CH2Mâ€™s Mike Matichich and Mark Mittag recently published theÂ blog for the Smart Cities Council (SCC) on how collaborative funding builds new economic opportunities in Detroit. CH2M is a member of the SCC;Â learn more about SCC and their vision of a world where digital technology and intelligent design have been harnessed to create smart, sustainable cities with high-quality living and high-quality jobs.
By: Mike Matichich and Mark Mittag, CH2M
The Detroit Future City Strategic Framework is an ambitious initiative aimed at creating vibrant, open spaces and thriving neighborhoods throughout the city of Detroit. Its vision and recommended actions are intended to guide decision making by all of the stakeholders in Detroit.
Detroit Future City Implementation Office commissioned the Center for Community Progress (CCP) to identify creative funding strategies to support the Strategic Framework development and implementation. CH2M was invited to join CCPâ€™s team, and worked closely with CCP and the Natural Resources Defense Council (NRDC) to support this exciting effort.
By combining some of the industryâ€™s most advanced analysis tools with a collaborative funding identification process, the resulting funding study evaluated more than 45 funding sources â€” many of them previously untapped â€” to help implement the Strategic Frameworkâ€™s vision into a future reality.
Primary sources for identifying these funding opportunities came from the Smart City Councilâ€™s Smart Cities Financing Guide and the Infrastructure Financing Options for Transit-Oriented Development, which CH2M developed as part of EPAâ€™s Smart Growth Program in 2013.
As part of this comprehensive study, we assessed the applicability of dozens of funding strategies against eight priority land use options, including:
- Productive landscape including urban farms, solar, biofuel and tree farms
- Green stormwater infrastructure
- Natural land use including meadows and forests
- Public open space for parks and recreation
We then grouped the most feasible funding opportunities â€” traditional to emerging â€” into six primary categories:
1. Direct fees including user fees and general funds
2. Debt tools including industrial revenue and green infrastructure bonds
3. Credit assistance tools including federal loan guarantees
4. Private sources including public-private partnerships and social impact funds
5. Value capture mechanisms including special improvement districts and tax increment financing
6. Grant funding including state, federal and institutional options
As a result of this CCP-led work, Detroit Future City, city agencies, developers and other stakeholders now have a range of funding options for the envisioned 13,000 acres of open space in Detroit.
For cities seeking creative funding solutions for implementing smart technologies, this study provides a powerful model for mapping available funding sources to priority development needs and capital investments. (View the full matrix of funding options in CCPâ€™s report Open Space in Detroit.)
Mike Matichich serves as the firm wide Practice Area Lead for Financial Services consulting at CH2M. He has more than 30 years of experience in helping clients develop and implement financing and funding strategies for their infrastructure development programs.Â