Joe Guillen

Detroit Free Press

DTE Energy plans to develop a large solar energy array on 10 acres in Detroit — a project designed to help stabilize a west-side neighborhood and make use of vacant public property.

The solar array would be built on a 20-acre, city-owned site south of I-96 at Greenfield Road known as O'Shea Playground, which was decommissioned by the city's recreation department in 2011. Since then, the O'Shea recreation center has been stripped and damaged by fire while the surrounding community has dealt with population loss and the effects of blighted homes.

City officials partnering with DTE envision the solar array as a catalyst to enhance the neighborhood, along with concurrent plans to use federal funds for nearby blight demolition and a commitment to train residents for "green collar" jobs focused on the reuse of vacant land.

"If people are envisioning what is the most energy-efficient quarter square mile of the city, it will be known as this neighborhood from here on out, and with that comes an opportunity to attract renewable energy enterprises," Detroit planning and development director Maurice Cox said on Thursday. "We are going to aggressively market this neighborhood as a place to possibly locate start-up businesses."

The Detroit City Council must sign off before the project can begin.

The council is expected to vote Tuesday on whether to approve a 20-year lease between the city and DTE. If approved, the city will receive a one-time payment of $25,000 under terms of the lease. DTE also has agreed to maintain a portion of the city property around the 10-acre solar array. The value of the maintenance, which the city would otherwise be responsible for is estimated at $400,000 over the life of the lease. DTE's use of the land also would put the property on the tax rolls, generating about $1.4 million in new tax revenue over the 20 years.

Councilman Scott Benson said the revenue and benefits to the city — in addition to the $25,000 lease payment — need to be explained fully to other council members. Members of Mike Duggan's administration, which negotiated the deal with DTE, said a revenue report would be prepared and given to council members before Tuesday's vote.

"There are a number of concerns that were brought up at the table about how lack of equity, lack of community benefits, lack of the city actually seeing anything besides just giving nine-and-a-half acres to DTE, which I don't believe is what the intent is," Benson said at Thursday's meeting of the council's planning and economic development committee.

Plans for the solar array in Detroit stem from a larger, 250-acre DTE solar energy project in Lapeer, where the utility is developing what it calls the "largest utility-owned solar array east of the Mississippi." The project at two sites there will generate about 50 megawatts, enough to power 9,000 average-size homes with zero-emission solar energy, according to DTE.

DTE officials at Thursday's council committee meeting said Duggan convinced the company to bring a portion of the project to Detroit, enough to generate two megawatts. According to the Solar Energy Industries Association, a Washington-based trade association, one megawatt of solar energy can power an average of 164 homes.

"Not only does this project provide a productive use for a large piece of vacant, blighted land in an environmentally sustainable way, it will bring considerable benefit to the O'Shea Park community," Tom Lewand, Duggan's group executive for jobs and the economy, said in a prepared statement. "We are using this project as a catalyst to help make the surrounding neighborhood one of the most energy efficient in the city."

The solar panels in Detroit would be between 8 and 10 feet off the ground and would be tilted away from I-96, according to DTE.

DTE's decision to develop part of the Lapeer project in Detroit will cost the company $1 million more than if the entire project was built in Lapeer, according to the company.

DTE's reason for coming to Detroit despite the added cost has not been explained. Duggan spokesman John Roach said that question is best answered by DTE.

Rodney Cole, DTE manager of regional relations, declined to answer questions on Thursday until after the council voted on the lease agreement. "Out of respect of the council and their process, it's best to have some discussion after that," Cole said.

During a lengthy discussion about the project at Thursday's council committee meeting, DTE was not asked about how much money the utility would make off the project.

The O'Shea site was picked after DTE and the city conducted research and made site visits to figure out the best location for the project based on DTE's technical requirements and the city's land reuse strategy.

The city plans to use DTE's $25,000 lease payment to fix up and beautify a 2-acre chunk of the O'Shea site. The city also has secured more than $350,000 from the federal government and philanthropic sources to help revitalize the site, according to a project summary.

Councilman Gabe Leland, who represents District 7, which includes the O'Shea site, hosted one of five community meetings held so far on the project. Leland said more meetings are planned to keep the community informed.

Leland described support for the project among residents at the meeting as a "mixed bag." He said some residents are leery because the area has long been neglected.

"I got a sense that while there is still some questions lingering and still some concern because this is not your typical development, the audience was relatively positive," Leland said, adding that he will work with the community to find a way to salvage some of the indoor recreation facilities. The vacant O'Shea rec center is to be demolished.

Detroit-based Walker-Miller Energy Services will provide free energy audits for homes in the immediate neighborhood. Lewand said many of the homes could qualify for free furnace and appliance replacements.

Dave Meador, DTE's vice chairman and chief administrative officer, said the project demonstrates a commitment to renewable energy.

Contracts with the city of Detroit require parties to divulge any political contribution made to elected officials. A contribution disclosure form attached to DTE's lease agreement shows the following amounts donated from DTE Energy's board of directors and executive committee to sitting Detroit elected officials between 2012 and March 10: $14,200 to Duggan's campaign; $1,000 to Councilwoman Mary Sheffield's campaign, $1,000 to Leland's campaign, $1,000 to Benson's campaign and $500 to Councilwoman Raquel Castaneda-Lopez's campaign.

Contact Joe Guillen: 313-222-6678, jguillen@freepress.com or on Twitter @joeguillen.