City Council a request for approval of Land transfers or Tax abatements related to a Tier 1 Project, the Planning Director shall hold at least one public meeting in the Impact Area as defined in this Section. (2) The City Clerk shall forward notice of the public meeting via First Class Mail no less than 10 days before such meeting to all City of Detroit residents within three hundred radial feet of the Tier 1 Project. The notice shall include: a. The time, date and location of the public meeting; b. General information about the Tier 1 Project; c. A description of the Impact Area and the location of the Tier 1 Project; d. Information related to potential impacts of the Tier 1 Project and possible mitigation strategies; and (3) In addition to the notice requirement contained in Subsection (2) of this section, the Planning Director shall work with the District Council Member or Members representing the district or districts where the Tier 1 Project is located and at least one At-large Council Member to ensure that local residents, businesses, and organizations, especially those located in the Impact Area and those expected to be directly impacted by the Tier 1 project are informed of the public meeting. (4) At the public meeting, the Planning Director will present general information about the Tier 1 Project, discuss ways in which the Tier 1 Project is anticipated to impact the local community, and ways in which the Developer and the Planning Director plan to address or mitigate these impacts. (5) City Council shall appoint a liaison from the Legislative Policy Division to monitor the community engagement process and provide updates to the City Council. (6) The Planning Director shall provide notice to the liaison of all upcoming meetings and activities associated with the community engagement process related to the Tier 1 Project.

(b) Neighborhood Advisory Council. (1) The Planning Director will accept nominations to the NAC from any person that resides in the Impact Area. (2) All residents over the age of 18 that reside in the Impact Area are eligible for nomination. (3) The NAC shall consist of nine members, selected as follows: a. Two Members selected by residents of the Impact Area chosen from the resident nominated candidates; b. Four Members selected by the Planning Director from the resident nominated candidates, with preference given to individuals the Planning Director expects to be directly impacted by the Tier 1 Project; c. One Member selected by the Council Member in whose district contains the largest portion of the Impact Area from the resident nominated candidates; and d. One Member selected by the At-Large Council Members from the resident nominated candidates. (4) If the Planning Director receives less than nine nominations, the Planning Director may seek out additional nominations from individuals that live outside the Impact Area but within the City Council district or districts where the Tier 1 Project is located. (5) All actions of the NAC may be taken with the consent of a majority of NAC members serving. (c) Engagement with Developer. (1) In addition to the meeting required in Subsection (a)(1) of this section, the Planning Director shall facilitate at least one meeting between the NAC and the Developer to allow the NAC to learn more details about the project and to provide an opportunity for the NAC to make Developer aware of concerns raised by the NAC. (2) City Council by a 2/3 vote of members present or the Planning Director may facilitate additional meetings which the Developer, or the Developer’s designee, shall participate in as directed. (3) As part of community engagement the developer, or their designee, shall be required to meet as directed. (d) Community Benefits Report. (1) The Planning Director shall provide a Community Benefits Report to City Council regarding the Tier 1 Project prior to the request for any approvals related to the Tier 1 Project. (2) The Community Benefits Report shall contain: a. A detailed account of how notice was provided to organize the public meeting. b. A list of the NAC members, and how they were selected. c. An itemized list of the concerns raised by the NAC. d. A method for addressing each of the concerns raised by the NAC, or why a particular concern will not be addressed. (3) The Planning Director, where possible, shall provide a copy of the Community Benefits Report to the NAC prior to submission to City Council. (4) To ensure an expeditious community engagement process, the Planning Director, where possible, shall submit the initial Community Benefits Report within six weeks from the date the notice is sent of the public meeting.

Ordinance 35-16, page 1

(5) The Planning Director shall work with City Council to assure that, to the maximum extent possible, all of the approvals required of City Council may be considered simultaneously and subject to one approval vote. (6) The Planning Director shall work with other City departments to facilitate that Tier 1 Projects receive expedited City-required approvals. (e) Development Agreement. (1) All development agreements made between the Developer and the City related to the land transfers or tax abatements associated with a Tier 1 Project shall include the Community Benefits Provision, which shall include: a. Enforcement mechanisms for failure to adhere to Community Benefits Provision, that may include but are not limited to, clawback of City-provided benefits, revocation of land transfers or land sales, debarment provisions and proportionate penalties and fees; and b. The procedure for community members to report violations of the Community Benefits Provision to the NAC. c. The length of time that Annual Compliance Reports as outlined in Subsection (f)(2) of this section, are required to be submitted. d. Continued community engagement or community meeting requirements. (2) The Developer shall not be required to enter into a legally binding agreement with any individual or organization other than the City for the express purpose of fulfilling the requirements of this ordinance or other City-mandated community engagement processes. (3) The Developer may voluntarily enter into any contract or agreement related to the Tier 1 Project that does not pose a conflict of interest with the City. (f) Enforcement. (1) An Enforcement Committee shall be established to monitor Tier 1 projects. a. The Enforcement Committee shall be comprised of, at minimum, the following four individuals: i. Corporation Counsel for the City of Detroit; or their designee; ii. a representative from the Planning and Development Department; iii. a representative from the Law Department; iv. a representative from the Human Rights Department. b. In addition to the members of the Enforcement Committee as identified in Subsection (1)a of this section, the Planning Director may require that other departments participate in the Enforcement Committee as needed. (2) The Enforcement Committee shall provide a biannual compliance report to the City Council and the NAC for the time period identified in the Community Benefits Provision. (3) The Planning Director shall facilitate at least one meeting per calendar year between the NAC and the Developer to discuss the status of the Tier 1 Project for the time period identified in the Community Benefits Provision. (4) The NAC shall review any allegations of violations of the Community Benefits Provision provided to it by the community, and may report violations to the Enforcement Committee in writing.

(5) Upon receipt of written notification of allegations of violation from the NAC, the Enforcement Committee shall investigate such allegations and shall present their written findings to the NAC based upon the following: a. Whether the Developer is in compliance with the Community Benefits Provision; and b. How the Community Benefits Provision will be enforced or how violations will be mitigated. (6) The findings of the Enforcement Committee shall be presented to the NAC no later than 21 days from the date the violations were reported to the Enforcement Committee, unless the need for additional time is reported to City Council and the NAC within the original 21 day time frame. (7) If the NAC disagrees with the findings of the Enforcement Committee or determines that the Enforcement Committee is not diligently pursuing the enforcement or mitigation steps outlined in its findings, the NAC may send notice to the Enforcement Committee, and the Enforcement Committee shall have 14 days from receipt of notice to respond to the concerns outlined. (8) If the NAC is not satisfied with the Enforcement Committeeâ&#x20AC;&#x2122;s response, the NAC may petition the City Clerk and request that City Council schedule a hearing with opportunity for both the Enforcement Committee and the NAC to present information related to the alleged violations of the Community Benefits Provision and any enforcement or mitigation efforts that have occurred. (9) If City Council elects to hold a hearing, or based upon the written information submitted, City Council shall determine whether the Enforcement Committee has made reasonable efforts to ensure that the Developer has complied with the Community Benefits Provision. a. If City Council determines that the Enforcement Committee has made reasonable efforts, City Council shall notify the NAC and the Enforcement Committee of their findings. b. If City Council finds that the Enforcement Committee has not made reasonable efforts, City Council shall make specific finding to the Enforcement Committee on the steps that need to be taken to comply with the Community Benefits Provision. i. The Enforcement Committee shall provide City Council and the NAC monthly updates on compliance actions until City Council adopts a resolution declaring that the Developer is in compliance with the Community Benefits Provision or has taken adequate steps to mitigate violations. ii. City Council may hold additional hearings related to enforcement of the Community Benefits Provision as needed. Sec. 14-12-4. Tier 2 Projects. (a) Developers shall: (1) Partner with the City, and when appropriate, a workforce development agency to promote the hiring, training and employability of Detroit residents consistent with State and Federal Law. (2) Partner with the Planning Director to address and mitigate negative impact that the Tier 2 Project may have on the community and local residents.

(b) The Developerâ&#x20AC;&#x2122;s commitment as identified in Subsection (a) of this section shall be included in the development agreements related to any land transfers or tax abatements associated with the Tier 2 Project for which the Developer seeks approval. Section 14-12-5. Exemptions. The requirements of this ordinance may be waived by resolution of the City Council upon submission by either the Planning Director or the Developer identifying reasons that the requirements of this ordinance are impractical or infeasible and identifying how the Developer will otherwise provide community benefits. Section 2. All ordinances, or parts of ordinances, that conflict with this ordinance are repealed. Section 3. This ordinance is declared necessary for the preservation of the public peace, health, safety, and welfare of the People of the City of Detroit. Section 4. The article added by this ordinance has been enacted as comprehensive local legislation. It is intended to be the sole and exclusive law regarding its subject matter, subject to provisions of state law. (J.C.C. page ): Passed: Approved: November 8, 2016 Certified by the Board of County Canvassers: November 22, 2016 Published: November 29, 2016 Effective: November 29, 2016 JANICE M. WINFREY Detroit City Clerk

Ordinance 35-16, page 2

Detroit’s Community Benefits Ordinance Yields Hours of Dialogue and Almost No Community Benefits March 19, 2018 In 2016, Detroit voters approved one of the nation’s first community benefits ordinances. The new law requires developers — who are going to get tax breaks or other economic incentives for large projects in the city — to sit down with residents and listen to their concerns about how the project will impact communities. The measure made it on to the ballot, in part, because of concerns about ample tax abatements given to developers. Some thought the city was handing these out without enough consideration for the community that would be missing out on that revenue. In its first year, the new ordinance required six large development projects to follow the new process. Of the six projects: One is still in negotiations with the city One is the posterchild for this new law - a $100 million renovation of the abandoned Herman Kiefer Hospital campus north of downtown. The developer has agreed to contract with local residents for some of the rehabilitation work and says it will first offer new rentals to existing members of the community. Four belong to Dan Gilbert’s real estate company, Bedrock. The projects are a combination of new construction and rehabilitation projects, totaling $2.2 billion.

The 1920s-era Book Tower skyscraper has sat vacant for the past decade. Bedrock LLC plans to turn it into office spaces, residences and a small hotel.

A rendering of Bedrock LLCʼs Monroe Block development downtown. The company plans to construct an office tower and mixed-use buildings.

WDET found that after 12 weeks of community benefits talks with residents across the four projects, Bedrock committed to two community benefits in its agreements with the city. The first: Bedrock would communicate with residents about constructionrelated activity. And the second: Bedrock would support job training initiatives, something the company has been doing for years. Bedrock officials say while they didn’t make major changes to the agreement, the company did do other things, like add greenspace to its plans. In addition to the six projects, developers twice volunteered to go through the meeting process — Palace Sports and Entertainment did this with the Detroit Pistons’ practice facility and Bedrock LLC with the former Detroit Free Press building rehab. WDET found the city last year conducted over 28 meetings for the

community benefits ordinance process. The conversations between community members and developers resulted in mitigating the negative impacts of the new construction and in some cases developers making tweaks to their plans. But, after all was said and done, the first year of Detroit’s Community Benefits ordinance yielded almost no community benefits that the city can enforce. And there’s debate about whether the law is effectively giving voice to community concerns or resulting in tangible neighborhood amenities. WHAT DOES A CBO MEETING LOOK LIKE?

Working with the Biggest Player in the Game Dan Gilbert is one of the biggest private property owners in downtown Detroit. His real estate development company, Bedrock, has five major projects projects — totaling about $2.2 billion in construction costs and $250 million in tax incentives — that participated in the community benefits process last year. So what was it like for residents to work with the biggest player in the game? To answer this, let’s look at one of Bedrock’s three community benefits processes - the Book Tower rehabilitation and Monroe Block development, two different projects that the city grouped into one process. Rogelio Landin lives across the street from the iconic, but abandoned, Book Tower. He remembers seeing activity around the tower. Last year crews power-washed the facade and have been gutting the building in preparation for a hotel, office space and residences.

“When I first saw what was happening, I thought it was just fantastic,” says Landin.

Landin, a 64-year-old lifelong Detroiter volunteered to serve on the Neighborhood Advisory Council (NAC) to the Book Tower and Monroe Block projects. He and eight others were selected by fellow residents and city officials to make up the nine-person panel that would spend the next several weeks learning about the projects and making recommendations to Bedrock.

Rogelio Landin, a 64-year-old downtown resident, served on two Neighborhood Advisory Councils last year.

Alexandra Novak, a 24-year-old urban planner, served on the NAC alongside Landin. She says combining these two very large, very different projects into one community benefits projects overwhelmed the NAC. Despite reading the ordinance and city officials explaining how everything would work, Novak says she was still confused about what exactly she could ask from the developer.

Alexandra Novak, a 24-year-old urban planner, served on two of the Neighborhood Advisory Councils downtown.

says Novak.

“What was I supposed to be asking about? … That was still really unclear to a lot of us throughout the whole process,”

The NAC brought up concerns about issues related to the construction itself: parking, traffic, pedestrian walkways and noise. Bedrock representatives

explained their existing plans, saying the company was working on a traffic logistics plan and would comply with other city ordinances. Company representatives also agreed to set up a direct line of communication for submitting complaints about any problems that would arise.

THE NATIONAL THEATRE CONTENTION

The National Theatre, designed by Albert Kahn, is over 100 years old and the last remaining theatre from DetroitĘźs first theatre district.

A rendering of Bedrockʼs plans for incorporating the National Theatre facade in the Monroe Block development.

A significant portion of the conversations in the meetings dealt with an historically designated structure left standing on those mostly vacant lots off Monroe Street - the National Theatre. It was designed by architect Albert Kahn and is the oldest surviving theatre from Detroit’s first theatre district. Steve Ogden, vice president of government affairs for Quicken Loans, represented Bedrock and its projects at these community meetings. He said the company could not leave the theater in place. “It would have been on a structural wall that would not lend to the success of the development,” he says. “We were going to move it, it was just how it was going to get done.” Several NAC members thought the structure should be salvaged and restored

to some kind of working venue. Ogden says when all was said and done with the community benefits meetings, Bedrock settled on using the facade as part of the entryway to the development. “What we were proposing came together after several conversations with a lot of stakeholders in that space,” says Ogden. “We met with the National Historic Preservation Network, we met with the city’s historic advisory committee, we met with various historians and then our development community. We all came together, and guess what, we had three or four different perspectives. …There was no consensus.” Five out of the nine NAC members submitted a letter to the Detroit City Council saying Bedrock’s response was unsatisfactory, and that they had asked for alternative design solutions that would better honor the historic site.

What Came Out of The Community Benefits Ordinance Meetings? While Bedrock did not agree to save the theatre, Ogden says the company made other changes like incorporating more greenspace into their designs. But, when all was said and done, the company and the city did not change their development agreement to include major community benefits. And according to the new law, developers do not have to agree to anything. Overall, Ogden says the company was pleased with the experience of going through the community benefits process.

“This did not slow us down. What it helped us do is tell our own story,” says Steve Ogden, vice president of government relations for

Quicken Loans. “What we’re faced with in this organization is leaks to the media and people are running out trying to say what we’re up to, and so this really gave us a chance to tell our own story and share our vision,” he says. Alexandra Novak says she enjoyed working with Bedrock representatives and is glad they will be doing the work in her neighborhood. But she was not completely satisfied with the outcome of the neighborhood council’s work. “As far as responding to our concerns and things we feel are really important, [Bedrock] tends to dance around a direct answer,” Novak says. “[After the community benefits process finished] it was like, ‘I don’t know why we spent all our time and energy doing that if you weren’t going to really care or try hard to respond to our needs.’”

“I don’t know why we spent all our time and energy doing that if [Bedrock wasn’t] going to really care or try hard to respond to our needs,” says Neighborhood Advisory Council member Alexandra Novak. Rogelio Landin, Novak’s fellow NAC member, saw it differently. “I think Bedrock has extended themselves, to the extent that anyone can, above and beyond to meet, wherein possible, the expectation of the NACs,” he says.

Room for Improvement Because the new ordinance has passed the one-year mark, City Council can amend it. And there are a couple of changes that council members say they support.

First, some city administrators and residents who have participated in the community benefits process have expressed an overarching concern: time. Rogelio Landin, the downtown Detroit resident who served on two of the NACs for Bedrock projects, including the Hudson’s skyscraper which broke ground in December, says they were meeting almost weekly to put shovels in the ground before the end of the year.

Bedrock broke ground in December 2017 on what will become Detroitʼs tallest skyscraper.

“It was fast tracked. It was fast paced,” says Landin. “People would have liked to have had more time to really go out and do more community engagement to get more input and more ideas.” Reports from City Council’s Legislative Policy Division over the past year

repeatedly recommended that council extend the amount of time alloted for these meetings, stating,

“The timeline, as it stands, does not have the necessary amount of time built in for thoughtful requests or responses from either the NAC (Neighborhood Advisory Council) or developer.” City Council Member Scott Benson says extending the timeline is on the top of the list for proposed changes. In addition to the timeline adjustment, City Council Member Raquel Castaneda-Lopez says she’d like to see city officials do more detailed civic engagement work, such as educating and preparing communities before a development comes to the neighborhood. “Four to six weeks to run through a community benefits process is a little disingenuous to have true community engagement in development,” she says. As it stands, that education comes during the process, which takes away from time that could be spent consulting neighbors or talking with the developer. The second on the list of changes has to deal with transparency. Benson and Castaneda-Lopez say they will support changes to the law that make provisions for getting NAC members the documents they request in a timely manner. Benson says several projects are already expected to trigger the Community Benefits Ordinance this year, so the city will have more opportunity to implement these changes. Was the first year successful? Read some expert opinions

HOW DO I PARTICIPATE IN A NEIGHBORHOOD ADVISORY COUNCIL? To serve on a Neighborhood Advisory Council (NAC), you must live in the impact area of the new development. This is determined by census tract. If a new large development is slated for your neighborhood, the city will mail you a flyer informing you of the first community meeting. At that meeting you can nominate yourself for the council and your fellow neighbors and city officials will choose 9 people from that pool of nominations. *ALL of the meetings related to the Community Benefits Ordinance are public. You can visit this website to check on any upcoming meetings or call the cityâ&#x20AC;&#x2122;s Planning and Development Department at (313) 224-1339. This post is a part of Detroit Journalism Cooperative. The DJC is a partnership of six media outlets focused on telling critical stories of Detroit and creating engagement opportunities on-air, online and in the community. View the partners work at detroitjournalism.org. Support for this project comes from the Corporation for Public Broadcasting, the John S. and James L. Knight Foundation, Renaissance Journalismâ&#x20AC;&#x2122;s Michigan Reporting Initiative and the Ford Foundation.

Charter of the City of Detroit January 1, 2012 (Adopted by Vote of the People on November 8, 2011)

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ARTICLE 1. ESTABLISHMENT of CITY GOVERNMENT Sec. 1-101 City Government. The people of Detroit, by adoption of this Home Rule Charter, create and provide for their continuing control of the municipal government of the City of Detroit. Sec. 1-102. General Powers. The City has the comprehensive home rule power conferred upon it by the Michigan Constitution, subject only to the limitations on the exercise of that power contained in the Constitution or this Charter or imposed by statute. The City also has all other powers which a city may possess under the Constitution and laws of this state. Sec. 1-103. Liberal Construction. The powers of the City under this Charter shall be construed liberally in favor of the City. The specific mention of particular powers in the Charter shall not be construed as limiting in any way the general power stated in this article. Sec. 1-104. Boundaries. The boundaries of the City existing when this Charter takes effect continue in force until changed in accordance with law.

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ARTICLE 4. THE LEGISLATIVE BRANCH CHAPTER 2. BOARD OF ZONING APPEALS Sec. 4-201. Establishment of Board of Zoning Appeals. There shall be established, pursuant to the Michigan Zoning Enabling Act, MCL 125.3101, et al., a Board of Zoning Appeals. The Board of Zoning Appeals shall be composed of at least seven (7) members, one (1) each from the non at-large districts. Sec. 4-202. Board of Zoning Appeals Ordinance. In accordance with the Michigan Zoning Enabling Act, MCL 125.3601, the City of Detroit shall enact an ordinance that establishes one (1) appeal board with the powers and duties: (1) to hear appeals from administrative decisions either of the Buildings, Safety Engineering, and Environmental Department or Planning and Development Department; and (2) hold hearings on non-conforming uses and structures and requests for variances. In accordance with MCL 125.3601(1), the ordinance shall provide that the City Council appoints members to the Board of Zoning Appeals. In addition, the ordinance shall provide: 1.

For rules governing the appeal and other matters properly before the Board, including the parties entitled to be heard in proceedings before the Board;

In any review proceeding, that the Buildings, Safety Engineering, and Environmental Department or the Planning and Development Department shall file a written statement and may appear before the Board in support of its decision;

The effect of a decision of the Board; and

For compensation of Board members.

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ARTICLE 6. THE EXECUTIVE BRANCH: STAFF DEPARTMENTS CHAPTER 2. PLANNING AND DEVELOPMENT DEPARTMENT Sec. 6-201. Planning and Development Department. The Planning and Development Department is headed by the Planning and Development Director. In addition to the duties and functions in this chapter, the department shall: 1.

Establish a strategic plan that pursues, advocates and supports community development within the City, consistent with the Master Plan, including the creation and support of stable planned communities;

Develop and implement a strategic plan to pursue and initiate programs, opportunities and create conditions supportive of global trade;

Develop and implement a strategic plan to actively recruit businesses to the City and provide the support, assistance and conditions necessary to retain businesses; and

Develop and implement a strategic plan and program focused on recruiting and supporting emerging industries.

The Department shall provide an annual report to City Council, on or before February 1, that incorporates the community and economic development strategies called for in this section, and which details the departmentâ&#x20AC;&#x2122;s actions, achievements and future plans in pursuit of these strategies and the duties and functions set forth herein. The report shall also identify the levels of funding necessary to pursue these strategies and achieve their objectives. Sec. 6-202. Advance Planning. The Planning and Development Department shall obtain all information and conduct all studies required by the Mayor and the heads of agencies in the preparation of proposals relative to development matters. Sec. 6-203. Current Planning. The Planning and Development Department shall have continuing liaison with all agencies of the executive branch. It may assign any relevant study to any agency. Any agency, with knowledge and consent of the Planning and Development Director, may undertake the study of any development matter within the scope of its duties. The Planning and Development Department shall receive all reports concerning development matters and other information which it requests. The Planning and Development Director shall, with the head of any agency involved, evaluate all reports and information received by the Planning and Development Department in light of the policies, programs and priorities of the Mayor, and the master plan. Sec. 6-204. Definition. The term â&#x20AC;&#x153;development mattersâ&#x20AC;? as used in the Charter includes: The master plan for social, economic and physical development and conservation; the annual capital agenda and capital budget; any development or renewal project on or affecting public real property or public interests in real property or requiring public assistance; proposed ordinances for the regulation of development or conservation; proposals for the demolition, disposition or relinquishment of, or encroachment upon, public real property or public interests in real property; and any other items added by ordinance.

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Sec. 6-205. Public Hearings. The people of the City of Detroit living in areas likely to be affected by proposals resulting from any study undertaken by the Planning and Development Department or an agency under sections 6-202 or 6-203 shall be given full opportunity in public hearings to present facts and arguments relative to the subject under study. The department is required to provide notification of the hearing to any Citizen District Council, Citizen Advisory Council or Community Development Corporation impacted by proposals contained in the study.

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ARTICLE 9. MISCELLANEOUS PROVISIONS CHAPTER 1. COMMUNITY ADVISORY COUNCILS Sec. 9-101. Definition and Purpose. Community Advisory Councils as used in this chapter are advisory councils established by ordinance upon the petition of city residents. The purpose of these Councils is to improve citizen access to city government. The City Council shall create advisory council districts by ordinance that shall be the same as districts from which council members are elected, exclusive of the at-large district. The ordinance shall be adopted within ninety (90) days after the effective date of this Charter. Sec. 9-102. Creation and Composition of Advisory Councils. City Council shall by ordinance establish seven (7) Community Advisory Councils upon receipt of a petition from the residents of districts created under section 9-101. The petitions shall be signed by a number of qualified registered voters who are residents of a district equal to not less than ten (10) percent of the number of persons voting at the last municipal general election in the district. Each Community Advisory Council shall consist of five (5) members elected from a single non at-large district, who shall be residents and qualified and registered voters of the district; one (1) youth member between the ages of thirteen (13) and seventeen (17); and one (1) member selected as a representative for senior issues. City Council shall establish by ordinance a procedure for the selection and appointment of the high school member and senior issues representative on Community Advisory Councils. After creation of a Community Advisory Council, elected members shall be elected at the next election occurring in the city, if permitted by law, and shall serve until January 1 of the year following the regular city municipal elections. Thereafter, elected Community Advisory Council members shall be elected to four (4) year terms at the regular city municipal elections. Notwithstanding election to an initial term of less than four (4) years, an elected member may not be elected to more than two (2) consecutive four (4) year terms. The senior issues representative selected in accordance with the City ordinance shall serve one (1) four (4) year term, and may be reappointed. The youth member selected in accordance with City ordinance shall serve a one (1) year term and may be reappointed for as long as the person meets the age requirement. Reappointment of the youth member shall be for one (1) year terms. All members shall serve without compensation. The City Council member elected from the non at-large district in which a Community Advisory Council resides, or their designee, shall attend all official meetings of that Community Advisory Council. Sec. 9-103. Powers, Duties and Limitations. City Council shall, by ordinance, prescribe uniform procedures, for the exercise of the powers and duties for all Community Advisory Councils. Included in those powers and duties shall be the provision that a community council may require that the City Council representative receive prior consultation from the Community Advisory Council on all issues which relate exclusively to that district. Community Advisory Councils shall receive no appropriations from city funds, but may accept donations or grants in accordance with state, federal or local law. A particular Community Advisory Council shall be dissolved only by a petition signed by the same number of qualified voters residing in the Community Advisory Council district required above, and an ordinance adopted after public hearing by City Council with public notice to the Community Advisory Council district

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in question. Each Community Advisory Council shall hold public meetings not less than four (4) times each year. The meetings will be held within the respective districts and will be held in donated facilities with an attempt to provide as broad of a geographical distribution for the meetings as possible. The meetings shall be held in accordance with the Michigan Open Meetings Act and the Community Advisory Councils shall comply with the Michigan Freedom of Information Act. The powers and duties of each Community Advisory Council shall include: 1.

Communicating to City Council the concerns of groups, agencies, businesses and residents within its districts with respect to the delivery of programs and services.

Assisting groups, agencies, businesses and residents in community problem solving by meeting with groups to: a. Clarify issues; and b. Demonstrate proper procedural approaches to accessing city government.

Disseminating information to groups, agencies, businesses and residents on social and physical plans for the districts areas.

Providing advice to community representatives and City Council on major issues within the council district which may include: a. b. c. d. e. f. g.

Housing development; Commercial blight; Safety and security; Economic and community development; Employment opportunities; Code enforcement; and Other concerns impacting social, economic, cultural and environmental conditions within the district.

Familiarizing themselves with the City Charter, with the objective of assisting the community in understanding the intent and relevance of Charter provisions.

Familiarizing themselves with the Master Plan for the City of Detroit in relationship to the City generally and the land area within their district generally.

Meeting annually with the Mayor and annually with City Council to discuss the challenges confronting the district and the resources required to advance the interest and support the viability of the district.

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CBO Community Engagement Time Line Tier 1 Projects

Notice of Initial Public Meeting

10 Days

Public Meeting

Community Benefits Report submitted to City Council

6 weeks

NAC Nominations NAC Selection

Detroit's inclusionary housing ordinance, explained

The Hamilton, formerly Milner ArmsNick Hagen

Last September, housing advocates and members of city council stood outside the Spirit of Detroit statue downtown for an announcement about the justpassed Inclusionary Housing Ordinance (IHO). The ordinance, which stipulates that housing developments subsidized with over $500,000 in city or federal funds must include affordable housing, was a milestone moment for the cityâ&#x20AC;&#x201D;a degree of housing equity had been enshrined at a time when property values and rental rates were booming.

And yet, there was a noticeable amount of dissent at the announcement. Some developers thought that requiring affordable units would freeze development at a critical juncture. On the other hand, housing advocates, and even Mary Sheffield, the councilmember who shepherded the ordinance, thought the requirements were too lenient. Half a year later, questions remain. Has the IHO had its intended impact? Who, if anyone, has been and will be affected by it? And, most importantly, is it sufficient to ensure mid- and low-income Detroiters will have housing options in the most desirable parts of the city? Detroit's rental scene Housing in Detroit today is not affordable for many of its residents. A little data proves this point. According to an analysis by the Federal Reserve Bank of Chicago, at some point this decade over half of Detroiters became renters. The average monthly rental price citywide in 2016 was $702â&#x20AC;&#x201D;a number which has almost certainly increased since. In downtown and Midtown, rents are even higher. Assuming a common recommendation that 30 percent of a household's income should go towards rent, individuals making $28,080 a year, or about 60 percent of the area median income (AMI), could comfortably afford that amount. (Area median income is determined by the Department of Housing and Urban Development and locally encompasses the Detroit-WarrenLivonia Metropolitan Statistical Area.) Detroit's median income, however, is $28,099, meaning about half the population would struggle to save or pay off debts, have to forgo certain necessities, or barely scrape by to afford these rates.

Many in Detroit's housing scene, including a broad swath of developers of multi-family buildings, recognize that average Detroiters cannot and will not be able to afford almost all the new market rate units being built without making sacrifices. See the right sidebar for a list of some of the multi-family developments underway in Detroit --->>>

That's why, back in 2014, Sheffield convened experts and stakeholders to craft what would eventually become the Inclusive Housing Ordinance. Francis Grunow, an urban policy consultant who was part of those discussions, thinks it was wise of Detroit to get ahead of the negative consequences of gentrification. "If you look at examples from other cities that struggle with affordability like San Francisco, New York City, or D.C.," he says, "they would probably say from a policy perspective that they wished they had passed something years before."

Francis Grunow - photo by Marvin Shaouni Sheffield points out how reasonable the IHO isâ&#x20AC;&#x201D;developers can waive the obligation on one building if they find a "substitute structure" and it only affects developers who receive subsidies. "The ordinance brings the City closer to delivering a real and tangible benefit for Detroiters for the tax incentives and public funds/assistance developers receive," she wrote by email. Imperfect but important While some have voiced concerns about the IHO's potential to inhibit development, there's little indication it's had that effect. A symbolic version of the ordinance took place in 2015 when Mayor Mike Duggan announced his goal that all new residential contain affordable housing. Since, numerous developments that voluntarily meet the city's affordability goals have been announced.

"The effect was already in place prior to the ordinance," says Richard Hosey, a developer and president of the Detroit Housing Commission who was also part of Sheffield's IHO working group. "The push from the mayor's office and city council let people know this is important, this is not going away. â&#x20AC;Ś Developers in 2010 knew the only way to get the bankers on their side was to build something of quality. Developers now know the only way to truly get the city on their side is to include affordable housing â&#x20AC;&#x201D;even without subsidies." Most of the debate around the ordinance Richard Hosey relates to where the affordability line was drawnâ&#x20AC;&#x201D;developers must make 20 percent of a building's units affordable at 80 percent AMI. While that number may be considered affordable for the rest of Wayne County, that's still well above the median income in the city of Detroit. For that reason, the ordinance originally also included stipulations for units at 50 and 60 percent AMI. "Unfortunately," Sheffield wrote, "an amendment was proposed and the spread was eliminated by a majority vote." While Sheffield was a little disappointed in the final outcome, many felt that given the competing interests and the importance of getting something done, the final result was acceptable. "I don't think it's unreasonable to subsidize people at that level," says Hosey. "These are folks who aren't thinking about buying a new Benz, but thinking

rather, 'If I save everything, I should be able to retire.'" Hosey adds that the solution to creating affordable housing options for people at every income bracket will come from a variety of sources, such as the growth and upkeep of affordable single-family homes (which make up 70 percent of Detroit's housing), and what planners refer to as "naturally occurring" affordable housing funded through federal programs like block grants. The Detroit Affordable Housing Development and Preservation Fund, also part of the IHO, will be another part of the solution. Funded through penalties accrued from developers who don't abide by the IHO guidelines and sales of city-owned commercial property, the fund will generate $2 million annually to use towards housing projects affecting people at 50 percent AMI or lower. Such projects could include making a building ADA compliant, preventing homelessness, or supporting the activities of a nonprofit that develops affordable housing, to name a few. Another positive to take away from the process is the way the ordinance was systematically crafted. The city recognized a need, spent years engaging important actors in the field, then passed something accepted by most. "Is it perfect? No," says Grunow. "There are valid questions around providing quality housing for people at lower income brackets. But at the same time, everyone made an attempt to split the difference. â&#x20AC;Ś This was good example of how community interests and the city can work together on crafting something. Not everyone was 100 percent pleased, but at least everybody had some say in how it evolved and what it looked like."

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&RPPXQLW\ %HQHILWV 5HSRUW City of Detroit | Planning and Development Department

Maurice Cox

R. Steven Lewis

Director, Planning and Development

Central District Design Director, Planning and Development

Table of Contents SECTION DESCRIPTION I II III IV V VI

INTRODUCTION COMMUNITY BENEFITS ORDINANCE PUBLIC NOTICE AND IMPACT AREA NEIGHBORHOOD ADVISORY COUNCIL (NAC)/ DEVELOPER/ CITY OFFICIALS MEETINGS NAC IMAPCT REPORT AND DEVELOPER RESPONSE S

PAGE NUMBER 2 2 4 6 7

APPENDIX COMMUNITY BENEFITS ORDINANCE, DETROIT LEGAL NEWS, NOVEMBER ATTACHMENT 29, 2016

EXECUTIVE ORDER 2016-1

ATTACHMENT

PROJECT IMPACT AREA MAP PUBLIC MEETING # 1 –PUBLIC NOTICE, FLYER, PRESENTATION –JUNE 5, 2017 PUBLIC MEETING # 2–FLYER & PRESENTATION –JUNE 15, 2017 PUBLIC MEETING # 3–FLYER & PRESENTATION –JUNE 19, 2017 PUBLIC MEETING # 4 –FLYER & PRESENTATION –JULY 6,, 2017 SIGN IN TABLE FROM PUBLIC MEETINGS # 1-4 NAC LIST OF PREMIMINARY QUESTIONS AND ANSWERS FROM DEVELOPER AND PDD–JUNE 21-23, 2017 NAC IMPACT REPORT SUBMITTED TO DEVLOPER–JUNE 26, 2017 DEVELOPER RESPONSE TO NAC IMPACT REPORT–JULY 30, 2017 PROJECT BROWNFIELD TIF PLAN PROPOSAL

ATTACHMENT

D E F G H I J K L

ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT

I. INTRODUCTION Bedrock LLC proposes to undertake an adaptive reuse/rehabilitation of the historic Detroit Free Press Building, located at 321 W. Lafayette. The 14-story Art Deco masterpiece housed the Detroit Free Press newspaper, including all associated operations, when it opened in 1925. The building, which also contained rentable retail and commercial space, was commissioned by Free Press owner E.D. Stair. Historic features include: exterior limestone carvings by New York sculptor Ulysses Ricci, advertising room murals depicting early Detroit history by Roy C. Gamble, to name a few. On July 23, 1998, the Free Press left its home of nearly 75 years, where much of the cityâ&#x20AC;&#x2122;s best journalism had been created. Since the Free Press vacated the building it has fallen into a state of severe disrepair. Bedrock LLC projects to spend $69 million to transform the historic Detroit Free Press Building, located at 321 W. Lafayette. The project will create a mixed-use development that will include retail on the first floor, office space on the second and third floors, and residential apartments on the remaining floors above. Construction is expected to begin in the 3rd Quarter of 2017. The developer is seeking approval of a Brownfield Plan for the project (Attachment L). Other additional public financing incentives include seeking approval for a Neighborhood Enterprise Zone Tax Abatement, a Michigan Brownfield Tax Credit, and State and Federal Historic Credits. The below summary notes that the minimum threshold development cost for engagement with the Community Benefits Ordinance (CBO) process is $75 million. As noted above, Bedrock LLC proposes to spend $69 million on the rehabilitation of the historic Detroit Free Press Building. However, Bedrock LLC has agreed to voluntarily engage with the community by following the Tier 1 section of the CBO process to determine the outstanding issues related to the project; and the best means of mitigating the concerns pertaining directly to the project. This report outlines the process the City and the Developer has undertaken in support of Bedrock LLCâ&#x20AC;&#x2122;s efforts to voluntarily engage in the CBO process.

II. COMMUNITY BENEFITS ORDINACE AND NEIGHBORHOOD ADVISORY COUNCIL

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The Director of Planning issues a report to City Council describing the process of the CBO and how the developer will mitigate the concerns of the NAC. The intent is to have a report completed within six (6) weeks of public notice of the initial meeting, unless circumstances warrant otherwise, to expedite the community engagement process. The report will contain the following: D Information on how notice was provided to the public E List of NAC members and their selection/ or election F Method of addressing each of the concerns by the NAC presented to the developer, or which concerns were not addressed.

III. PUBLIC NOTICE AND IMPACT AREA The first public meeting for the Detroit Free Press Rehabilitation took place on June 5, 2017 from 6-8 PM. The meeting was sponsored by Bedrock LLC and held at One Woodward Building, Beacon Room, 2nd Floor, 1 Woodward, Detroit MI, 48226. The notice that is attached to this report was mailed to approximately 1000 residents within the Impact Area, as described below. Thirteen (13) people signed into the meeting, twelve (12) being from outside the community and one (1) resident living in the impact area. The meeting attendees were notified of subsequent CBO meetings, which were tentatively set to take place on June 12th, June 15th, and June 28th. These meetings were later rescheduled to be held on June 15th, June 19th, and July 6th. The ordinance requires Public Notice of the first meeting be mailed to all residents within the Impact Area at least ten (10) days before the meeting. Planning and Development Department (PDD) staff delivered the notices to the City of Detroit mailroom on May 24, 2017. Notice of the meeting was provided via a flyer developed by PDD. Additional outreach was undertaken by District 6 Department of Neighborhoods (DON) Deputy Manager and PDD staff so that City staff could generate more interest for the second CBO meeting, which was held on June 15, 2017. Specifically, on June 14th and June 15th 2017, PDD and DON staff distributed flyers within the boundaries of the Impact Area, targeting community areas of residential buildings. The effort also included the e-mailing flyers to building managers within the Impact Area to distribute through mass email to residents, distributing flyers to local businesses within the impact Area, and distributing flyers directly to residents in public spaces within the Impact Area. The projectâ&#x20AC;&#x2122;s CBO information, including notice for all meetings, was posted on the Planning and Development Departmentâ&#x20AC;&#x2122;s CBO website. The link to the Detroit Free Press CBO Process can be found at: http://www.detroitmi.gov/Government/Departments-andAgencies/Planning-and-Development-Department/Community-Benefits-Ordinance#cbo-3 Impact Area The Impact Area, as depicted below and in Attachment C included the boundaries of the Census Tract within which the subject building is located, Census Tract # 5208, as required by the CBO. It was noted that the Census Tract within which the subject building is located is dominated by commercial uses, with limited numbers of actual residents/residential properties. PDD staff therefore extended the boundaries of the Impact Area to include a wider area north of the Census Tract, north of Michigan Avenue, in an effort to include a greater number of residents in the engagement process. The final Impact Area boundaries are roughly Bagley, Grand River, and W. Elizabeth to the north; Woodward to the east; 6th and Trumbull to the west; and the Detroit River to the south.

IV. NEIGHBORHOOD ADVISORY COUNCIL/ DEVELOPER/ CITY OFFICIALS Neighborhood Advisory Council NAME

ELECTED/ APPOINTED

DATE

Beverley Burns

Community

June 5, 2017

Debra Walker

CM District 6 Raquel Castañeda-López

June 14, 2017

Kimberly Jackson

CM President Brenda Jones

June 14, 2017

Andres Rosenthal

CM At-large Janee Ayers

June 14, 2017

Eric Plummer

PDD

June 12, 2017

Alexandra Novak

PDD

June 12, 2017

Leslie Tom

PDD

June 12, 2017

Melody Martin

PDD

June 16, 2107

Will Butler

PDD

June 12, 2017

James Martin (resigned)

PDD

June 12, 2017

Development Team DEVELOPER REPRESENTATIVES Bedrock LLC

NAME

Steve Ogden, Scott Collins & Gina Metrakas

City of Detroit Officials/Staff DEPARTMENT Planning

NAME Maurice Cox, R. Steven Lewis, Jennifer Ross

Housing Revitalization

Arthur Jemison

Jobs and Economy Team

Ashley McLeod, Matt Walters

Department of Neighborhoods Legislative Policy Division Representative

Ninfa Cancel, Ammie Woodruff, Ninfa Cancel, Vince Keenan Kimani Jeffrey

City Council

CM District 6 Raquel Castañeda-López

City Council

CM At-Large Janee Ayres

City Council

Council President Brenda Jones

V. MEETINGS June 5, 2017 The first meeting of the CBO process was held at The Beacon (1 Woodward Detroit MI 48226), within the boundaries of the Impact Area on June 5th from 6 – 8 PM. The purpose of this meeting was: 1) To allow the developers to present the project to the public; 2) To elect two (2) Neighborhood Advisory council (NAC) members; 3) To get feedback from the general public on impacts of the building in their neighborhood. The following narrative outlines the trajectory of the first public meeting. Approximately 3 community members attended the meeting, of which, one lived in the Impact Area. This attendee, Beverley Burns, nominated herself to serve on the NAC and voted for herself. Therefore, much of the discussion for this first meeting was around the next steps to ensure that subsequent meetings had more community attendance. 1) R. Steven Lewis from PDD opened the meeting with introductions of the development team and City staff. 2) District 6 CM Raquel Castaneda-Lopez, CM President Brenda Jones and CM At-Large Janee Ayers (staff members) gave remarks on the project 3) PDD representative, Jennifer Ross, presented the Planning and Development Department’s overview of the CBO and the roles and responsibility of NAC members; as well as future meetings to come. She also discussed the creation of the Impact Area and potential impacts which might arise as a result of the project. 4) Arthur Jemison from Housing and Revitalization answered questions regarding affordability. 5) Bedrock representatives presented the Free Press Building renovation and initial programming of the building’s interior spaces. Issues Raised by the Community Present The community raised a few issues – some directly related to the impact of the facility; and some that were not directly related but based on precedent development. Below are the principle issues raised in the forum: 1) Concern expressed about affordable housing and proportion within the facility 2) Concern expressed about NAC procedures moving forward 3) Concern expressed about the tax abatements being offered

June 15, 2017 The second meeting of the CBO process took place from 5:30-7:30 PM in the Erma Lois Henderson Auditorium located on the 13th floor of the Coleman A. Young Municipal Center, 2 Woodward Ave. The purpose of this meeting was 1.) An introduction to, and seating of the full NAC 2.) To present the project to board members and the general public from the impact area who may not have been at the first meeting and 3.) For the developer to gather feedback from the NAC and the community on project impacts. An agenda was prepared and distributed to NAC members, the public, and the respective offices of City Council members. Officially, thirty-four people signed the sign-in-sheet. NAC members present include Beverly Burns, Eric Plummer, Leslie Tom, Kim Johnson, Alexandra Novak, Andres Rosenthal, James Martin, Debra Walker, and Will Butler. The following narrative outlines the trajectory of the second meeting. 1) Jennifer Ross opened the meeting to announce the order of presentation, and acknowledge the representative City Council members. 2) PDD staff presented the newly seated NAC and information packet including the agenda, meeting notice, slide show presentation, and a copy of the Community Benefits Ordinance. 3) The representative from Bedrock LLC gave a brief presentation of the Free Press rehabilitation project to update new NAC members and residents attending the meeting for the 1st time 4) Jennifer Ross presented the PDD’s overview of the CBO process as this was the first meeting which included 9 NAC members. She also discussed potential impacts which might arise as a result of the project. Vince Keenan with the DON outlined the roles and responsibility of NAC members. Arthur Jemison from Housing Revitalization addresses questions/concerns re: affordable housing. Note that this was the first meeting in attendance by the LPD representative, Kimani Jeffrey, as the representative was chosen after the first meeting. Issues Raised by the Community Present The NAC, community, and the City Council members present raised a number of issues – some directly related to the impact of the facility; and some that were not directly related, but based on precedent development. Below are the principle issues raised in forum: NAC Guidelines – Whether it was possible for the NAC to hold independent meetings to privately discuss CBO ordinance and impact. x City Council Response: The NAC is allowed to hold private meetings away from City Council, Planning, and Developer. Council Member Castañeda-López offered assistance with for holding private meetings and encouraged NAC to reach out

CBO Process – Concern about CBO process being rushed, NAC having access to Developer’s documents to review, and if NAC will influence outcome x Developers Response: - Developer acknowledged that theCBO process was being driven by the Developer and is a rushed process in order to get it before City Council before they go on recess July 25th. They are attempting to stick with the construction schedule and get through the approval process which has to get approved by the state - They will deliver plan on their portfolio of properties by 11 AM the next day - What the NAC does is legitimate and will influence the outcome but whether or not City Council denies financial incentives based on NAC’s recommendations is untested Employment and Workforce – Inquiry into if Bedrock will continue to follow the 51% rule once the building is complete x Developers Response: – - There are currently plans to hire 10 full-time employees to run the building and every effort will be made to hire Detroit residents; - Bedrock encourages retail tenants to follow the 51% rule - Use Detroit-based business where they can but in some instances there is not enough skilled trades - such as steel workers - available to meet the 51% quota - are actively working on workforce development and have invested in Randolph Technical School to prepare the workforce necessary for future development projects and employ Detroit residents Affordable Housing – Issues surrounding affordable housing and if the rule of spreading the 20% across their portfolio allows for skewing in certain neighborhoods. x Developers Response:– - The proposed affordable housing ordinance requires that 20% of rental units be affordable which is defined by 80% of the AMI taken from areas like Warren, Livonia, and Detroit which is $38,000 to $50,000. Because Bedrock owns so many properties they are attempting to work out a deal with the City in which the 20% rule would be spread across their entire portfolio, not each building; - Not every property is appropriate for affordable housing and the plan is to produce affordable housing in the same geographic area in order to create mixed neighborhoods Quality of life – Desire expressed for increased walkability, mobility, sustainability, greenspace, retail offering essential goods and services for conducting daily living such as grocery stores and medical care, and supporting the educational system Downtown by coordinating with other major developers in supporting programs such as school libraries, music programs, etc. x Developer Response: 9

- -

They currently have a bike sharing program in front of all of their buildings and try to activate area through placemaking design that will get people out of the buildings and onto streets walking; Will be developing greenspace in the program as they work through it and will secure most effective energy efficient systems for their space; developers have sought these types of retailers but it is currently difficult to bring in grocers because it is a primarily business district and not residential; Education is a concern of theirs and they are doing their best to support DPS by working on safety and blight and currently have a tutoring/mentoring program in which every 6th graders of DPS receives a tour of their company to expose them to opportunities; Investments in specific programs are longer term issues affected by structural issues and will have to work with DPS on

Inclusiveness – Desire expressed for building multi-generational, mixed-demographics neighborhoods and inquiry into how designs are inclusive of African-Americans which make up 85% of the population x Developer Response:– - Current designs are based on placemaking and what works were Parking – Inquiry into whether parking will be available x Developer Response: - There are currently no parking spaces available Building Use – Inquiry into whether the community will know more about the identity/use of the building, if they will be updated on the status, and whether residential units will be rental or for sale x Developers Response : - Bedrock does not currently have a tenant in mind and relationship between the NAC and developer will continue after meetings; - Bedrock is currently receiving tax credits in which units must be rental for a period of time but may convert to sale after tax credits burn off Historic Regulations – Inquiry into what the type of changes that can be made to the building because it is historic x Developer and PDD Response - Federal and state historic tax credits limit the changes you can make to the interior and exterior; - Exterior work has already been approved by the Historic District Commission and will remain unchanged Safety – Concern expressed about the number of vacant surface parking lots in the area and inquiry into Bedrock’s plans to be part of the Greenlight program x Developer and City Response: - City recently passed a drainage fee ordinance will charge a fee on parking lots in efforts to deter people from making surface parking lots; - Every effort is made to provide security to Bedrocks buildings including cameras and lighting; 10

Bedrock intends to be part of the Greenlight program and have made investments to strengthen the program

June 19, 2017 The third public meeting for the Detroit Free Press Rehabilitation took place on June 19, 2017 from 5:30-7:30 PM. The meeting was sponsored by Bedrock LLC and held at One Woodward Building, Beacon Room, 2nd Floor, 1 Woodward, Detroit MI, 48226. The purpose of this meeting was: 1) To allow the NAC the opportunity to pose questions about the project and potential impacts to the developer; 2) To allow the developer to respond to questions about the development and impacts; 3) To allow City of Detroit staff the opportunity to address questions about the CBO process and City-related questions; and 4) To allow the public the opportunity to ask questions. Officially, ten people from the public were in attendance in the audience; excluding City staff. NAC members present included Beverly Burns, Melody Martin, Eric Plummer, Alexandra Novak, Debra Walker, Kim Johnson, Andres Rosenthal, and Leslie Tom. It is noted that one of the NAC members (James Martin) resigned his position on June 16, 2017. PDD therefore appointed a new NAC member (Melody Martin) that same day. Therefore, the June 19, 2017 meeting was the first that was attended by the full final NAC. Finally, note that PDD Staff convened an hour long orientation session with the final full NAC before the third public meeting. Specifically, PDD staff met with the NAC from 4:30-5:30 PM at One Woodward Building, Beacon Room, 2nd Floor, 1 Woodward, Detroit MI, 48226. PDD staff discussed NAC roles and responsibilities with the group during the orientation session. The following narrative outlines the trajectory of the third public meeting. 1) Jennifer Ross opened the public meeting to announce the order of presentation, and acknowledge the representative City Council members. 2) The representative from Bedrock LLC gave a brief presentation of the Free Press rehabilitation project to update new NAC members and residents attending the meeting for the 1st time 3) The NAC posed questions about the project and potential impacts to the developer 4) The public posed questions to the developer and City staff Issues Raised by the Community Present In addition to the questions and concerns covered at the June 15th meeting, additional categories of concern emerged including Brownfield TIF, Homeland Security, Public Art, the construction project itself, additional building designs. Below are concerns covered as followed: Safety â&#x20AC;&#x201C; empty parking lots near the building do not provide a sense of safety for people walking in the area

x Developer Response: - Bedrock is attempting put in designs that increase eyes on the street and will anchor and activate the area; - Bedrock currently owns only 2 buildings on the vacant stretch of land on Lafayette including the Detroit News Headquarters and is trying to figure out how to fill in the gap between 321 Lafayette and 615 Lafayette Employment and Workforce – Concern expressed about 51% of construction workers on site are residents of Detroit x Developer Response: - -Currently struggle with meeting the 51% quota as there are currently not enough skilled trade steel workers in the area; - -They are currently investing in the Randolph Technical School to prepare a skilled trade workforce so they can hire more Detroit residents Greenspace and Rooftop space – Inquiry into whether there will be greenspace and rooftop space available x Developer Response: - There is limited space available for greenspace but they are looking into activating hardscapes such as the alley, south side and rear of the building; - -No plans for rooftop space as it is too windy; Retail space – Inquiry into plans for the retail space and concern about not enough grocery stores in the area and if smaller, local grocers can be given a rent discount x Developer Response: - -Currently in the process of testing a lot of things up and down the corridor and seeking something that will activate the area; - -It is currently difficult to secure big box stores - -Smaller local retailers would not be able to afford the rent – - If they were assisted with start-up through a discount, there is a question if they would be able to make it over the long term Affordable Housing – Inquiry into what is considered affordable rent on a 1 bedroom apartment, the current ownership status of the Book Building, affordable housing in the area, and Microlofts x Developer Response: - In following with the AMI affordable rent for a 1-bedroom would be $961.00 and; - If the developer receives a tax-credit for low-income housing they have to offer affordable housing for 30 years or more and offered it for 45 years on the Microlofts - Rent for Microlofts is $961.00 for a 1-bedroom and $1,238 for a 2-bedroom - Bedrock currently owns the Bedrock Building Brownfield TIF – Inquiry into what the Brownfield TIF will be used for, if it is restricted to environmental related things, if any of the funds will be used for public art

x Developer Response: - The Brownfield TIF will be used on the clean-up, restoration, and construction of the building - It is not restricted to environmental but can be used for parking, etc. - Currently no plans for public art but may be something another person in the company is working on since it has been done in the past Construction Process – Inquiry into the impacts on the community during construction such as closure of sidewalks, etc. and if there is a complaint process x Developer Response: - There will be temporary street and sidewalk closures; - It will take approximately 7 months to clean out the building - -Violations are enforced and should be reported to BSEED Homeland Security – Inquiry into the current consideration for Homeland Security x Developer Response: - No conversations regarding Homeland Security have taken place July 06, 2017 The fourth and final public meeting for the Detroit Free Press Rehabilitation CBO process took place on June 19, 2017 from 5:30-7:30 PM. The meeting was sponsored by Bedrock LLC and held at One Woodward Building, Beacon Room, 2nd Floor, 1 Woodward, Detroit MI, 48226. There was a posting of the event on the PDD’s CBO website to note time, place, and day of this event to the public. The purpose of this meeting was: 1) To allow PDD the opportunity to present the NAC’s final Impact Report and the Developer’s response to the community; 2) To allow the Developer to respond to the NAC’s questions; 3) To allow City of Detroit staff the opportunity to address questions about the CBO process and City-related questions; and 4) To allow the public the opportunity to ask questions. Officially 6 people from the public were in attendance in the audience; excluding CM Castañeda-López and City staff. NAC members present included Beverly Burns, Leslie Tom, Debra Walker, Will Butler, Andres Rosenthal, and Melody Martin. The following narrative outlines the trajectory of the meeting: 1) Jennifer Ross with PDD opened the public meeting to announce the order of presentation, and acknowledge the representative City Council members. Ms. Ross then presented a general outline of the sections within the CBO which involved the NAC’s expression of their concerns and the Developer’s response to these issues. Ms. Ross also outlined a preliminary list of questions that the NAC submitted to the Developer on 6/12/2017 (captured in Appendix I), the NAC’s Impact Report, and the Developer’s response to the NAC’s Impact Report/remaining concerns (captured in Appendices J and K and in the below Section 6). 2) The NAC was allowed the opportunity to voice additional convers to the Developer.

Issues Raised by the Community Present

The NAC members present raised several issues – some directly related to the impact of the facility; and some that were not directly related, but based on precedent development. The following generally captures the discussion between the NAC and the Developer. Project Fluidity – Inquiry noting that the project is in its very early stage and that a number of the answers to the NAC’s questions/concerns were not “concrete” Affordable Housing – Inquiry noting remaining concerns about the fact that the Freep building will not include affordable housing. Also, concerns that Bedrock supply affordable housing units in the CBD were raised. Finally, the NAC wanted to know what happens if both the City Ordinance for Affordable Housing and the Developer/City agreement for providing affordable housing across their portfolio did not happen: x Developer Response: - The Developer is working with the administration to create an agreement which would spread the 20% housing requirement across Bedrock’s entire portfolio. The Developer also noted that affordable housing “Preservation”, i.e. partnering with other owners of affordable housing units which are about to revert to market rate, night be an option. Specifically they would provide support to their partners to ensure that the units remained as affordable. Finally, the Developer noted that the majority of their portfolio is located within the CBD (with the exception of the City Modern development in Brush Park), therefore most affordable housing units they provide will be in the CBD. Community Input – The NAC wanted clarification re: their concerns with the gathering of community input: x Developer Response: - The Developer agreed to host regular meetings within the Freep Building in order to enable community input. He also posed the idea that the NAC members serve as boots on the ground resources within the community. Developer also noted that they intend to supply a single point of contact who will attend these meetings and address any NAC/community questions along the way. Jobs – The NAC wanted clarification on the process for the reporting on the job requirement numbers for the project: x Developer Response: - The Developer will submit the report to the City as required. They will make that report available to the NAC upon its completion.

VI. NEIGHBORHOOD ADVISORY COUNCIL IMPACT REPORT AND DEVELOPER RESPONSES As per Sec.14-12-Tier 1 Projects, Subsection(d)(2) of the CBO, PDD is required to submit a Community Benefits Report to the Detroit City Council which includes the following: x An itemized list of the concerns raised by the NAC. x A method for addressing each of the concerns raised by the NAC, or why a particular concern will not be addressed. On June 21, 2017 the NAC submitted a preliminary list of 12 questions/concerns to the Developer which touched upon public arts, potential retail amenities, bicycle plans, job creation, affordable housing, parking, historic preservation, resolution of issues residents might have during construction, and additional lifestyle questions. The Developer answered those questions on June 23, 2017. PDD staff also provided further information for one of the NAC’s questions re: Historic Preservation on June 23, 2017. Please see Attachment I for these documents. On June 26, 2017, the NAC submitted their final Impact Report to the Developer for review and response. The Impact Report outlined 7 outstanding concerns/questions the body had with the project. Specifically, the remaining questions/concerns focused on the broad categories of job creation, affordable housing, parking, historical significance, construction, Fraternization/Community Input and placemaking. Additionally, the NAC outlined a list of 8 “pitfalls” associated with the implementation of the project’s CBO process (Attachment J). On June 30, 2017, the Developer submitted a document which addressed each of the concerns raised by the NAC in their Impact Report. Note that both the Impact Report and Developer response frequently REFER BACK TO THE June 21/23, 2017 PRELIMINARY LIST OF QUESTIONS which was exchanged between the NAC and the Developer. Therefore, the following table includes the general NAC concern; the Developer’s applicable/associated answer, pulled from the June 21/23 preliminary list of questions; the status of the concern as outlined in the NAC’s Final impact Report; and the Developer’s Final response to the NAC’s stated concern.

Jobs Concerns/Benefits The Developer has confirmed that by existing requirements, 51% of the work hours on the project have to be performed by Detroit residents. The Developer estimates that about ten post-construction jobs would be created for individuals employed by the landlord; at this point it’s not possible to estimate the number of jobs created by tenants in the building.

Developer 6/23 Response to NAC’s Status of Issue NAC’s 6/21 Request/Document Additional Requests

Developer Final Response

We are attaching a copy of the City of Detroit’s Executive Order related to this topic, 2016-1. Bedrock adheres to all Executive Orders and ordinances and will do the same with the Freep. We welcome the City’s related Skilled Trades Employment Program (STEP), which seeks to increase access for Detroiters to skilled trades careers. More information on that program can be found here:

Bedrock will share the reports with the NAC that are submitted to the City with respect to this project, as it relates to our compliance with the city’s current Executive Order.

The Developer’s 6/23 written response to NAC’s 6/21 Request 4 addresses this question adequately for the time being; the NAC requests periodic status reports on compliance with this requirement.

http://www.detroitmi.gov/ News/ArticleID/1169/CityLaunchesNew-InitiativetoEnsure-More-DetroitersHave-Access-to-Skilled-TradesApprenticeships-and-Careers

Affordable Housing Concerns/Benefits

Developer 6/23 Response to NAC’s Status of Issue NAC’s 6/21 Request/Document Additional Requests

Developer Response

The Developer and the City confirmed that a written agreement and/or ordinance are pending with approval expected by the end of July. To the extent that the NAC considers this to be an issue, the timing of approvals for such an agreement and/or ordinance could be problematic in light of the schedule that’s been proposed for our work. And if the Project is going to include affordable housing, the requirements around application, selection, transparency in decision-making and so on could be relevant to the NAC.

The City has a policy that there be 20% affordable housing associated with projects that receive tax incentives or receive land at a discounted price. It is also our understanding that an ordinance is going through council to formalize this policy, but nothing has yet been passed. Given the number of development projects Bedrock has close to one another, working with the City, we have developed a strategy to provide 20% affordable units across our portfolio. This will ensure that as Bedrock continues to support the redevelopment of the greater downtown, we will be supporting the development of an inclusive, mixed-income community.

Bedrock will forward relevant documents describing any affordable housing agreement with the city with respect to this Project, once it’s filed with the City Clerk.

The affordable housing Bedrock provides will include not only new construction, but also the preservation of existing affordable housing to ensure that residents currently living in affordable housing can continue to do so. We are working on an agreement that lays out this plan with the City, which we hope to finalize in the coming weeks. While there will not be affordable housing in the Freep building (as it is not economically feasible to do so in light of the very significant costs of restoring this distressed historic building), we have affordable housing under construction in Capitol Park and Brush Park and are continuing to explore other opportunities to provide affordable housing in Detroit. In terms of tenant selection, we would be happy to work with housing agencies as well as social support groups, area non-profits and churches to obtain referrals.

1. In response to NAC’s 6/1 Request 5, the Developer advised there will be no affordable housing in this project. This was new information to the NAC and accordingly, while the NAC appreciate the Developer’s additional information about affordable housing requirements and practices, we request a copy of the written agreement with the City that confirms the City’s and the Developer’s agreement that no affordable housing will be provided in this project. If there is no such agreement at this time, the NAC requests to be advised approximately when the agreement will be made final, and requests to be provided with a copy of such agreement immediately.

Final

Parking Concerns/Benefits

Developer 6/23 Response to NAC’s 6/21 Request/Document

Status of Issue NAC’s Additional Requests

Developer Response

The Developer has no plans for parking as a part of the project, so presumably the City does not require it. This places a burden on existing surface lots and/or nearby parking structures as well as on-street spaces.

The link below will provide a comprehensive view of the available parking around the Free Press Building and throughout the CBD. The two concentric rings depict a quarter mile and half mile from the Freep building. Parking garages are shown in dark blue, while surface lots are shaded lighter blue. Clicking on the respective sites will display street address and reported parking count for each of the selected locations.

In response to NAC’s 6/21 Requests 6 and 7, the Developer provided substantial information as to potential measures to alleviate parking limitations and costs, and to enhance safety. The NAC requests to be periodically updated on the progress in this area.

Bedrock will update the NAC on this matter bi-annually on or before June 30 and December 31st, throughout the duration of construction.

Detroit CBD Parking Map The Bedrock controlled parking count is roughly 2,200 spaces if 1401 1st Street is included, which is on the edge of the 3-block radius from the building. If that garage is excluded, the Bedrock owned count drops to less than 1,600 bedrock owned spaces. Parking rates vary across these sites based on type (garage vs. surface lot), proximity to the CBD, and freeway access among other factors. Utilization also varies across the sites, with those closest to the CBD typically having the highest utilization Monday – Friday. The initial study attribution is noted by clicking the arrow in the upper left corner of the web page. Residents are encouraged to work with Universal Parking Management, who manages Bedrock’s garages. The garages we own contain over 18,000 stalls in all. We are also working on programs to minimize the expense for people that live and work downtown and only need access to their vehicles on the weekends. They would have the opportunity to park outside of the Central Business District Monday through Friday and then would have weekend access to a garage closer

to their home for convenience on the weekends.

Historical Significance Concerns/Benefits

Developer 6/23 Response to Status of Issue Developer NACâ&#x20AC;&#x2122;s 6/21 NACâ&#x20AC;&#x2122;s Additional Response Request/Document Requests

The project is apparently governed in this respect by local, state and federal requirements.

Bedrock is in the process of pulling all applicable historic preservation guidelines, as there are several that we have to address. We have a strong track record of historic preservation and both our team members and historic consultants have deep familiarity and respect for the requirements.

Both the Developer and the City have provided information that adequately addresses this question.

No response as the NAC feels that this concern was adequately addressed.

We have received a Certificate of Appropriateness from the City Historic Council for the exterior plan of the Free Press Building and will be in front of both the Historic District Commission for final approval next month for the storefronts. This ensures that they meet the historic criteria from the local office. The second track is our submission to the State Historic Preservation Office (SHPO), the State of Michiganâ&#x20AC;&#x2122;s historic department that approves the historic portions of the building. This is then sent for submission to the National Park Service at the federal level as it relates to Historic Tax Credits for the building. Overall, this is a threepart process with Part One and Part Two ensuring we agree to the criteria and Part Three verifying that the work was completed per the plans. Appropriate oversight by both the local and state historic offices again ensure that the agreed upon work remains in compliance.

Construction Concerns/Benefits

1. Schedule for the project 2. Assuring timely notices to residents of all major activity that could affect them 3. Noise, traffic congestion, blocked streets and sidewalks 4. Dust, pollution, hazardous material risk 5. Power interruptions 6. Assuring neighbors are informed of complaint process if they see a need to make one 7. Specifics on the environmentallyfriendly aspects of the project..

Developer 6/23 Response Status of Issue NAC’s to NAC’s 6/21 Additional Requests Request/Document Bedrock is committed to helping make Detroit a more walkable city, and as such, all of our residential developments are situated so that residents are never far from the amenities Detroit’s urban environment has to offer. We have no plans to provide shuttles to the QLine for this building, as it is a relatively short walk away of approximately 0.3 miles. We will absolutely be using a wide variety of marketing materials, both online and printed to help people with interest and of every demographic find us.

The Developer’s responses to the NAC’s 6/21 Requests 10 and 12 will substantially address construction issues. Additionally, the NAC requests that the Developer and City consider maintaining a safe pedestrian walkway on Lafayette (and Washington and Cass when necessary) for the duration of the construction. Further, the NAC requests to be kept apprised of developments on lifestyle issues as the Project progresses. Further, the NAC asks that the e-blast Bedrock has not yet finalized a protocol described by the program for this building, Developer in its responses to meaning that we are unsure of Request 12 be implemented the exact square footage for all breakdown for office, retail, and commercial/retail/residential residential space. Laundry residents of the Impact Area. facilities will be dependent on how many residential units are programmed. In Bedrock’s 28Grand project, laundry facilities have been located on every floor. In the Malcomson project, a stacked washer and dryer is in every unit. Every project is unique and these are two examples of how laundry facilities may be provided.

Developer Response In response to the NAC’s request for a pedestrian walkway during construction, per the city code, Bedrock will take all appropriate measures to ensure the safety of pedestrians in and around the site during construction. In response to the request for being kept apprised of developments on lifestyle issues, Bedrock will endeavor to provide email updates regarding significant construction impacts to those residents in the impact area who have supplied email addresses. Lastly, as requested, Bedrock will utilize the e-blast protocol process that was explained in the 6/23 response to the NAC.

that would affect the surrounding community, we may not always be available to in advance. In those instances, as mentioned above, the community will have access to contact the Rock Security Command Center if construction issues are negatively impacting our neighbors. Additionally, the city requires of all developers a comprehensive street closure plan through the permitting process. We will be happy to provide that plan to the NAC and the community via an e-blast once it has been developed.

Fraternization / Community Input Concerns/Benefits

Developer 6/23 Response to NAC’s 6/21 Request/Document

1. How will This specific question was not community input outlined in the NAC 6/21 impact document. development? 2. Currently, emails and NAC members are posting fliers in apartment buildings. Who will pay for future public meeting announcements?

Status of Issue NAC’s Additional Requests 1. How will community input be collected? 2. How will community needs of grocery, laundry be addressed?

Developer Response

1. The community can utilize the email address FreepCBO@bedrockdetroit.com to send community input. 2. The plan for laundry hasn’t been finalized however, there will either be in unit washer and dryers or a laundry room within the development. In terms of groceries, there are several grocery stores in the area in addition to grocers that now deliver in Detroit. Tenants are choosing their lifestyle and can decide whether they will walk, ride a bike, use a ridehailing service like Uber or Lyft, have their groceries delivered or utilize a ZIP car.

Placemaking Concerns/Benefits

Developer 6/23 Response to NACâ&#x20AC;&#x2122;s 6/21 Request/Document

1. Outdoor This specific question Placemaking: was not outlined in the How will the NAC 6/21 document. project enhance the livability of the area (ie place-making, walkability, bikeability, lighting, safety, inviting outdoor space, etc? NOTE: This is less of a concern for cameras and more of a concern for atmospheric feeling of a safe, welcoming space; see CPTED, Crime Prevention Through Environmental Design, also PPS, Project for Public Spaces)

Status of Issue NACâ&#x20AC;&#x2122;s Additional Requests

Developer Response

The NAC appreciates additional information provided by the Developer as to its commitment to placemaking, biking and safety. The NAC asks that the Developer give strong consideration to including human-scale lighting on the sidewalks, in order to reduce shadows from current towering light poles; separating the sidewalk vertically from the road in order to enhance the sense of safety; planning for sidewalks wide enough, and unimpeded by light poles in the middle, to allow for seating, pedestrian and possible bike traffic; providing bike racks at the building, and advocating for bike lanes to connect the project area to other bike lanes and activity centers like Cobo Hall and Campus Martius.

Bedrock agrees and aggressively supports placemaking, pedestrianization, and cycling efforts throughout downtown; we will continue to explore opportunities to do so. We will make sure that there is adequate, high-quality pedestrian space, seating, and other amenities on the sidewalk in front of this building and we would be supportive of streetscape redevelopment and bike lane development efforts led by the City and other stakeholders in this area. Our architecture and design team will pay attention to the quality of light coming from exterior lights on our building and will work with the City and other partners to make sure there are appropriate levels of light outside of this building. We will have bike racks outside of this building, the number of racks will be determined by the final program of the building. There will likely be some indoor storage for bikes too but this will depend on the final program of the building.

APPENDIX COMMUNITY BENEFITS ORDINANCE, DETROIT LEGAL NEWS, NOVEMBER ATTACHMENT 29, 2016

EXECUTIVE ORDER 2016-1

ATTACHMENT

PROJECT IMPACT AREA MAP PUBLIC MEETING # 1 –PUBLIC NOTICE, FLYER, PRESENTATION –JUNE 5, 2017 PUBLIC MEETING # 2–FLYER & PRESENTATION –JUNE 15, 2017 PUBLIC MEETING # 3–FLYER & PRESENTATION –JUNE 19, 2017 PUBLIC MEETING # 4 –FLYER & PRESENTATION –JULY 6, 2017 SIGN IN TABLE FROM PUBLIC MEETINGS # 1-4 NAC LIST OF PREMIMINARY QUESTIONS AND ANSWERS FROM DEVELOPER AND PDD–JUNE 21-23, 2017 NAC IMAPCT REPORT SUBMITTED TO DEVLOPER–JUNE 26, 2017 DEVELOPER RESPONSE TO NAC IMPACT REPORT–JULY 30, 2017 PROJECT BROWNFIELD TIF PLAN PROPOSAL

ATTACHMENT

D E F G H I J K L

ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT

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(5) The Planning Director shall work with City Council to assure that, to the maximum extent possible, all of the approvals required of City Council may be considered simultaneously and subject to one approval vote. (6) The Planning Director shall work with other City departments to facilitate that Tier 1 Projects receive expedited City-required approvals. H 'HYHORSPHQW $JUHHPHQW (1) All development agreements made between the Developer and the City related to the land transfers or tax abatements associated with a Tier 1 Project shall include the Community Benefits Provision, which shall include: a. Enforcement mechanisms for failure to adhere to Community Benefits Provision, that may include but are not limited to, clawback of City-provided benefits, revocation of land transfers or land sales, debarment provisions and proportionate penalties and fees; and b. The procedure for community members to report violations of the Community Benefits Provision to the NAC. c. The length of time that Annual Compliance Reports as outlined in Subsection (f)(2) of this section, are required to be submitted. d. Continued community engagement or community meeting requirements. (2) The Developer shall not be required to enter into a legally binding agreement with any individual or organization other than the City for the express purpose of fulfilling the requirements of this ordinance or other City-mandated community engagement processes. (3) The Developer may voluntarily enter into any contract or agreement related to the Tier 1 Project that does not pose a conflict of interest with the City. I (QIRUFHPHQW (1) An Enforcement Committee shall be established to monitor Tier 1 projects. a. The Enforcement Committee shall be comprised of, at minimum, the following four individuals: i. Corporation Counsel for the City of Detroit; or their designee; ii. a representative from the Planning and Development Department; iii. a representative from the Law Department; iv. a representative from the Human Rights Department. b. In addition to the members of the Enforcement Committee as identified in Subsection (1)a of this section, the Planning Director may require that other departments participate in the Enforcement Committee as needed. (2) The Enforcement Committee shall provide a biannual compliance report to the City Council and the NAC for the time period identified in the Community Benefits Provision. (3) The Planning Director shall facilitate at least one meeting per calendar year between the NAC and the Developer to discuss the status of the Tier 1 Project for the time period identified in the Community Benefits Provision. (4) The NAC shall review any allegations of violations of the Community Benefits Provision provided to it by the community, and may report violations to the Enforcement Committee in writing.

(b) The Developerâ&#x20AC;&#x2122;s commitment as identified in Subsection (a) of this section shall be included in the development agreements related to any land transfers or tax abatements associated with the Tier 2 Project for which the Developer seeks approval. Sectio 14-12- . e tio s. The requirements of this ordinance may be waived by resolution of the City Council upon submission by either the Planning Director or the Developer identifying reasons that the requirements of this ordinance are impractical or infeasible and identifying how the Developer will otherwise provide community benefits. Sectio 2. All ordinances, or parts of ordinances, that conflict with this ordinance are repealed. Sectio 3. This ordinance is declared necessary for the preservation of the public peace, health, safety, and welfare of the People of the City of Detroit. Sectio 4. The article added by this ordinance has been enacted as comprehensive local legislation. It is intended to be the sole and exclusive law regarding its subject matter, subject to provisions of state law. (J.C.C. page ): Passed: Approved: November 8, 2016 Certified by the Board of County Canvassers: November 22, 2016 Published: November 29, 2016 Effective: November 29, 2016 JANICE M. WINFREY Detroit City Clerk

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APPENDIX COMMUNITY BENEFITS ORDINANCE, DETROIT LEGAL NEWS, NOVEMBER ATTACHMENT 29, 2016

EXECUTIVE ORDER 2016-1

ATTACHMENT

PROJECT IMPACT AREA MAP PUBLIC MEETING # 1 –PUBLIC NOTICE, FLYER, PRESENTATION –JUNE 5, 2017 PUBLIC MEETING # 2–FLYER & PRESENTATION –JUNE 15, 2017 PUBLIC MEETING # 3–FLYER & PRESENTATION –JUNE 19, 2017 PUBLIC MEETING # 4 –FLYER & PRESENTATION –JULY 6, 2017 SIGN IN TABLE FROM PUBLIC MEETINGS # 1-4 NAC LIST OF PREMIMINARY QUESTIONS AND ANSWERS FROM DEVELOPER AND PDD–JUNE 21-23, 2017 NAC IMAPCT REPORT SUBMITTED TO DEVLOPER–JUNE 26, 2017 DEVELOPER RESPONSE TO NAC IMPACT REPORT–JULY 30, 2017 PROJECT BROWNFIELD TIF PLAN PROPOSAL

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ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT

EXECUTIVE ORDER 2016-1

TO:

ALL BOARDS, COMMISSIONS, DEPARTMENT DIRECTORS, CITY COUNCIL MEMBERS, CITY CLERK, DEVELOPERS, CONTRACTORS, AND DETROIT ECONOMIC GROWTH CORPORATION (DEGC).

FROM:

MICHAEL E. DUGGAN, MAYOR

SUBJECT:

UTILIZATION OF DETROIT RESIDENTS ON PUBLICLY-FUNDED CONSTRUCTION PROJECTS

DATE:

December 16, 2016

WHEREAS, it is the policy of this Administration to encourage and maximize the utilization of Detroit residents on all City contracts and all projects benefited by City subsidies. An important component of the economic revitalization of Detroit is the employment of Detroit residents. Accordingly, this Executive Order directs any entity entering into a publicly-funded construction project to implement specific residency targets for its workforce, as follows: 1. A “publicly-funded construction project,” for purposes of this Executive Order, means (a) any construction contract for more than $3,000,000.00 (Three Million Dollars) made by the City with any person or entity; and (b) any construction project for which the City, affiliated public or quasi-public entities of the City, or any of their agents or contractors provides funds or financial assistance via any of the following methods, where total assistance from the City or its affiliated entities is over $3,000,000.00 (Three Million Dollars): (1) The sale or transfer of land below its appraised value; (2) Direct monetary support; (3) Public contributions originated by the State of Michigan or its agencies, the United States government or its agencies, or any other non-City government entity, and for which City approval is required and obtained; or (4) Tax increment financing. For purposes of calculating the total assistance directly provided through tax increment financing, tax revenue that would have accrued to all government entities shall be counted. Other persons or entities doing business with the City, but not covered by this section, may voluntarily agree to be bound by some or all of the substantive requirements of this Executive Order.

2. A “bona-fide Detroit resident,” for purposes of this Executive Order, means an individual who can demonstrate residency in the City of Detroit as of a date at least thirty (30) days prior to the date the person seeks to be employed for work on a publicly-funded construction project. Residency shall be established by the address listed on (a) any one of the following: State of Michigan identification card, State of Michigan driver’s license, or Detroit municipal ID; plus (b) any one of the following: Voter Registration Card, Motor Vehicle Registration, most recent federal, state, or City of Detroit tax returns, Lease/Rental agreement, the most recent utility bill (or utility affidavit signed by a landlord with respect to a leased residence), or most recent municipal water bill. Other forms of proof-of-residence may be accepted under certain circumstances. 3. All publicly-funded construction contracts shall include a provision providing that at least 51% of the workforce on the publicly-funded construction project shall be bona-fide Detroit residents. This requirement shall be referred to as the “Workforce Target.” The Workforce Target shall be measured by the hours worked by bona-fide Detroit residents on the publiclyfunded construction project. 4. Developers, general contractors, prime contractors and subcontractors are all required to comply with the terms of this Executive Order. Collectively, these entities are hereinafter referred to as “contractors.” It is, however, the sole responsibility of the person or entity contracting with the City of Detroit to require all of its subcontractors either to (a) meet the Workforce Target; or (b) make the required contribution to the City’s Workforce Training Fund, as provided in Paragraph 6 of this Executive Order. Contractors may utilize local unions, Detroit Employment Solutions Corporation, or other entities to help meet the Workforce Target. Failure to satisfy the requirements of this Executive Order shall constitute a breach of contract and may result in the immediate termination of the contract. 5. Upon execution of a publicly-funded construction contract, the City of Detroit’s Civil Rights, Inclusion and Opportunity Department (“CRIO”) shall determine whether the Workforce Target in the contract shall be measured periodically either (a) monthly or (b) quarterly. This period shall be referred to as the “measurement period.” Thereafter, for the duration of the construction project, the contractor shall, at the end of each measurement period, submit to CRIO a report indicating: (1) The total hours worked on the project during the preceding measurement period (“total work-hours”); (2) The total hours worked on the project by bona-fide Detroit residents during the preceding measurement period; and (3) If applicable, the amount by which the contractor fell short of meeting the Workforce Target. A contractor falling short of the Workforce Target shall report both (a) the raw number of total work-hours by which the contractor fell short of the Workforce Target; and (b) the percentage of total work-hours by which the contractor fell short of the Workforce Target.

6. A contractor who does not meet the Workforce Target in any measurement period shall help strengthen Detroit’s workforce by making a monetary contribution to the City’s CRIOadministered Workforce Training Fund, thereby supporting the skill development of Detroit residents. The required contribution for any contractor who does not meet the Workforce Target shall be the sum of the following: (1) For each work-hour comprising the first 0-10% of total work-hours by which the contractor fell short of the Workforce Target, 5% of the average hourly wage paid by the contractor on the publicly-funded construction project during the preceding measurement period. (2) For each work-hour comprising the second 0-10% of total work-hours by which the contractor fell short of the Workforce Target (if applicable), 10% of the average hourly wage paid by the contractor on the publicly-funded construction project during the preceding measurement period. (3) For each work-hour comprising the remaining 0-31% of total work-hours by which the contractor fell short of the Workforce Target (if applicable), 15% of the average hourly wage paid by the contractor on the publicly-funded construction project during the preceding measurement period.1 7. If a contractor contracts for labor through a union which is meeting the goals set for it under the Detroit Skilled Trades Employment Program, that contractor will be deemed to have met the Workforce Target with respect to the employees for which it contracted through such a union. Specifically: CRIO will make a periodic determination whether a union participating in the Detroit Skilled Trades Employment Program is meeting its established goals under that Program. For purposes of calculating a contractor’s compliance with the Workforce Target, a union which, as of the date a contractor executes its publicly-funded construction contract or subcontract, is meeting its goals under the Program shall be deemed to have no less than 51% of the hours worked by its members on the publicly-funded construction project worked by bona-fide Detroit residents. If bona-fide Detroit residents actually account for more than 51% of the hours worked by union members on a publicly-funded construction project, that actual percentage may be used for purposes of calculating compliance with the Workforce Target. 8. If CRIO determines a contractor is in non-compliance with the requirements of this Order, CRIO will notify the contractor, in writing, of the contractor’s non-compliance. If a contractor wishes to challenge a finding of non-compliance, the contractor may, within fifteen (15) days of the notice of non-compliance, file with CRIO a written notice challenging the finding of non-compliance, and detailing the reasons for that challenge. The challenge will then 1 Thus, for example, if 25% of the total work-hours performed on a publicly-funded construction project were performed by bona-fide Detroit residents, the contractor will have fallen short of the Workforce Target by 26% of the total work-hours. That contractor’s minimum required contribution would be the sum of (1) 5% of the average hourly wage for 10% of the total work-hours; (2) 10% of the average hourly wage for 10% of the total work-hours; and (3) 15% of the average hourly wage for 6% of the total work-hours.

be forwarded to a panel comprising of (1) the Cityâ&#x20AC;&#x2122;s Corporation Counsel or his or her designee; (2) the head of the Department of Administrative Hearings or his or her designee; and (3) the Director of the Buildings, Safety, Engineering, and Environment Department, or his or her designee. The panel shall adjudicate the challenge and issue a written decision. The panel may, but need not, schedule an oral hearing on the challenge. If, following written notice of non-compliance and the adjudication of any challenge, the contractor fails or refuses to take corrective actions within thirty (30) days, the City of Detroit may do any of the following: (1) withhold from the contractor all future payments under the construction contract until it is determined that the contractor is in compliance; (2) refuse all future bids on city projects or applications for financial assistance in any form from the city or any of its departments, until such time as the contractor demonstrates that it has cured its previous non-compliance; (3) debar the contractor from doing business with the City of Detroit for a period of up to one year. In addition, the City of Detroit reserves the right to re-bid the contract, in whole or in part, or hire its own workforce to complete the work. 9. All applicable construction contracts, construction contract amendments, change orders and extensions shall include the terms of this Executive Order. CRIO shall have the responsibility for preparing administrative guidelines related to this Executive Order, and for monitoring and enforcing the provisions of this Executive Order. *

* *

Pursuant to the powers vested in me by the 1963 Michigan Constitution and by the 2012 Detroit City Charter, I, Michael E. Duggan, Mayor of the City of Detroit, issue this Executive Order. This Executive Order is effective upon its execution and filing with the City Clerk and supersedes Executive Order No. 2014-4 issued by me on August 22, 2014. Provided, however, that this Executive Order shall not supersede the operation of any prior Executive Order with respect to any publicly-funded construction project on which construction activities have commenced as of the date of this Executive Order.

Michael E. Duggan Mayor, City of Detroit

APPENDIX COMMUNITY BENEFITS ORDINANCE, DETROIT LEGAL NEWS, NOVEMBER ATTACHMENT 29, 2016

EXECUTIVE ORDER 2016-1

ATTACHMENT

PROJECT IMPACT AREA MAP PUBLIC MEETING # 1 –PUBLIC NOTICE, FLYER, PRESENTATION –JUNE 5, 2017 PUBLIC MEETING # 2–FLYER & PRESENTATION –JUNE 15, 2017 PUBLIC MEETING # 3–FLYER & PRESENTATION –JUNE 19, 2017 PUBLIC MEETING # 4 –FLYER & PRESENTATION –JULY 6, 2017 SIGN IN TABLE FROM PUBLIC MEETINGS # 1-4 NAC LIST OF PREMIMINARY QUESTIONS AND ANSWERS FROM DEVELOPER AND PDD–JUNE 21-23, 2017 NAC IMAPCT REPORT SUBMITTED TO DEVLOPER–JUNE 26, 2017 DEVELOPER RESPONSE TO NAC IMPACT REPORT–JULY 30, 2017 PROJECT BROWNFIELD TIF PLAN PROPOSAL

ATTACHMENT

D E F G H I J K L

ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT

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APPENDIX COMMUNITY BENEFITS ORDINANCE, DETROIT LEGAL NEWS, NOVEMBER ATTACHMENT 29, 2016

EXECUTIVE ORDER 2016-1

ATTACHMENT

PROJECT IMPACT AREA MAP PUBLIC MEETING # 1 –PUBLIC NOTICE, FLYER, PRESENTATION –JUNE 5, 2017 PUBLIC MEETING # 2–FLYER & PRESENTATION –JUNE 15, 2017 PUBLIC MEETING # 3–FLYER & PRESENTATION –JUNE 19, 2017 PUBLIC MEETING # 4 –FLYER & PRESENTATION –JULY 6, 2017 SIGN IN TABLE FROM PUBLIC MEETINGS # 1-4 NAC LIST OF PREMIMINARY QUESTIONS AND ANSWERS FROM DEVELOPER AND PDD–JUNE 21-23, 2017 NAC IMAPCT REPORT SUBMITTED TO DEVLOPER–JUNE 26, 2017 DEVELOPER RESPONSE TO NAC IMPACT REPORT–JULY 30, 2017 PROJECT BROWNFIELD TIF PLAN PROPOSAL

ATTACHMENT

D E F G H I J K L

ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT

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COME JOIN US! $V SDUW RI WKH Community Benefits Ordinance SURFHVV WKH &LW\ RI 'HWURLW LQYLWHV \RX WR DWWHQG D SXEOLF NLFNRII PHHWLQJ /LJKW UHIUHVKPHQWV ZLOO EH SURYLGHG WR UHYLHZ DQG FRPPHQW RQ WKH Detroit Free Press Building Rehabilitation Development Project 7KLV PHHWLQJ ZLOO LQFOXGH D SURMHFW GHVFULSWLRQ DQG DQ HOHFWLRQ LQ VXSSRUW RI WKH IRUPDWLRQ RI WKH SURMHFWÂ¶V 1HLJKERUKRRG $GYLVRU\ &RXQFLO %HGURFN //& LV UHDFKLQJ RXW WR WKH FRPPXQLW\ WR UHFHLYH LQSXW :RRGZDUG $YHQXH RQ DQ DGDSWLYH UHXVH LQ 'RZQWRZQ %HGURFN //& LV SURMHFWHG WR VSHQG PLOOLRQ WR WUDQVIRUP WKH KLVWRULF Detroit Free 'HWURLW 0, QG Press Building, located at 321 W. Lafayette 7KH SURMHFW ZLOO )ORRU %HDFRQ 5RRP FUHDWH D PL[HG XVH GHYHORSPHQW WKDW ZLOO LQFOXGH UHWDLO RQ WKH ILUVW IORRU RIILFH VSDFH RQ WKH VHFRQG DQG WKLUG IORRUV DQG 30 30 UHVLGHQWLDO DSDUWPHQWV RQ WKH UHPDLQLQJ IORRUV DERYH )RU PRUH LQIRUPDWLRQ SOHDVH VHH KWWS ZZZ GHWURLWPL JRY *RYHUQPHQW 'HSDUWPHQWV DQG $JHQFLHV 3ODQQLQJ DQG 'HYHORSPHQW 'HSDUWPHQW &RPPXQLW\ 3DUNLQJ JDUDJHV ORFDWHG RQ : /DUQHG ( -HIIHUVRQ : %HQHILWV 2UGLQDQFH &RQJUHVV 6HH EDFN RI SDJH IRU PDS LQIR

Monday, June 5, 2017

One Woodward Building

Interpretation service for the hearing impaired will be provided

Meeting, Project, and Parking Location Map

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LEGAL MEETING NOTICE TO RESIDENTS LIVING WITHIN THE IMPACT AREA OF THE DETROIT FREE PRESS DEVELOPMENT PROJECT (SEE MAP ON BACK OF PAGE)

DETROIT FREE PRESS DEVELOPMENT PUBLIC KICKOFF MEETING DATE & TIME Monday, June 5, 2017 6:00pm – 8:00pm LOCATION One Woodward Building 1 Woodward Avenue Beacon Room, 2nd Floor Detroit, MI 48226 (see attached map and flier for more info) GENERAL PROJECT INFORMATION The City of Detroit welcomes Bedrock LLC to present adaptive reuse/rehabilitation of the historic Detroit Free Press Building, located at 321 W. Lafayette. The 14-story Art Deco masterpiece housed the Detroit Free Press newspaper, including all associated operations, when it opened in 1925. The building, which also contained rentable retail and commercial space, was commissioned by Free Press owner E.D. Stair. Historic features include: exterior limestone carvings by New York sculptor Ulysses Ricci, advertising room murals depicting early Detroit history by Roy C. Gamble, to name a few. On July 23, 1998, the Free Press left its home of nearly 75 years, where much of the city’s best journalism had been created. Since the Free Press vacated the building it has fallen into a state of severe disrepair. Bedrock LLC projects to spend $69 million to transform the historic Detroit Free Press Building, located at 321 W. Lafayette. The project will create a mixed-use development that will include retail on the first floor, office space on the second and third floors, and residential apartments on the remaining floors above. Bedrock LLC has noted that the project is estimated to create 196 temporary construction related jobs and 10 permanent jobs. This total job creation number does not include employment created from tenants occupying the retail and commercial space, which is expected to create additional permanent full-time jobs. Construction is expected to begin in the 3rd Quarter of 2017. For more information on the project and the Community Benefits Process, please see the below website address KWWS ZZZ GHWURLWPL JRY *RYHUQPHQW 'HSDUWPHQWV DQG $JHQFLHV 3ODQQLQJ DQG 'HYHORSPHQW 'HSDUWPHQW &RPPXQLW\ %HQHILWV 2UGLQDQFH POTENTIAL IMPACTS & MITIGATION STRATEGIES The City of Detroit is aware of and acknowledges potential community concerns related to this project in the below areas: A. Construction Impacts – Noise, dust, and temporary sidewalk/street closures which might result from the rehabilitation B. Workforce Development – Will the development meet the requirement for the number of hours worked on the project by Detroit residents C. Stress on Existing Infrastructure – Will the introduction of new housing and commercial tax the existing water/sewer system? D. Affordable Housing – How will this project address affordable housing in Detroit Please bring any additional concerns to the conversation on the evening of June 5, 2017

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Kick-off Meeting June 5, 2017

FREE PRESS COMMUNITY BENEFITS PUBLIC MEETING

INTRODUCTION & WELCOME

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

Description Welcome & introductions Councilmember remarks Developer project overview Community Benefits Ordinance overview Community Question & Answer Neighborhood Advisory Council Selection Intermission / Break Selection announcement

Time

6:00 – 6:10

6:10 – 6:20

6:20 – 6:30

6:30 – 6:40

6:40 – 6:55

6:55 – 7:35

7:35 – 7:50

7:50 – 8:00

Objective: To introduce the project to the community, address questions from the community and facilitate selection process for Neighborhood Advisory Council

Agenda

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

Brenda Jones Council President

Janeé L. Ayers Council Member At Large

Raquel Castañeda-López Council Member District 6

Council Member acknowledgements and remarks

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

DEVELOPER PRESENTATION

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

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T RT S

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22 25

ST LBY

T TE S

T AYE LAF

S WA 24

SHE

STATE ST

Capitol Park 11

7 6

Campus Martius Park

Harmonie Park

T SS

GRE

ON WC

321 W Lafayette

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AVE

alk

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Grand Circus Park

Cadillac Sq

Hart Plaza

VE NA SO FER JEF

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R AV

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BAG

LOCATOR MAP

E ST NRO

AVE MO

W ARD DW OO

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DETROIT RIVER

ST NED AR WL

AT&T MICHIGAN HEADQUARTERS 34

* DEVELOPMENTS IN THE PIPELINE

MCNAMARA FEDERAL BUILDING

ROSA PARKS TRANSIT CENTER

WASHINGTON MIXED-USE DEVELOPMENT*

WESTIN BOOK CADILLAC

PENOBSCOT BUILDING HOLIDAY INN EXPRESS

US DISTRICT COURT COMERICA BANK BUILDING 27

25 26

THE DETROIT CLUB 211 W FORT

COMERICA BANK COBO HALL CONVENTION CENTER 23

CLICK-ON-IT DETROIT NEWS DOUBLE TREE + FORT SHELBY APTS 21

WALKER-ROEHRIG BUILDING THE ASHTON APARTMENTS* 19

615 W LAFAYETTE STREET

KAHN GARAGE 17

MICHIGAN AVENUE GARAGE HOWARD STREET LOT 15

DAVID STOTT BUILDING BOOK TOWER 13

1001 WOODWARD 12

SILVERS BUILDING

FEDERAL RESERVE BUILDING 9 10

CHRYSLER HOUSE FINANCIAL DISTRICT GARAGE 8

6 7

ALLY DETROIT CENTER CHASE TOWER

MONROE BLOCKS* FIRST NATIONAL BUILDING

2 3

ONE CAMPUS MARTIUS HUDSONâ&#x20AC;&#x2122;S SITE*

M-1 RAIL / STATION

PEOPLE MOVER / STATION

JACK CASINO PROPERTIES

BEDROCK PROPERTIES

PROPERTY OF FOCUS

KEY

created.

of the city’s best journalism had been

home of nearly 75 years - where much

On July 23, 1998, the Free Press left its

connection to the elite Detroit Club

• Private Cass Ave lobby and walkway with

Detroit history by Roy C. Gamble

• Advertising Room murals depicting early

sculptor Ulysses Ricci

• Exterior limestone carvings by New York

Press owner E.D. Stair. Historic features include:

and commercial space, was commissioned by Free

The building, which also contained rentable retail

its associated operations, when it opened in 1925.

Detroit Free Press newspaper, including all of

The 14-story Art Deco masterpiece housed the

STYLE : Art Deco

ARCHITECT : Albert Kahn

YEAR : 1925

“DETROIT FREE PRESS BUILDING”

321 W LAFAYETTE PROPERTY HISTORY

• Michigan State Historic Site

- Contributing Property)

• U.S. Historic District (Detroit Financial District

HISTORICS :

ZONING : Restricted Central Business District

OVERALL BLDG HEIGHT : 190ft

FLOORS : 14 above-ground; 2 below-ground

GROSS FLOOR AREA : 271,858 square feet

PARCEL AREA : 0.633 acres

321 W LAFAYETTE ST - FREE PRESS BUILDING

PROPERTY SUMMARY

WAS H

ING

TON

BLVD

F YA E TT E

B VL D

VIEW FROM ROOFTOP

EXISTING CONDITIONS | DETROIT FREE PRESS BUILDING

LOBBY

ARCHITECTURAL DETAIL | DETROIT FREE PRESS BUILDING

ENTRY LANTERN

ROOFTOP VIEW

LAFAYETTE ENTRANCE

LIMESTONE CARVING

FRONT FACADE

LIMESTONE MEDALLION

EXTERIOR IMAGES

321 W LAFAYETTE

1ST FLOOR AD ROOM

UPPER FLOOR OFFICE

BASEMENT + MEZZANINE

ELEVATOR LOBBY

INTERIOR IMAGES

321 W LAFAYETTE

UPPER FLOOR OFFICE

1ST FLOOR RETAIL SPACE

past while reaching for the future.

Authentic design that celebrates the

with respect for the landmarkâ&#x20AC;&#x2122;s legacy..

enhanced to meet the needs of modern tenancy

creative vision, these spaces can be restored and

historic atmosphere. With the right approach and

thread between the spaces is their impressive

QTPCOGPVGF NQDDKGU CPF QHĆ&#x201A;EGU VJG EQOOQP

home to printing presses to bright, elaborately

newspaper. From soaring raw basements once

accommodating all aspects of running a major

diverse, representing the buildingâ&#x20AC;&#x2122;s history of

321 W Lafayetteâ&#x20AC;&#x2122;s interior architecture is

HISTORY + VISION

1925

2017

2020

-1

ile

PARK

CAPITOL

PUBLIC CENTER

DISTRICT D

FINANCIAL F

WOODWARD

LOWER

BROADWAY

INDUSTRIAL

321 W Lafayette

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CIRCUS

GRAND

ROUTE

STREETCAR

Q-LINE

DISTRICT

WEST SIDE

NEAR

MGM + DTE

ile

a nw mi

DETROIT

MONROE

ENTERTAINMENT

THE DISTRICT

0.5 mi to Corktown

PARK

LAFAYETTE

DETROIT RIVER

RIVERFRONT

EAST

BRICKTOWN

GREEKTOWN

Ea to 5m i

t rke Ma ter n

neighborhood.

growing momentum within each

positioned to build off the

321 W Lafayette is strategically

of three burgeoning districts,

Located at the intersection

its own unique urban lifestyle.

Central Business District offers

Each district within Detroit’s

OF DETROIT’S CBD

THE DISTRICTS

activity in Downtown Detroit.

the property was at the center of

headquarters in 1924 was no accident;

location for the Detroit Free Press

321 W Lafayette’s selection as the

districts and beyond to the greater Downtown area.

connectivity hub both between these adjacent

W Lafayette tremendous potential to become a

People Mover stations, and bus routes--give 321

assets--including protected bike lanes, Detroit

The location’s walkability and nearby mobility

identity as a crossroads between these hubs.

of these bordering districts while creating its own

capitalize on the unique characteristics of each

This position affords the site the opportunity to

• Financial District

• Capitol Park

• West Side

• Eclectic industrial venues • Quaint, historic neighborhoods • Destination dining + nightlife

WEST SIDE

three of Downtown’s districts:

321 W Lafayette is located at the intersection of

321 W LAFAYETTE - FREE PRESS BUILDING

CAPITOL PARK

U >ÃÃ č vwVi Ã«>Vi • Weekday work crowds • Iconic architecture + history

FINANCIAL DISTRICT

Campus Martius

• Residential density + diversity • Neighborhood-scale retail • Walkable urban amenities

321

are

ss/ F

PROPERTY POSITIONING

Tim u Sq

52,088 SF xn]n{{ - Î]äxÓ - / -/ / *," ,č - ³É £Ón 1 /-] BETWEEN 510 SF AND 1,200 SF EACH

OFFICE:

BASEMENTS:

RESIDENTIAL:

BASEMENT AND SUB-BASEMENT TBD

1ST AND MEZZANINE LEVEL RETAIL

2ND LEVEL OFFICE

3RD LEVEL OFFICE

4TH LEVEL RESIDENTIAL

5TH LEVEL RESIDENTIAL

6TH LEVEL RESIDENTIAL

7TH LEVEL RESIDENTIAL

8TH LEVEL RESIDENTIAL

9TH LEVEL RESIDENTIAL

10TH LEVEL RESIDENTIAL

11TH LEVEL RESIDENTIAL

12TH LEVEL RESIDENTIAL

13TH LEVEL RESIDENTIAL

14TH LEVEL RESIDENTIAL

Î ]ÓÓÇ -

243,211 SF

RETAIL:

GROSS FLOOR AREA:

POTENTIAL PROGRAMMING BREAKDOWN

321 W. LAFAYETTE

BUILDING SUMMARY | DETROIT FREE PRESS BUILDING

1,200 sf 0 sf 19,469 sf 0 sf 11,780 sf

32,449 sf

COMMON

OFFICE

RETAIL/DINING

RESIDENTIAL

AMENITIES

FLOOR AREA

14 13 12 11 1 10 09 9 08 07

BASEMENT + SUB-BASEMENT

B1 B2

06 05 04 03 02 01

FLOOR PLAN CONCEPT

SUB-BASEMENT The basement partially opens to a sub basement below, creating a soaring multistory space.

4,239 sf

PRESS ROOM The basement and sub basement housed all of the printing equipment until 1979.

PUBLIC ALLEY

OPEN TO SUB-BASEMENT

19,345 sf

11,780 sf

228’

W LAFAYETTE BLVD

STORAGE The basement was originally for storage and mechanical, giving it a utilitarian design.

WASHINGTON BLVD 146’

CASS AVE

6,575 sf 0 sf 19,469 sf 0 sf 0 sf

26,044 sf

OFFICE

RETAIL/DINING

RESIDENTIAL

AMENITIES

FLOOR AREA

14 13 12 11 1 10 09 9 08 07 B1 B2

06 05 04 03 02 01

The lobbyâ&#x20AC;&#x2122;s original terrazzo Æ&#x192;QQTU OCTDNG YCNNU CPF RNCUVGT ceiling remain largely intact.

Former ad room with original murals, wood paneling, terrazzo Æ&#x192;QQTU CPF RNCUVGT EGKNKPI

PUBLIC ALLEY

9,288 sf

LOBBY

283 sf

AD ROOM

978 sf

4,239 sf

212â&#x20AC;&#x2122;

W LAFAYETTE BLVD

PRESS GALLEY

1,694 sf

1,604 sf

Press Galley employee cafe area off of main lobby on ground Æ&#x192;QQT

1,403 sf

112â&#x20AC;&#x2122;

COMMON

1ST FLOOR

FLOOR PLAN CONCEPT N

WASHINGTON BLVD 130â&#x20AC;&#x2122; 18â&#x20AC;&#x2122;

CASS AVE

950 sf 0 sf 10,934 sf 0 sf 0 sf

11,884 sf

OFFICE

RETAIL/DINING

RESIDENTIAL

AMENITIES

FLOOR AREA

14 13 12 11 1 10 09 9 08 07 B1 B2

06 05 04 03 02 01 - MEZZ

One of two original spiral staircases leading up from the mailing room to the mezzanine.

Storage area with low ceilings CPF EGOGPV ƃQQTU UWTTQWPFKPI the mezzanine.

PUBLIC ALLEY

107’

10,934 sf

SPIRAL STAIRCASE

36’

STORAGE

150’

212’

W LAFAYETTE BLVD

MAILING ROOM View down onto the original OCKNKPI TQQO ƃQQT HTQO VJG mezzanine level.

75’

COMMON

1ST FLOOR MEZZANINE

FLOOR PLAN CONCEPT N

WASHINGTON BLVD 130’ 38’

CASS AVE

1,800 sf 24,244 sf 0 sf 0 sf 0 sf

26,044 sf

OFFICE

RETAIL/DINING

RESIDENTIAL

AMENITIES

FLOOR AREA

14 13 12 11 1 10 09 9 08 07

COMMON

2ND - 3RD FLOOR

B1 B2

06 05 04 03 02 01

OPEN OFFICE

20’-6”

Original steel sash partitions have since been removed in the OQFGTPK\CVKQP QH VJG QHƂEG

15’-6” 20’-10” 21’ 21’

FLOOR PLAN CONCEPT

20’-11”

OPEN OFFICE

PUBLIC ALLEY

30’-3”

24,244 sf

.CTIG QRGP TGEVCPIWNCT ƃQQT plates allow light from the RGTKOGVGT KPVQ VJG QHƂEG

28’-3”

212’

W LAFAYETTE BLVD

3 CORRIDOR

20’-6”

Original marble wainscoting remains along the corridor off the elevator lobby.

28’-3”

WASHINGTON BLVD 130’

CASS AVE

3,250 sf 0 sf 0 sf 18,420 sf 0 sf

21,670 sf

OFFICE

RETAIL/DINING

RESIDENTIAL

AMENITIES

FLOOR AREA

14 13 12 11 10 1 09 9 08 07

COMMON

4TH - 6TH FLOOR

B1 B2

06 05 04 03 02 01

24â&#x20AC;&#x2122; 24â&#x20AC;&#x2122;

1 OFFICE

54â&#x20AC;&#x2122;

CORRIDOR

PUBLIC ALLEY

82â&#x20AC;&#x2122;

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25â&#x20AC;&#x2122;

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212â&#x20AC;&#x2122;

W LAFAYETTE BLVD

3 LIGHTWELLS

54â&#x20AC;&#x2122;

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WASHINGTON BLVD 130â&#x20AC;&#x2122;

CASS AVE

950 sf 0 sf 0 sf 5,264 sf 0 sf

6,214 sf

OFFICE

RETAIL/DINING

RESIDENTIAL

AMENITIES

FLOOR AREA

14 13 12 11 10 09 08 07

COMMON

7TH - 13TH FLOOR

B1 B2

06 05 04 03 02 01

48â&#x20AC;&#x2122;

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54â&#x20AC;&#x2122; PUBLIC ALLEY

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25â&#x20AC;&#x2122;

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15â&#x20AC;&#x2122;

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54â&#x20AC;&#x2122;

ROOFTOP (8,000 sf)

19â&#x20AC;&#x2122;-6â&#x20AC;?

212â&#x20AC;&#x2122;

W LAFAYETTE BLVD

OFFICE

82â&#x20AC;&#x2122;

FLOOR PLAN CONCEPT

3 ROOFTOP

54â&#x20AC;&#x2122;

Parts of the rooftop have been previously adapted for a rooftop deck with views of the city.

25â&#x20AC;&#x2122;

LIGHT WELL

ROOFTOP (8,000 sf)

WASHINGTON BLVD 130â&#x20AC;&#x2122;

CASS AVE

3,500 sf 0 sf 0 sf 0 sf 0 sf

3,500 sf

OFFICE

RETAIL/DINING

RESIDENTIAL

AMENITIES

FLOOR AREA

14 13 12 11 1 10 09 9 08 07

COMMON

14TH FLOOR

B1 B2

06 05 04 03 02 01

FLOOR PLAN CONCEPT

ROOFTOP Panoramic view centered east from the uppermost rooftop, 190’ above the street. Washington Blvd can be seen on the left, the main Central Business District ahead, and the Detroit River on the right.

6JG VJ ƃQQT YCU QTKIKPCNN[ the mechanical penthouse with machinery and a radio room.

PENTHOUSE

54’ PUBLIC ALLEY

212’

W LAFAYETTE BLVD

WASHINGTON BLVD 130’

CASS AVE

FLOOR PLAN BREAKDOWN

13 12 11 10 09 08 07

B1 B2

06 05 04 03 02

14’-0” 12’-0” 26,044 sf

11’-6” 17’-0” 21,670 sf

11’-6” 12’-3” 6,214 sf

13’-6” 3,500 sf

Total Height: Main Floor Height: Mezzanine Height: Main Floor Area: Mezzanine Floor Area: Total Floor Area:

17’-6” 8’-6” 9’-0” 27,135 sf 11,884 sf 39,019 sf

Total Height: Main Floor Height: Mezzanine Height: Floor Area:

• Floor Height: • Floor Area:

SUB-BASEMENT

• • • •

10’-0” 33,364 sf

18’-6” 10’-0” 8’-6” 25,480 sf

BASEMENT + BASEMENT MEZZANINE

• • • • • •

1ST FLOOR + 1ST FL MEZZANINE

• 2nd Floor Height: • 3rd Floor Height: • Floor Area:

2ND - 3RD FLOORS

• 4th-5th Floor Height: • 6th Floor Height: • Floor Area:

4TH - 6TH FLOORS

• 7th-12th Floor Height: • 13th Floor Height: • Floor Area:

7TH - 13TH FLOORS

• Floor Height: • Floor Area:

14TH FLOOR

COMMUNITY BENEFITS ORDINANCE OVERVIEW

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

Benefits

The Community Benefits Ordinance outlines a process for developers to proactively engage with the community to identify and address any negative impacts their project might have on nearby residents

Detroit voters approved the Community Ordinance at the November 8, 2016 elections

For the full Community Benefits Ordinance text, please see the Planning Department’s website!

What does the Ordinance cover?

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

What is the scope of the project? What are the project’s impacts? Who will be impacted? How can the developer lessen/mitigate any negative impacts?

In a nutshell, the Community Benefits Ordinance is all about impacts!

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

Receipt of $1 million or more in property tax abatements The sale or transfer of City property which values $1 million or more

The Community Benefits Ordinance only applies to development projects worth $75 million or more in value AND involve one or both of the following:

When does the Ordinance Kick in?

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

All residents in the Impact Area have an equal voice in the process!

The Impact Area boundaries encompass all residents who might be directly or indirectly affected by the project

The Planning Department reviews the project scope and defines the project’s Impact Area

Who, within the community, participates in the process?

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

We started with the 2010 United States Census Tract boundaries that includes the Freep Building, as required by the Ordinance

How did the Planning Department define the projectâ&#x20AC;&#x2122;s Impact Area? 2010 United States Census Tract Boundaries

Detroit Free Press Building

Woodward Avenue, W. Elizabeth, and Bagley Street served as hard/logical boundaries for the boundary expansion. All residents and property owners within the boundaries were notified of tonightâ&#x20AC;&#x2122;s meeting

The Planning Department then expanded the Impact Area boundaries further north of the Census Tract to include more residents in the process!

2010 United States Census Tract Boundaries

Project Impact Area Detroit Free Press Building

Affordable Housing

Stress on Existing Infrastructure

Workforce Development

Construction Impacts

Planning and Development – Potential Impacts

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

faithfully carrying out the terms of the agreement

6 Enforcement Committee meets bi-annually to ensure that the developer is

presents it to City Council

5 The Planning Department creates a report on the process and agreements and

4 The developer generates an agreement to mitigate negative impacts

them to the developer

3 The NAC develops recommendations to mitigate negative impacts and presents

2 The NAC meets with the developer and community to identify project impacts

nine residents from the Impact Area and represents the community in all discussions with the developer.

1 A Neighborhood Advisory Council (NAC) is formed. The NAC is composed of

How is the Ordinance implemented/How is the community engaged ?

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

1 selected by the local District Council Member (Council Member Raquel Castañeda-López) whose district contains the Impact Area

2 selected by the At-Large Council Members (Council Member Ayers and Council President Jones)

4 selected by the City of Detroit Planning and Development Department (with preference given to residents from the Impact Area)

2 selected by residents of the Impact Area (at tonight’s meeting)

The 9 NAC members are selected as follows:

Neighborhood Advisory Council (NAC): Composition

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

Responsibilities You cannot use this position for personal gain You are agreeing to represent your fellow residents You are agreeing to provide feedback for the community You are agreeing to work together with fellow NAC members to make official recommendations to mitigate the harmful impacts of the project You are advising the City of Detroit and City Council on how best to mitigate impacts

Requirements Attend all 4 meetings with the NAC and the Developer. Note, all residents within the impact area have an equal voice! Develop NAC Impacts report Review Community Benefits Report written by the Planning and Development Department and Compliance Reports Continue to attend follow-up meetings the Developer to monitor progress and status of project

Eligibility Residents of the Impact Area At least 18 years of age

Neighborhood Advisory Council: Role, Responsibilities and Requirements

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

NAC / Developer Discussion NAC Impact Discussion Impact presentation

June 12th

June 15th

June 28th

All Meetings will be held from 5:30PM â&#x20AC;&#x201C; 7:30PM at 1 Woodward Schedule will be posted at http://www.detroitmi.gov/Government/Departments-and-Agencies/Planning-andDevelopment-Department/Community-Benefits-Ordinance#cbo-3

Description

Date

Schedule for upcoming Community Benefit Meetings (Subject to Change)

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

QUESTION & ANSWER

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

NEIGHBORHOOD ADVISORY COUNCIL SELECTION

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

selection consideration

6 Names and contact info of runner-ups will be provided to council members and PDD for NAC

5 After 15 min intermission; Selection winners will be announced

to select for the NAC on the other

4 If you have an ORANGE card, fill out your residential address on one side and who you would like

3 Once NAC nominees have completed his/her speech, residents from the IMPACT AREA will vote

2 You will have 1 minute to share why you are interested in serving on the NAC

1 If you are interested in being selected for the NAC, form a line in front of the mic stand

Selection Process Overview

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

APPENDIX COMMUNITY BENEFITS ORDINANCE, DETROIT LEGAL NEWS, NOVEMBER ATTACHMENT 29, 2016

EXECUTIVE ORDER 2016-1

ATTACHMENT

PROJECT IMPACT AREA MAP PUBLIC MEETING # 1 –PUBLIC NOTICE, FLYER, PRESENTATION –JUNE 5, 2017 PUBLIC MEETING # 2–FLYER & PRESENTATION –JUNE 15, 2017 PUBLIC MEETING # 3–FLYER & PRESENTATION –JUNE 19, 2017 PUBLIC MEETING # 4 –FLYER & PRESENTATION –JULY 6, 2017 SIGN IN TABLE FROM PUBLIC MEETINGS # 1-4 NAC LIST OF PREMIMINARY QUESTIONS AND ANSWERS FROM DEVELOPER AND PDD–JUNE 21-23, 2017 NAC IMAPCT REPORT SUBMITTED TO DEVLOPER–JUNE 26, 2017 DEVELOPER RESPONSE TO NAC IMPACT REPORT–JULY 30, 2017 PROJECT BROWNFIELD TIF PLAN PROPOSAL

ATTACHMENT

D E F G H I J K L

ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT

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Detroit Free Press Building Rehabilitation 3XEOLF 0HHWLQJ

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Interpretation service for the hearing impaired will be provided

Meeting, Project, and Parking Location Map

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T TE S

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7 6

Campus Martius Park

Harmonie Park

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321 W Lafayette

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Grand Circus Park

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Hart Plaza

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LOCATOR MAP

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W ARD DW OO

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DETROIT RIVER

ST NED AR WL

AT&T MICHIGAN HEADQUARTERS 34

* DEVELOPMENTS IN THE PIPELINE

MCNAMARA FEDERAL BUILDING

ROSA PARKS TRANSIT CENTER

WASHINGTON MIXED-USE DEVELOPMENT*

WESTIN BOOK CADILLAC

PENOBSCOT BUILDING HOLIDAY INN EXPRESS

US DISTRICT COURT COMERICA BANK BUILDING 27

25 26

THE DETROIT CLUB 211 W FORT

COMERICA BANK COBO HALL CONVENTION CENTER 23

CLICK-ON-IT DETROIT NEWS DOUBLE TREE + FORT SHELBY APTS 21

WALKER-ROEHRIG BUILDING THE ASHTON APARTMENTS* 19

615 W LAFAYETTE STREET

KAHN GARAGE 17

MICHIGAN AVENUE GARAGE HOWARD STREET LOT 15

DAVID STOTT BUILDING BOOK TOWER 13

1001 WOODWARD 12

SILVERS BUILDING

FEDERAL RESERVE BUILDING 9 10

CHRYSLER HOUSE FINANCIAL DISTRICT GARAGE 8

6 7

ALLY DETROIT CENTER CHASE TOWER

MONROE BLOCKS* FIRST NATIONAL BUILDING

2 3

ONE CAMPUS MARTIUS HUDSONâ&#x20AC;&#x2122;S SITE*

M-1 RAIL / STATION

PEOPLE MOVER / STATION

JACK CASINO PROPERTIES

BEDROCK PROPERTIES

PROPERTY OF FOCUS

KEY

created.

of the city’s best journalism had been

home of nearly 75 years - where much

On July 23, 1998, the Free Press left its

connection to the elite Detroit Club

• Private Cass Ave lobby and walkway with

Detroit history by Roy C. Gamble

• Advertising Room murals depicting early

sculptor Ulysses Ricci

• Exterior limestone carvings by New York

Press owner E.D. Stair. Historic features include:

and commercial space, was commissioned by Free

The building, which also contained rentable retail

its associated operations, when it opened in 1925.

Detroit Free Press newspaper, including all of

The 14-story Art Deco masterpiece housed the

STYLE : Art Deco

ARCHITECT : Albert Kahn

YEAR : 1925

“DETROIT FREE PRESS BUILDING”

321 W LAFAYETTE PROPERTY HISTORY

• Michigan State Historic Site

- Contributing Property)

• U.S. Historic District (Detroit Financial District

HISTORICS :

ZONING : Restricted Central Business District

OVERALL BLDG HEIGHT : 190ft

FLOORS : 14 above-ground; 2 below-ground

GROSS FLOOR AREA : 271,858 square feet

PARCEL AREA : 0.633 acres

321 W LAFAYETTE ST - FREE PRESS BUILDING

PROPERTY SUMMARY

WAS H

ING

TON

BLVD

F YA E TT E

B VL D

VIEW FROM ROOFTOP

EXISTING CONDITIONS | DETROIT FREE PRESS BUILDING

LOBBY

ARCHITECTURAL DETAIL | DETROIT FREE PRESS BUILDING

ENTRY LANTERN

ROOFTOP VIEW

LAFAYETTE ENTRANCE

LIMESTONE CARVING

FRONT FACADE

LIMESTONE MEDALLION

EXTERIOR IMAGES

321 W LAFAYETTE

1ST FLOOR AD ROOM

UPPER FLOOR OFFICE

BASEMENT + MEZZANINE

ELEVATOR LOBBY

INTERIOR IMAGES

321 W LAFAYETTE

UPPER FLOOR OFFICE

1ST FLOOR RETAIL SPACE

past while reaching for the future.

Authentic design that celebrates the

with respect for the landmarkâ&#x20AC;&#x2122;s legacy..

enhanced to meet the needs of modern tenancy

creative vision, these spaces can be restored and

historic atmosphere. With the right approach and

thread between the spaces is their impressive

QTPCOGPVGF NQDDKGU CPF QHĆ&#x201A;EGU VJG EQOOQP

home to printing presses to bright, elaborately

newspaper. From soaring raw basements once

accommodating all aspects of running a major

diverse, representing the buildingâ&#x20AC;&#x2122;s history of

321 W Lafayetteâ&#x20AC;&#x2122;s interior architecture is

HISTORY + VISION

1925

2017

2020

-1

ile

PARK

CAPITOL

PUBLIC CENTER

DISTRICT D

FINANCIAL F

WOODWARD

LOWER

BROADWAY

INDUSTRIAL

321 W Lafayette

w alk min

CIRCUS

GRAND

ROUTE

STREETCAR

Q-LINE

DISTRICT

WEST SIDE

NEAR

MGM + DTE

ile

a nw mi

DETROIT

MONROE

ENTERTAINMENT

THE DISTRICT

0.5 mi to Corktown

PARK

LAFAYETTE

DETROIT RIVER

RIVERFRONT

EAST

BRICKTOWN

GREEKTOWN

Ea to 5m i

t rke Ma ter n

neighborhood.

growing momentum within each

positioned to build off the

321 W Lafayette is strategically

of three burgeoning districts,

Located at the intersection

its own unique urban lifestyle.

Central Business District offers

Each district within Detroit’s

OF DETROIT’S CBD

THE DISTRICTS

activity in Downtown Detroit.

the property was at the center of

headquarters in 1924 was no accident;

location for the Detroit Free Press

321 W Lafayette’s selection as the

districts and beyond to the greater Downtown area.

connectivity hub both between these adjacent

W Lafayette tremendous potential to become a

People Mover stations, and bus routes--give 321

assets--including protected bike lanes, Detroit

The location’s walkability and nearby mobility

identity as a crossroads between these hubs.

of these bordering districts while creating its own

capitalize on the unique characteristics of each

This position affords the site the opportunity to

• Financial District

• Capitol Park

• West Side

• Eclectic industrial venues • Quaint, historic neighborhoods • Destination dining + nightlife

WEST SIDE

three of Downtown’s districts:

321 W Lafayette is located at the intersection of

321 W LAFAYETTE - FREE PRESS BUILDING

CAPITOL PARK

U >ÃÃ č vwVi Ã«>Vi • Weekday work crowds • Iconic architecture + history

FINANCIAL DISTRICT

Campus Martius

• Residential density + diversity • Neighborhood-scale retail • Walkable urban amenities

321

are

ss/ F

PROPERTY POSITIONING

Tim u Sq

52,088 SF xn]n{{ - Î]äxÓ - / -/ / *," ,č - ³É £Ón 1 /-] BETWEEN 510 SF AND 1,200 SF EACH

OFFICE:

BASEMENTS:

RESIDENTIAL:

BASEMENT AND SUB-BASEMENT TBD

1ST AND MEZZANINE LEVEL RETAIL

2ND LEVEL OFFICE

3RD LEVEL OFFICE

4TH LEVEL RESIDENTIAL

5TH LEVEL RESIDENTIAL

6TH LEVEL RESIDENTIAL

7TH LEVEL RESIDENTIAL

8TH LEVEL RESIDENTIAL

9TH LEVEL RESIDENTIAL

10TH LEVEL RESIDENTIAL

11TH LEVEL RESIDENTIAL

12TH LEVEL RESIDENTIAL

13TH LEVEL RESIDENTIAL

14TH LEVEL RESIDENTIAL

Î ]ÓÓÇ -

243,211 SF

RETAIL:

GROSS FLOOR AREA:

POTENTIAL PROGRAMMING BREAKDOWN

321 W. LAFAYETTE

BUILDING SUMMARY | DETROIT FREE PRESS BUILDING

1,200 sf 0 sf 19,469 sf 0 sf 11,780 sf

32,449 sf

COMMON

OFFICE

RETAIL/DINING

RESIDENTIAL

AMENITIES

FLOOR AREA

14 13 12 11 1 10 09 9 08 07

BASEMENT + SUB-BASEMENT

B1 B2

06 05 04 03 02 01

FLOOR PLAN CONCEPT

SUB-BASEMENT The basement partially opens to a sub basement below, creating a soaring multistory space.

4,239 sf

PRESS ROOM The basement and sub basement housed all of the printing equipment until 1979.

PUBLIC ALLEY

OPEN TO SUB-BASEMENT

19,345 sf

11,780 sf

228’

W LAFAYETTE BLVD

STORAGE The basement was originally for storage and mechanical, giving it a utilitarian design.

WASHINGTON BLVD 146’

CASS AVE

6,575 sf 0 sf 19,469 sf 0 sf 0 sf

26,044 sf

OFFICE

RETAIL/DINING

RESIDENTIAL

AMENITIES

FLOOR AREA

14 13 12 11 1 10 09 9 08 07 B1 B2

06 05 04 03 02 01

The lobbyâ&#x20AC;&#x2122;s original terrazzo Æ&#x192;QQTU OCTDNG YCNNU CPF RNCUVGT ceiling remain largely intact.

Former ad room with original murals, wood paneling, terrazzo Æ&#x192;QQTU CPF RNCUVGT EGKNKPI

PUBLIC ALLEY

9,288 sf

LOBBY

283 sf

AD ROOM

978 sf

4,239 sf

212â&#x20AC;&#x2122;

W LAFAYETTE BLVD

PRESS GALLEY

1,694 sf

1,604 sf

Press Galley employee cafe area off of main lobby on ground Æ&#x192;QQT

1,403 sf

112â&#x20AC;&#x2122;

COMMON

1ST FLOOR

FLOOR PLAN CONCEPT N

WASHINGTON BLVD 130â&#x20AC;&#x2122; 18â&#x20AC;&#x2122;

CASS AVE

950 sf 0 sf 10,934 sf 0 sf 0 sf

11,884 sf

OFFICE

RETAIL/DINING

RESIDENTIAL

AMENITIES

FLOOR AREA

14 13 12 11 1 10 09 9 08 07 B1 B2

06 05 04 03 02 01 - MEZZ

One of two original spiral staircases leading up from the mailing room to the mezzanine.

Storage area with low ceilings CPF EGOGPV ƃQQTU UWTTQWPFKPI the mezzanine.

PUBLIC ALLEY

107’

10,934 sf

SPIRAL STAIRCASE

36’

STORAGE

150’

212’

W LAFAYETTE BLVD

MAILING ROOM View down onto the original OCKNKPI TQQO ƃQQT HTQO VJG mezzanine level.

75’

COMMON

1ST FLOOR MEZZANINE

FLOOR PLAN CONCEPT N

WASHINGTON BLVD 130’ 38’

CASS AVE

1,800 sf 24,244 sf 0 sf 0 sf 0 sf

26,044 sf

OFFICE

RETAIL/DINING

RESIDENTIAL

AMENITIES

FLOOR AREA

14 13 12 11 1 10 09 9 08 07

COMMON

2ND - 3RD FLOOR

B1 B2

06 05 04 03 02 01

OPEN OFFICE

20’-6”

Original steel sash partitions have since been removed in the OQFGTPK\CVKQP QH VJG QHƂEG

15’-6” 20’-10” 21’ 21’

FLOOR PLAN CONCEPT

20’-11”

OPEN OFFICE

PUBLIC ALLEY

30’-3”

24,244 sf

.CTIG QRGP TGEVCPIWNCT ƃQQT plates allow light from the RGTKOGVGT KPVQ VJG QHƂEG

28’-3”

212’

W LAFAYETTE BLVD

3 CORRIDOR

20’-6”

Original marble wainscoting remains along the corridor off the elevator lobby.

28’-3”

WASHINGTON BLVD 130’

CASS AVE

3,250 sf 0 sf 0 sf 18,420 sf 0 sf

21,670 sf

OFFICE

RETAIL/DINING

RESIDENTIAL

AMENITIES

FLOOR AREA

14 13 12 11 10 1 09 9 08 07

COMMON

4TH - 6TH FLOOR

B1 B2

06 05 04 03 02 01

24â&#x20AC;&#x2122; 24â&#x20AC;&#x2122;

1 OFFICE

54â&#x20AC;&#x2122;

CORRIDOR

PUBLIC ALLEY

82â&#x20AC;&#x2122;

Double-loaded corridors line the ' UJCRGF Æ&#x192;QQT RNCVG .GCUCDNG QHÆ&#x201A;EGU QTKIKPCNN[ NKPGF GCEJ UKFG

25â&#x20AC;&#x2122;

LIGHT WELL

212â&#x20AC;&#x2122;

W LAFAYETTE BLVD

3 LIGHTWELLS

54â&#x20AC;&#x2122;

Lightwells bring sun to interior WPKVU CPF YGTG QTKIKPCNN[ QWVÆ&#x201A;VVGF YKVJ UM[NKIJVU KPVQ Æ&#x192;QQT

25â&#x20AC;&#x2122;

LIGHT WELL

24â&#x20AC;&#x2122;

The corridors were originally lined with the wood-paneled QHÆ&#x201A;EGU QH PGYURCRGT GZGEU

82â&#x20AC;&#x2122;

FLOOR PLAN CONCEPT N

WASHINGTON BLVD 130â&#x20AC;&#x2122;

CASS AVE

950 sf 0 sf 0 sf 5,264 sf 0 sf

6,214 sf

OFFICE

RETAIL/DINING

RESIDENTIAL

AMENITIES

FLOOR AREA

14 13 12 11 10 09 08 07

COMMON

7TH - 13TH FLOOR

B1 B2

06 05 04 03 02 01

48â&#x20AC;&#x2122;

'XGP QP VJG WRRGTOQUV Ć&#x192;QQTU the marble wainscoting remains in the elevator lobbies.

54â&#x20AC;&#x2122; PUBLIC ALLEY

19â&#x20AC;&#x2122;-6â&#x20AC;?

6JG VJ Ć&#x192;QQT YCU JQOG VQ VJG QHĆ&#x201A;EG QH ' / 5VCKT VJG DWKNFKPIoU original commissioner.

25â&#x20AC;&#x2122;

LIGHT WELL

15â&#x20AC;&#x2122;

ELEVATOR LOBBY

54â&#x20AC;&#x2122;

ROOFTOP (8,000 sf)

19â&#x20AC;&#x2122;-6â&#x20AC;?

212â&#x20AC;&#x2122;

W LAFAYETTE BLVD

OFFICE

82â&#x20AC;&#x2122;

FLOOR PLAN CONCEPT

3 ROOFTOP

54â&#x20AC;&#x2122;

Parts of the rooftop have been previously adapted for a rooftop deck with views of the city.

25â&#x20AC;&#x2122;

LIGHT WELL

ROOFTOP (8,000 sf)

WASHINGTON BLVD 130â&#x20AC;&#x2122;

CASS AVE

3,500 sf 0 sf 0 sf 0 sf 0 sf

3,500 sf

OFFICE

RETAIL/DINING

RESIDENTIAL

AMENITIES

FLOOR AREA

14 13 12 11 1 10 09 9 08 07

COMMON

14TH FLOOR

B1 B2

06 05 04 03 02 01

FLOOR PLAN CONCEPT

6JG VJ ƃQQT YCU QTKIKPCNN[ the mechanical penthouse with machinery and a radio room.

PENTHOUSE

54’ PUBLIC ALLEY

212’

W LAFAYETTE BLVD

WASHINGTON BLVD 130’

CASS AVE

FLOOR PLAN BREAKDOWN

13 12 11 10 09 08 07

B1 B2

06 05 04 03 02

14’-0” 12’-0” 26,044 sf

11’-6” 17’-0” 21,670 sf

11’-6” 12’-3” 6,214 sf

13’-6” 3,500 sf

Total Height: Main Floor Height: Mezzanine Height: Main Floor Area: Mezzanine Floor Area: Total Floor Area:

17’-6” 8’-6” 9’-0” 27,135 sf 11,884 sf 39,019 sf

Total Height: Main Floor Height: Mezzanine Height: Floor Area:

• Floor Height: • Floor Area:

SUB-BASEMENT

• • • •

10’-0” 33,364 sf

18’-6” 10’-0” 8’-6” 25,480 sf

BASEMENT + BASEMENT MEZZANINE

• • • • • •

1ST FLOOR + 1ST FL MEZZANINE

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APPENDIX COMMUNITY BENEFITS ORDINANCE, DETROIT LEGAL NEWS, NOVEMBER ATTACHMENT 29, 2016

EXECUTIVE ORDER 2016-1

ATTACHMENT

PROJECT IMPACT AREA MAP PUBLIC MEETING # 1 –PUBLIC NOTICE, FLYER, PRESENTATION –JUNE 5, 2017 PUBLIC MEETING # 2–FLYER & PRESENTATION –JUNE 15, 2017 PUBLIC MEETING # 3–FLYER & PRESENTATION –JUNE 19, 2017 PUBLIC MEETING # 4 –FLYER & PRESENTATION –JULY 6, 2017 SIGN IN TABLE FROM PUBLIC MEETINGS # 1-4 NAC LIST OF PREMIMINARY QUESTIONS AND ANSWERS FROM DEVELOPER AND PDD–JUNE 21-23, 2017 NAC IMAPCT REPORT SUBMITTED TO DEVLOPER–JUNE 26, 2017 DEVELOPER RESPONSE TO NAC IMPACT REPORT–JULY 30, 2017 PROJECT BROWNFIELD TIF PLAN PROPOSAL

ATTACHMENT

D E F G H I J K L

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Interpretation service for the hearing impaired will be provided

Meeting, Project, and Parking Location Map

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Neighborhood Advisory Council Checklist-Prior to the Identification of Project Impacts

YES 1. Has the developer outlined the full scope of the project to the NAC? Does the NAC understand the projectâ&#x20AC;&#x2122;s full scope? 2. Has the developer outlined the type and dollar amount of all City incentives which the project will receive? Does the NAC understand the full scope of the incentives? 3. Has the developer outlined the type and dollar value of any public property transaction(s) related to the project? Does the NAC understand the full scope the transaction(s)? 4. Has the developer provided the NAC the full text of any agreement(s) with the City and/or the Downtown Development Authority related to the project? Does the NAC understand the full scope of the agreement(s)?

NAC/Developer Impacts Discussion June 19, 2017

FREE PRESS COMMUNITY BENEFITS PUBLIC MEETING

INTRODUCTION & WELCOME

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

Description Sign-in Welcome & introductions

Developer project Recap Neighborhood Advisory Council / Developer Q&A Community / Public Question & Answer Next Steps

Time

5:30 – 5:40

5:40 – 5:45

5:45 – 5:55

5:55 – 7:00

7:00 – 7:15

7:15 – 7:30

Objective: To address questions about impacts from the Neighborhood Advisory Council about the development

Agenda

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

Appointment Community PDD PDD PDD PDD PDD CM President Jones

CM At-Large Ayers CM District 6 Castañeda-López

NAC Members

Beverley Burns

Melody Martin

Will Butler

Alexandra Novack

Leslie Tom

Eric Plummer

Kim Jackson

Andres Rosenthal

Debra Walker

The 9 NAC members are:

Neighborhood Advisory Council (NAC): Composition

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

Brenda Jones Council President

Janeé L. Ayers Council Member At Large

Raquel Castañeda-López Council Member District 6

Council Member Acknowledgements

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

DEVELOPER RECAP

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

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MCNAMARA FEDERAL BUILDING

ROSA PARKS TRANSIT CENTER

WASHINGTON MIXED-USE DEVELOPMENT*

WESTIN BOOK CADILLAC

PENOBSCOT BUILDING HOLIDAY INN EXPRESS

US DISTRICT COURT COMERICA BANK BUILDING 27

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THE DETROIT CLUB 211 W FORT

COMERICA BANK COBO HALL CONVENTION CENTER 23

CLICK-ON-IT DETROIT NEWS DOUBLE TREE + FORT SHELBY APTS 21

WALKER-ROEHRIG BUILDING THE ASHTON APARTMENTS* 19

615 W LAFAYETTE STREET

KAHN GARAGE 17

MICHIGAN AVENUE GARAGE HOWARD STREET LOT 15

DAVID STOTT BUILDING BOOK TOWER 13

1001 WOODWARD 12

SILVERS BUILDING

FEDERAL RESERVE BUILDING 9 10

CHRYSLER HOUSE FINANCIAL DISTRICT GARAGE 8

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MONROE BLOCKS* FIRST NATIONAL BUILDING

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PROPERTY OF FOCUS

KEY

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HISTORICS :

ZONING : Restricted Central Business District

OVERALL BLDG HEIGHT : 190ft

FLOORS : 14 above-ground; 2 below-ground

GROSS FLOOR AREA : 271,858 square feet

PARCEL AREA : 0.633 acres

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2ND LEVEL OFFICE

3RD LEVEL OFFICE

4TH LEVEL RESIDENTIAL

5TH LEVEL RESIDENTIAL

6TH LEVEL RESIDENTIAL

7TH LEVEL RESIDENTIAL

8TH LEVEL RESIDENTIAL

9TH LEVEL RESIDENTIAL

10TH LEVEL RESIDENTIAL

11TH LEVEL RESIDENTIAL

12TH LEVEL RESIDENTIAL

13TH LEVEL RESIDENTIAL

14TH LEVEL RESIDENTIAL

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RETAIL:

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POTENTIAL PROGRAMMING BREAKDOWN

321 W. LAFAYETTE

BUILDING SUMMARY | DETROIT FREE PRESS BUILDING

NAC/DEVELOPER DISCUSSION

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

Affordable Housing

Stress on Existing Infrastructure

Workforce Development

Construction Impacts

Potential Impacts – how will your well being or livelihood be affected by the project?

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

During this period: The NAC will pose questions about the development and potential impacts The Developer will respond to questions about the development and impacts The City of Detroit will address questions about the Community Benefits Ordinance, process and City-related questions The public will ask question….

NAC/Developer Impacts Discussion

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

COMMUNITY QUESTION & ANSWER

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

NEXT STEPS

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

Impact Mitigation presentation meeting

July 6th

Schedule will be posted at http://www.detroitmi.gov/Government/Departments-and-Agencies/Planning-andDevelopment-Department/Community-Benefits-Ordinance#cbo-3

All Meetings will be held from 5:30PM â&#x20AC;&#x201C; 7:30PM at 1 Woodward (The Beacon)

Description

Date

Schedule for upcoming Community Benefit Public Meetings (Subject to Change)

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

Description NAC Impact Report Due Developer Response Due

Date

June 26th

June 30th

Schedule for upcoming Community Benefit Submittals

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

Example NAC Impacts Report

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

APPENDIX COMMUNITY BENEFITS ORDINANCE, DETROIT LEGAL NEWS, NOVEMBER ATTACHMENT 29, 2016

EXECUTIVE ORDER 2016-1

ATTACHMENT

PROJECT IMPACT AREA MAP PUBLIC MEETING # 1 –PUBLIC NOTICE, FLYER, PRESENTATION –JUNE 5, 2017 PUBLIC MEETING # 2–FLYER & PRESENTATION –JUNE 15, 2017 PUBLIC MEETING # 3–FLYER & PRESENTATION –JUNE 19, 2017 PUBLIC MEETING # 4 –FLYER & PRESENTATION –JULY 6, 2017 SIGN IN TABLE FROM PUBLIC MEETINGS # 1-4 NAC LIST OF PREMIMINARY QUESTIONS AND ANSWERS FROM DEVELOPER AND PDD–JUNE 21-23, 2017 NAC IMAPCT REPORT SUBMITTED TO DEVLOPER–JUNE 26, 2017 DEVELOPER RESPONSE TO NAC IMPACT REPORT–JULY 30, 2017 PROJECT BROWNFIELD TIF PLAN PROPOSAL

ATTACHMENT

D E F G H I J K L

ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT

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One Woodward Building

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Meeting, Project, and Parking Location Map

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Impact Mitigation Discussion July 6, 2017

FREE PRESS COMMUNITY BENEFITS PUBLIC MEETING

INTRODUCTION & WELCOME

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

Description Sign-in Welcome & introductions

PDD to Present NAC Impact Report and Developer Answers NAC/ Developer /PDD Q&A Community / Public Question & Answer Next Steps

Time

5:30 – 5:40

5:40 – 5:45

5:45 – 6:30

6:30 – 7:00

7:00 – 7:15

7:15 – 7:30

Objective: To present the NAC Impact Report and Developer Response to the Community

Agenda

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

Appointment Community PDD PDD PDD PDD PDD CM President Jones

CM At-Large Ayers CM District 6 Castañeda-López

NAC Members

Beverley Burns

Melody Martin

Will Butler

Alexandra Novack

Leslie Tom

Eric Plummer

Kim Jackson

Andres Rosenthal

Debra Walker

The 9 NAC members are:

Neighborhood Advisory Council (NAC): Composition

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

Brenda Jones Council President

Janeé L. Ayers Council Member At Large

Raquel Castañeda-López Council Member District 6

Council Member Acknowledgements

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

PRESENTATION OF NAC CONCERNS AND DEVELOPERâ&#x20AC;&#x2122;S RESPONSE

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

Subsection (a)(4) Subsection (c)(1) Subsection (d)(2)

The Community Benefits Ordinance, SEC. 14-12-3, outlines three subsections to which we should refer in regard to the identification and inventory of residents concerns with the project and the developer’s response to such concerns:

COMMUNITY BENEFITS ORDINACE REQUIREMENTS: NAC CONCERNS AND DEVELOPER’S RESPONSE

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

Subsection (a)(4) At the public meeting, the Planning Director will present general information about the Tier 1 Project, discuss ways in which the Tier 1 Project is anticipated to impact the local community, and ways in which the Developer and the Planning Director plan to address or mitigate these impacts.

COMMUNITY BENEFITS ORDINACE REQUIREMENTS: NAC CONCERNS AND DEVELOPER’S RESPONSE

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

Subsection (c)(1) In addition to the meeting required in Subsection (a)(1) of this section, the Planning Director shall facilitate at least one meeting between the NAC and the Developer to allow the NAC to learn more details about the project and to provide an opportunity for the NAC to make Developer aware of concerns raised by the NAC.

COMMUNITY BENEFITS ORDINACE REQUIREMENTS: NAC CONCERNS AND DEVELOPER’S RESPONSE

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

Subsection (d)(2) – States that the Planning Development Department’s Community Benefits Report to City Council shall include the following: c. An itemized list of the concerns raised by the NAC. d. A method for addressing each of the concerns raised by the NAC, or why a particular concern will not be addressed.

COMMUNITY BENEFITS ORDINACE REQUIREMENTS: NAC CONCERNS AND DEVELOPER’S RESPONSE

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

Description Planning and Development Department raised the following potential project impacts as required in Subsection (a)(4): Construction Impacts Workforce Development Stress on Existing Infrastructure Affordable Housing

Eight of the Nine NAC members were empaneled. As required in Subsection (c)(1), the Planning and Development Department facilitated discussions between the empaneled NAC and the Developer to allow the NAC to learn more details about the project and to provide an opportunity for the NAC to make Developer aware of their concerns. Planning and Development also raised potential project impacts as required in Subsection (a)(4). All nine NAC members were empaneled. As required in Subsection (c)(1), Planning and Development Department facilitated discussions between the full NAC and the Developer to provide an opportunity for the full NAC learn details of the project and to make Developer aware of their concerns. Planning and Development also raised potential project impacts as required in Subsection (a)(4)

Date

June 5, 2017 Public Meeting #1

June 15, 2017 Public Meeting #2

June 19, 2017 Public Meeting # 3

TIMELINE – How we have met the Ordinance requirements

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

Description The NAC presented a list of 12 preliminary questions to the Developer, which touched upon public arts, potential retail amenities, bicycle plans, job creation, affordable housing, parking, historic preservation, resolution of issues residents might have during construction, and additional lifestyle questions. Bedrock and PDD staff answered this list on June 23, 2017.

The NAC presented their official Impact Report to the Developer and PDD. The Impact Report included a list of 7 NAC concerns in the areas of jobs, affordable housing, parking, historical significance, construction, Fraternization/Community Input and placemaking. Additionally, the NAC outlined a list of 8 “pitfalls” associated with the implementation of the project’s CBO process. The Developer submitted their answers to the NAC’s Impact Report/Itemized List of Concerns. As required by Subsection (d)(2), this documents outlines method for addressing each of the concerns raised by the NAC, or why a particular concern will not be addressed.

Date

June 21, 2017 NAC submits preliminary Questions to the Developer and PDD Staff

June 26, 2017 NAC submits Impact Report to the Developer and PDD Staff

June 30, 2017 Developer submits Answers to NAC Impact Report

TIMELINE – Where we have been in meeting the Ordinance requirements re: NAC concerns and Developers response?

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

2. Plans for what amenities you might add for retail and what the density might be around the area (i.e. grocery, bars, restaurants, etc.) We are currently in the early stages of redevelopment for this building, essentially everything about the use and merchandising is still to be determined. That said, the surrounding residents and day time office population will certainly be top of mind as we continue to refine our strategy. Our intention is to remain consistent with our typical retail merchandising strategy, which is focused on creating unique and engaging experiences through amazing retail destinations, food and beverage offerings, street level activation and neighborhood services.

1. Plan for any public arts fund and process to choose artists/engage community As discussed at the Free Press Building CBO meeting #3, Bedrock does not have a fund for public art, but it is something we do with many projects. We have a track record of engaging local artists including both in our recent small business mural project, for which we brought in three local artists in addition to hundreds of Family of Companies volunteers to paint murals throughout the city, as well as working with Charles McGee, who created a mural on our 28Grand development. Sydney James, another local artist, has created a mural in Bedrock’s Federal Reserve Building. There are also pieces by Tiff Massey, Bev Fishman, Scott Hocking, Tylonn Sawyer, and many others throughout Bedrock’s building portfolio. Like all of our projects, the Free Press Building will incorporate art in a thoughtful way.

June 21, 2017 Preliminary NAC Questions and Developer’s Reponses

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

4. Written documentation of the 51% requirement regarding work hours on the project We are attaching a copy of the City of Detroit’s Executive Order related to this topic, 2016-1. Bedrock adheres to all Executive Orders and ordinances and will do the same with the Freep. We welcome the City’s related Skilled Trades Employment Program (STEP), which seeks to increase access for Detroiters to skilled trades careers. More information on that program can be found here: http://www.detroitmi.gov/News/ArticleID/1169/City-Launches-New-InitiativetoEnsure-More-Detroiters-Have-Access-to-Skilled-Trades-Apprenticeships-and-Careers

3. Bicycle plans Bedrock is an advocate for cycling infrastructure in downtown Detroit. Bedrock, and the Quicken Loans Family of Companies, has previously invested in the design of a network of protected bike lanes in downtown Detroit (to be delivered by the Downtown Detroit Partnership in 2018) and would be supportive of bike lane network extensions that connect the Free Press Building to this network – and the city overall – via Fort Street, Lafayette Boulevard, Washington Boulevard, and Cass Avenue. Bedrock is also committed to providing bike storage and other bike related amenities in our residential and commercial properties. In Bedrock’s Malcomson project, bicycle storage is provided on each floor. In our 28Grand project, bicycle storage is located on the first floor. Bedrock is also supportive of MoGo Detroit bike share and would like to work with MoGo’s leadership to encourage the placement of a bike dock near the Free Press Building.

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

6. Specific data on the number of parking spaces available within a three-block radius of the site, and daily/lease use and price data, if available The link below will provide a comprehensive view of the available parking around the Free Press Building and throughout the CBD. The two concentric rings depict a quarter mile and half mile

We are working on an agreement that lays out this plan with the City, which we hope to finalize in the coming weeks. While there will not be affordable housing in the Freep building (as it is not economically feasible to do so in light of the very significant costs of restoring this distressed historic building), we have affordable housing under construction in Capitol Park and Brush Park and are continuing to explore other opportunities to provide affordable housing in Detroit. In terms of tenant selection, we would be happy to work with housing agencies as well as social support groups, area non-profits and churches to obtain referrals.

5. Written confirmation of the current requirement for 20% affordable housing and a written description of the Developerâ&#x20AC;&#x2122;s plan to implement that requirement at the Free Press site including but not limited to the process for selection of tenants for the affordable units The City has a policy that there be 20% affordable housing associated with projects that receive tax incentives or receive land at a discounted price. It is also our understanding that an ordinance is going through council to formalize this policy, but nothing has yet been passed. Given the number of development projects Bedrock has close to one another, working with the City, we have developed a strategy to provide 20% affordable units across our portfolio. This will ensure that as Bedrock continues to support the redevelopment of the greater downtown, we will be supporting the development of an inclusive, mixed-income community. The affordable housing Bedrock provides will include not only new construction, but also the preservation of existing affordable housing to ensure that residents currently living in affordable housing can continue to do so.

FREE PRESS BUILDING COMMUNITY BENEFIT MEETING

7. The developer’s plan, if it has been created at this time, to assist tenants, both residential and commercial, to find regularly accessible nearby parking Residents are encouraged to work with Universal Parking Management, who manages Bedrock’s garages. The garages we own contain over 18,000 stalls in all. We are also working on programs to minimize the expense for people that live and work downtown and only need access to their vehicles on the weekends. They would have the opportunity to park outside of the Central Business District Monday through Friday and then would have weekend access to a garage closer to their home for convenience on the weekends.

The Bedrock controlled parking count is roughly 2,200 spaces if 1401 1st Street is included, which is on the edge of the 3-block radius from the building. If that garage is excluded, the Bedrock owned count drops to less than 1,600 Bedrock owned spaces. Parking rates vary across these sites based on type (garage vs. surface lot), proximity to the CBD, and freeway access among other factors. Utilization also varies across the sites, with those closest to the CBD typically having the highest utilization Monday – Friday. The initial study attribution is noted by clicking the arrow in the upper left corner of the web page.

from the Freep building. Parking garages are shown in dark blue, while surface lots are shaded lighter blue. Clicking on the respective sites will display street address and reported parking count for each of the selected locations. Detroit CBD Parking Map

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Regarding the request for pertinent local, state and federal requirements for historical preservation, Jennifer Ross from the Cityâ&#x20AC;&#x2122;s Historic District Commission (and also Planning and Development Department), can provide the requested information.

The second track is our submission to the State Historic Preservation Office (SHPO), the State of Michiganâ&#x20AC;&#x2122;s historic department that approves the historic portions of the building. This is then sent for submission to the National Park Service at the federal level as it relates to Historic Tax Credits for the building. Overall, this is a three-part process with Part One and Part Two ensuring we agree to the criteria and Part Three verifying that the work was completed per the plans. Appropriate oversight by both the local and state historic offices again ensure that the agreed upon work remains in compliance.

8. Copies of pertinent local, state, federal requirements for historical preservation, together with the Developerâ&#x20AC;&#x2122;s process for complying with same Bedrock is in the process of pulling all applicable historic preservation guidelines, as there are several that we have to address. We have a strong track record of historic preservation and both our team members and historic consultants have deep familiarity and respect for the requirements.

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10. Regarding additional lifestyle questions, please advise whether shuttles will be provided to the nearest QLine stop for residents; whether there are plans to assure diverse occupancy of the residences; whether the floor plans for market rate units will differ from the affordable units; and what laundry facilities will be provided. Bedrock is committed to helping make Detroit a more walkable city, and as such, all of our residential developments are situated so that residents are never far from the amenities Detroit’s urban environment has to offer. We have no plans to provide shuttles to the QLine for this building, as it is a relatively short walk away of approximately 0.3 miles.

Steve Ogden, Bedrock’s NAC representative, has shared his contact information with the NAC members in case of any problems during construction. Bedrock’s VP of Property Management, Krista Capp, will also make herself available to help and can be reached at (313-782-9730).

9. Written confirmation of the process for neighbors, both residential and commercial, to get prompt resolution of problems during construction—noise, obstruction, safety issues, for example All of our residents are given the Rock Security Command Center (RSCC) number to call with any interior or construction related issues after hours, and we will be happy to share that number with non-tenant neighbors as well. The RSCC takes all of their information and will send a security officer over to evaluate the issue and remedy it where possible. RSCC will also call the property manager to alert them to the problem if they cannot resolve it so that we can make calls to area construction project managers requesting a cease or change in operations. While it is much easier to control this for Bedrock construction projects, the RSCC can make these requests for non-Bedrock projects as well. Residents also have their property manager’s number to contact with any problems 24/7.

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The total in-dollar incentive from the City all comes in the form of abating or capturing taxes that would not exist “but for” the development taking place. The City receives no tax benefits from the vacant building today. By utilizing these tax tools to make the redevelopment possible, the City will not lose any revenue it has today, but will instead get significant new revenue from all of the residents, jobs, and businesses that will occupy in the building. We will provide the

11. Regarding economic impacts, please advise whether retailers will be subsidized by the developer; the impact of NEZ and the length of the requirement for the residential units to be rentals; the total in dollar-incentive from the City and how those dollars will be spread throughout the project; and the Developer’s goals or plan to achieve at least 51% of hours on the job to Detroit residents, and whether these goals or plans apply to post-construction hours as well as those during construction. The NEZ property tax abatement is necessary for the project to be economically feasible. The NEZ is intended to help make rehabilitation projects possible by not imposing tax on the improvements being made for a period of up to 12 years, with a phase out after that. Separate from the NEZ, the Federal Historic Tax Credits require that the units be maintained as rental units for at least five years. If Bedrock were to convert to condominium units after that, and there are no plans to do so, Bedrock would have to work with the City and the State to request the transfer of the NEZ benefits to the ultimate owner.

We will absolutely be using a wide variety of marketing materials, both online and printed to help people with interest and of every demographic find us. Bedrock has not yet finalized a program for this building, meaning that we are unsure of the exact square footage breakdown for office, retail, and residential space. Laundry facilities will be dependent on how many residential units are programmed. In Bedrock’s 28Grand project, laundry facilities have been located on every floor. In the Malcomson project, a stacked washer and dryer is in every unit. Every project is unique and these are two examples of how laundry facilities may be provided.

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12. Supplementing item 9 above, the Developer’s plan to keep the impact area apprised of ongoing construction impact—street and sidewalk closures, possible debris and so on. Bedrock will set up an e-blast protocol to the NAC via which closures and other major construction related items can be proactively communicated based on the email list that NAC members have provided. We are open to allowing the e-blast distribution list grow to include other members of the community if that is the NAC’s preference. Some construction processes and closures are more need-based and spontaneous than planned, so while we will try to communicate all instances that would affect the surrounding community, we may not always be able to in advance. In those instances, as mentioned above, the community will have access to contact the Rock Security Command Center if construction issues are negatively impacting our neighbors. Additionally, the city requires of all developers a comprehensive street closure plan through the permitting process. We will be happy to provide that plan to the NAC and the community via an e-blast once it has been developed.

total estimated value of the incentives in a subsequent response after conferring with the City of Detroit and the Detroit Brownfield Redevelopment Authority. Regarding the 51% Detroit hiring requirement, as noted in our response to Question #4 above, we will adhere to all Executive Orders and Ordinances.

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The Impact Area includes many residents who live in apartments; notice to them of the first—and subsequent—meetings was spotty and resulted in only a single resident attending the first meeting. The nine-member NAC was not complete until the third scheduled meeting, and that—added to the compressed timeline the NAC was asked to meet—caused procedural challenges for the NAC members, each of whom has busy schedules. The NAC met with the Developer and the City, and conducted other communication via email and telephone. This proved effective for the current project. No doubt in large part because the CBO is so new, the “charge” to the NAC was not abundantly clear. For example, in one presentation the NAC was asked to focus on the negative effects of the Free Press Rehab project; the CBO, on the other hand, focuses on economic growth and prosperity for all residents. Further, it remains unclear what consideration should be given by the NAC to commercial and retail “residents” of the Impact Area. Future NACs might benefit from a clear description, at the outset, of the respective roles of the City, the pertinent City Council members, the Developer and the NAC. While the Free Press Rehab NAC took a broad view of relevant issues, we recognized that we may have raised issues not exactly pertinent to this project. Certainly, the NACs may raise whatever questions they wish, recognizing that their role is purely advisory; however, it may nevertheless help future NACs to hear examples of the scope of issues that may be pertinent to their projects. We believe that one challenge to the implementation of this CBO process is very simply that each project will be different from the one that came before, and the one that comes after. So while it will be critical to develop a process that is effective and efficient, that process will also need to be flexible in order to accommodate projects as varied as the few that have already been tested under the CBO. The process for future NACs must address the reality that not all NAC members will have equal access to, or capability with, technology.

NAC’S outlined ”pitfalls” with Current CBO Process

FINAL NAC IMPACT REPORT AND DEVELOPER RESPONSES

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The Developer has confirmed that by existing requirements, 51% of the work hours on the project have to be performed by Detroit residents. The Developer estimates that about ten post-construction jobs would be created for individuals employed by the landlord; at this point it’s not possible to estimate the number of jobs created by tenants in the building.

Concerns/Benefits

Jobs:

http://www.detroitmi.gov/News/ArticleID/1169/City-LaunchesNew-InitiativetoEnsure-More-Detroiters-Have-Access-to-Skilled-TradesApprenticeships-and-Careers

Developer 6/23 Response to NAC’s 6/21 Request/Document

The Developer’s 6/23 written response to NAC’s 6/21 Request 4 addresses this question adequately for the time being; the NAC requests periodic status reports on compliance with this requirement.

Status of Issue NAC’s Additional Requests

Bedrock will share the reports with the NAC that are submitted to the City with respect to this project, as it relates to our compliance with the city’s current Executive Order.

Developer Final Response

TABLE - NAC PROPOSED COMMUNITY BENEFITS AND DEVELOPER RESPONSE INCLUDING

FINAL NAC IMPACT REPORT AND DEVELOPER RESPONSES

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Concerns/Benefits

Developer 6/23 Response to NAC’s 6/21 Request/Document

Affordable Housing: 1. In response to NAC’s 6/1 Request 5, the Developer advised there will be no affordable housing in this project. This was new information to the NAC and accordingly, while the NAC appreciate the Developer’s additional information about affordable housing requirements and practices, we request a copy of the written agreement with the City that confirms the City’s and the Developer’s agreement that no affordable housing will be provided in this project. If there is no such agreement at this time, the NAC requests to be advised approximately when the agreement will be made final, and requests to be provided with a copy of such agreement immediately.

Status of Issue NAC’s Additional Requests

Bedrock will forward relevant documents describing any affordable housing agreement with the city with respect to this Project, once it’s filed with the City Clerk.

Developer Final Response

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Concerns/Benefits

Parking:

Residents are encouraged to work with Universal Parking Management, who manages Bedrock’s garages. The garages we own contain over 18,000 stalls in all. We are also working on programs to minimize the expense for people that live and work downtown and only need access to their vehicles on the weekends. They would have the opportunity to park outside of the Central Business District Monday through Friday and then would have weekend access to a garage closer to their home for convenience on the weekends.

The Bedrock controlled parking count is roughly 2,200 spaces if 1401 1st Street is included, which is on the edge of the 3-block radius from the building. If that garage is excluded, the Bedrock owned count drops to less than 1,600 bedrock owned spaces. Parking rates vary across these sites based on type (garage vs. surface lot), proximity to the CBD, and freeway access among other factors. Utilization also varies across the sites, with those closest to the CBD typically having the highest utilization Monday – Friday. The initial study attribution is noted by clicking the arrow in the upper left corner of the web page.

Detroit CBD Parking Map

Developer 6/23 Response to NAC’s 6/21 Request/Document In response to NAC’s 6/21 Requests 6 and 7, the Developer provided substantial information as to potential measures to alleviate parking limitations and costs, and to enhance safety. The NAC requests to be periodically updated on the progress in this area.

Status of Issue NAC’s Additional Requests

Bedrock will update the NAC on this matter biannually on or before June 30 and December 31st, throughout the duration of construction.

Developer Response

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The project is apparently governed in this respect by local, state and federal requirements.

Concerns/Benefits

The second track is our submission to the State Historic Preservation Office (SHPO), the State of Michigan’s historic department that approves the historic portions of the building. This is then sent for submission to the National Park Service at the federal level as it relates to Historic Tax Credits for the building. Overall, this is a three-part process with Part One and Part Two ensuring we agree to the criteria and Part Three verifying that the work was completed per the plans. Appropriate oversight by both the local and state historic offices again ensure that the agreed upon work remains in compliance.

Developer 6/23 Response to NAC’s 6/21 Request/Document

Historical Significance: Both the Developer and the City have provided information that adequately addresses this question.

Status of Issue NAC’s Additional Requests

No response as the NAC feels that this concern was adequately addressed.

Developer Response

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5. 6.

1. 2.

Schedule for the project Assuring timely notices to residents of all major activity that could affect them Noise, traffic congestion, blocked streets and sidewalks Dust, pollution, hazardous material risk Power interruptions Assuring neighbors are informed of complaint process if they see a need to make one Specifics on the environmentallyfriendly aspects of the project..

Concerns/Benefits

Construction: Status of Issue NAC’s Additional Requests

Bedrock will set up an e-blast protocol to the NAC via which closures and other major construction related items can be proactively communicated based on the email list that NAC members have provided. We are open to allowing the e-blast distribution list grow to include other members of the community if that is the NAC’s preference. Some construction processes and closures are more need-based and spontaneous than planned, so while we will try to communicate all instances that would affect the surrounding community, we may not always be available to in advance. In those instances, as mentioned above, the community will have access to contact the Rock Security Command Center if construction issues are negatively impacting our neighbors. Additionally, the city requires of all developers a comprehensive street closure plan through the permitting process. We will be happy to provide that plan to the NAC and the community via an e-blast once it has been developed.

The Developer’s responses to the NAC’s 6/21 Requests 10 and 12 will substantially address construction issues. Additionally, the NAC requests that the Developer and City consider maintaining a safe pedestrian walkway on Lafayette (and Washington and Cass when necessary) for the duration of the construction. Further, the NAC requests to be kept apprised of developments on lifestyle issues as the Project progresses. Further, the NAC asks that the eblast protocol described by the Developer in its responses to Bedrock has not yet finalized a program for this building, meaning Request 12 be implemented for all that we are unsure of the exact square footage breakdown for office, commercial/retail/residential residents of the Impact Area. retail, and residential space. Laundry facilities will be dependent on how many residential units are programmed. In Bedrock’s 28Grand project, laundry facilities have been located on every floor. In the Malcomson project, a stacked washer and dryer is in every unit. Every project is unique and these are two examples of how laundry facilities may be provided.

Bedrock is committed to helping make Detroit a more walkable city, and as such, all of our residential developments are situated so that residents are never far from the amenities Detroit’s urban environment has to offer. We have no plans to provide shuttles to the QLine for this building, as it is a relatively short walk away of approximately 0.3 miles. We will absolutely be using a wide variety of marketing materials, both online and printed to help people with interest and of every demographic find us.

Developer 6/23 Response to NAC’s 6/21 Request/Document

In response to the NAC’s request for a pedestrian walkway during construction, per the city code, Bedrock will take all appropriate measures to ensure the safety of pedestrians in and around the site during construction. In response to the request for being kept apprised of developments on lifestyle issues, Bedrock will endeavor to provide email updates regarding significant construction impacts to those residents in the impact area who have supplied email addresses. Lastly, as requested, Bedrock will utilize the e-blast protocol process that was explained in the 6/23 response to the NAC.

Developer Response

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How will community input impact development? Currently, emails and NAC members are posting fliers in apartment buildings. Who will pay for future public meeting announcements?

Concerns/Benefits This specific question was not outlined in the NAC 6/21 document.

Developer 6/23 Response to NAC’s 6/21 Request/Document

Fraternization / Community Input: 1. 2.

How will community input be collected? How will community needs of grocery, laundry be addressed?

Status of Issue NAC’s Additional Requests

2. The plan for laundry hasn’t been finalized however, there will either be in unit washer and dryers or a laundry room within the development. In terms of groceries, there are several grocery stores in the area in addition to grocers that now deliver in Detroit. Tenants are choosing their lifestyle and can decide whether they will walk, ride a bike, use a ride-hailing service like Uber or Lyft, have their groceries delivered or utilize a ZIP car.

1. The community can utilize the email address FreepCBO@bedrockdetroit.com to send community input.

Developer Response

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Developer 6/23 Response to NACâ&#x20AC;&#x2122;s 6/21 Request/Document

This specific question was not outlined in the NAC 6/21 document. Outdoor Placemaking: How will the project enhance the livability of the area (ie place-making, walkability, bike-ability, lighting, safety, inviting outdoor space, etc? NOTE: This is less of a concern for cameras and more of a concern for atmospheric feeling of a safe, welcoming space; see CPTED, Crime Prevention Through Environmental Design, also PPS, Project for Public Spaces)

Concerns/Benefits

Placemaking: The NAC appreciates additional information provided by the Developer as to its commitment to placemaking, biking and safety. The NAC asks that the Developer give strong consideration to including human-scale lighting on the sidewalks, in order to reduce shadows from current towering light poles; separating the sidewalk vertically from the road in order to enhance the sense of safety; planning for sidewalks wide enough, and unimpeded by light poles in the middle, to allow for seating, pedestrian and possible bike traffic; providing bike racks at the building, and advocating for bike lanes to connect the project area to other bike lanes and activity centers like Cobo Hall and Campus Martius.

Status of Issue NACâ&#x20AC;&#x2122;s Additional Requests

Developer Response

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NAC/DEVELOPER/PDD QUESTION & ANSWER

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COMMUNITY QUESTION & ANSWER

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NEXT STEPS

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Description PDD to finalize CBO report

Date

July 7

Schedule for upcoming Community Benefit Submittals

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As per the Ordinance, Corporation Council is responsible for forming and leading the Enforcement Committee. Planning and Development will work with the Law Department, in addition to the Human Rights Department and the Legislative Policy Division, to assist in the formation of the Committee and the establishment of the Enforcement Process

Enforcement Committee

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APPENDIX COMMUNITY BENEFITS ORDINANCE, DETROIT LEGAL NEWS, NOVEMBER ATTACHMENT 29, 2016

EXECUTIVE ORDER 2016-1

ATTACHMENT

PROJECT IMPACT AREA MAP PUBLIC MEETING # 1 –PUBLIC NOTICE, FLYER, PRESENTATION –JUNE 5, 2017 PUBLIC MEETING # 2–FLYER & PRESENTATION –JUNE 15, 2017 PUBLIC MEETING # 3–FLYER & PRESENTATION –JUNE 19, 2017 PUBLIC MEETING # 4 –FLYER & PRESENTATION –JULY 6, 2017 SIGN IN TABLE FROM PUBLIC MEETINGS # 1-4 NAC LIST OF PREMIMINARY QUESTIONS AND ANSWERS FROM DEVELOPER AND PDD–JUNE 21-23, 2017 NAC IMAPCT REPORT SUBMITTED TO DEVLOPER–JUNE 26, 2017 DEVELOPER RESPONSE TO NAC IMPACT REPORT–JULY 30, 2017 PROJECT BROWNFIELD TIF PLAN PROPOSAL

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Email Address Aries22R@gmail.com Burns@MillerCanfield.com csanforduchc@yahoo.com dthomas@centricdesignstudio.com

Address

2727 2nd Ave. Suite 313 440 Burroughs 1410 Washington Blvd. #1140 -15769 Farmview Ct.

Sign In Name Andres Pichardo Beverly Burns Claudia Sanford Damon Thomas Denise Cochran Donald Reneher Frank McClosky Geoff Sleeman George Roberts James Martin James McClosky Jonella Mongo Leslie Tom Melody Martin Mike Tack Saundra Little Tim McKay Violeta Martin Whitney Eichinger Will Butler

OHVOLH WRP#JPDLO FRP

melodywty@sbcglobal.net

200 River Front Dr.

1434 Washington Blvd. 11245 Birch Point Dr. 440 Burroughs 1450 Sixth Street # C 1136 Shelby St. --

-webutler4@gmail.com

violamG24@hotmail.com

timjmckay@sbcglobal.net

slittle@centraldesignstudio.com

drjmongo@gmail.com

JE #ZD\QH HGX

jamesm@unitedmetalproducts.com

76 W. Adams 1135 Shelby St. 15769 Farmview Ct. 527 W. Lafayette 20A

denisecochran@ymail.com

NOHLY#GHWURLWPL JRY "

lewisrs@detroitmi.gov

silvari@detroitmi.gov

canceln@detroitmi.gov

waltersma@detroitmi.gov vargasn@detroitmi.gov

wesleyl@detroitmi.gov

RossJ@detroitmi.gov walkerjo@detroitmi.gov

barnesja@detroitmi.gov

CouncilmemberRaquel@detroitmi.gov

woodruffa@detroitmi.gov McLeodAs@Detroitmi.gov

Email Address

Department Department of Neighborhoods Mayor's Office Council Member CastaÃ±eda-LÃ³pez Council President Brenda Jones Planning & Development Dept. Council Member Ayers Council President Brenda Jones Mayor's Office Council Member CastaÃ±eda-LÃ³pez Department of Neighborhoods Council Member Ayers Planning & Development Dept. --

City of Detroit Contacts Ammie Woodruff Ashley D. McLeod Council Member CastaÃ±eda-LÃ³pez Jasmine Barnes Jennifer Ross Jordan Walker Linda Wesley Matt Walters Nicole Varags Ninfa Cancel Ricardo Silva Steve Lewis V. Kleiv? (ineligible)

Telephone No. 630-337-9468 (818) 326-5374 (313) 496-7508 313-758-1648 (908) 872-6800 248-705-5954 313-303-5935 313-595-5935 Text: 313-595-0453 248.821.0841

webutler4@gmail.com

melodywty@sbcglobal.net

kjackson@petcalls.net leslie.tom@gmail.com

debratwalker@yahoo.com eplummer2010@gmail.com

Burns@MillerCanfield.com

Aries22R@gmail.com

alexandranovak2@gmail.com

Email Address

Neighborhood Advisory Council Alexandra Novak Andres Rosenthal Beverley Burns Debra Walker Eric Plummer Kimberly Jackson Leslie Tom Melody Martin Will Butler

313-595-5935 Text: 313-595-0453 419-419-3244 313-433-0392 313-963-2425 248-808-9374 -248.821.0841

313-444-4081 248-467-4580 586-879-7549 --

Telephone No. (818) 326-5374 (313) 496-7508 313-963-3310 ext. 316 or ext. 310 313-595-4914 Home: 313-872-1401 Cell: 313-829-7211 -586-879-7549

Telephone No. 313-236-3529 313.224.3104 -(313) 224-8034 email 313-224-4242 -313.224.9277 313-224-0220 313-236-3530 313.224.4248 (313) 224-1254 --

Appt. PDD CM At-Large Ayers Community CM District 6 CastaÃ±eda-LÃ³pez PDD CM President Jones PDD PDD PDD

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APPENDIX COMMUNITY BENEFITS ORDINANCE, DETROIT LEGAL NEWS, NOVEMBER ATTACHMENT 29, 2016

OBSOLETE PROPERTY REHABILITATION ACT

ATTACHMENT

PROJECT IMPACT AREA MAP PUBLIC MEETING # 1 –PUBLIC NOTICE, FLYER, PRESENTATION –JUNE 5, 2017 PUBLIC MEETING # 2–FLYER & PRESENTATION –JUNE 15, 2017 PUBLIC MEETING # 3–FLYER & PRESENTATION –JUNE 19, 2017 PUBLIC MEETING # 4 –FLYER & PRESENTATION –JULY 6, 2017 SIGN IN TABLE FROM PUBLIC MEETINGS # 1-4 NAC LIST OF PREMIMINARY QUESTIONS AND ANSWERS FROM DEVELOPER AND PDD–JUNE 21-23, 2017 NAC IMAPCT REPORT SUBMITTED TO DEVLOPER–JUNE 26, 2017 DEVELOPER RESPONSE TO NAC IMPACT REPORT–JULY 30, 2017 PROJECT BROWNFIELD TIF PLAN PROPOSAL

ATTACHMENT

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NAC PRELIMINARY QUESTIONS ANSWERED BY DEVELOPER ON 6/23/2017

?6 $ & '* &1 (- $! *,+ -& & (*' ++ ,' ''+ *,!+,+7 & '%%-&!,1 + !+ -++ , , * * ++ -!$ !& % ,!& ;A3 *' # ' + &', . -& '* (- $! *,3 -, !, !+ +'% , !& / ' /!, % &1 (*'" ,+6 . ,* # * '* ' & !& $' $ *,!+,+ !& $- !& ', !& '-* * &, +% $$ -+!& ++ %-* $ (*'" ,3 '* / ! / *'- , !& , * $' $ *,!+,+ !& !,!'& ,' -& * + ' %!$1 ' '%( &! + .'$-&, *+ ,' ( !&, %-* $+ , *'- '-, , !,13 + / $$ + /'*#!& /!, *$ + 3 / ' * , %-* $ '& '-* @F * & . $'(% &,6 Sydney James, another local artist, has created a mural in Bedrockâ&#x20AC;&#x2122;s * $ + *. -!$ !& 6 * * $+' (! + 1 ! ++ 13 . !+ % &3 ',, ' #!& 3 1$'&& /1 *3 & % &1 others throughout Bedrockâ&#x20AC;&#x2122;s building portfolio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â&#x20AC;&#x201C; & , !,1 '. * $$ â&#x20AC;&#x201C; .! '*, ,* ,3 1 ,, '-$ . * 3 + !& ,'& '-$ . * 3 & ++ . &- 6 *' # !+ $+' '%%!,, ,' (*'.! !& !# +,'* & ', * !# * $ , % &!,! + !& '-* * +! &,! $ & '%% * ! $ (*'( *,! +6 In Bedrockâ&#x20AC;&#x2122;s Malcomson (*'" ,3 ! 1 $ +,'* !+ (*'.! '& $''*6 & '-* @F * & (*'" ,3 ! 1 $ +,'* !+ $' , '& , !*+, $''*6 *' # !+ $+' +-(('*,!. ' ' ' ,*'!, !# + * & /'-$ $!# to work with MoGoâ&#x20AC;&#x2122;s leadership to encourage the placement of a bike dock near the Free * ++ -!$ !& 6 B6 *!,, & ' -% &, ,!'& ' , C?J * )-!* % &, * * !& /'*# '-*+ '& , (*'" , * ,, !& '(1 ' , City of Detroitâ&#x20AC;&#x2122;s 0 -,!. * * * $ , ,' , !+ ,'(! 3 @>?D8?6 *' # * + ,' $$ 0 -,!. * *+ & '* !& & + & /!$$ ' , + % /!, , * (6 We welcome the Cityâ&#x20AC;&#x2122;s related Skilled Trades Employment Program (STEP), which seeks to !& * + ++ '* ,*'!, *+ ,' +#!$$ ,* + * *+6 '* !& '*% ,!'& '& , , (*' * % & '-& * 5 ,,(577///6 ,*'!,%!6 '.7 /+7 *,! $ 7??DG7 !,18 -& +8 /8 &!,! ,!. 8 ,'8 &+-* 8 '* 8 ,*'!, *+8 . 8 ++8,'8 #!$$ 8 * +8 ((* &,! + !(+8 & 8 * *+

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C6 *!,, & '& !*% ,!'& ' , -** &, * )-!* % &, '* @>J '* $ '-+!& & /*!,, & description of the Developerâ&#x20AC;&#x2122;s plan to implement that requirement at the Free Press site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â&#x20AC;&#x201C; *! 16 !&!,! $ +,- 1 ,,*! -,!'& !+ &', 1 $! #!& , **'/ !& , -(( * $ , '*& * ' , / ( 6

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E6 The developerâ&#x20AC;&#x2122;s plan, if it has been created at this time, to assist tenants, both residential and '%% * ! $3 ,' !& * -$ *$1 ++! $ & * 1 ( *#!& +! &,+ * & '-* ,' /'*# /!, &!. *+ $ *#!& & % &,3 / ' % & + Bedrockâ&#x20AC;&#x2122;s * +6 * + / '/& '&, !& '. * ?F3>>> +, $$+ !& $$6 * $+' /'*#!& '& (*' * %+ ,' %!&!%!2 , 0( &+ '* ( '($ , , $!. & /'*# '/&,'/& & '&$1 & ++ ,' , !* . ! $ + '& , / # & +6 1 /'-$ . , '(('*,-&!,1 ,' ( *# '-,+! ' , &,* $ -+!& ++ !+,*! , '& 1 , *'- *! 1 & , & /'-$ . / # & ++ ,' * $'+ * ,' , !* '% '* '&. &! & '& , / # & +6 F6 '(! + ' ( *,!& &, $' $3 +, , 3 * $ * )-!* % &,+ '* !+,'*! $ (* + *. ,!'&3 ,' , * /!, , Developerâ&#x20AC;&#x2122;s process for complying with same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ichiganâ&#x20AC;&#x2122;s hi+,'*! ( *,% &, , , ((*'. + , !+,'*! ('*,!'&+ ' , -!$ !& 6 !+ !+ , & + &, '* +- %!++!'& ,' , ,!'& $ *# *.! , , * $ $ . $ + !, * $ , + ,' !+,'*! 0 * !,+ '* , -!$ !& 6 . * $$3 , !+ !+ , * 8( *, (*' ++ /!, *, & & *, /' &+-*!& / * ,' , *!, *! & *, * . *! 1!& , , , /'*# / + '%($ , ( * , ($ &+6 ((*'(*! , '. *+! , 1 ', , $' $ & +, , !+,'*! ' ! + !& &+-* , , , * -('& /'*# * % !&+ !& '%($! & 6 * !& , * )- +, '* ( *,!& &, $' $3 +, , & * $ * )-!* % &,+ '* !+,'*! $ (* + *. ,!'&3 &&! * '++ *'% , Cityâ&#x20AC;&#x2122;s Historic District Commission (and also Planning and . $'(% &, ( *,% &,:3 & (*'.! , * )- +, !& '*% ,!'&6 G6 *!,, & '& !*% ,!'& ' , (*' ++ '* & ! '*+3 ', * +! &,! $ & '%% * ! $3 ,' , (*'%(, * +'$-,!'& ' (*' $ %+ -*!& '&+,*- ,!'&â&#x20AC;&#x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* )- +,+ '* &'&8 *' # (*'" ,+ + / $$6 Residents also have their property managerâ&#x20AC;&#x2122;s number ,' '&, , /!, &1 (*' $ %+ @B7E6 Steve Ogden, Bedrockâ&#x20AC;&#x2122;s NAC representative, has + * !+ '&, , !& '*% ,!'& /!, , % % *+ in case of any problems during construction. Bedrockâ&#x20AC;&#x2122;s VP of Property Management,

*!+, ((3 /!$$ $+' % # *+ $ . !$ $ ,' $( & & * , 9A?A8EF@8GEA>:6 ?>6 * !& !,!'& $ $! +,1$ )- +,!'&+3 ($ + .!+ / , * + -,,$ + /!$$ (*'.! ,' , & * +, !& +,'( '* * +! &,+4 / , * , * * ($ &+ ,' ++-* !. *+ ' -( & 1 ' , * +! & +4 / , * , $''* ($ &+ '* % *# , * , -&!,+ /!$$ ! * *'% , '* $ -&!,+4 & / , $ -& *1 !$!,! + /!$$ (*'.! 6 *' # !+ '%%!,, ,' $(!& % # ,*'!, %'* / $# $ !,13 & + +- 3 $$ ' '-* * +! &,! $ . $'(% &,+ * +!,- , +' , , * +! &,+ * & . * * *'% , % &!,! + Detroitâ&#x20AC;&#x2122;s urban environment has to offer. We have no plans to provide shuttles to the QLine for , !+ -!$ !& 3 + !, !+ * $ ,!. $1 + '*, / $# / 1 ' ((*'0!% , $1 >6A %!$ +6 /!$$ +'$-, $1 -+!& /! . *! ,1 ' % *# ,!& % , *! $+3 ', '&$!& & (*!&, ,' $( ( '($ /!, !&, * +, & ' . *1 %' * ( ! !& -+6 *' # + &', 1 , !& $!2 (*' * % '* , !+ -!$ !& 3 % &!& , , / * -&+-* ' , 0 , +)- * '', * # '/& '* ' ! 3 * , !$3 & * +! &,! $ +( 6 -& *1 !$!,! + /!$$ ( & &, '& '/ % &1 * +! &,! $ -&!,+ * (*' * %% 6 & rockâ&#x20AC;&#x2122;s 28Grand project, $ -& *1 !$!,! + . & $' , '& . *1 $''*6 & , $ '%+'& (*'" ,3 +, # / + * & *1 * !+ !& . *1 -&!,6 . *1 (*'" , !+ -&!)- & , + * ,/' 0 %($ + ' '/ $ -& *1 !$!,! + % 1 (*'.! 6 ??6 * !& '&'%! !%( ,+3 ($ + .!+ / , * * , !$ *+ /!$$ +- +! !2 1 , . $'( *4 , !%( , ' & , $ & , ' , * )-!* % &, '* , * +! &,! $ -&!,+ ,' * &, $+4 , ,', $ !& '$$ *8!& &,!. *'% , !,1 & '/ , '+ '$$ *+ /!$$ +(* throughout the project; and the Developerâ&#x20AC;&#x2122;s goals or plan to achieve at least 51% of hours on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that would not exist â&#x20AC;&#x153;but forâ&#x20AC;? the development taking place. !,1 * !. + &' , 0 & !,+ *'% , . &, -!$ !& ,' 16 1 -,!$!2!& , + , 0 ,''$+ ,' % # , * . $'(% &, ('++! $ 3 , !,1 /!$$ &', $'+ &1 * . &- !, + ,' 13 -, /!$$ !&+, , +! &! ! &, & / * . &- *'% $$ ' , * +! &,+3 "' +3 & -+!& ++ + , , /!$$ ' -(1 !& , -!$ !& 6 /!$$ (*'.! ,

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,', $ +,!% , . $- ' , !& &,!. + !& +- + )- &, * +('&+ , * '& **!& /!, , !,1 ' ,*'!, & , ,*'!, *'/& ! $ . $'(% &, -, '*!,16 * !& , C?J ,*'!, !*!& * )-!* % &,3 + &', !& '-* * +('&+ ,' - +,!'& ;B '. 3 / /!$$ * ,' $$ 0 -,!. * *+ & * !& & +6 ?@6 Supplementing item 9 above, the Developerâ&#x20AC;&#x2122;s plan to keep the impact area apprised of ongoing '&+,*- ,!'& !%( ,â&#x20AC;&#x201D;+,* , & +! / $# $'+-* +3 ('++! $ *!+ & +' '&6 *' # /!$$ + , -( & 8 $ +, (*',' '$ ,' , .! / ! $'+-* + & ', * % "'* '&+,*- ,!'& * $ , !, %+ & (*' ,!. $1 '%%-&! , + '& , % !$ $!+, , , % % *+ . (*'.! 6 * '( & ,' $$'/!& , 8 $ +, !+,*! -,!'& $!+, *'/ ,' !& $- other members of the community if that is the NACâ&#x20AC;&#x2122;s preference. Some construction processes & $'+-* + * %'* & 8 + & +('&, & '-+ , & ($ && 3 +' / !$ / /!$$ ,*1 ,' '%%-&! , $$ !&+, & + , , /'-$ , , +-**'-& !& '%%-&!,13 / % 1 &', $/ 1+ $ ,' !& . & 6 & , '+ !&+, & +3 + % &,!'& '. 3 , '%%-&!,1 /!$$ . ++ ,' '&, , , ' # -*!,1 '%% & &, * ! '&+,*- ,!'& !++- + * & ,!. $1 !%( ,!& '-* & ! '*+6 !,!'& $$13 , !,1 * )-!* + ' $$ . $'( *+ '%(* &+!. +,* , $'+-* ($ & , *'- , ( *%!,,!& (*' ++6 /!$$ ((1 ,' (*'.! , , ($ & ,' , & , '%%-&!,1 .! & 8 $ +, '& !, + & . $'( 6

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APPENDIX COMMUNITY BENEFITS ORDINANCE, DETROIT LEGAL NEWS, NOVEMBER ATTACHMENT 29, 2016

EXECUTIVE ORDER 2016-1

ATTACHMENT

PROJECT IMPACT AREA MAP PUBLIC MEETING # 1 –PUBLIC NOTICE, FLYER, PRESENTATION –JUNE 5, 2017 PUBLIC MEETING # 2–FLYER & PRESENTATION –JUNE 15, 2017 PUBLIC MEETING # 3–FLYER & PRESENTATION –JUNE 19, 2017 PUBLIC MEETING # 4 –FLYER & PRESENTATION –JULY 6,, 2017 SIGN IN TABLE FROM PUBLIC MEETINGS # 1-4 NAC LIST OF PREMIMINARY QUESTIONS AND ANSWERS FROM DEVELOPER AND PDD–JUNE 21-23, 2017 NAC IMAPCT REPORT SUBMITTED TO DEVLOPER–JUNE 26, 2017 DEVELOPER RESPONSE TO NAC IMPACT REPORT–JULY 30, 2017 PROJECT BROWNFIELD TIF PLAN PROPOSAL

ATTACHMENT

D E F G H I J K L

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Communications

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APPENDIX COMMUNITY BENEFITS ORDINANCE, DETROIT LEGAL NEWS, NOVEMBER ATTACHMENT 29, 2016

EXECUTIVE ORDER 2016-1

ATTACHMENT

PROJECT IMPACT AREA MAP PUBLIC MEETING # 1 –PUBLIC NOTICE, FLYER, PRESENTATION –JUNE 5, 2017 PUBLIC MEETING # 2–FLYER & PRESENTATION –JUNE 15, 2017 PUBLIC MEETING # 3–FLYER & PRESENTATION –JUNE 19, 2017 PUBLIC MEETING # 4 –FLYER & PRESENTATION –JULY 6, 2017 SIGN IN TABLE FROM PUBLIC MEETINGS # 1-4 NAC LIST OF PREMIMINARY QUESTIONS AND ANSWERS FROM DEVELOPER AND PDD–JUNE 21-23, 2017 NAC IMAPCT REPORT SUBMITTED TO DEVLOPER–JUNE 26, 2017 DEVELOPER RESPONSE TO NAC IMPACT REPORT–JULY 30, 2017 PROJECT BROWNFIELD TIF PLAN PROPOSAL

ATTACHMENT

D E F G H I J K L

ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT

# ! " !$ ! +' & e Developerâ&#x20AC;&#x2122;s 6/23 written response to NACâ&#x20AC;&#x2122;s 6/21 Request 4 addresses this question %) ( - #& ( ( ! " 1 ( & %) '(' $ & # '( ()' & $#&(' #" #!$ " + ( ( ' & %) & ! "(2

" & &# + ' & ( & $#&(' + ( ( ( ( & ') ! (( (# ( (- + ( & '$ ( (# ( ' $&# (0 as it relates to our compliance with the cityâ&#x20AC;&#x2122;s current Executive Order. ,' " & In response to the NACâ&#x20AC;&#x2122;s 6/1 Request 5, the Developer advised there will be no #& #)' " " ( ' $&# (2 ' + ' " + " #&! ( #" (# ( " #& " -0 while the NAC appreciates the Developerâ&#x20AC;&#x2122;s additional information about affordable #)' " & %) & ! "(' " $& ( '0 + & %) '( #$- # ( +& (( " & ! "( + ( ( (- ( ( #" &!' ( ityâ&#x20AC;&#x2122;s and the Developerâ&#x20AC;&#x2122;s agreement that no affordable #)' " + $&#* " ( ' $&# (2 ( & ' "# ') & ! "( ( ( ' ( ! 0 ( & %) '(' (# * ' $$&#, ! ( - + " ( & ! "( + ! " 0 " & %) '(' (# $&#* + ( #$- # ') & ! "( !! ( -2

" & &# + #&+ & & * "( # )! "(' ' & " "- #& #)' " & ! "( + ( ( (- + ( & '$ ( (# ( ' &# (0 once itâ&#x20AC;&#x2122;s filed with the City C & 2 -' & In response to NACâ&#x20AC;&#x2122;s <3:9 %) '(' < " =0 ( * #$ & $&#* ') '( "( " #&! ( #" ' (# $#( "( ! ')& ' (# * ( $ & " ! ( ( #"' " #'( 0 " (# " " ' (-2 & %) '(' (# $ & # - )$ ( #" ( $&# & '' " ( ' & 2

" & &# + )$ ( ( #" ( ' ! (( & 4 "") - #" #& #& )" ;8 " ! & ;9'(0 ( &#) #)( ( )& ( #" # #"'(&) ( #"2 <3;83:89=

&#$#' #!!)" (- " (' " * #$ & '$#"'

9 # ;

.' ! & # & %) '( + ' ! " ( ' ( #&-2 /' ! " ! & The Developerâ&#x20AC;&#x2122;s response to the NACâ&#x20AC;&#x2122;s <3:9 %) '(' 98 " 9: + ') '( "( - & '' #"'(&) ( #" '') '2 ( #" -0 ( & %) '(' ( ( ( * #$ & " (- #"' & ! "( " " ' $ '(& " + + - #" - (( 5 " ' " (#" " '' + " " '' &-6 #& ( )& ( #" # ( #"'(&) ( #"2 )&( &0 ( & %) '(' (# $( $$& ' # * #$! "(' #" '(- '') ' ' ( &# ( $&# & '' '2 )&( &0 ( ' ' ( ( ( 4 '( $&#(# # ' & - ( * #$ & " (' & '$#"' ' (# %) '(' 9: !$ ! "( #& #!! & 3& ( '3& ' "( & ' "(' # ( !$ ( & 2

" & In response to the NACâ&#x20AC;&#x2122;s request for a pedestrian walkway during construction, p & ( (- # 0 &# + ( $$&#$& ( ! ')& ' (# "')& ( ' (- # $ '(& "' " " &#)" ( ' ( )& " #"'(&) ( #"2 " & '$#"' (# ( & %) '( #& " $( $$& ' # * #$! "(' #" '(- '') '0 &# + " *#& (# $&#* ! )$ ( ' & & " ' " "( #"'(&) ( #" !$ (' (# ( #' & ' "(' " ( !$ ( & + # * ')$$ ! & '' '2 '( -0 ' & %) '( 0 &# + )( . ( 4 '( $&#(# # $&# '' ( ( + ' ,$ " " ( <3:; & '$#"' (# ( 2 0' ! % ! ( " !$ "!& 92 #+ + #!!)" (- "$)( # ( /

" & #!!)" (- " )( . ( ! & '' ) ! !' (# ' " #!!)" (- "$)(2 :2 #+ + ( #!!)" (- " ' # ( &# &- " )" &- & '' /

" & The plan for laundry hasnâ&#x20AC;&#x2122;t been finalized however, there will either be in unit + ' & " &- &' #& )" &- &##! + ( " ( * #$! "(2 " ( &!' # &# & '0 ( & & ' * & &# &- '(#& ' " ( & " ( #" (# &# &' ( ( "#+ * & " (&# (2 " "(' & ##' " ( & '(- " " + ( & ( - + + 0 & 0 )' & 4 " ' &* & #& - (0 * ( & &# & ' * & #& )( . &2 <3;83:89=

&#$#' #!!)" (- " (' " * #$ & '$#"'

: # ;

1' Status of Issue NACâ&#x20AC;&#x2122;s Additional Request: $$& ( ' ( #" " #&! ( #" $&#* - ( * #$ & ' (# (' #!! (! "( (# $ ! " 0 " " ' (-2 ' ' ( ( ( * #$ & * '(&#" #"' & ( #" (# " ) " )! "4' ( " #" ( ' + '0 " #& & (# & ) ' #+' &#! )&& "( (#+ & " ( $# '1 ' $ & ( " ( ' + * &( - &#! ( &# " #& & (# " " ( ' "' # ' (-1 $ "" " #& ' + ' + "#) 0 " )" !$ - ( $# ' " ( ! 0 (# #+ #& ' ( " 0 $ '(& " " $#'' (& 1 $&#* " & ' ( ( ) " 0 " *# ( " #& " ' (# #"" ( ( $&# ( & (# #( & " ' " ( * (- "( &' # # " !$)' &( )'2

" & &# & ' " & '' * - ')$$#&(' $ ! " 0 $ '(& " . ( #"0 " - " #&(' ( &#) #)( #+"(#+"1 + + #"( ") (# ,$ #& #$$#&()" ( ' (# # '#2 + ! ')& ( ( ( & ' %) ( 0 4%) (- $ '(& " '$ 0 ' ( " 0 " #( & ! " ( ' #" ( ' + " &#"( # ( ' ) " " + +#) ')$$#&( * # '(& (' $ & * #$! "( " " * #$! "( #&(' - ( (- " #( & '( # &' " ( ' & 2 )& & ( ()& " ' " ( ! + $ - (( "( #" (# ( %) (- # ( #! " &#! ,( & #& (' #" #)& ) " " + +#& + ( ( (- " #( & $ &(" &' (# ! ')& ( & & $$&#$& ( * ' # ( #)(' # ( ' ) " 2 + * & ' #)(' # ( ' ) " 0 ( ")! & # & ' + ( &! " - ( " $&# & ! # ( ) " 2 & + - '#! " ##& '(#& #& ' (## )( ( ' + $ " #" ( " $&# & ! # ( ) " 2 & "'+ &' #* & '$#" (# ( %) '( #"' &#! ( & & '' & * #"

#" -0 )" :<( 2 +#) (# "#( ( ( & '$#"' ' #* ')$$ ! "( ( & '$#"' ' + provided to the NACâ&#x20AC;&#x2122;s questions sent June 21'(0 ( ( + & '$#" (# #" )" :;& 2

<3;83:89=

&#$#' #!!)" (- " (' " * #$ & '$#"'

; # ;

APPENDIX COMMUNITY BENEFITS ORDINANCE, DETROIT LEGAL NEWS, NOVEMBER ATTACHMENT 29, 2016

EXECUTIVE ORDER 2016-1

ATTACHMENT

PROJECT IMPACT AREA MAP PUBLIC MEETING # 1 –PUBLIC NOTICE, FLYER, PRESENTATION –JUNE 5, 2017 PUBLIC MEETING # 2–FLYER & PRESENTATION –JUNE 15, 2017 PUBLIC MEETING # 3–FLYER & PRESENTATION –JUNE 19, 2017 PUBLIC MEETING # 4 –FLYER & PRESENTATION –JULY 6,, 2017 SIGN IN TABLE FROM PUBLIC MEETINGS # 1-4 NAC LIST OF PREMIMINARY QUESTIONS AND ANSWERS FROM DEVELOPER AND PDD–JUNE 21-23, 2017 NAC IMAPCT REPORT SUBMITTED TO DEVLOPER–JUNE 26, 2017 DEVELOPER RESPONSE TO NAC IMPACT REPORT–JULY 30, 2017 PROJECT BROWNFIELD TIF PLAN PROPOSAL

ATTACHMENT

D E F G H I J K L

ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT

EXHIBIT A

CITY OF DETROIT BROWNFIELD REDEVELOPMENT AUTHORITY

BROWNFIELD PLAN FOR THE FORMER FREE PRESS BUILDING 321 W. LAFAYETTE REDEVELOPMENT PROJECT

Prepared by: Pyramid Development Co., LLC 1092 Woodward Avenue Detroit, MI Contact Person: Mr. Scott Collins Project Executive Phone: 313-373-8742 scottcollins@bedrockdetroit.com

Jamieson Development Consulting 4495 Lynne Lane Commerce Township, MI 48382 Contact Person: Anne Jamieson-Urena Phone: 248-762-8701 Jamiesona15@gmail.com 4/6/17

CITY OF DETROIT BROWNFIELD REDEVELOPMENT AUTHORITY BROWNFIELD PLAN TABLE OF CONTENTS I.

INTRODUCTION

II.

GENERAL PROVISIONS

III.

I-1

A. Description of Eligible Property

II-2

B. Basis of Eligibility

II-3

C. Summary of Eligible Activities

II-4

D. Estimate of Captured Taxable Value and Tax Increment Revenues; Impact of Tax Increment Financing on Taxing Jurisdictions

II-5

E. Plan of Financing; Maximum Amount Of Indebtedness

II-6

F. Duration of Plan

II-7

G. Effective Date of Inclusion

II-7

H. Displacement/Relocation of Individuals On Eligible Property

II-7

I. Local Site Remediation Revolving Fund (LSRRF)

II-7

J. Brownfield Redevelopment Fund

II-8

K. Developerâ&#x20AC;&#x2122;s Obligations, Representations and Warrants

II-8

ATTACHMENTS A. Site Map

B. Legal Description(s)

C. Project Description

D. Supportive Letters

D 2

E. Estimated Cost of Eligible Activities

F. TIF Tables

G. Letter Determining Functional Obsolescence

H. Incentives Chart

I. INTRODUCTION In order to promote the revitalization of environmentally distressed and blighted areas within the boundaries of the City of Detroit, Michigan (the “City”), the City has established the City of Detroit Brownfield Redevelopment Authority (the “DBRA”) pursuant to Michigan Public Act 381 of 1996, as amended (“Act 381”). The primary purpose of this Brownfield Plan (“Plan”) is to promote the redevelopment of and private investment in certain “brownfield” properties within the City. Inclusion of property within this Plan will facilitate financing of environmental response and other eligible activities at an eligible property, and will also provide tax incentives to eligible taxpayers willing to invest in revitalization of eligible sites, commonly referred to as “brownfields.” By facilitating redevelopment of brownfield properties, this Plan is intended to promote economic growth for the benefit of the residents of the City and all taxing units located within and benefited by the DBRA. This Plan is intended to apply to the eligible property identified in this Plan and, to identify and authorize the eligible activities to be funded by tax increment revenues. This Plan is intended to be a living document, which may be modified or amended in accordance with the requirements of Act 381, as necessary to achieve the purposes of Act 381. The applicable sections of Act 381 are noted throughout the Plan for reference purposes. This Plan describes the project to be completed (see Attachment C) and contains information required by Section 13(1) of Act 381.

Exhibit A Former Free Press Building - 321 W. Lafayette Brownfield Redevelopment Plan

II. GENERAL PROVISIONS A. Description of the Eligible Property (Section 13 (1)(h)) and the Project The property comprising the eligible property is the former Free Press Building and consists of one parcel of land totaling 0.63 acres located on the south side of West Lafayette Boulevard between Cass Avenue and Washington Boulevard in Detroit, Wayne County, Michigan. The eligible property located at 321 West Lafayette is functionally obsolete, as determined by the City of Detroit Assessor. The parcel and all tangible personal property located thereon will comprise the eligible property and is referred to herein as the “Property.” Attachment A includes a site map of the Property. The Property is developed with one 17story building with basement and sub-basement totaling 276,183 square feet that occupies the entire parcel. The Property is surrounded by concrete walkways on the north, east, and west sides and by a concrete alley way and parking lot on the south side. Parcel information is outlined below. Address

321 W. Lafayette Blvd.

Parcel ID

02/000196

Owner

Pyramid Development CO., LLC

Legal Description

See Attachment B

Pyramid Development CO., LLC is the project developer (“Developer”) and owner of the Property. The Former Free Press Building redevelopment is planned as a historic rehabilitation to create a mixed-use development that will include first floor retail, second and third floor offices, with residential apartments on the remaining floors above (“Project”). A Brownfield Plan, an Act 381 Work Plan, and a Large Brownfield MBT Credit, titled “Detroit Free Press House” and “Free Press Plaza and Apartments” were approved for the Eligible Property in 2010. The Brownfield Plan, Act 381 Work Plan, and the Brownfield MBT Credit need to be modified to update the following information: legal descriptions, scope of Project, Eligible Activities, Eligible Investment and Qualified Taxpayer that were included in the original approvals. The Developer is requesting the concurrent termination of the “Detroit Free Press House” Brownfield Plan, approved in 2010, and the approval of the Former Free Press Building Brownfield Plan in 2017. The Developer will then terminate and request approval of a new 2

Exhibit A Former Free Press Building - 321 W. Lafayette Brownfield Redevelopment Plan

Act 381 Work Plan to address the changes in the Brownfield Plan, and amend the Large Brownfield MBT Credit. In addition, it is understood that the Eligible Property is located within the Downtown Development Authority (DDA) and therefore the Developer will only be able to capture available school taxes during the life of the Brownfield Plan. The DDA will capture all local property taxes, except for Regional Educational Service Agency (RESA), which will be captured by the Detroit Brownfield Redevelopment Authority (DBRA) to cover their administrative fees. The project description provided herein is a summary of the proposed development at the time of the adoption of the Plan. The actual development may vary from the project description provided herein, without necessitating an amendment to this Plan, so long as such variations arise as a result of changes in market and/or financing conditions affecting the project and/or are related to the addition of amenities to the project. All such changes to the project description that affect the scope or amount of eligible activities are subject to the approval of the DBRA staff and shall be consistent with the overall nature of the proposed development, its proposed public purpose, and the purposes of Act 381. Attachment C provides a description of the project to be completed at the Property (the “Project”) and Attachment D includes letters of support for the Project. B. Basis of Eligibility (Section 13 (1)(h) and Section 2 (o)) The Property is considered “eligible property” as defined by Act 381, Section 2 because (a) the Property was previously utilized or is currently utilized for a commercial purpose; (b) it is located within the City of Detroit, a qualified local governmental unit under Act 381; and (c) the Property is determined to be a functionally obsolete. The Property is considered “eligible property” as defined by Act 381, Section 2 because the 321 W. Lafayette Blvd parcel is functionally obsolete. The building’s deterioration has left it dangerous and unable to be used to adequately perform the function for which it was intended due to a substantial loss in value. Further description of its eligibility is outlined below. x The current configurations do not meet market demand for the original commercial purpose of the building, nor do they meet market demand for its future mixed retail, commercial, and residential uses. x Mechanical and electrical systems must be replaced. x The elevators must be replaced. x Interior finishes have been stripped. x Life safety systems (smoke detectors, fire alarm systems, exit signs and fire sprinklers) must be replaced. x A new security system must be installed. x The windows must be replaced. x The entire roof must be replaced. 3

Exhibit A Former Free Press Building - 321 W. Lafayette Brownfield Redevelopment Plan

C. Summary of Eligible Activities and Description of Costs (Section 13 (1)(a),(b)) The “eligible activities” that are intended to be carried out at the Property are considered “eligible activities” as defined by Section 2 of Act 381, because they include lead and asbestos abatement, hazardous materials removal, interior and exterior demolition, and development and preparation of brownfield plan and a MSF Act 381 Work Plan. A summary of the eligible activities and the estimated cost of each eligible activity intended to be paid for with Tax Increment Revenues from the Property are shown in the table attached hereto as Attachment E. The eligible activities described in Attachment E are not exhaustive. Subject to the approval of DBRA staff in writing, additional eligible activities may be carried out at the Property, without requiring an amendment to this Plan, so long as such eligible activities are permitted by Act 381 and the performance of such eligible activities does not exceed the total costs stated in Attachment E. It is currently anticipated that construction will begin in the summer of 2017 and eligible activities will be completed within 24 months from the approval of the Brownfield Plan. It is anticipated that the construction will be completed in December 2020. Based on the existing Brownfield Michigan Business Tax Credit, the project must be completed and receive a temporary certificate of occupancy by December 14th, 2020 to receive the Credit. Unless otherwise agreed to in writing by the DBRA, all eligible activities will be completed within three (3) years after execution of the Reimbursement Agreement (as that term is defined below), however, any long-term monitoring or operation and maintenance activities or obligations that may be required will be performed in compliance with the terms of this Plan and any documents prepared pursuant to this Plan. The Developer desires to be reimbursed for the costs of eligible activities. Tax increment revenue generated by the Property will be captured by the DBRA and used to reimburse the cost of the eligible activities completed on the Property after approval of this Plan pursuant to the terms of a Reimbursement Agreement with the DBRA (the “Reimbursement Agreement”). The costs listed in Attachment E are estimated costs and may increase or decrease depending on the nature and extent of environmental contamination and other unknown conditions encountered on the Property. The actual cost of those eligible activities encompassed by this Plan that will qualify for reimbursement from tax increment revenues of the DBRA from the Property shall be governed by the terms of the Reimbursement Agreement. No costs of eligible activities will be qualified for reimbursement except to the extent permitted in accordance with the terms and conditions of the Reimbursement Agreement and Section 2 of Act 381. The Reimbursement Agreement and this Plan will dictate the total cost of eligible activities subject to payment, provided that the total cost of eligible activities subject to payment or reimbursement under the Reimbursement Agreement shall not exceed the estimated costs set forth in Attachment E. As long as the total costs are not exceeded, line item costs of eligible activities may be adjusted after the 4

Exhibit A Former Free Press Building - 321 W. Lafayette Brownfield Redevelopment Plan

date this Plan is approved by the governing body, to the extent the adjustments do not violate the terms of the approved MSF work plan. D. Estimate of Captured Taxable Value and Tax Increment Revenues (Section 13(1)(c)); Beginning Date of Capture of Tax Increment Revenues (Section (13)(1)(f); Impact of Tax Increment Financing on Taxing Jurisdictions (Section 13(1)(g)) This Plan anticipates the capture of tax increment revenues to reimburse the Developer for the costs of eligible activities under this Plan in accordance with the Reimbursement Agreement. A table of estimated tax increment revenues to be captured is attached to this Plan as Attachment F. Please note that all estimates are just that, and are subject to change depending on actual assessed value and changes in the millage rates. Tax increments are projected to be captured and applied to (i) reimbursement of eligible activity costs and payment of DBRA administrative and operating expenses, (ii) make deposits into the State Brownfield Revolving Fund (SBRF), and (iii) make deposits into the DBRAâ&#x20AC;&#x2122;s Local Site Remediation Revolving Fund (LSRRF)as follows:

School Operating Tax State Education Tax County (combined) HCMA City of Detroit RESA WCCC Library Wayne County Sp. (6 yrs) Total:

Reimbursement Costs

Admin

SBRF

LSRRF

$6,016,864 $1,012,326 $0 $0 $0 $0 $0 $0 $0

$0 $0 $0 $0 $0 $1,169,001 $0 $0 $0

$0 $1,012,326 $0 $0 $0 $0 $0 $0 $0

$0 $0 $0 $0 $0 $0 $0 $0 $0

$7,029,190

$1,169,001

$1,012,326

In addition, the following taxes are projected to be generated but not to be captured during the life of the Plan: City Debt School Debt School Judgment Wayne County Judgement DIA Zoo

$3,035,360 $4,386,748 $115,236 $329,377 $67,488 $33,744

Total: $7,967,953 In no event shall the duration of the Plan exceed thirty-five (35) years following the date of the governing bodyâ&#x20AC;&#x2122;s resolution approving the Plan, nor shall the duration of the tax 5

Exhibit A Former Free Press Building - 321 W. Lafayette Brownfield Redevelopment Plan

capture exceed the lesser of the period authorized under subsection (4) and (5) of Section 13 of Act 381 or 30 years. Further, in no event shall the beginning date of the capture of tax increment revenues be later than five (5) years after the date of the governing bodyâ&#x20AC;&#x2122;s resolution approving the Plan. E. Plan of Financing (Section 13(1)(d)); Maximum Amount of Indebtedness (Section 13(1)(e)) The eligible activities are to be financed solely by the Developer. The DBRA will reimburse the Developer for the cost of approved eligible activities, but only from tax increment revenues generated from the Property. No advances have been or shall be made by the City or the DBRA for the costs of eligible activities under this Plan. All reimbursements authorized under this Plan shall be governed by the Reimbursement Agreement. The inclusion of eligible activities and estimates of costs to be reimbursed in this Plan are intended to authorize the DBRA to fund such reimbursements and does not obligate the DBRA or the City to fund any reimbursement or to enter into the Reimbursement Agreement providing for the reimbursement of any costs for which tax increment revenues may be captured under this Plan, or which are permitted to be reimbursed under this Plan. The amount and source of any tax increment revenues that will be used for purposes authorized by this Plan, and the terms and conditions for such use and upon any reimbursement of the expenses permitted by the Plan, will be provided solely under the Reimbursement Agreement contemplated by this Plan. Unless otherwise agreed upon by the Developer, the DBRA, and the State of Michigan, the DBRA shall not incur any note or bonded indebtedness to finance the purposes of this Plan. Reimbursements under the Reimbursement Agreement shall not exceed the cost of Eligible Activities permitted under this Plan. F. Duration of Plan (Section 13(1)(f)) Unless otherwise agreed to in writing by the DBRA, all eligible activities shall be completed within three (3) years after approval of the Michigan Strategic Fund work plan, if applicable, or three (3) years after execution of the Reimbursement Agreement (as that term is defined below), however, any long-term monitoring or operation and maintenance activities or obligations that may be required will be performed in compliance with the terms of this Plan and any documents prepared pursuant to this Plan. Subject to Section 13(22) of Act 381, the beginning date and duration of capture of tax increment revenues for each eligible property shall occur in accordance with the TIF table described in Exhibit F. This Plan, or any subsequent amendment thereto, may be abolished or terminated in accordance with Section 16(8) of Act 381 in the event of any of the following: 6

Exhibit A Former Free Press Building - 321 W. Lafayette Brownfield Redevelopment Plan

a. The governing body may abolish this Plan (or any subsequent amendment thereto) when it finds that the purposes for which this Plan was established have been accomplished. b. The governing body may terminate this Plan (or any subsequent amendment thereto) if the project for which eligible activities were identified in this Plan (or any subsequent amendment thereto) fails to occur with respect to the eligible property for at least five (5) years following the date of the governing body resolution approving this Plan (or any subsequent amendment thereto). Notwithstanding anything in this subsection to the contrary, this Plan (or any subsequent amendment thereto) shall not be abolished or terminated until the principal and interest on bonds, if any, issued under Section 17 of Act 381 and all other obligations to which the tax increment revenues are pledged have been paid or funds sufficient to make the payment have been identified or segregated. G. Effective Date of Inclusion in Brownfield Plan The Property will become a part of this Plan on the date this Plan is approved by the governing body. H. Displacement/Relocation of Individuals on Eligible Property (Section 13(1)(i-l)) There are no persons or businesses residing on the eligible property and no occupied residences will be acquired or cleared, therefore there will be no displacement or relocation of persons or businesses under this Plan. I. Local Site Remediation Revolving Fund (â&#x20AC;&#x153;LSRRFâ&#x20AC;?) (Section 8; Section 13(1)(m)) The DBRA has established a Local Site Remediation Revolving Fund (LSRRF). The LSRRF will consist of all tax increment revenues authorized to be captured and deposited in the LSRRF, as specified in Section 13(5) of Act 381, under this Plan and any other plan of the DBRA. It may also include funds appropriated or otherwise made available from public or private sources. The amount of tax increment revenue authorized for capture and deposit in the LSRRF is estimated at $0. J. Brownfield Redevelopment Fund (Section 8a; Section 13(n)) The DBRA shall pay to the Department of Treasury at least once annually an amount equal to 3 mills of the taxes levied under the state education tax, 1993 PA 331, MCL 211.901 to 211.906, that are captured under this Plan for up to the first twenty five (25) years of the duration of capture of tax increment revenues for each eligible property included in this Plan. If the DBRA pays an amount equal to 3 mills of the taxes levied under the state education tax, 1993 PA 331, MCL 211.901 to 211.906, on a parcel of eligible property to the Department of Treasury under Section 13(21) of Act 381, the percentage of local taxes levied on that parcel and used to reimburse eligible activities for the Project under this Plan shall not exceed the percentage of local taxes levied on that parcel that would have been used to reimburse eligible activities for the Project under this Plan if the 3 mills of the taxes 7

Exhibit A Former Free Press Building - 321 W. Lafayette Brownfield Redevelopment Plan

levied under the state education tax, 1993 PA 331, MCL 211.901 to 211.906, on that parcel were not paid to the Department of Treasury under Section 13(21) of Act 381. K. Developer’s Obligations, Representations and Warrants The Developer and its affiliates shall comply with all applicable laws, ordinances, executive orders, and other regulations imposed by the City or any other properly constituted governmental authority with respect to the Property and shall develop the Property in accordance with this Plan. The Developer, at its sole cost and expense, shall be solely responsible for and shall fully comply with all applicable federal, state, and local relocation requirements in implementing this Plan. The Developer represents and warrants that a Phase I Environmental Site Assessment (“ESA”), and a Phase II ESA have been performed on the Property (“Environmental Documents”). Attached hereto as Attachment G is the City of Detroit’s Department of Buildings, Safety Engineering and Environmental acknowledgement of its receipt of the Environmental Documents. The Developer further represents and warrants that the Project does not and will not include a City of Detroit Land Bank Authority or State of Michigan Land Bank financing component. Except as otherwise agreed to by the DBRA, any breach of a representation or warranty contained in this Plan shall render the Plan invalid, subject to Developer’s reasonable opportunity to cure. #3708938 v9

III. ATTACHMENTS

ATTACHMENT A Site Map

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Capitol Park 11

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Campus Martius Park

Harmonie Park

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321 W Lafayette

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MICHIGAN AVE

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Grand Circus Park

Cadillac Sq

Hart Plaza

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DTE Energy Park*

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LOCATOR MAP

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DETROIT RIVER

ST NED AR WL

AT&T MICHIGAN HEADQUARTERS 34

* DEVELOPMENTS IN THE PIPELINE

MCNAMARA FEDERAL BUILDING

ROSA PARKS TRANSIT CENTER

WASHINGTON MIXED-USE DEVELOPMENT*

WESTIN BOOK CADILLAC

PENOBSCOT BUILDING HOLIDAY INN EXPRESS

US DISTRICT COURT COMERICA BANK BUILDING 27

25 26

THE DETROIT CLUB 211 W FORT

COMERICA BANK COBO HALL CONVENTION CENTER 23

CLICK-ON-IT DETROIT NEWS DOUBLE TREE + FORT SHELBY APTS 21

WALKER-ROEHRIG BUILDING THE ASHTON APARTMENTS* 19

615 W LAFAYETTE STREET

KAHN GARAGE 17

MICHIGAN AVENUE GARAGE HOWARD STREET LOT 15

DAVID STOTT BUILDING BOOK TOWER 13

1001 WOODWARD 12

SILVERS BUILDING

FEDERAL RESERVE BUILDING 9 10

CHRYSLER HOUSE FINANCIAL DISTRICT GARAGE 8

6 7

ALLY DETROIT CENTER CHASE TOWER

MONROE BLOCKS* FIRST NATIONAL BUILDING

2 3

ONE CAMPUS MARTIUS HUDSONâ&#x20AC;&#x2122;S SITE*

M-1 RAIL / STATION

PEOPLE MOVER / STATION

JACK CASINO PROPERTIES

BEDROCK PROPERTIES

PROPERTY OF FOCUS

KEY

ATTACHMENT B Legal Descriptions of Eligible Property to which the Plan Applies

EXHIBIT A - LEGAL DESCRIPTION Tax Id Number(s): Ward 02 Item No 000196 Land Situated in the City of Detroit in the County of Wayne in the State of MI Parcel 1: Lot(s) 2, 3, 4 and 5 of the "MILITARY RESERVE UNITED STATES GRANT TO THE CITY OF DETROIT", according to the plat thereof recorded in Liber 5 of Deeds, on Page 218 (also described as Liber 5, Page 218, City Records), Wayne County Records. Said property being situated on the South side of Lafayette Boulevard between Wayne and Cass Streets. Client Reference: 321 W Lafayette Blvd , Detroit, MI 48226-2703

ATTACHMENT C Project Description

PROJECT SUMMARY

Project Name:

Former Free Press Building

Project Location:

The Eligible Property is located at 321 W. Lafayette Blvd., Detroit Central Business District, Wayne County, MI

Type of Eligible Property: Functionally Obsolete Total Project Investment: ~$69,663,000 Eligible Activities:

Lead, Asbestos and Hazardous Materials abatement, Demolition, Brownfield Plan and Act 381 Work Plan.

Reimbursable Costs:

$7,029,190 (Estimated Eligible Activities) $1,169,001 (Estimated BRA Administrative Fees) $1,012,326 (Estimated State Revolving Loan Fund) $0 (Estimated LSRRF to BRA) $9,210,517

Total:

Years to Complete Payback:

30 Years

Base TV/New ITV Estimate:

$835,100/$12,000,000

Project Overview:

Pyramid Development CO., LLC is the project developer and owner of the Property. The Former Free Press Building redevelopment is planned as a historic rehabilitation to create a mixed-use development that will include first floor retail, second and third floor offices, with residential apartments on the remaining floors above. The 14-story Art Deco masterpiece housed the Detroit Free Press newspaper, including all associated operations, when it opened in 1925. The building, which also contained rentable retail and commercial space, was commissioned by Free Press owner E.D. Stair. Historic features include: exterior limestone carvings by New York sculptor Ulysses Ricci, advertising room murals depicting early Detroit history by Roy C. Gamble, to name a few. On July 23, 1998, the Free Press left its home of nearly 75 years - where much of the city’s best journalism had been created. Since the Free Press vacated the building it has fallen into a state of severe disrepair. A Brownfield Plan, an Act 381 Work Plan, and a Large Brownfield MBT Credit, titled “Detroit Free Press House” and “Free Press Plaza and Apartments” were approved on the Eligible Property in 2010. The Brownfield Plan, Act 381 Work Plan, and the Brownfield MBT Credit need to be terminated/amended to modify the following: legal descriptions,

scope of Project, Eligible Activities, and Eligible Investment that was included in the original approvals. The Developer is requesting the concurrent termination of the â&#x20AC;&#x153;Detroit Free Press Houseâ&#x20AC;? Brownfield Plan, approved in 2010, and the approval of the Former Free Press Building Brownfield Plan in 2017. It is anticipated that 196 temporary construction related jobs will be created and 10 permanent jobs will be created. This total job creation number does not include jobs created from tenants occupying the retail and commercial space this total new job creation number is ~325 permanent FTE. Other additional public financing incentives include seeking approval for a Neighborhood Enterprise Zone (NEZ) Tax Abatement, a MBT Brownfield Credit, and State and Federal Historic Credits. Construction is expected to begin in the 3rd Quarter of 2017.

ATTACHMENT D Supportive Letters

ATTACHMENT E Estimated Cost of Eligible Activities Table 1

Demolition

Asbestos Abatement/Hazardous Material Disposal

TOTAL NON-ENVIRONMENTAL Total Estimated Brownfield Activities

Hazardous material removal, PCB wood block flooring, PCB light balasts, mercury switches, etc. Total - Lead & Asbestos Abatement SUB TOTAL NON-ENVIRONMENTAL Brownfield Plan & Act 381 Work Plan Preparation Brownfield Plan Act 381 Work Plan Total - BP & Act 381 WP Preparation

Lead & Asbestos Survey Asbestos - Abatement throughout building Air Monitoring

Site Demolition Building (Selective) Demolition Total - Demolition

Activity

TABLE 1: ESTIMATED BROWNFIELD ACTIVITIES

7,004,190 7,029,190

10,000.00 15,000.00 25,000.00

$ $ $ $ $

895,100.00 5,930,986.00 7,004,190

55,000.00 4,835,886.00 145,000.00

121,701.00 951,503.00 1,073,204.00

$ $ $

Estimated Total Cost

ATTACHMENT F TIF Table

Total School

3.4643

DBRA Capturable Millage Total (RESA Only because of DDA)

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Tax ratio

$7,029,190

2025

$7,029,190

2026

$7,029,190

2027

$7,029,190

2028 11

$7,029,190

2031

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TOTAL

MDEQ

TOTAL

MSF

Brownfield plan eligible expense ratio

MSF

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Local Site Remediation Revolving Fund (LSRRF) school/local reimbursement breakdown

$310,586

$6,718,604

$310,586

$406,968

$7,029,190

2030

$318,786

$6,399,819

$318,786

$417,712

2032 15

2033

$327,190

$6,072,628

$327,190

$428,725

Former Free Press Building - Detroit, Michigan

2029 16

2034

$335,805

$5,736,824

$335,805

$440,013

2035

$344,635

$5,392,189

$344,635

$451,583

2036

$353,685

$5,038,504

$353,685

$463,443

2037

$4,675,541

$362,963

$475,599

$362,963

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$7,029,190

2024

VFKRRO 0$;

$7,029,190

2023

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$7,029,190

2022

Estimated Tax Increment Revenue Brownfield Plan / NEZ Tax Abatement

6FKRRO 7D[HV

Unreimbursed MDEQ Costs

Annual Amount to LSRRF

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2021

Reimbursed MDEQ Expenses

$7,029,190

2020

$7,029,190

2019

$7,029,190

Unreimbursed MSF Costs

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Reimbursed MSF Expenses

Adjusted Annual Total Incremental Taxes

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2018

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23.6128

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2017

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2038

$372,471

$4,303,070

$372,471

$488,058

2039

$382,218

$3,920,851

$382,218

$500,830

2040

$392,208

$3,528,643

$392,208

$513,920

2041

$402,449

$3,126,194

$402,449

$527,338

2042

$412,945

$2,713,250

$412,945

$541,091

2043

$423,703

$2,289,546

$423,703

$555,189

2044

$434,731

$1,854,816

$434,731

$569,638

2045

$446,034

$1,408,782

$446,034

$584,449

2046

$457,620

$951,162

$457,620

$599,630

2047

$469,495

$481,667

$469,495

$615,191

2048

$481,667

$631,140

$7,029,190

$1,012,326

$1,169,001

$9,210,517

$1,169,001

$8,041,516

$12,728,291

$33,744

$329,377

$67,488

$115,236

$4,386,748

$3,035,360

$1,093,583

$1,169,001

$72,415

$2,639,473

$1,562,593

$6,732,646

$2,024,653

$6,016,864

TOTALS

ATTACHMENT G Letter Determining Functional Obsolescence

ATTACHMENT H Incentives Chart

INCENTIVE INFORMATION CHART:

Project Type Mixed Use

Incentive Type Brownfield TIF/NEZ

Investment Amount $69,663,463

District District 6

Jobs Available Professional

Construction NonSkilled Professional Labor

Non-Skilled Labor

180

Professional

Post Construction NonSkilled Professional Labor

Non-Skilled Labor

1. What is the plan for hiring Detroiters? • Pyramid Development Co., LLC is committed to hiring as many Detroit based subcontractors as possible, and will work with our construction manager to comply with the City Executive Order (2016-1). Where possible, Detroit workers/trades will be given preferred status over other similar sub trades that are based outside the City. Post-construction, we will prioritize hiring Detroit based vendors to service the property. 2. Please give a detailed description of the jobs available as listed in the above chart, i.e: job type, job qualifications, etc. • Professional: o Iron Worker – 11 o Management – 2 o Laborer – 28 o Engineering – 2 o Mason – 3 o Superintendent – 2 o Operator – 2 o Purchasing – 2 o Painter – 10 o Estimating – 3 o Piper Fitter – 22 o Office Services – 2 o Plasterer – 3 o Finance – 1 o Plumber – 10 o Safety – 2 o Roofer – 15 o Total Professional – 16 o Sheet Metal Workers – 10 o Taper - 2 • Trades: o Total Trades: 180 o Asbestos Abatement – 15 o Bricklayer - 8 • Operations o Carpenter – 13 o Management - 3 o Cement Finisher – 3 o Leasing – 1 o Elevator Constructor – 5 o Maintenance – 4 o Electrician – 15 o Engineering – 2 o Insulator – 5 o Total Operations: 10

3. Will this development cause any relocation that will create new Detroit residents? • Yes, the project will include approximately 130 residential units. We anticipate the product type will draw residents from surrounding cities and suburbs. Furthermore, the new jobs created by the office and retail space in the project will likely draw new Detroit residents. 4. Has the developer reached out to any community groups to discuss the project and/or any potential jobs? • Thus far the developer has reached out to regulatory groups such as the DEGC, MEDC, and DDA. Additionally, Turner, our general contractor, has reached out to various trade unions to discuss the project. It is anticipated that through the approval process on the incentives that the developer will reach out to all available community groups. 5. When is construction slated to begin? • 2nd quarter 2017 6. What is the expected completion date of construction? • Core and Shell is expected to be complete the 4th quarter of 2018 • Tenant Improvement build-out projected completion is 2nd quarter 2019 *Please contact Linda Wesley at (313) 628-2993 or wesleyl@detroitmi.gov to schedule a date to attend the Skilled Trades Task Force.

National Examples of Community Benefits Agreements (CBAs) Source: The Partnership For Working Families (proud supporter of the Union United coalition) CBAs Currently in Effect Kingsbridge Armory CBA (New York City): In April 2013, the Kingsbridge Armory Redevelopment Alliance (KARA), a broad-based coalition of community organizations, entered into a comprehensive CBA regarding the redevelopment of the Kingsbridge Armory, in the Northwest Bronx. The project, an ice sports center, will include nine hockey rinks, a 5,000-seat arena and a 50,000-square-foot community space. Shortly after announcement of the CBA, the developer who had entered into the agreement was selected by the City of New York to build the project. Under the CBA, the developer agreed to: ● ● ● ● ● ● ● ● ●

a “wall to wall” living wage payment requirement, covering all workers within the project; a requirement that at least 25% of construction employees be targeted workers; a requirement that at least 51% of non-construction workers within the project be local workers, with first priority placement of underemployed residents of the immediate neighborhood; an $8,000,000 initial contribution, plus substantial ongoing contributions, to a coalition-controlled fund that may be used for specified community needs; a grant program for local businesses that employ large numbers of local workers; local contracting, M/WBE utilization, and local procurement requirements; extensive green building measures and community consultation on environmental issues; priority community access to the project’s athletic facilities; and formal structures for community-based oversight and enforcement of CBA commitments.

As the first strong, community-driven CBA in New York City, the Kingsbridge Armory CBA is a major step forward for the community benefits movement. Bayview-Hunters Point CBA (San Francisco, CA): In late May 2008, the San Francisco Labor Council, ACORN, and the San Francisco Organizing Project (SFOP) entered into a community benefits agreement regarding a major development project in the Bayview-Hunters Point neighborhood of San Francisco. Under the CBA, Lennar, a national housing developer, agreed that if the project moves forward, Lennar will: ● ensure that 32% of housing units built within the project are affordable, at a range of income levels; ● provide over $27 million in housing assistance funds targeted to neighborhood residents, including down payment assistance enabling additional units to be sold below market rates; ● provide over $8.5 million in job training funds targeted to neighborhood residents; ● ensure that all project employers participate in a state-of-the-art local hiring program; and ● ensure labor peace (i.e., card check / neutrality) in key industries within the project: grocery stores, hotels, and certain service contracts. Since all of these benefits are contained in the CBA, they are legally binding and enforceable by the Labor Council, ACORN, and SFOP. Hill District CBA (Pittsburgh, PA): In August 2008, Pittsburgh United joined with unions and several community groups in the Hill District neighborhood as the One Hill Coalition and recently entered into a CBA with the Sports and Exhibition Authority of Pittsburgh and Allegheny County, the County of

For information: Somerville Community Corporation, 617.776.5931, info@somervillecdc.org, www.somervillecdc.org

National Examples of Community Benefits Agreements (CBAs) Source: The Partnership For Working Families (proud supporter of the Union United coalition)

Allegheny, the City of Pittsburgh, the Urban Redevelopment Authority of Pittsburgh, and the developers and operators of the Pittsburgh Penguins’ sports arena, an anticipated arena hotel and adjacent redevelopment projects.The CBA provides for the following community benefits: ●

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the establishment of a steering committee with representatives appointed by City officials and the Coalition to oversee the creation of a Master Plan for the Hill District with extensive community participation. In addition, the developers agreed to quarterly meetings with community members on the development and construction of the new arena. $1,000,000 from both the City and the developers toward the local governments’ goal of securing a grocery store within the Hill District by the end of 2009.The local governments agreed to ensure that: (a) the grocery store operator uses the CareerLink/ the Hill District Resource Center to secure referrals of applicants that are Hill District residents for jobs created at the grocery store (b) the grocery store operator provides a range of healthful and affordable food and a full service pharmacy for Hill District residents; and (c) the grocery store is a full service grocery store that contains a minimum size of 25,000 square feet. creation and funding by the coalition and the local governments of a model first source referral center to provide or coordinate job preparation, counseling, training and supportive services, and to serve as a first source referral of qualified Hill District residents to employers connected with the project. The city and Allegheny County agreed to provide $150,000 a year for at least two years to start the program. targeted outreach to, and pre-bid meetings with and workshops for, local, minority and disadvantaged businesses related to business opportunities associated with the new arena. a formal review by the local government entities, under the oversight of the steering committee, of the services being provided to residents of the Hill District. the creation by the coalition and the developers of a Neighborhood Partnership Program (NPP), to be funded by the Pennsylvania Neighborhood Assistance Act, to address critical needs in the Hill District. assistance by the local governments and the coalition to the Pittsburgh YMCA in developing a multi-purpose center for youth, family and seniors in the Hill District community.

Gates Cherokee CBA (Denver, CO): In February of 2006, FRESC and the coalition members of the Campaign for Responsible Development secured a set of Community Benefit Achievements at the site of the former Gates Rubber Factory.These achievements were the result of more than three years of research, advocacy, organizing, leadership from the city and elected officials, and a process of dialogue with the private developer. The redevelopment project, undertaken by developer Cherokee Investment Partners, is a 50+ acre, $1 billion brownfield located on a light rail transit line and at the intersection of I-25 and Broadway in central Denver.(A brownfield is an abandoned, idled, or underused industrial or commercial facility where expansion or redevelopment is complicated by real or perceived environmental contamination.) Cherokee sought $126 million in public subsidies and taxing authority to support the clean-up and redevelopment of the site into a mixed-use, transit-oriented development that will include retail, offices, housing and open space. The CRD took the position that any project receiving that magnitude of public support should meet principles of responsible development and provide community benefits. For information: Somerville Community Corporation, 617.776.5931, info@somervillecdc.org, www.somervillecdc.org

National Examples of Community Benefits Agreements (CBAs) Source: The Partnership For Working Families (proud supporter of the Union United coalition)

Benefits include: ●

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landmark Affordable Housing Plan that not only exceeds the Inclusionary Housing Ordinance (IHO) in for-sale affordable units but also includes hundreds of affordable rental units targeting the income levels of Denver’s greatest need. construction of 150 affordable, for-sale units out of 1,500 total for-sale units (10%). construction of 200 low-income rental units out of 1,000 (20%). a commitment to conform with state, federal, and local handicapped accessibility standards, ensuring that all housing units are accessible or accessible-convertible. a unique agreement that excludes low-road big-box grocery stores like Super Wal-Mart who undercut existing good jobs in the grocery industry through poverty wages/inadequate health care. cooperation and participation with the neighborhood coalition Voluntary Cleanup Advisory Board (VCAB) that is monitoring the cleanup and communicating cleanup issues to affected neighbors. an unprecedented agreement to pay prevailing wages and benefits for every construction worker engaged in the publicly-funded construction of site infrastructure and maintenance of public spaces and facilities. an unprecedented agreement to extend Denver’s Living Wage Ordinance to include parking lot attendants and security personnel employed at the site’s public facilities. an enhanced “First Source” local hiring system that promotes recruitment of local residents to fill new positions and, for the first time, prioritizes immediately adjacent low-income neighborhoods.

Denver’s Office of Economic Development is now employing, for the first time, an explicit “public benefits framework” to outline the public financing package for this project. LAX CBA (Los Angeles, CA): In December of 2004, a broad coalition of community-based organizations and labor unions in Los Angeles entered into the largest CBA to date, addressing the Los Angeles International Airport’s $11 billion modernization plan. The CBA is a legally binding contract between the LAX Coalition for Economic, Environmental, and Educational Justice and the Los Angeles World Airports (LAWA), the governmental entity that operates LAX. The benefits obtained through this CBA campaign have been valued at half a billion dollars. The bulk of these benefits are set forth in the LAX CBA; the airport’s commitments to two area school districts are set forth in side agreements that were negotiated as part of the Coalition’s CBA campaign. The CBA has been hailed by both local policy-makers and the administrator of the Federal Aviation Administration as a model for future airport development nationally. The wide range of benefits include: ● ● ● ● ● ● ●

$15 million in job training funds for airport and aviation-related jobs; a local hiring program giving priority for LAX jobs to local residents and low-income and special needs individuals; funds for soundproofing affected schools and residences; retrofitting diesel construction vehicles and diesel vehicles operating on the tarmac, curbing dangerous air pollutants by up to 90%; electrifying airplane gates to eliminate pollution from jet engine idling; funds for studying the health impacts of airport operations on surrounding communities; and increased chances for local, minority, and women-owned businesses in the modernization of LAX.

The CBA has detailed monitoring and enforcement provisions, enabling Coalition members to ensure implementation of these benefits and to hold accountable the responsible parties. For information: Somerville Community Corporation, 617.776.5931, info@somervillecdc.org, www.somervillecdc.org

National Examples of Community Benefits Agreements (CBAs) Source: The Partnership For Working Families (proud supporter of the Union United coalition)

Hollywood and Vine CBA (Los Angeles, CA): The famous corner of Hollywood and Vine in Los Angeles is the site of a landmark $326 million, mixed-use, transit-oriented development. In 2004, a broad coalition of neighborhood, environmental, labor and faith-based groups negotiated a CBA with developer Gatehouse Capital to help the project spark the revitalization of the surrounding community. Among other things, the developer agreed to: ● ● ● ● ● ●

Strive to ensure that at least 70% of the on-site jobs pay a living wage Institute a first source hiring policy targeting local, low-income residents Provide $75,000 to job training programs Provide $15,000 to fund a health care access outreach program Include a union hotel Make 20% of the total rental apartment units affordable, with one-third affordable to households making 50% of the area median income (AMI), one-third affordable at 80% AMI, and one-third affordable at 120% AMI

CIM Project CBA (San Jose, CA): Working Partnerships USA (WPUSA) and a broad coalition of service employees’ unions, building trades, small businesses, environmental advocates, neighborhood groups, and child care advocates obtained the following commitments in the 2003 amended development agreement for the $140 million multi-use CIM Project in San Jose. The project is receiving a subsidy of about $40 million from San Jose’s redevelopment agency. ● ● ● ● ● ●

living wages for employees of the development’s parking garage; a project labor agreement for the construction of the project; increased affordable-housing requirements; guaranteed space in the development for small businesses, and a marketing program to make local small businesses aware of project opportunities; a commitment to work toward low-cost space for a child-care center; and a commitment to seek living wage jobs if a grocery store, department store, or hotel becomes part of the project.

Marlton Square CBA (Los Angeles, CA): In 2002, a coalition of community-based organizations entered into a CBA with the developer of the $123 million retail and housing Marlton Square redevelopment project in Los Angeles. The CBA included developer commitments to: ●

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dedicate space within the development for a community services facility, such as a community center, youth center, or job training center, according to needs determined through a community process; require employers in the development to hire through a first source hiring policy; and take specified steps to achieve a 70% living wage goal. The CBA was incorporated into the master agreement the developer signed with the city.

Staples Center CBA (Los Angeles, CA): In May of 2001, a broad coalition of labor and community-based organizations – the Figueroa Corridor Coalition for Economic Justice – negotiated a comprehensive CBA for the Los Angeles Sports and Entertainment District development, a large multipurpose project that will include a hotel, a 7,000-seat theater, a convention center expansion, a housing complex, and plazas for entertainment, restaurant, and retail businesses. Public subsidies for the project may run as high as $150 For information: Somerville Community Corporation, 617.776.5931, info@somervillecdc.org, www.somervillecdc.org

National Examples of Community Benefits Agreements (CBAs) Source: The Partnership For Working Families (proud supporter of the Union United coalition)

million. The CBA is usually referred to as the “Staples CBA” because the project is located adjacent to the Staples Center sports arena, which was developed by the same company. The Staples CBA was a tremendous achievement in several respects. It includes an unprecedented array of community benefits, including: ● ● ● ● ● ●

a developer-funded assessment of community park & recreation needs, and a $1 million commitment toward meeting those needs; a goal that 70% of the jobs created in the project will pay the City’s living wage, and consultation with the coalition on selection of tenants; a first source hiring program targeting job opportunities to low-income individuals and those displaced by the project; increased affordable housing requirements in the housing component of the project, and a commitment of seed money for other affordable housing projects; developer funding for a residential parking program for surrounding neighborhoods; and standards for responsible contracting and leasing decisions by the developer.

These many benefits reflect the very broad coalition that worked together to negotiate the CBA. The coalition, led in negotiations by Strategic Actions for a Just Economy, LAANE, and Coalition L.A., included over 30 different community groups and labor unions, plus hundreds of affected individuals. These successful negotiations demonstrate the power community groups possess when they work cooperatively and support each other’s agendas. Multi-Parcel Standards in Effect Atlanta Beltline (Atlanta, GA): In 2005, Georgia Stand-UP succeeded in attaching community benefits language to a City ordinance authorizing almost $2 billion in public funding over a 20-year period for transit-oriented development. The Atlanta BeltLine project involves the development of a 22-mile light rail transit loop encircling the city. The $2.8 billion project is expected to take 25 years and will include transitoriented design, including multi-use trails, as well as 1200 acres of green space, affordable housing, brownfield remediation, historic preservation, and public art. The 2005 city resolution that created the BeltLine Tax Allocation District (TAD) included several community benefits principles that will apply not to an individual project, but to every project within the Beltline redevelopment area. These include: ● ●

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Section 11- establishes the BeltLine Affordable Housing Trust Fund, created by setting aside 15% of the net proceeds of every TAD bond issued to develop 5,600 units of affordable housing Section 12- establishes an Economic Incentives Fund by setting aside a portion of each TAD bond issuance that will incentivize private development in targeted areas of the BeltLine that have historically experienced disinvestment, poverty and unemployment. Section 19- requires that all capital projects that receive TAD bond funding will have attached “certain community benefits principles, including but not limited to: prevailing wages for workers; a ‘first source’ hiring system to target job opportunities for residents of impacted low-income BeltLine neighborhoods; establishment and usage of apprenticeship and pre-apprenticeship programs for workers of impacted BeltLine neighborhoods.” Additionally, “a more complete list of such principles and a community benefit policy shall be developed with community input and included within the agreements to be approved by City Council.”

The Atlanta BeltLine project is an excellent example of how to apply CBA principles to large parcels of development, without losing the fundamental step of community involvement. For information: Somerville Community Corporation, 617.776.5931, info@somervillecdc.org, www.somervillecdc.org

TUESDAY , N OVEMBER 29, 2016

(2) Provision or approval by the City of tax abatements or other tax breaks that abate more than One Million Dollars ($1,000,000) of City taxes over the term of the abatement that inure directly to the Developer, but not including Neighborhood Enterprise Zone tax abatements. Tier Development Project means a development project in the City that does not qualify as a Tier 1 Project and is expected to incur the investment of Three Million Dollars ($3,000,000) or more, during the construction of facilities, or to begin or expand operations or renovate structures, where the Developer is negotiating public support for investment in one or both of the following forms: (1) Land transfers that have a cumulative market value of Three Hundred Thousand Dollars ($300,000) or more (as determined by the City Assessor or independent appraisal), without open bidding and priced below market rates; or (2) Tax abatements that abate more than Three Hundred Thousand Dollars ($300,000) of City taxes over the term of the abatement that inure directly to the Developer, but not including Neighborhood Enterprise Zone tax abatements. Sec. 14-12-3. Tier 1 Projects. (a) Community Engagement Process for Public Meeting. (1) Prior to submitting to City Council a request for approval of Land transfers or Tax abatements related to a Tier 1 Project, the Planning Director shall hold at least one public meeting in the Impact Area as defined in this Section. (2) The City Clerk shall forward notice of the public meeting via First Class Mail no less than 10 days before such meeting to all City of Detroit residents within three hundred radial feet of the Tier 1 Project. The notice shall include: a. The time, date and location of the public meeting; b. General information about the Tier 1 Project; c. A description of the Impact Area and the location of the Tier 1 Project; d. Information related to potential impacts of the Tier 1 Project and possible mitigation strategies; and (3) In addition to the notice requirement contained in Subsection (2) of this section, the Planning Director shall work with the District Council Member or Members representing the district or districts where the Tier 1 Project is located and at least one At-large Council Member to ensure that local residents, businesses, and organizations, especially those located in the Impact Area and those expected to be directly impacted by the Tier 1 project are informed of the public meeting. (4) At the public meeting, the Planning Director will present general information about the Tier 1 Project, discuss ways in which the Tier 1 Project is anticipated to impact the local community, and ways in which the Developer and the Planning Director plan to address or mitigate these impacts. (5) City Council shall appoint a liaison from the Legislative Policy Division to monitor the community engagement process and provide updates to the City Council. (6) The Planning Director shall provide notice to the liaison of all upcoming meetings and activities associated with the community engagement process related to the Tier 1 Project.

Ordinance 35-16, page 1

Ordinance 35-16, page 2

Page 6, The Detroit Legal News

NOTICE OF ENACTMENT OF ORDINANCE To: THE PEOPLE OF DETROIT, MICHI GAN. Through an initiative submitted by City Council resolution, the people of the City of Detroit adopted the following ordinance at the November 8, 2016 General Election: ORDINANCE NO. 35-16 CHAPTER 14. COMMUNITY DEVELOPMENT ARTICLE XII. COMMUNITY BENEFITS IT IS HEREBY ORDAINED BY THE PEOPLE OF THE CITY OF DETROIT THAT: Section 1. Chapter 14 of the 1984 Detroit City Code, Community Development, is amended by adding Article XII, Community Benefits, which consists of Sections 14-12-1 through 14-12-5, to read as follows: CHAPTER 14. COMMUNITY DEVELOPMENT ARTICLE XII. COMMUNITY BENEFITS Sec. 14-12-1. Purpose; Title. (a) The City is committed to community outreach and engagement that promotes transparency and accountability and ensures development projects in the City of Detroit benefit and promote economic growth and prosperity for all residents. (b) This article shall be known as the “Detroit Community Benefits Ordinance.” Sec. 14-12-2. Definitions. Community Benefits Provision means the agreement made by and between the Planning Director and the Developer which specifically addresses the issues raised by the NAC. Enforcement Committee means a committee led by the City’s Corporation Counsel and composed of representatives from the Planning and Development Department, Law Department, Human Rights Department, and other relevant City departments as determined by the Planning Director. Impact Area means an area determined by the Planning Director that includes all census tracts or census block groups in which the Tier 1 Project is located, and any other areas as determined by the Planning Director. NAC means the Neighborhood Advisory Council. Planning Director means the Director of the City of Detroit’s Planning and Development Department, or a member of the Planning Director’s staff working on behalf of the Planning Director. Tier 1 Development Project means a development project in the City that is expected to incur the investment of Seventy-five Million Dollars ($75,000,000) or more during the construction of facilities, or to begin or expand operations or renovate structures, where the developer of the project is negotiating public support for investment in one or both of the following forms: (1) Any transfer to the developer of City-owned land parcels that have a cumulative market value of One Million Dollars ($1,000,000) or more (as determined by the City Assessor or independent appraisal), without open bidding and priced below market rates (where allowed by law); or

TUESDAY , N OVEMBER 29, 2016

(2) Provision or approval by the City of tax abatements or other tax breaks that abate more than One Million Dollars ($1,000,000) of City taxes over the term of the abatement that inure directly to the Developer, but not including Neighborhood Enterprise Zone tax abatements. Tier Development Project means a development project in the City that does not qualify as a Tier 1 Project and is expected to incur the investment of Three Million Dollars ($3,000,000) or more, during the construction of facilities, or to begin or expand operations or renovate structures, where the Developer is negotiating public support for investment in one or both of the following forms: (1) Land transfers that have a cumulative market value of Three Hundred Thousand Dollars ($300,000) or more (as determined by the City Assessor or independent appraisal), without open bidding and priced below market rates; or (2) Tax abatements that abate more than Three Hundred Thousand Dollars ($300,000) of City taxes over the term of the abatement that inure directly to the Developer, but not including Neighborhood Enterprise Zone tax abatements. Sec. 14-12-3. Tier 1 Projects. (a) Community Engagement Process for Public Meeting. (1) Prior to submitting to City Council a request for approval of Land transfers or Tax abatements related to a Tier 1 Project, the Planning Director shall hold at least one public meeting in the Impact Area as defined in this Section. (2) The City Clerk shall forward notice of the public meeting via First Class Mail no less than 10 days before such meeting to all City of Detroit residents within three hundred radial feet of the Tier 1 Project. The notice shall include: a. The time, date and location of the public meeting; b. General information about the Tier 1 Project; c. A description of the Impact Area and the location of the Tier 1 Project; d. Information related to potential impacts of the Tier 1 Project and possible mitigation strategies; and (3) In addition to the notice requirement contained in Subsection (2) of this section, the Planning Director shall work with the District Council Member or Members representing the district or districts where the Tier 1 Project is located and at least one At-large Council Member to ensure that local residents, businesses, and organizations, especially those located in the Impact Area and those expected to be directly impacted by the Tier 1 project are informed of the public meeting. (4) At the public meeting, the Planning Director will present general information about the Tier 1 Project, discuss ways in which the Tier 1 Project is anticipated to impact the local community, and ways in which the Developer and the Planning Director plan to address or mitigate these impacts. (5) City Council shall appoint a liaison from the Legislative Policy Division to monitor the community engagement process and provide updates to the City Council. (6) The Planning Director shall provide notice to the liaison of all upcoming meetings and activities associated with the community engagement process related to the Tier 1 Project.

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Ordinance 35-16, page 1

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Ordinance 35-16, page 2

ORDINANCE NO. 35-16 CHAPTER 14 COMMUNITY DEVELOPMENT ARTICLE XII. COMMUNITY BENFEFITS COMMENTS AND ANNOTATIONS 1. Definitions: walk participants through starred terms (*) on Development Terms sheet 2. Current Tier 1 developments can be found here: (http://www.detroitmi.gov/Government/Departments-and-Agencies/Planning-andDevelopment-Department/Community-Benefits-Ordinance). Dan Gilbert’s Bedrock company is doing the Book Building and Tower, the Monroe Blocks, the Detroit Free Press renovation, and building on the Hudson’s Site. After 12 weeks of community benefits talks with residents across the four projects, there are only two community benefits in its various agreements with the city: (1) Bedrock would communicate with residents about construction-related activity; (2) Bedrock would support job training initiatives, something the company has been doing for years. Bedrock officials say while they didn’t make major changes to the agreement, the company did do other things, like add greenspace to its plans. 3. The public engagement process starts with a public meeting. This section lays out the public meeting timing and notice requirements. Important: a. WHO gets notification – residents living within 300 radial feet (about 3 blocks) of the project. b. WHAT is in the notice – date/time/location of public meeting and “general information” about the project, including ways the project is expected to effect the community and ways to address or mitigate/minimize the negative impacts. c. WHEN notice is given – “no less than 10 days before” the public meeting. Of note, the developer can’t request tax abatements or property transfers from Council until after the public meeting. The developer has incentive to see the tax abatements and/or property transfers as quickly as possible. 4. The community engagement process is monitored by someone for the city. Their job is to monitor, not help. 5. The rules creating the NAC are very general, but there are a handful of requirements a. Qualifications: (i) at least 18; (ii) lives in the Impact Area; and (iii) (nominated by resident of Impact Area). b. Selection of 9 members: From the nominated residents (i) 2 members will be selected by the community; (ii) 4 members selected by Planning Director; (iii) 1 member selected by the Council Member whose district contains the largest portion of the impact area; and (iv) 1 by each of the At-Large Council Members (currently Brenda Jones and Janae Ayers). c. If there aren’t enough people nominated to fill all the slots, the Planning Director can “seek out” additional nominees.

6. There is only one rule about how the NAC functions: All actions taken by the NAC must be done with the consent of a majority of members. a. No rules about structure or subcommittees b. No rules about removing a member c. No rules about adding a member d. No requirement that members attend meeting 7. NAC members are guaranteed 1 meeting with the Developer at this point. This meeting is for the purpose of learning more about the project and giving the NAC an opportunity to tell the Developer about community concerns. a. The CBO doesn’t say how the NAC is to learn about community concerns b. The CBO doesn’t give the NAC a right to meet again if the Developer alters plans (and that happens frequently) c. The NAC can get additional meetings at this point only if the Planning Director or Council (by 2/3rds vote) direct the Developer to meet with the NAC. 8. The Community Benefits Report is a document put together by the Planning Director containing the following information: a. How notice to organize the public meeting was provided; b. List of NAC members and how they were selected; c. Itemized list of NAC concerns; and d. How the Developer will address or those concerns or why those concerns won’t be addressed. 9. The Planning Director sends the Community Benefits Report to Council; the NAC may or may not get to see it before it’s submitted to Council. 10. The Community Benefits Report, which is the core of the community engagement process, is supposed to be sent to Council within 6 weeks of the date the notice of the first public meeting was set out. 11. Typically, developments are slowed down by while a developer seeks various approvals (zoning variances, permits) from Council. Under the CBO, not only are such requests expediated, the Planning Director is supposed to have them all approved at once. 12. The community engagement process is designed to result in a Developer Agreement between the Developer and the City. Any community benefits will be in a Community Benefits Provision that is part of the Developer Agreement. The Developer Agreement must contain the following: a. Enforcement mechanism and penalties the Developer could face for breaking the agreement including the return of City-provided benefits, revocation of land transfers, and fines. b. Procedures for community members to report violations to NAC. c. Number of years the developer will have to file an annual compliance report. d. Additional community meeting/engagement requirements 13. The Developer is only required contract with the City (the Developer Agreement) and only the City can enforce it. The Developer can contract with the community or a

representative of the community – such as a nonprofit or neighborhood organization – but only if such an agreement doesn’t pose a conflict of interests with the City. 14. The CBO creates an Enforcement Committee to make sure the Developer keeps promises. The Enforcement Committee is composed entirely of representatives of the City, including representatives from the Planning and Development Department, Law Department, Human Rights Department, and anyone else the Planning Director feels should be involved. 15. Twice a year, the Enforcement Committee will give Council and the NAC a Compliance Report. The CBO doesn’t specify what has to be in this report. 16. At least once per calendar year, the NAC is entitled to meet with the Developer to discuss the status of the project. This meeting is in addition to the 1 meeting required under Sec. 14-12-3(c)(1). (No. 7 on your annotated copy of the CBO.) 17. The NAC is required review complaints from the community that the Developer has violated the Community Benefits Provision. The NAC isn’t required to report the violations to the Enforcement Committee, but if it does so, it has to do so in writing if it wants the Enforcement Committee to act on them. 18. The Enforcement Committee has to investigate any violations referred to it in writing and is required to report back to the NAC in writing (“Findings”) telling: (a) whether the Committee’s investigation found the Developer actually violated the Community Development Provision; and (b) if so, how to enforce it or mitigate the violations. 19. From the day the Enforcement Committee gets written notice of a violation, it has 21 days to give the Findings to Council and the NAC. If it needs more time, the Enforcement Committee is supposed to let the NAC and Council know before the 21 days is up. If the NAC disagrees with the Findings or thinks the Enforcement Committee isn’t really trying to enforce the Community Benefits Provision, the NAC has to say so in a written notice to the Enforcement Comment. After getting that notice, the Enforcement Committee has 14 days to respond. If the NAC isn’t satisfied with the Enforcement Committee’s response, its only option is to petition the City Clerk to schedule a hearing on the issue in front of Council, where both the NAC and the Enforcement Committee will present their sides. 20. Council does not have to give the NAC a hearing. Council may, if it chooses, decide, based only on the written information submitted in the request for the hearing, that the Enforcement Committee has made reasonable efforts to ensure the Developer complies with the Community Benefits Provision. That is the only decision Council can make without a hearing. a. If Council determines the Enforcement Committee made reasonable efforts to ensure compliance, they have to notify the NAC. b. If Council determines the Enforcement Committee made did NOT make reasonable efforts to ensure compliance, Council is required to give the Enforcement Committee specific steps to do so. The Enforcement Committee must then give Council and the NAC monthly updates on compliance actions until Council adopts a resolution declaring the Developer is in compliance or has taken action to mitigate violations. Council can hold additional hearings if necessary.

DETROIT PISTONS PERFORMANCE FACILITY AND HEADQUARTERS COMMUNITY BENEFITS AGREEMENT REPORT CITY OF DETROIT PLANNING AND DEVELOPMENT DEPARTMENT MAURICE COX – DIRECTOR OF PLANNING R. STEVEN LEWIS – CENTRAL DISTRICT PLANNING DIRECTOR

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TABLE OF CONTENTS SECTION A B C D E F 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

DESCRIPTION INTRODUCTION COMMUNITY BENEFITS ORDINANCE PUBLIC NOTICE NEIGHBORHOOD ADVISORY COUNCIL (NAC)/ DEVELOPER/ CITY OFFICIALS MEETINGS NAC PROPOSED COMMUNITY BENEFITS AND DEVELOPER RESPONSE APPENDIX COMMUNITY BENEFITS ORDINANCE, DETROIT LEGAL NEWS, NOVEMBER 29, 2016 PROJECT DESCRIPTION CENSUS TRACT AND IMPACT ZONE MARCH 20, 2017 FLIER APRIL 12, 2017 FLIER E-MAIL – PISTONS NAC – NAC DR. KEN HARRIS E-MAIL – ANNOUNCEMENT OF CBO WEBSITE E-MAIL – RECAP TO NAC E-MAIL – RECAP TO LPD E-MAIL – APRIL 27 NOTICE TO NAC – ANNOUNCEMENT ON WEBSITE APRIL 27, 2017 POSTING – PRINT VERSION E-MAIL – NAC PROPOSED COMMUNITY BENEFITS LIST MARCH 20, 2017 PRESENTATION APRIL 12, 2017 PRESENTATION APRIL 27, 2017 – CBO NAC RESPONSE MEMORANDUM OF UNDERSTANDING

PAGE NUMBER 5 7 9 11 13 21 ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT

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A. INTRODUCTION Palace Sports and Entertainment (PSE), developers on behalf of the Detroit Pistons, as part of their return to the City and establishment of their home court at the Little Caesars Arena, have also agreed to move the franchise’s headquarters and practice facility from Auburn Hills, Michigan to the New Center area of Detroit. The project will be connected to another new facility by Henry Ford Health System that will specialize in sports medicine and compliment, programmatically, the headquarters and practice facility to take advantage of nearby medical facilities in training and rehabilitation by the Pistons players; while being in a distinct building. The practice and headquarters facility will be located on a site at 690 Amsterdam Street between Second and Third Avenues.1 The project will be a mixed-use facility that is expected to cost approximately $60 million with an 18-month timetable for construction. Per the Memorandum of Understanding between the Pistons and the City, the Pistons committed to “follow the community engagement requirements associated with the City of Detroit’s community benefits ordinance, even if the construction of the Headquarters does not qualify as a ‘Tier 1 Project’ under the ordinance.” PSE, on behalf of the Pistons, has agreed to voluntarily engage with the community by following the community engagement portions of the Tier 1 section of the Community Benefits Ordinance (CBO) process to determine the outstanding issues related to the project; and the best means of mitigating the concerns pertaining directly to the project. Because the voluntary agreement of the developer is limited to following the community engagement process (as described below), the City will include appropriate enforcement remedies in the agreement to be signed by the City and the developer.

See APPENDIX 02 – PROJECT DESCRIPTION

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B. COMMUNITY BENEFITS ORDINANCE – TIER 1 2 SUBMISSION OF CBO REPORT Community Benefits Ordinance and Neighborhood Advisory Council Process 3 1) A project is identified as a Tier I project, having a minimum development cost of $75,000,000 with public investment in the following forms: a. Transfer of land to the developer of City-owned land parcels that have a cumulative market value of $1,000,000 or more as determined by the city assessor or independent appraisal, without open bidding and priced below market rates (where allowed by law); or b. Provision or approval by the City of tax abatements or other tax breaks that abate more than $1,000,000 of city taxes over the term of the abatement that inure directly to the developer; but not including Neighborhood Enterprise Zone tax abatements. 2) The Director of Planning, or their representative, will schedule a meeting within a defined impact area adjacent to the project within 300 feet; or as defined by the Planning Department to achieve critical mass. a. A representative of the Legislative Policy Division is appointed by City Council to monitor a project’s CBO process. 4 b. Public Notice of the of the first meeting is issued through the City Clerk’s office at least ten (10) days ahead of the scheduled meeting to residents within the impact area in which the project is designated. c. Notice is also given to the Legislative Policy Division, District Council Member, and the At-Large Council Members for community outreach and notification. d. The Notice includes: general description of the project and its location, time, date, and location of the public meeting. 3) The Neighborhood Advisory Council consists of nine (9) members, elected and appointed, chosen to identify impacts of a project on a community and seek ways to address them with the developer. a. Two (2) NAC members are elected at the first public meeting. b. One (1) is nominated by the District Council Member c. One (1) each is nominated by the two (2) At-Large Council Members d. Four (4) are nominated by the Planning & Development Department e. All members of the NAC, elected and appointed are subject to verification of address with the designated impact area. 2

The Pistons Practice Facility and Headquarters is a volunteer community engagement effort as the project does not qualify as a Tier 1 project under the CBO. 3 See APPENDIX 01 - Ordinance 35-16, The Detroit Legal News, Tuesday, November 29, 2017, page 6 4 Kimani Jeffrey was appointed the LPD representative for the Pistons Practice Facility and Headquarters CBO process on April 4, 2017 by the city council.

4) The Director of Planning facilitates at least one meeting between the NAC and the developer to allow more details about the project to be presented to the NAC and to have the developer more aware of the concerns raised by the NAC. a. If more meetings are required, the city council, by 2/3 vote of members present or the planning director may hold additional meetings with the NAC and the developer. b. The developer shall be required to meet as directed. 5) The Director of Planning issues a report to City Council describing the process of the CBO and how the developer will mitigate the concerns of the NAC. The intent is to have a report completed within six (6) weeks of public notice of the initial meeting, unless circumstances warrant otherwise, to expedite the community engagement process. The report will contain the following: a. Information on how notice was provided to the public b. List of NAC members and their selection/ or election c. Method of addressing each of the concerns by the NAC presented to the developer, or which concerns were not addressed.

C. PUBLIC NOTICE AND IMPACT AREA The first public meeting for the Detroit Pistons Practice Facility and Headquarters was held on March 20, 2017. The meeting was sponsored by Henry Ford Health System (HFHS) and was seated in HFHS’ Gilmore Center at One Ford Place, Detroit MI 48202. The notice that is attached to this report was mailed to approximately 900 residents within Census Tract 5339 – the impact area. 5 Sixty-eight (68), assumed residents of Detroit and the impact area were recorded as attending the first meeting. Thirty-one (31) residents were recorded living in the census tract area. Four (4) were recorded as living in the impact area (the area closest to the proposed project within 300 feet or as defined by the planning department). Additionally, attendees were notified of subsequent NAC meetings on April 12th, April 17th, and April 24th (later moved to April 27th to accommodate Council member Sheffield). Public Notice of the meeting (as required by law) was mailed out to neighbors by the City Clerk’s office on March 10, 2017, via a flyer developed in the Planning & Development Department. There was also assistance in community outreach from the office of District 5 Council Member Mary Sheffield, Council President Brenda jones, and At-Large Council Member Janee Ayres. Sign-in information from the March 20th and April 12th meetings was distributed to the full NAC on April 13, 2017. There was a delay in obtaining the information from the March 20th meeting from the Department of Neighborhoods (DON); hence the late distribution of sign-in information from that date. The Planning and Development Department launched a CBO website, with the Pistons Practice Facility and Headquarters as the first posting. Notice was sent to the NAC and representatives of the City Council, LPD, and the DON. 6 The link is as follows: http://www.detroitmi.gov/Government/Departments-and-Agencies/Planning-and-DevelopmentDepartment/Community-Benefits-Ordinance

5 6

See Figure 2 – Impact Areas See APPENDIX 07

Impact Areas

FIGURE 2 â&#x20AC;&#x201C; IMPACT AREAS

D. NEIGHBORHOOD ADVISORY COUNCIL/ DEVELOPER/ CITY OFFICIALS Neighborhood Advisory Council NAME

ELECTED/ APPOINTED

DATE

Dr. Ken Harris

Elected By Impact Area Residents

March 20, 2017

Kathryn Robertson

Elected By Impact Area Residents

March 20, 2017

Sarah James

Appointed by Dist. 5 CM Mary Sheffield

March 21, 2017

Lynore Foster

Appointed by At-Large CM Janee Ayres

March 27, 2017

Diane McMillan

Appointed by CP Brenda Jones

March 29, 2017

Monique Dooley

Appointed by PDD Dir. Maurice Cox

March 30, 2017

Amy Rencher

Appointed by PDD Dir. Maurice Cox

March 30, 2017

Ezza Brandon

Appointed by PDD Dir. Maurice Cox

March 30, 2017

Randal Brown

Appointed by PDD Dir. Maurice Cox

March 30, 2017

Development Team

Palace Sports and Entertainment Representatives: Awenate Cobbina, Richard Haddad City of Detroit Officials

Planning: Maurice D. Cox, R. Steven Lewis, John F. Sivills III Jobs and Economy Team: Jed Howbert, Matthew Walters Department of Neighborhoods: Vince Keenan, Kya Robertson Legislative Policy Division Representative: Kimani Jeffrey City Council: Mary Sheffield – District 5 Council Member, Janee Ayres – At-Large Council Member, Brenda Jones – Council president

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E. MEETINGS March 20, 2017 The first meeting of the CBO process was held at Henry Ford Health System, One Ford Place, Detroit MI 48202, at the Gilmore Center (changed from room 1C1OO as advertised). The purpose of this meeting was: 1) To allow the developers to present the project to the public; 2) To elect two (2) NAC members; 3) To get feedback from the general public on impacts of the facility in their neighborhood. 1) R. Steven Lewis from PDD opened the meeting with introductions of the development team and staff. 2) District 5 CM Mary Sheffield gave remarks on her overall support of the project. 3) DON District 5 Manager, Vince Keenan gave an overview of the election process. 4) Awenate Cobbina, R. Steven Lewis, Meagan Dunn, and DON District 5 Manager, Vince Keenan, opened the presentation 7 of the proposed new facility and potential issues, Henry Ford’s adjoining destination rehabilitation center, the creation of the impact area and how the election was to be conducted. Issues Raised by the Community Present The community raised a number of issues – some directly related to the impact of the facility; and some that were not directly related but based on precedent development. Below are the principle issues raised in the forum: 1) Concern expressed about access the community will have to the facility once it is open; vis-à-vis open basketball courts and access to players 2) Concern expressed by the community about the amount of parking lots in the proposed development (reference to the current ODM development) 3) Question concerning Fitness Works and if it will be included in the current program. 4) Concern expressed about mental health, assuming the facility becomes a draw to the general populace. 5) Concern expressed about the amount of tax abatements being offered in the deal to bring the practice facility and the headquarters to Detroit. Election of NAC Members Green, Orange (Red), and White cards were distributed amongst the gathered room. Green cards were given to all residents in attendance residing in the impact area. Orange cards were given to those living closest to the site as defined by the impact area. White Cards were given to those outside of the impact area; but, who were in attendance.

See APPENDIX 13 – March 20, 2017 Presentation

Residents living in the impact area were instructed to nominate themselves to serve on the NAC. Each candidate was required to provide proof of residence in the impact area; as well as present the case for their candidacy to serve on the council. Their names and general description of community activity are as follows: Diane McMillan – Elected precinct delegate, educator James O’Leary – educator (taught at Cass) Kathryn Robertson – serves on various neighborhood boards, communications/ community organizer Amy Rencher – Techtown, alumnus of City Year (maintains mentoring relationship) Dr. Ken Harris – President of the Michigan Black Chamber of Commerce Sarah James – past Palmer Park Board Member, Community Activist Mildred Robins – Member W. Grand Blvd. Collaborative, installed reading garden at library Votes were tallied from the residents living in the defined impact area. Dr. Ken Harris and Kathryn Robertson were elected to serve on the council. After the election, two others from the impact area offered their services on the NAC board via appointment. They are: Cherise Knight – a retired Wayne County Sherriff’s Commander; and Karen Clairmont Johnson – a 33 year veteran of General Motors. Their names were entered in a pool of those who were considered for appointment.

April 12, 2017 The second meeting of the CBO process was held at Henry Ford Health System, One Ford Place, Detroit MI 48202 - Suite 1B. The purpose of this meeting was: 1) An introduction to, and seating of the full NAC (Dr. Ken Harris participated via phone as he was traveling); 2) To present the project to board members and the general public from the impact area who may not have been at the meeting (3) For the developer to gather feedback from the NAC and the community on project impacts. An agenda was prepared and distributed to NAC members, the public, and the respective offices of City Council members. Officially, thirty-four people signed the sign-insheet; however the attendance was greater. 1) R. Steven Lewis opened the meeting to announce the order of presentation, and acknowledge the representative City Council members. 2) PDD presented the newly seated NAC and information packet including the agenda, meeting notice, slide show presentation, and a copy of the Community Benefits Ordinance. 3) Awenate Cobbina presented the Pistons Practice and Headquarters facility, along with an overview of the community engagement the Pistons have participated in during the last two years. 4) John Sivills presented the Planning Department’s overview of the CBO and the roles and responsibility of NAC members; as well as future meetings to come. The meeting listed for April 17th was considered optional should the NAC require another meeting.8 5) This was the first meeting in attendance by the LDP representative, Kimani Jeffrey, as the representative was chosen after the first meeting. Issues Raised by the Community Present The NAC, community, and the City Council members present raised a number of issues – some directly related to the impact of the facility; and some that were not directly related, but based on precedent development. Below are the principle issues raised in forum: 1) Accessibility - Practice Facility being available for rent, and to youth groups and organizations. • Developer Response – It will be evaluated. There was no commitment on behalf of the Pistons due to coordinating with basketball seasons far out as well as not having a definitive program. 2) Community Return on Investment - The amount budgeted for community engagement versus the amount in tax abatements is minuscule. 3) Employment and Contracting - The ability to match or better the required 51% Detroit resident workforce commitment based on the precedent at Little Caesars Area. Strong preference for union labor. Connecting labor training and apprenticeship organizations to opportunities generated by the project. 8

Refer to APPENDIX 14 – April 12, 2017 Presentation

•

Developer Response – Pistons will work with City Council members to achieve the hiring and contracting goals. The Pistons are also open to suggestions and ideas to avoid fines as have been occurring with the construction of the Little Caesars Arena. 4) Fitness Works - Community/CM Sheffield desire to have Fitness Works to remain a part of the program. 5) Community Advocacy - Council Member Sheffield statement that the NAC needs to be true advocates for the community regarding this project; and that she will send a list of items to the NAC for consideration. 6) Internships - Desire expressed for year-around internships with the Pistons • Developer Response – Currently the organization does seasonal internships; but can explore year-around. 7) Tax Abatement Process - Concern expressed about the amount of tax abatements being offered in the deal to bring the practice facility and the headquarters to Detroit. • Developer Response – The tax abatement is subject to City Council approval. If approved, taxes are at a lower level for 10 years; after which the Pistons will pay full tax. 8) Parking - Concern was expressed about any parking that may be lost during and or after construction on the parking lot site. • Developer Response – A parking deck will contain 380-400 spaces for HFHS staff and visitors and Pistons staff and visitors. We expect street parking to be equal to the number of current spaces. 9) CBO Process - Concern expressed about the process and if it is being rushed. (Linda Campbell). • Department of Neighborhoods’ Response – The ordinance contemplated the report being issued within 6 weeks, if possible. 10) Potential Tax Increases - There were concerns expressed about the contribution the Pistons were making to improve the basketball courts ($2.5 million/ six-years) and whether or not if the city is getting its full investment considering the abatements asked for, regarding this facility. This may garner tax hikes. • Department of Neighborhood’s Response - Tax rates in Michigan are not affected by the abatement or the donation. The NAC chose to exercise the optional April 17th meeting to take place in two components: 1. 2. 3. 4.

An executive session of the full NAC lasting for an hour, immediately followed by; A public session allowing for public commentary. PDD informed the NAC of its intent to attend and observe the meeting. The developer was asked not to attend either session.

April 17, 2017 The third meeting of the CBO process was held at Henry Ford Health System, One Ford Place, Detroit MI 48202, room 1C100, from 5-7pm. The purpose of this meeting was: 1) To convene an executive session of the NAC for one (1) hour to discuss community issues to be considered for mitigation; 2) To present a list to an open meeting for consideration; before sending the list on for consideration by PDD and the developer. An agenda was not prepared for this meeting. Officially, two people from the public were in attendance in the audience; excluding Council Member Sheffield and her staff. PDD attended the meeting to observe since the process is new to the department and the community at large. The NAC discussed concerns that needed to be considered for mitigation; and further categorized the concerns within the impact area and concerns that could be considered by the developer that were not a direct impact of the project. PDD answered some technical questions as it pertained to the CBO from the NAC and offered some technical advice, as warranted. PDD informed the NAC of the update in the schedule, which included the following: Submission of the NAC Proposed Community Benefits List to the developer by close of business on April 19, 2017; and a change in the next public meeting from April 24 to the 26th (later updated to April 27th to accommodate Council Member Mary Sheffieldâ&#x20AC;&#x2122;s April 26th event). The resulting NAC Proposed Community Benefits list will stand as record of the work for this date; in addition to the above accounting of the meeting. 9

See Section E. NAC PROPOSED COMMUNITY BENEFITS AND DEVELOPER RESPONSE

April 27, 2017 The fourth meeting of the CBO process was held at Henry Ford Health System, One Ford Place, Detroit MI 48202, Gilmore Center, from 5:30-7pm. The purpose of this meeting was: 1) To publicly present the NAC’s Proposed Community Benefits; and 2) To present the developer’s response. 10 There was a posting of the event on the PDD’s CBO website to note time, place, and day of this event to the public. The NAC and City Council were charged to inform their respective constituencies. An agenda was prepared for this meeting. Officially, 15 people signed the sign-in sheet, although in observance there were more people present, including City staff, City Council staff, and Council Member Sheffield. The following NAC members were present for all or part of the presentation: Dr. Ken Harris, Kathryn Robertson, Diane McMillian, Lynore Foster, Randal Brown, Monique Dooley, and Sarah James. There was a departure from the prepared agenda to discuss the NAC’s role going forward in the CBO process. Because the project does not qualify as a Tier 1 project under the CBO and the developer is instead voluntarily participating in the CBO’s community engagement process, enforcement will occur through the City departments and agencies responsible for the respective issues and mitigation items. The future role of the NAC for this project will continue with direct engagement with PSE, specifically to help determine the public interaction with the new facility and to help HFHS in discussions over Fitness Works. NAC members will also have the opportunity to participate in the public approvals process through City Council to lend support or express concern on the direction of this project and the content of the developments agreement. Issues Raised by the Community Present The NAC, community, and the Council Member present raised a number of issues – some directly related to the developer’s response to the NAC’s Proposed Community Benefits List and the timeline and transition of the NAC’s work going forward. 1) Employment and Diversity – Is the one-time contribution to the Detroit Employment Solutions Corporation (DESC) specific to this project. Is there a supplier diversity program? What are the Pistons goals versus contractual obligations regarding the employment? • Developer Response – The contribution is not specific to the Practice Facility project and the DESC can distribute the money as they wish. There is not a supplier diversity program. The Pistons committed to comply with 51% Detroit employment and will use best efforts to use 30% Detroit contractors.

See section E. NAC PROPOSED COMMUNITY BENEFITS AND DEVELOPER RESPONSE

•

Questioner’s Statement – Organization can help assist the Pistons with a diversity program; and the developers need to be concerned with the long-term effect on the community and economy. Detroit Public Community Schools District Partnership – Specifically address the items #2 and #5 from the proposed mitigation list.12 • Developer Response – Item #2 is not feasible; #5 – City departments and agencies for the enforcement of all of the mitigation items. NAC Engagement – Recommendation that the NAC stay engaged with the report going forward • PDD Response - The report is issued to the NAC; but not voted on by the NAC. It is also not voted on by City Council. It is presented to them for consideration in finalizing a development agreement and in conjunction with other items related to the Pistons move. Memorandum of Understanding – There was concern expressed by an NAC member that having the MOU readily available could have altered what to offer as a community benefit, given the perception that has been presented by the developer that some of the items were covered in the MOU. • Response – The developer presented a summary of the community benefits items in the MOU at the April 27th meeting and three other NAC members stated that they had access to the MOU online, since it is a matter of public record. 13 Grouping of Projects – There was concern with how the projects (HFHS and Pistons) were classified as separate, when marketed as a joint project. • Developer Response - The projects have complimentary programs; however, physically the buildings can be developed at different times. • HFHS Response - Should the developers decide not to relocate to Detroit, the HFHS facility will continue Fitness Works – Still concern regarding the future of Fitness Works. • HFHS Response - HFHS is in talks about the future of Fitness Works in the future facility since HFHS is contractually tied to Fitness Works. • Developer Response - The Detroit Pistons have no control on the outcome of the Fitness Works as it is not a part of their building program. Signage – Concern expressed about the “Ford Field Effect”, regarding signage and light pollution. • The LPD representative noted the new signage ordinance goes before City Council within two (2) months to accommodate changes in technology since the last update. • If the ordinance is not complete, the design will have to work with current law.

To conclude the CBO’s community engagement process, the developer has engaged with PDD to address and mitigate any negative impacts that the project may have on the community and 12

See section E. NAC PROPOSED COMMUNITY BENEFITS AND DEVELOPER RESPONSE Planning & Development Department obtained its copy online on April 17, 2017 and from the developer on April 18, 2017. 13

local residents. As a result of that engagement, PSE has proposed the following responses and mitigations to the NACâ&#x20AC;&#x2122;s requests and PDD has accepted those responses and mitigation measures.

F. NAC PROPOSED COMMUNITY BENEFITS AND DEVELOPER RESPONSE COMMUNITY BENEFIT FACILITY ACCESS BY THE COMMUNITY (contained in the development agreement)

NAC’S ADDITIONAL REQUESTS/ DETAILS 1. Identify the number of practices per year that City residents can attend, with a focus on the Impact Area 2. Identify the number of clinics and other programing that City residents can have at the Facility 3. Identify the number of years for this commitment 4. Provide an annual report on the Pistons’ efforts to the Enforcement Committee

PISTONS’ RESPONSE PS&E commits to holding at least one practice per season that is open to the public and free of admission costs in the City. Additionally, PS&E commits to host at least 2 youth basketball or related (e.g., “PistonsFit”) programs, camps or clinics (including coaching clinics) per year at a basketball facility (or facilities) in Detroit for at least a period of 6 years. Lastly, PS&E intends to include public-facing retail on the ground level of the facility.

COMMUNITY BENEFIT PARKING AND STREET CLOSURES (contained in the development agreement)

NAC’S ADDITIONAL REQUESTS/ DETAILS

1. Provide general public access to the parking structure at an hourly and daily rate 2. Ensure that street parking would not be impacted by the Pistons Practice Facility 3. Ensure that neighboring buildings will continue to have access to their lots, during and postconstruction, including the loft building across the street from the Facility 4. Ensure that Facility activities are scheduled to limit its impact on rush hour traffic and school pick-up and dropoff times in the Impact Area 5. Notify businesses, residents and schools of temporary and permanent street closures in a timely manner

PISTONS’ RESPONSE PS&E and Henry Ford Health System are designing a parking structure that will replace the surface lot that HFHS currently uses and accommodate all anticipated PSE employees and visitors. As such, the neighborhood’s post-construction parking situation will not be negatively impacted by the Practice Facility. No permanent street closures are anticipated and we will work with the city to notify residents of temporary street closures in the area, and to otherwise minimize these impacts. PS&E realizes that the development of the Practice Facility may displace parking for residents of the Lofts at New Amsterdam. Our understanding is that HFHS has committed to finding convenient replacement parking nearby on HFHS owned land.

COMMUNITY BENEFIT LIGHTING (contained in the development agreement)

FITNESS WORKS 14

DETROIT PUBLIC SCHOOLS COMMUNITY DISTRICT PARTNERSHIP (contained in the development agreement)

NAC’S ADDITIONAL REQUESTS/ DETAILS

1. Ensure that the Facility will minimize light pollution (i.e. Ford Field blue roof) in the Impact Area 1. Provide plan and commitment to a.address the potential closure of the facility and/or b. partner with Fitness Works 1. Ensure engagement with all DPSCD schools 2. Extend Pistons’ buying power to purchase basketball equipment for schools (basketball whistles, etc.) 3. Provide the current state of scholarship programs going to City residents 4. Award scholarships to DPSCD high school graduates 5. Provide an annual report on the Pistons’ efforts to the Enforcement Committee

PISTONS’ RESPONSE PS&E will cooperate with the City to comply with all local rules and regulations regarding exterior lighting or signage. The Pistons do not have anything to do with Fitness Works. Our understanding is that HFHS is working with the owners of Fitness Works with respect to this issue. As the Detroit Public Schools continues with their transition, the Detroit Pistons and the Detroit Pistons Foundation will continue to engage with Detroit Public Schools and its students through our grantees and non-profit partners, particularly City Year who the Pistons are helping to expand from 7 to 15 schools over the next two years. The Pistons also host (for the 12th year) an annual scholarship competition for Detroit and Flint public school students featuring $50,000 in college scholarships.

PS&E has no control over the fate of Fitness Works as it was never in their program. This is to be addressed with HFHS as it is in their current program.

COMMUNITY BENEFIT OTHER REQUEST (contained in the development agreement)

60 OUTDOOR BASKETBALL COURTS - $2.5 million over 6 years (contained in the document codifying the MOU between the City and PSE)

NAC’S ADDITIONAL REQUESTS/ DETAILS

PISTONS’ RESPONSE

1. Provide a comparison of the total amount of tax incentives the Pistons expect to receive to the amount the Pistons expect to spend on Community Benefits

The DEGC conducted an economic impact analysis that determined that the City will receive net benefits of over $9M in the next 10 years, even after accounting for any/all tax abatements and incentives that will benefit the Pistons.

1. Remove limitation on using the funds for outdoor basketball courts 2. Increase amount 3. Allow the City’s Rec Department to determine how the funds are allocated and location of the courts, with a focus on the Impact Area a. Joseph Walker Williams Center, Delores Bennett Playground, Burns-Lambert Park and Coleman Young Rec Center should be on the list 4. Provide plan to maintain the courts, including separate funding to maintain the Court 5. Consider indoor courts 6. Provide lighting to ensure safety of users 7. Provide a timeline for completing all 60 courts 8. Invite NAC members to the grand opening of the Courts Provide an annual report on the Pistons’ efforts to the Enforcement Committee

Per our previous agreements (MOUs) with the DDA and City, PS&E committed to invest a total of $2.5 million over 6 years to construct, renovate and refurbish 60 community recreational basketball facilities in Detroit, in partnership with the Recreation Department who will maintain the facilities. The City has agreed to promulgate the timeline for facility renovation and the process for choosing the facilities. PS&E is happy to invite NAC members to the grand opening of these facilities. The City has agreed to provide public reports on this investment on an annual basis.

COMMUNITY BENEFIT 51% DETROIT RESIDENTWORKFORCE AND 30% OF CONTRACTS TO DETROIT BASED BUSINESSES (contained in the document codifying the MOU between the City and PSE)

DONATION TO CITY’S WORKFORCE DEVELOPMENT DEPARTMENT $100,000.00

(contained in the document codifying the MOU between the City and PSE)

NAC’S ADDITIONAL REQUESTS/ DETAILS

PISTONS’ RESPONSE

1. Provide plan for meeting these requirements a. Identify how the Pistons Practice Facility Plan will be more successful than the Little Caesars Arena Plan 2. Provide plan for outreach and workforce training (pre-, during and postconstruction), with a focus on the Impact Area, which includes a. Partnering with workforce development entities and unions, and b. Conducting job fairs 3. Provide plan for apprenticeships, with a focus on the Impact Area 4. Provide quarterly reports on the Pistons’ efforts to the Enforcement Committee

1. Identify number of years of the commitment 2. Identify when will the money be disbursed 3. Specify that the Detroit Employment Solutions Corporation will receive the funds

PS&E has committed to a one-time $100,000 contribution to the Detroit Employment Solutions Corporation, which will be disbursed by the end of 2017, subject to the City Council’s approval of all items related to the Pistons move to Detroit.

We plan to host one contracting/job fair so that potential contractors and applicants will be able to get more information on the project and the structure of our organization.

COMMUNITY BENEFIT MENTORSHIP OPPORTUNITIES AND SUPPORT CITY’S SUMMER JOBS PROGRAM FOR THE YOUTH (contained in the document codifying the MOU between the City and PSE)

NAC’S ADDITIONAL REQUESTS/ DETAILS

1. Identify number of years of the commitment 2. Ensure that City residents secure the opportunities, with a focus on the Impact Area 3. Ensure that the frontoffice/corporate opportunities are provided to City residents, with a focus on the Impact Area 4. Quantify the number of City residents, with a focus on residents from the Impact Area, that receive these opportunities a. Identify the number of paid internships per year 5. Identify the amount of the financial commitment by the Pistons for these programs 6. Implement year-round internships for Detroit residents, with a focus on the Impact Area 7. Provide an annual report on the Pistons’ efforts to the Enforcement Committee

PISTONS’ RESPONSE PS&E has committed to partnering with the Mayor’s Office to provide youth mentorship opportunities and participate in Grow Detroit’s Young Talent, the youth summer jobs program for Detroit residents. PS&E will commit $100,000 to GDYT annually, subject to an annual evaluation of the program to ensure that its mission and that of PS&E continue to align. In 2016, our contribution sponsored 58 participants in the program, including 4 who worked for PS&E in Sales and Community Relations. The participants are chosen by the Detroit Employment Solutions Corporation and assigned to PS&E. Separately, PS&E operates a small internship program and welcomes applications from Detroit residents.

COMMUNITY BENEFIT CAMPS, CLINICS, AND OTHER EVENTS PROMOTING YOUTH BASKETBALL AND YOUTH ENRICHMENT (contained in the document codifying the MOU between the City and PSE)

NAC’S ADDITIONAL REQUESTS/ DETAILS

1. Identify number of years of the commitment 2. Ensure and quantify that the City residents secure the opportunities, with a focus on the Impact Area 3. Identify the amount of the financial commitment by the Pistons for these programs 4. Provide an annual report on the Pistons’ efforts to the Enforcement Committee 5. Ensure that programming includes Coaching Clinics

PISTONS’ RESPONSE PS&E commits to host at least 2 youth basketball or related (e.g., “PistonsFit”) programs, camps or clinics (including coaching clinics) per year at a basketball facility (or facilities) in Detroit for at least a period of 6 years.

COMMUNITY BENEFIT FREE TICKETS TO PISTONS GAMES - 20,000 TICKETS/YEAR (contained in the document codifying the MOU between the City and PSE)

NAC’S ADDITIONAL REQUESTS/ DETAILS

1. Identify number of years of the commitment 2. Ensure that City residents secure the tickets, with a focus on the Impact Area 3. Quantify the number of tickets that are donated per game 4. Ensure that donated tickets are spread across the Arena and are not limited to upper rows of the 200 and 300-levels. 5. Ensure that the free tickets include all playoff games 6. Provide a midseason and end of season report on the Pistons’ efforts to the Enforcement Committee

PISTONS’ RESPONSE PS&E commits to make available 20,000 free tickets to regular season Pistons games to Detroit youth and residents for at least [6] years. For each game, ticket numbers and locations will be based upon availability as determined by PS&E. PS&E is happy to work with the City to provide an annual report on these efforts.

COMMUNITY BENEFIT PRE- AND POSTCONSTRUCTION JOBS, CONTRACTING AND PROCUREMENT (contained in the document codifying the MOU between the City and PSE)

NAC’S ADDITIONAL REQUESTS/ DETAILS

1. Ensure contracting and vending opportunities for Detroit-based businesses, with a focus on businesses within the Impact Area 2. Set goals for using Detroitbased business after the construction 3. Allocate a specific percentage to postconstruction vending and contracting that will go to Detroit Based Businesses 4. Host, annually, job and vendor/contracting fairs for post-construction Pistons positions, vending and procurement for the Pistons in partnership with the City of Detroit, business community, trade associations, chambers of commerce and other commerce-driven strategic partners a. Proper notice and information provided to Detroit-based businesses 5. Provide leased space for Detroit-based businesses 6. Provide an annual report on the Pistons’ efforts to the Enforcement Committee

PISTONS’ RESPONSE 26 PS&E are committed to providing opportunities for Detroiters to pursue jobs and contracts relating to this project. To this end, we plan to use any and all available City and community resources and workforce development entities to locate, recruit, train, hire, and retain Detroit residents and businesses to work on and at this project and to maximize local community hiring. We plan to host one contracting/job fair so that potential contractors and applicants will be able to get more information on the project and the structure of our organization. Our business is a unique one because many of our contractual relationship are defined by the NBA (Nike for apparel and merchandise, Spalding for basketballs) and many of our employees have sports business experience from other markets. We feel that making Detroiters aware of the opportunities that are available through a contracting/job fair will give them more insight into the types of opportunities/positions that are available and allow them to compete for those positions. Lastly, PS&E has committed $100,000 to the Detroit Employment Solutions Corporation. With respect to leased space, we intend to pursue strategic retail partners that will impact the neighborhood and community in a positive way.

Job Fairs and pursuing of strategic retail partners for street facing retail constitutes as a community benefit.

APPENDIX 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

Community Benefits Ordinance, Detroit Legal News, November 29, 2016 Project Description Census Tract and Impact Zone March 20, 2017 Flier April 12 2017 Flier E-mail – Pistons NAC – NAC Dr. Ken Harris E-mail – Announcement of CBO Website E-mail – Recap to NAC E-mail – Recap to LPD E-mail – April 27 Notice to NAC – Announcement on Website April 27, 2017 Posting – Print Version E-mail – NAC Proposed Community Benefits List March 20, 2017 Presentation April 12, 2017 Presentation April 27, 2017 – CBO NAC Response Memorandum of Understanding

APPENDIX 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

Tuesday, November 29, 2016

Ordinance 35-16, page 1

Ordinance 35-16, page 2

APPENDIX 1. Community Benefits Ordinance, Detroit Legal News, November 29, 2016 2. Project Description 3. Census Tract and Impact Zone 4. March 20, 2017 Flier 5. April 12 2017 Flier 6. E-mail – Pistons NAC – NAC Dr. Ken Harris 7. E-mail – Announcement of CBO Website 8. E-mail – Recap to NAC 9. E-mail – Recap to LPD 10. E-mail – April 27 Notice to NAC – Announcement on Website 11. April 27, 2017 Posting – Print Version 12. E-mail – NAC Proposed Community Benefits List 13. March 20, 2017 Presentation 14. April 12, 2017 Presentation 15. April 27, 2017 – CBO NAC Response 16. Memorandum of Understanding

HENRY FORD HEALTH SYSTEM – DETROIT PISTONS PERFORMANCE CENTER • Henry Ford Health System and the Detroit Pistons will collaborate on the design and construction of a state‐of‐the‐art training, rehabilitation and sports medicine complex in New Center at 690 Amsterdam Avenue. • The Detroit Pistons will operate a practice facility and training center for their players, as well as offices for their basketball and business operations staffs. • The project’s cost is estimated at $50million. • Henry Ford Health System will operate a comprehensive sports medicine, treatment and rehabilitation facility in an adjacent building. • The cost is under the threshold for Tier I Community Benefits Ordinance public review; but the Pistons are interested in becoming good neighbors and a good partner in the community and seek your help and counsel.

HENRY FORD HEALTH SYSTEM â&#x20AC;&#x201C; DETROIT PISTONS PERFORMANCE CENTER

The City of Detroit Department of Planning & Development and the oﬃce of City Council Member Mary Sheﬃeld invites you to,

Pistons Practice Facility Public Meeting

COME JOIN US! As part of a community benefits agreement process the City of Detroit’s Planning and Development Department invites you to attend a public meeting to review and comment on the proposed project.

Monday March 20, 2017

The Pistons Organization and Henry Ford Hospital are reaching out to the community to receive input about their new home for a sports medicine facility, world headquarters, and practice facility. They are excited to be a new addition to the area and want to be good neighbors.

One Ford Place

Suite 1C00

Detroit, MI 48202

Light refreshments will be provided

Henry Ford Health System

5pm - 7pm See back of page for directions & parking info. Interpretation service for the hearing impaired will be provided at both forums.

CORPORATE OFFICE &ORD 0LACE s $ETROIT -)

Fisher Bldg.

EXIT 214B

1 FORD PLACE

PATIENT ENTRANCE

YORK

1 Ford Place

CHRYSLER CHRYSLER FWY. FWY.

Medical Records

PIQUETTE

HARPER

CASS

YORK

BURROUGHS CASS

1 Ford Place

Medical Records

75 75

FORD FWY.

EXIT 214B

TO CITY AIRPORT TO CITY AIRPORT

EXIT 53BEXIT 53B

TO METRO AIRPORT

PATIENT ENTRANCE

BURROUGHS

THIRD

NORTH LOT 1 FORD PLACE SECONDSECOND

L-1

PIQUETTE

AMSTERDAM

SECONDSECOND

L-1

NORTH LOT

THIRD

LODGE LODGE

WEST LOT

TO METRO AIRPORT

BALTIMORE AMSTERDAM

WEST LOT One way One way

N N

TRUMBULL TRUMBULL

MILWAUKEE BALTIMORE

BEAUBIEN BEAUBIEN

75 BRUSH BRUSH

Center for Medicine

Athletic MILWAUKEE

JOHN R JOHN R

Center for Athletic Medicine

WOODWARD WOODWARD

HAP

CASS

WEST GRAND BLVD

One way One way

HAP

EXIT 54 EXIT 54

WEST GRAND BLVD

SECONDSECOND

Henry Ford Hospital

Fisher Bldg.

THIRD

Henry Ford Hospital

THIRD

LODGE LODGE

Directions to Venue & Parking Info

To Get to West Grand Blvd.

To get to 1 Ford Place from West Grand Blvd.

From Southbound Take ExitBlvd. 54 To Get to1-75: West Grand (Clay Ave/East Grand Blvd.), proceed past Clay Ave. From to EastSouthbound Grand Blvd.,1-75: turn Take west Exit 54 (Clay Ave/East Grand Blvd.), From Northbound 1-75: Takeproceed Exit 53Bpast westClay to Ave. to East Grand Blvd., turn west 1-94. From Eastbound Northbound 1-75: Take Exit 53B(Trumbull). west to From 1-94: Take Exit 214B 1-94. Go north to West Grand Blvd., turn east. From Westbound Eastbound 1-94: 214B (Trumbull). From 1-94:Take TakeExit Lodge Freeway north, Go north to West Grand Blvd., turn east. exit at Milwaukee/West Grand Blvd. From Westbound Take Lodge Freeway north, From Southbound1-94: US-10 (Lodge Freeway): exit at Milwaukee/West Grand Blvd. Take West Grand Blvd. exit, turn east. From US-10 (Lodge (Lodge Freeway): Freeway): From Southbound Northbound US-10 Take Grand Blvd. Grand exit, turn east. Take West Milwaukee/West Blvd. exit, turn east. From Northbound US-10 (Lodge Freeway): Take Milwaukee/West Grand Blvd. exit, turn east.

Take Grand Blvd. toward Fisher Bldg. to ToWest get to 1 Ford Place fromthe West Grand Blvd. Third Ave, and turn south. Go south four blocks on Take Grand Blvd. toward the Fisher Bldg. to ThirdWest Ave. to 1 Ford Place. Third Ave, and turn south. Go south four blocks on Third Ave. parking to 1 FordisPlace. Handicap available in the North Lot or along 1 Ford Place. Handicap parking is available in the North Lot or along 1 Ford Place.

1 Ford Place Information/Security Desk: (313) 874-2281 1 Ford Place Information/Security Desk: (313) 874-2281

The City of Detroit Department of Planning & Development and the oﬃce of City Council Member Mary Sheﬃeld invites you to,

Pistons Practice Facility Public Meeting

Wednesday, April 12, 2017

The Pistons Organization and Henry Ford Health System are reaching out to the community to receive input about their new home for a sports medicine facility, world headquarters, and practice facility. They are excited to be a new addition to the area and want to be good neighbors.

One Ford Place

Suite 1B

Detroit, MI 48202

Light refreshments will be provided

Henry Ford Health System

5pm - 7pm Please enter in the Third Street entrance. See back of page for directions & parking info. Interpretation service for the hearing impaired will be provided.

CORPORATE OFFICE &ORD 0LACE s $ETROIT -)

Fisher Bldg.

EXIT 214B

1 FORD PLACE

PATIENT ENTRANCE

YORK

1 Ford Place

CHRYSLER CHRYSLER FWY. FWY.

Medical Records

PIQUETTE

HARPER

CASS

YORK

BURROUGHS CASS

1 Ford Place

Medical Records

75 75

FORD FWY.

EXIT 214B

TO CITY AIRPORT TO CITY AIRPORT

EXIT 53BEXIT 53B

TO METRO AIRPORT

PATIENT ENTRANCE

BURROUGHS

THIRD

NORTH LOT 1 FORD PLACE SECONDSECOND

L-1

PIQUETTE

AMSTERDAM

SECONDSECOND

L-1

NORTH LOT

THIRD

LODGE LODGE

WEST LOT

TO METRO AIRPORT

BALTIMORE AMSTERDAM

WEST LOT One way One way

N N

TRUMBULL TRUMBULL

MILWAUKEE BALTIMORE

BEAUBIEN BEAUBIEN

75 BRUSH BRUSH

Center for Medicine

Athletic MILWAUKEE

JOHN R JOHN R

Center for Athletic Medicine

WOODWARD WOODWARD

HAP

CASS

WEST GRAND BLVD

One way One way

HAP

EXIT 54 EXIT 54

WEST GRAND BLVD

SECONDSECOND

Henry Ford Hospital

Fisher Bldg.

THIRD

Henry Ford Hospital

THIRD

LODGE LODGE

Directions to Venue & Parking Info

To Get to West Grand Blvd.

To get to 1 Ford Place from West Grand Blvd.

1 Ford Place Information/Security Desk: (313) 874-2281 1 Ford Place Information/Security Desk: (313) 874-2281

Page 1 of 2

John Sivills - Pistons NAC - NAC member Dr. Ken Harris From: John Sivills To: nacpistons@gmail.com Date: 4/13/2017 8:24 AM Subject: Pistons NAC - NAC member Dr. Ken Harris Cc: R. Steven Lewis; acobbina@palacenet.com; rhaddad@palacenet.com; kharr... Attachments: 2017-04-12 - CBO NAC 1.pdf Greetings NAC members! Thank you for your attendance and participation, from near and far (as was the case for Dr. Harris participating via phone while traveling). We appreciate the initiative in setting up the common e-mail address for Pistons NAC members. Just a reminder, if there are any rights and privileges regarding this e-mail address, please extend them to Dr. Harris as well. The NAC has opted to use April 17th for a meeting day with the schedule as follows: 5-6pm NAC members only (planning will attend this meeting as well; 6-7pm meeting is open the community). I need to know which room, if we can use HFHS facilities, this will be in. From the observation of last night, I do believe it is imperative that the distinction with community impact and subsequent mitigation and community requests from the development be noted. This does not exclude community requests from being a part of any agreement - as that is a matter of discussion between the developers and the community. But the central task is about identifying direct negative issues that may arise with the development and how to work to correct them and to document the process in doing so. It is also imperative for the developers/ Pistons to identify succinctly, what can and cannot be done vis-a-vis community requests. For those who came in late or were not able to attend in person; attached is the presentation, with the future schedule. I will release a contact list of those in attendance later today. Thank You, John Sivills

file://C:\Users\sivillsj\AppData\Local\Temp\XPgrpwise\58EF35ACLYNCODPO2100164...

4/28/2017

Page 2 of 2

John F. Sivills,

Assoc. AIA

Lead Urban Designer, Central Planning District

T: 313.224.4403

E: sivillsj@detroitmi.gov

City of Detroit Planning & Development Department Coleman A. Young Municipal Center 2 Woodward Avenue, Suite 808 Detroit, MI 48226

Michael E. Duggan, Mayor

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4/28/2017

Page 1 of 4

John Sivills - Community Benefits Ordinance (CBO) Website From: To: Date: Subject: Cc:

John Sivills <sivillsj@detroitmi.gov> "nacpistons@gmail.com" 4/18/2017 7:18 PM Community Benefits Ordinance (CBO) Website Kimani Jeffrey; Vince Keenan; "R. Steven Lewis"; Matt Walters; David Wil...

Good Evening, Here is the link to the CBO website on the planning department's website to share with the community: http://www.detroitmi.gov/Government/Departments-and-Agencies/Planning-and-DevelopmentDepartment/Community-Benefits-Ordinance I will update information for the next community meeting within the next day or so. Thanks, John Sent from my iPhone On Apr 18, 2017, at 7:00 PM, John Sivills <sivillsj@detroitmi.gov> wrote: Good Evening, To recap the adjustment in the schedule, April 19 close of business, the community's list of concerns and requests needs to be sent to me to pass on the Pistons to respond. The Pistons will present the mitigation response on April 27; not the 26th. Thanks, John

Sent from my iPhone On Apr 17, 2017, at 2:52 PM, John Sivills <sivillsj@detroitmi.gov> wrote:

file://C:\Users\sivillsj\AppData\Local\Temp\XPgrpwise\58F666A8LYNCODPO21001647... 4/29/2017

Page 2 of 4

Good Afternoon All,

I look forward to seeing you at the meeting tonight. There will be a change in the future schedule and an assignment as NAC members:

1)We will be moving the April 24th meeting to April 26th.

2)We will require a list of issues to be mitigated by close of business, April 19th for consideration by the Detroit Pistons.

Thank you for your consideration.

Best Regards,

John

Sent from my iPhone

On Apr 13, 2017, at 8:24 AM, John Sivills <sivillsj@detroitmi.gov> wrote:

Greetings NAC members!

Thank you for your attendance and participation, from near and far (as was the case for Dr. Harris participating via phone while traveling).

We appreciate the initiative in setting up the common e-mail address for Pistons NAC members. Just a reminder, if there are any rights and privileges regarding this e-mail address, please extend them to Dr. Harris as well.

file://C:\Users\sivillsj\AppData\Local\Temp\XPgrpwise\58F666A8LYNCODPO21001647... 4/29/2017

Page 3 of 4

The NAC has opted to use April 17th for a meeting day with the schedule as follows: 5-6pm NAC members only (planning will attend this meeting as well; 6-7pm meeting is open the community). I need to know which room, if we can use HFHS facilities, this will be in.

From the observation of last night, I do believe it is imperative that the distinction with community impact and subsequent mitigation and community requests from the development be noted. This does not exclude community requests from being a part of any agreement - as that is a matter of discussion between the developers and the community. But the central task is about identifying direct negative issues that may arise with the development and how to work to correct them and to document the process in doing so. It is also imperative for the developers/ Pistons to identify succinctly, what can and cannot be done vis-a-vis community requests.

For those who came in late or were not able to attend in person; attached is the presentation, with the future schedule.

I will release a contact list of those in attendance later today.

Thank You,

John Sivills

John F. Sivills, Assoc. AIA Lead Urban Designer, Central Planning District T: 313.224.4403 E: sivillsj@detroitmi.gov

file://C:\Users\sivillsj\AppData\Local\Temp\XPgrpwise\58F666A8LYNCODPO21001647... 4/29/2017

Page 4 of 4

City of Detroit Planning & Development Department Coleman A. Young Municipal Center 2 Woodward Avenue, Suite 808 Detroit, MI 48226

Michael E. Duggan, Mayor

<TEXT.htm> <2017-04-12 - CBO NAC 1.pdf>

file://C:\Users\sivillsj\AppData\Local\Temp\XPgrpwise\58F666A8LYNCODPO21001647... 4/29/2017

From: To: CC: Date: Subject:

John Sivills <sivillsj@detroitmi.gov> "nacpistons@gmail.com" Vince Keenan; "R. Steven Lewis"; Matt Walters; David Williams; Kya Rober... 4/18/2017 6:59 PM Re: Pistons NAC - Change in Schedule

Good Evening, To recap the adjustment in the schedule, April 19 close of business, the community's list of concerns and requests needs to be sent to me to pass on the Pistons to respond. The Pistons will present the mitigation response on April 27; not the 26th. Thanks, John

Sent from my iPhone > On Apr 17, 2017, at 2:52 PM, John Sivills <sivillsj@detroitmi.gov> wrote: > > Good Afternoon All, > > I look forward to seeing you at the meeting tonight. There will be a change in the future schedule and an assignment as NAC members: > > 1)We will be moving the April 24th meeting to April 26th. > > 2)We will require a list of issues to be mitigated by close of business, April 19th for consideration by the Detroit Pistons. > > Thank you for your consideration. > > Best Regards, > > John > > Sent from my iPhone > >> On Apr 13, 2017, at 8:24 AM, John Sivills <sivillsj@detroitmi.gov> wrote: >> >> Greetings NAC members! >> >> Thank you for your attendance and participation, from near and far (as was the case for Dr. Harris participating via phone while traveling). >> >> We appreciate the initiative in setting up the common e-mail address for Pistons NAC members. Just a reminder, if there are any rights and privileges regarding this e-mail address, please extend them to Dr. Harris as well. >> >> The NAC has opted to use April 17th for a meeting day with the schedule as follows: 5-6pm NAC members only (planning will attend this meeting as well; 6-7pm meeting is open the community). I need to know which room, if we can use HFHS facilities, this will be in. >>

>> From the observation of last night, I do believe it is imperative that the distinction with community impact and subsequent mitigation and community requests from the development be noted. This does not exclude community requests from being a part of any agreement - as that is a matter of discussion between the developers and the community. But the central task is about identifying direct negative issues that may arise with the development and how to work to correct them and to document the process in doing so. It is also imperative for the developers/ Pistons to identify succinctly, what can and cannot be done vis-a-vis community requests. >> >> For those who came in late or were not able to attend in person; attached is the presentation, with the future schedule. >> >> I will release a contact list of those in attendance later today. >> >> Thank You, >> >> John Sivills >> >> >> John F. Sivills, Assoc. AIA >> Lead Urban Designer, >> Central Planning District >> T: 313.224.4403 >> E: sivillsj@detroitmi.gov >> >> City of Detroit >> Planning & Development Department >> Coleman A. Young Municipal Center >> 2 Woodward Avenue, Suite 808 >> Detroit, MI 48226 >> >> Michael E. Duggan, Mayor >> >> >> <TEXT.htm> >> <2017-04-12 - CBO NAC 1.pdf>

Page 1 of 4

John Sivills - Re: Pistons NAC - Change in Schedule From: John Sivills To: Kimani Jeffrey Date: 4/19/2017 8:40 AM Subject: Re: Pistons NAC - Change in Schedule Cc: R. Steven Lewis; Marcell Todd Hi Kimani, Sure. It was the intent for the NAC to meet alone. Steve Lewis and I went there to primarily observe, since this is all new to us. I mentioned this in the letter sent to the NAC following the meeting on April 12th that planning will be there. For your info as well, Council Member Sheffield was there with staff. The NAC discussed concerns that needed to be considered for mitigation; and further categorized the concerns within the impact area and concerns that could be considered by the developer that were not a direct impact of the project. Steve and I did answer some technical questions as it pertained to the CBO that the NAC had, as well as offered some technical advise warranted. We informed the NAC of the change in the schedule. When I receive the list today I will forward to you as well, if it isn't directly copied to you. Thanks, John John F. Sivills,

Assoc. AIA

Lead Urban Designer, Central Planning District

T: 313.224.4403

E: sivillsj@detroitmi.gov

City of Detroit Planning & Development Department Coleman A. Young Municipal Center 2 Woodward Avenue, Suite 808 Detroit, MI 48226

Michael E. Duggan, Mayor

>>> Kimani Jeffrey 4/18/2017 9:58 PM >>>

Hello John,

file://C:\Users\sivillsj\AppData\Local\Temp\XPgrpwise\58F72280LYNCODPO21001647...

4/29/2017

Page 2 of 4

Would you be able to give me a brief update as to what occurred at the meeting of the 17th. I had the understanding that the NAC was going to meet alone and for the second half, possibly with the community. I guess I had a misunderstanding. I didn't know City staff would be there also. Also, can you provide me with the list of concerns and requests from the NAC once they send it to you. That will really help in my analysis of the process. Thanks Best, r e n n a l P y t i C , y e r f f e J i n a m i K l i c n u o C y t i C t i o r t e D / n o i s i v i D y c i l o P e v i t a l s i g e L n o i s s i m m o C g n i n n a l P y t i C r e t n e C l a p i c i n u M g n u o Y . A n a m e l o C 8 0 2 e t i u S . e v A d r a w d o o W 2 6 2 2 8 4 I M , t i o r t e D x a f 6 3 3 4 4 2 2

︶︶

e n o h p 6 7 3 6 4 2 2

33 11 33

︵︵

jeffreyk@detroitmi.gov

>>> John Sivills <sivillsj@detroitmi.gov> 04/18/17 7:00 PM >>>

Sent from my iPhone > On Apr 17, 2017, at 2:52 PM, John Sivills wrote: > > Good Afternoon All, > > I look forward to seeing you at the meeting tonight. There will be a change in the future schedule and an assignment as NAC members: > > 1)We will be moving the April 24th meeting to April 26th. > > 2)We will require a list of issues to be mitigated by close of business, April 19th for consideration by the Detroit Pistons. > > Thank you for your consideration. >

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> Best Regards, > > John > > Sent from my iPhone > >> On Apr 13, 2017, at 8:24 AM, John Sivills wrote: >> >> Greetings NAC members! >> >> Thank you for your attendance and participation, from near and far (as was the case for Dr. Harris participating via phone while traveling). >> >> We appreciate the initiative in setting up the common e-mail address for Pistons NAC members. Just a reminder, if there are any rights and privileges regarding this e-mail address, please extend them to Dr. Harris as well. >> >> The NAC has opted to use April 17th for a meeting day with the schedule as follows: 5-6pm NAC members only (planning will attend this meeting as well; 6-7pm meeting is open the community). I need to know which room, if we can use HFHS facilities, this will be in. >> >> From the observation of last night, I do believe it is imperative that the distinction with community impact and subsequent mitigation and community requests from the development be noted. This does not exclude community requests from being a part of any agreement - as that is a matter of discussion between the developers and the community. But the central task is about identifying direct negative issues that may arise with the development and how to work to correct them and to document the process in doing so. It is also imperative for the developers/ Pistons to identify succinctly, what can and cannot be done vis-a-vis community requests. >> >> For those who came in late or were not able to attend in person; attached is the presentation, with the future schedule. >> >> I will release a contact list of those in attendance later today. >> >> Thank You, >> >> John Sivills >> >> >> John F. Sivills, Assoc. AIA >> Lead Urban Designer, >> Central Planning District >> T: 313.224.4403 >> E: sivillsj@detroitmi.gov >> >> City of Detroit >> Planning & Development Department >> Coleman A. Young Municipal Center >> 2 Woodward Avenue, Suite 808 >> Detroit, MI 48226 >>

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>> Michael E. Duggan, Mayor >> >> >> >> <2017-04-12 - CBO NAC 1.pdf>

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4/29/2017

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Event: Pistons Practice Facility Presentation of Mitigation to NAC April 27 2017 posted on 4/20/2017 8:13:00 AM

Pistons Practice Facility Presentation of Mitigation to NAC LOCATION: Gilmore Center Henry Ford Health Systems One Ford Place Detroit, MI 48202 DATE/TIME: Thursday, April 27, 2017 5:30-7:00 pm

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John Sivills - Pistons Practice Facility Community Benefits Ordinance: NAC's suggestions From: To: Date: Subject: Cc:

Randal Brown <brown.randal@gmail.com> John Sivills <sivillsj@detroitmi.gov> 4/19/2017 2:40 PM Pistons Practice Facility Community Benefits Ordinance: NAC's suggestions "BRANDONEZZA@aol.com" <brandonezza@aol.com>, <diane8904@att.net>, <moniq... Attachments: PistonsPracticeFacilityCommunityBenefitNACRequestsandPistonsResponses.docx

Mr. Sivills, Please see the attached Word document. Regards, Randal

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HENRY FORD HEALTH SYSTEM – DETROIT PISTONS PERFORMANCE CENTER

Opening in Fall 2018 • Henry Ford Health System and the Detroit Pistons will collaborate on the design and construction of state-of-the-art training, rehabilitation and sports medicine complex in New Center. • The Detroit Pistons will operate a practice facility and training center for their players, as well as offices for their basketball and business operations staffs. • Henry Ford Health System will operate a comprehensive sports medicine, treatment and rehabilitation facility.

HENRY FORD HEALTH SYSTEM â&#x20AC;&#x201C; DETROIT PISTONS PERFORMANCE CENTER

HENRY FORD HEALTH SYSTEM – DETROIT PISTONS PERFORMANCE CENTER

ISSUE: TRAFFIC POTENTIAL IMPACT

• Traffic congestion during peak periods (rush hour) • Discuss potential mitigation techniques

HENRY FORD HEALTH SYSTEM – DETROIT PISTONS PERFORMANCE CENTER

ISSUE: CONSTRUCTION POTENTIAL IMPACT

• Construction effects • Noise • Dust

• Discuss potential mitigation techniques

HENRY FORD HEALTH SYSTEM – DETROIT PISTONS PERFORMANCE CENTER

ISSUE: PARKING POTENTIAL IMPACT

• Parking Operations Displacement • Discuss potential mitigation techniques

HENRY FORD HEALTH SYSTEM â&#x20AC;&#x201C; DETROIT PISTONS PERFORMANCE CENTER

WHAT ARE THE NAC MEMBERS’ ROLES AND RESPONSIBILITIES? • Attend at least 1 initial meeting between the NAC the Developer. • Continue to attend follow-up meetings with the Developer to monitor progress and status of project. • Review Community Benefits Reports written by the Planning and Development Department Compliance Reports • SHARE INFORMATION

NAC MEMBERS Eligible members must be: • Residents of the impacted area • Nominated by residents of the impacted area, and • At least 18 years of age

The NAC consists of 9 members, who are selected as follows: • 2 selected by residents of the impacted area • 4 selected by the City of Detroit Planning and Development Department (with preference given to residents expected to be directly impacted by project) • 2 selected by the At-Large Council Members (Council Members Ayers and Jones) • 1 selected by the local District Council Member (Council Member Sheffield) whose district contains the largest portion of the Impact Area

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The City of Detroit welcomes you to theâ&#x20AC;¦.

Pistons Practice Facility

NEIGHBORHOOD ADVISORY COUNCIL PUBLIC MEETING 4.12.2017

HENRY FORD HEALTH SYSTEM – DETROIT PISTONS PERFORMANCE CENTER • Henry Ford Health System and the Detroit Pistons will collaborate on the design and construction of state-of-the-art training, rehabilitation and sports medicine complex in New Center at 690 Amsterdam Avenue • The Detroit Pistons will operate a practice facility and training center for their players, as well as offices for their basketball and business operations staffs. • The project’s cost is estimated at $50million • Henry Ford Health System will operate a comprehensive sports medicine, treatment and rehabilitation facility in an adjacent building. • The cost is under the threshold for Tier I Community Benefits Ordinance public review; but the Pistons are interested in becoming good neighbors and a good partner in the community and seek your help and counsel.

HENRY FORD HEALTH SYSTEM â&#x20AC;&#x201C; DETROIT PISTONS PERFORMANCE CENTER

HENRY FORD HEALTH SYSTEM – DETROIT PISTONS PERFORMANCE CENTER • INVESTMENT OF $2,500,000 OVER SIX YEARS IN THE CONSTRUCTION, RENOVATION AND REFURBUSHMENT OF MORE THAN 60 BASKETBALL COURTS IN PARKS THROUGHOUT THE CITY OF DETROIT IN PARTNERSHIP WITH THE CITY OF DETROIT’S RECREATION DEPARTMENT. • EMPLOY AT LEAST 51% DETROIT RESIDENTS AND AWARD AT LEAST 30% OF CONTRACTS TO DETROIT-BASED COMPANIES DURING THE CONSTRUCTION OF THE PRACTIE FACILITY. • SUPPORT WORKFORCE DEVELOPMENT INITIATIVES FOR CITY RESIDENTS INCLUDING A COMMITMENT OF $100,000 TO THE CITY’S WORKFORCE DEVELOPMENT DEPARTMENT. • CONTINUE TO PARTNER WITH THE MAYOR’S OFFICE TO PROVIDE MENTORSHIP OPPURTUNITIES FOR YOUNG CITY RESIDENTS AND SUPPORT THE CITY’S SUMMER JOBS PROGRAM. • HOST FREE YOUTH BASKETBALL CAMPS, CLINICS, AND OTHER EVENTS FOR CITY RESIDENTS TO PROMOTE YOUTH BASKETBALL AND YOUTH ENRICHMENT PROGRAMS IN THE CITY. • CONTINUE TO PROVIDE TICKETS TO DETROIT YOUTH AND RESIDENTS TO ATTEND NBA BASKETBALL GAMES, IN SUPPORT OF AND IN CONNECTION WITH COMMUNITY EDUCATIONAL PROGRAMS AND INITIATIVES.

HENRY FORD HEALTH SYSTEM â&#x20AC;&#x201C; DETROIT PISTONS PERFORMANCE CENTER

HENRY FORD HEALTH SYSTEM – DETROIT PISTONS PERFORMANCE CENTER NEIGHBORHOOD ADVISORY COUNCIL (NAC) Eligible members must be:

• Residents of the impacted area • Nominated by residents of the impacted area, and • At least 18 years of age

The NAC consists of 9 members, who are selected as follows:

• 2 selected by residents of the impacted area • 4 selected by the City of Detroit Planning and Development Department (with preference given to residents expected to be directly impacted by project) • 2 selected by the At-Large Council Members (Council Member Ayers and Council Presidents Jones) • 1 selected by the local District Council Member (Council Member Sheffield) whose district contains the largest portion of the Impact Area

HENRY FORD HEALTH SYSTEM – DETROIT PISTONS PERFORMANCE CENTER NEIGHBORHOOD ADVISORY COUNCIL FOR THE PISTONS PRACTICE FACILITY DR. KEN HARRIS – community elected KATHRYN ROBERTSON – community elected SARAH JAMES – CM Mary Sheffield appointee LYNORE V. FOSTER – CM Janee Ayres appointee AMY RENCHER – PDD Director Cox appointee MONIQUE DOOLEY – PDD Director Cox appointee RANDAL BROWN – PDD Director Cox appointee EZZA BRANDON – PDD Director Cox appointee DIANE MCMILLAN – CP Brenda Jones Appointee LEGISLATIVE POLICY LIASION – KIMANI JEFFREY

HENRY FORD HEALTH SYSTEM â&#x20AC;&#x201C; DETROIT PISTONS PERFORMANCE CENTER

HENRY FORD HEALTH SYSTEM – DETROIT PISTONS PERFORMANCE CENTER

MARCH 20, 2017* – FIRST PUBLIC MEETING – ELECTED (2) NAC MEMBERS APRIL 12, 2017 – MEETING WITH DEVELOPERS AND FULL NAC COUNCIL APRIL 17, 2017 – OPTIONAL MEETING IF DEEMED NECESSARY APRIL 24, 2017 – DEVELOPERS PRESENT PROPOSED MITIGATION MAY 08, 2017 – PLANNING AND DEVELOPMENT PRESENTS REPORT TO NAC NAC WILL WORK WITH ENFORCEMENT COMMITTEE ON A BIANNUAL COMPLIANCE REPORT TO ENSURE DEVELOPER PROVIDES AGREED UPON COMMUNITY BENEFITS – DATES TO BE DETERMINED

HENRY FORD HEALTH SYSTEM â&#x20AC;&#x201C; DETROIT PISTONS PERFORMANCE CENTER

The City of Detroit welcomes you to theâ&#x20AC;¦.

Pistons Practice Facility NEIGHBORHOOD ADVISORY COUNCIL PROPOSED COMMUNITY BENEFITS DEVELOPER MITIGATION RESPONSE PUBLIC MEETING 4.27.2017

HENRY FORD HEALTH SYSTEM – DETROIT PISTONS PERFORMANCE CENTER • Henry Ford Health System and the Detroit Pistons will collaborate on the design and construction of a state-of-the-art training, rehabilitation and sports medicine complex in New Center at 690 Amsterdam Avenue. • The Detroit Pistons will operate a practice facility and training center for their players, as well as offices for their basketball and business operations staffs. • The project’s cost is estimated at $50million. • Henry Ford Health System will operate a comprehensive sports medicine, treatment and rehabilitation facility in an adjacent building. • The cost is under the threshold for Tier I Community Benefits Ordinance public review; but the Pistons are interested in becoming good neighbors and a good partner in the community and seek your help and counsel.

HENRY FORD HEALTH SYSTEM â&#x20AC;&#x201C; DETROIT PISTONS PERFORMANCE CENTER

HENRY FORD HEALTH SYSTEM – DETROIT PISTONS PERFORMANCE CENTER COMMUNITY BENEFIT 60 OUTDOOR BASKETBALL COURTS ($2.5 million over 6 years)

Note: this request and response will not be addressed in any “Community Benefits Provision” agreement – it will be addressed in a separate agreement between the City and PS&E.

NAC’S ADDITIONAL REQUESTS/DETAILS 1. 2. 3.

4. 5. 6. 7. 8. 9.

Remove limitation on using the funds for outdoor basketball courts Increase amount Allow the City’s Rec Department to determine how the funds are allocated and location of the courts, with a focus on the Impact Area a. Joseph Walker Williams Center, Delores Bennett Playground, Burns-Lambert Park and Coleman Young Rec Center should be on the list Provide plan to maintain the courts, including separate funding to maintain the Court Consider indoor courts Provide lighting to ensure safety of users Provide a timeline for completing all 60 courts Invite NAC members to the grand opening of the Courts Provide an annual report on the Pistons’ efforts to the Enforcement Committee

PISTONS’ RESPONSE Per our previous agreements (MOUs) with the DDA and City, PS&E committed to invest a total of $2.5 million over 6 years to construct, renovate and refurbish 60 community recreational basketball facilities in Detroit, in partnership with the Recreation Department who will maintain the facilities. The City has agreed to promulgate the timeline for facility renovation and the process for choosing the facilities. PS&E is happy to invite NAC members to the grand opening of these facilities. The City has agreed to provide public reports on this investment on an annual basis.

HENRY FORD HEALTH SYSTEM – DETROIT PISTONS PERFORMANCE CENTER COMMUNITY BENEFIT 51% DETROIT RESIDENTWORKFORCE AND 30% OF CONTRACTS TO DETROIT BASED BUSINESSES Note: this request and response will not be addressed in any “Community Benefits Provision” agreement – it will be addressed in a separate agreement between the City and PS&E.

NAC’S ADDITIONAL REQUESTS/DETAILS

PISTONS’ RESPONSE

We plan to use any and all available City and community resources and workforce development entities to locate, recruit, train, hire, and retain Detroit residents and businesses to work on and at this project and to maximize local community hiring. We plan to host one contracting/job fair so that potential contractors and applicants will be able to get more information on the project and the structure of our organization.

HENRY FORD HEALTH SYSTEM – DETROIT PISTONS PERFORMANCE CENTER COMMUNITY BENEFIT DONATION TO CITY’S WORKFORCE DEVELOPMENT DEPARTMENT ($100,000.00) Note: this request and response will not be addressed in any “Community Benefits Provision” agreement – it will be addressed in a separate agreement between the City and PS&E.

NAC’S ADDITIONAL REQUESTS/DETAILS 1. Identify number of years of the commitment 2. Identify when will the money be disbursed 3. Specify that the Detroit Employment Solutions Corporation will receive the funds

PISTONS’ RESPONSE PS&E has committed to a one-time $100,000 contribution to the Detroit Employment Solutions Corporation, which will be disbursed by the end of 2017, subject to the City Council’s approval of all items related to the Pistons move to Detroit.

HENRY FORD HEALTH SYSTEM – DETROIT PISTONS PERFORMANCE CENTER COMMUNITY BENEFIT MENTORSHIP OPPORTUNITIES AND SUPPORT CITY’S SUMMER JOBS PROGRAM FOR THE YOUTH Note: this request and response will not be addressed in any “Community Benefits Provision” agreement – it will be addressed in a separate agreement between the City and PS&E.

NAC’S ADDITIONAL REQUESTS/DETAILS 1. 2. 3.

5. 6. 7.

Identify number of years of the commitment Ensure that City residents secure the opportunities, with a focus on the Impact Area Ensure that the front-office/corporate opportunities are provided to City residents, with a focus on the Impact Area Quantify the number of City residents, with a focus on residents from the Impact Area, that receive these opportunities a. Identify the number of paid internships per year Identify the amount of the financial commitment by the Pistons for these programs Implement year-round internships for Detroit residents, with a focus on the Impact Area Provide an annual report on the Pistons’ efforts to the Enforcement Committee

HENRY FORD HEALTH SYSTEM – DETROIT PISTONS PERFORMANCE CENTER COMMUNITY BENEFIT CAMPS, CLINICS, AND OTHER EVENTS PROMOTING YOUTH BASKETBALL AND YOUTH ENRICHMENT Note: this request and response will not be addressed in any “Community Benefits Provision” agreement – it will be addressed in a separate agreement between the City and PS&E.

NAC’S ADDITIONAL REQUESTS/DETAILS

PISTONS’ RESPONSE

PS&E commits to host at least 2 youth basketball or related (e.g., “PistonsFit”) programs, camps or clinics (including coaching clinics) per year at a basketball facility (or facilities) in Detroit for at least a period of 6 years.

HENRY FORD HEALTH SYSTEM – DETROIT PISTONS PERFORMANCE CENTER COMMUNITY BENEFIT FREE TICKETS TO PISTONS GAMES (20,000 tickets/year)

Note: this request and response will not be addressed in any “Community Benefits Provision” agreement – it will be addressed in a separate agreement between the City and PS&E.

NAC’S ADDITIONAL REQUESTS/DETAILS 1. Identify number of years of the commitment 2. Ensure that City residents secure the tickets, with a focus on the Impact Area 3. Quantify the number of tickets that are donated per game 4. Ensure that donated tickets are spread across the Arena and are not limited to upper rows of the 200 and 300-levels. 5. Ensure that the free tickets include all play-off games 6. Provide a midseason and end of season report on the Pistons’ efforts to the Enforcement Committee

PISTONS’ RESPONSE PS&E commits to make available 20,000 free tickets to regular season Pistons games to Detroit youth and residents for at least six 6 years. For each game, ticket numbers and locations will be based upon availability as determined by PS&E. PS&E is happy to work with the City to provide an annual report on these efforts.

HENRY FORD HEALTH SYSTEM – DETROIT PISTONS PERFORMANCE CENTER COMMUNITY BENEFIT FACILITY ACCESS BY THE COMMUNITY

NAC’S ADDITIONAL REQUESTS/DETAILS

PISTONS’ RESPONSE

1. Identify the number of practices per year that City residents can attend, with a focus on the Impact Area 2. Identify the number of clinics and other programing that City residents can have at the Facility 3. Identify the number of years for this commitment 4. Provide an annual report on the Pistons’ efforts to the Enforcement Committee

PS&E commits to holding at least one practice per season that is open to the public and free of admission costs in the City. Additionally, PS&E commits to host at least 2 youth basketball or related (e.g., “PistonsFit”) programs, camps or clinics (including coaching clinics) per year at a basketball facility (or facilities) in Detroit for at least a period of 6 years. Lastly, PS&E intends to include publicfacing retail on the ground level of the facility.

HENRY FORD HEALTH SYSTEM – DETROIT PISTONS PERFORMANCE CENTER COMMUNITY BENEFIT

NAC’S ADDITIONAL REQUESTS/DETAILS

PISTONS’ RESPONSE

PARKING AND STREET CLOSURES

1. Provide general public access to the parking structure at an hourly and daily rate 2. Ensure that street parking would not be impacted by the Pistons Practice Facility 3. Ensure that neighboring buildings will continue to have access to their lots, during and post-construction, including the loft building across the street from the Facility 4. Ensure that Facility activities are scheduled to limit its impact on rush hour traffic and school pick-up and drop-off times in the Impact Area 5. Notify businesses, residents and schools of temporary and permanent street closures in a timely manner

PS&E and Henry Ford Health System are designing a parking structure that will replace the surface lot that HFHS currently uses and accommodate all anticipated PSE employees and visitors. As such, the neighborhood’s postconstruction parking situation will not be negatively impacted by the Practice Facility. No permanent street closures are anticipated and we will work with the city to notify residents of temporary street closures in the area, and to otherwise minimize these impacts. PS&E realizes that the development of the Practice Facility may displace parking for residents of the Lofts at New Amsterdam. Our understanding is that HFHS has committed to finding convenient replacement parking nearby on HFHS owned land.

HENRY FORD HEALTH SYSTEM – DETROIT PISTONS PERFORMANCE CENTER COMMUNITY BENEFIT

NAC’S ADDITIONAL REQUESTS/DETAILS

PISTONS’ RESPONSE

LIGHTING

1. Ensure that the Facility will minimize light pollution (i.e. Ford Field blue roof) in the Impact Area

PS&E will cooperate with the City to comply with all local rules and regulations regarding exterior lighting or signage.

FITNESS WORKS

1. Provide plan and commitment to a. address the potential closure of the facility and/or b. partner with Fitness Works

The Pistons do not have anything to do with Fitness Works. Our understanding is that HFHS is working with the owners of Fitness Works with respect to this issue.

HENRY FORD HEALTH SYSTEM – DETROIT PISTONS PERFORMANCE CENTER COMMUNITY BENEFIT DETROIT PUBLIC SCHOOLS COMMUNITY DISTRICT PARTNERSHIP

NAC’S ADDITIONAL REQUESTS/DETAILS

PISTONS’ RESPONSE

1. Ensure engagement with all DPSCD schools 2. Extend Pistons’ buying power to purchase basketball equipment for schools (basketball whistles, etc.) 3. Provide the current state of scholarship programs going to City residents 4. Award scholarships to DPSCD high school graduates 5. Provide an annual report on the Pistons’ efforts to the Enforcement Committee

As the Detroit Public Schools continues with their transition, the Detroit Pistons and the Detroit Pistons Foundation will continue to engage with Detroit Public Schools and its students through our grantees and non-profit partners, particularly City Year who the Pistons are helping to expand from 7 to 15 schools over the next two years. The Pistons also host (for the 12th year) an annual scholarship competition for Detroit and Flint public school students featuring $50,000 in college scholarships.

HENRY FORD HEALTH SYSTEM – DETROIT PISTONS PERFORMANCE CENTER COMMUNITY BENEFIT PRE- AND POST- CONSTRUCTION JOBS, CONTRACTING AND PROCUREMENT (PART 1 RESPONSE)

NAC’S ADDITIONAL REQUESTS/DETAILS

PISTONS’ RESPONSE

1. Ensure contracting and vending opportunities for Detroit-based businesses, with a focus on businesses within the Impact Area 2. Set goals for using Detroit-based business after the construction 3. Allocate a specific percentage to postconstruction vending and contracting that will go to Detroit Based Businesses

PS&E are committed to providing opportunities for Detroiters to pursue jobs and contracts relating to this project. To this end, we plan to use any and all available City and community resources and workforce development entities to locate, recruit, train, hire, and retain Detroit residents and businesses to work on and at this project and to maximize local community hiring. We plan to host one contracting/job fair so that potential contractors and applicants will be able to get more information on the project and the structure of our organization.

HENRY FORD HEALTH SYSTEM – DETROIT PISTONS PERFORMANCE CENTER COMMUNITY BENEFIT PRE- AND POST- CONSTRUCTION JOBS, CONTRACTING AND PROCUREMENT (PART 2 RESPONSE)

NAC’S ADDITIONAL REQUESTS/DETAILS

PISTONS’ RESPONSE

1. Host, annually, job and vendor/contracting fairs for postconstruction Pistons positions, vending and procurement for the Pistons in partnership with the City of Detroit, business community, trade associations, chambers of commerce and other commerce-driven strategic partners a. Proper notice and information provided to Detroit-based businesses 2. Provide leased space for Detroit-based businesses 3. Provide an annual report on the Pistons’ efforts to the Enforcement Committee

Our business is a unique one because many of our contractual relationship are defined by the NBA (Nike for apparel and merchandise, Spalding for basketballs) and many of our employees have sports business experience from other markets. We feel that making Detroiters aware of the opportunities that are available through a contracting/job fair will give them more insight into the types of opportunities/positions that are available and allow them to compete for those positions. Lastly, PS&E has committed $100,000 to the Detroit Employment Solutions Corporation. With respect to leased space, we intend to pursue strategic retail partners that will impact the neighborhood and community in a positive way.

HENRY FORD HEALTH SYSTEM – DETROIT PISTONS PERFORMANCE CENTER COMMUNITY BENEFIT OTHER REQUEST

NAC’S ADDITIONAL REQUESTS/DETAILS

PISTONS’ RESPONSE

1. Provide a comparison of the total amount The DEGC conducted an economic of tax incentives the Pistons expect to impact analysis that determined that the receive to the amount the Pistons expect City will receive net benefits of over $9M to spend on Community Benefits

in the next 10 years, even after accounting for any/all tax abatements and incentives that will benefit the Pistons.

HENRY FORD HEALTH SYSTEM – DETROIT PISTONS PERFORMANCE CENTER

MARCH 20, 2017* – FIRST PUBLIC MEETING – ELECTED (2) NAC MEMBERS APRIL 12, 2017 – MEETING WITH DEVELOPERS AND FULL NAC COUNCIL APRIL 17, 2017 – NAC EXECUTIVE SESSION/ PUBLIC MEETING APRIL 27, 2017 – DEVELOPERS PRESENT PROPOSED MITIGATION MAY 01, 2017 – PDD COMPLETES CBA REPORT THE CITY OF DETROIT WILL HAVE THE AUTHORITY TO ENFORCE ANY AND ALL PISTONS COMMITMENTS AND OBLIGATIONS. THE NAC WILL HAVE THE OPPORTUNITY TO CONTINUE TO WORK WITH THE CITY AND PDD TO PARTICIPATE IN THAT ENFORCEMENT PROCESS.

HENRY FORD HEALTH SYSTEM â&#x20AC;&#x201C; DETROIT PISTONS PERFORMANCE CENTER

Memorandum of Understanding

CONFIDENTIAL EXECUTION VERSION

MEMORANDUM OF UNDERSTANDING

2 3 4 5 6 7

This Memorandum of Understanding (“MOU”) is executed on this ___ day of November, 2016 by and between the City of Detroit Downtown Development Authority (“DDA”), Palace Sports & Entertainment, LLC, a Delaware limited liability company (“PS&E”, and together with DDA, the “Parties”).

8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

A. Act 197, Michigan Public Acts, 1975, as amended (the “DDA Act”) was amended in 2012 (the “2012 DDA Act Amendments”) to allow downtown development authorities to capture tax increment revenues derived from state and local school taxes levied on or after July 1, 2010, for the purpose of financing a “catalyst development project” approved by the Michigan Strategic Fund and a downtown development authority. A catalyst development project is defined in the DDA Act as a project located in a municipality with a population greater than 600,000 and expected to result in at least $300,000,000 in capital investment. Only one project may be so designated by each downtown development authority under the DDA Act. The 2012 DDA Act Amendments provided that costs associated with the land acquisition, preliminary site work, and construction of a catalyst development project may be paid for or reimbursed out of captured tax increment revenues derived from state and local school taxes levied on or after July 1, 2010. In addition, the 2012 DDA Act Amendments authorized the issuance of bonds after July 31, 2012, to pay for costs associated with a catalyst development project, and provided that a tax increment financing plan for such a project could pledge available tax increment revenues of the DDA as security for any bonds issued to develop and construct the project.

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B. By resolution adopted on June 26, 2013, the DDA Board approved the expansion of Development Area No. 1 and certain amendments to the Restated City of Detroit Downtown Development Authority Tax Increment Financing Plan and Development Plan For Development Area No. 1 (as amended, the “Plan” or the “Development Plan”) necessary to proceed with a “catalyst development project” under the DDA Act for the development and construction of a new multi-purpose events center and related facilities (the “Arena”) and the development or redevelopment of vacant and/or underutilized properties in the area adjacent to or near the Arena (together with the Arena, the “Catalyst Development Project”). By resolution adopted on July 24, 2013, the Michigan Strategic Fund approved those amendments to the Plan which related to the Catalyst Development Project as required by the DDA Act. By resolution adopted on December 20, 2013, the Detroit City Council approved amendments to the Plan, including the Catalyst Development Project.

39 40 41

C. The DDA, Olympia Entertainment Events Center, LLC, as successor in interest to Olympia Development of Michigan Events Center, LLC (“OEEC”), and the Detroit Red Wings (the “Red Wings”) are parties to that certain Amended and -1-

Recitals

Memorandum of Understanding

CONFIDENTIAL EXECUTION VERSION

1 2 3 4 5 6 7 8 9

Restated Concession and Management Agreement dated as of December 11, 2014 (as amended, the “Arena Concession Agreement”) for the purpose of establishing a public-private partnership for development, construction and operation of the Arena. Under the terms of the Arena Concession Agreement, the land and building improvements comprising the Arena are a public facility owned by the DDA and managed and operated by OEEC as concessionaire, subject to the terms and conditions and for the time periods set forth thereunder. The Arena has subsequently been named the Little Caesars Arena and is expected to be fully operational by September 2017.

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D. In order to provide financing for a portion of the costs of the construction of the Arena, the Michigan Strategic Fund (“MSF”) issued its $250,000,000 Limited Obligation Revenue Bonds, Series 2014A (Events Center Project) (the “Series 2014A Bonds”) and $200,000,000 Limited Obligation Revenue Bonds, Series 2014B (Events Center Project) (Federally Taxable) (the “Series 2014B Bonds”) and loaned the proceeds of the Series 2014A and Series 2014B Bonds to the DDA. As security for the Series 2014A Bonds, the DDA issued its Tax Increment Revenue Bond (Development Area No. 1 Projects), Series 2014A (the “Series 2014A DDA Obligation”) and pledged its Net General Tax Increment Revenues and Catalyst Project Revenues (each as defined in the Series 2014A DDA Obligation) for payment of the Series 2014A DDA Obligation. As security for the Series 2014B Bonds, the DDA issued its Concession Revenue Bond (Development Area No. 1 Projects), Series 2014B (the “Series 2014B DDA Obligation”) and pledged certain concession fee revenues to be received by the DDA under the Arena Concession Agreement to the MSF for payment of the Series 2014B DDA Obligation.

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E. PS&E and the Detroit Pistons Basketball Company (“Pistons Basketball;” and together with PS&E and any affiliate thereof, the “Pistons”) have agreed to the principal terms and conditions pursuant to which the Pistons will relocate the venue for Pistons Basketball home games and related Pistons operations from the Palace of Auburn Hills to the Arena commencing with the fall 2017 NBA season.

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F. In order to further develop, expand and enhance the Catalyst Development Project and to induce the Pistons to relocate from the Palace of Auburn Hills to the Arena, it is necessary and desirable to construct a new Pistons practice facility and corporate offices and headquarters and to make certain additional improvements to the Arena to accommodate the Pistons’ basketball, operational and facility requirements.

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G. The DDA has determined that the relocation of the Pistons to the Arena will act as a major economic development catalyst for the City of Detroit (the “City”), will have a beneficial effect on the property values of property within the DDA’s downtown district and will create new business and employment opportunities. -2-

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H. DDA has determined that there is a public purpose to modify the existing public-private partnership for the Arena to incorporate the construction of: (1) additional improvements to the Arena to accommodate the Pistons’ basketball, operational and facility requirements; (2) a practice facility and corporate offices and headquarters for the Pistons; and (3) other public facilities, public infrastructure and public spaces in the DDA’s Development Area No. 1 relating to the foregoing (collectively the “Pistons Development Project”).

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I. In consideration of the DDA modifying the existing public-private partnership for the Arena to incorporate the Pistons Development Project and undertaking the transactions described herein, the Pistons will agree to (i) relocate their basketball and related operations to the City of Detroit and (ii) develop and administer programs and facilities intended to benefit the youth, residents, and businesses of the City, as further described herein.

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J. The Parties estimate and anticipate that the total cost of the Pistons Development Project will be in the range of $67 - $95 million, that the private investment in the Pistons Development Project will be approximately $32 - $55 million, and that the public investment will be no more than $34.5 million, in 2016 dollars, such investments to be allocated as set forth herein.

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K. The Parties desire to memorialize their mutual understandings and intentions relative to the terms of the Pistons Development Project and the intended roles of each party in assuring the successful completion of the Pistons Development Project, and the respective contributions toward the costs of the Pistons Development Project.

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General Description of the Pistons Development Project A. Arena Basketball Related Improvements

Certain enhancements and modifications will be made to the design and development of the Arena to accommodate the Pistons basketball operations and facility requirements (hereinafter referred to as the “Arena Improvements”). B. Pistons Practice Facility and Corporate Offices The Pistons practice facility will be a first-class professional basketball practice facility and training center with multiple basketball courts, training, performance and rehabilitation facilities for Pistons players, and will serve as the corporate offices and headquarters of PS&E and Pistons Basketball (hereinafter, the “Practice Facility”). The Practice Facility will be located adjacent to the Arena on the property depicted on Exhibit B hereto (“Site A”) or such alternative site within the City of Detroit selected by PS&E (an “Alternate Site”). If the location of the Practice Facility at such Alternate Site would be permitted by law to be a public -3-

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facility owned by the DDA, as determined in DDA’s reasonable discretion, and is otherwise acceptable to the DDA and PS&E to be operated by Pistons under a concession agreement at such site, then such site is referred to herein as an “Alternate Public Facility Site.” In the event that the Practice Facility is on Site A, Site A will be incorporated into the Arena Concession Agreement and the Practice Facility will be connected by a walkway to the Arena and may be constructed above an estimated 600-unit parking facility to be developed and financed by OEEC on the site in accordance with the Arena Concession Agreement. All references to the “Practice Facility” herein shall not include any parking facility which OEEC may construct on the same site.

II.

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It is understood that costs will include all costs (“Costs”) of the Pistons Development Project, including the following: (i) all land acquisition costs; (ii) site development costs, including demolition, environmental remediation, public infrastructure and utilities; (iii) the specifications and designs for the Practice Facility and the Arena Improvements; (iv) costs of construction, equipment, furniture, and furnishings; (v) financing costs, including underwriting costs, fees, and expenses, and the fees and expenses of attorneys, market analysts, consultants, and the costs of credit enhancements, if any; (vi) capitalized interest during construction, debt service reserve funds and other reserve fund requirements (capital repairs, replacements and improvements, and deferred maintenance) attendant to financing; (vii) DDA administrative costs associated with monitoring the development and construction of the Practice Facility and the Arena Improvements, including internal personnel and third party consultants; (viii) out-of-pocket costs of the State, City, DDA and PS&E and its affiliates for attorneys, appraisers, environmental and other consultants, inspecting architects, and a disbursing agent, paid out or incurred in connection with the creation, negotiation, documentation, and delivery of all agreements and memoranda and other documents related to the design and construction of the Pistons Development Project; (ix) all costs associated with the issuance of bonds; and (x) such other costs and expenses as the Parties shall mutually approve, which approval shall not be unreasonably withheld. Costs shall include any costs described above whether incurred prior to or after the date hereof.

III.

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Costs of the Pistons Development Project

Ownership Structure

A. Little Caesars Arena Improvements The DDA will own all Arena Improvements pursuant to the Arena Concession Agreement, as same may need to be amended to incorporate the Arena Improvements in all necessary respects. Pistons will enter into a sub-concession agreement with OEEC to provide PS&E and Pistons Basketball with use rights for Detroit Pistons NBA basketball games and related activities and events in accordance with such terms as may be agreed upon by OEEC and Pistons. In addition, Pistons shall enter -4-

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into a joinder of the Arena Concession Agreement in a form reasonably satisfactory to the DDA and Pistons to commit to certain undertakings by Pistons for the benefit of the DDA consistent with the undertakings made by OEEC and/or the Red Wings with respect to insurance, indemnification, and related matters to protect the DDA from any liability resulting from the Pistons use of the Arena. B. Practice Facility

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If the Practice Facility is located on Site A or other Alternate Public Facility Site, the Practice Facility and the associated infrastructure and site improvements shall be a public facility owned by the DDA. If located on Site A, it is anticipated that DDA, OEEC, and Pistons will execute a supplement to the Arena Concession Agreement (the “CMA Supplement”) to incorporate the Practice Facility as part of the Little Caesars Arena development and to provide that Pistons will be a coconcessionaire solely with respect to the Practice Facility. Pursuant to the CMA Supplement, Pistons shall have exclusive right to develop, use, manage and operate the Practice Facility, subject to the terms of the CMA Supplement, and the Pistons shall be solely responsible for paying the concession fees set forth in the CMA Supplement. The activities taking place at the Practice Facility shall be directly related and ancillary to the Pistons operations, management and team activities and other entertainment events that occur at the Arena or any other purpose consented to by the DDA. The DDA shall work with the City of Detroit to amend the planned development for the Arena complex to annex the Practice Facility parcel into the parcel(s) comprising the current Arena complex owned by the DDA to create a single parcel owned by the DDA. In addition, the Pistons will commit to the DDA that during the term of the CMA Supplement, the Pistons (i) will play all of its regular season home games and post-season home games for each NBA season at the Arena, except in connection with any event where the NBA designates the Pistons as the home team at a NBA game played at a location outside of the Arena, (ii) will not enter into any contract or agreement of any kind to transfer the Pistons’ franchise if such transfer would result in the Pistons relocating to a location other than the Arena, and (iii) will not make a formal application to the NBA for approval to transfer the Pistons’ franchise to a location other than the Arena.

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If the Practice Facility is located at an Alternate Site that is not an Alternate Public Facility Site, the Practice Facility shall not be a public facility. In such event, the DDA shall request that the Detroit Economic Growth Corporation work with the City of Detroit and PS&E to identify and apply for appropriate and applicable tax abatements and/or credits.

IV.

Land Acquisition and Related Development

A. Little Caesars Arena Improvements

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The DDA owns the land necessary for the Arena and no additional land acquisition is required for the Arena Improvements. B. Practice Facility

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In the event that PS&E elects to locate the Practice Facility at Site A, OEEC will cause its affiliate which currently owns the land necessary for the Practice Facility to transfer Site A to the DDA pursuant to the Arena Concession Agreement. In the event that PS&E elects to locate the Practice Facility at an Alternate Public Facility Site, PS&E will cause such Alternative Public Facility Site to be transferred to the DDA at no cost to the DDA. Any land acquisition costs will be financed solely with the proceeds of the Concession Revenue Bonds (as defined below) and not from the Tax Increment Revenue Bonds (as described below). The DDA and the Pistons will work cooperatively in submitting a request to the City to vacate all streets, alleys and utilities that are required for the Practice Facility development.

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The Parties estimate that the total cost of the Pistons Development Project will be in the range of $67 to $95 million, including financing costs, but excluding debt service and coverage reserves, allocated among the two component projects as follows:

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Financing and Contributions

Arena Improvements Practice Facility Total:

$35 to 40 million $32 to 55million $67 to 95 million

A. Project Financing--Public Funds

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Tax Increment Revenue Bonds. The Parties anticipate that the DDA will refinance the outstanding Series 2014A Bonds and Series 2014A DDA Obligation with the issuance by the DDA of a new series of tax-exempt tax increment revenue bonds by the DDA (â&#x20AC;&#x153;Tax Increment Revenue Bondsâ&#x20AC;?) secured by a pledge made by the DDA of its Net General Tax Increment Revenues and Catalyst Project Revenues. In addition to refinancing the outstanding balance of the Series 2014A Bonds, the DDA expects to leverage the tax increment revenues to borrow additional funds to enable the DDA to finance $34,500,000 of additional costs related to the construction of the Arena and any other Pistons Development Project costs eligible to be paid under the DDA Act and the Development Plan. The $34,500,000 additional proceeds of the Tax Increment Revenue Bonds shall be disbursed by the DDA to pay eligible costs related to the construction of the Arena and any other eligible Pistons Development Project costs when incurred as construction progresses in accordance with the Arena Concession Agreement to the extent such costs are for Arena Improvements or otherwise pursuant to the CMA Supplement and the construction disbursement terms required by the DDA.

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Concession Revenue Bonds. In the event that the Practice Facility is located on Site A or any Alternate Public Facility Site, the Parties anticipate that the DDA -6-

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will issue taxable bonds in an amount not to exceed $55,000,000 payable solely from and secured by a pledge made by the DDA of the concession fees paid by PS&E (or its affiliate) under the CMA Supplement (the “Concession Revenue Bonds”). The proceeds of the Concession Revenue Bonds shall be disbursed to or for the account of PS&E (or its affiliate) as construction progresses in accordance with the CMA Supplement and the construction disbursement terms required by the DDA. The initial principal amount of the Concession Revenue Bonds will not exceed the funds required to finance the acquisition of land and construction, development and furnishing of the Practice Facility and costs of issuing the Concession Revenue Bonds, plus such reserves as may be required by the purchaser(s) of the Concession Revenue Bonds.

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The Tax Increment Revenue Bonds and the Concession Revenue Bonds (collectively, the “DDA Bonds”) shall be payable solely from the pledged revenues described herein. PS&E, or its affiliates, shall be solely responsible for all Costs not funded by proceeds of the DDA Bonds, including any construction cost overruns relating to the construction of the Pistons Development Project.

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It is anticipated that the Tax Increment Revenue Bonds will be repaid from the following sources:

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1. As security for the Tax Increment Revenue Bonds, an irrevocable pledge of annual property tax capture by the DDA pursuant to MCL 125.1664(6) (the “Catalyst Project Revenues”), subject to certain exceptions for future brownfield development projects in the same manner as structured for the Series 2014A Bonds to be applied to debt service on the Tax Increment Revenue Bonds in the same manner as structured for the Series 2014A Bonds.

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2. As additional security for the Tax Increment Revenue Bonds, an irrevocable pledge of the local incremental tax revenues captured by the DDA and available after payment of debt service on outstanding senior lien DDA bonds issued in 1996 and 1998 (the “Net General Tax Increment Revenues”), subject to reimbursement to the DDA of payments of such revenues exceeding scheduled amounts to be paid by the DDA during the term of the Tax Increment Revenue Bonds, such reimbursement to be made from subsequently available Net General Tax Increment Revenues consistent with the pledge made by the DDA to secure the Series 2014A Bonds.

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It is anticipated that the Concession Revenue Bonds will be repaid from the following sources:

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1. As security for the Concession Revenue Bonds, annual concession fee payments payable by PS&E (or its affiliate) pursuant to the CMA -7-

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Supplement (the â&#x20AC;&#x153;Concession Feeâ&#x20AC;?); such payment shall terminate when the Concession Revenue Bonds have been paid in full. The amount of the annual concession fee payments shall be determined based on the requirements of the purchaser(s) of the Concession Revenue Bonds.

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In addition to repayment of the DDA Bonds, any of the foregoing funds may be used for all costs permitted by the DDA Act, including but not limited to: costs associated with development of the Pistons Development Project and the establishment of appropriate reserves (including bond reserves, maintenance reserves, and capital reserves).

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Recourse to the parties herein in connection with the obligations under the DDA Bonds shall be limited to the payment obligations described above in this Section V.A. for which they are responsible pursuant to this MOU, the CMA Supplement, or any other agreement related to the contribution of public and private funds for the Pistons Development Project.

VI.

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In the event that the Practice Facility is located on Site A or an Alternate Public Facility Site, the DDA, OEEC and PS&E (or its affiliate) will enter into the CMA Supplement relating to the construction, operation and management of the Practice Facility. Pursuant to the CMA Supplement, and in consideration for the annual payment set forth in Section V, the DDA will grant to PS&E (or its affiliate) the exclusive right:

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A. To use, manage and operate the Practice Facility during the term of the CMA Supplement.

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B. To all revenues derived from the Practice Facility including but not limited to revenues and concessions from all events, activities and operations in or on the Practice Facility, including naming rights and other sponsorship and advertising, and to all intellectual property, including the right to sell, market, copyright, secure a trademark for or otherwise exploit the same, all of which will be more specifically set forth in the CMA Supplement.

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The initial Term of the CMA Supplement shall be for 30 years, or for so long as the Concession Revenue Bonds remain outstanding and as may be permitted by law, followed by twelve (12) additional five-year renewal options, in each case in favor of PS&E (or its affiliate) and upon the same terms and conditions as the initial Term. The annual payment set forth above shall commence upon occupancy and shall be paid until the MSF Bonds are paid in full. PS&E shall be entitled to assign its rights and obligations under the CMA Supplement to an affiliate. PS&E shall have the right to terminate the CMA Supplement prior to the end of its term upon prepayment of the outstanding principal, premium (if any) and interest on the Concession

CMA Supplement for Practice Facility

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Revenue Bonds, or if such Concession Revenue Bonds are not callable, then upon the funding of a defeasance escrow sufficient to pay the outstanding principal, premium (if any) and interest on the Concession Revenue Bonds on their first call date so they are no longer deemed outstanding under the terms of the bond resolution pursuant to which they are issued.

VII. Design and Construction Management

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In the event that the Practice Facility is located on Site A or an Alternate Public Facility Site, PS&E (or its affiliate) in consultation with the DDA, will develop minimum program requirements, designs, plans and specifications and construction delivery systems for the Practice Facility and in cooperation with OEEC will develop program requirements, designs, plans and specifications for the Arena Improvements, and will further define and finalize costs of constructing and developing the Pistons Development Project. The construction process shall comply with all laws, including applicable bidding and bonding requirements. In the event that the Practice Facility is located on Site A or an Alternate Public Facility Site, PS&E (or its affiliate) and the DDA shall agree to minimum requirements as part of the design of the Practice Facility. PS&E (or its affiliate) shall have control over the design and construction of the Practice Facility. In the event that the Practice Facility is located on Site A or an Alternate Public Facility Site, some of the material terms and conditions to be incorporated into an agreement related to the construction of the Practice Facility are attached to this MOU as Exhibit C.

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VIII. Community Benefits To ensure that the Pistons Development Project provides community benefits to the entire City, creates workforce development and training opportunities for City Residents, and provides recreational opportunities in the Cityâ&#x20AC;&#x2122;s neighborhoods, PS&E agrees that it will make the following commitments to the DDA and the City in the CMA Supplement or such other agreement as required by the DDA and City:

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A. PS&E will ensure that at least fifty-one percent (51%) of the workforce related to the construction of the Practice Facility are City Residents, that City Residents perform at least fifty one percent (51%) of the hours worked on the construction of the Practice Facility, in accordance with the requirements of Executive Order No. 2014-4 or any subsequent executive orders related to local hiring requirements. The requirements of Executive Order 2014-4 or a subsequent executive order shall apply to the construction of the Practice Facility regardless of whether or not such construction is considered to be a publicly-funded construction project.

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B. PS&E will use best efforts to ensure that at least thirty percent (30%) of the total dollar value of City contracts related to the construction of the Practice Facility are awarded to City based or headquartered businesses, in accordance with the requirements of Executive Order No. 2014-5 or any subsequent executive orders -9-

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related to local contracting requirements. The requirements of Executive Order 20145 or a subsequent executive order shall apply to the construction of the Practice Facility regardless of whether or not such construction is considered to be a publiclyfunded construction project.

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C. PS&E will use commercially reasonable efforts to maximize postconstruction employment opportunities with PS&E for City Residents.

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D. PS&E will support workforce development initiatives for City Residents by donating $100,000 to Detroit Employment Solutions Corporation.

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E. PS&E will partner with the Mayor’s Office to provide mentorship opportunities for young City Residents.

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F. PS&E will participate in the Grow Detroit’s Young Talent summer jobs program.

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G. PS&E will invest a total of $2,500,000 over six years in the construction, renovation and refurbishment of over 60 community recreational basketball facilities in the City of Detroit in partnership with the City of Detroit’s Recreation department, provided that before such investment by PS&E, the City must agree to a reasonable and mutually agreeable maintenance plan for such facilities.

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H. PS&E will host free youth basketball camps, clinics, and other events for City Residents to promote youth basketball and youth enrichment programs in the City.

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I. PS&E will develop a program to enable City Residents and youth to attend NBA basketball games in support of and in connection with community educational programs and initiatives, including by making available 20,000 tickets per regular season free of charge to City Residents and youth.

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J. PS&E will appoint and maintain a liaison to meet, communicate, and engage regularly with the existing Little Caesars Arena Neighborhood Advisory Committee or, with respect to the Practice Facility if located on an Alternate Site that receives a tax abatement from the City, any other committee created by the City for purposes of engaging local residents with respect to the construction of the Practice Facility, consistent with the City of Detroit’s community benefits ordinance, commonly known as Proposal B, regardless of whether the Practice Facility is considered to be a “Tier 1 Development Project” under such ordinance.

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DDA and City shall be entitled to appropriate remedies if the above obligations are not fulfilled. - 10 -

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VIII. Approvals of MSF

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The DDA will work with the MSF to obtain any required review or approvals needed for the DDA Plan Amendment and financing as outlined in this MOU, including approval of extension of the capture period of the Catalyst Project Revenues as required to refinance and increase the DDA Tax Increment Bonds to an amount sufficient to enable the DDA to finance $34,500,000 of the eligible costs related to the construction of the Arena and any other eligible Pistons Development Project costs as described herein.

IX.

Agreements and Responsibilities of DDA

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A. The DDA will prepare and submit to the City for approval an amendment to the DDA Plan (â&#x20AC;&#x153;DDA Plan Amendmentâ&#x20AC;?) to extend the term of the DDA Plan beyond its current expiration date of June 30, 2045 to support the issuance of the Tax Increment Revenue Bonds as described herein. Upon approval by the City of the DDA Plan Amendment, the DDA will submit the DDA Plan Amendment to the Michigan Strategic Fund for approval as required by Section 19(3) of the DDA Act for a Catalyst Development Project.

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B. The DDA Plan Amendment will expand the projects which may be supported thereunder to include the components of the Pistons Development Project as set forth in this MOU.

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C. The DDA agrees to continue to pledge the Net General Tax Increment Revenues toward repayment of the Tax Increment Revenue Bonds, subject to reimbursement to the DDA of payments of such revenues exceeding scheduled amounts to be paid by the DDA during the term of the Tax Increment Revenue Bonds, such reimbursement to be made from subsequently available Net General Tax Increment Revenues consistent with the pledge made by the DDA to secure the Series 2014A Bonds, and will cooperate in connection with the structure outlined in this MOU.

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Pursuant to the CMA Supplement, PS&E (or one or more of its affiliates) will commit to: (1) pay all Costs not funded by proceeds of the DDA Bonds, including construction costs overruns for the Pistons Development Project; (2) pay the maintenance costs and the costs of necessary capital improvements of the Pistons Development Project and (3) if applicable, pay an annual Concession Management Fee throughout the term of the Concession Revenue Bonds in an amount sufficient to pay the annual debt service requirements for the Concession Revenue Bonds.

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Pistons represent that Pistons (and its affiliates, as applicable) and OEEC have reached agreement on all material terms with respect to the Pistons relocating the venue for Pistons Basketball home games and related Pistons operations from

Agreements and Responsibilities of PS&E (or its affiliates)

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the Palace of Auburn Hills to the Arena commencing with the fall 2017 NBA season, as well as with respect to the transfer of Site A, as may be applicable, to the DDA necessary for the development of the Practice Facility. Pistons acknowledge and agree that the above representation and warranty is a material inducement to the DDA to enter into this MOU, that the DDA is relying on such representation and warranty, has changed and will continue to change its position in reliance thereon, and that the DDA would not have entered into this MOU but for such representation and warranty by Pistons.

XI.

Conditions Precedent

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The consummation of the transactions contemplated in this MOU are subject to the following conditions precedent, which conditions may be waived by subsequent agreement of the Parties hereto.

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A. Approvals by the DDA. The approval by the Board of the DDA of the DDA Plan Amendment, this MOU, the Arena CMA Amendment, the CMA Supplement, and the other agreements and documents described herein.

B. Approvals by the City. The approval by the City of:

a. The DDA Plan Amendment;

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b. Street vacations and zoning changes and such other governmental approvals as may be needed.

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C. Approvals by the MSF. The approval by the Board of the MSF of that part of the DDA Plan Amendment constituting the Catalyst Development Project and approval of the projects included in the Catalyst Development Project.

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D. Approvals by OEEC. Such approvals as may be required from OEEC under the Arena Concession Agreement or otherwise (i) to permit the refinancing of the Series 2014A Bonds by the issuance of the DDAâ&#x20AC;&#x2122;s Tax Increment Revenue Bonds to raise contribution of $34,500,000 of public funds to payment of costs related to the construction of the Arena and other costs of the Pistons Development Project as set forth herein and (ii) to amend or supplement the Arena Concession Agreement to permit the CMA Supplement and the other transactions contemplated by this MOU.

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E. Regulatory Approvals. The issuance of any and all federal, state and local orders, licenses and permits needed to complete the acquisition and construction of the Practice Facility.

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F. Issuance of Bonds. The issuance and sale of the DDA Bonds by the DDA to fund certain undertakings under this MOU. - 12 -

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G. Pistons Approval. The approval by the members and/or managers of Pistons (and/or any necessary affiliates) of the CMA Supplement and any other agreement that may be required by DDA or the purchasers of the DDA Bonds to complete the transactions contemplated by this MOU.

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H. NBA Approval. The approval of the National Basketball Association (“NBA”) of the Pistons’ relocation to the Arena. I. Satisfaction of all Conditions Precedent in MOU between OEEC and PS&E. All conditions precedent to the effectiveness of the Memorandum of Understanding between OEEC and PS&E have been satisfied and the documents completing the transactions outlined therein have been executed and delivered.

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J. Execution of Agreements. The execution by all relevant parties on or before September 30, 2017 of the CMA Supplement, appropriate amendments and/or supplements to the Arena Concession Agreement and all other agreements as may be necessary or desirable in connection with the consummation of the transactions contemplated in this MOU.

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This Memorandum of Understanding expresses the present understanding and intentions of the Parties and their respective willingness, upon the approval of the proposed financing structure and agreement, subject to compliance with applicable statutes, codes, ordinances and regulations and to necessary approvals by the Board of the DDA, City, PS&E, the MSF, and any other governing authority, to take all actions necessary to implement the proposed responsibilities. In addition, in the event that this Memorandum of Understanding is not executed by all of the named Parties, it shall nevertheless be deemed to express the present understanding of those Parties which have executed it. Signatories: CITY OF DETROIT DOWNTOWN DEVELOPMENT AUTHORITY By:_________________________________ Its:_________________________________

By:_________________________________ - 13 -

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Its:_________________________________

PALACE SPORTS & ENTERTAINMENT, LLC By:_________________________________ Its:_________________________________ 1

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EXHIBIT A

The Pistons Development Project

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A. Practice Facility

B. Arena Improvements.

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EXHIBIT B

Sketch of Location of Site A

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[See attached]

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Map

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EXHIBIT C

Material Terms and Conditions for Construction Administration

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(a) The development and construction of the Practice Facility should be coordinated and centrally managed as outlined in this Exhibit C; and

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(b) PS&E (or its affiliate) shall enter into a guaranteed maximum price contract for the construction of the Practice Facility, subject to the approval of the DDA, which approval shall not be unreasonably withheld.

General Concept. PS&E and the DDA agree that:

Practice Facility Design and Construction Process.

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(a) The DDA will grant PS&E (or its affiliate) full rights to construct and, in conjunction with the DDA, to supervise the construction of the Practice Facility. Except for funds to be provided by the DDA as specified in the MOU for this purpose, the DDA shall have no responsibility to pay for any part of such construction.

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(b) PS&E (or its affiliate) and the DDA shall agree upon the minimum requirements to be incorporated in the final design plans and specifications for the Practice Facility (the “Minimum Requirements”) on or before a date to be specified in the Concession Management Agreement (“CMA”). Changes or deviations from the Minimum Requirements approved by the DDA shall not be made by PS&E (or its affiliate) without the prior written consent of the DDA, which consent shall not be unreasonably withheld. The Parties’ firm intention is that the design and construction process shall be a cooperative, mutual endeavor in which the DDA and PS&E (or its affiliate) will work together and each will participate actively. The DDA shall also have the right to participate actively in all phases of the design and construction processes, including without limitation, the right to prior concurrence in all decisions with respect to all architectural programs, schematic designs, plans and specifications, interior design programs, and construction stages, which concurrence shall not be unreasonably withheld. The DDA recognizes that the concessionaire selected by PS&E (or its affiliate) also has the right to participate actively in the design and construction of the concessions facilities at the new Practice Facility, including the right to prior concurrence in all decisions with respect to architectural programs, schematic designs, interior design programs, and construction stages of the new Practice Facility to the extent that these would affect the concession facilities to be constructed by the concessionaire, which concurrence will not be unreasonably withheld. With respect to all instances where participation and decisions of the DDA and/or PS&E’s (or its affiliate’s) concessionaire are required hereunder, the DDA and PS&E’s (or its affiliate’s) concessionaire shall provide such participation and decisions promptly so as not to cause any delay in the design and construction of the new Practice Facility, but in any event, at least 48 hours before the expiration of any - 17 -

Memorandum of Understanding

CONFIDENTIAL EXECUTION VERSION

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deadline imposed upon PS&E (or its affiliate) by the architect for the Practice Facility or any contractor for the Practice Facility provided PS&E (or its affiliate) has delivered, within 36 hours of receipt by PS&E (or its affiliate) of any notice to PS&E (or its affiliate) from such architect or contractor, a written notice to the DDA specifying the nature of the participation or decision required and the requisite deadline.

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3. Approval of Contracts. The DDA shall be entitled to approve any subcontract for the construction of the Practice Facility in excess of the amount to be specified in the CMA, which approval shall not be unreasonably withheld. The DDA shall grant PS&E (or its affiliate) the right to approve any contract, which approval shall not be unreasonably withheld, proposed to be entered into by the DDA which is payable from funds provided by the DDA or PS&E (or its affiliate, as applicable).

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(a) The DDA shall not be entitled to initiate or require, without the approval of PS&E (or its affiliate), any change order to the construction contract for the Practice Facility.

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(b) All costs of change orders to the construction contract for the Practice Facility that are requested by PS&E (or its affiliate) or required by law shall be paid by PS&E (or its affiliate). Any change order authorizing work in excess of the amount to be specified in the CMA or which results in an increase or decrease in the Project Budget in excess of the amount to be specified in the CMA shall be approved by the DDA, which approval shall not be unreasonably withheld.

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5. DDA’s Failure to Consent. The DDA shall agree to reimburse PS&E (or its affiliate) for any increase in the Costs of the Practice Facility or any reduction in revenues available from the Practice Facility associated with the failure of the DDA to exercise any right of consent or approval granted to the DDA by this MOU, including any increased costs associated with the failure of the DDA to consent to proposed modifications of the final design of the Practice Facility, provided, however, such obligation to reimburse shall arise only if a court of competent jurisdiction determines in a final non-appealable order that the failure of the DDA to give its consent or approval, as the case may be, was not reasonable.

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6. Construction Disbursement Procedures. The Practice Facility Fund shall be held by a financial institution selected by the DDA and approved by PS&E, or its affiliate (the “Disbursing Agent”). Moneys shall be disbursed from the Practice Facility Fund by the Disbursing Agent to pay Costs of the Practice Facility upon satisfaction of the following conditions:

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(a) PS&E (or its affiliate) Concession/Management Agreement.

Change Orders.

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not

default

under

the

Memorandum of Understanding

CONFIDENTIAL EXECUTION VERSION

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(b) Presentation by PS&E (or its affiliate) of a requisition certificate that (i) specifies the Costs of the Practice Facility for which payment is being requested, (ii) affirms that the work for which payment is being requested is in place and that such work has been completed in accordance with the approved plans and specifications for the Practice Facility, and (iii) certifies that the moneys remaining on deposit in the Practice Facility Fund or irrevocably committed to be available for deposit in the Practice Facility Fund will be sufficient to pay the remaining costs of the Practice Facility.

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(c) Approval of the above requisition certificate as correct by the architect for the Practice Facility and by an inspecting architect hired by the DDA.

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