Moroun Building 500,000 ft Logistics Facility

[mikeg19]

Well, it seems that we are going to be seeing that logistics center built in the I-94 industrial park by the Moroun family. Between new windows at MCS and this, maybe this family is turning a new leaf. Time will tell if Matty's son will thaw out relations between them and the city and its residents.

http://www.wxyz.com/news/region/detr...obs-in-detroit

[Honky Tonk]

Yep, Good ol' Mike and Matty. Wonder what Dug-in's cut is in all of this?

Mayor Duggan successfully lobbied the state to make it a tax free zone to help attract more jobs and investments to the city.

[Jason]

Logistics is his primary business, so this isn't charity. He already owns a lot of logistics related things in the city. It's mutually beneficial [[in that some jobs and business is being added to the city), and he's getting tax incentives and some PR out of it, but it's going to take a lot to convince me that his family has changed.

[DetroiterOnTheWestCoast]

I hope the statements that they made in that article about hiring local residents is actually followed through on, and that the "promised" jobs really are created. So often it seems, the tax benefits are extended for phantom jobs - as in the Marathon case.

It would be nice it this creates more momentum it that industrial park.

[Scottathew]

I'm willing to change my opinion about Moroun's, but only after I see things change. Same with Ilitch, I'll believe all his non-taxpayer funded promises when I see them.

Gilbert is one of the few that I actually will rely on his promises.

Moroun has a long, long way to go. He can make a ton of profit while also benefiting the city and its people, he just needs to care a little.

[Danny]

Yay duggan!

[detroitsgwenivere]

Per the City of Detroit Website:
"Recruitment for the new positions has already started, with the first information event under way at Second Ebenezer Church while the announcement was taking place. Ex-offenders are encouraged to apply for positions, as well.

Two additional job fairs will be held in the coming weeks to help connect Detroit residents with these new job opportunities. The next event is scheduled for August 25 at Considine Center on Woodward, in partnership with District 5 Councilwoman Mary Sheffield. A third event will be scheduled soon for Council District 1, said Councilman James Tate, who represents the district."

[Jimaz]

...Ex-offenders are encouraged to apply for positions, as well....

That's the job for me.

All my life I went out of my way to offend my school teachers. It was a personal challenge, a quest.

[rex]

Where is the i-94 industrial park anyway?

[Richard]

Mt Elliot on the west, Huber on the North,St. Cryil on the East,Miller on the south.
I-94 and 75,it was cleared by the DEDC years ago,and re-cleared last year,Jane Cooper school was in the middle of it and a warehouse was being constructed in its place.

300 acres,Leer and Pensky were going to build in there also,the zone credits are set to expire in 2016-2017.

It was noted that it was on a bus line which is kinda strange since it has been vacant for over 10 years?

There is another zone outside of the city where warehouses,a tech hub,a transportation hub etc. is being built in anticipation of the new bridge built with blood sand,so it will be interesting to see if the state renews the zone tax break,I wonder if one has more pull then the likes of GE to keep those incentives.

They actually would have gotten better breaks by moving outside of the city to the other zone,I guess the guy kinda has a soft spot for the city.

[Honky Tonk]

Mt Elliot on the west, Huber on the North,St. Cryil on the East,Miller on the south.
I-94 and 75,it was cleared by the DEDC years ago,and re-cleared last year,Jane Cooper school was in the middle of it and a warehouse was being constructed in its place.

300 acres,Leer and Pensky were going to build in there also,the zone credits are set to expire in 2016-2017.

It was noted that it was on a bus line which is kinda strange since it has been vacant for over 10 years?

There is another zone outside of the city where warehouses,a tech hub,a transportation hub etc. is being built in anticipation of the new bridge built with blood sand,so it will be interesting to see if the state renews the zone tax break,I wonder if one has more pull then the likes of GE to keep those incentives.

They actually would have gotten better breaks by moving outside of the city to the other zone,I guess the guy kinda has a soft spot for the city.

I agree, he has a soft spot alright.

[Hermod]

And when they finally build the facility and have people working there, DYes can complain about the architecture.

[Honky Tonk]

So what do we have here? Supposedly, Moroun Enterprises is setting up a 500,000 sq. ft. logistics warehouse, where he stands to make millions, maybe billions. He is going to set this up in a "tax free" zone, which leads me to believe, he will be paying no taxes. According to the article, he will be offering 150 jobs to "Detroiters" @ $10.50 an hour, which comes out to $3,276,000 per year. In the COD, you pay 1.5% if you work here, and another 1.5% if you live here. So, under the best possible case scenario, the COD stands to make about $100,000 a year in tax revenue off of this project. Not too shabby. Now, if only someone can tell me he was given the land to set up his logistics company, well that would really be a win-win for the City.

[belleislerunner]

Is the building nearing completion?

If not, this article, PR and media hype is all smoke and mirrors.

If the average salary is $10.50 an hour - there is no point in advertising or even interviewing candidates "years" in advance. Those employees will already be doing something else. I'm all for snowball effect on shovels in the ground - but let's save the news conference and interviews until the opening date is set and inspections close to being finalized.

I heard Duggan is also having a press conference at 4pm at the Armory to announce interviews of at lease positions for 50% of Detroiters for the new Nike store, Apple store and Cheescake Factory.

[Richard]

So what do we have here? Supposedly, Moroun Enterprises is setting up a 500,000 sq. ft. logistics warehouse, where he stands to make millions, maybe billions. He is going to set this up in a "tax free" zone, which leads me to believe, he will be paying no taxes. According to the article, he will be offering 150 jobs to "Detroiters" @ $10.50 an hour, which comes out to $3,276,000 per year. In the COD, you pay 1.5% if you work here, and another 1.5% if you live here. So, under the best possible case scenario, the COD stands to make about $100,000 a year in tax revenue off of this project. Not too shabby. Now, if only someone can tell me he was given the land to set up his logistics company, well that would really be a win-win for the City.

Considering paying 450 million for the same amount of part time jobs one would hope the land was gifted.

The sad part is IKEA stopped selling warehouse in a box because of liability issues.

So then it would take ....

Engineering company to do the design,they pay city taxes.
Land is cleared but the foundations have to be dug etc. that company pays city taxes.
Permits and inspections equals city revenue.
Concrete company and their workers pay city taxes.
Construction workers to build the building pay taxes.
The materials have to come from someone that is paying taxes.
Electricians pay city taxes.
Plumbers pay city taxes.
Landscapers pay city taxes.
HAVC company pays city taxes.

All of those companies employ workers that pay city taxes so it is a few more days of employment anyways,and maybe they will get hungry and visit a local eatery.

That is just based on the initial construction.

It would probably take days of mathematical calculations which are way beyond my scope anyways to really get down to if this is a win or loss for the city.

But given recent discussions at the very least it becomes a company that can employ those that do not have a masters degree and maybe provide them with something of a job that maybe better then none.If one person applies and receives a job there that maybe would out of desperation choose another not so nice nice way to make a living,then it would be a win for the city.

Whether he makes millions or billions is really pointless,he is taking the risk and is entitled to his return just as anybody else would be.

So the question is what warehouse is already under construction out there?

[Honky Tonk]

Considering paying 450 million for the same amount of part time jobs one would hope the land was gifted.

The sad part is IKEA stopped selling warehouse in a box because of liability issues.

So then it would take ....

Engineering company to do the design,they pay city taxes.
Land is cleared but the foundations have to be dug etc. that company pays city taxes.
Permits and inspections equals city revenue.
Concrete company and their workers pay city taxes.
Construction workers to build the building pay taxes.
The materials have to come from someone that is paying taxes.
Electricians pay city taxes.
Plumbers pay city taxes.
Landscapers pay city taxes.
HAVC company pays city taxes.

All of those companies employ workers that pay city taxes so it is a few more days of employment anyways,and maybe they will get hungry and visit a local eatery.

That is just based on the initial construction.

It would probably take days of mathematical calculations which are way beyond my scope anyways to really get down to if this is a win or loss for the city.

But given recent discussions at the very least it becomes a company that can employ those that do not have a masters degree and maybe provide them with something of a job that maybe better then none.If one person applies and receives a job there that maybe would out of desperation choose another not so nice nice way to make a living,then it would be a win for the city.

Whether he makes millions or billions is really pointless,he is taking the risk and is entitled to his return just as anybody else would be.

So the question is what warehouse is already under construction out there?

I'm not sure IF the warehouse is under construction, or where this I-94 Industrial Park really is. [[Yes, I did read you other post) You are right, all those contractors would have to buy City construction licenses, and the workers would have to pay, @ least, 1.5% City taxes, while under construction. And when the initial hoopla is over, then what? back to $100,000 K a year, plus water usage. Whether he makes millions or billions IS the point. Why are guys like Moroun, Penske, and Illitch allowed to skate, or worse yet, getting subsidized, with taxpayer money? Why am I continually paying? It would be a different story if the final outcome would really be beneficial for the City. So far it doesn't look that way to me.

[detroitsgwenivere]

I'm not sure IF the warehouse is under construction, or where this I-94 Industrial Park really is.

A very old neighborhood used to be here. You can still see the block curbs and the brick inside the open manholes if you go to look before they are removed.

Not to be a downer, but this is also where they found the bodies of that young couple who went missing back in 2012. They found the bodies of those 2 Westland boys a few blocks east of there too.

Ive done a bunch of work in this area, have been watching it change for at least 20 years.

http://detroit1701.org/I-94%20Industrial%20Park.html

http://www.crainsdetroit.com/article...e-time-is-past

[Richard]

Your job is to be a good minion and collect your paycheck in order to hand over the funds to someone else without questioning it,in theory you could be considered a collection agency and form a LLC to enjoy the tax breaks and in return someday you can then collect the same incentives to progress even further so you can have even more funds to distribute up the chain.

Cities are in it for the long haul,one new business today then tomorrow another one and soon it becomes viable.

Here and now maybe not a good investment but long term and in the big picture it should pay off,it is a term tax break designed to encourage new investment and or jobs,it and the whole area as a zone has an expiration date,maybe with a trucking company in there it will encourage others to invest there because it is nice to have your shipping company close by.

The city needs jobs and education,right now,and this is in a small way maybe providing it without the expenditure with per-say cash out of pocket from the city the tax breaks are from the state as a whole and based on future projections.

It was empty land costing the city real cash out of pocket,now you have a building that produces employee tax revenue from the start,cash in.

So the city and state made a 3 million dollar investment with no cash out of pocket and the return is the trickle down effect and generates immediate cash,and eliminates the cash output and liability of the vacant land.

It is no different anywhere else,we do not like it,but unfortunately that is the way it is.

It could work on a personal level when it comes to the neighborhoods,ask for a designated property tax relief for X amount of years to encourage neighborhood investment,it seems to work elsewhere.

Something different on thought patterns,I have always pretty much been self employed,I had a construction company and these things ebb and flow,when I was slow I would be getting no phone calls so I would accept a contract that I would actually lose money on,as soon as I would start the job the phone would start ringing off the hook with new business.

For some reason people gravitate towards movement,if you have no movement you are stalled and sinking fast.

[Honky Tonk]

A very old neighborhood used to be here. You can still see the block curbs and the brick inside the open manholes if you go to look before they are removed.

Not to be a downer, but this is also where they found the bodies of that young couple who went missing back in 2012. They found the bodies of those 2 Westland boys a few blocks east of there too.

Ive done a bunch of work in this area, have been watching it change for at least 20 years.

http://detroit1701.org/I-94%20Industrial%20Park.html

http://www.crainsdetroit.com/article...e-time-is-past

Thanx for the visual. You're quite the illustrator, have ever thought of a career change? I remember both of those episodes. Greenies in the wrong place doing the wrong thing. [[NOT that their untimely end justified their actions)

[RO_Resident]

This area is part of the city's Mt Elliott Employment District.

The report is linked on this page:
http://www.degc.org/degc-documents/m...e-and-industry

They are trying to leverage the logistics resources in the area.

[detroitsgwenivere]

Thanx for the visual. You're quite the illustrator, have ever thought of a career change?

That pen is harder to control than it looks