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    Who are the NERD fund donors Mr Snyder?

    Raise the curtain.

    Detroit To Give GM Tax Break To Stay In RenCen, Now Laments Decision Since Taxes Are The Point!


    By Theblogprof, Section News
    Posted on Tue Jun 09, 2009 at 08:24:01 PM EST
    Tags: Detroit, GM, taxes (all tags)

    The situation would be funny if it didn't happen in the midst of economic tragedy. Detroit wants desperately to keep GM in the Renaissance Center, to the point that it will give GM a tax break. But now the realization sets in that the only reason to keep GM in the RenCen is precisely to collect those very taxes. Oops! From the Detroit Free Press: Hidden costs in deal to keep GM in Detroit.
    In Detroit, where good deeds rarely go unpunished, Mayor Dave Bing is still trying to cobble together a deal to keep General Motors Corp. in its downtown Renaissance Center headquarters.

    Problem is, how to do it without gutting the very agencies that run the city's business attraction and retention efforts, the Detroit Economic Growth Corp. and Downtown Development Authority?

    Here's the GM-RenCen dilemma.

    A week ago Friday, amid growing hysteria over whether GM might vacate the RenCen and leave Detroit as part of its crash slim-down plan to enter and exit Chapter 11 bankruptcy rapidly, Wayne County Executive Bob Ficano made Bing a tantalizing proposal.

    Wayne County could offer its one remaining renaissance zone designation to the RenCen, thus exempting it from a host of property, income and utility taxes, saving GM $10 million or more.

    Bing and GM President Fritz Henderson liked the idea. Even President Barack Obama called Bing to voice support for keeping GM downtown.<

    Hallelujah, GM would stay put!

    But alas, this is Detroit, where nothing comes easy.

    Soon some unintended consequences of the ren-zone plan reared their ugly heads. Taxes that would be waived to help GM are the very taxes that bankroll the DEGC and the DDA, which in turn help finance city projects large and small, from the Comerica Park and Ford Field stadiums to Campus Martius office buildings and residential lofts.

    Art Papapanos, vice president of the DEGC and officer of the DDA, said Friday that staffers were still calculating the exact impact, but he estimated that one-third or more of his agencies' annual budgets come from RenCen taxes. "That's a big chunk," he said.

    I guess the programs won't be sucking off GMs teet anymore, eh? By the way, how have the Detroit Economic Growth Corp. and Downtown Development Authority been doing up to this point? Yeah - that's what I thought. You can plot the trajectory of Detroit and it's simply not good. Maybe these high taxes that fund bureaucracy after bureaucracy that appear to have no value added simply isn't working? Maybe??? And just goes to show that high taxes do not a good downtown make. In fact, it is a disincentive for business as clearly illustrated here with GM. Q.E.D.

    < State Losing Money Having Prisoners Manufacture License Plates | Ballot Initiatives Anyone??? >


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    This What They Get... (none / 0) (#1)
    by steve on Tue Jun 09, 2009 at 10:46:46 PM EST
    By trying to pick winners and losers they were a little too quick on the draw and shot themselves in the foot.

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