Bing's turnaround plan

[Novine]

Anyone notice what was missing from the report to Bing? Any consideration of reconsidering the massive tax breaks and subsidies provided to wealthy downtown property owners [[Ilitch for example). We keep hearing about how "everyone" has to share the pain but apparently "everyone" doesn't actually include everyone, just those without the money and power to leverage the pain onto everyone else.

[Stosh]

Anyone notice what was missing from the report to Bing? Any consideration of reconsidering the massive tax breaks and subsidies provided to wealthy downtown property owners [[Ilitch for example). We keep hearing about how "everyone" has to share the pain but apparently "everyone" doesn't actually include everyone, just those without the money and power to leverage the pain onto everyone else.

That's a good point. Of course, that's never on the table anywhere. Not seeing how the tax breaks are structured [[X number of years for Y development), it seems to me that would be going back on promises made to these corporations and individuals.

Going totally back on this would probably have a chilling effect on attraction of new development and businesses. But a minor adjustment in the tax break, not a total abatement, could happen with the consent of the owners. I suppose all they would have to do is ask and see what happens. Maybe they already have, and were told to take a hike?

[Novine]

Companies make all kinds of promises when they get those breaks and few are ever held to account for not fulfilling the terms. I bet Bing's team never asked. Why would they? Look who they represent.

[Stosh]

Companies make all kinds of promises when they get those breaks and few are ever held to account for not fulfilling the terms. I bet Bing's team never asked. Why would they? Look who they represent.

If they back out of promises, I think then that would be a trigger for some sort of reduction. But how many have actually not done as promised intentionally? How much of this is predicated on outside factors out of their control?

[Danny]

GREAT IDEAL BING!

Your turn around plan is save this city millions of dollars. A first start to rise this city out from the ashes.

[Brainiac]

Anyone notice what was missing from the report to Bing? Any consideration of reconsidering the massive tax breaks and subsidies provided to wealthy downtown property owners [[Ilitch for example). We keep hearing about how "everyone" has to share the pain but apparently "everyone" doesn't actually include everyone, just those without the money and power to leverage the pain onto everyone else.

You pick on one of the few that are devoted to the city image. I don't know the details, but I would say any tax break the city could give is far less than the value received. A big city needs magnets to draw others to invest.

It shows that tax breaks do help. It is too bad the city can't afford across the board tax relief.

[Jimaz]

Which brings us to yesterday's Detnews article: Detroit jobs lost despite city tax breaks.

The City Council soon could crack down on tax breaks after learning Detroit cut taxes on $2.7 billion in investments in the past decade to businesses that not only failed to follow through on jobs promises, but laid off at least 7,500 workers....

The Bing Group -- like other companies hit by the economy -- didn't fulfill job promises. In its case, it fell short at four of six projects that received tax breaks last year. Assessment records indicate they saved the company $180,000 in 2008.

Many were granted years ago, before the cataclysmic decline of the auto industry. But they bring renewed debate to an old controversy about the economic-development tool: Should poor cities like Detroit continue to dole out tax breaks to businesses that don't deliver? Can they afford not to?