MICHIGAN BUSINESS

Highland Park revitalization plan would include paying water debt: What leaders said

Chanel Stitt
Detroit Free Press
Kenneth Hogan, president and CEO of Manna Development Corporation, announced a $10 billion development investment by the nonprofit and its anonymous investors.

Black business leaders, political candidates and community members gathered in Highland Park on Friday for the announcement of a $10 billion revitalization plan.

The plan, which would be led by Redford-based nonprofit Manna Development Corp., would include paying between $24 million to $50 million the city owes for water to the Great Lakes Water Authority. Leaders said at the news conference announcing the revitalization that Manna would work with unnamed investment partners on the project.Leaders also said NORR, a Detroit-based architect engineering firm, would help build a mixed-use development called Uptown Highland Park.

"We will bring the city new manufacturing facilities that will connect the city with markets around the world," said Kenneth Hogan, president and CEO of Manna, which helps to rebuild disenfranchised areas in Detroit and has been operating since 2000. "We'll have new educational system. We will work with the city to revitalize it." The city has not had a high school for seven years.

Leaders said the first installment would be $127 million, and that the money will be invested over four years.

But some vital information was not revealed, such as when the money would come, when building would start or, again, who the investors are.

Highland Park Mayor Hubert Yopp, who made an appearance at the news conference, said he will believe it when he sees it.

Highland Park Mayor Hubert Yopp attended a news conference where a $10 billion development investment was announced by Manna Development Corporation and anonymous investors.

"I've not seen any documentation," Yopp said. "Word of mouth is no proof of truth."

Hogan also promised:

  • Better access to food and medicine with the help of financial and technical assistance.
  • Industrial firms would be created that are owned by the city and private firms.
  • Training and a workforce that would be created that is far from automation.
  • Prioritized hiring of city residents first, and then hire those from surrounding cities.
  • A new 90-unit, 70,000 square feet, seven-story mixed-use building that would be built at the former Sears location that was demolished in 2007.

"All together, we intend to utilize the $10 billion budget to stabilize the city through redevelopment and transplanting viable international business into this area," Hogan said. "We are also here to announce that Manna Development and its investment partners, subject to a proposed public and private partnership with the city of Highland Park, are prepared to pay the city of Highland Park's obligation related to the water supply and redevelopment."

The Great Lakes Water Authority,when asked about its knowledge of impending payments, had this to say:

"GLWA is not aware of this new development opportunity for the city of Highland Park," Randal Brown, GLWA General Counsel, said in an emailed statement. "However, the Authority is pleased to hear about it, ​and looks forward to further information about the proposed development and is generally supportive of this and any other efforts that could lead to a resolution of the debt owed to the regional authority."

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Friday's news conference was held next to a former NAACP headquarters. During the conference, leaders said the grouphas site control over the building and that a contract has been signed to work on the building.

Many people who attended the news conference grew up in Highland Park or have a close connection to the city. Several candidates running for political office spoke during the news conference and gave their opinions about what they heard Friday. They also encouraged people to vote for them.

"We have to have thinking that is going to be outside of our traditional box," said Maurice Turner, who is running for Highland Park mayor as a write-in candidate. The current mayor is stepping down Dec. 31.

"And we have to put forth the passion and the effort to make sure that the change that is already here is going to continue and that we continue to work together, reach across the aisle, reach across our 2.9-mile city," he added.

The plans for the mixed-use building space include a hub for small businesses, clean energy businesses and information technology jobs as well as 20% of the units that would be reserved for affordable housing.

"Our development and investment group believes that the redevelopment of the city of Highland Park will be a model of economic development across the United States and around the world," said Hogan.

Other items promised include:

  • Geothermal technology to power the lights in Highland Park.
  • Raise the standard of living for residents.
  • Launch a public-private partnership with the city of Highland Park.

Although investors are not being revealed at this time, leaders did say multiple times during the news conference that those investors would be present at a ground-breaking ceremony in the future. However, no date was given.

Hogan said a letter of intent about the water obligation was sent to the mayor's office, along with a document with payment terms. He said that investors are not looking to get abatements for this project and that this project is for the citizens.

"We are requesting that the mayor ... call an emergency meeting of the City Council session before the Nov. 21 meeting, so that City Council can review our proposal," Hogan said.

Yopp said Friday that he had not been part of any conversations about the investments and was not aware of any emergency meeting. But he did say his community economic director, Tyrone Hinton, had discussed the project with the group.

"I would never turn my back on progress," Yopp said. "So understand this — I've not seen $10 billion. I've not seen any money at this point. But I do know this, if in fact it's the truth, I'm for it."