City of Detroit to host 3 events

Conference in action | Stock photo by Crystal710/Pixabay

There are three events that will happen in Detroit in the coming days that I believe are of particular importance. These programs are intended to help residents take full advantage of all that is happening in our city and to prepare for the 2020 Census, which begins soon.

2nd Annual Construction Conference - March 7
There are a flurry of new construction projects happening at the moment with even more in the development pipeline. In order to ensure that Detroiters are able to take full advantage of this, the City of Detroit will convene its 2nd annual construction conference at the Voyageur Academy (4366 Military St.) tomorrow, March 7 from 8 a.m. until noon. This is approximately three miles east of the Warrendale neighborhood.

The construction conference is your chance to learn about the Detroit Business Opportunity Program, about how to get contracted to do business with the City, and about the certifications offered. It is also an excellent opportunity to network with general contractors.

FCA Job Readiness Event - March 11
Fiat Chrysler is hiring and the Deroit At Work program allows residents to get early access to some of these jobs. To help prepare for these new jobs, the City will host a job readiness event at the Straight Gate International Church (10100 Grand River) on Wednesday, March 11 from 6 - 8 p.m. This is approximation four miles northeast of the Warrendale neighborhood.

In order to particiapate in this event and get this priority access to jobs at Fiat Chrysler, residents must register ahead of time on the Detroit at Work website.

2020 Census Kickoff - March 14
In order to prepare for the census that will happen this year, the City of Detroit along with the United Way of Southeastern Michigan and 105.9 KISS-FM will host a kickoff event on Saturday, March 14 at Martin Luther King High School (3200 E. Laffayette Blvd.). Doors will open at 10 a.m. with the main event happening at 11 a.m.

During this kickoff event, Detroiters will be able to complete census forms onsite from 10 a.m. until 
3 p.m. There will be a raffle and other giveaways for those who complete their census form at the event.

Shinola Hotel only hotel in Michigan to be named to "It List"

The Shinola Hotel | Photo by Wild Wind Studios

Earlier today, Travel + Leisure magazine announced its 15th annual “It List”. This is an editor-curated list of the best hotels in the world with only 72 new or recently renovated destinations in the entire world making the cut.

Only one of those 72 hotels to make the “It List” happens to be in Michigan. The Shinola Hotel in downtown Detroit has the distinction of representing not only the Motor City but all of Michigan.

“The beauty of staying at a hotel is that you can drop both your physical and emotional baggage and be the best version of yourself,” explained Jacqueline Gifford, editor in chief of Travel + Leisure in a prepared statement. “With over 70 honorees — including a Loire Valley château and a series of lodges in Bhutan — our annual It List is packed with hotels that make you feel spoiled, nurtured, and seamlessly connected to the outside world.”

The Travel + Leisure 2020 It List includes 19 hotels across the United States including four in California, three in New York, and two in Hawaii, as well as in places such as Asbury Park, Detroit, Miami, New Orleans, and Philadelphia.

Guest room in the Shinola Hotel | Photo by Nicole Franzen

The Shinola Hotel, which is a boutique property that opened in downtown Detroit in early 2019 from local companies with a love for the city, Shinola and Bedrock. It has become a meaningful gathering place for visitors and locals alike. With 129 rooms and suites, a thoughtfully curated art collection by Library Street Collective, and six restaurants and bars from award-winning Andrew Carmellini of NoHo Hospitality.

There are a lot of Detroiters who have worked incredibly hard and taken some big risks to make the Shinola Hotel a premiere destination.

The other 11 American properties that made Travel + Leisure’s It List this year are Asbury Ocean Club in Asbury Park, New Jersey as well as:

• Four Seasons Hotel Lanai at Koele, a Sensei Retreat in Lanai, Hawaii;
• Mauna Lani, Auberge Resorts Collection on the Big Island, Hawaii;
• Soho Warehouse in Los Angeles, California;
• Palihouse Miami Beach in Miami, Florida;
• Maison de la Luz in New Orleans, Louisiana;
• Equinox Hotel in New York, New York;
• The Times Square EDITION in New York, New York;
• Four Seasons Hotel Philadelphia at Comcast Center in Philadelphia, Pennsylvania;
• TWA Hotel in Queens, New York;
• Santa Monica Proper Hotel in Santa Monica, California;
• MacArthur Place Hotel & Spa in Sonoma, California;
• Willow House in Terlingua, Texas;
• Posada by the Joshua Tree House in Tucson, Arizona;
• Blackberry Mountain in Walland, Tennessee;
• The Lodge at Blue Sky, Auberge Resorts Collection in Wanship, Utah;
• Captain Whidbey Inn in Whidbey Island, Washington; and
• Canyon Ranch Woodside in Woodside, California.

The list of wonderful things in Detroit keeps growing. Each new development means more jobs and more tax revenue for a city that, quite frankly, is still in dire need of both things. The fact that a major media outlet like Travel + Leisure notices their work is always worth celebrating.

I congratulate each and every person who played a part in this accomplishment. I look forward to seeing even more great things in the near future.

GM makes $2.2 billion investment in Detroit

Governor Gretchen Whitmer speaks at press conference in Detroit | Photo courtesy of GM

Michigan Governor Gretchen Whitmer and Detroit Mayor Mike Duggan were on hand with GM executives this morning to announce a $2.2 billion investment in the company's Detroit-Hamtramck assembly plant. This plant will produce a variety of all-electric trucks and SUVs.

GM’s first all-electric truck will be a pickup with production scheduled to begin in late 2021. This will be followed soon after by the Cruise Origin, a shared, electric, self-driving vehicle unveiled by Cruise in San Francisco last week. Detroit-Hamtramck will be GM’s first fully-dedicated electric vehicle assembly plant.

“Through this investment, GM is taking a big step forward in making our vision of an all-electric future a reality,” said Mark Reuss, GM president, during a press event at the plant with Michigan Gov. Gretchen Whitmer and other local and state officials. “Our electric pickup will be the first of multiple electric truck variants we will build at Detroit-Hamtramck over the next few years.”

When the plant is fully operational, this investment will create more than 2,200 good-paying U.S. manufacturing jobs. GM will also invest an additional $800 million in supplier tooling and other projects related to the launch of the new electric trucks.

Since the fall of 2018, GM has committed to invest more than $2.5 billion in Michigan to bring electric vehicles to market through investments at Orion assembly, GM battery lab in Warren, Brownstown and today’s announced direct investment in Detroit-Hamtramck. 

The plant’s paint and body shops and general assembly area will receive comprehensive upgrades, including new machines, conveyors, controls and tooling.

GM’s joint venture with LG Chem – which is investing $2.3 billion to manufacture battery cells in Lordstown, Ohio – will supply battery cells for the electric vehicles manufactured at Detroit-Hamtramck.

A key driver behind GM’s decision to make the commitment to Detroit-Hamtramck was the support this project received from the state of Michigan.

“The support from the state of Michigan was a key element in making this investment possible,” added Reuss. “This investment helps ensure that Michigan will remain at the epicenter of the global automotive industry as we continue our journey to an electrified future.”

Detroit-Hamtramck currently operates on one shift of production and builds the Cadillac CT6 and the Chevrolet Impala. Approximately 900 people are employed at the plant. As previously confirmed, the plant will be idled for several months beginning at the end of February as the renovations begin.

The plant has built more than 4 million vehicles since opening in 1985. Hourly employees at Detroit-Hamtramck are represented by UAW Local 22.

Gas prices continue to fall across Michigan

Gas station at night | Photo by Sergio Souza/Pexels

Gas prices in the Great Lakes State are down 8 cents compared to a week ago, according to a report out this morning from AAA of Michigan. Drivers are now paying an average of $2.40 per gallon for regular unleaded. This price is 6 cents less than this time last month and 23 cents more than this time last year.

Motorists are paying an average of $36 for a full 15-gallon tank of gasoline. This is a discount of $8 from when prices were their highest in Michigan last July.

In its latest weekly report, the Energy Information Administration revealed that total domestic stocks of gasoline continue to grow. According to EIA’s data, stocks grew by 1.7 million bbl last week, bringing the current total to 260 million barrels. This current level is in line with the level seen in mid-January 2019. For gasoline demand, EIA estimates that it grew slightly from 8.56 million b/d to 8.66 million b/d last week, but the current demand level is lower than last year’s 8.87 million b/d at this same time.

"Increase stocks and low demand have helped push pump prices lower," said Howard Hughey, spokesperson, AAA - The Auto Club Group. "As these trends continue, motorists will likely see pump prices decline through the week."

Compared to last week, Metro Detroit’s average daily gas price decreased. Metro Detroit’s current average is $2.47 per gallon, about 5 cents less than last week’s average and about 34 cents more than this same time last year.

Fuel prices in the Warrendale neighborhood are a bit higher than local averages with the cheapest gas being Marathon (18142 W. Warren Ave) at $2.54 per gallon. Although, I expect that to fall soon to bring them closer to what other stations in the area are charging.

The most expensive gas price averages in Michigan are Ann Arbor with an average of $2.49, Metro Detroit with an average of $2.47, and Marquette at $2.43. The cheapest gas price averages in the state are Saginaw with an average per gallon prices of only $2.29, Grand Rapids  with an average of $2.30,  and Traverse City at $2.32.

Gas prices drop in Detroit

Refueling a car - Photo by Andreas160578/Pixabay

Gas prices across Michigan are down an average of 7 cents compared to last week, according to research compiled by AAA of Michigan.  Michigan drivers are now paying an average of $2.53 per gallon for regular unleaded. This price is 8 cents cheaper than this time last month but 44 cents more than this time last year.

Gas prices in the Warrendale area range from $2.39 per gallon for regular unleaded to $2.47 per gallon. This includes both the stations in the Warrendale neighborhood of Detroit as well as those nearby in Dearborn and Dearborn Heights.

Motorists are paying an average of $38 for a full 15-gallon tank of gasoline. This is a discount of $6 from when prices were their highest last July.

“Many motorists across the nation saw gas prices increase last week as a record number of travelers hit the road for the year-end holidays,” said Adrienne Woodland, spokesperson, AAA-The Auto Club Group. “Michigan drivers are now seeing a decrease in prices following the holidays.”

Compared to last week, Metro Detroit’s average daily gas price decreased slightly. Metro Detroit’s current average is $2.57 per gallon, 3 cents less than last week’s average and 53 cents more than this time last year.

The most expensive gas price averages are in Ann Arbor ($2.60), Metro Detroit ($2.57), and Flint ($2.50). Meanwhile the cheapest gas price averages are in Traverse City ($2.34), Jackson ($2.42), and Grand Rapids ($2.45).

Tech training in Detroit

Computer technology - Photo by Daniel Agrelo/Pixabay

Early this morning, the folks at WalletHub released a report that named Detroit the worst city in America to find a job in. I posted my analysis and commentary about it over here. A few minutes after that post went live, I received an email announcing that one of the country’s largest free tech training programs, NPower, is launching in Detroit this month.

NPower providing free tech work training to minorities, former felons and veterans right from their location in the New Center area.

They have already empowered neglected communities in Baltimore, Harlem, Brooklyn, Jersey City, St. Louis and Dallas. They offer programs that teach basic coding skills, cyber security, and tech fundamentals. The nonprofit has had so much success in these cities, they’ve now launched in Detroit.

In Detroit and Southeast Michigan, NPower will connect young adults from some of the most dangerous and impoverished neighborhoods to the fast-growing companies in the area who are in urgent need of tech workers. Equipping these students with tech skills will also help bring new business into the city.

NPower’s new Executive Director - Camille Walker Banks - is a Detroit native. She has more than 20 years of experience creating 5,000 new jobs and generating $5.5B in capital investment for the city.

Anyway, the fact that all of this happened right after that other was report was released about the job market in Detroit’s inner city. Quite frankly, I think this re-enforces my earlier point that Detroiters need to keep plugging along. If we do that, I’m confident that the improvements that we need to happen will happen.

Detroit named worst city to find a job

Landing a job - Photo by FotografieLink/Pixabay

As national unemployment figures continue to be at historic lows, the personal finance website WalletHub ranked Detroit to be the worst city for one to find a job in. This was the result of their researching into a total of 182 American cities and the labor market in those communities.

According to statistics from the Labor Department, the unemployment rate is 3.5% at the national level. Michigan meanwhile ranks 38th with a statewide unemployment rate of 4% and Wayne County has an unemployment rate of 4.5%. Detroit is clearly still behind the rest of Michigan and the rest of the nation.

For their rankings, the staff at WalletHub looked at nine different areas related to finding a job. They compiled data from government and other sources related to those nine areas to determine a ranking in each category. Detroit’s status as the worst place to find a job is a composite of those nine areas.

Rankings in the individual categories did, however, show some positive signs for Detroit. For example, Detroit ranked 23rd out of 182 cities in terms of employment growth. The problem, of course, is that even though Detroit is growing faster than the national average, our city still has a long way to go.

The nine areas that researchers from WalletHub looked at for this ranking are:

• Average work and commute time where Detroit ranked 40th;
• Employment growth where we came in with the 23rd fastest growth;
• Housing affordability where the Motor City ranked 33rd most affordable;
• Industry variety where the city ranked 165th least;
• Job opportunities where Motown ranked 179th lowest;
• Median annual income where we ranked 178th lowest;
• Monthly average starting salary where we came in 72nd;
• Percent of workforce living in poverty where Detroit was the 181st highest; and
• Unemployment rate where we are the 180th highest of the 182 cities.

Taken together, this means that we ranked as better than average in four of the nine categories. It really is the remaining five areas where we are doing so badly.

The key takeaways from all of this, in my opinion, are two points. First, Detroit has made a lot of progress in recent years, particularly in the area of overall employment growth. The strategic neighborhood initiative has been showing some real progress, which I discussed earlier.The housing market is continuing to improve as previously reported. However, we still have a long way to go on our journey to recovery.

Anyone who is interested can download the full report from WalletHub is available for free from here. As for Detroit and its job market, I believe the best thing for us to do is to keep doing what we’ve been doing since leaving bankruptcy. It took us almost half a century to hit rock bottom. It will take several more years for our community to recover.

As always, each step along this journey will be chronicled in this blog. Please subscribe to get regular updates by entering your email address in the upper right corner of this site or by subscribing to one of the RSS feeds. You can also follow along via the Facebook page for this blog.

This post is a part of this blog's semi-regular Friday Focus series, which endeavors to highlight news and opinions that, in my opinion, don't get as much attention as they deserve.

Please follow this blog on Facebook for more great content. I'm also on Twitter and Instagram as @fnemecek.

Mayor Duggan celebrates the Stategic Neighborhood Initiative

Mayor Mike Duggan of Detroit recently commemorated the one-year anniversary of the Stategic Neighborhoods Initiative. This is a public-private partnership to improve some of the neighborhoods in our city, such as Warrendale.
This initiative got a large boost recently. The Ralph C. Wilson Foundation announced a $10 million grant to support the neighborhoods in Detroit. Those funds will go towards citywide development of our ten targetedneighborhoods on streetscapes, commercial corridors, and parks.

"We are improving neighborhoods in Detroit for Detroiters," Duggan commented.
They and our other corporate partners have already made an incredible impact, and it is my hope that others will join us in continuing our mission of creating a stronger Detroit for everyone. Mayor Duggan's team posted a video of his remarks about the Stategic Neighborhoods Initiative to his Facebook page.

I have embedded this video above. I encourage everyone to take a moment to watch it.

Detroit-area toy company teams up with Toys for Tots

With the the holiday season in full swing, Magformers of Canton, Michigan announced its partnership with the U.S. Marine Corps Reserve Toys for Tots Program. Designed to assist the less fortunate, Toys For Tots is a top-rated charity that distributes millions of gifts to less fortunate children every holiday season. Magformers will be participating by donating over $25,000 worth of toys through a buy one give one program available now on  Magformers.com.

“As an industry leader in magnetic building toys, we believe it is vital for children to develop through creativity. The importance of giving back and being kind is not overlooked when it comes to our mission. This partnership is the perfect opportunity to introduce children to our products and teach them lessons in STEM early on. We hope our work with Toys For Tots inspires others to pay it forward this holiday season.” says Chris Tidwell, CEO of Magformers.

The Marine Toys for Tots Program has been delivering hope to less fortunate children since 1947. The foundation helps bring the joy of Christmas to kids in a variety of ways, by delivering a message of hope, by helping kids build and restore self-esteem and by inspiring children to give back. Last year, with the help of team members, partnering businesses and volunteers the Marine Toys for Tots donated over 18.5 million toys, games, and books to over 7 million children in need.

During the partnership, Magformers will contribute over $25,000 worth of toys to the Toys For Tots foundation. Furthermore, Magformers will be participating in a buy one give one program for select products purchased on the Magformers website. The toys include products from the STEM.org authenticated plush line, Dolce and Clicformers lines. Consumers can help the cause this holiday season by purchasing top-selling Magformers products such as the Amazing Construction 70pc Set, the Dolce Mouse Backpack and many more.

Magformer’s partnership with the U.S. Marine Toys For Tots foundation will run until December 31, 2019. For more information on Magformers, Clicformers, and Dolce visit, magformers.com. To learn more about Toys For Tots and how you can donate visit toysfortots.org.

Reconsidering AirBnB in Detroit

Home - Stock photo from Pexels

For several months, the City of Detroit has been looking for ways to better regulate short-term rental housing. This includes popular options like Airbnb and Homeaway that have been achieving more and more success in our area.

Critics of short-term rentals point to negative the impact these services have on hotels, housing prices, and the community at large. A study published in the Harvard Business Review, for example, showed that as more Airbnb rentals happened in a given area, the local rent prices would increase proportionately. In some cities, that increase has made a difference in whether or not someone could afford to live there.

These rentals also have a detrimental impact on hotels in the area, as Forbes magazine pointed out. This is important because traditional lodging options pay more taxes and generate more jobs. If hotels are hurt too much, we lose the thousands of jobs and millions in tax revenue that they create.

Supporters, however, point out that optins like Airbnb and Homeaway allow ordinary Detroiters to generate a few hundred dollars a month in extra income from an empty bedroom or two. That extra money can be invaluable to many families.

There is also the fact that when someone stays at a hotel by a large corporation like a Hilton or Marriott, much of the income generated from it leaves our state. In contrast, when money is spent with a small local person then, as a different study by Michigan State University pointed out, that money is more likely to be spent and reinvested locally.

Clearly, the ideal solution is to find some kind of balance that works for everyone. While I don't claim to have all of the answers, I do have a few ideas. For starters, let's talk taxes.

Taxes - Stock photo from Pexels

When someone rents a hotel room in Detroit for a night, they pay a 13% tax rate but when they rent an Airbnb for the same night, they only pay a 6% tax. The difference between the two tax rates is because, while both pay a 6% sales tax to the State of Michigan, short-term rentals do not pay either the 1% tax to Wayne County to support the stadiums nor the 6% tax to support the convention center.

This, I believe, is fundamentally unfair. There's no reason to tax one option for a night's lodging at one rate while taxing a different option at less than half that amount.

Therefore, I propose that we impose an additional 7% tax on short-term rentals in Detroit to even things out. I would further propose that most, if not all, of the revenue go towards improving mass transit. I say this because the stadiums and convention center are both doing just fine as is. Meanwhile, Detroit has what has been ranked as the worst mass transit system in the nation and could desperately use the extra revenue.

We could even add an extra 1 or 2% onto Lyft and Uber rides, while we're at it as well. This would bring them in line with the taxes that we levy on car rentals or taxi cabs. It would also generate even more revenue for mass transit.

The Detroit City Council looked into this issue in 2016; concluding that such a thing is indeed possible. We may have to put the question to a ballot referendum, much like we did with taxes for stadiums and convention center. However, I don't believe that would be a significant challenge.

Neighborhood - Stock photo by Pixabay

The next challenge is in terms of regulating how many Airbnbs can operate in the city. There was an efort by the City Council earlier this year to place a hard limit on the number of these rentals that could exist. This was intended to address the impact of these operation upon the housing market, which I mentioned earlier.

While that move was well-intended, I believe a better option would be to place on limit on the percentage of residential housing stock in a given area that may be used for such things. I believe it would be appropriate for a limit of 1 or 2% of the housing stock in any one square mile for short-term rentals.

In a place like the Warrendale neighborhood, with roughly 4,000 housing units per square mile, this would mean a limit of 40-80 homes that could be used for a short-term rental. As new housing is eventually added in, the limit would increase proportionately.

These, of course, are just a few ideas. I welcome feedback either in the comments below or by email.

This post is a part of the Warrendale Detroit Blog's Friday Focus series. The series endeavors to highlight news, events, and opinions that, in the view of this blog's publisher, don't get as much attention from the news media as they deserve.

Please follow this blog on Facebook for more great content. I'm also on Twitter and Instagram as @fnemecek.

Detroit is the worst city in the USA for veterans

Veterans | Illustration by tammyatWTI/Pixabay

Dear Detroit,

We need to talk.

Veteran’s Day will be upon us soon. I know this because I’ve already gotten announcements from a few different restaurants announcing specials for active and former members of the military. It won’t be much long until a series of talking heads fill our television screen talking about the debt that we owe veterans and how great our country is because of them.

That’s nice and all. But here’s the thing: Detroit was just named the worst city in the United States for veterans. At first, I thought this was just another case of some media outlet back Detroit. Again.

But this time, they brought receipts. Out of the 100 largest cities in America, Detroit ranks 83^rd in the percentage of homeless veterans. We also come in at:

• 82^nd out of 100 for median veteran income;
• 97^th out of 100 for the percentage of veterans living in poverty; and
• 98^th out of 100 veterans unemployment rate.

Those are four very big categories that show we are failing the veterans that we are calling heroes. Oh, and, by the way, it gets worse.

This the third time that Detroit has held this dubious distinction. WXYZ-TV reported on it in 2018. The Metro Times reported on this 2017. This now makes three years in a row when we have been the worst city in the United States for veterans. None of the issues addressed in either of the previous years.

Another one of these lists will come out again next year. I would really like it if Detroit was not the worst city for veterans a fourth year in a row.

Can we as Detroiters all agree on that as a goal?

Whether it’s a love for our veterans, outright anger at this problem going on for so long, or just not wanting to be the target of another one of these lists – whatever motivates to get involved; that works for me.

What can you do? I’m not sure but I’m pretty sure that anyone of these eight veterans service organizations in Detroit will have an idea about what you can do to help if you reach out to them. If anyone else has an idea, please leave it in the comments below.

We need to do better, Detroit.

Detroit seeks contractors

Guard services are one of the areas where the City of Detoit is seeking conractors - Photo by Ryan McGuire/Pixabay

The City of Detroit is looking for Detroit-based or Detroit-headquartered businesses to fill various roles in its chain of supply contractors. Each of these business selected would provide a certain service to the municipal government.

The City is specifically looking for local businesses that are able to provide guard services as well as

• Ground maintaince services;
• Janitorial/custodial services
• Uniforms; and
• Facilities management.

In order to attract as many Detroit-based and Detroit-headquarters businesses into their contracting process, the Office of Contracting & Procurment will host an information workshop tomorrow morning from 8 - 11 a.m. at the Adams Butzel Recreation Center (10500 Lyndon St.). This center is approximately five miles from the Warrendale neighborhood and is near Fenkell and Myers Rds.

During this meeting, representatives from the City of Detroit will discuss many elements about how to contract with the local government. They will discuss connection local businesses to resources, the pre-qualificatin process, BidSync, licensing, and performance expectations. They will explore how how local business owners can certify their business with the City of Detroit.

This event is presented by Detroit City Council President Brenda Jones, Council Member Janee Ayers, and Council Member Gabe Leland. Leland, of course, represents the 7th District on the City Council, which includes the Warrendale and surrounding neighborhoods. Jones and Ayers were elected on a citywide basis to represent everyone.

Detroit-based and Detroit-headquartered business who would like to take advantge of this opportunity are asked to confirm their attendance via this page on Eventbrite.

Anyone with questions about this workshop is asked to contact Yolanda Gaines by emailling gainesy [at] detroitmi [dot] gov or by calling her at (313) 224-3595.

Shooting at Shell gas station

Protesters at the Shell gas station - Photo by Frank Nemecek

As several other outlets have already reported, an attendant at the Shell station at W. Warren Ave. and the Southfield Freeway (17720 W. Warren Ave.) shot a customer last night. He was trying to shoot a different man who was stealing potato chips.

Approximately 50 protesters are at the Shell Station now. They are demanding that the business be closed down after this shooting.

The attendant in question was arrested. As of this morning, he has not been charged with a crime. However, formal charges are expected later today.

The innocent man who got shot is at a local hospital. He is currently in stable condition and is recovering from his wounds.

Officers from the Detroit Police Department are on the scene to ensure an orderly protest.

Update @ 3:09 pm
The protesters are now going through Warrendale distributing a one-page leaflet condemning the shooting. They are also asking residents to shop at one of the four black-owned gas stations in the area instead of this one.

Open letter to Detroit real estate investors

Detroit homes under construction - Photo by Frank Nemecek

Normally on Mondays, I would publish a Tip of the Week that offers my readers some helpful advice regarding their home, money, or life. Today, however, I want to pass along some friendly advice to those who wish to invest in real estate in Warrendale or elsewhere in Detroit.

A friend of mine works with investors on a professional basis quite frequently. She noticed a mistake that was frequently made over and over by would be real estate developers - especially in the Detroit market. With her permission, I am including her comments below with only minimal editing on my part.

Her comments originally appeared on her personal Facebook page. I am publishing them below in italics.

Dear Detroit real estate investors:

Please, please, please read and ingest this information.

Buying a house that is in decent condition, sitting on it, and waiting for it to inflate in value does not work as well as buying it- putting in new electrical, plumbing- and getting it back on the market.

I promise you...

This is especially true if you’re not here helping the neighborhood you bought in to stabilize. You’re not increasing your value as much as you are paying taxes on a property that will be worth nothing after it’s firebombed or the roof collapses.

Investing is more than buying and sitting on a property. Invest your energy and expertise along with your money.

Thank you!

With this said, I will say that I have shown her thoughts to several people who have made a good living investing in Detroit's real estate market. Every single one of them agreed with this sentiment. Simply holding onto a piece of property isn't going to make its value climb. The financial gains come from getting the property back on the market as a rental or for sale.

With that said, I will simply add that my normal Tip of the Week will return next week.

Duggan to deliver State of the City address this evening

Mayor Mike Duggan of Detroit - File photo

Mayor Mike Duggan of Detroit will deliver his annual State of the City address this evening at 7 p.m. I look forward to him discussing important topics to our community such as city services, crime and police response times, economic development, as well as our neighborhoods.

The State of the City address will be live-streamed on DetroitMI.gov and the City of Detroit's Facebook page. It will also be carried on live on television and radio.

For those who use Twitter, I will be live tweeting from home during Mayor Duggan's speech. My Twitter handle is @fnemecek.

The wonderful Warren Medical Center

Exterior of the Warren Medical Clinic - Photo by Frank Nemecek

I have previously posted on some of the terrible things that can happen at some of the businesses in Detroit's Warrendale neighborhood. I figured, therefore, that I should mention one particular business that is obviously putting so much energy into improving our community. I am talking, of course, about the Warren Medical Center (16921 W. Warren Ave.).

I haven't had the privilege of being a patient at this august facility. However, when one looks at how wonderfully the Warren Medical Center maintains the exterior of their property, I can only imagine the diligent concern and care that they have for each and every one of their lucky patients.

I mean really, just look at what is in front of the Warren Medical Center.

Sidewalk in front of the Warren Medical Center - Photo by Frank Nemecek

While other business in the Detroit area might pollute their surroundings with annoying things like concrete sidewalks, the Warren Medical Center has taken the effort to ensure that the sidewalk in front of their establishment is completely covered in ice and snow. I can only imagine the joy that this would bring to a patient who is coming to this clinic must have as he or she try to seek treatment for an injury sustained elsewhere as they traverse this miniature artic wonder.

I would not be surprised if each of them got down on their hands and knees to celebrate such an experience. It's truly a joy that the Warren Medical Center has brought to Detroit.

I'm even confident that many Detroiters who walk past the Warren Medical Center in its current condition will suddenly realize that they need medical treatment.

I'm confident that I speak for everyone in Warrendale when I say that we are uniquely lucky to have such a place as the Warren Medical Clinic in our little corner of Detroit.

Detroit gets double the good news

A new day in Detroit | Photo by Frank Nemecek

Detroiters got two pieces of good news today. Both of which point to continued recovery for the Motor City.

First, Standard's & Poor's announced that they raised the City of Detroit's credit rating. The credit agency said in part “Detroit is demonstrating the ability to meet its budget demands, while also providing a strong reserve cushion against unexpected events or stagnating revenues,. They went on to add that Detroit “must continue investing in public infrastructure and economic development initiatives” to help stabilize its population and tax base.

I know simply from being in this neighborhood that things are getting better in Detroit on a slow but steady basis. Regardless, it's exciting to have an international agency like Standard's & Poor's confirm what I have been telling everyone for some time now.

More details about the improved credit rating for Detroit is available here.

The second piece of good news came from the Detroit Fire Department. They confirmed that 2018 saw the lowest number of structure fires in our city since the 1960s. This was a 42% drop in fires since 2014.

The Detroit News has more on this drop in structure fires on their website.

There are a lot of people who have put an enormous amount of work into making these two things happen. I thank each and every one of them and look forward to more great things for Detroit in the near future.

Shooting at appliance store in Warrendale

There was a shooting at Sammy's Appliances (20101 W. Warren Ave) in the Warrendale neighborhood of Detroit. This is a used appliance store at the western edge of the neighborhood.

The shooting reportedly started after a customer was involved in a dispute with two employees who worked at the store. The unidentified man then returned to the store and opened fire, wounding two employees.

Both of the employees are in stable condition at a local hospital. They are expected to make a full recovery.

WXYZ-TV has more on this story in the video above.

Gas prices in Michigan hit 7 month low

Gas pump - Stock photo from Pixabay

Drivers across Detroit and the rest of Michigan are finding the lowest prices at the pump since April. According to a survey conducted by AAA of Michigan, the state average price for a gallon of regular unleaded is $2.72, which is 39 cents less than this year's high and the same as this time last year.

The AAA of Michigan survey also showed that gas prices continued their downward trek last week, declining another 9 cents.  The state average declined for the 10th consecutive day on Sunday, for a total discount of 12 cents.

The most expensive gas price averages were found in Marquette at $2.89, Ann Arbor at $2.81, and Metro Detroit at $2.76. In contrast, the least expensive gas price averages were in the Grand Rapids-Muskegon-Holland area at $2.65, Benton Harbor at $2.66, and Jackson at $2.66.

"Michiganders are saving 40 cents per gallon, compared to when gas prices peaked during Memorial Day weekend," explained Nancy Cain, spokesperson, AAA - The Auto Club Group. "Gasoline is becoming less expensive to produce-and-sell thanks to lower crude prices and cheaper-to-produce winter blend fuel. Retail prices have not quite caught up with declines on the wholesale side, so motorists should see another round of discounts this week. However, fuel prices definitely have the potential to reverse course based on any fluctuations in the stock market due to Election Day and the activation of U.S. sanctions against Iranian crude. Regardless, AAA believes the highest prices of the year are behind us."

Why are Crude Prices Falling? 
Crude oil prices are hovering near 7-month lows. On Friday, WTI settled at $63.14 per barrel - nearly $4.50/b less than the week before, and the lowest daily settlement since April 6, 2018. The weekly average price for U.S. crude has declined the past four consecutive weeks. Before then, crude prices faced upward pressure amid growing concerns that U.S. sanctions against Iranian crude would cause a global supply shortage. However, those concerns are being quelled by increased production by countries like the U.S., Saudi Arabia, and Russia.

Crude production in the U.S., Saudi Arabia, and Russia all remain strong. U.S. oil inventories rose for the sixth consecutive week, according to weekly data from the Energy Information Administration. Domestic supplies rose 3.2 million barrels from the week before. Meanwhile, gasoline inventories dropped by 3.2 million barrels. Meanwhile, OPEC production levels for October reportedly reached the highest output levels since 2016 as some members boosted production in preparation of the Iran sanctions.

More on U.S. Sanctions Against Iran
Friday, the Trump Administration announced the U.S. would re-impose sanctions on Iran that were lifted in 2015 under the Obama Administration. The sanctions, which will go into effect on November 5, 2018, target the Iranian energy sector and impede Iran’s ability to sell oil.

According to the Energy Information Administration, Iran ranks as the world’s fourth-largest reserve holder of oil. Iran also ranks among the world’s top 10 oil producers, producing almost 4.7 million b/d of petroleum and other liquids in 2017. While Iran is an oil powerhouse, Saudi Arabia (9%) and Iraq (6%) are the top two OPEC countries exporting to the U.S. and two of the top five countries overall that sell oil to the U.S.

In May, when the decision to re-impose oil-related sanctions was announced, the market reacted quickly with crude oil prices peaking at $77 per barrel this summer. As the crude market saw big upward price swings due to concerns about restricted global supply, Iran started to feel the impact on oil exports. According to the Trump Administration, Iran went from exporting 2.5 million barrels per day in May to 1.5 million barrels per day in October and over twenty countries have reduced their imports of Iranian oil to zero. Exports are expected to drop further, but not immediately.

Bloomberg reports that the U.S. has granted temporary waivers to eight countries - including Japan, India and South Korea - allowing them to continue to import Iranian oil. Those receiving the waiver are expected to continue cutting imports.

Detroit start-ups to compete for funding

Women business owners - Photo from Pixabay

This Wednesday, November 7, 10 woman-owned businesses will go head-to-head in a pitch competition. This event will start at 5:30 p.m. at NextEnergy, which is located at 461 Burroughs in the Midtown neighborhood.  This is a public event that is presented by Michigan Women Forward with support from the Consumers Energy Foundation.

The participating companies are divided into lifestyle and growth companies. The 10 finalists have been narrowed from an initial field of more than 140 applicants.

The five woman-owned businesses to make it to the finals in the lifestyle category are:

• Birch Bride from Whitmore Lake;
• GreenHouse Soups & Chilli from Allen Park;
• Jo’s Gallery 2 from Detroit;
• Buttons 2 Button from Northville; and
• Team Fit from St. Clair.

The five woman-owned businesses to become finalists in the growth category are:

• Dough from Ann Arbor;
• PocketNest also from Ann Arbor;
• FrontWest Customs Brokerage & Services from Romulus;
• SignOn from Grosse Pointe Farms; and
• Dearborn Career Academy from Dearborn Heights.

Each of the ten finalists will receive support services and technical assistance. Winners in each category at each location will get cash prizes ranging from $10,000 to $1,000

Similar competitions are scheduled in Grand Rapids on November 8 as well as in Jackson on November 14.

“We at Consumers Energy are committed to creating opportunities for everyone in our state, particularly female entrepreneurs who can bring new ideas to the table,” explained Lauren Youngdahl Snyder, the Vice President of Customer Experience for Consumers Energy. “The Woman Up Pitch Competitions illustrate the diversity that exists in Michigan’s workforce. When these businesses can thrive, we all win.”

“We are proud to bring this opportunity in Detroit, Jackson and Grand Rapids in 2018,” added Carolyn Cassin, president of Michigan Women Forward. “This influx of capital can make a big difference to our winning companies as they start or grow their businesses.”

Since 2014, MWF has loaned $2,391,200 to 93 businesses, in addition to 74 pitch competition prizes and investments totaling $468,400. The Consumers Energy Foundation has contributed $200,000 to Michigan Women Forward this year toward its Women's Entrepreneurship Initiative.

The session is open to the public and all are welcome to attend.  For information, visit www.miwf.org.