  Matt Member Username: Matt Post Number: 1235 Registered: 10-2003 |
I'm surprised no one posted this already... maybe someone did in September... who knows. Company signs 10-year lease, gets numerous tax breaks to relocate offices to Campus Martius. Sofia Kosmetatos / The Detroit News Health Plan of Michigan this week will relocate its headquarters and 111 employees from Southfield to downtown Detroit. The growing company, the state's third-largest Medicaid HMO, announced the pending move in September. It will occupy two floors of the new One Kennedy Square office building at Campus Martius -- a move made with much support from the business community and Compuware Corp., said president and CEO Dr. David Cotton. More at: http://detnews.com/apps/pbcs.d ll/article?AID=/20071211/BIZ/7 12110323 | ||
Johnlodge Member Username: Johnlodge Post Number: 4123 Registered: 10-2003 |
I was just about to post this. But I made sure there were not MULTIPLE THREADS. Hey, this is GREAT NEWS! | ||
Detroitrise Member Username: Detroitrise Post Number: 1054 Registered: 09-2007 |
Thank you very much Johnlodge. THAT'S what others need to learn to do. Anyway, great news. This trend is picking up. Now Downtown is slowly, but surely robbing the office market left in SE Michigan from the suburbs, and I'm very excited about it. We need centralization like this. If only the USPS didn't make such a bone head decision. | ||
Charlottepaul Member Username: Charlottepaul Post Number: 2120 Registered: 10-2006 |
The Det News article didn't really specify why they are moving to downtown from Southfield. Hopefully it is for some reason along these lines: http://crainsdetroit.com/apps/ pbcs.dll/article?AID=/20071119 /SUB/311190062/1033/toc/-/-/de troits-gain-a-boost-for-burbs | ||
Johnlodge Member Username: Johnlodge Post Number: 4126 Registered: 10-2003 |
You don't suspect the $650,000 in tax credits had something to do with it? | ||
Detroitrise Member Username: Detroitrise Post Number: 1057 Registered: 09-2007 |
Interesting read Charlottepaul. I see there's stiff mixed opinions on this trend. | ||
Informed Member Username: Informed Post Number: 5 Registered: 11-2007 |
We are the worst tax state in the country, if Detroit wants to attract business with tax credits more power to them. At lease the Mayor gets the joke. Our state is getting beat everyday and there isn't anyone coming to help us. Plus without a core city our regions future is not going to be a good one. Its Detroit or nothing people! | ||
Detroitrise Member Username: Detroitrise Post Number: 1058 Registered: 09-2007 |
Welcome to DYes informed and you made a good point. | ||
Johnlodge Member Username: Johnlodge Post Number: 4128 Registered: 10-2003 |
To clarify, I wasn't criticizing the tax breaks, I think Detroit needs to use every tool in its arsenal. | ||
Detroitrise Member Username: Detroitrise Post Number: 1060 Registered: 09-2007 |
They sure do. If Detroit (alone) wans't doing that, downtown wouldn't even exist in 2007. | ||
Danny Member Username: Danny Post Number: 6873 Registered: 02-2004 |
YAY! Come on suburban corporations, leave the suburbs. Come to Detroit for that's where the action is. It's a great time in Detroit. | ||
Charlottepaul Member Username: Charlottepaul Post Number: 2126 Registered: 10-2006 |
"It's a great time in Detroit." I think that the city actually got rid of that motto a few years ago... | ||
Jt1 Member Username: Jt1 Post Number: 10986 Registered: 10-2003 |
Great, all Downtown needs is another homo. Wait, I misread the title.  | ||
Detroit313 Member Username: Detroit313 Post Number: 573 Registered: 02-2006 |
LOL <313> | ||
Rocket_city Member Username: Rocket_city Post Number: 501 Registered: 04-2006 |
"I know my doctor was hitting on me, but you don't have to call him names." | ||
Mackinaw Member Username: Mackinaw Post Number: 4145 Registered: 02-2005 |
Great news. I remember hearing about it in the fall, on the list of new tenants which will virtually fill One Kennedy. While tax breaks are involved, the long-run tax revenue will still be there, the spin-off for downtown businesses will be appreciable, and the effects of increasing occupancy for downtown office space are key. Imagine how much busier lunch-hours at CMP will be with a building-full of new employees. | ||
Fmstack Member Username: Fmstack Post Number: 20 Registered: 06-2007 |
What on earth does "worst tax state in the country" mean? | ||
Thejesus Member Username: Thejesus Post Number: 2981 Registered: 06-2006 |
guys, this move was announced two months ago at the same time as the marketing associates move...remember, the story then was two companies moving from the suburbs to downtown, and that one kennedy would be fully occupied... not to say this isn't an important move, but someone mentioned momentum in an earlier post and think people might be thinking this company and the one that announced its move two months ago are two different companies | ||
Jt1 Member Username: Jt1 Post Number: 10995 Registered: 10-2003 |
With the limited positive news we feel it is best to reiterate to keep spirits up. | ||
Swingline Member Username: Swingline Post Number: 973 Registered: 11-2003 |
Informed stated: quote:This kind of un-Informed exaggeration is part of the problem when it comes to trying to improve the tax climate in this state. False drumbeats like this perpetuate a belief among many who base their opinions only on headlines or political pandering that Michigan is a tax gouger run amok. But, of course, that isn' true. Michigan's state and local tax burden (business and/or individual) is not even in the top 10 according to many different studies. http://money.cnn.com/2006/04/1 0/pf/taxes/taxfriendly_states_ 2006/index.htm http://www.statetax.org/Conten t/ContentGroups/Home_Page_Cont ent/Right_Column_Area/50-State Study.pdf http://www.andersoneconomicgro up.com/modules.php?name=Conten t&pa=display_aeg&doc_ID=1950 Business taxes, as a percentage of all state and local tax collections have increased in the past decade or so, but that has been a result of various non-business tax cuts passed during the Engler administration. Right now, Michigan's biggest business tax problem is not its tax burden, but the uncertainty created by the Legislature's inability to finally decide on a long term plan to replace the SBT. | ||
Futurecity Member Username: Futurecity Post Number: 701 Registered: 05-2005 |
That list is very informative. However, I think that the exaggerations come from people in Michigan who are pissed off that Grandstand and Company chooses to purse a destructive policy of raising taxes during a period of economic decline. | ||
Fmstack Member Username: Fmstack Post Number: 22 Registered: 06-2007 |
What's more, if there's any correlation between tax rates and business climate, it's an inverse correlation. When a corporation is looking to relocate, the positives provided by sound infrastructure (both social infrastructure, and literal concrete-and-pipes infrastructure) far, far outweigh higher tax rates as a concern. Despite the fantasies of radical anti-government types, there's a reason why there's more business activity on Manhattan island than there is in Manhattan, Kansas, despite the latter having much, much lower tax rates. | ||
Futurecity Member Username: Futurecity Post Number: 702 Registered: 05-2005 |
Yes, but for high taxes any nincompoop realizes that you must actually get something in return. High taxes in metro New York gets you access to one of the greatest cities in the world. High taxes in metro Detroit gets you access to one of the most messed-up and disfunctional regions in the history of modern civilization. | ||
401don Member Username: 401don Post Number: 148 Registered: 11-2007 |
Any rumours of a restaurant at One Kennedy yet? I think a Chinese restaurant would be great. Something that would have lunch specials and draw well before or after events. Most Chinese restaurants in large cities are really hopping into the wee hours. | ||
Fmstack Member Username: Fmstack Post Number: 24 Registered: 06-2007 |
But here's the deal, fc: Taxes in metro Detroit aren't high. Yeah, whoa, mindboggling, that. | ||
Futurecity Member Username: Futurecity Post Number: 707 Registered: 05-2005 |
Right FM, but for 22nd highest, we get a disfunctional, third-world-like, catastrophe. We are probably ranked 50th in value received for taxes paid. | ||
Detx Member Username: Detx Post Number: 49 Registered: 07-2007 |
401don, I believe there is a Chinese & Thai restaurant on the side of the Compuware HQ that is opposite Ben and Jerry's. I think it’s called Wild Orchid, or something like that (the place is decorated very nice on the inside, but I’ve never eaten there. The only thing I’ve had there is the bubble tea, which was awful). That might deter someone from wanting to open a similar restaurant in One Kennedy Square. But the D has Coney Island’s pretty much everywhere, so who knows. | ||
Locano Member Username: Locano Post Number: 10 Registered: 09-2007 |
The only thing I’ve had there is the bubble tea, which was awful. Bubble Tea?•••• In Detroit!?•••••*rushes downtown* | ||
Detx Member Username: Detx Post Number: 50 Registered: 07-2007 |
Trust me, Locano, it's TERRIBLE! | ||
Downtown_remix Member Username: Downtown_remix Post Number: 561 Registered: 03-2007 |
i think a high end asian restaurant would do well in the ernest n young building.. oslo will also be re-opening soon as a full service asian restaurant. | ||
Gistok Member Username: Gistok Post Number: 5907 Registered: 08-2004 |
You know that these incentives to move downtown are great. But what is really hurting a lot of businesses downtown are the little user fees and excise taxes that Detroit charges businesses... they are literally nickel and diming the existing Detroit business owners to death... For example downtown business owners who have their own garbage removal still get slapped with a big fee for garbage... it's called a "Dumpster Fee"... they charge the business owners $350 per dumpster every year for a quick check. What do they do... they come buy and say "yep, it's a dumpster". And the building owner has to pay up that fee for $350 for each dumpster they have. Then there's the elevator inspection fee, which didn't help that guy who died tragically in a Trolley Plaza elevator. And then there's the fire inspection fees (you might not see a fire inspector in your building for years, but that doesn't stop the city from charging you). It's all these little fees that add up and cause some business owners to just give up. For every good story about business moving into Detroit, there are many stories that show the reverse trend. Just look at that once fully occupied Raymond James Building, the tenants moved to Southfield. It is doubtful that the downtown office population has ever been lower since the 1920's than it is now. The city needs to figure out not only how to recruit new business to the city, but to give the ones already here new incentive to stay. Granted those facade improvement grants for the SuperBowl were a great idea. The city needs to do more for the business already here. | ||
Mackinaw Member Username: Mackinaw Post Number: 4180 Registered: 02-2005 |
I'd guess that the downtown office population was lower about 5 years ago, no? The % might be a bit worse, but there are two new buildings full of people and other random offsetting gains. In the future there's QL and their posse, and a CBD consolidation of Wayne County. And Kilpatrick's "big announcement" is still hanging over our heads. I agree that the fees are killer for small businesses, and that is a problem. The corporations really don't care about such small outlays. | ||
Gistok Member Username: Gistok Post Number: 5909 Registered: 08-2004 |
Mackinaw, I'm not sure that you are wrong on the 5 years ago office population. But there are a few things that negate the Compuware increase... The Stott, Book and NBD Towers were all fuller than they are today. The NBD (Chase) Tower today only has 8 of 14 floors occupied. And the Roney & Co. Building (Raymond James) was occupied. DTE and MichCon had pretty full office towers in DTE HQ and Guardian/1 Woodward Ave. Buildings. Now with the DTE/MichCon consolidation, downsizing meant fewer gas/electric workers downtown. There are also fewer folks in the Comerica Tower... and are there any folks left in the Ford/UAW (Veterans) Building? So I don't know... are we better off today in downtown worker population? | ||
Mackinaw Member Username: Mackinaw Post Number: 4181 Registered: 02-2005 |
Not sure but I know we can do better. And we do know what the trends are. |
