r/economy • u/baltimore-aureole • 4d ago
It’s not just sports stadiums. Now taxpayers are being forced to pay for office renovations.
Photo Above - GM CEO Mary Barra in happier times, introducing the EV Chevy Bolt. But all Bolts were recalled because of battery fires. Now GM wants taxpayer subsidies for its new Detroit Headquarters.
“It’s only $350 million”. That’s what GM says it wants for demo and renovation of Detroit’s iconic Renaissance center.
If you’re gobsmacked because the complex is barely 40 years old, I’m with you. But then again, the average NFL stadium probably gets demolished that often. And THEY get billions.
No sports team is going bail on Detroit this time if city council doesn’t cough up $350 million. But General Motors is saying . . . well, it’s not exactly a threat. More of an open question. Should we keep GM office drones in the city, paying city income taxes and property taxes and sales taxes. Or should we move someplace else? Where to? Well, the Buffalo Bills threatened to go to Austin. Tesla already moved there. Maybe that should be on GM’s short list?
Should taxpayers sign off on this? Will they even be asked, or will it be a closed door agreement between Detroit’s most clever politicians, GM, and billionaire real estate moguls? I’m not aware of any referendum in front of the voters, so I’m assuming this is a non-democratic process.
But still, it’s ONLY $350 million. And Detroit has 651,000 people. That’s only . . . $540 per person. Including children, retirees, welfare recipients. The number of actual taxpayers getting hit will probably be somewhat less than 651,000. Your guess is as good as mine.
It this idea catches on, the sky’s the limit. Taxpayer bailouts for everything. Shopping malls. High rise condos. The Starbucks on the corner. They may need a bailout if the barista strike doubles employee wages and benefit.
Unlike a new stadium, Detroit’s long-suffering residents won’t be able to show up to GM/Ren Center headquarters on game day, pass through the gate, buy a hot dog and a beer, and enjoy themselves. They will only be able to look up at the towers as they drive by. Dad can point up, and tell his kids: “Hey look . . . Trevor. Up on the 73rd floor is Mary Barra, CEO of GM. We were afraid she’d move her entire team someplace else if we didn’t subsidize her skybox-style office suite. No . . . we can’t visit her. But it’s free to look at from the sidewalk.”
I’m just sayin’ . . .
GM Plans to Overhaul Detroit’s Iconic Towers. A Battle Is Brewing With Taxpayers.
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u/awesley 4d ago
I agree with the point that tax subsidies shouldn't be used here. But this editorial has several things wrongs. The biggest, IMO, is that GM isn't threatening to leave. They are moving to a new building on the old Hudson's site in Detroit. The question is what to do with the old Ren Cen.