Mayor, Invest Detroit announce $40M third phase of Strategic Neighborhood Fund to extend progress

• $75 million raised in first two rounds of Strategic Neighborhood Fund have leveraged a total of $262M in new investment in commercial corridors, affordable housing and parks across 10 neighborhood areas
• New funding will build on progress and deploy new strategies to support developers, small businesses, public spaces and real estate investment
• $23 million of $40 million goal has already been committed, including a $15 million grant from the Gilbert Family Foundation to kick off phase 3

The City of Detroit and Invest Detroit today announced progress on the third phase of the Strategic Neighborhood Fund (SNF), a partnership designed to reenergize Detroit neighborhoods. Phase three formally kicks off the effort to expand and build on the impact of the $75 million raised during the first two phases of the program, which resulted in more than a quarter billion dollars of investment in 10 SNF areas across the city.

The Strategic Neighborhood Fund, first established in 2017, is a partnership between the city of Detroit and Invest Detroit, a mission-driven 501(c)3 organization and community development financial institution (CDFI), along with numerous philanthropic and corporate funders. Together they make up a unique partnership to bring about meaningful and impactful neighborhood investment.

"Thanks to Invest Detroit and our corporate and philanthropic partners, the first two rounds of SNF have spurred major development in 10 neighborhood clusters around the city, providing more affordable housing, improved parks and revitalized commercial corridors," said Mayor Duggan. "Having another $40 million to invest in these areas will attract even more private investment and continue the progress in these neighborhoods."

Mayor Duggan discusses the success stories of SNF neighborhoods across the city.

SNF is planning to raise an additional $40 million in this phase to continue its critical work. The Gilbert Family Foundation is the lead partner for phase three of SNF and has already committed $15 million to the program. This investment is part of the organization's 10-year, $500 million joint commitment, shared with Rocket Community Fund, to build opportunity in Detroit neighborhoods.

"The Strategic Neighborhood Fund's success spurring inclusive economic growth shows the transformative impact that can come from taking a highly-targeted and collaborative approach to neighborhood investment," said Laura Grannemann, Executive Director, Gilbert Family Foundation. "We are proud to be the lead sponsor of phase three and encourage others in the philanthropic and corporate community to join the effort and help us ensure that prosperity reaches every corner of our city."

As part of Wednesday's launch event, it was also announced that the Ralph C. Wilson Foundation is contributing another $5 million in support of phase three of SNF. The latest gift will go to support ongoing work on commercial corridors, the Spark Grant Program and Invest Detroit's program evaluation and administration efforts. Additional commitments of $3 million to SNF 3 have been secured and will be announced later.

Jermaine Ruffin, Senior Vice President of Neighborhoods for Invest Detroit, thanks all partners for their support of the Strategic Neighborhood Fund.

"The heart of Detroit lies in its people, and we believe that by nurturing its neighborhoods, we're investing in its future. Our ongoing commitment to the Strategic Neighborhood Fund allows us to build on the foundations of growth already in place," said Eric Phamdo, program officer at the Ralph C. Wilson, Jr. Foundation. "Economic prosperity doesn't happen overnight, but through collaboration between the public, private, and philanthropic sectors, we're seeing revitalized commercial corridors and empowering entrepreneurs to turn their dreams into reality."

The newest phase of SNF will raise funds from philanthropic and corporate donors to deepen its focus in 10 neighborhoods, spread across every council district:

• Campau//Davison/Banglatown
• East Warren/Cadieux
• Grand River Northwest
• Gratiot/7 Mile
• Islandview/Greater Villages
• Jefferson Chalmers
• Livernois-McNichols
• Russell Woods/Nardin Park
• Southwest/Vernor
• Warrendale/Cody-Rouge

Visible Success of SNF Rounds 1&2

As part of SNF, each neighborhood goes through a year-long planning process in partnership with residents to shape the implementation of streetscapes, commercial corridors, and parks. These projects are then implemented in the years that follow in all 10 SNF neighborhoods.

Some notable and highly visible SNF projects include:

• streetscape improvements on Livernois, McNichols and East Warren that have led to an influx of new small businesses such as Terri's Cakes and Detroit Pizza bar
• affordable housing projects like the Ribbon and The Brooke on Bagley
• transformative upgrades to Clark Park and Balduck Park, as well as a new $5 million community center at A.B. Ford Park.

Work through the SNF is also thoughtfully designed to mitigate displacement, often in partnership with the City's Detroit Housing for the Future Fund. Residents are engaged from the beginning of the planning process, and the focus is on rebuilding trust and improving the quality of life in the neighborhoods for those who already live there.

Laura Grannemann, Executive Director of Gilbert Family Foundation, speaks to being one of the philanthropic partners for the Strategic Neighborhood Fund.

Building on Success

The Strategic Neighborhood Fund (SNF) has proven to be an effective catalyst for revitalizing Detroit neighborhoods. Its focus on Resiliency, Partnership, and Preservation has led to substantial investments in both physical infrastructure and the community itself. According to U.S. Census data and a study from Poverty Solutions at the University of Michigan, SNF neighborhoods have experienced population growth, increased incomes, decreased poverty, and higher neighborhood satisfaction. Investment in SNF neighborhoods has been substantial. Since its inception in 2016, SNF has invested $262 million, resulting in 10 neighborhood framework plans, 78k SF of commercial space constructed, 378 total housing units created, 86 Homes rehabbed 7 park renovations completed with 4 more in progress and 12 Streetscape projects.

A Holistic Approach

The SNF's strength lies in its comprehensive approach. By addressing multiple facets of neighborhood development - from housing and infrastructure to businesses and public spaces - it creates a more sustainable and inclusive model of revitalization. Most importantly, these interventions were shaped in partnership with neighborhood residents beforehand. Round 3 builds on this success, leveraging lessons learned and adapting to emerging challenges.

"The scale of the Strategic Neighborhood Fund has a reached a tipping point," said Anika Goss, CEO of Detroit Future City. "We are seeing a demonstrable change in communities. Deep investment at the neighborhood level moves communities with blight and disinvestment, to middle-class neighborhoods, growing wealth and opportunity for Detroiters."

Addressing Evolving Needs

Despite these achievements, the work isn't done yet. The pandemic and inflation have widened financial gaps. Commercial corridors need more support for businesses and residents. Neighborhoods crave better job opportunities and public spaces. And developers need ongoing assistance. Continued support for the SNF from corporate and philanthropic donors is crucial to completing the task.

SNF Round 3: A Targeted Approach

The $40 million raised for SNF 3.0 will be prioritized across four areas:

1. Real Estate Investment: This continues the strategy of catalytic investment to attract additional private capital, ensuring further neighborhood revitalization and resiliency.
2. Spark Grants: These grants will directly support new and existing businesses and residents and the built environment, fostering vibrant and walkable commercial corridors.
3. Job Creation and Public Spaces: SNF 3 will work on coordinating resources with other city projects like the Joe Louis Greenway and other partners to help address these crucial needs.
4. Developer Support: Resource coordination efforts will provide critical assistance to developers of all sizes, ensuring that projects move forward smoothly. The developer engagement grants, which promote meaningful engagement between developers and residents, will continue.

"We are extremely grateful for the partnership with the city of Detroit and the incredible support from our corporate and philanthropic partners." Said Dave Blaskiewicz, president and CEO of Invest Detroit. "SNF Round 3 represents a critical opportunity to further strengthen Detroit's neighborhoods. By investing strategically and comprehensively, we can ensure that the positive momentum continues, building a more vibrant and equitable future for all Detroiters."

Current funders of SNF include many of the region's top corporate and philanthropic entities, who have come together to jumpstart Detroit's neighborhood improvement effort. Funders include the City of Detroit, The Kresge Foundation, JPMorgan Chase & Co., Ralph C Wilson Foundation, Gilbert Family Foundation, Huntington Bank, Ballmer Group, American Axle & Manufacturing, Ford Foundation, Penske, Blue Cross Blue Shield of Michigan, Flagstar Bank, Fifth Third Bank, The Skillman Foundation, The Knight Foundation, Hudson Webber Foundation, W.K. Kellogg Foundation, William Davidson Foundation, The JPB Foundation, Bank of America, Airbnb, and Ally Bank.

About Invest Detroit

Invest Detroit is a nonprofit lender, investor, and partner that supports business and real estate projects that will ignite economic growth in Detroit and support inclusive growth of entrepreneurial ventures across the state. Our goal is to help create a thriving city that works for all Detroiters with an improved quality of life-inclusive housing, resourced and walkable neighborhoods, and equal opportunities for jobs and business growth; and scale promising early-stage ventures into thriving companies that help support the state's economy, provide jobs to local talent, and bolster Michigan's growing startup community. Learn more at InvestDetroit.com.

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