. g, . _ E, if #1:: _ a A :2; Egg: raw 1" It!" ‘1“ . I"'\ ‘ 0v “J 55' k’ 0 mm, .03.": Qfa" $ L . i ffiivpr? L PLACE IN RETURN Box to remove this checkout from your record. To AVOID FINES return on or before date due. MAY BE RECALLED with earlier due date if requested. DATE DUE DATE DUE DATE DUE imam; g3009 . , U .l v MM? 3 1492010 APR 1 72011 2/05 m/CIRC/DateDuejndd-pJS Plan B Paper _ Han, Hun Seok. 2007 BROWNFIELD REDEVELOPMENT TO AN ASSESSMENT OF A RECREATIONAL REUSE OF A PARCEL IN THE CITY OF DETROIT By Hun Seok Han A PLAN B PAPER Submitted to Michigan State University in partial fulfillment of the requirements for the degree of MASTER IN URBAN AND REGIONAL PLANNING Urban and Regional Planning Program ' I _. D l . > v n D l D D b D D D , . b D D D D D l D D .. a D l D D p D D p p , D 2007 , D Table of Contents I. Introduction ........................................................................................ 1 II. Redeveloping Brownfields .......................................................................... 3 A. Benefits ..................................................................................... 3 B. Role of Goverments ....................................................................... 6 C. Federal Brownfield Initiatives ............................................................. 7 D. Michigan Brownfield Initiatives .......................................................... 12 III. Reasons of Redeveloping Brownfields into Recreational Purposes. . . . . . . . . . . . ....18 IV. Method of Analysis of Case Studies ............................................................ 20 V. Case Studies ........................................................................................ 21 A. South Works, Wyandotte, Michigan ..................................................... 21 B. Kangwon Land, Jeongseon, Kangwondo Province, South Korea. . . ....25 C. Emscher Park, Germany ................................................................. 31 D. Summary ......................................................................................................................... 40 VI. Recommendation: Proposed Sites in the City of Detroit .................................... 40 A. Detroit Demographic ................................................................... 40 B. Proposed Sites ............................................................................ 46 C. Alternative Redevelopment Plan ...................................................... 49 D. Recommended Plan ...................................................................................................... 53 VII. Conclusion ...................................................................................... 59 *Bibliography .......................................................................................... 60 I. Introduction The reuse of previously developed land is not a new practice. Federally led Urban Renewal efforts in the 19603 attempted redevelopment of the larger urban cores.l Urban areas and their economic development organizations have had lengthy experience with the intentional reuse of their lands. Although cities, and to a lesser extent other areas, have been reusing land for many years, the context for this reuse has changed over time.2 Plant closings associated with the restructuring of the US economy from the 19705 on as well as retail market and housing location shifts have all helped to generate an array of underutilized and potentially contaminated sites, commonly known as brownfields.3 According to the Michigan Department of Environmental Quality (MDEQ), brownfields are “abandoned, idle, or underused industrial and commercial properties where redevelopment is complicated ”4 Brownfields occur in older communities where former by real or perceived contamination. industrial or commercial operations pose environmental issues that have stymied attempts to reuse the land.5 Brownfields do not generate tax revenues, represent lost development opportunities, contribute to urban blight, and offer only burden to the local economy.6 1 Paul L. Knox, Linda M. McCarthy, 2005. 2 KM Chilton, 1998. 3 Collaton, Elizabeth and Charles, Bartsch, 1996. 4 MDEQ, 1997 5 National Governors Association, 2000 6 William w. Buzbee, 1997 .r.‘ ‘,.‘r - 1.- - - .. - .‘r i. t t t E tl‘i.-.‘v ‘1‘?! .Il.. It'll. In! 3.3.2.11. 1., I..I. Tillie-321’»! 'l‘l‘AC .‘l.l Complications in redeveloping brownfields may arise from the conditions of the sites themselves, from their locations, or from actual contamination or even from the stigma associated with the possibility of contamination. Most of the difficulties of brownfield redevelopment come from the legal and financial issues affecting the projects.7 Despite these potential problems, there is great interest in reusing these sites because their location may offer exceptional private profits from successful redevelopment, while also contributing to public economic and community development goals. Therefore, the city planner should consider brownfields’ redevelopment to improve the economic and social environment of communities. Governor Jennifer Granholm is focusing on brownfields’ redevelopment plans.8 S be is especially interested in implementing a policy that will transform former factories and industrial sites into parks and recreational sites. In my paper, I will research the reuse idea with three case studies as well as government initiatives (federal, state, and local levels) for brownfields redevelopment. Then I will make a propose redevelopment plan for selected sites in the City of Detroit with this idea. 7 Council for Urban Economic Development, 1999. 8 Interview with Emily F leury (Policy Advisor, Governor’s office) I ‘. ‘ .‘. - .E U ‘ .t -. '1‘- ‘1 ‘v. ‘- I ‘i'ltl‘-.’it.mainlinlfllnll. Illtill It! IV-II-.II. 31.-.]!!! ll, .7 in! -1. II. Redeveloping Brownfields Brownfield redevelopment is reusing brownfields to other uses, such as commercial, recreational, and residential area. Redeveloping brownfields will bring several benefits to the community. The government gives some initiatives to a developer such as tax incentives because redeveloping costs are so high. A. Benefits Brownfields redevelopment has several potential benefits to the community and the private sector that are unique to brownfields. 1. Benefits to the Community9 \/ Recovegi of tax base: When an industrial or commercial site is closed or abandoned tax revenues are significantly reduced, if not eliminated. Bringing business back to these sites puts them back on the tax roles. / Job Creation: Redeveloping brownfield sites create jobs in the urban core city and help to revitalize the surrounding neighborhoods. / Reuse of existing infrastructures: Unlike an undeveloped, “greenfield” site, brownfield sites have existing infrastructure. The availability of sewer, water, roads, and utilities may result in substantial cost savings, as compared to a 9 City of Muskegon I I I I ‘ ‘ ‘ ‘ 1‘ ‘ 1 1 1 .1 1 1lll 1i 1 I 1 1 (III A]. III ‘. greenfield10 site. / Preservation of open space: Redeveloping abandoned or idle industrial and commercial properties preserves open space by reducing urban sprawl. / Environmental improvements: Abandoned industrial and commercial properties present unknown risks to public health and the environment. Any potential risks are evaluated and addressed during the redevelopment of a brownfield site through the use of exposure controls and/ or cleanup, resulting in a cleaner and safer community. 2. Benefits to the Private Parties11 Brownfield redevelopment also benefits the private parties that are involved in the transaction. The following describes the potential benefits for the major players in a brownfield redevelopment project. \/ Lending Institutions: Lending institutions benefit because redevelopment means new opportunities for business. Under today’s legal and regulatory climate in Michigan liability concerns regarding brownfield sites are minimized, thereby reducing the risk to the loan collateral and the borrower’s 10 Greenfield: A project located on semi-rural property that is undeveloped except for agricultural use, especially one considered as a site for expanding urban development. 11 D.S. Card and RH. Kummler, 1999 l:A-Illl.r ‘1. I en! - ‘w ‘1 I .‘. ‘i -. ‘ ...T ‘. ‘.‘...i.@..‘ .‘ ’.,E-frld'.l.1rli.ia?ldvi it (by. i llililt. illll 1.! ll 1 business plan. Buyers and Developers: Buyers and developers benefit directly from the broader selection of properties from which to choose. Many brownfield sites are less costly than greenfield and the funding and tax incentives that are available for brownfields often makes the brownfield site very competitive. The Property Owner or Seller: The property owner or seller may be either private or public. For the public seller, brownfield redevelopment provides the obvious benefit of returning unused or underutilized property to productive and revenue-generating use. For the private seller, it offers the opportunity to realize a financial return on a property that might otherwise remain dormant. Environmental Regulators (N on-Governmental Organizations): Environmental regulators are direct beneficiaries whenever a successful development plan becomes the environmental remedy of a contaminated site. This helps meet the regulatory goal of cleaning up the environment. Contractors and Construction Firms: Contractors and construction firms benefit from construction of new facilities on the redeveloped site or rehabilitation of existing buildings. This activity represents jobs and direct economic impact on the community. \/ Real Estate Brokers: Real estate brokers have the opportunity to contribute to the sale of property as well as to realize higher commissions for surrounding property. In addition, Michigan communities can offer tax increment financing specifically for brownfield projects, tax credits against Michigan’s single business tax for sites located in a brownfield zone, and offer loan and grants for site investigation and development activities. B. Role of Governments12 State and federal environmental laws and policies over the past few years have focused on how to turn brownfields into opportunities for investment. Redeveloped brownfield sites attract new business, create jobs, improve the neighborhood, and increase the local tax base. The regulatory changes include defining legal liabilities (eliminating some potential lawsuits), extending financial protections to lenders involved with brownfield redevelopment, and offering grants, low interest loans and tax incentives for clean-up of contaminated sites. Local governments can take a pro-active role in redeveloping brownfield properties. They 12 Municipal Research & Services Center of Washington l ilillll ill II I. ill. -l II- "lI‘ ‘l-l‘l‘ltl‘i‘.l‘ l... 14,1 (I ll!!! ...Ill.l.lr.l.l..4.lf|&!ldl l 1.1:. 1,141.1 ‘. 1’. Imuv..l'.,il can suggest reuse sites to potential businesses and developers. Local governments can coordinate funding, assume some financial responsibility for site remediation costs, offer incentives, and serve as links between private developers and state/ federal environmental regulatory agencies. Some local governments have publicly acquired brownfield properties and handled the redevelopment on their own. C. Federal Brownfield Initiatives 1. Efforts to Reduce Liability Concerns A critical issue that continues to be debated is the willingness of US. Environmental Protection Agency (EPA) to sanction states’ efforts to waive liability for sites involved in voluntary cleanup programs. Although state programs offer developers and lenders reassurance that a state will not hold them liable for contamination after cleanup is complete, the EPA still has the authority under Superfund to intervene at these sites even if they have been certified by a state’s voluntary program. Prospective purchasers and lenders are left with the possibility that a site could be the target of a future federal enforcement action. The federal government has begun to address possible liability risks under Superfund by entering into Superfund memoranda of agreements (MOAs) with several state environmental agencies. The agreement between EPA and the state defines each agency’s roles and responsibilities i i... I 9.....- .1"?. - ‘3- - ‘7 ‘w. £19.... 161‘. I... .‘ I'm ’1‘1‘: alvl...£.!ld..1lfl.liil.qllflcllu.i Mrljlg...li.1‘lwl‘m I... iii..‘l‘...‘..".l‘.1Q.11“1"."’.r.’-".v'"1“'1'"""O-‘w at a site. It certifies that if a site has been cleaned up to an acceptable standard under a state’s voluntary cleanup program. The EPA will intervene only if "there is an imminent and substantial threat to public health and the environment."13 2. Efforts to Address Lender Liability The issue of lender liability has been addressed by federal legislation. The original concern arose from a 1986 amendment to the Superfund law that excluded lenders from liability if they did not "participate in the management" of a facility. The statute did not clearly define "participate," and the definition was left open to varying judicial interpretations of lenders’ activities at brownfield sites that could make them a liable party. The passage of the federal Asset Conservation, Lender liability, and Deposit Insurance Protection Act of 1996 provides increased certainty for financial institutions by amending the Superfund law to eliminate a range of activities that could hold a lending institution liable at a site. This legislation is a major step toward removing some of the uncertainty that lenders face in investing in brownfield sites.14 Also, on January 11, 2002, President Bush signed the Small Business Liability Relief and Brownfields Revitalization Act. The Brownfields Law amended the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA ‘3 Allyn Finegold, 1997. 1“ Id. iili ll? i. ill I, .‘u 4'. I ‘1‘ ‘, ¢ ‘7‘! ‘1... ‘l‘leltl‘ml‘ml‘.l‘ l‘-.l‘.1l-.rl.lr lair if.- -.filllrlils -.II...la1.O.-.1.I...l.l gal-(l or Superfund) by providing funds to assess and clean up brownfields; clarified CERCLA liability protections; and provided funds to enhance state and tribal response programs. Other related laws and regulations impact brownfield cleanup and reuse through financial incentives and regulatory requirements.15 3. Federal Resources for Redevelopment Federal agencies are offering financial assistance to state and local governments for brownfield redevelopment in the form of grants, loans, and tax credits. Although some of these programs are not targeted specifically to brownfield development, their flexibility allows the funding to be used for activities related to site redevelopment-16 A major part of EPA’s Brownfields Action Agenda which was announced in January 1995 is a pilot program that has provided funding to seventy—six states, cities, and local governments. Each of these entities has received up to $200,000 to set up a process for identifying brownfield sites and developing cleanup and reuse plans. The first phase of the pilot program focused on helping state and local governments perform initial site assessments. The agency did provide twenty-five additional projects in 1997 up to $200,000 each to facilitate cleanup activities. Qualified projects "test 15 EPA 16 See Id. 14 -llI|llIIlll.liIYl.l-.liiii‘lcl‘lfl.filfiw-tl...‘l‘ ' a. .‘ ‘v Iv .r. Ir ‘r. .F. ' .E- ii a U f- 10 redevelopment models, direct special efforts toward removing regulatory barriers without sacrificing protectiveness, and facilitate coordinated environmental assessments and cleanup efforts at the federal, state, and local levels." EPA funding to support revolving loan funds, state voluntary cleanup programs, and an expanded site assessment initiative will also be allocated to state and local governments during fiscal 1997.‘7 The US. Department of Housing and Urban Development (HUD) also operates financial assistance programs that support brownfield development. The agency’s Community Development Block Grant (CDBG) program distributes formula-based funding to cities that can be used to finance the rehabilitation of privately owned buildings and sites and pay for services such as site inspection. Cities can use the funds for grants, loans, loan guarantees, and technical assistance. CDBG funds can be used to cover the costs of environmental assessments and cleanup actions if the activities meet the national objectives of the HUD program. The objective includes providing benefits to low- and moderate-income populations and contributing to the 171d 11 prevention of urban blight.18 HUD-designated "empowerment zones" and "enterprise communities" enable developers of brownfield sites to derive additional benefits by redeveloping a site located in one of these areas. These targeted areas receive federal tax incentives that help them attract private investment and other economic activity. Many recipients use these HUD resources to address the barriers to brownfield development.19 The US. Department of Commerce’s Economic Development Administration (EDA) administers three funding programs that can be accessed to encourage redevelopment of brownfield sites. The agency’s Technical Assistance Program provides small planning grants for activities such as identifying potential brownfield sites and areas for further assessment, as well as performing marketing analysis of an area or site. EDA’s Economic Adjustment Program provides funding to establish or expand revolving loan funds in economically depressed areas. Recipients work with private lenders to make low-interest loans to area businesses as an incentive to locate in targeted areas such as brownfields. This program also provides funds for 191d .l...l...'.‘ .‘i‘ff 12 improvements to public infrastructure in depressed areas. The EDA Public Works Program provides grants to local governments to assist distressed areas in attracting new industry. These grants are used primarily to undertake improvements to infrastructure and construct public facilities}0 D. Michigan Brownfield Initiatives21 Michigan's Brownfield law is designed to encourage and assist developers who want to return property to productive use more quickly and at a lower cost than before, while still protecting human health and natural resources. Owners and operators of contaminated sites are no longer required to pay for cleanup actions unless they caused the contamination. Flexible cleanup standards give developers the option of proposing a solution to historical contamination based on future use of the property. The Michigan Economic Development Corporation and Department of Environmental Quality are working aggressively with property owners, buyers, developers, lenders and local government to help expedite redevelopment projects. The Michigan Department of Environmental Quality (MDEQ) offers grants and loans for environmental assessments and cleanups at properties with known or suspected 20 Id. 21 Michigan Department of Environmental Quality 13 contamination. Funds are targeted to projects that promote economic development and reuse of Brownfield properties. The MDEQ can assist developers with efforts to: V Revitalize abandoned industrial properties. V Attract developers to Brownfield sites. V Leverage capital for Brownfield Redevelopment Authority (BRA) projects with loans. V Avoid urban sprawl by reusing properties with existing infrastructure. 1. Who Can Apply? Applicants may be Michigan local units of government, BRAs, or other public bodies created by or pursuant to state law, including state-funded schools and universities. 2. Types of Properties Eligible properties are sites or facilities with known contamination, properties with redevelopment potential, and suspected contaminated, or waterfront properties with significant redevelopment proposals. 3. Eligible Activities in Project Proposals V Environmental evaluations/ assessments including PCB, asbestos, and lead- based paint surveys. V Interim response activities. 14 V Baseline Environmental Assessment (BEA) preparation. V Due Care22 Plan preparation. V Due Care response activities. V Due Care disclosure requirements. V Remedial actions necessary under Part 201, Environmental Remediation, of the Natural V Resources and Environmental Protection Act, 1994 PA 451, as amended (N REPA) and for redevelopment. V Demolition as a response activity to reach contaminants or public health and safety issues. V Property acquisition, public infrastructure, or functionally obsolete demolition at Great Lakes and riverfront properties with Waterfront Redevelopment Grants. 4. Primary Eligibility Criteria V Funding is generally limited to available funding up to $1 million per applicant 22 In accordance with Section 20107a of NREPA, owners of property who have knowledge that the site is a facility (as that term is defined in Part 201) have certain Due Care obligations. Due Care obligations pertain to issues such as avoiding exacerbation of existing impact, mitigation of unacceptable exposures, and providing notice of abandoned or discarded containers. Under the proposed rules for compliance with Section 20107 a, written documentation will be required to be maintained and provided to the State of Michigan upon request. I! i ll! fill-f if";fffft‘-fffd-jl‘lllw-J-J-IQiQIU-lf It‘l‘ ll. 101' l‘il. 1' 1.1010111. 1‘1... - 15 per year for each grant or loan. All proposed response activities must be pursuant to Part 201 of the NREPA. Property owners must provide access to the MDEQ and contractors. Cleanup grants may be used at properties with known contamination and specific redevelopment proposals, where measurable economic benefits will exceed the grant amount. Assessment grants and cleanup loans may be provided at properties with suspected contamination where there is economic development potential based on a planned reuse. Grants may not relieve a liable party from environmental responsibility. Waterfront Redevelopment Grants require significant redevelopment proposals and at least 25% local match commitment. 5. Michigan Brownfield Redevelopment Grants and Loans Loan Terms / Interest rate is 50% of the prime rate (currently 2%). 15-year payback period, beginning with a 5-year grace period with no interest or payments. Loans may be repaid using tax increment financing through a BRA. Cleanup loans funded by the USEPA are subject to federal requirements. I II! I .I ii.Ii-II.I l iii I I‘Il‘l i-I‘iii‘ l‘il‘ll‘ilflil‘llill' I' l‘ it l‘s 5‘ 1.--1‘ 16 6. Types of Available Grants and Loans, Citation, and Funding Sources V Brownfield Redevelopment Grants: Part 196 of the NREPA and PA 252 of 2003; 1998 Clean Michigan Initiative Bond. V Brownfield Redevelopment Loans: Part 196 of the NREPA, PA 252 and PA 253 of 2003; 1998 Clean Michigan Initiative Bond and $1 million USEPA Grant. V Waterfront Redevelopment Grants: Parts 196 and 795 of the NREPA; 1998 Clean Michigan Initiative Bond. V Site Reclamation Grants: Part 195 of the NREPA and Rules; 1988 Environmental Response Fund Bond. V Site Assessment Fund: Part 195 of the NREPA and Rules; 1988 Environmental Response Fund Bond. V Revitalization Revolving Loan Fund: Part 201 of the NREPA; funded by paid loan obligations. 7. Impact of Brownfields Redevelopment in Michigan” In March 2002, MDEQ had conducted a survey in terms of the result and impact of brownfields redevelopment. 33 municipalities located in Grand Traverse, Kalamazoo, 23 MDEQ, 2002 i I! l. 1’ till it... ...-'1‘! -010.- .0. L010. 0 t... llrl‘ 0.10.10. 10. 1001010101010l010l010110-l0 . -.0 -..0. -..0 ..0. 1.0 .0 .0 17 Kent, Macomb, Marquette, Saginaw counties, and the City of Detroit, had the survey. The key measures of the survey were the number of brownfield redevelopment projects that occurred in the municipality as a result of the amendments, the amount of private investment associated with these propjets, and the number of jobs created. Results of our survey indicate that the amendments have continued to produce very positive effects on Michigan’s economy. Projected development in the 33 municipalities, as a result of the June 1995 amendments (Part 20124), totaled over $4.06 billion in private investment, an increase of 15 percent over the 2001 figure of $3.53 billion. Since June 1995, over 11,932 new jobs, representing an increase of 24.7 percent over the 2001 number of 9,568 jobs, have been reported. lmestment in Brownfield Properties Due to the 1995 Part 20! Amendments 54.000.000.000 33.000.000.000 32.000.000.000 $1 000,,000000 1996 1997 1999 2000 2001 2002 25 24 On June 5, 1995, major amendments to Michigan’s primary environmental cleanup law, Part 201, Environmental Remediation, of the Natural Resources and Environmental Project Act, 1994 PA 451, as amended (Part 201), were enacted. 25 See Id. 23 l lI.IIII-;I’IIII-.I0, 01.01-01.00 10101010.]...0I010 101...! 1.01.01.01.010 1.0 - -.0 ...I. 10.10 - '0.U'G‘OOGOOUO’UO'vavvvv-o- 18 Number of Jobs Created at Brownfield Properties Due to the I995 Part leI Amendments 12,000 10,000 8,000 6,000 4,000 2,000 1996 1997 1999 2000 2001 2002 26 III. Reasons for Redeveloping Brownfields into Recreational Purposes Many cities in Michigan have a history of heavy industrial commerce. Much of this industry originated with metal foundry operations that supported the national defense and the automotive industries, both of which grew tremendously in the 19405 and 19505. Now, however, most manufacturing industries are located in suburban areas or have moved overseas because of environmental issues and operating costs. Therefore, the relocation of many manufacturing factories makes result in brownfields in Michigan. The role of redeveloping these brownfields is charged to local and state governments. All of the brownfields have not redeveloped to commercial, recreational, and residential purposes. 26 1d. .....01111010010010.000010ll010-10110 I0101010.10.1.01.0 .0 l ..0 0 1.0 l0 1 0 . 0 - 0. l 0 . 19 We can easily see many brownfields nearby our community such as in the City of Detroit. Developers said that the reasons for this are that the government does not have enough budget to redevelop brownfield sites, and nobody wants to pay cleanup costs and take a responsibility in terms of risks at brownfield sites. Now, the government gives a lot of incentives to investors, and most brownfield sites are redeveloped to commercial uses to gain economic benefits. However, to create an attractive ‘Cool City’ where people will enjoy living, working and spending their free time, a recent trend of redeveloping brownfields is to convert these properties into recreational facilities, such as parks, museums, casinos, and sport complexes. The development of brownfields into recreational facilities offers many advantages, including substantial environmental and economic benefits. Cleanup criteria are less stringent for recreational areas than for residential use. Zoning issues are also eased. If the property is in an urban setting, the creation of green spaces is usually well-received by planning boards. Finally, turning idle pieces of industrial properties into recreational facilities adds commercial as well as recreational value to a community.27 27 Thomas Fralick, 2002 It -010-0714'. ...-11.010101010101010. 01 -010- 0101010101010.1010101101010 10 10.10:?! -0 101010101010. 01.01 20 IV. Method of Analysis of Case Studies Using a case study, we can have an opportunity to think about problems and see whether we can reach a well-supported conclusion. It also gives us an opportunity to gauge our sense of prioritization and judgment. The method of analysis includes examining a group of case studies according to: l J \/ demographics of the community prewous uses, size of the parcels, character of the new structure, number of jobs created from new development, cost of redevelopment and partnership, and economic or social impacts. The case studies included are Wyandotte (Michigan, United States), Emscher Park (Germany), and jeongseon (Korea). The second step of the method of analysis is to compare what we learn from the case studies to Detroit, Michigan to determine what the characteristics a potential site in Detroit should have to be successful. .1 liiii-‘i‘k‘v ‘1‘}.--‘Vl‘vll!1‘1.‘|‘29 The City of Wyandotte is located southwest of Detroit, Michigan. The population is 662,563 (Congressional District 13, 2000), and the median household income is $31,165 (less than the US. median of $41,994). The unemployment rate is 7.3%, which is same rate to the City of Detroit.” 2. Previous Uses BASF Corporation’s South Works property was a manufacturing and chemical site for 28 Brownfield Golf.com 29 Google Maps 3° US. Census, 2000 22 more than 80 years. This was developed initially in 1895 and has been used for steel making, silver smelting and ship building as well as a variety of chemical operation. Not surprisingly, contamination to the soil occurred over the years. BASF acquired the property in 1969, phased out operations in the 19808 and over the next 10 years razed all structures on the site. 3. Size of the Parcels The size of the parcels is 84 acres and the zoning of the site is a recreational unit district (RU). 4. Character of the New Structure In 1996, the property was transformed into a park, a golf course, and a riverfront walkway. The park opened with hundreds of newly-planted trees, plenty of green spaces, riverfront observation platforms, and a rowing club launch ramp. The golf course opened to the public and is managed by the city. 5. Number of Job Creation from New Development During the redeveloping period, a few hundred daily workers were hired. Currently, the golf course employs 25 to 35 people. 6. Cost of Redevelopment and Partnership BASF Corporation has committed $460,000 per year for groundwater monitoring and l-.l1ll1l|. ill]... II. II . 11‘ ‘l‘l‘l‘ul‘l .& , l 1|. . I- . l 1 111.1 01*. 1‘. ‘ 0. t. .1... ‘v .0. {I‘l‘i‘ 1‘1.‘|€1¢ (1‘..- 1.0.1. 1. . 1 t t f .. ‘1‘. .. 23 treatment. For park development, the city of Wyandotte and BASF Corporation entered into a lease agreement that allowed the city to develop the property while BASF maintained ownership. BASF donated $2 million to assist in the redevelopment and the state awarded environmental and recreational development grant worth $1.5 million. For golf course development, $5.2 million was invested via local revenue bonds. 7. Economic or Social impacts The golf course contributed to the local tax base (Sales 6%, and Income 3.9%), and should increase land values in the vicinity. The golf course purchases goods and services, draws consumers into the area, and provides some opportunity for employment. Fund raising opportunities are anticipated through charitable events that may be held at the golf course. Increasing land values in the vicinity led to increase in property taxes. For example, the property tax of 3301 Biddle Street which is 0.3mile far from the Wyandotte Golf Course was around $2453 in 1994, and the property tax of the site had increased to $5379 in 2004.31 An almost 220% increase. 31 Office of City Assessor at the City of Wyandotte .‘r ‘1 1‘1. ‘u.‘.l‘.lflllt.li‘ 1‘...(1‘ -4. -f f ('1 if. 1f 24 33 32 Tampa Bay Regional Planning Council 34 B. Kangwon Land, Jeongseon, Kangwondo Province, South Korea35 1. Demographic Jeongseon is located in Kangwondo, an east province of South Korea. The population is 49,111 (2002), and the main industry is coal and iron mining. Currently, fifteen coal mine companies are operated. The median household income was $900 per month, but the current median income is about $1500 per month, after the Kangwon land was redeveloped. The unemployment rate was 6.8% before the development, and the unemployment rate is 3.7 percent in 2004, which is very similar to Korea’s 34 US. Geological Survey (http://wwwglsc.usgs.gov > 3" Kangwon Land l1. I.lll:“l.l.1‘ -‘v ‘1‘ -.I. (w it 1'. -... -f -..-.15. 101‘... 101‘ 11-11...- 1‘ -01! lentil... I. (11615! -flal 1 26 unemployment rate, 3.5 percent.36 37 2. Previous Uses Kangwondo Province had long prospered as a result of its mining industry. In the late 19903 the economic state of the region began to decline, as mining dwindled. At this time, the Kangwon Land Resort was planned in an effort to revive and provide development opportunities for the troubled region. A series of development programs were put in place, beginning with the opening of Korea’s first and only casino for native people in 1998. 36 Jeongseon-Gun 37 Mapzones.com 27 3. Size of Parcels The size of parcels is 6,600,000 m2 (1631 acres) and the zoning is a recreational industry. 4. Character of the New Structure The Kangwon Land has developed into a recreational park. So, many structures were constructed for convenience of visitors. / / Hotel: 2.5 acres, 24 stories, and 477 rooms Casino: 0.3 acre, 960 slot machines, and 132 gaming tables Theme park: 0.24 acre, 2 stories below and 5 above the ground/ include cinema, adventure area and Kid’s World Golftel’g: 0.5 acre, 1 storey below and 5 above the ground with 199 rooms Golf course: 24.7 acres, Par 72, 18 holes, 7200 yards Dormitory: 700 rooms Skiing slopes: 165.5 acres, 22 slopes Condominium: 400 rooms 5. Number of Job Crated from New Development Since 1998, Kangwon Land hired 2420 employees, and more than 50% of total employees are residents in Jeongseon, Kangwondo Province. 38 Golfteli It is kinds of golf resorts or hotel. The guests must use the golf course. 0111110111011. ‘1... 0111.11.10, . Cl. 11‘111‘1 14.- 710.11. :01- .1 28 Total Employees ‘ Local Employees Rate(%) Kangwon Land ’ i i 2969 1643 55 Sister Companies 871 835 96 Total 3840 2478 65 6. Cost of Redevelopment and Partnership 39 The Kangwon Land Corporation was established by the government because of managing the Kangwon Land Resort. redeveloping the project. investors for making funds. and the government invested 51% of the fund and the private sector 49%, so the government has the ownership of Kangwon Land. 7. Economic or Social impacts Therefore, there is no partnership for However, the government sold 49% of total bonds to private The total cost of redevelopment project is $1.18 billion After redeveloping the Kangwon Land, the local economy was improved because of taxes. The Kangwon Land’s annual revenue is $678.40 million, and the portion of the property tax to the local government is about 3%. 2% of jackpot amount is going to the local government. 39 See Id. 35 Also, the sales tax of cigarette and In addition, Kangwon Land ill-0,1.ls‘1 lftll‘lhft‘ I‘ll-tied]- ‘11.... ‘Ill‘ll‘lt. ‘lt‘llc- tfir. ‘11. ‘1‘11 .' 1 ' 1.. ‘i‘it‘ 1...-. ‘ . 1‘. 11'. 1'. l' 29 established a scholarship for children of local residents, donates a lot of money to homeless and patients who has pneumoconiosis, and hold events for local residents.40 Since Kangwon Land had started their business in 2000, Kangwon Land has paid back to the local society about $1.2 billion for donate and local taxes.41 However, some residents complain about worse education standards. 42 4° Id. 4‘ Id. ’2 Korean Broadcasting System (KBS) (http://news.kbs.co.kr> 11:11.0-lr01rt.01....1it1t110. .I.--Q1-Q111.t..111. (1-11.... 11.10.11 4.1.1616 .11..¢l-.11.( .11.! J!!! -1 1' '11:: ....'..'.""""VV “ 43 Id. 4" Global Kangleung dot Com 30 $17-1 ‘1‘1‘1 1.! illilfi‘ ‘1II; . tel Wildlil.‘ it .....1111.111...-..I.1.1C1..1C 101.101.011.01}... -01..Q11.-011C .0. -.-.1'1-‘ 1'. 1'. 31 C. Emscher Park, Germany 1. Demographic The Northern Ruhr district (Emscher Zone) is located on the west side of Germany. It is a densely populated, dilapidated industrial region. The population is 2 million in 198,175 acres, which are deteriorating more and more with ongoing social and economic development.” The median household income (2002) in Ruhr district was $19,820, and the unemployment rate was 13 percent, which is a little higher than Germany’s overall unemployment rate (2004) of 11 percent.46 . London 0 ,. j -- j. . a Eh‘SCHER PARK 1"} ‘I l- '- Civlvnony " i I u ‘,l.11xv111htiutq ‘ ’.-. .... ' Mumch 47 45 European Academy of the Urban Environment (http://wwweauede) 46 Ruhrsite (http://www.ruhrsite.de> 47 Green Urbanism and Ecological Infrastructures ii-iirififl0 30.1-.1Q1r...-il. .101 1.1.1.10 1.. .JI...1I.|-I.|J!11.‘ ..‘.11i.1.1‘.1' 1. .-. .10 ... 1'. 1|. 32 2. Previous Uses48 The Ruhr Valley in western Germany was once the country’s industrial heartland. Its coal mines and iron and steel mills powered the military-industrial machine during two world wars, and was the engine for the German “economic miracle” during the 19505 and 19605. However, by the 19703 the international markets had begun to change and the region’s industries were becoming less competitive. Mines began to close. Factories that had operated night and day fell silent. Their gates closed and they became brownfield sites in need of restoration. 3. Size of Parcels"9 The size of the site is about 79,000 acres, and the zoning transformed to a recreational and green space. 4. Character of the New Structures50 / Shrubbery garden House Ripshorst: Shrubbery garden House Ripshorst is a new park in the Emscher Landscape Park on an agriculture place, just in the middle of the town of Oberhausen. It will be a park, which shows the historical development and the beauty of the trees in this area from before the 4“ LaBelle, Judith M., 2001 49 Id. 50 Lethmate, Gudrun and Spiering, Harald. .- II §.: ‘. ‘T‘r‘w. ‘1 ‘u... Ah15u11‘- .ri1.....f....1....1911 0. 101.0... 1' ...0. “I.1..011¢vl1¢ 18.110110 ...I. .d. .I. .10 ... 1' ... 33 ice age up to now. One of the important parts of this park is a new bridge for hikers and bikers over the Rhine-Herne-Shipcanal. The park contains the “House of Nature” and since 1999 this house has been the site of the Central Exhibition of the Emscher Landscape Park. Duisburg-North Landscape Park: The landscape park in North Duisburg is an outstanding example of a landscape park shaped by industry. The heart of the park is a disused Thyssen Steelworks - a unique historic setting, and now a place of industrial heritage and at the same time, a venue for different leisure-activities. It covers about 494 acres, mainly brownfields. The conservation of testimony of the industrial era and the growth of spontaneous vegetation play a major role in the parks design. Combining these with new design elements formed a park that can be seen to embody a new direction in European garden art. Information boards and signposting indicate various routes around the park (including the Emscher Park Cycle Parkway), such as the industrial history and natural history trails. Garten Osterfeld - OLGA Park — Oberhausen: The OLGA Park in Oberhausen is yet another example of the transformation of an industrially formed landscape into an industrial landscape park. New routes and bridges link the 1.1 {3.3.4.1 ‘1‘!‘. qt.‘l‘1¢l‘..1€l£1.fl11£i€l€ fil‘. .... a..1f..1m..lt!_1..‘ ‘3‘ 1‘14. ... «Iv [I .0 r‘ I. 34 built-up area with the regional greenbelt” of the Emscher Landscape Park. The redevelopment of this park started in 1996 and the park was opened in the spring of 1999. The park has a size of 61 acres. V Nordstern Landscape Park: The grounds of the former Zeche Northern coal mine have been turned into an outstanding example of an industrial landscape park. Along with the Northern Commercial Park, attractive landscape and park design were first presented here within the framework of the federal garden show in 1997. The park is situated in Gelsenkirchen at the Rhine-Heme- Shipcanal. The concept for the Northern Park integrates several of the central working spheres of the IBA - Emscher Park: Finding new uses for industrial and colliery sites and the architectural monuments they contain. The park has a size of 247 acres. / Mechtenberg Landscape Park: The planning covers a 716 acre area in the urban triangle of Bochum, Essen and Gelsenkirchen at the southern end of the regional greenbelt. In order to make this important recreational area in the immediate vicinity of the cities more attractive for the population, various 51 Green Belt! A policy or land use designation used in land use planning to retain areas of largely undeveloped, wild, or agricultural land surrounding or neighboring urban areas. Similar concepts are Greenways or Green Wedges which have a linear character and may run through an urban area instead of around it. (Wikipediai www.wikipedia.org> 35 design and accessibility measures were carried out. Lakeside Park Li'men: This former industrial area in Li'men features abandoned brickworks, a waste stone heap and an old refuse tip. There are large subsidence and the river Seseke was an open sewage canal banked by dikes. It was redesigned for the Landesgartenschau Li'men in 1996 as a recreational landscape with various uses. The park also included the historically significant park surrounding Schwansbell castle. Liinen Lakeside Park forms the core of the Seseke Landscape Park. The park has a size of 155 acres. Landmarks: The stone dumps and slag heaps are typical elements of the landscape in the Ruhr area and part of the industrial heritage. Within the framework of Emscher Landscape Park several heaps were designed by artists and landscape architects. Now dumps and heaps are important points of identification for the inhabitants and landmarks in the Region, visible from far away. Parkways Emscher Landscape Park - Cycle Path: The creation of easy access and more points of interest in the built up industrial environment was the idea behind the development of the Emscher park cycle and walking path. Running along a northern and southern route, the cycle path covers nearly 143 miles 36 from Duisburg to Bergkamen, while the walking path offers 81 miles of routes, also crisscrossing the region. Both path systems are signposted and integrated in the whole cycle paths of the region. Wand «ma ms 0mm! 00611111 housu W mmm 0km 01115111111111“ Emdmblit 11.111111191111115... w. 9 mg 511.111.3111 Yolk ctr Holdeim Holdc b 1'1 /\,- m‘ K 1 l Wands! "Opp." "K “a”, // “\‘/: ”1 Gesundheit: fit I ' ; 0“",an MW ~ . - . . _/;/’ I‘-Q . '1." " . Monsoon: 1.1"111obod1- Ml 11111 [rzbahn Blodenhwl -' N£nobrixhzufliilsso 6706:5801: WNW!) l M l h ' '| “n own-m Sthutenbodlioldn 1:31-13:33” 11.1111. sumo 1 m1?” on 500M [linen 52 5. Number of Job Created from New Development” This redevelopment project created thousands of new jobs in service and new industries on new sites. 6. Cost of Redevelopment and Partnership54 52 IBA-Intenationale Bauausstellung Emscher Park (http://www.iba.nrw.de> 53 International Symposium Rendez-Vous Montreal 2002 ’4 US. Environmental Protection Agency < http://www.epa.gov/ > . I I I l illi1i. ill-11.1.1.1 14.11.11.111. (111111111....1d.1¢1it11d11¢1tt 1011.11-41! ....4 4111.114. -4 1t 37 Funding for Emscher Park comes from a variety of sources. When the state government announced the creation of the Emscher Park Planning Company Ltd. in 1988, the state government allocated $2.2 million for IBA. Responsibility for individual projects, however, rests with its developers. Most projects are jointly financed by local governments and private companies. One exception is the Landscape Park in Duisburg-Nord where all of the expenditures were publicly funded. Emscher Park projects have also received financing from existing state and national government structural development programs and aid from the European Union. By the summer of 1993, funds spent on 134 projects totaled $1.5 billion, with some $1.1 billion coming from public sources. 7. Economic or Social Impacts55 The most significant goals of this project have been: i/ the ecological recovery of the Emscher river and its tributaries, combined with the development of a modern sewage and drainage system, J the establishment of a green corridor, connecting all 17 cities, using existing water-courses and green spaces (the Emscher Landscape Park), J the preservation and re-use of the industrial legacy, 55 European Academy of the Urban Environment (http://www.eaue.de> lllliil‘l‘v‘- lfiirl‘. .itilflij: t?€a:.l.-jjlfit1 It 11..-:‘11‘1‘. I... . I- 1!- II 1‘- :1- 38 the ecological upgrading of derelict urban-industrial sites through the development of an urban structure of high economic potential and high architectural quality, and which is complementary to landscape planning (Working in the Park), the implementation of the principle of a recycling economy, the rehabilitation of workers' settlements and the extension of residential areas, a ”holistic” approach to economic, social, and cultural transformation, openness to ideas and impulses from outside the region, the promotion of service industries, the development of the tourist industry, a dynamic and effective employment strategy, the development of a modern and sustainable infrastructure for future economic growth. I llllllliliilii141.011.0110-}.1G. 1411.4.-.1- udi‘l‘i. 1‘ Junidilavif 14.. it- if}! -Q-.-‘ 39 S6 57 56 fotoclub-city-treff 57 Id. 40 D. Summary All of three cases had good results for job creation and local economic development of the cases’ regions. All of the cases provided green spaces to the community, so the quality of citizens’ life has improved. Also, the unemployed rate of the cases’ region is almost average which means that the economic situation of the region is not bad. However, I realized that most funding sources of those three cases are from the government because recreational uses cannot make economic benefit rather than industrial or commercial use. Therefore, the government’s supporting and special policies are needed to make a redeveloping plan for recreational use. VI. Recommendation: Proposed Sites Plan in the City of Detroit In this chapter, I will give an overview of the City of Detroit and the profiles of the proposed sites. Also, I am going to suggest some alternative redevelopment plans to the proposed sites. With those plans, I will figure out which is the best plan to brownfields which I picked up as a proposed site in the city of Detroit. Then, I will suggest the plan for the proposed site in details based on my case studies on chapter V. A. Detroit Overview Detroit is one of the largest automobile manufacturing cities in the United States. 41 During the past several decades, however, Detroit had a painful decline because of the 12‘h Street Riot in 1967 and the Oil Shock in 1973. At that moment, the United States started to import small Japanese cars, so the automobile industries experienced a 40% decline.58 From that time, in 1967, residents in Detroit have moved to the suburban areas, so the population of the City of Detroit rapidly decreased. Because of that, large numbers of buildings and homes were abandoned, with many remaining for years in states of decay.59 However, Detroit has endured the painful decline, and started to redevelop. Recent urban renewal efforts have led to the demolition or renovation of several abandoned buildings, the razing of old houses for new housing developments, and an expedited process to remove abandoned homes near schools."0 Also, in the 19903, Detroit had constructed the Renaissance Center and three casinos which are: MGM Detroit, Motor City Casino and Greektown Casino.61 In 2000, Comerica Park replaced historic Tiger Stadium as the home of the Detroit Tigers, and in 2002, Ford Field brought football's 58 Naver 59 Interview with Mariangela Pledl, Associate Director, Detroit Economic Growth Coporation. 60 Id. 61 Wikipedia i’i’.‘l‘l-*;“l'.l‘ll"|-‘lt‘li‘li‘il.‘ll¢lll1l‘1.‘i{‘11‘1 .‘1 .‘1 .‘l ‘1 ‘1. ‘ ‘I ‘1 ‘1 ‘1 ‘1 ‘1l‘il‘. ll‘l 1‘1 42 Detroit Lions back into Detroit from suburban Pontiac."2 The 2004 opening of the Compuware Center gave downtown Detroit its first significant new office building in a decade. Significant landmarks such as the Fox Theatre, Detroit Opera House and the Gem Theater have been restored and now host concerts, musicals, and plays."3 Many downtown centers such as Greek town, Eastern Market, the Michigan State Fairgrounds, and the new Campus Martius Park draw host activities."4 1. Location Detroit is located in Southeastern Michigan, opposite Windsor, Ontario, Canada. . - ”'- ‘ ’ . ‘ K . ~ ‘— \ 65 “2 Id. 63 Id. 6‘ Id. 65 Google Map. (http://maps.google.com> 13%.:3‘ qils‘ll‘eai‘ ...--It-..' -q ...IIQIIQIIO. -‘li‘. .-.. J. 1‘1. ‘II‘ II‘ .‘l.‘ui‘. .... 1‘ .‘ It! I. It 1‘ 43 2. Population66 Detroit's population has declined dramatically since its peak of 1,850,000 in 1950, and in 2000 the population was 951,270. By 2004, Detroit's population was estimated at 900,198. The table below shows the population changes between Detroit, Michigan and Indianapolis, Indiana. Year Detroit, MI Change Indianapolis, IN Change 1950 1,849,568 427,173 1960 1,670,144 -9.701% 476,258 11.491% 1970 1,511,482 -9.500% 744,624 56.349% 1980 1,203,339 -20.387% 700,807 —5.884% 1990 1,027,974 -14.S73% 731,327 4.355% 2000 951,270 -7.462% 791,626 8.245% 2001 934,896 -1.721% 794,161 0.320% 2002 922,727 -1.302% 793,025 -0.143% 2003 912,472 -1.1 1 1% 794,420 0.176% 2004 900,198 -1.345% 794,160 -0.033°/o Sam: U3. Carma The City of Indianapolis is currently similar in size to the City of Detroit. Since 1950, Detroit’s population has been decreasing, but Indianapolis’s population has been increasing excluding the years; 1980, 2002, and 2004. In 1980, both cities showed the 66 US. Census Population Finder 00.101011010110001010110113130140110. .0 1011010110 -01-...0 1.0 10.10.110.110... L0. 0.1.1.0110 1.0 ...0 ..0 1.0 1.0 1...! 10- 44 largest change, because manufacturing industries experienced a decline due to the Oil Shock (1973). Therefore, many unemployed people had moved out of the cities. 3. Employment The City of Detroit has a tremendously high unemployment rate. The unemployment rate of Detroit was 6.9% in 2004, which is about twice the national unemployment rate of 3.7% in 2004.67 Most economists agree that an unemployment percentage of 3 or a . 6 less 18 conSIdered full—employment. 8 Detroit, MI - Metropolitan Area Unemployement Per Cent 12 Percent o ....................................................................... - ................ .- 1992 93 94 95 96 97 98 99 00 01 2002 warms-(system 69 67 Economagic.com 68 ERsys 59 Id. 01010101010101.1000. .0... 0.7.0.101--. At... an... .0- 0 03.0-1.0.10 0.1.0.- 1.0 . .0 101010.10 «0.11.0.1... --..0 ..0 0 1.0 . .0 4' «I. 45 4. Crime The City of Detroit (1740.4 crimes/ 100,000 population) is listed as the second most dangerous city by the Morgan Quitno Corporation's statistics after the City of Camden, New Jersey (2261.7 crimes / 100000 population) in 2004.70 Detroit has been one of the most crime-ridden cities in the United States. Many of these problems can be blamed on the “widespread middle-class flight’ ’7' which has contributed greatly to urban decay, poverty, segregation of the region, and unemployment. Many of the suburban areas of the city of Detroit, in contrast, are among the 25 safest cities in the United States with a population of 75,000 or above. They include Livonia, Troy, Farmington Hills, and Sterling Heights.72 All four suburban areas boast much higher household income levels (average $65,000 in 2000 Census) than the city of Detroit ($29,526 in 2000 Census). Based on that data, the safe cities have good environments and great economic development. In other words, a city has to have a good environment to reduce the crime rate and have economic success. 7" Morgan Quitno Corporation 71 Id. 72 Id. i All... 1‘11 l‘nli‘ull‘t 1‘11 4‘11. ‘1. l‘lll‘il‘llu‘..- .‘ f.l‘ 11‘ 2' .‘ .‘ 1‘ ll. 5‘ 1‘; Proposed Sites 1. Location 46 a» ‘5‘ ”3.9“ i" ('3‘ do 11' J J Yofi‘ Lunar» 3. , ' cctncwy ‘3' .N‘Y‘ :; f' d’ ' ~ -, {( v. . ’ (I It: ». . (.9 <3 3 v j V 1 " t I ‘C’ q: 1., l renown Sites , 8‘10 I 1;. i ' ‘Q v" k 1' 1):. U Bam' Insure»;- , g ‘ 01 Arts 5 “A a“ 3. . 50‘6 V ”. , 351'} ' 1 (a. I ' 7 '5” Ta. '6' v. ' v I ‘ 1 (I. a J 1‘ »' ’3 '4 ® '3 . . gr ‘ v? fig w $1 ; ‘4! 4 v3 Wtd’y ® a 0 s ““13 ‘ f r. “f“; u ~ “CY“ .317 :11) nah 15” Cdfirll' "741' M '.1\"' 7&7 0. 1 10 l v ,., - I j . 4.4“ ‘w b L. Detront HQ: '3er Cow”.- G) , . 91" v.2 _ am. 303'0 w L I"".‘5’t. CB“ W_.i.\.fi9 U < The proposed sites are located in northeastern Downtown Detroit>73 The reasons for choosing these sites to redevelop to recreational uses are: / accessibility: the sites are located nearby highway intersection I—94 and I—75, so people can access it easily. Also, these are about 3 miles from downtown Detroit and boundary of Canada. / neighborhood: Wayne State University, Detroit Science Center, Detroit Institutes of Art, and Detroit Public library are located within 1 mile from the proposed sites. These existing neighborhood sites can partner with the proposed sites for common recreational purposes. 7" Google Maps ......0. 10130110110 401.10.011.10 .0 10 1.0 1.0 14‘ 10. .40. 10. 101.01 0. .01 .0- .01 101.10. 10.1 101 ll. 10. .01 0 0. ‘- 01101.0 .01401-‘ .0 1.01 47 / aesthetic: the proposed sites are abandoned, so they do not have harmony with surrounding areas such as Wayne State University and Detroit Science Center. 3 . \ '54- 3: 30rd "g lal 1": .5“ 5’ “Oi-9 is is 9 ’1 1 v“ 5% J o ’4‘- Dctroa'. hunk ’ '2 i an *‘T‘ ('11 Am . «“10“ w “:10“ .719de 40’ 01-513.: * 25:}? we Hut-«11.1w (K Sena-:1: 1.301. 0% '9' ‘i ' y'ne it" =11" was" State Unwersuty 9,9: ( for I ‘11 .h"" 0 A . . 7 " 75 7“ Id. ‘ne ‘1‘.:§1‘.j;‘ II 1'13 1‘. 1‘. d .1. in. £1“. d. a, 49.. Al. 1'. filigfifjf a! H1.... .2014: iv .4... it it .3 .... 48 g. 6250 Has 'ng '11: . ‘ 3i]; 0) 601 Piquette 76 2. Profiles of Proposed Sites I picked not one parcel but six parcels because just one parcel is very small to redevelop for the recreational use which I am going to propose. The total size of the proposed sites is 25 acres. 75 Id. 76 Id. --.... ..qu 1:3... ‘1‘ 4....lelqlv 1“. A... A. A... an... ....l‘. 4.. I... .4.. d! .-. .1... ”Elli..- “..-.-- 1! it ... .. ....v cc . -.. 49 530~586 601 Piquette 6250 Hasting 6051 Hasting 991 Harper 547Harper Piquettc Previous Metal Printing & Printing 8‘ N / A N / A N / A Use Fabricating Publishing Publishing Assembly Current Non-Building Non-Building Factories and Factories and Factories and and Service Land Use Improvements— Improvements- Shop Shop Shop Industrial Description Yard Yard Building Current Storage Storage None None None None Use Zoning Industrial Industrial Industrial Industrial Industrial Industrial Size (sq/ ft) 535,930 195,527 206, 475 123,933 55,143 41,079 Structures Yes No Yes No Yes Yes City of Ownership Private Private Private Private Private Detroit C. Alternative Redevelopment Plan 77 For my redevelopment plan, the plan should consider the city’s economic, environmental, and social effects. Regarding economic effects, commercial and industrial uses are better than recreational use because commercial and industrial uses can bring more economic benefits. 77 City of Detroit For environmental and social effects, recreational use is better than 50 commercial and industrial uses because of the city’s aesthetic and citizens’ welfare. Contemporary trends in terms of redeveloping the downtown area are not for industrial use but recreational and commercial uses because most industrial complexes are located in suburban areas because of operation costs and the city’s environment. A commercial purpose for this case is a good alternative to create high benefits, but can be only developed after redeveloping recreational structures. Conversely, it is hard to make a plan for recreational uses after the development of commercial uses because of purchasing parcels. After redeveloped commercial uses, the land value is going up, so most people want to hold their properties until reaching the highest value. So, developers may invest a lot of money to redevelop recreational uses from commercial uses. In this chapter, therefore, I will suggest three alternative plans which are museum, casino, and golf course for recreational uses from my research of case studies 1. Museum / pros: most museums are established for educational purposes, so it is good for children and visitors. In this case, two museums, a university, and a public library are located in the surrounding area of the proposed sites. If the proposed sites redevelop into a museum, it could combine with the surrounding structures. 51 / cons: for economic issues, the operation costs of the museum depends on admission fees and the government’s support. In other words, it will not yield high monetary benefits. 2. Casino \/ pros: casinos give a lot of tax benefits and create jobs for the city and state government. The City of Detroit developed three land-based casinos by the passage of a voter referendum; Proposal E. Proposal E enacted the Michigan Gaming Control and Revenue Act.78 The MGM Grand casino opened in July 1999; the Motor City Casino opened in December 1999; and the Greek town Casino opened in November 2000. One reason for Detroit to embrace casino gaming development was to generate taxes and employment for residents. The three Detroit casinos generated in total about $1.1 billion, in 2003, and about $1.2 billion, in gross gaming revenue, in 2004. Each casino must pay a wagering tax on adjusted gross receipts at a rate of 18 percent. The casinos are required to remit the wagering tax each day. The 18 percent wagering tax is divided between the State of Michigan (8.1%) and the City of Detroit (9.9%). The Michigan Gaming and 78 Michigan Gaming 53 construct golf courses. The size of the proposed sites is about 25 acres, but the size of Wyandotte golf courses is 84 acres. Therefore, the golf course plan is not adjustable to the proposed sites. D. Recommended Plan Following the above analysis, I recommend a museum project. Most large cities such as New York, Chicago, and Washington DC. have big museums which are representative of their city. However, Detroit does not have a representative museum, although Detroit is the 10‘h largest city in the United States. The city of Detroit has one Automobile museum, Henry Ford museum, but it is ordinary museum not to focus on only automobile. Also, the Henry Ford museum does not have enough improvement and changes to attract to new and past visitor. 1. Background The City of Detroit is a famous city with automobile industries, so most visitors from international and other states ask, “Where is an Auto Museum?” However, Detroit doesn’t have an auto museum in the downtown area. Someone can say that Henry Ford Museum is located near the City of Detroit, but the museum could not enough to represent the history of Detroit’s automobile. Currently, Henry Ford museum has a lot of visitors because they do not have any choice to pick up museum. The City of 54 Detroit has only one place for visitors to show automobile theme. To increase visitors’ spending time in the City of Detroit, the city could make a new Auto Museum in downtown area. A new Auto Museum can build a new attraction route at the downtown Detroit connecting with Greek town and Casinos. The attraction route will be attractive to visitors and a good method to advertise the City of Detroit. The city of Detroit needs a special landmark which represents the city’s origin in the automobile industry, so I recommend the Detroit World Auto Museum. In 1984, the $70 million Auto World theme park opened in Flint, Michigan, sixteen years later, nothing remains of the parks. They closed after less than two years of sparse crowds, and then were demolished. The site is now part of the University of Michigan’s Flint campus.80 This park had some problems when the park was planned. First, the location was wrong. Generally, the main Automobile headquarters, such as General Motors and Ford are located in the City of Detroit, so most visitors are not familiar with the City of Flint, excluding Michigan residents. Second, the size of the park was only 7 acres. For example, the size of the Chicago Field Museum is 25 acres. The size of the museum could create parking problems and traffic congestion. 80 Lawrence W. Reed, 2000 55 Third, the park did not pursue new events for visitors. Decreasing visitors means that the museum did not have returning customers. To have returning visitors, the museum should bold new events and manage customers. If the Detroit Auto Museum solved those problems, the museum could be a success. To make a successful museum, concepts are very important. The concepts of Auto Museums are: V history of automobiles V display process of manufacture V world car exhibition from German, Japan, Korea, and China etc. and provides test drive V put in auto dealers which are directly operated from headquarters V compact cart racing stadium V antique car city tour V enough shelter In this museum, visitors can realize the history of automobiles and see so many kinds of cars from the world. In addition, the experience of driving carts provides a fun time for visitors. 56 2L Parking ‘9 . 9 q'iwa Mini Cart Racing Stadium Garden < Proposed location Plan for Detroit World Auto Museum> 2. Structures The size of proposed sites is about 25 acres and the proposed site has one existing building (6051 Piquette). Developers can use this building in renovation to exhibition rooms, and build a new structure for the cart racing. 4.1-.--.--.--.-0.1.0.1....11141CE...(......a1f1f4.a..--.-.-.-.-....F1..tt.f-r. <6051 Piquette, Brownfield> 3. Funding Funding is the most important and hardest part to redevelop brownfields because recreational development has less benefit rather than commercial development. Therefore, investors prefer commercial development projects. In this case, most properties are owned by the private sector, so the government should buy the properties from the owners. Then issues bonds with this project, and sell only 49% of the bonds as in the Kangwon Land redevelopment case. So, the government has an ownership, and investors who buy bonds can get benefits from the museum. Another method of the project is establishing a private-public partnership company instead of purchasing properties. The properties’ owners have a liability to the I.a.------‘0‘-‘.€€¢€fl€ffl€r.r6d.a.-m.‘------‘.l.1.....ll.lv-.. 58 museum, and get a profit for their properties’ size and value. For development costs, the government can sell bonds. Also, the developer can ask for donations from Automobile companies such as GM, Ford, BMW Benz, Toyota, etc. 4. Expected Impact With this redevelopment project, the expected impacts are: V Job creation: staff members of the museum, and a lot of workers during the construction V Economic impact: a lot of people can visit the museum, and the museum can benefit from admission fees. Also, the visitors stay in nearby hotels in the Detroit area, and spend their time shopping in downtown Detroit, so commercial benefits will be expected. Also, the value of properties, which are located near the proposed sites, is going up, so the properties’ tax will increase. V Social impact: with this project, the brownfield in the downtown area will transform to an aesthetic place. Undeveloped sites and abandoned sites can lead to crime, so crime rates will be decreased. Then, the life quality of the City of Detroit will be improved. 59 VII. Conclusion To build my recommendation, I researched three case studies, and I picked the most reasonable and applicable case study. With that case study, I made a recommendation for brownfields of the City of Detroit in chapter VI to build a new Auto Museum as a Landmark in the city and making good environment. In my paper, I focus on economic development with brownfields redevelopment. To succeed in economic development, a city should provide a good environment to citizens. With a lot of brownfields and abandoned sites, a city cannot make a good environment and control citizens’ migration. People want to live in a good environment, such as good job market, qualified education system, and lower crime rate. In other words, a good environment system can bring immigration, and it will make enough labor and good investments from companies. Regarding citizens’ welfare, the government provides enough recreational areas, and it will make a change of the characteristic of cities. Especially, the City of Detroit should get rid of brownfields and abandoned sites, and these should be redeveloped to recreational areas or commercial areas to have economic success. 60 Bibliography 10. 11. 12. Paul L. Knox, Linda M. McCarthy (2005). Urbanization: An I ntroduotion to Urban Geogrgpfiy. Englewood Cliffs, New Jersey: Prentice all. Chilton, KM. (1998, January). Tbe M tb o tbe Environmental Problem’: Clean Costs and Brownfield Redevelopment. Public Works Management and Policy 2(3), 220—230. Collaton, Elizabeth and Charles, Bartsch. (1996, March). Industrial Site Reuse a_nd Urba_n_ Ledevelobment— An Overview Cityscape: A Journal of Policy Development and Research, 2(3), 17—61. 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