Some Detroiters Living With Marathon Plant Pollution Find Peace

– At a PriceWritten by John Carlisle

Detroit Free Press

Presentation by Ryan Marchand Wayne State University

Oakwood Heights, 48217• A southwestern-Detroit neighborhood,

immediately adjacent to the Marathon plant (most-southern neighborhood, geographically)

• Pollution has been a problem for several decades• Mostly an Italian community• Majority of residents work(ed) at the steel mills

in the area • 2010 study by University of Michigan: most

polluted zip code in the state• Average home value: $16k

Marathon’s Solution

• Called the “Oakwood Heights Property Purchase Program”

• Purchase all of the surrounding land• Tear down homes on each lot (294 homes)• The anticipated “buffer zone” is roughly 100

acres• About 1,200 people will have to relocate

The “Deal”

• Minimum Purchase Price: $40k + half of home value (now at $50k) - Homeowners

• 60 days to sign• Minimum Purchase Price: $30k + 30% of home

value – Rental Properties; Tenants receive $3k if landlord accepted the buyout

Current Progress

• 239/294 properties have been purchased• 26 still actively working to complete sale of

their properties• 29 not yet showing forward motion• Those who chose to stay follow 2 mindsets:– Peace & Quite (no neighbors) – Model 1– Hoping for a better buyout offer down the road –

Model 2

Economic Principles

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References

Carlisle, J., The Detroit Free Press, 2014, Freep.com

O’Sullivan, A., Urban Economics, 8th Edition, 2012, 370 – 375.