A Tale of Two Cities - Detroit version

http://www.nytimes.com/2013/03/05/us...t.html?hp&_r=0

This link is to a story on the front page of this mornings paper about the increasingly prosperous Downtown and Midtown areas of the city of Detroit. While many focus upon the EFM issue, there are numerous positive developments in Detroit and employment is likely to increase at DMC and Henry Ford. Vehicle production is also rising at the Hamtramck and East Jefferson plants but the number of jobs is growing slowly due to great increases in labor productivity.
Fortunately, there are about two dozen stable neighborhoods in Detroit or neighborhoods that, with modest investments, might attract middle and upper income folks who work in Detroit. I realize the need to downsize neighborhoods but I hope that Bing Administration or EFM will also focus upon encouraging strong middle and upper income neighborhoods.

Of course, the NY Times forgets to mention that this "private sector boom" is actually a taxpayer-subsidized house of cards.

Nothing happens downtown/midtown without taxpayer involvement. Even restaurants and stores are usually taxpayer subsidized.

Quote:

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Originally Posted by Bham1982

Of course, the NY Times forgets to mention that this "private sector boom" is actually a taxpayer-subsidized house of cards.

Nothing happens downtown/midtown without taxpayer involvement. Even restaurants and stores are usually taxpayer subsidized.

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Is that abnormal? I know it wasn't back in Chicago.

Yeah, same in NY with the new WTC [[http://www.nytimes.com/2011/08/20/op...hant.html?_r=0). And the same with the new Goldman Sachs HQ and the new Bank of America Tower [[http://www.nytimes.com/2013/03/05/bu...pagewanted=all).

It's hard to find any substantial project that isn't somehow subsidized in any major city.

Seems like a red herring Bham.

It is difficult to think of major projects in the area that did not benefit from special tax reductions or other direct or indirect financial support from local and state governments. I believe Fiat/Chrysler got reductions in taxes to modernize and expand the Jefferson East plant. GM got a great deal of help in erecting their Hamtramck plant but I am not sure about tax breaks for the investments they made to assemble the Impala and Malibu lines there. Did Marathon get any special tax breaks for their 2.1 billion investment in southwest Detroit. Perhaps they were keeping quiet about that investment since it involves Alberta oil sands. Perhaps CN got few special breaks when they invested in building as new tunnel from Sarnia to Port Huron. I don't
recall Michigan chipping in for that huge project,