TAX NEWS - JUNE 2010

Detroit Tax: Big Four at Mackinac mull Gingrich's tax-free zone idea

Metro Detroit political leaders said Friday that a proposal to make Detroit a citywide tax-free zone may be worth pursuing.

Speaking during a session at the Mackinac Policy Conference of the "Big Four" Metro Detroit leaders, Detroit Mayor Dave Bing and Oakland County Executive L. Brooks Patterson said "the devil is in the details" with the suggestion by former U.S. House Speaker Newt Gingrich. Neither, however, ruled it out.

Bing said he wants to make sure any benefits would go not only to new businesses lured to the city but to those already in Detroit. He noted it would take state and federal legislation. But he added: "I am open-minded and in favor of doing that."

"It has a lot of sex appeal ... but if Dave doesn't have any revenue coming in, how's he funding his police department?" Patterson asked. "Will he ask his neighbors to help?"

On another topic, Wayne County Executive Robert Ficano and Patterson announced an agreement on the Aerotropolis economic development project, and Patterson will sign it early next week. Patterson, who originally opposed the project spearheaded by Ficano, said he has read the details of the legislation and his concerns about renaissance zones and other provisions have been addressed.

"It's all in there. We were going to sign it here but we couldn't get it organized, so we'll sign it back home," Patterson said

The Aerotropolis plan would develop property between Metro Airport and Willow Run Airport, giving companies access to airports, rail and highway. The idea is to develop an area for industries that would be efficient for moving goods.

Bing said he's eager to take the reins of Detroit Public Schools and he wants to do it as quickly as possible so "I will be able to step up and take a leadership role as it relates to the schools."

He added that emergency financial manager Robert Bobb's contract runs out in March, so it's important to launch a national search for his replacement soon.

The leaders also said they met Friday and plan to huddle again on a regional transit authority, a deal that has proved elusive for decades. "I think we're getting close," Bing said.

On the gubernatorial front, Macomb County Board of Commissioners Chairman Paul Gieleghem said he's backing Lansing Mayor Virg Bernero for governor and Patterson said he's supporting Oakland County Sheriff Mike Bouchard. Bing and Ficano said they haven't picked a candidate.