Economic Development Futures Journal

Friday, December 19, 2003

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Detroit Considers Sales Tax Hike to Fund Convention Center Expansion

A 1-cent per dollar sales tax increase for Metro Detroit is emerging as a proposal to fund a new or expanded Cobo Center. The controversial proposal, which is likely to face stiff opposition from Wayne, Oakland and Macomb county voters, is designed to raise up to $1.3 billion for the downtown Detroit facility and a smaller convention center in Oakland County.

The sales tax increase and other financing options are being considered by city, county and convention officials looking for ways to get 1 million square feet of exhibit area on one floor, according to Oakland County Executive L. Brooks Patterson and other officials.

Pryor, Troy’s mayor, said suburban voters may be reluctant to send tax dollars to Detroit because of other issues like a failed arts tax proposal and current water rates that have fostered resentment.

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