June and July 2024 Review (Part 1)
Double the months, double the development
I wanted to get back on schedule getting these reviews out closer to the end of the month, and with the Fourth of July holiday smack dab in the middle, June and July seemed like the perfect time to do it. Since this is a culmination of two months’ worth of development, I’m going to go a bit longer and more in depth on some ideas, so feel free to skip around, I’ll try to put more titles and breaks in to make the navigation a bit easier. I may even break this into two parts, we’ll see.
A Changing Core City
For the last decade or so, Core City has been kind of the neighborhood to “keep an eye on” when it came to growth and development. Underdeveloped enough to present some opportunities, but close enough to the action where it was plausible we’d see some significant growth in the next few years. Situated between Woodbridge and Corktown, it is a logical place for the growth of these two neighborhoods to continue and we have seen some positive growth over the last five years or so.
DIB and Kafka Saga
The big news recently out of Core City is the closing of Detroit Institute of Bagels (DIB), which at the surface level is just another restaurant that couldn’t cut it but involves much more than just the shop itself. A few weeks ago, DIB owner Ben Newman sold the business to landlord and local developer, Phillip Kafka. This was Newman’s second iteration of DIB, with the first in Corktown closing a few years back and making way for James Oliver. DIB made its return in 2023, this time in the hip Core City area. While it was met with much fanfare, behind the scenes there were obviously some issues, with Newman saying he hadn’t been able to pay himself and had to dip into savings to keep the company afloat. Selling to Kafka seemed like a way to keep DIB going, Kafka already owns the building and has a history of owning and running restaurants. Well just a few weeks later, DIB is closed, and controversy is stewing around the circumstances.
Just like Dan Gilbert has Downtown and the Illitches have “The District”, Phil Kafka has on a much smaller scale, Core City. Way back in 2012, Kafka acquired his first piece of land in Core City and now owns over 17 acres. Kafka’s idea revolves around placemaking development, green space, unique development. Since then, Kafka has gained notoriety for his developments including True North and the Caterpillar, notable for their Quonset hut design, several restaurants and cafes in the area, and the rehabilitation of multiple buildings at the Warren and Grand River intersection, including the Bloomscape Headquarters and the building DIB is housed in.
Now, objectively, Kafka has made some really nice improvements to buildings in the area. His developments are a mix of old and new, and his buildings have garnered praise for their design and inclusion of trees. However, Kafka also has his own philosophies and way of doing things that sometimes draw a side eye from some residents. The Quonset huts were new and interesting, but they certainly don’t blend in with the architecture of the area. Then Kafka opened Prince Cafe which became a bit infamous for serving a single carrot for $1.80 (this actually seems less overpriced as time goes on, as I drink an $8 coffee). Of course, an out of stater coming in and buying up a bunch of land for cheap from the city, putting in expensive amenities seems like a tale as old as time. However, I’d suggest that Kafka’s developments have a lot of positives to them and are a unique take on an area that otherwise might be overlooked, while also acknowledging the concerns that some people would have with the style.
Well now comes DIB and its closure. The closing down of a bagel place because it can’t stay afloat financially wouldn’t be much of a story. However, with Kafka involved, the story has become one of community, class, and religious differences. Apparently, when it was revealed that Kafka was now running the business, around half of the employees quit. According to Kafkta, this made the business impossible to run and he had to shut it down to rework things. Employees who resigned claim a total lack of communication from Kafka led them to eventually resign. On top of this, Kafka has been the target of opposition for his views on Israel, being labeled a Zionist, as well as the idea that he is taking advantage of a disadvantaged area, leading to the label of “gentrifier”. One email from an employee likened Kafka to a “vulture” and said he was out of touch with Detroiters, then adding disapproval for Zionism.
I’m absolutely not here to give an opinion on any of this controversy, besides the opinion that things in Core City have definitely been shaken up and will likely continue to evolve over the following months and year.
Social Justice Development and Housing
Outside of Kafka’s developments, Core City is seeing a very diverse array of developments finish up, start, or planned. The Bridge Housing Campus in Core City at Hancock and the I-96 service drive has been a long time coming from the team behind the Pope Francis Center. The facility will have 40 studio apartments to house the chronically homeless, as well as a commercial kitchen for job training, medical center, dental clinic, gym and barbershop. As an extra step to help more than it can hold inside, the center has shaded courtyards and heated lamps on the sidewalk. The opening of the center comes at a time at which municipal animosity towards homelessness is increasing, especially given the recent Supreme Court hearing which allows cities to fine and arrest people for sleeping in public areas. The neighborhood has taken to the project, shedding the idea that no area would want a homeless shelter nearby. To integrate the project with the surrounding area, all of the campus besides the residential units will be open to the neighborhood to use, including the gym, cafeteria, and medical clinics.
The Bridge Housing Campus is a start contrast from the developments closer to Grand River. The integration of both types of developments will be key to Core City’s future, as for at least the time being, it is destined to be behind adjacent areas with regards to land value and amenities. However, it does have the advantage of being cheaper and more accessible for development and new businesses, which can sometimes be a recipe for gentrification and displacement. The more that is focused on mixed income and preserving space and homes for all types of income, or no income at all, the better for the overall health of the area.
Along Grand River, the LOVE Building has also recently gone through a full rehabilitation is home for six different Detroit focused organizations, including Allied Media Projects and the Detroit Justice Center, and also plans to house meeting space and a food hub. The LOVE Building aims to attract Black and POC organizations, aiming to be a different type of development that isn’t focused on profit, and instead is focused on inclusion and providing community benefits. The building is also billed as one of the most accessible in the city, combating ableism and discrimination of people with disabilities with its design.
Alongside the LOVE Building and down 15th street, several buildings that the City put up for demolition are being sought for deferment by their owners, California-based Designing Justice + Designing Spaces (DJDS). DJDS is intending to utilize the space for a “social justice campus” and, against their original plans, are now trying to utilize the old buildings, thanks in part to community input. Concerns about DJDS following through on their extensive plans (estimated at one point to cost $41 million), as well as a desire for more permanent residents, have caused some community members to question the plans. Recently, buildings within the DJDS proposed campus were set to be demolished by the City. Resident urged the non-profit to utilize the buildings instead of leveling the whole area and starting fresh. The group has still yet to have any solid plans or financing in place for their vision, but they claim to want to start reconstruction on the existing buildings next year.
People might see developers like Kafka as self-interested and only concerned about the profits a building can bring in, but there are plenty of other developments in the area that are seeking to make Core City more welcoming and inclusive for all types of development. In reality, having both will really make the area flourish, as private developers will pursue fancier, and more expensive buildings, adding style and elegance to the area, and the non-profits will ensure the neighborhood be diverse with the type of residents it draws, both racially and economically, as it looks to serve those neighbors who may fear that the more popular the neighborhood, the less room for them.
Gilbert Eyeing the Ren Cen…and Riverfront
When it was announced that General Motors would leave the Renaissance Center for the new Hudson’s Detroit building, the conversations immediately began about what would come of the Ren Cen. Already lacking in tenants and disconnected from the rest of Downtown, it was obvious that something had to be done to rejuvenate, or redevelop, the Ren Cen. While GM owns the Ren Cen, it’s pretty safe to say they are not real estate developers, so it was no surprise that Bedrock was mentioned as a development partner as GM moves to the Bedrock building in the Hudson.
Well, all that speculation became official, to nobody’s surprise, when it was revealed that Bedrock not only was going to help with the redevelopment, but Dan Gilbert and a Bedrock related entity entered into an option agreement to buy the entire complex. Importantly, as Crain’s pointed out, this option also includes 20 acres of surface parking lots along the riverfront that Gilbert had previously sought for development. Back in 2015, Gilbert sought to develop the land alongside GM, with plans for a mixed-use development. As you’ll recall, Bedrock has recently bought up several properties along the river including Stroh River Place Portfolio, Roberts Riverwalk Hotel, and the UAW-GM Center for Human Resources.
The riverfront from the Ren Cen to Belle Isle has often been thought of as a great asset to the city, as well as a disappointment with what has been developed so far. There’s been some great additions over the last decade, Orleans Landing, the Outdoor Adventure Center, and new parks and riverwalk, but there’s also acres of parking lots, undeveloped land, and rundown buildings. Back a few decades, this area was poised to become the new casino and entertainment district of the city. Healthy businesses and buildings were ushered out or town down in hopes that the three temporary (at the time) casinos would relocate to the riverfront and create a casino district.
After the casino district failed to materialize, the city began working on plans to revitalize the area after they had cleared many of the popular businesses. At one point, the riverfront was pitched as a ten-story headquarters for Quicken Loans as tit moved its workers downtown. Along with many iterations of planning, the city, Detroit Riverfront Conservancy, and the Detroit Economic Growth Corporation put out an East Riverfront Framework Plan in the late twenty teens. The plan, led by Skidmore Owings and Merrill, LLP, focused on expending parks and green space, greenways, streetscapes, and development. The result, although just a plan, lays out an extensive vision for the Riverfront that would house thousands of residents, restaurants, stores, offices, and recreational areas.
Many rust belt cities have laid out similar plans for the riverfront, as the areas have been often neglected as they were once industrial areas, wrought with factories, waste, garbage, and unappealing water. Now, with industrial use waying, these areas have opened up for prime redevelopment opportunities, often utilizing the old factories for lofts or recreation.
Now comes to option Gilbert has on the land next to the Ren Cen, now holding parking that is rarely used in its fullest. Recently, Bedrock announced large developments in Cleveland along the Cuyahoga River, totaling $3.5 billion. The plan calls for 3.5 million square feet of commercial mixed-use space. Similarly, it would be envisioned that any Bedrock development along the river would be a large mixed-use district, hoping to stretch between two Bedrock owned areas (Strohs and potentially the Ren Cen). There’s also speculation that Gilbert could be eyeing this land if we still want to make a run at an MLS stadium and franchise after the failed Ford Field bid. I see it, and I’m sure Bedrock does to, as an underutilized and an underdeveloped asset that could become the next big neighborhood. Easy access to downtown, as well as access to public amenities like the Dequindre Cut, the Riverwalk, and Belle Isle, and compile the fact that the I-375 removal is still in the works, I can see why Bedrock might want to target this area. If part of the Ren Cen does end up getting knocked down, this area could be pivotal in reworking the surrounding areas.