The Detroit News
The Wayne County Commission is expected to approve a proposal today to waive taxes at the Detroit Medical Center to allow its sale to a for-profit company from Nashville, Tenn.
The deal cleared a hurdle Wednesday when the commission voted 12-1 to move it to the full board. The proposal creates a 100-acre Renaissance Zone that forgoes most taxes for 12 years and phases them in for another three.
The zone is expected to allow Vanguard Health Systems to compete with nonprofit medical facilities.
"It sends a message to any business that wants to invest in Detroit that you've got a county commission that's pro-business," said Mike Duggan, CEO of the DMC. "It's a good day for Detroit."
The Detroit City Council also has to approve the zone, but no date for that action has been set. The county committed its last zone -- a state-sanctioned development tool -- to the medical center campus, which hasn't generated taxes because the DMC is nonprofit.
Under the deal, Vanguard would pay off the bonds and assume liability for any other DMC liabilities, totaling $417 million. It is also expected to invest $850 million, including $500 million for a new tower for Children's Hospital of Michigan.
"The message this is going to send nationally and internationally is that this multibillion-dollar company firmly believes in investing in Detroit," said Turkia Mullin, assistant Wayne County executive and chief development officer.
"We recognize this is a historic day for Wayne County and a historic investment."
Commissioner Bernard Parker, D-Detroit, objected, saying Detroit should have scrutinized the zone first. Commissioner Laura Cox, R-Livonia, whose husband, Attorney General Mike Cox once worked for Duggan, abstained.
But most commissioners were enthusiastic about the plan.
"Our citizens in Detroit deserve the best," said Commissioner Keith Williams, D-Detroit.
"We're on the right track of preserving health care and preserving the tax base in Detroit."
The deal cleared a hurdle Wednesday when the commission voted 12-1 to move it to the full board. The proposal creates a 100-acre Renaissance Zone that forgoes most taxes for 12 years and phases them in for another three.
The zone is expected to allow Vanguard Health Systems to compete with nonprofit medical facilities.
"It sends a message to any business that wants to invest in Detroit that you've got a county commission that's pro-business," said Mike Duggan, CEO of the DMC. "It's a good day for Detroit."
The Detroit City Council also has to approve the zone, but no date for that action has been set. The county committed its last zone -- a state-sanctioned development tool -- to the medical center campus, which hasn't generated taxes because the DMC is nonprofit.
Under the deal, Vanguard would pay off the bonds and assume liability for any other DMC liabilities, totaling $417 million. It is also expected to invest $850 million, including $500 million for a new tower for Children's Hospital of Michigan.
"The message this is going to send nationally and internationally is that this multibillion-dollar company firmly believes in investing in Detroit," said Turkia Mullin, assistant Wayne County executive and chief development officer.
"We recognize this is a historic day for Wayne County and a historic investment."
Commissioner Bernard Parker, D-Detroit, objected, saying Detroit should have scrutinized the zone first. Commissioner Laura Cox, R-Livonia, whose husband, Attorney General Mike Cox once worked for Duggan, abstained.
But most commissioners were enthusiastic about the plan.
"Our citizens in Detroit deserve the best," said Commissioner Keith Williams, D-Detroit.
"We're on the right track of preserving health care and preserving the tax base in Detroit."
No comments:
Post a Comment