Property owners launch Rivertown improvement zone
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A stretch of Jefferson Avenue in the zone's boundary. Photo: Annalise Frank/Axios
A revitalization strategy is growing in Detroit in which property owners band together to pay voluntary, tax-like fees to upgrade their corridors.
Why it matters: The creation of a third Business Improvement Zone (BIZ) in Detroit is an example of property owners and businesses buying into the future of their communities — in a city where landowner negligence is all too common.
The latest: About 75% of voting property owners approved a BIZ last month for the east-side Rivertown neighborhood along Jefferson Avenue and the riverfront, per Chip Rohde, president of the Rivertown Detroit Association, a group of area residents and businesses.
How it works: A BIZ is a designated area created voluntarily by property owners that requires them to pay a special fee, generally alongside property taxes. It funds improvement work like cleaning, landscaping, new landmark signs and security.
- It's also promoted as a tool to help raise property values.
Flashback: The first Michigan BIZ was created along the West Vernor and Springwells business corridors in southwest Detroit in the mid-2000s. Then Detroit got a second BIZ downtown in 2014.
- Corktown businesses have also explored the idea, which has become popular across the country.
By the numbers: The Rivertown BIZ launches April 1. An elected board is working to finalize plans for what the BIZ will do.
- The area covers nearly 300 commercial parcels and expects to take in $850,000 a year from the fees, per a news release.
Context: The storied neighborhood with a mix of condos, apartments, commercial buildings and riverfront recreation has experienced disinvestment over the years.
- Yes, but: It's also seen renewed investment interest with the build-out of the riverfront.
What they're saying: "I always cite Midtown … [and] Corktown has growth over there, the train station, we want Rivertown to be that same type of environment," says Rohde, also president of longtime Jefferson Avenue real estate firm Arthur J. Rohde and Co.
- He wants the BIZ to help maintain cleanliness, safety and beauty, letting not just residents and riverfront visitors but also businesses to know Rivertown is the place to be.
- Rohde notes the recent news that Maryland defense company Eccalon is bringing 800 jobs to a new headquarters along the riverfront in the BIZ boundary.