The Detroit Metro Convention & Visitors Bureau (DMCVB) released a report saying “meetings are safe and thriving in Detroit” despite the city filing for Chapter 9 bankruptcy as of late last week.
“Officials managing the bankruptcy recognize that visitors and conventions are key to a successful city and will work hand-in-hand with the private sector to continue the positive momentum in Detroit,” said Larry Alexander, president and CEO of the DMCVB.
According to Alexander, the climate to hold meetings in Detroit is better than it has been in decades. He referenced the new 367-room, eight-suite Crowne Plaza Pontchartrain – Detroit Convention Center Hotel as a positive addition to the city, also noting that the Cobo Convention Center’s $279 million renovation is more than halfway complete (with a 40,000 square foot ballroom to be unveiled in September).
Due to its status as an independent, nonprofit economic development organization, the DMCVB is not directly impacted by the bankruptcy announcement, as it receives its funding from several sources unrelated to the government or local charity.
The DMCVB receives a two percent assessment on all hotels and motels with 35 or more rooms in Wayne, Oakland and Macomb Counties, as well as membership dues from the corporate community, private sector, trade and service organizations.
While Detroit meetings will likely avoid the immediate effects of the bankruptcy filing, citizens are left wondering what this could eventually mean for public services in the city, especially those designed to help neighborhoods with high poverty and unemployment.
“Services will remain open, paychecks will be made, bills will be paid, nothing changes from the standpoint of the ordinary citizen’s perspective,” said Kevin Orr, State-Appointed Emergency City Manager, in a press conference following the bankruptcy announcement last Friday.
Senior VP of Sales and Marketing at the DMCVB, Bill Bohde, stated the city has committed $1.5 million towards improvements to services including policing, public transportation and emergency response units, which are vital to promoting safety and ease of access for meeting attendees. There is also an eight-year debt support plan in place for the area, in which the state of Michigan would step in and help alleviate the deficit for the allotted time-frame.
"Everyone we have talked to is supportive of keeping their meeting in Detroit," he said. "Our goal is to continue to reinforce the city's growth as a thriving destination–you have to provide for safety and emergency vehicles in order to do this, and the $1.5 million is going to go into these areas and should take effect in the next 60 days."
Bohde said the city has seen other developers showing interest in bringing more hotels and businesses into the area, including a new Starwood Aloft 125-room hotel in the David Whitney Building, a mixed-use development, with a potential launch date of late 2014 or early 2015. He also noted a boutique developer from Colorado was contemplating the idea of turning the old firehouse downtown into an 85-room boutique hotel.
"There's always something going on in this city," Bohde said. "Detroit just also happens to be America's most misunderstood city."
Since Detroit is the largest city to ever file for municipal bankruptcy, it is unknown how long the court proceedings will last, but it is estimated the situation could take years to resolve.
“Detroit has been enjoying an amazing comeback and putting our financial house in order is part of that comeback,” Alexander said.
For more information on meetings in Detroit check out the official Detroit meetings website.
