Quote Originally Posted by mwilbert View Post
This seems wrong, and also not the point of the change. But the effect on residential developers should be positive. A typical residential lot in Detroit isn't worth very much. Even if you tripled the taxes on it, and a developer had to pay the taxes on it for a couple of years, the cost would be small relative to the cost of building a new house on one. It's just not going to have much effect. On the other hand, lowering the taxes on the house that ends up getting built will have a positive effect on the value of that house, and hence on the profit the builder could make by building it.

In any case. the main effect will be where land is expensive, and there the change should be to lower land prices somewhat, make more land available to develop, and to make that development more profitable. And that, along with shifting some of the tax burden from neighborhood residents to downtown/midtown, is the point.

It’s the point but also the problem and what got the city to where it is today,shifting the tax burden to those who can afford it more,the ratio changes of those who can afford it more which increases the burden to the point to where they bail.

Look at the 100s of thousands fleeing high tax states,instead of looking for ways to lower that burden they are looking at ways to shift it.

Not to go into politics but progressive policies are what hurt the city from the start and now they are doubling down on them.

First the $50m cap now this,it follows the mantra of the rich can afford to offset the transfer of obligations.

In the video a $500 lot in Detroit was compared to a $150,000 lot in a desirable location in the burbs.

Can I buy a lot for $500 in EEV or Mid Town or even downtown,sign me up ,real estate is location location location.

If it was the answer every city in the country would have implemented it already even more so the ones that are bleeding population,there is a reason they have not.