Why won't high tech companies open offices in Detroit? (Ann Arbor: fit in, 2014)

[NOLA101]

Why would tech companies move from Silicon Valley to Detroit? That makes no sense.

Michigan isn't a major tech center. There is nothing in Michigan that would be an obvious draw.

[Arthur Digby Sellers]

Another factor the region has going against it is the "blue collar" mentality that casts a suspicious eye towards higher education and college-educated people. While there are obviously plenty of educated people working in autos and other sectors, you will find this attitude among many of the unskilled and skilled workforce who think college is a waste of time and that young people should just "learn a trade" or go work in a factory.

[Coldjensens]

Even the automakers have difficulty attracting techies to Michigan, especially Detroit. The kids graduating from school today want to go live in places they see as exciting. Austin, New York, San Francisco and even LA. Detroit is only beginning to offer a hipster urban lifestyle, and many things here do not appeal. Midtown and downtown rents are expensive, residents also have to pay massively higher car insurance, city income tax, and parking. In exchange they get virtually no city services, limited range for safe exploring the city, and a somewhat exciting place to live (especially if they can walk to the DIA).

I have been suggesting that GM buy and renovate a midtown or downtown apartment building with parking. Then they can offer young techies working at Warren tech Center a $400 a month apartment with parking in a cool place to live. Then if they subsidize the Detroit income tax they might start attracting them and it would probably cost less than the marketing/recruiting programs they are wasting their money on.

[y2c313]

Originally Posted by animatedmartian

But then what incentives would such businesses have in locating in the city over locating in Detroit's suburbs? All of the Big 3 car companies have their R&D facilities in the suburbs, a number of IT companies already have a presence in Detroit's suburbs, it's generally easier to develop in the suburbs and taxes are cheaper as well as the schools in many areas already topping the rest of the state. Why wait for a school district to improve and for crime to go down when there's a suburb that is ready and waiting for new families?

Because suburbs are boring and it's becoming increasingly cool to locate in the central city. Besides, how is a city supposed to get better if you're not investing in it?

[NOLA101]

Originally Posted by y2c313

Because suburbs are boring and it's becoming increasingly cool to locate in the central city. Besides, how is a city supposed to get better if you're not investing in it?

Detroit isn't really a traditional center city. It isn't really denser/more urban than the older suburbs.

If you're a lover of hard-core urbanity, you aren't going anywhere in Michigan, which doesn't really have any "cool" urban locales. Detroit, compared to most cities, is very sparse and auto oriented, with almost no urban feel.

[mostie]

For Detroit retirees, pension cuts become reality

Just one of many reasons I sure wouldn't open a business of any sort in that city, or even close by. Not to say that Detroit wasn't a jewel in its heyday, but those days are long gone.

[Coldjensens]

Originally Posted by mostie

For Detroit retirees, pension cuts become reality

Just one of many reasons I sure wouldn't open a business of any sort in that city, or even close by. Not to say that Detroit wasn't a jewel in its heyday, but those days are long gone.

I am confused by this comment. What do City retirees pensions have to do with opening a business in the city?

Fortunately for Detroit, few people seem to agree wit you as new businesses are opening here every week.

[NOLA101]

Originally Posted by Coldjensens

I am confused by this comment. What do City retirees pensions have to do with opening a business in the city?

Fortunately for Detroit, few people seem to agree wit you as new businesses are opening here every week.

I would be very surprised if Detroit was experiencing significant growth in new businesses. We're talking the City of Detroit, right? Not the metro area?

90% of the City of Detroit is in long-term decline.

[y2c313]

Originally Posted by NOLA101

I would be very surprised if Detroit was experiencing significant growth in new businesses. We're talking the City of Detroit, right? Not the metro area?

90% of the City of Detroit is in long-term decline.

You'd be surprised. All of the investment isn't just happening downtown and midtown.

[Coldjensens]

Originally Posted by NOLA101

I would be very surprised if Detroit was experiencing significant growth in new businesses. We're talking the City of Detroit, right? Not the metro area?

90% of the City of Detroit is in long-term decline.

Not sure where you get that statistic. Is it less than 5 years old?

In any event, we are talking about businesses, not neighborhoods. Clearly you have not been Downtown in a few years. Many neighborhoods continue to decline and a few are being revitalized. However, Downtown and mid-town continue to see steady growth of new businesses and condos/apartments. Yesterday, I went on a four block walk. I saw two new business that were not there a week or two ago. I saw eight buildings under renovation to house either new residents and/or new businesses. That is in four blocks. There are scores of similar blocks downtown and midtown. This is before the new stadium complex and the M1 are completed. It is only going to get better. That is the neat thing about downtown and mid-town. Every month it gets better. There are few or no other cities that can say that.