Discuss Detroit » Archives - July 2007 » Patterson proposes new Cobo plan « Previous Next »
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Eric
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Username: Eric

Post Number: 975
Registered: 11-2004
Posted on Sunday, November 04, 2007 - 1:02 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

This is probably best and most realistic plan he come up with. Hopefully, they can meet in the middle between the two plans and we can finally get this needed expansion.

New Cobo plan floated

Patterson: Smokers would foot $377M tab
Robert Snell / The Detroit News
Oakland County Executive L. Brooks Patterson is proposing a scaled-back Cobo Center expansion that costs almost $600 million less than a controversial plan pitched last year by Wayne County Executive Robert Ficano. And smokers would pay for it.

The $377 million proposal is a major shift from a stalled $968 million plan hatched by Ficano in December. It would cut Ficano's proposed expansion in half.

It is the latest in a string of plans to better accommodate the North American International Auto Show and preserve an economic juggernaut that draws about 700,000 visitors and generates an estimated $590 million for the region each year.

"You could flood a small town with all the water we squeezed out of (Ficano's) proposal," Patterson said Friday.

Patterson's plan, which provides specifics of a broader suggestion he made in February, is expected to be unveiled later this month in a meeting with Wayne County officials.

Ficano's staff has not seen the latest proposal.

"We will not respond to questions or corroborate numbers on a plan we have not seen," Ficano spokeswoman Sharon Banks said. "We want to sit down and review the plan and continue the dialogue."

Wayne County would lose $16 million a year under Patterson's plan to divert money from a statewide 4-cents-per-pack cigarette tax that pays off county debt. The debt will be paid off by 2010, after which Patterson proposes to spend the money to expand Cobo.

The latest pitch drastically reduces the price tag.

The biggest savings comes from dropping Ficano's plan to give Michigan counties a lump sum $233 million payment if officials agree to extend hotel and liquor taxes and relinquish future payments.

Patterson's plan would extend hotel and liquor taxes at reduced rates and the excess payments would go to Cobo. He also wants to borrow an idea from Ficano to make Cobo a sales tax free zone.

But it would be at least one year before the liquor tax would be available. That's because the state Legislature this year said it would seize that tax money, $35 million, for one year to help balance the budget.

His plan also saves about $200 million by creating a smaller endowment fund to subsidize operations and dropping Ficano's plan to eliminate the center's debt.

Patterson's plan also saves money by excluding a $35 million, climate-controlled enclosed walkway that would connect Cobo and the Renaissance Center. It also eliminates the $20 million cost of buying the center from Detroit.

A regional authority comprised of members from at least Detroit and Wayne, Oakland and Macomb counties would manage Cobo and be responsible for construction and maintenance, Deputy Oakland County Executive Robert Daddowsaid.

Patterson's proposal calls for adding 120,000 square feet of exhibition space -- 55 percent smaller than Ficano's plan -- but it would satisfy concerns from the Detroit Auto Dealers Association, organizers of the January event.

The association wants to better accommodate automakers, cars and crowds. And it wants to fend off organizers of the nation's other big shows in Chicago, New York and Los Angeles, which could unseat Detroit as the premier event.

The association is working on its own 30,000-square-foot Cobo expansion proposal, which would cost $8 million to $10 million. The plan is in the early stages and funding has not been secured but association officials would support any plan that calls for more Cobo space.

"Can we fill 120,000 (square feet)?" said Joe Serra, the show's junior co-chair. "Absolutely. All I can tell you is there is a huge need. We're grateful for any consideration."

Cobo Center has 2.4 million square feet overall, with 700,000 square feet of exhibit space that includes 100,000 square feet on the lower level.

Patterson's plan would require legislative approval to divert $16 million a year in cigarette-tax revenue.

Wayne County gets that money because legislators hiked the statewide cigarette tax by 4 cents in the late 1980s, Daddow said. The tax generated revenue helped the county issue bonds and pay off an approximately $200-million deficit, he said.

The first $16 million in tax revenue collected by the state goes to Wayne County, Daddow said.

As the county has paid off interest and principal since the late 1980s, the amount of money needed to pay off the bonds each year has fallen to about $7 million, Daddow said.

That leaves $9 million going to Wayne County for unknown expenses, Daddow said.

"We don't know where it goes," he said.

But the $16 million could be spent on Cobo, Patterson said.

"Once the bonds are paid off, as far as I'm concerned, Wayne County has lost all legal claims to that money," he
http://detnews.com/apps/pbcs.d ll/article?AID=/20071103/METRO /711030340
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Detroitrise
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Username: Detroitrise

Post Number: 428
Registered: 09-2007
Posted on Sunday, November 04, 2007 - 1:18 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

This is a much better thanthe Chesterfield Convention Center.
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Detroitnerd
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Username: Detroitnerd

Post Number: 1592
Registered: 07-2004
Posted on Sunday, November 04, 2007 - 1:39 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

It'll just be funded by Chesterfield smokers.
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6nois
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Username: 6nois

Post Number: 563
Registered: 11-2006
Posted on Sunday, November 04, 2007 - 2:09 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

This is stupid. Fiancos plan uses taxes for visitors to the area to pay for Cobo, which works, because they are the ones who use it. But LBP wants to tax only the people of Wayne county to pay for it by robbing a fund that is currently used to pay down the counties debt. I don't think Wayne County should support this plan.
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Patrick
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Username: Patrick

Post Number: 5107
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Posted on Sunday, November 04, 2007 - 2:29 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Hell, if they are doing this expansion just for the NAIS, then let Chicago have the damned thing.
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Dinnc
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Username: Dinnc

Post Number: 20
Registered: 08-2007
Posted on Sunday, November 04, 2007 - 2:38 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Good thing they want to scrap the stupid sky walk plan that would go right over hart plaza!
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Detroitrise
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Username: Detroitrise

Post Number: 429
Registered: 09-2007
Posted on Sunday, November 04, 2007 - 2:46 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

"Hell, if they are doing this expansion just for the NAIS, then let Chicago have the damned thing."

That was like letting Cleveland have the R&R Hall of Fame.
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Scooter2k7
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Username: Scooter2k7

Post Number: 7
Registered: 10-2007
Posted on Sunday, November 04, 2007 - 3:12 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

By the time LBP gets down fighting with Wayne County it will be too late. Chicago is going get to the NAIAS because we are dicking around here. Good thing we still have the boat show!
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Bob
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Username: Bob

Post Number: 1596
Registered: 11-2003
Posted on Sunday, November 04, 2007 - 3:23 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

With added hotel rooms, Detroit is starting to attract more conventions that never have been here before. The fact LBP is actually putting up a plan is progress.
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Detroitrise
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Username: Detroitrise

Post Number: 431
Registered: 09-2007
Posted on Sunday, November 04, 2007 - 3:27 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

"With added hotel rooms, Detroit is starting to attract more conventions that never have been here before. The fact LBP is actually putting up a plan is progress."

I was actually surprised when I saw his name on the topic.
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Viziondetroit
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Username: Viziondetroit

Post Number: 1279
Registered: 11-2003
Posted on Sunday, November 04, 2007 - 3:57 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Which conventions are coming? Does anyone know or is this lip service from the visitors bureau?
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Detroitnerd
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Username: Detroitnerd

Post Number: 1595
Registered: 07-2004
Posted on Sunday, November 04, 2007 - 4:03 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

How bad is the convention business in Detroit? They were trying to attract conventions likely slated for New Orleans after Katrina and Rita ...
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Bob
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Username: Bob

Post Number: 1597
Registered: 11-2003
Posted on Sunday, November 04, 2007 - 4:09 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

There was recently a Regional Science Teachers convention. The national NAACP convention was here. I know last March the American String Teachers Assoc. had their national convention at the Rec Cen Marriott. We are starting to get more conventions.


http://www.cobocenter.com/
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Jt1
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Username: Jt1

Post Number: 10675
Registered: 10-2003
Posted on Sunday, November 04, 2007 - 6:41 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

It's quit telling that LBP speaks with the press before he speaks with Ficano.

If people miss the flaw in this complete disregard for regional communication there is something very, very wrong with this region.

For someone that claims he is for cooperation he loves to run to the media before speaking with colleagues.
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Charlottepaul
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Username: Charlottepaul

Post Number: 1952
Registered: 10-2006
Posted on Sunday, November 04, 2007 - 6:50 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

"Patterson: Smokers would foot $377M tab"

Interesting.
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Perfectgentleman
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Username: Perfectgentleman

Post Number: 4807
Registered: 03-2006
Posted on Sunday, November 04, 2007 - 6:56 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Why invest all of this money for 1 damn show anyway? It isn't as if Detroit is going to be getting new convention business as a result of the Cobo expansion. We wouldn't even have the auto show if not for Detroit being the former auto capital of the world.
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Detroitrise
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Username: Detroitrise

Post Number: 434
Registered: 09-2007
Posted on Sunday, November 04, 2007 - 7:24 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

"We wouldn't even have the auto show if not for Detroit being the former auto capital of the world."

Since when did we become the FORMER Auto Capital of the World (according to the books)?
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Charlottepaul
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Username: Charlottepaul

Post Number: 1954
Registered: 10-2006
Posted on Sunday, November 04, 2007 - 7:30 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

"Since when did we become the FORMER Auto Capital of the World (according to the books)?"

Prob. happened when the "Big 3" could no longer call themselves that. To pinpoint that date, it would either be when Daimler bought out Chrysler (MAY 1998), or when Toyota's sales surpassed GM's (APR 2007).
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Detroitrise
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Username: Detroitrise

Post Number: 435
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Posted on Sunday, November 04, 2007 - 7:36 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Your source please? I'm looking for actual book/online reference, not your assumptions.

(Message edited by DetroitRise on November 04, 2007)
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Wazootyman
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Username: Wazootyman

Post Number: 272
Registered: 02-2006
Posted on Sunday, November 04, 2007 - 7:38 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

GM is still number one (as of last month) and anybody who's anybody has a presence here. I'd say we're still in the running, if not the capital.
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Perfectgentleman
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Username: Perfectgentleman

Post Number: 4812
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Posted on Sunday, November 04, 2007 - 7:40 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Of course GM is headquartered in Detroit. Chrysler is in the area, Ford in the area. But how many actual vehicles are made in Michigan now? A fraction of bygone days.
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Jt1
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Username: Jt1

Post Number: 10682
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Posted on Sunday, November 04, 2007 - 7:48 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

quote:

or when Toyota's sales surpassed GM's (APR 2007).



GM overtook Toyota of course it got much less press. That however does not make Gm any more profitable.
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Detroitrise
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Username: Detroitrise

Post Number: 436
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Posted on Sunday, November 04, 2007 - 7:49 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Columbia is the Coffee Bean Capital, although only a reasonable fraction is made there.

Paris is the Frangrance Capital, although only a reasonable fraction is made there.
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Novine
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Username: Novine

Post Number: 227
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Posted on Sunday, November 04, 2007 - 8:11 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

" But how many actual vehicles are made in Michigan now? A fraction of bygone days."

No doubt true but what area or state makes more?
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Bob
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Username: Bob

Post Number: 1598
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Posted on Sunday, November 04, 2007 - 8:16 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

And if you look at the graph the Free Press ran a few weeks ago. The closest state to us in terms of auto employment is Ohio, and they are behind us by quite a lot. We are still the auto capital of the world, which is why the Chinese companies want to be part of our auto show.
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3rdworldcity
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Username: 3rdworldcity

Post Number: 973
Registered: 01-2005
Posted on Sunday, November 04, 2007 - 10:54 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

6nois: You object to LBP's plan because it taxes WC residents, not visitors as you'd prefer. What the hell is the difference?

That crook McNamara pulled the "tax the visitors" deal when he financed Ford Field for WCF.

The fact is, if a tax on services visitors use is feasible, why not implement one and REDUCE WC taxpayers' rate by an equal amount? Semantics by politicians and Ficano must think we're as stupid as McNamara did. (They're both right; taxpayer are pretty dumb or they wouldn't stand for these schemes.) Either way, we taxpayers pay, directly or indirectly. I say tax the smokers as the least offensive alternative if public money has to be involved. Better yet, privatize it and if that won't work, don't expand the place.
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Livernoisyard
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Username: Livernoisyard

Post Number: 4540
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Posted on Sunday, November 04, 2007 - 11:00 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Canada produces more motor vehicles than does Michigan, and Europe produces more motor vehicles than the entire US.
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Detroitrise
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Username: Detroitrise

Post Number: 437
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Posted on Sunday, November 04, 2007 - 11:36 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

The post on this thread are just too interesting. And GranmontRules tried to call me the doubtin' Thomas.
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Renfirst
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Username: Renfirst

Post Number: 90
Registered: 12-2006
Posted on Monday, November 05, 2007 - 1:46 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

The initial plans proposed by Ficano were ridiculous. They wanted to spend more than Comerica and Ford Field combined.

I actually thought LBP's proposal in February was decent. Incorporating a mini-casino was the perfect solution in my opinion to off-setting the enormous maintenance costs.

The mini-casino was a great idea. I don't know why it isn't being brought up this time. How appealing would the facility be with a mini-casino.
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Novine
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Username: Novine

Post Number: 228
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Posted on Monday, November 05, 2007 - 9:23 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

"Canada produces more motor vehicles than does Michigan, and Europe produces more motor vehicles than the entire US."

How's that an appropriate comparison? Canada has provinces as the US has states. Making a comparison province to state is fair, country to state is not.
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Spitty
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Username: Spitty

Post Number: 634
Registered: 07-2004
Posted on Monday, November 05, 2007 - 10:02 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

"Canada produces more motor vehicles than does Michigan, and Europe produces more motor vehicles than the entire US"

And let me guess... Michigan makes more cars than Detroit. Apples and watermelons. Michigan vs Canada? Europe vs US? What about US vs Canada, North America vs Europe, or Michigan vs Kentucky?

What a crappy argument...
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Fnemecek
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Username: Fnemecek

Post Number: 2592
Registered: 12-2004
Posted on Monday, November 05, 2007 - 10:30 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

quote:

Why invest all of this money for 1 damn show anyway?


For the same reason you invest in anything, to make a profit.
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Fnemecek
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Username: Fnemecek

Post Number: 2593
Registered: 12-2004
Posted on Monday, November 05, 2007 - 10:37 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

quote:

Better yet, privatize it and if that won't work, don't expand the place.


Privitazing it would work, if there were one entity that owned all of the hotels, restaurants, car rental agencies and so on. Just like privitizing roads would work if there was only one company in the world that made all of the cars.

The only way to spread the costs across all of the people who are benefiting from it is through some kind of targeted taxation.
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Perfectgentleman
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Username: Perfectgentleman

Post Number: 4829
Registered: 03-2006
Posted on Monday, November 05, 2007 - 10:40 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

quote:

For the same reason you invest in anything, to make a profit.



Of course, but does the city make enough money on that one show to justify the expense? Given the challenges the city faces, is that the best use of the money at this point?
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Fnemecek
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Username: Fnemecek

Post Number: 2594
Registered: 12-2004
Posted on Monday, November 05, 2007 - 10:51 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

The expansion would cost $377 million under the Patterson plan. NAIS pumps $800 million into the local economy each year.

You tell me. Is a one time investment of $377 million enough to just getting $800 million every year?
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Johnlodge
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Username: Johnlodge

Post Number: 3369
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Posted on Monday, November 05, 2007 - 10:58 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Detroit does need a decent convention center. With a people mover stop, riverfront access near the soon to be built Port Authority terminal, and a reviving downtown, it will be a necessity. Patterson wouldn't be brainstorming it if he didn't think so, and he is not one to tax and subsidize willy nilly.
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Perfectgentleman
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Username: Perfectgentleman

Post Number: 4830
Registered: 03-2006
Posted on Monday, November 05, 2007 - 11:01 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Detroit also needs to reduce the crime rate. You could put alot of cops on the street for 1/2 billion dollars. Do that, and you might get more private investment. Until the city improves it's image, there won't be many new, large conventions coming to town.
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Iheartthed
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Username: Iheartthed

Post Number: 2069
Registered: 04-2006
Posted on Monday, November 05, 2007 - 11:02 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

>Columbia is the Coffee Bean Capital, although only a reasonable fraction is made there.

We are Columbia. They are Colombia. I think you've made that mistake on here a couple of times before.
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Novine
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Username: Novine

Post Number: 229
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Posted on Monday, November 05, 2007 - 11:05 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

The city can always use more police. But I didn't have the impression that this money was available for that purpose. It's not like you're giving up one to get the other.
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Upinottawa
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Username: Upinottawa

Post Number: 1008
Registered: 09-2005
Posted on Monday, November 05, 2007 - 12:22 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

For the record, Ontario assembles more cars per year than does Michigan:

http://www.canada.com/topics/n ews/national/story.html?id=1fd 54be8-a4ed-40c9-9fbf-1e0dc1a0f f51&k=11605

That being said, Ontario does not necessarily have more automotive related jobs than Michigan (more than likely Michigan has considerably more such jobs).
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Detroitrise
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Username: Detroitrise

Post Number: 439
Registered: 09-2007
Posted on Monday, November 05, 2007 - 9:45 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Trainman, That's possibly your first of 558 posts that mention MORE than Smart/DDOT/Livonia/other transportation organizations,
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Perfectgentleman
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Username: Perfectgentleman

Post Number: 4843
Registered: 03-2006
Posted on Monday, November 05, 2007 - 10:14 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

If you think more taxes will bring jobs to this state then you are mistaken. If giving our money to the government were the road to prosperity we would have gotten there long ago.
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Jt1
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Username: Jt1

Post Number: 10685
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Posted on Monday, November 05, 2007 - 10:23 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I am still curious why people are against a hotel tax. It taxes visitors.

On my last two business trips I paid a total of 14% tax on a hotel on one and 18% on another. They are taking the money of people that visit. Why we are so against it baffles me.

Ther fact that Brooks would rather divert cigarette tax money which could go to other state services to lower taxes on primarily visitors and business trips makes no sense.
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Jt1
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Username: Jt1

Post Number: 10686
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Posted on Monday, November 05, 2007 - 10:24 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I do however like the idea of reducing some of the waste in Ficanos plan.
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Gistok
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Username: Gistok

Post Number: 5666
Registered: 08-2004
Posted on Tuesday, November 06, 2007 - 1:50 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Yes, congrats Trainman! Your starting to break out of your rut... Now if we could just get Verifiable to get out of his anti-Ilitch rut...
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Andylinn
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Username: Andylinn

Post Number: 627
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Posted on Tuesday, November 06, 2007 - 4:41 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

thank god patterson ain't down with the skywalk. that part of the plan sucked.
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Perfectgentleman
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Username: Perfectgentleman

Post Number: 4850
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Posted on Tuesday, November 06, 2007 - 9:20 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Hotel taxes need to be kept in line because visitors have choices to go wherever they want. If our lodging costs are higher because of excess taxes people will go elsewhere.
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Gistok
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Username: Gistok

Post Number: 5669
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Posted on Tuesday, November 06, 2007 - 12:15 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

PG... when was the last time that you looked at hotel taxes in determining where you traveled? If that were the determining factor, you probably would never visit most major cities across the country... and definitely not NYC or Chicago.
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Smitch
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Username: Smitch

Post Number: 41
Registered: 04-2007
Posted on Tuesday, November 06, 2007 - 12:36 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

quote:

Hotel taxes need to be kept in line because visitors have choices to go wherever they want. If our lodging costs are higher because of excess taxes people will go elsewhere.



Thats ridiculous. If an extra 20 or 30 dollars on a $200/night room is enough to make you rethink your travel plans, then you didnt have enough money to be going in the first place.
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Iheartthed
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Username: Iheartthed

Post Number: 2090
Registered: 04-2006
Posted on Tuesday, November 06, 2007 - 12:39 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

^Or maybe just stay in a Motel 6 in the suburbs like all of the other penny-pinchers who visit big cities, lol.
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Fnemecek
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Username: Fnemecek

Post Number: 2596
Registered: 12-2004
Posted on Tuesday, November 06, 2007 - 2:08 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

quote:

If you think more taxes will bring jobs to this state then you are mistaken. If giving our money to the government were the road to prosperity we would have gotten there long ago.


There are 13 states that have a higher state & local tax burden than Michigan. All of them have lower unemployment rates than we do. That's 13 cases in the U.S. where higher taxes have yielded more jobs.

Plus, there are the nations of Canada, Japan and Singapore as well as the entire European Union. All with higher taxes, more jobs and a higher standard of living than what we have in Michigan.

SOURCES:
http://www.bls.gov/eag/home.ht m
http://www.taxfoundation.org/n ews/show/335.html
quote:

Hotel taxes need to be kept in line because visitors have choices to go wherever they want. If our lodging costs are higher because of excess taxes people will go elsewhere.


Detroit's hotel taxes are already lower than most other major cities. Even if the Cobo expansion were financed entirely through hotel taxes (thereby leaving car rentals and other things use predominately by tourists) our hotel taxes would still be below average.

Almost everyone who has a major convention center finances it, at least in part, by a hotel tax. There is a reason for this. It's a business model that works.

The questions we as a community need to ask ourselves are:

#1. Do we want to see more tourism and economic growth in our region?
#2. If so, are we willing to follow a proven model for economic success or do we want to wait for a few hundred million dollars to drop from the sky magically?
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Detroitbill
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Username: Detroitbill

Post Number: 375
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Posted on Tuesday, November 06, 2007 - 3:20 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I agree with the above comments re lodging taxes. I travel often for work as well as otherwise and Detroit/ Michigan is generally one of the lowest total tax levies I see on my hotel bills. An increase of 25% of taxes levied still would keep us well below most major areas. Wise investment of these extra taxes in good convention areas and public destination attractions will only enhance the area as a destination point for business and personal travellers.
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Eric
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Username: Eric

Post Number: 1003
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Posted on Thursday, November 22, 2007 - 7:46 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Well this should really help move thing forward
/rolleyes


Cobo report may mean more rancor

County officials disagree on expansion plan
November 21, 2007

BY JOHN GALLAGHER

FREE PRESS BUSINESS WRITER

A new report that some hoped would pave the way to expand Cobo Center instead may just generate more disagreement.

David Sowerby, a Bloomfield Hills investment expert, said Tuesday his much-awaited analysis of Cobo Center, to be released next week, would show that the convention center pumps $590 million into the regional economy each year.


Advertisement

Some 80% of that, or about $472 million, comes from the annual North American International Auto Show.
Of the total annual impact, some 60% flows to Wayne County businesses and residents, 30% to Oakland County and 10% to Macomb County.

"It's a meaningful impact. It also, importantly, is a recurring impact," Sowerby said Tuesday.

Referring to onetime events like Super Bowl XL and the 2006 World Series that involved the Detroit Tigers, Sowerby said the annual auto show "dwarfs those often-higher-profile events" in its economic benefit for the region.

Regional leaders asked Sowerby to conduct his analysis to provide an objective basis for discussing ways to expand Cobo. But the immediate reaction showed that disagreements remained in place.

On Tuesday, Wayne County Executive Robert Ficano's spokeswoman Sharon Banks said Sowerby's findings provide evidence that support Ficano's plan to expand Cobo.

A year ago, Ficano proposed a plan that would add 270,000 square feet of space to Cobo's existing 700,000 at an overall cost of $968 million. He would pay for it by having the state Legislature approve extending a hotel and liquor tax collected from Michigan counties another 35 years after its scheduled expiration in 2015.

"We're excited by the outcome" of Sowerby's report, Banks said. "It's an indication that it's consistent with what we've said all along. There is an impact."

But Oakland County Executive L. Brooks Patterson said Tuesday that the findings only support him in his longtime refusal to sign off on Ficano's plan.

"I think it changes the game in our favor," Patterson said of Sowerby's findings. "I don't think we should be looking at this like we're fifty-fifty partners with Wayne County and Detroit. We get back a lesser percentage. I think whatever Oakland is expected to ante up, Wayne's going to have to double it. They get double the benefit."

Patterson added, "You can't keep asking the suburbs to pay a disproportionate share when there's no return on investment, and I think Sowerby's report finally vindicates my argument."

Told of Patterson's remarks, Banks said, "Throwing up the roadblocks and the smokescreens will not get us to the finish line."

The Detroit Auto Dealers Association, which hosts the annual auto show, has warned for years that Detroit stands to lose significant portions of the auto show to other cities if leaders cannot agree on how to pay for an expansion of Cobo.

But various expansion plans over the years have withered and died, victim to city-suburban squabbling over how to pay for an expanded Cobo.

Instead of extending the hotel and liquor tax, Patterson has proposed using cigarette taxes to pay for a smaller Cobo expansion than called for in Ficano's plan.

Meanwhile, the auto dealers recently called for an addition of about 30,000 square feet to Cobo to provide some breathing room until a bigger expansion can be built. But the dealers did not propose a way to raise the $8 million to $10 million needed for their quick fix.

To sweeten the appeal of his plan, Ficano also has proposed making Cobo and other convention centers around the state tax-free zones.

If the Legislature approves, that would mean that consumers could buy cars, boats or other products shown at trade shows without tax as a way to boost the economy.

Banks said Sowerby's full report would be made public next week.

Sowerby works as a portfolio manager at Bloomfield Hills-based investment firm Loomis, Sayles & Co., but he donated his time to do the Cobo analysis.

Contact JOHN GALLAGHER at 313-222-5173 or gallagher@freepress.com

http://www.freep.com/apps/pbcs .dll/article?AID=/20071121/BUS INESS03/711210321/1002/BUSINES S
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Pjazz
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Username: Pjazz

Post Number: 95
Registered: 04-2005
Posted on Friday, November 23, 2007 - 2:24 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

30 percent is 177 million a year for Oakland county. How can he ignore that. I think his trivialization of the importance of Cobo is crazy.

(Message edited by pjazz on November 23, 2007)
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Alan55
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Username: Alan55

Post Number: 771
Registered: 09-2005
Posted on Friday, November 23, 2007 - 7:47 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

"Patterson added, "You can't keep asking the suburbs to pay a disproportionate share when there's no return on investment..."


I wonder if Brooks will be singing this same song for Detroit, Wayne and Macomb Counties when it comes time to expanding the twenty-mile stretch of I-75 in Oakland County.
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Rob_in_warren
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Username: Rob_in_warren

Post Number: 9
Registered: 11-2007
Posted on Friday, November 23, 2007 - 11:37 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

^Exactly Alan,

I don't want to pay for the installation of a city water main all the way up to northern oakland county. If someone wants city water, buy where it already is. God knows we've got plenty of available housing.

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