Name: Inside J.P. Morgan Chase's Detroit Revitalization
Uploaded: 2017-09-07
Duration: 5 min 56 s
Description: The bank has invested millions into the town

Home of the US motor industry and the music phenomenon. Raising the white flag the city filing for bankruptcy. The economy was it prevented people from opening and starting new businesses and I don't think that the banks could get involved because the market wasn't just there for them. Decades of decay to bring down the one time industrial giant. I think for a long time. People aught that through the Housing Urban Developement and other Federal programs they would come in and solve the problems and the fact is the Federal government has less resources, it's just the fact, what the smarter cities and leaders are recognizing is that they have to turn o businesses and other entities. We are particularly please to be here today to be announcing Seen the $ 100 million investment in Detroit. So we provided both capital and capacity to community development finance institutions, which are creating jobs, helping businesses grow. We're investing in infrastructure, buildings, CDFIs, small business. [ BLANK_AUDIO ] I wanted to open up a restaurant. Her business in Detroit. A lot of the banks that I was approaching were just too intimidated I think and nervous. A, it being a restaurant and the failure rate of restaurants is really high. And b, it being a location in a neighborhood that hasn't really developed quite yet. So I think the challenge has been that most small companies just are not bankable companies. The credit score isn't very high, they don't have enough collateral. Perhaps they've lost money in the last year, and perhaps their balance sheet isn't as strong as a bank would like. I had some money to start the project, but I needed a substantial amount to finish. And that's where Where I gotten money through Detroit Development Fund. When we first announced our investment in Detroit in 2014, our small business focus was which are great for downtown. But we realized we weren't having an impact we wanted and we shifted to much more focus on minority entrepreneurs who needed capital, who needed counselling. Needed advice. We try to go where we think there's some stability in the neighbourhood. And where we can find empty retail space. Along the way we're trying to make sure that when we do residential rehab that a good portion of that is affordable rental, or affordable sale. So that we don't get to a point where we're creating A hub in the neighborhood. And the home values go up or the rentals that the people who now live there can't live there anymore. And we'll make our way over to the studio which is the coolest, affordable, unit you will ever see. So we are developing a $ 4 million mansion. Mixed use of projects. 8 town homes, 4 apartments, 1, 200 square feet of retail. This is really the first effort in years to do ground up development in the neighborhoods in Detroit. And so it always takes somebody to take the first So when we started the project had some neighbors who frankly were less excited. But the reason that we're able to have a transformative impact on the neighborhood is because there were people who were here before us who held on, and who put money into their houses. I came here in [ INAUDIBLE ] Well, we came to Detroit in 69. Our first houses we paid $ 1, 000 for. $ 1, 000 down. The young kids are doing great things. I'm not finding fault with any of them. I'm glad they're here. I'm glad that they are taking on these projects. They seem to be able to get money to fix them up. What we couldn't, we fixed them up as best we could. And now they're mad because they can't get it from me for $ 20, 000. They thought that I would be willing to sell it for cheap. Two family flats in West Village sell for [ SOUND ] 200 to 300. [ MUSIC ] Well what's the business case for the big companies invested in Detroit? First of all, they need to attract talent. And the other part, frankly, is that a lot of companies got caught up in the meltdown, the mortgage mess. And they had to take a hard look in the mirror at their own practices. I think what you're seeing is a renewed sense of social responsibility and, certainly, when it comes to J. P. Morgan Chase, Detroit has been a huge beneficiary of that. But where a lot of the job growth, I think, will come in the future are smaller enterprises that might be 25 employees. [ INAUDIBLE ] If those companies can grow, the net result of having a lot of employers adding small numbers of jobs can equate with what the big employers used to be. Even the most optimistic people in Detroit would tell you the work is far from done. Gentrification word is thrown around And is talked about. And there's ways of doing things tastefully and being inclusive and there's ways of not. And so it was an opportunity to show the kids or for them to see, to be very frank, a 40- year- old black man whose business partner is a 43- year- old black man, who are really two kids just from the inner city. Who believe in developement and I wanted to change people's lives through real estate developement was exciting for us. One of the hopes that we had was, Chase has is that if we do well it can be duplicated in Baltimore, in New Orleans and in other cities and that's kind of the test. that they're looking for. We can do it here, why can't we move it to other cities that need the same kind of assistance for their population?

The bank has invested millions into the town