Mr. Gilbert, How about a Christmas Present for Detroit?

[DetroiterOnTheWestCoast]

http://www.detroitnews.com/story/bus...ayed/95125404/

Looks like we will likely have to wait even longer to hear the plans. Gilbert must be holding out hope that the bill passes early next year.

Are these the same GOP legislators that don't like to "pick winners and losers" but who outlawed Teslas's business model? I had to groan when the GOP hack made that "winners and losers" claim in the article

[ABetterDetroit]

I guess I have to ask. Are forum members prepared to let developers capture income taxes and sales taxes? Property tax credits seem to be a given. A cash payment not uncommon, those are given quickly and easily. But lets be honest, not paying sales and income taxes out of a given city block is different. A tax free zone for a building until X amount is in the developers pocket? That's a new ballgame. I would love to see Detroit's skyline change but is that the right price to pay for it?

http://www.freep.com/story/money/bus...rock/94628514/

[Gistok]

In the olden days [[latter 20th century) much of the public money was added via UDAG [[Urban Development Action Grants) during the CAY and Archer years. I believe [[if I am not mistaken) that UDAG federal money is no longer available. From what I remember the One Woodward Ave. tower got about $25 million in UDAG money, and such buildings such as Millender Center and 150 W. Jefferson also got big helpings of federal pork.

As much as I don't like using public money, if this goes thru... one of the intended consequences is to make the projects taller. I would like to included the Statler block into the mix... and double that projects height also [[6 to 12 stories). Thus going from stick built to concrete/steel built.

P.S. I also don't agree with including sales and income tax in the mix.

[Atticus]

I am okay with the legislation as long as there is a relatively short "time-cap" on it. Make it exclusive as proposed, so there is competition among projects to use the tool. And then let the developer capture as much tax credit during that short window to offset the unprofitable costs.

For instance, I do believe Gilbert when he says the market isn't ripe enough to fund these large scale projects. And while that market may come in time, it will come at the time when the rental cost becomes too high for only but the wealthy. Thus this development keeps the prices down some in the short term, but provides the funding to bridge the gap.

Basically, if the development is built to maximize the funding to received through the tool, then it will be designed to generate the most tax revenue possible. Thus when the time cap expires the state and local governments may be able to cash in with more tax revenue then would be otherwise generated.

So again, if there is a time cap in place where the developer can cash in on as much as they would like before the cap expires, and if that time cap is relatively short, I am all for it.