New Detroit ordinance hurts city-based contractors, says Black business alliance

DETROIT (FOX 2) - The Metro-Detroit Black Business Alliance speaking out after it says a new ordinance may hurt Detroit-based contractors.

The alliance held a press conference to argue against the Detroit City Council's new ordinance, called the Responsible Contracting Ordinance.

"What that ordinance stood to do, is absolutely change the way in which the city does procurement the way it does it's spending when it comes to contractors," said Charity Dean, President and CEO of the alliance.

It’s a move the group believes could devastate the very community it advocates for.

"The changes would give large suburban contractors priority over Detroit-based contractors," said Dean.

The Alliance also believes the Council failed to engage the community before introducing the new ordinance.

"In October of 2020 city council unanimously passed the Community Outreach Ordinance that requires community engagement on major decisions that impact Detroiters," said Dean. "This new ordinance that’s before city council received no community engagement."

After hearing those concerns from the alliance, FOX 2 checked in at Detroit City Hall for answers.

"Well, number one instead of doing press conferences let’s sit down and talk," said Council President Mary Sheffield.

Sheffield says there is no proposed city ordinance on the table designed to hurt Black contractors or businesses.

"This is really an employee-driven ordinance really elevating the voice of everyday workers to ensure they are properly trained, paid right, and are not subjected to unsafe working conditions," Sheffield said.

The council president said she wants to clear up allegations over the bidding process and preferential treatment for suburban contractors.

"We’re saying we’re going to incentivize your bid with the City if you invest in your employees," she said. "Again, it's not a mandatory requirement - it’s just saying we want the lowest and most responsible bidder."

But some Black contractors disagree.

"This ordinance has the potential to greatly affect my business as well as my fellow contractors -  by giving equalization credits that would potentially put companies outside of Detroit ahead of us," said Joe Bowman, owner of Humble Brothers Construction.

The council president believes the best way to move forward is to come to the table and create understanding.

"Let’s come together," Sheffield said. "Let’s get in a room and let’s get it done."

Charity Dean, center, president and CEO, Metro Detroit Black Business Alliance.