Discuss Detroit: Windsor negotiating deal for complete control of the Tunnel

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Upinottawa
Member
Username: Upinottawa

Post Number: 801
Registered: 09-2005

Posted on Friday, April 13, 2007 - 9:37 am:

From today's Windsor Star:

http://www.canada.com/windsors tar/news/story.html?id=19c4e55 7-3e2b-49d3-b131-4bbeaad98c18& k=87110

The article stresses that there will be several more months of negotiating before a deal could be made. Here is a small portion of the article relevant to Detroit's motives for an agreement:

Detroit was finally able to balance its budget for this year, but is haunted by a US$155.6-million deficit from recent years, Allen said.

The city will pay US$67 million from its revenues against that deficit this year. Kilpatrick said in his budget speech Thursday that Detroit will get US$58 million up front from the tunnel deal.

"This would take a huge hit out of the deficit, maybe make it go away," Allen said.

"We don't want to be in the tunnel business. We get the money now and your city gets control. It's great for Windsor and great for us."

Charlottepaul
Member
Username: Charlottepaul

Post Number: 778
Registered: 10-2006

Posted on Friday, April 13, 2007 - 10:11 am:

Does the City of Detroit currently get the revenue collected from the tolls because they own the tunnel?

Thejesus
Member
Username: Thejesus

Post Number: 911
Registered: 06-2006

Posted on Friday, April 13, 2007 - 10:25 am:

Detroit was able to balance its budget?

Upinottawa
Member
Username: Upinottawa

Post Number: 802
Registered: 09-2005

Posted on Friday, April 13, 2007 - 10:35 am:

Paul, I believe Detroit leases the right to operate its side of the tunnel to a third party (a company outside of Australia?). I do not have any idea as to the revenue arrangements.

Thnk2mch
Member
Username: Thnk2mch

Post Number: 867
Registered: 02-2006

Posted on Friday, April 13, 2007 - 10:44 am:

From the Free Press on the issue:

Mayor wants to lease tunnel to help reduce Detroit's deficit

quote:
Detroit Mayor Kwame Kilpatrick proposed a rosier-than-expected budget Thursday that would include no layoffs or service cuts, hire more police officers and anticipate more revenue -- all the while eliminating the city's growing deficit.

But the key to reducing the deficit hinges on a deal in which Detroit would receive $75 million this year in exchange for leasing its half of the Detroit-Windsor Tunnel to Windsor for 75 years, once its current lease ends in 2020. Terms of the deal are incomplete, but it is supported by Windsor officials and expected to close by the end of June.

quote:
Windsor wants the tunnel to remain government-run. Two years ago, Kilpatrick proposed letting Ambassador Bridge owner Manual (Matty) Moroun manage the Detroit side of the tunnel.

http://www.freep.com/apps/pbcs .dll/article?AID=/20070413/NEW S01/704130325

Thejesus
Member
Username: Thejesus

Post Number: 913
Registered: 06-2006

Posted on Friday, April 13, 2007 - 11:22 am:

thanks thnk2mch...

the article doesn't mention whether selling control of the tunnel would require any sort of federal approval, which I would imagine it must...

Upinottawa
Member
Username: Upinottawa

Post Number: 804
Registered: 09-2005

Posted on Friday, April 13, 2007 - 12:08 pm:

I don't think the plan is to sell anything. The article appears to be speaking of leasing the control of the Detroit-side of the tunnel for 75 years. Detroit is currently leasing its portion of the tunnel until 2020.