Traverse City Record-Eagle

Michigan

July 19, 2012

Detroit starts new demolitions; more help expected

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DETROIT (AP) — A state plan to tear down vacant buildings, make the paths to and from schools safer for students and improve social services in Detroit is moving ahead, with the Legislature allocating $10 million for blight elimination efforts in the city, officials said Thursday.

The state was awarded a $97 million share of a national settlement with banks for faulty foreclosure processes. Of that, $25 million — including the funds for Detroit — was set aside for anti-blight efforts in legislation passed Wednesday, according to the state attorney general's office.

"It will allow us to tear down even more homes, so we're very pleased," Detroit Mayor Dave Bing said Thursday.

Bing's comments came as he helped kick off a previously announced city effort to tear down 1,500 dangerous and abandoned structures by the end of September. The campaign is part of his goal to demolish 10,000 vacant structures by the time his four-year term ends in December 2013.

On Thursday, demolition crews set to work swiftly tearing down four vacant apartment buildings in southwest Detroit. The buildings, earlier gutted by fire, are among nearly 160 in the area targeted for demolition in the latest blitz, and were identified with help from community residents.

Felicia Tapia, 25, has lived her entire life in a home next door to one of the apartment buildings that was torn down Thursday. The building, abandoned years ago, was used by prostitutes and drug addicts, she said. The mother of two called the demolition a "blessing." "Maybe this will improve the neighborhood a little bit," Tapia said. "It's horrible. You can't even let your kids play outside." The Ford Motor Company Fund is giving $10,000 to The Greening of Detroit, a nonprofit, that plans to beautify the lots left behind by the apartment demolitions.

Additional details of the state's plan are expected in the coming weeks, with an announcement from Gov. Rick Snyder. The state is working with Detroit Public Schools, the city and the private sector on the plan, which would build on existing efforts and involve state police, housing and human services officials.

Bill Pulte, who has been helping to advise the state on demolition efforts, said the city fire department is using U.S. Army Corps of Engineers technology to catalog dangerous, blighted properties for possible demolition.

"It is of disastrous proportions, the abandoned housing issue," Pulte said. And it's got to be solved for Detroit to come back." Pulte, the grandson of homebuilder PulteGroup Inc.'s founder, is CEO of Bloomfield Hills-based Pulte Capital, a growth equity firm focused on housing material investments. He said ways to cut demolition costs and reuse salvaged materials also are being discussed.

The legislation passed Wednesday lists how the state will spend its share of the settlement with banks. That includes $20 million for foreclosure counseling for homeowners, $15 million in assistance to homebuyers and $10 million to help improve Michigan's lowest performing schools.

Snyder's office said he's expected to sign the legislation. While it sets aside $10 million for anti-blight efforts in Detroit, the state attorney general's office said other communities will be able to apply for a share of the other $15 million.

"I'd like to see the opportunity to support Detroit and other communities around Michigan, in terms of getting rid of abandoned structures and homes," Snyder told reporters Thursday after touring a farmer's market on the Capitol lawn. "If we can start this summer, that would be even better."

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