Responding to the city of Warren’s strong offer of tax incentives to General Motors to move their headquarters to the suburbs, the city of Detroit has responded by doubling up on the Enlightenment, offering to put the Renaissance Center in a renaissance zone. Crain’s Detroit Business reports:
Detroit and Wayne County will take a tax hit if General Motors Corp. accepts a tax-free renaissance zone — but the consequences are far worse, said Wayne County Executive Robert Ficano…
In a renaissance zone, a host of taxes are waived, including business, income, and real and personal property taxes. Ficano said the renaissance zone would extend for 12 to 15 years.
One tower not owned by GM is occupied by EDS and already has a renaissance zone. Four other towers would now also be in a renaissance zone, if the Michigan Economic Development Corp. approves the request, which Ficano said the county plans to make next week.
Asked why they would go so far, Ficano said succinctly, “We can’t afford not to do it.” Losing GM’s more than 4,000 employees would not only lose the personal income tax they pay to the city of Detroit, but would also lose all of the money they spend at other businesses in Detroit while on the job.