Who Owns Downtown? Taking government out of downtown property game

A very interesting article by Kirk Pinho of Crain's Detroit Business answers this question. Not surprisingly it is the Dan Gilbert story but the details and this graphic are revealing. The main point is how little of a role governmental units now play. Wish it would have detailed Ilitchville percentages.

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It wasn't long ago that governments made big splashes in greater downtown real estate, buying landmark properties and turning them into executive offices.
These days, however, you'd be hard-pressed to find a real estate broker who reasonably expects a governmental unit to be a serious contender for greater downtown property in Detroit.

Case in point: Since the beginning of 2013, government units have only purchased two properties downtown. Those buildings, in Capitol Park and Paradise Valley, total just shy of 8,000 square feet.

Compare that with 2000 to 2010, when governmental units purchased 2.32 million square feet of space... Read Full Crain's Article >>

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http://www.crainsdetroit.com/apps/pb...v=201411210943

[QUOTE=Lowell;493371]A very interesting article by Kirk Pinho of Crain's Detroit Business answers this question. Not surprisingly it is the Dan Gilbert story but the details and this graphic are revealing. The main point is how little of a role governmental units now play. Wish it would have detailed Ilitchville percentages.
[QUOTE]

Looking through the glass darkly...



Rentier capitalism is a term currently used to describe the belief in economic practices of monopolization of access to any [[physical, financial, intellectual, etc.) kind of property, and gaining significant amounts of profit without contribution to society. [[Except saving downtown Detroit?)

Probably because presently capitalism is perceived in a positive light,[8] current usage of the term rentier capitalism is often derogatory and opposed to "normal" capitalism such as free enterprise and private enterprise. It is used to describe deviation from the beneficial practices of capitalists, and only when substantial harm to society becomes evident.

The above is ripped from wikipedia.

I know such a curmudgeon I be....

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Originally Posted by Dan Wesson

...Rentier capitalism...ripped from wikipedia.

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Fortunately, Downtown Detroit has no hard boundaries -- no mountain ranges or rivers on all sides. So there really can't be a monopoly. If citizens and business don't want to be part of Dan's game, they are free to build their headquarters at Michigan and Trumbull if they wish -- with only the power of zoning to restrict them.

This is good news.

I'm not sure I'm in favor of one guy owning such a high percentage,.. but it certainly i good news that the gov't percentage is dropping.

Governments in general should own very little. All gov't owned buildings are an expense. Government is never gainfully employed. Certain buildings are needed to to carry out the basic tasks of operating a city,.. but everything else you want to be owned privately,.. for profit,.. and paying taxes.

Look at the disaster and expense that occurs when things like Cobo Hall are owned and operated by a city government.

I do believe that Cobo is still city owned, is it not?

Also... the stadia are in public hands, are they not? We know that neither Ilitch nor Ford want to pay property taxes on Comerica Park, Ford Field, nor for that matter, the new Arena.

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Originally Posted by Gistok

I do believe that Cobo is still city owned, is it not?

Also... the stadia are in public hands, are they not? We know that neither Ilitch nor Ford want to pay property taxes on Comerica Park, Ford Field, nor for that matter, the new Arena.

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Cobo is still technically city owned,.. but not city operated. That's the key in that deal. When it was city operated,.. it was a toilet,.. business was poor,.. and it lost millions every year. Now it has been re-done,.. is hosting many more events,. and actually makes money.

Comerica and Ford Field are actually owned by The Stadium Authority,.. who leases them to Wayne County,.. who in-turn sun-lets them to the Downtown Development Authority,.. who in-turn has agreements with the Lions and tigers for the use of the stadiums and concessions.

So being as the illiches, Fords etc don't actually "own" the stadiums,. they don't have to pay property taxes on them. I imagine they pay something on the profits they make.