Why won't high tech companies open offices in Detroit? (Ann Arbor: real estate, crime)

[SageCats]

Why won't new high tech companies open up offices in Detroit instead of the Silicon Valley? And why won't other companies relocate to Detroit? Wouldn't corporate taxes be lower in MI than in CA? And wouldn't it be the responsible thing to do in order to help rebuild Detroit? It would also ease the overpopulation in the SF Bay Area and would also help stop the "brain drain" of losing highly skilled workers that head for "greener pastures" in California from the mid west.

[animatedmartian]

What reason would they have to move to Detroit over other major cities like Chicago, Denver, Dallas, or Atlanta?

[SageCats]

Originally Posted by animatedmartian

What reason would they have to move to Detroit over other major cities like Chicago, Denver, Dallas, or Atlanta?

You are right. But all of those cities that you've described are booming in terms of population growth. They're already doing well. Detroit could really use the help in bringing more jobs to the area, bringing in highly skilled workers, and a population growth would help eliminate urban decay.

[brodie734]

Ann Arbor is home to numerous tech companies (Google, Barracuda, Expedia to name the big ones in addition to dozens of startups), so it is not a Michigan thing per se. It's about the environment and access to an educated workforce. Programmers can really make good money wherever so they have a kind of freedom that other professions just don't offer. Young programmers go to Silicon Valley or Boston or the Northwest because they want to be in those places. Detroit offers very little that those places can't match or beat, even on their best days Detroit or Oakland County are not San Francisco or Marin County. Even Ann Arbor has stuff going for it that Detroit really never will. This is not a slap at Detroit, which does very well in the IT sector all things considered, it's just the truth of it.

[f5fstop]

Originally Posted by SkySofiaLila

You are right. But all of those cities that you've described are booming in terms of population growth. They're already doing well. Detroit could really use the help in bringing more jobs to the area, bringing in highly skilled workers, and a population growth would help eliminate urban decay.

Companies don't normally move to where they can help a city, they move to locations where the workforce they need is present. Besides, Detroit is a dirty old city that made their own bed. Now, they just soak the MI taxpayers to keep them afloat.

[usroute10]

Originally Posted by brodie734

Ann Arbor is home to numerous tech companies (Google, Barracuda, Expedia to name the big ones in addition to dozens of startups), so it is not a Michigan thing per se. It's about the environment and access to an educated workforce. Programmers can really make good money wherever so they have a kind of freedom that other professions just don't offer. Young programmers go to Silicon Valley or Boston or the Northwest because they want to be in those places. Detroit offers very little that those places can't match or beat, even on their best days Detroit or Oakland County are not San Francisco or Marin County. Even Ann Arbor has stuff going for it that Detroit really never will. This is not a slap at Detroit, which does very well in the IT sector all things considered, it's just the truth of it.

Could you please elaborate? Ann Arbor has that world-class, world-renowned University of Michigan, which is a pretty big advantage, but besides that what does Ann Arbor have that Detroit "really never will"?

I don't know why Ann Arbor and Detroit can't work in tandem to attract these type of jobs - with great universities like University of Michigan and Michigan State University, and a decent university in Wayne State, you think could we could attract those Silicon Valley companies to Southeastern Michigan. I guess we have to lower taxes around here and continue to clean up/reform Detroit city.

[SageCats]

I was thinking about it being more about rebuilding a city. I understand that the government gives businesses in Detroit incentives to stay there. So, why not? More businesses will also ease the tax burden off of taxpayers who are essentially paying for a city that is 1/2 abandoned and boarded up. An influx in population and a rise in more businesses - especially high tech ones - could really help Detroit post-bankruptcy. A rise in population will also see a demand in a rise to build schools and hire teachers. The public school system will be challenged by charter schools and private schools that would be created, forcing the DPS to get its act together and clean up / repair and remodel the buildings.
An influx of people would also mean more taxpayers. More businesses and corporations would mean more revenue for the city and state, too.
I don't really see a con in attracting people to the area except for real estate prices going up... and many would argue that's not a problem.

Here is an article about a potential Silicon Valley - Detroit "partnership" involving self-driving cars - How the Self-Driving Car Is Turning Detroit and Silicon Valley Into BFFs | Adweek

[SageCats]

Originally Posted by usroute10

Could you please elaborate? Ann Arbor has that world-class, world-renowned University of Michigan, which is a pretty big advantage, but besides that what does Ann Arbor have that Detroit "really never will"?

I don't know why Ann Arbor and Detroit can't work in tandem to attract these type of jobs - with great universities like University of Michigan and Michigan State University, and a decent university in Wayne State, you think could we could attract those Silicon Valley companies to Southeastern Michigan. I guess we have to lower taxes around here and continue to clean up/reform Detroit city.

I think that the major universities do try to attract and retain its students in the mid west. But, like someone from Ohio told me, all of the major jobs are out in California and so the mid west sees a "brain drain".

[brodie734]

Originally Posted by usroute10

Could you please elaborate? Ann Arbor has that world-class, world-renowned University of Michigan, which is a pretty big advantage, but besides that what does Ann Arbor have that Detroit "really never will"?

I don't know why Ann Arbor and Detroit can't work in tandem to attract these type of jobs - with great universities like University of Michigan and Michigan State University, and a decent university in Wayne State, you think could we could attract those Silicon Valley companies to Southeastern Michigan. I guess we have to lower taxes around here and continue to clean up/reform Detroit city.

As you say, the University is a big advantage. It's almost like starting with a loaded deck... Ann Arbor gives a firm immediate access to young graduates from an elite school, some of whom are always going to be charmed into staying. You also get a lot of older people who have become jaded with the bigger scenes and are either nostalgic for the college atmosphere (either at U-M specifically or in general) or desire a smaller, more subdued environment. I'd also argue Ann Arbor's size is a benefit. Detroit is competing with other major metropolitan areas for talent whereas there are precious few cities of Ann Arbor's size that offer the same amenities and in-built opportunities*.

I agree that there are opportunities but there are still a lot of obstacles... for one thing, SE Michigan has traditionally lacked any kind of regional vision. Regional transit is a big must, the ability to get from San Francisco to a campus in Santa Clara County is a big thing in Silicon Valley that we lack. Detroit also needs to find a way to market itself to people beyond as a place for "urban pioneers" and would be gentrifiers to "save" a city or get in on the next Brooklyn. I mean, that's worked well but it's not going to yield so much in terms of cool factor.


* - <tangent> I've argued this before with my townie-born girlfriend, but I don't think there is anything especially unique about Ann Arbor except for it's size. You can find aspects of it in places like Madison and Austin (way bigger) or Burlington and Asheville (way smaller) or Berkeley and Boulder (way more suburban). Ann Arbor's size allows it to revolve more or less around a college without being JUST a college and it's location allows it to retain the kind of cache that outright suburbs just don't get. <end tangent>

[animatedmartian]

Originally Posted by SkySofiaLila

I was thinking about it being more about rebuilding a city. I understand that the government gives businesses in Detroit incentives to stay there. So, why not? More businesses will also ease the tax burden off of taxpayers who are essentially paying for a city that is 1/2 abandoned and boarded up. An influx in population and a rise in more businesses - especially high tech ones - could really help Detroit post-bankruptcy. A rise in population will also see a demand in a rise to build schools and hire teachers. The public school system will be challenged by charter schools and private schools that would be created, forcing the DPS to get its act together and clean up / repair and remodel the buildings.
An influx of people would also mean more taxpayers. More businesses and corporations would mean more revenue for the city and state, too.
I don't really see a con in attracting people to the area except for real estate prices going up... and many would argue that's not a problem.

Here is an article about a potential Silicon Valley - Detroit "partnership" involving self-driving cars - How the Self-Driving Car Is Turning Detroit and Silicon Valley Into BFFs | Adweek

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?