Lunch at Bastone 

Tom December
President of the Skylofts Royal Oak Condominium Association

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"If I were in city government . . ."

Tom December used those words at least four times during our conversation, as we explored the impact of condos on the quality of life in Royal Oak. Friendlily intense and articulate, December also excitedly and repeatedly used a mantra, "gold mine," to refer to the economic potential of the downtown segment of Washington Avenue and Main Street.

Before getting to specifics, Tom and I addressed the apparent glee of condo-haters about the fact that some Skylofts units may be for sale. We agreed that the overall real estate market is softening, so both condos and free-standing homes are taking longer to sell. About Skylofts, itself, he said that the Board* "does not monitor the sale of units" and suggested that those who want to know can reach out to their favorite real estate agent

December added, "Some purchasers were investors who intended to sell shortly after purchase but the market has softened."

Tom stated that the major condominium projects coming on stream in the next 2 years -- Main North, Condos on Main, The 5th, and 558 Main -- conservatively represent $30 million-plus in real estate risk capital financed by builders, banks, insurance companies, and private investor groups.

 "Financial institutions do not expose themselves to that kind of risk without intense due diligence as to the demand for these upscale condominiums. Just take a look at downtown Detroit; it's exploding with loft condo conversions of commercial buildings. I work downtown for Compuware and keep a very close eye on the revitalization of the downtown area. It’s amazing what progress is being made.

"Now you look at Royal Oak which already has a vibrant downtown and stable neighborhoods, and it’s obvious the market is ready.The reality is empty nesters and younger generations are not satisfied with the sterile suburban environment. They want to be closer to a community and they want the convenience to walk to entertainment and shopping venues. And let’s face it, they want to reduce driving cars using evermore costly gasoline. What a great opportunity for Royal Oak to leverage this new social change.

"This will bring a new dynamic to the downtown community with fabulous benefits for the whole city."

Tom’s first excited reference to Royal Oak’s gold mine came as he reviewed demographics and suggested that more downtown-area condos will  affect the local economy positively. The sale price for a typical Royal Oak home is $189,000. Assessed value of the typical condo will run $300,000, December estimates. "Despite the rather confusing impact of Headlee and Proposal A, that has to be a net gain for the city."

I interrupted his enthusiastic monologue to ask what benefit Skylofts owners get from paying the extra 2 mills levied on all property owners in the Central Business District. Not missing a beat, he said, "The city has to provide additional services required by the retail establishments, take care of the sidewalks, things like that," causing me to infer that he does not think the additional tax is unfair to people living in a high-rise. However, Tom stated that additional investments must be made to attract the risk capital necessary to upgrade the downtown environment.

Tom went further. He favors making the effort to enact an entertainment tax (he deplores hearing it called a "sin tax"), "in recognition that existing property owners are supporting downtown city services from which most neighborhoods don’t benefit. We should partner with surrounding cities such as Ferndale which is also benefiting from an entertainment venue and lobby the State for changes in the law."

December, who is Vice President of Global Recruiting for Compuware, used to live in Southfield. When Compuware moved to Detroit, he wanted to move closer to work and found the being-erected Skylofts the ideal location: "Shorter commute, urban lifestyle, walking to entertainment, restaurants, and retailers—sure, we need to attract more retailers."

A Skylofts owner for just under two years, December quickly became civically active, appearing before the city commission on building issues. He was one of the Skyloft Board members I interviewed last year. [See]

Returning to his gold mine excitement and "if I were in city government" mode, Tom lamented the "lack of high profile communication by the city administration about a long-term vision" from otherwise competent and helpful city officials. He speculated that the officials see their constituents as homeowners and neighborhoods, "but it should be possible -- without in any way harming those constituents -- to encourage and serve new constituents. Condo owners bring a more affluent demographic. Developing the downtown-focused Washington/Main gold mine," he maintains, " needn’t get bogged down in such current debates as the north end-south end dialogue."

"Even people from the Seniors’ residential complexes can come to party," he mused, after relating that business colleagues from several cities in the area already arrange to meet in downtown Royal Oak. On a roll, he sees replicating the "successful Farmer’s Market concept on a smaller scale with more specialty convenience stores in the heart of downtown – such as Pronto! is attempting to do with its Corner Store. If you’ve ever been to the Upper East Side of Manhattan and admired the fresh fruit and vegetable offerings in front of those quaint little convenience stores servicing the urban city dwellers, as well as specialty shops, you know what I mean in terms of a vision. It’s happening in Detroit."

Citing cities like Austin, Texas; Baltimore, Maryland; and Boston, Massachusetts, December recommends that the city retain a third party consultant to review the overall situation and make specific recommendations. "As we do in business, the consultants will apply critical metrics to measure the impact of proposed decisions . . . will identify best practices . . . the city will benefit from shared wisdom." Quarterly reviews would be part-and-parcel of implementing the gold mine vision.

Because this was a luncheon chat and not a structured interview, the conversation flipped here to a few nuts-and-bolts matters:

  • The city placed crosswalk stanchions where Skylofts residents and Barnes & Noble customers had requested. After those stanchions were vandalized and repeatedly struck ("accidentally or intentionally?") by drivers, they were removed, and the crosswalks are again hazardous for pedestrians. Waiting in Bastone, I saw December and two or three others have to very guardedly cross Main Street; after our conversation I had similar experiences visiting his condo and returning to the parking lot. "The need is, as for example in Birmingham, to permanently install durable stanchions."
  • Downtown railroad crossings are not safe. The city can work to get such things as four gates instead of two; to install a solid median to prevent cars from driving around the gate. Such safety measures would make it unnecessary for trains to sound their 200-decibel horns at each crossing. "Mothers have to cover their children’s ears while providing the children with the otherwise exciting experience of watching trains go by. Not to mention what a boost it would be to retailers with shoppers having a more pleasant experience."
  • No speed limit signs have been placed between Eleven Mile and the railroad tracks on Main Street; very few drivers keep to the 25 mph limit.

December shares with other property owners – residential, commercial, neighborhood, downtown, Woodward Avenue – confusion over how his $7000 property taxes are allocated. The confusion persists even after excellent Town Hall presentations during the public dialogue about a so-called Headlee Override. As this is written, I am arranging to meet with Finance Director Don Johnson in an attempt to create a simplified yet accurate description of pre- and post-Headlee/Proposal A allocations.

Finally, Tom and I went to his penthouse 8th floor condominium overlooking the panorama of southeast Michigan; from Downtown Detroit on the horizon, to the Southfield Towncenter and north to the Top of Troy. Tom bursts with enthusiasm. "Just imagine. Royal Oak is at the epicenter of this great region, fantastic." We viewed the huge construction crane on the site of the new 5th on Washington 18-story condo structure. "Look at that, reminds me of New York. This building alone will change the entire environment along Washington. I can’t wait to see it finished and gleaming in the rising sun. 'You ain’t seen nothin' yet.'"

Other matters touched upon:

  • The growth of Royal Oak, and not just of downtown, will no longer come from current residents but from condo-focused development.
  • City government is not very effective at communicating with the public, with painting a vision. Instead, it reacts – generally well – to ongoing and routine problems as they arise.
  • Empty nesters don’t want to move to "sterile suburbs."

"If I were in city government . . . "

"Why don’t you run for elective office?"

"If circumstances develop positively, I would consider it"

FJV -- March 2006

*A 5-person Board serves the general interests of co-owners in the 80-unit Skylofts. Committees are assigned specific duties like monitoring Building Issues or interacting with Commercial Tenants. 

List of Coffee Conversations

 

Email from Versagi to December
Today's Wall Street Journal has an op ed piece citing Richard Florida's "The Rise of the Creative Class" book* which you have several times mentioned. If you don't receive WSJ, you might want to borrow someone's. I'm not sure whether the publication's online edition grants access to nonsubscribers. 

December's Reply
Thanks for the tip. Just took the elevator down to Barnes & Noble and got the WSJ (urban convenience at its optimum). Interesting article.  Just imagine how far ahead of the curve Royal Oak is with it's stable neighborhoods and tax base. How obvious that any city that has a chance at attracting people appeals to "empty nesters." Duh! Like a good majority at Skylofts and I'm sure the buyers at Main North and the 5th. 

"Gentrification, gentrification, gentrification" -- the mantra for attracting the kind of diverse, convenience, service-oriented retailers to service the gentry and, by the way, giving the rest of the community choices they never dreamed of. Might even get them to venture to the hinter/wasteland of our downtown and not throw stones at the change.

Sorry I haven't taken advantage of the contacts that your interview of me generated but I'm transitioning to a new responsibility at Compuware and have been very busy. After June 1 I will be in a better position to pick up the gauntlet with vigor. 

The construction of the 5th is now on the third floor. Soon I will get the sunrise reflected from the gleaming structure with the sun rising in the

east and then, except for 15 days of the year where the building will block the sunset, the sunset in the afternoon.  How cool!  

* The WSJ piece referred to cites Mr. Florida's contention that older cities and older downtowns are not going to bring back middle class suburban families. He maintains, "What you can bring in is singles, the gay community, and empty nesters who are looking to be closer to an urban center."