“Opportunity Detroit” a Case Study on Public Private Partnerships
The Urban Land Institute recently convened in Detroit for an in-depth look at the evolving nature of the Public Private Partnership (3PL). This proved to be an interesting time to examine Detroit’s budding renaissance, which is due in large part to its private investors. One such investor is Dan Gilbert, CEO of Quicken Loans, who moved his 12,000 employee base into the downtown, and has since invested $1.3 billion in its buildings, parks, tech incubation, and elimination of blight.
Gilbert spoke to conference attendees about the motivation behind this historic investment, and what it has meant for his company. He admits that the initial announcement was met by silence from his employees, but the actual experience of working in an urban core has turned out to be significantly more gratifying than the office park. The power of inserting a young and committed workforce into the downtown has created a de facto urban renewal program. “And we are just getting started,” said Gilbert.
While the media continues to focus on what Gilbert calls “ruin porn,” he’s focused on the new images of Detroit. “There is no bigger gap than between perception and reality.” As a Detroit native, Gilbert views his investment as an obligation — but not charity. “We are a better company because of the collaboration that is possible in an urban setting.”
Gilbert blames “Detroit’s decade-long calamity” on suburbanization — the spreading out of the city. The spread contributed to a lack of cohesion among business leaders, until now. Others have stepped forward — everyone from General Motors to the Kresge Foundation in an all-out effort to take the city back from blight and crime. Blight is in fact Gilbert’s next target — his so-called Marshall Plan. In an unprecedented effort, he has used his company’s technologyto harness 24 public agency databases in an attempt to categorize every blighted property in the city. “Downtown can’t be healthy unless the surrounding neighborhoods are healthy.” He has created “Detroit Future City” to plan for future uses of vacant sites.
Gilbert sees Detroit’s bankruptcy as a positive milestone. “Vagueness is the enemy. Once you have clarity on the problem, you can tackle it.” And true to this statement, now that bankruptcy has been filed, investors are pouring in. Gilbert said that he has no need to chase money. “If you build things of quality, money will follow.”
Gilbert joked that the government pledge should be to first, “do no harm” and second, “be a partner.” For city governments, it’s about creating good conditions. He credits Detroit’s competent city government as a contributor to recent successes, and a new mayor that is “noble, with good intentions.”
Gilbert is optimistic about Detroit’s future. He predicts that in five years the City will exceed everyone’s wildest expectations. In the meantime, he has 1,000 interns from 200 colleges spending the summer in Detroit. Culled from 21,000 applications, the interns will be working on various initiatives.
If you don’t believe Dan Gilbert, take it from Kid Rock. The former rapper narrated this Opportunity Detroit video which embodies the hope, resolve, and resilience of the Motor City.
What does opportunity look like? Not what you might think. Opportunity is not a right. It doesn’t come with an instruction manual. Opportunity isn’t found. It’s molded. It’s built. It’s created …”