DETROIT (FOX 2) - Seven companies have partnered to invest $35 million in Detroit neighborhoods.
Mayor Mike Duggan made the announcement Monday morning with leaders from each of the companies: American Axle, Blue Cross Blue Shield of Michigan, Chemical Bank, Fifth Third Bank, Flagstar Bank, Huntington Bank, and Penske Corporation.
Duggan says Detroit is "taking the strategy that worked in Midtown and scaling it citywide to bring more development to neighborhoods across our city."
Each company is donating $5 million to the revitalization of Detroit's neighborhoods. Seven different neighborhoods are in line to receive the funds: Grand River Northwest, Jefferson Chalmers, Russell Woods/Nardin Park, Campau/Banglatown, Warrendale/Cody-Rouge, Gratiot/7 Mile, and East Warren/Cadieux.
Duggan said the money will be invested in storefronts for shops and restaurants, in vacant buildings for new apartments and affordable housing, and that parks and street scapes will also be upgraded. Duggan said the city's $250 million dollar affordable housing fund will preserve 10,000 affordable units, while creating 2,000 more.
"This is what the people of Detroit have been waiting for. 'When does the development start to spread to my neighborhood?'" Duggan said.
The donation is believed to be the largest to neighborhood development in Detroit's history.
Duggan said, beginning next year, leaders from each of the seven neighborhoods will begin meeting with the companies to determine how the funds will be used. Duggan said the neighborhoods can also decide to take the funds from the Strategic Neighborhood Fund's pool, or team up specifically with one of the companies as a neighborhood sponsor.
The original three Strategic Neighborhood Fund spots are Livernois/McNichoos, Southwest/Vernor, and Islandview/Greater Villages.
The funding for Strategic Neighborhood Fund efforts is expected to leverage another $70 million in private investment.