At BridgeDetroit, journalist Tom Perkins reports…
Supporters of the [USD$60,000,000.00] tax break insisted at the time [2022] that the Hudson’s site would create 2,000 new jobs and net $71 million in new city tax revenue from the additional workers. […] But Detroit will not see a net gain in new jobs or local tax revenue for the estimated 850 GM RenCen employees – it simply moves existing jobs from one building to another [em. mine – r2 ], which will not generate new tax revenue for the city.
This reduces Bedrock’s projected new job creation total to 1,150 and its new income tax impact by 43%, which means the Hudson’s Detroit site could now, at best, generate about $52 million in new tax revenue. Three economists who reviewed the analysis called it fair but “conservative,” and said the project will likely create very little, if any, net positive tax revenue.
“It was sold as a transformational project, but we were never told the transformation would include moving jobs a few blocks down the street,” said Michael LaFaive, director of the Mackinac Center For Policy, which analyzes and opposes corporate tax incentives.
Follow the lady! GM is merely shuffling jobs from Point A (RenCen) to Point B (new Hudson’s Building). There’s always 52 cards in the deck. Just like the nearby casinos, “The House” always wins. Jackpot: $8 million!
Commercial real estate is in bad shape across the board, I can’t imagine how else they’ll fill it though. Maybe by employing the rest of Rocket from Campus Martius? That’s more shuffling deck chairs, not bringing people into the city.
When I was moving a decade ago my wife and I considered Detroit. The schools meant we’d have to pay for private and after factoring that and insurance in, it was the same as moving to Ann Arbor.
Maybe invest in schools and infrastructure instead of giving tax breaks to billionaires?
A huge problem is Detroit traffic sucks, especially rush hour. Adding more jobs downtown doesn’t help that.
There’s really no incentive to actually live in Detroit.
Tax incentives granted to rich corporations steals money from city services and benefits only the corps.
Man, all the major building designed and built in the 70s around here have been disasters.
Silverdome, Joe Louis Arena, and the RenCen. None of them were well thought out.
