Economic Development Gone Wild


This is the most notorious case of eminent domain in the name of Economic Development. The Supreme Court of the United States case ruling in 2005 of Kelo v. City of New London disregarded the fifth Amendment of the United States Constitution and turned the “takings clause” on its ear. The Kelo project not only uprooted approximately 4,200 residents, it also razed 1,300 homes, 140 businesses, six churches and provided decades of precedent.

The Michigan Supreme Court also ruled that a community could be condemned to allow General Motors to build a factory, accepting the argument that it would revitalize the community in the 1981 Poletown Neighborhood Council v. City of Detroit decision. The Poletown decision was subsequently used in a number of Law & Economics courses.

This was a red flag to pay attention to. As far as I’m concerned, all the arguments that supposedly revitalize the community and increase the tax base in the name of “economic development,” sells the hope of generating higher tax revenue, but primarily serves private interests.

July 30, 2004 the ruling was issued in the case of  Wayne County v. Edward Hathcock, in which Wayne County sought to invoke eminent domain to seize private land and facilitate a business and technology park. The park was to be owned and operated by private companies.

Justice Robert P. Young, who wrote the lead opinion, called the 1981 case allowing Detroit’s Poletown neighborhood to be cleared for a GM plant a “radical departure from fundamental constitutional principles.”

“We overrule Poletown,” Young wrote, “in order to vindicate our constitution, protect the people’s property rights and preserve the legitimacy of the judicial branch as the expositor, not creator, of fundamental law.”

Michigan made me proud by first vindicating our Constitution and then strengthening it December 13, 2005.

By a vote of 80.1 percent to 19.9 per­cent, Michigan voters approved a constitutional amendment that builds on and strengthens the Michigan Supreme Court’s reversal of the infamous Poletown decision. Among its many provisions, the amendment requires that property owners must receive 124 percent of fair market value for property taken by eminent domain. The amendment also explicitly prohibits the use of eminent domain for economic development and/or tax revenue enhancement, and specifies that condemnations based on blight must be subject to a higher standard of evidence.

State Proposal – 06-4: Constitutional Amendment: Restrict Use of Eminent Domain. View the voting results.

We had (most states still have) small business and homeowners on one side at the mercy of greedy developers and greedy government officials just looking to raise their tax base on the other. I’m grateful more than enough Michigan residents spoke at the voting booth for this amendment, just as I’m proud and indebted that enough Lenawee County voters showed up to defeat proposal 1 last week.

In light of this background by Michigan’s Supreme Court and Michigan voters, why was the Adrian & Blissfield Railroad Co., owned by Mark Dobronski allowed to take the piece of Blissfield property owned by Daniel Hacker in 2008? Read more of this story from Dennis Pelham in The Adrian Daily Telegram – Court grants land to railroad.

Judge Harvey A. Koselka’s decision should have been challenged.  The Judge’s decision came only months before his official retirement from the bench January 1st, 2009. As of today, almost three years later, the proposed $1 million construction project has yet to be built. The Railroad just recently demolished the century and a half-year old ice house for possible construction to begin building a potential new depot.

On a Different Note…

I’ve just learned about something new for a related topic; have you ever wanted to know what bill was being discussed on the House Floor or wanted a little more information about the policies of a bill?

There’s an app for that!

The Majority Whip Kevin McCarthy just unveiled the WhipCast app, a revolutionary effort in government transparency. Watch the video or read more here.

And, I just found this little bit of Intel from “Government Gone Wild,” a list of Republicans and Democrats that somehow greatly increased their net worth through public service. This is the list everybody is talking about. My brother commented saying, “it’s like pigs with noses in your trough, gobbling as much as they can, then taking a short break just long enough to turn around and grin at you.” He was watching the show American Hoggers at the time, it could have had something to do with his analogy.

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22 Responses to Economic Development Gone Wild

  1. tiredofstupidyou@yahoo.com says:

    STATE APPROVES $60 MILLION TO GROW TECH/BIO TECH INDUSTRY IN NEW JERSEY

    Governor Christie Made Full Funding of Program a Top Priority to Spur Economic Growth

    TRENTON, N.J. (Nov. 14, 2011) – Supporting the Christie Administration’s commitment to economic development and job growth, the New Jersey Economic Development Authority (EDA) announced that 75 emerging technology and biotechnology businesses have been approved to share the $60 million allocation available through the State of New Jersey’s innovative Technology Business Tax Certificate Transfer Program. Governor Christie’s Fiscal Year 2012 budget increased funds by $30 million over last year’s allocation.

    This competitive program enables companies to sell New Jersey tax losses and/or research and development tax credits to raise cash to finance their growth and operations. Since the program was established in 1999, over 1,530 applicants have been approved for $630 million. The 75 applicants approved this year are estimated to receive, on average, approximately $800,000, more than double last year’s average.

    “Governor Christie understands that the success of New Jersey’s technology and biotechnology sector is intrinsically tied to the growth of the state’s economy,” said EDA Chief Executive Officer Caren S. Franzini. “The ability to sell losses has proven to be a critical lifeline for early-stage firms, and companies that have been able to raise capital and build their businesses in New Jersey represent the success and effectiveness of this important program.”

    Administered by the EDA and the Department of Treasury’s Division of Taxation, New Jersey-based technology or biotechnology companies with fewer than 225 U.S. employees may be eligible to sell net operating losses and research and development tax credits to unrelated profitable corporations for at least 80 percent of their value, up to a maximum lifetime benefit of $15 million per business.

    Companies that benefited this year include Princeton-based Advaxis, Inc., a biotechnology company developing the next generation of immunotherapies for cancer and infectious diseases; netForensics, Inc. of Edison, a security solutions company that helps enterprises, managed service providers, and government agencies manage risk, protect critical assets, and maintain compliant operations; Cedar Knolls-based Emisphere Technologies, Inc., a biopharmaceutical company that focuses on a unique and improved delivery of pharmaceutical compounds, medical foods and dietary supplements using its Eligen® Technology; and, UDC, Inc. of Ewing, a company engaged in the research, development and commercialization of organic light emitting diode technology. Click here for the full list of approved companies.

    To further help New Jersey grow its reputation as a home for innovation, Governor Christie signed into law a measure to increase the R&D credit to 100 percent. Previously, R&D spending in New Jersey was used to offset up to 50 percent of corporate tax liability. The new law allows critical and economically-beneficial R&D spending in the state to be used to offset all of the corporate tax liability. The Governor also announced in August an expansion of the EDA’s Edison Innovation Fund to support emerging technology and biotechnology companies that have attracted funds through angel and venture capital investors.

    For additional information on the Technology Business Tax Certificate Transfer Program, visit http://www.njeda.com. To learn more about opportunities for business growth throughout New Jersey, visit the state’s business portal at http://www.NewJerseyBusiness.gov.

  2. tiredofstupidyou@yahoo.com says:

    Economic Development Incentives
    Ohio’s business incentives reduce your risk.
    Ohio Tax and Incentive Resources

    Ohio Economic Development Incentives Overview
    Tax Foundation Ratings Fail as Credible Source
    E&Y State Tax Competitiveness on New Investment
    Contact Us
    Matt Cybulski
    Ohio Sales Manager
    614-857-0900 Ext. 231

    Ohio boasts an impressive variety of incentive offerings to align with an expanding company’s financial needs. State and local tax incentives, grants and low-interest financing offer businesses the opportunity to reduce risk while encouraging investment in Ohio.

    Learn more about Ohio’s incentive programs:

    Taxation Incentives
    Business Tax Incentives: Applied to the Ohio CAT

    Ohio Job Creation Tax Credit
    Ohio Job Retention Tax Credit
    Capital Investment Incentives: Applied to Capital Investment

    Technology Investment Tax Credit
    Research and Development Sales Tax Exemption
    Warehouse Machinery & Equipment Sales Tax Exemption
    Manufacturing Machinery & Equipment Sales Tax Exemption
    Property Tax Incentives: Applied to Real Property Tax

    Enterprise Zones
    Community Reinvestment Areas
    Low Interest Financing Assistance

    Ohio Enterprise Bond Fund
    Volume Cap Program
    166 Direct Loan
    Regional 166 Direct Loan
    Rural Industrial Park Loan
    Urban Redevelopment Loan
    Innovation Ohio Loan Fund Program
    Research & Development Investment Loan Fund Program
    Grants
    Shovel-Ready Site Certification

    The Ohio Job-Ready Sites Program was created in 2005 to bolster the State’s inventory of available facility locations served by utility and transportation infrastructure. Sites improved under the program are certified by a third-party consulting firm as shovel-ready.

    Each Job-Ready Sites Program grant is capped at $5 million and may be used to offset costs traditionally incurred in industrial and commercial site development, from acquisition of real property to utility upgrades to construction build-out of speculative facilities. Funds are directed strategically to achieve two equally important objectives: (1) to create sites filling gaps in Ohio’s current site inventory and (2) to foster unique, catalytic re-investments in developed areas of the State. As such, JRS Program funds are available each year to a limited number of sites that offer Ohio’s best opportunities for future large-scale development and/or re-use.

    Grants also may be available through:

    Wright Centers of Innovation
    Wright Projects
    Biomedical Research and Technology Transfer Partnership Program
    Fuel Cell Program
    Pre-Seed Fund Initiative
    Business Development Grants

    Business Development Grants are available to companies to defray investments in acquisition of machinery and equipment and other infrastructure improvement.

  3. tiredofstupidyou@yahoo.com says:

    Wentzville, MO (KSDK) – Missouri Governor Jay Nixon joined representatives of General Motors, leaders from the United Auto Workers union, and employees at GM’s Wentzville assembly plant Thursday morning to announce the company’s plans to bring new jobs and invest hundreds of millions of dollars to the facility.

    GM is investing $380 million to upgrade and expand the Wentzville plant for production of an all-new redesigned Chevrolet Colorado mid-size pickup. This will result in 1,260 new production jobs at the Wentzville plant to accommodate assembly of the Colorado.

    Beginning in January 2012, an additional 400 jobs will be part of a second shift to support demand for the Chevy Express and GMC Savana vans.

    The average autoworker at the Wentzville plant makes $28 an hour.

    NewsChannel 5 is working to ascertain the sales figures for the Chevy Colorado. General Motors said their new redesign has been a hit overseas.

    The Chevy Colorado is currently manufactured in Shreveport, Louisiana, at a plant scheduled to close next year. That plant employs 925 people, according to a story appearing The New York Times in March.

    Ford shut down an SUV plant in Hazelwood in 2006 and Chrysler closed minivan and pickup truck plants in Fenton in 2008 and 2009.

    General Motors could be eligible for up to 10 years of incentives under the Missouri Manufacturing Jobs Act provided it meets strict requirements for next-generation investment and employment. GM could also receive incentives for creation of new jobs through the Missouri Quality Jobs Program and the Missouri New Jobs Training Program, both of which are conditioned on strict job creation requirements.

  4. tiredofstupidyou@yahoo.com says:

    FILM INCENTIVES
    CANADA

    ALBERTA

    Alberta Film

    The Alberta Film Development program is a formula grant which provides producers with a contribution of 14% – 23% of TOTAL eligible production expenditures made in the province (equivalent to a labour tax credit of 23-42%).

  5. tiredofstupidyou@yahoo.com says:

    Canada:

    Research and Development (R&D) is not only good for Canadian businesses generally, but a good thing for individual businesses to be involved in.

    Our federal government has many programs devoted to encouraging innovation, meaning that a lot of funding is accessible through R&D. One of the best of these programs is the SR&ED (Scientific Research and Experimental Development) Tax Credit Program.The Industrial Research Assistance Program (IRAP), run by the National Research Council of Canada (NRC) offers two kinds of financial assistance for R&D activities, including “non-repayable contributions to Canadian SMEs interested in growing by using technology to commercialize services, products and processes in Canadian and international markets”. To find out more, contact an Industrial Technology Advisor (ITA) at the IRAP regional office nearest to you.
    Canada Continued:
    The BDC (Business Development Bank of Canada) can be of great help in accessing R&D programs and working through the process of applying for government grants and R&D tax credits.

  6. tiredofstupidyou@yahoo.com says:

    Tennessee Tax Incentives
    Competitive Tax Incentives make Tennessee a smart decision for doing business. Tennessee has long been considered a state with one of the most business-friendly economic climates in the nation with one of the nation’s lowest per capita tax burdens, no tax on personal income and no state property tax.

  7. tiredofstupidyou@yahoo.com says:

    Wisconsin Business Incentives

    The Wisconsin economic development team includes many partners, from the Department of Commerce and other state agencies to local economic development officials, utilities, the state’s technical college and university systems and other groups. Through these partners, a wide variety of business incentive programs are available. For more information on financial assistance and incentive programs, contact Wisconsin Department of Commerce.

    Business Employees’ Program (BEST)
    Established by the Wisconsin Legislature to help small businesses in industries that are facing severe labor shortages upgrade the skills of their workforce. Under the BEST program, Commerce can provide applicants with a tuition reimbursement grant to help cover a portion of the costs associated with training employees. For further information call 1-800-HELP-BUS (1-800-435-7287).

    Community Development Block Grant for Economic Development Revolving Loan Fund (CDBG-ED/RLF)
    Funded through the federal Small Cities CDBG Program, provides grants to communities to promote local job creation and retention. Local governments then lend the funds to businesses for start-up, retention, and expansion projects through grant funding. Funding levels depend on the number of jobs to be created or retained.

    Customized Labor Training Fund
    Provides training grants to businesses that are implementing new technology or production processes. The program can provide up to 50 percent of the cost of customized training if it is not available from the Wisconsin Technical College System.

    Dairy 2020 Initiative
    Awards grants for business and feasibility planning to dairy producers and processors considering a modernization or expansion project.

    Early Planning Grant Program (EPG)
    Helps individual entrepreneurs and small businesses throughout Wisconsin obtain the professional services necessary to evaluate the feasibility of a proposed start up or expansion.

    Enterprise Development Zone Program
    Promotes a business start-up or expansion on a particular site in any area of the state that suffers from high unemployment, declining income and property values, and other indicators of economic distress. The program offers tax credits for such activities as hiring disadvantaged workers and undertaking environmental remediation. Tax credits can be taken only on income generated by business activity in the zone. The maximum amount of tax credits per zone is $3 million.

    Focus on Energy
    Focus on Energy works with eligible Wisconsin businesses to install cost effective energy efficiency and renewable energy projects. Focus information, resources, and financial incentives help implement projects that otherwise would not be completed, or to complete projects sooner than scheduled. Its efforts help businesses manage rising energy costs, promote in-state economic development, protect the environment and control the state’s growing demand for electricity and natural gas.

    Tax Incremental Financing (TIF)
    Helps cities in Wisconsin attract industrial and commercial growth in underdeveloped and blighted areas. A city or village can designate a specific area within its boundaries as a TIF district and develop a plan to improve its property values. Taxes generated by the increased property values pay for land acquisition or needed public works.

    Industrial Revenue Bonds (IRBs)
    These are a means of financing the constructing and equipping of manufacturing plants and a limited number of non-manufacturing facilities. The municipality is not responsible for debt service on IRBs, nor is it liable in the case of default. IRBs are also exempt from federal income tax.

    Major Economic Development Program
    Offers low-interest loans for business development projects that create a significant economic impact.

    Rural Economic Development Program
    Makes individual awards up to $30,000 for feasibility studies and other professional assistance to rural businesses with fewer than 25 employees. Businesses that have completed their feasibility evaluations are eligible for individual micro loans up to $25,000 for working capital and the purchase of equipment.

    Technology Development Fund
    Helps businesses finance Phase I product development research. Firms completing Phase I projects can receive Phase II product-commercialization funding.

    Wisconsin Transportation Facilities Economic Assistance and Development Program
    Funds transportation facilities improvements (road, rail, harbor, airport) that are part of an economic development project.

  8. tiredofstupidyou@yahoo.com says:

    The Michigan Economic Development Corporation approved tax breaks Tuesday in exchange for new investment and jobs.

    MEDC spokesman Joseph Serwach says one of the four projects receiving tax breaks includes a much-needed grocery store in the City of Detroit.

    “We just approved a Whole Foods earlier this year for Midtown Detroit,” Serwach said. “Now Meijer is also coming into Detroit – this is something that the city’s been looking for for a long time.”

    Detroit has been labeled a “food desert,” because of its lack of grocery stores with fresh produce. The $3.3 million state tax incentive will help cover the demolition of the former Redford High School in order to build a new Meijer store.

    A $4.7 million tax break goes to a project in downtown Grand Rapids. The Grand Rapids Urban Market will operate a seasonal farmers market and a year-round indoor market.

    While Governor Snyder’s administration has reduced the number of tax incentives, Serwach says they’ve focused more on the state’s major urban centers.

    “Those are both examples of our cities growing again, our urban core growing again and that’s good for the whole state,” Serwach said.

    From the press release today:

    Effective October 1, the $100 million Michigan Business Development and Michigan Community Revitalization Programs replaced the state’s previous MEGA, Brownfield and Historic tax credit programs that were features of the Michigan Business Tax that was eliminated under business tax restructuring legislation approved and signed into law by Governor Rick Snyder in May.

    Serwach says those limitations will not be in place until the end of this calendar year.

    Another project in downtown Kalamazoo will get $3.1 million tax break. The Exchange Project will turn “a surface parking lot into an eight-story mixed-use development that will include residential, office, commercial and retail space.”

    The fourth project is in the Village of Dexter in Washtenaw County. Tax incentives will help pay to demolish a light industrial park and make way for the Dexter Wellness Center.

    Combined, the projects are expected to create around four-hundred new, permanent fulltime jobs.

    • Robin says:

      Thanks tired, for providing all those examples of Economic Development gone wild, you’ve been pretty busy copy and pasting (you must be tired). For future reference though, copyright laws general prohibit you from copying someone else’s work without giving them their due attribution, if in fact, you’re allowed to copy their work in the first place.

      We have already discussed the Economic sandbox other communities and states play in, we were in agreement they exist.

      Show me one study that proves economic development works. More importantly, show me where in the Constitution our government has the authority to provide jobs (or even pretend to provide jobs) for the private sector? Where in the Constitution does it say our government shall take money from the taxpayer to increase its tax base?

  9. tiredofstupidyou@yahoo.com says:

    MICHIGAN ECONOMIC GROWTH AUTHORITY ACT (EXCERPT)
    Act 24 of 1995

    207.804 Michigan economic growth authority; creation within Michigan strategic fund; duties; membership, appointment, and terms of members; vacancy; compensation; expenses.
    Sec. 4.

    (1) The Michigan economic growth authority is created within the Michigan strategic fund. The Michigan strategic fund shall provide staff for the authority and shall carry out the administrative duties and functions as directed by the authority. The budgeting, procurement, and related functions as directed by the authority are under the supervision of the president of the Michigan strategic fund.

    (2) The authority consists of the following 8 members:

    (a) The president of the Michigan strategic fund, or his or her designee, as chairperson of the authority.

    (b) The state treasurer or his or her designee.

    (c) The director of the department of labor and economic growth, or his or her designee.

    (d) The director of the state transportation department, or his or her designee.

    (e) Four other members appointed by the governor by and with the advice and consent of the senate who are not employed by this state and who have knowledge, skill, and experience in the academic, business, local government, labor, or financial fields.

    (3) A member shall be appointed for a term of 4 years, except that of the members first appointed by the governor, 2 shall be appointed for a term of 2 years and 2 for a term of 4 years from the dates of their appointments. A vacancy shall be filled for the balance of the unexpired term in the same manner as an original appointment by the governor and by and with the advice and consent of the senate.

    (4) Except as otherwise provided by law, a member of the authority shall not receive compensation for services, but the authority may reimburse each member for expenses necessarily incurred in the performance of his or her duties.

    History: 1995, Act 24, Imd. Eff. Apr. 18, 1995 ;– Am. 2003, Act 248, Imd. Eff. Dec. 29, 2003 ;– Am. 2006, Act 484, Imd. Eff. Dec. 29, 2006
    Compiler’s Notes: For transfer of the position as member of Michigan economic growth authority designated for the director of the Michigan jobs commission to the president and chief executive officer of the Michigan economic development corporation to the department of labor and economic growth, see E.R.O. No. 2003-1, compiled at MCL 445.2011.For transfer of the position as member of the Michigan economic growth authority designated for the director of the department of management and budget to the director of the department of labor and economic growth, see E.R.O. No. 2003-1, compiled at MCL 445.2011.For transfer of position of member of board designated for director of department of transportation from director of department of transportation to state budget director, see E.R.O. No. 2010-3, compiled at MCL 125.1992.
    Popular Name: MEGA

    © 2009 Legislative Council, State of Michigan

  10. tiredofstupidyou@yahoo.com says:

    From Wikipedia, the free encyclopedia

    The Economic Development Administration (EDA) is an agency in the United States Department of Commerce that provides grants to economically distressed communities to generate new employment, help retain existing jobs and stimulate industrial and commercial growth.

    Contents [hide]
    1 History
    2 Mission and Investment Priorities
    3 Organization
    4 Senior Leadership
    5 See also
    6 External links
    7 References
    [edit]History

    The EDA was established under the Public Works and Economical Development Act of 1965 to generate jobs, help retain existing jobs, and stimulate industrial and commercial growth in economically troubled areas of the United States. EDA assistance is available to rural and urban areas of the United States experiencing high unemployment, low income, or other severe economic distress.

  11. tiredofstupidyou@yahoo.com says:

    From Wikipedia, the free encyclopedia

    Mission and Investment Priorities

    EDA’s stated mission is to “lead the federal economic development agenda by promoting innovation and competitiveness, preparing American regions for growth and success in the worldwide economy.”[1]

    The U.S. Economic Development Administration’s investment policy is designed to establish a foundation for sustainable job growth and the building of durable regional economies throughout the United States. This foundation builds upon two key economic drivers – innovation and regional collaboration. Innovation is the key to global competitiveness, new and better jobs, a resilient economy, and the attainment of national economic goals. Regional collaboration is essential for economic recovery because regions are the centers of competition in the new global economy and those that work together to leverage resources and use strengths to overcome weaknesses will fare better than those that do not. EDA encourages its partners around the country to develop initiatives that advance new ideas and creative approaches to address rapidly evolving economic conditions.[2]

    [edit]Organization

    The Economic Development Administration is led by an Assistant Secretary of Commerce for Economic Development, who is appointed by the President of the United States. The current Assistant Secretary is John Fernandez, who was appointed by President Barack Obama on September 14, 2009. The Assistant Secretary is assisted in running the Administration by two Deputy Assistant Secretaries and various other senior career federal employees.

    Assistant Secretary of Commerce for Economic Development
    Deputy Assistant Secretary of Commerce for Economic Development/Chief Operating Officer
    Office of External Affairs
    Office of Information Technology
    Office of Innovation and Entrepreneurship
    Office of Finance and Management Services
    Deputy Assistant Secretary of Commerce for Regional Affairs
    Office of Regional Affairs
    Atlanta Regional Office
    Austin Regional Office
    Chicago Regional Office
    Denver Regional Office
    Philadelphia Regional Office
    Seattle Regional Office
    [edit]Senior Leadership

    John Fernandez, Assistant Secretary of Commerce for Economic Development

    Brian P. McGowan, Deputy Assistant Secretary/COO for Economic Development

    Sean Cartwright, Chief of Staff

    Angela Belden Martinez, Senior Advisor and Director of Outreach

    Barry E. A. Johnson, Senior Advisor and Director of Strategic Initiatives

    Barry Bird, Chief Counsel
    Bryan Borlik, Director, Performance and National Programs, and Director, Trade Adjustment Assistance for Firms

    Angela Ewell-Madison, Director, Legislative and Intergovernmental Affairs

    Cleve Mesidor, Director, Public Affairs

    • Robin says:

      Please stop copy and pasting information that does not quantify your argument. You have only provided the rationalization that these entities have used to sell us their worth. This is their PR and marketing, it proves nothing except the profitability of their existence is only for themselves.

      Show me one study that proves economic development works. More importantly, show me where in the Constitution our government has the authority to provide jobs (or even pretend to provide jobs) for the private sector? Where in the Constitution does it say our government shall take money from the taxpayer to increase its tax base?

      If you would like to have a grown up conversation, I’m all ears, until then, your comments will be moderated for relevancy.

      • Robin says:

        If the Michigan Economic Growth Authority (MEGA) has had any impact other than benefiting the employees that are running the organization and the select few winners they have chosen to incentivize (if that’s not a word, it should be), wouldn’t Michigan’s economy and job picture be better off in 2011 as opposed to the start-up year of the organization in 1995?

        Every economic development organization should be shut down, and we should be demanding it! Get all those wealth consumers back into the public sector where they can innovate and be a wealth producers. It’s quite simple to me. They don’t work, they’re a drain on the system, they only provide government expansion and those billions of dollars should be used to give the property owners a tax abatement, therefore a major incentive to stay in Michigan.

        From one of my favorite authors – Michael LaFaive and James Hohman (from 2009) – read all about it. Don’t forget to click on more articles they have written on the subject by scrolling down to the bottom of the page. In this article he writes, “The Michigan Economic Growth Authority is the “flagship” program in Michigan’s economic development complex. It was created in 1995[72] and is today administered by the Michigan Economic Development Corp. It had been administered by the MEDC’s predecessor agency, the Michigan Jobs Commission. In the following pages, we describe MEGA and provide a new analysis of the program.

        MEGA was meant to facilitate job creation and retention in Michigan by offering business tax credits to select firms willing to expand in or relocate to the Great Lakes State. MEGA also typically arranges for businesses offered MEGA tax credits to receive other tax breaks and subsidies. The original authorizing statue for MEGA, Public Act 24 of 1995, mandated that local units provide an incentive as part of the overall deal (this mandate was removed from the statute in 2008). Many municipalities offered local property tax abatements, but other local incentives included such things as discounted parking and subsidized golf.”

        Also read this MEDC & MEGA review and analysis, https://www.mackinac.org/10896 This article praises the way the program is set up for performance milestones in comparison to other programs; however, the next part is is especially troublesome. LaFaive and Hohman write, “Yet despite MEGA’s design advantage over many subsidy programs, there is scant evidence that MEGA has worked. The authority’s basic performance record is poor, and two major statistical reviews show either no jobs impact or negative jobs impact.

  12. Tom says:

    Kelo is the ultimate example of an economic development failure and the Poletown decision was rightly vindicated as a gross injustice to all those displaced homeowners who were moved out by eminent domain so that GM could expand in an area it needed not take over. Great nod to the history of economic development and its detriment to the common citizens.

    Tired/Voice with his cutting and pasting of laws passed in 1995, irrelevant Wikipedia articles, and E.D. propaganda is not proving anything other than their instability. You are right to label them as Spam, Robin, until he presents relevant content or creates some original thoughts of his own, which would be a change of pace, for sure.

    • Robin says:

      Michigan has spent billions on economic development while homeowners have lost even more, I say it’s time to fight back and not idly watch as nonsensical laws/regulations and programs or government agencies/bureaucrats create hardship on our dime. We need to come up with a plan in conjunction with getting the DDA’s in conformance (dissolved).

      I’m convinced Tired/Voice does not have an argument and would prefer to present abusive behavior. It’s a good thing she/he has anonymity!

  13. Tom says:

    The problem with going against economic development in the political arena is difficult because of the support they get from both political parties. Democrats love the fact that they can regulate businesses and increase government power over the private sector and justify even more public spending. Republicans see the facade of “economic development” and presume they are helping business growth and development.

    This is coming out in the California debate over eliminating ED agencies. The Democrats led by Gov. Jerry Brown are trying to reform and eliminate some of these agencies, but the Republicans are almost entirely fighting such action. It seems a reversal of roles, and Steven Greenhut critiques that here: http://reason.com/archives/2011/11/14/corporate-welfare-and-the-california-gop

    • Robin says:

      You’re right Tom that is a problem. Too many things have become political tools instead of focusing on the difference between right and wrong. What ever happened to doing the right thing instead of what’s politically expedient? Senator Bob Huff of Diamond Bar with his crony conflict of interest shouldn’t be tolerated in the least – there or anywhere.

      Since most California Republicans are indeed against Jerry Browns move to shut down Redevelopment Agencies (RDA’s) as reported in the article you provided, they do not have any idea about free markets or just don’t care. I can only surmise those in opposition are Rhino’s. Like Canada, the conservatives over there would be considered Liberals here. I’m extremely disappointed in them just the same.

      After liberalism in California has decimated their economy, it’s great to see some sort of about-face and admission to the errors of their ways. I hope they keep it up.

      I don’t know why any American would risk their property rights and liberties for economic development. The most coveted symbol of freedom is property ownership, this constant land and power grab from our own government reaches a point of no return. There comes a point when there is no longer any recourse left. When we’re left with no rights, we can only grumble amongst ourselves, and that might be against the law at that point too.

      The most glaring point here is, if the most liberal of states decides what they’ve been doing is wrong, why are the rest of us hanging on to it?

      This part of the article concurs with what I’ve been yammering on about for a year and a half – “Of course, most of the claims by redevelopment’s advocates and beneficiaries of new jobs are bogus. The nonpartisan and highly respected state Legislative Analyst’s Office found, “While redevelopment leads to economic development within project areas, there is no reliable evidence that it attracts businesses to the state or increases overall regional economic development.” LAO debunked the absurd job-creation claims made by the California Redevelopment Association.”

      This segment reminds me of the Michigan Main Street program (I believe MSHDA’s marketing arm) and what they’ve recently done in Detroit. In order to make one area (downtown) look more vibrant, they set out to prevent and reverse urban sprawl by convincing outlying businesses and residents to move downtown. They can then claim they’ve revitalized the core. In Detroit’s case, they’ve been paying people $20,000.00 to move downtown.
      http://www.businessinsider.com/abandoned-houses-detroit-2011-2
      At least this one seems to be a private sector venture. http://www.mlive.com/business/detroit/index.ssf/2011/07/would_you_move_to_detroit_for.html

      • Tom says:

        Ironic that in the same article they’re talking about giving policemen and college graduates big money to live in Detroit that they show 100 abandoned houses in that area. They seem to be saying: “Here’s some of the possible places you could buy with that money.”
        True conservatives can be easily convinced of the inadequacies and hollowness of economic development with just telling them the facts of the matter. Like I said, Econ. Dev. is a facade and many more could be convinced if that facade is torn down. But those who come out against it will be painted by the usual suspects as something undesirable– just like when one party (guess which one) calls the other “racists”, “homophobes”, or “sexists” when there is little or no evidence such an epithet is earned.

        In other words, when tired/voice or others come on here and sling their aspersions and names, they are primarily just trying to neutralize you and have you give up the fight to get your message across. Secondarily, they have no adequate facts to back their claims and little ammo to refute yours. Sorry, dudes.

        • Robin says:

          Again, I believe you’re right (at the risk of repeating myself). Unfortunately, the little tribe that runs our Village, for the most part, think the same way Tired/Voice does. They stack the deck with appointees and I’ve been hammered about my “out-of-the-box” (or was it radical) thinking that is actually our Founding Fathers thinking. Their favorite aspersion they like to label me with is “negative”. What I can say about that using the fewest words possible is – thank God for the Tea Party and Constitutional Conservatives.

          That was a great article you found and shared with us…thanks.

          • Tom says:

            I wouldn’t be surprised if your village leaders try to say that they “Are moving things forward in a positive direction.” as if your side is moving things to the left on the number line! That’s what they like to say in my neighborhood.

            • Robin says:

              Yes, as a matter of fact – they do. I believe it’s called manipulating perception. Imagine what could be accomplished if they focused their energy on what is right instead of what they want you to believe is right.

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