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cover story The Real Story About Detroit Despite tales of doom, downtown Motor City is rising like a Phoenix from the ashes. By Sandra Lane D escribing Detroit may be compared to the Dickens' classic, A Tale of Two Cities, wherein it is stated, "It was the best of times, it was the worst of times." Most of the stories written about Detroit describe the desperate situation of some of its residents, the crime, the poverty, and the city government's bankruptcy. Yet, there is another side to Detroit, and that is that large sections in the downtown area are being revitalized, bringing many new jobs and hope for the future of the city. The story not told is that many people are moving to Detroit to work in an innovative new high-tech center that one day may rival California's Silicon Valley. In fact, some of the Detroit companies are extending invitations to unemployed techies in California to "come on over." It all began in 2009, when Dan Gilbert, chairman of Rock Ventures and Quicken Loans and partner at Detroit Venture Partners, made a commitment to play a role in developing a creative, tech-focused urban core where people would want to live, work, and play. In 2010, Gilbert moved his family of companies, including Quicken Loans, to the heart of Detroit's central business district and established a tech hub there. Today, the Quicken Loans family of companies occupies several downtown buildings and employs approximately 12,000 team members. In addition, in the last three years, they have recruited more than 90 companies to move into downtown Detroit to join them. Looking around the Quicken offices reveals an upbeat and innovative atmosphere, one that appeals to young, creative individuals. Bright colors create a feeling of excitement. Walls are painted in bright red, orange, or avocado green. Upholstery on chairs and seating features bright, multicolored stripes. Team members take breaks from their work to play Ping-Pong and snack on popcorn, which is always available. Other perks include Xboxes and a weekly dose of veggies and hummus. At "Big Wheel Parking Stations," employees can check out a scooter or a three-wheeler for an indoor spin. Kwaku Osei, one of the team members who works at the parent company, Rock Ventures, is there on a two-year fellowship, under a program called Venture for America. This program is designed to help promising young college graduates learn the business and prepare to be an entrepreneur themselves. Osei is a 24-year-old marketing graduate from Virginia, who is an executive associate to chairman Dan Gilbert. Osei says he was a bit cautious at first about moving to Detroit, but after touring the downtown area and viewing the many new restaurants, shops, and businesses, he realized what a great opportunity he had been offered. There are many recreational opportunities downtown as well, he notes, such as in Campus Martius Park, which anchors a two-square-block district. It has two stages, where concerts are planned in warm weather, open spaces for walking or playing games, and a seasonal ice skating rink. In the summer, sand is brought in to build an artificial beach. Now Osei lives in a new three-story townhouse located about a mile from his office and in close proximity to the stadiums where the Detroit Tigers and Detroit Lions play. Osei says that rent is very reasonable, but that it took him a few weeks to find his present residence, which he shares with two other guys. The newly constructed town home has three bedrooms, three baths, 2,000 square feet, and rents for $1,800 per month. Because all three tenants work in downtown, they get a $2,500 incentive to live in the downtown area. So Osei's portion of the cost for housing is about $500 a month with the discounts. Because of the influx of people working and living in downtown Detroit, Osei says that some apartment buildings have a waiting list of three to four months. When asked if he feels safe living in downtown Detroit, Osei answers in the affirmative. "Rock Ventures has a command center with cameras that monitor all of our locations," he explained. "They also have a security team on the street both day and night." Presently, Rock Ventures owns or controls almost 8 million square feet of space in some 40 downtown Detroit properties. It is the city's second largest private real estate owner behind only General Motors. "Detroit's bankruptcy does not deter our downtown Detroit investment strategy," said Matt Cullen, president and CEO of Rock Ventures. "We are as bullish as ever on the future of Detroit and will continue to invest in properties we believe strategically fit our mission to transform the city." The M Report The M | 19