Pancakes & Politics

ness Leaders for Michigan, will feature interviews with prominent businesspeople and newsmakers on a variety of subjects of interest to the people and companies of Metro Detroit.

Archer said while moderating that General Motors CEO Mary Barra (scheduled to speak at a May Pancakes & Politics event) (announced publicly) one of her goals at General Motors is to make her company one of the most inclusive companies in the world,” Archer said asking Denker about his own goals with inclusivity at the Detroit Grand Prix, dubbed as “the most inclusive event in Detroit.”

“We had our event at Belle Isle for 13 years, it was a great event. We gave over $13.5 million to Belle Isle,” he said adding over $6 million in charitable contributions also given to the Belle Isle Conservancy as it was “time to move on.”

“You know, it was intrusive to the public users of that park at the time that we were there. We knew that. I think the greater good we gave back,” he said adding that it was a previously exclusive event. “Not all the circuit was open to the public... So, in my mind, it was exclusive, not inclusive.”

Denker added that 18 months ago he and others wanted to replicate Nashville’s IndyCar race in the streets of Detroit.

Several Council Districts have worked together on the Detroit Grand Prix to make the city’s first downtown race since 1991 a memorable event for the area. The circuit’s unique twin pit lane will surely be a topic of conversation on the racetrack.

“We brought an inclusive perspective and we said, ‘Let’s figure out a way to make it happen in Detroit,” Denker said adding that it’s not an easy feat to close down businesses and disrupt commerce for his race, but the decision was worth it. “We’re gonna do that (in the spirit of) inclusiveness.”

That inclusivity looks like involving local STEM program students, and other youth organizations, participating and learning how to race go-karts, and more.

“(We want to) bring them downtown in a way we haven’t done before,” he added.

Archer then pivoted and talked about construction with Bonner and some of the several projects he is most excited about, especially in the greater downtown Detroit area.

Bonner said that he has had the pleasure of ushering in some new things with Bedrock.

“It’s so hard to pick,” he said adding that the Hudson site stands tall as one of them. “I call it the exclamation point on Woodward. The tower just keeps rising and at the end of this year it will be 45-60 stories and in early 2025 you will all be invited (to see it).”

Detroit’s J.L. Hudson’s site on 1208 Woodward Ave., was purchased by Bedrock, and the 685-foot-tall Hudson site will be developed into 1.5 million square feet of office, retail, food, beverage, hotel, residential, event and meeting, parking, and activated open spaces. A new plaza would also be situated between two buildings that will cut through the center of the development with designed office spaces, event venues, around 100-plus residences, and a hotel at the downtown location. The original building was shuttered in 1983. The 49-story building, initially approved by City Council in 2017, is proposed to cost $1.4 billion.

Some questions from the audience included one asking about the prioritization of diversity on the staff of the companies represented on the panel.

Bonner said that he doesn’t always think about representation in the traditional way because when he looks around the room he sees inclusion because it’s built-in at Bedrock.

“I’m an African. I have several opportunities to show that I can do what I can do and others allow me to do what I do to that process, I’ve had opportunities to express my thoughts and I would suspect that my specific experience maybe created a different course of action,” Bonner said. “(I) often find that diversity will strengthen your decision making. … It’s so sad that we’re still talking about it, you know, candidly, but it’s important don’t get me wrong. It’s important.” she’s providing community service. We are so proud that Motor City Match has played a role in helping to bring such a wonderful business and support system to this neighborhood.”

The business, located at 15429 Schaefer, is supported by a $75,000 grant from the 20th round of the Motor City Match program. The funding contributed to Brintley’s renovation of the space.

“Laundromats have been a mainstay in communities for decades, but not all are created equal. Our Community Laundromat is not only providing an essential service for Detroiters but giving back to the community substantially,” said Sean Gray, vice president of Small Business Services for the DEGC. “We hope its opening will inspire others to make a difference in their neighborhood.”

After 21 rounds, Motor City Match has distributed $11.4 million in grants for start-ups and new businesses located throughout the city of Detroit. Through the pipeline of resources provided by the Detroit Economic Growth Corporation’s small business teams, more than 1,600 businesses have received assistance along their journey to open their doors. This is all part of the organization’s greater goal to enhance the city’s economic development and beautify its commercial corridors.

Motor City Match continues to grow Detroit’s small-business landscape. Combined with its other small business programming, DEGC is creating a sustainable small business environment that nurtures new concepts and ideas. Motor City Match offers business owners a wide range of assistance in five tracks: Plan, Develop, Design, Cash and Restore. The program helps Detroit entrepreneurs plan, formalize, launch, and grow their business by providing business planning classes, site-selection assistance, financial planning, legal aid, design services, and gap funding loans have a lower down payment requirement, allowing individuals with lower credit scores to secure a home loan. Because of this, the government takes on greater risk with FHA borrowers. To cover this risk, FHA requires that all borrowers enroll in FHA mortgage insurance.

As part of their FHA mortgage insurance, borrowers must pay an ongoing premium for their coverage, and that is where the new savings will roll in. The yearly premium gets divided into borrowers’ monthly mortgage payments, and starting in late March, that rate will drop. This means lower monthly payments. How much will homebuyers save?

It depends on the price of the home, as the cost of ongoing MIP is a percentage of the loan balance. Currently, borrowers pay 0.8% - 0.85% of the loan balance (the most common MIP cost) but beginning on March 20, 2023, new borrowers will pay 0.5% - 0.55% instead. For example, a borrower in a $265,000 home will save about $800 annually. According to HUD, a borrower with a $467,700 home, the national median home price in December 2022, will save more than $1,400 annually.

What’s the big picture

Lower mortgage insurance premiums will help expand homeownership opportunities for thousands of families across the United States. During the pandemic, home prices and mortgage rates skyrocketed, making it difficult for many low- and medium-income borrowers to purchase a home. According to the White House, first-generation homebuyers and firsttime buyers of color were particularly affected by pandemic-era price increases. The newly-announced MIP rate decrease will help remove some barriers to owning a home. Owning a home is one the best ways to build generational wealth, and I celebrate the opportunity to make homeownership more attainable.