Detroit and Houston: Shared Urban Challenges and Solutions
Jonathan Brinsden
DETROIT – For many years Detroit relied heavily on a single industry, similar to Houston’s past dependence on energy. Suburban flight emptied much of the city decades ago, but in recent years residents have been returning to the central business district. That resurgence has been driven in part by leading entrepreneurs, civic-minded developers and philanthropic organizations who invested in Detroit’s future, a pattern Houston has seen as well.
“Houston has faced its own challenges, and we see some similarities between the two cities,” said Jonathan H. Brinsden, CEO of Houston-based Midway, at the 2018 ULI Spring Meeting in Detroit. “Like Houston, Detroit had a core group of citizens who rallied around the city — civic-minded developers, entrepreneurs and local leaders.”
Brinsden pointed to two prominent developers who have played major roles in Detroit’s revival. Dan Gilbert, a Detroit native, through his firm Bedrock controls more than 90 properties in the urban core, totaling roughly 15 million square feet. Chris Ilitch and Olympia Development of Michigan are central to The District Detroit, a sports-and-entertainment project exceeding $1 billion that includes Little Caesars Arena and nearby Comerica Park.
“It’s fascinating,” Brinsden added. “Two local families are investing heavily downtown, and they seem focused less on immediate returns and more on long-term value. They’re building the city’s future, and that long-term commitment will be a lasting legacy.”
Just as energy once dominated Houston’s economy, the auto industry dominated Detroit. Both cities have worked to diversify: Detroit is positioning itself as a hub for technological innovation, including development around autonomous vehicles, while Houston has broadened beyond energy into diverse sectors.
Young professionals and creatives are helping revive downtowns in both cities. “We’re on similar paths,” Brinsden said. “The key question is how to keep creating an urban environment that endures and attracts the creative talent necessary for a thriving city. You need something compelling to make people want to be there.”
Philanthropy has also played an important role in the rebirth of both cities. In Houston, the Kinder Foundation, established by Richard and Nancy Kinder, has funded major projects: $70 million to accelerate improvements to Memorial Park, including a nature bridge and trail connections; $50 million for the Bayou Greenways 2020 initiative that created 1,500 acres of new parkland; and $30 million to develop a 2.3-mile linear park along Buffalo Bayou.
“We’ve been fortunate in Houston to have forward-thinking developers committed to both the city and their companies,” Brinsden said. “Their projects have been game changers.”
Private citizens in Houston remain active in shaping the city’s future, investing in responsible, sustainable development. “Houstonians continue to show a willingness to invest in a better city,” he added.
Rendering of Buffalo Heights project.
Midway is partnering with two major Houston families on what Brinsden calls “generational” developments. One project is the redevelopment of Buffalo Heights, a 50-acre mixed-use district near Buffalo Bayou Park, the Washington Avenue corridor and downtown. On behalf of Russell Gordy, founder and president of SG Interests, Midway envisions weaving individual assets into a cohesive district with an authentic identity.
“Mr. Gordy supports development that benefits the city and local residents,” Brinsden noted. “He wants well-considered growth that helps make Houston a special place to live and work.”
Another transformative effort is East River, proposed for the former KBR site east of downtown. That 150-acre, largely abandoned office and industrial property—fronting a mile of Buffalo Bayou—could ultimately accommodate as much as 8 million square feet of retail, office and entertainment space. East River is a joint venture with Cathexis, owned by William Harrison, an established Houston investor in energy and real estate.
Large-scale redevelopment requires long-term collaboration between private, public and philanthropic partners. “Change doesn’t happen overnight,” Brinsden said. “But in Houston, the cooperation among public, private and philanthropic sectors makes ambitious projects possible.”
There is a key difference between the two metropolitan areas: Detroit declared bankruptcy in 2013, the largest municipal bankruptcy in U.S. history. Through that process the city reduced roughly $7 billion in debt and made significant cuts to retiree obligations. After years of fiscal oversight, Detroit has recently posted consecutive balanced budgets and was released from state financial control.
“That’s one factor we don’t share,” Brinsden observed. “Detroit is rebuilding after a historic financial crisis, while Houston has been recovering from Hurricane Harvey. I wouldn’t wish either hardship on a city, but both crises prompted creativity, collaboration and entrepreneurial energy that helped spur recovery.”
