The city of Detroit will be getting a new tax-funded, $450 million sports arena at the same time they are declaring bankruptcy.
JG Vibes
While the underground markets in Detroit are thriving, bringing about the beginning of an explosion in free enterprise activity and private sector jobs, the cities government is failing desperately. The same can be said for many other American cities and even the country of America itself.
The problems of central planning are too numerous to cover in this short article, but one of the most obvious problems is resource mismanagement. Detroit had no lack of public loot, that’s for sure. There were billions of dollars in revenue that were mismanaged. Funds went to over inflated bureaucratic budgets, useless special interest and public relations projects, and even a brand new $450 million sports arena.
The Wall Street Journal reported that:
As Detroit settles in for a long, tortured trip through bankruptcy court, the public financing deal for a new arena to house the Red Wings will likely skate by intact. Michigan’s state legislature approved Wednesday a $450 million bond offering that would form the public backbone of Ilitch’s Holding’s $650 million entertainment center and development district near the heart of downtown Detroit.
“I don’t see this being the death knell of the arena project,” said Brian Holdwick, executive vice president for the Detroit Economic Growth Corporation, which is behind the deal.
There are a number of private investors involved in the project, however at least $283 million dollars will be taken from the taxes of local residents. That number is likely to grow as the project develops.
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J.G. Vibes is the author of an 87 chapter counter-culture textbook called Alchemy of the Modern Renaissance, a staff writer, reporter for Intellihub.com