Detroit Entrepreneur to Replace Blighted Homes with Tree Farming Operation

Excerpts:

“Three years ago, financial-services entrepreneur John Hantz proposed converting as much as 10,000 acres of vacant private and city-owned property here into the world’s largest for-profit urban farm, restoring swaths of land to the tax rolls and changing the face of Detroit’s blighted East Side.”

“Separately, the city approved last week a Michigan State University initiative to explore the viability of a $100 million urban-agriculture research center in Detroit that could span as many as 100 acres.”

“Large-scale farming in Detroit still faces a number of legal, political and logistical challenges, including concerns about soil quality, the price of the land and the impact on neighbors. The land sale also needs formal approval from the mayor and the city council.”

“Detroit has more than 200,000 vacant parcels—almost half of them residential plots—that generate no significant tax revenue and would cost more to maintain than the city can afford. Finding new uses for this land has become one of the most pressing challenges for a city that lost a quarter of its population in the past decade.”

“Mr. Hantz proposes to ease that burden by buying about 2,300 parcels and planting oak trees, then maybe fruit orchards and hydroponic vegetables. The hardwoods could be harvested and sold within a decade to customers looking for young trees, according to Hantz Farms.”

Detroit “cannot create value until we create scarcity,” Mr. Hantz says. “Large-scale farming could begin to take land out of circulation in a positive way.”

“Hantz is offering only $300 a parcel, one-tenth of what city officials wanted. It has agreed to clear the land and demolish as many as 200 structures—at an estimated cost of more than $2 million, offset in part by tax credits and state assistance—before beginning to pay roughly $60,000 a year in taxes on the land.”

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