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
Another FEMA Camp ???
I live in a suburb or Detroit, and often went downtown to museums, events and restaurants. But, in all honesty, I won’t do it anymore. I cannot be assured of adequate police protection and response, especially now that the city is bankrupt and city workers know their jobs are in limbo.
I’m no whimp, but I’m not stupid either. Many of my friends feel the same way. It’ll be a rare occasion when I’d now venture into Downtown Detroit. Building the stadium there is madness to the NTH degree.
Think back to 9-11-01. Even before the dust settled, most members of Congress staged a mad dash to grab as much federal money as possible for pork projects in their districts to fortify themselves against a long dry spell before the federal cash spigot got turned off. The run on the bank went almost unnoticed while public was stunned & distracted by the actual event and the sideshow that followed. Now,at the same time that the Motor City cannot pay its bills, the government is looking for a way to finance a new party facility.