The Detroit Free Press
As details unfolded Friday about the potential sale of the Detroit Medical Center to Vanguard Health Systems, City of Detroit officials said they are eyeing the prospect of new jobs coming to the city.
"I think it will send a message around the country that we, as a city, are open for business," Mayor Dave Bing said at a news conference announcing the deal. "This is an $850-million investment in our city, in our neighborhoods and our future."
Later, Bing said he hopes the deal -- estimated to bring 10,000 jobs to the city over the next five years -- lures other investment to Detroit.
The Detroit City Council and the Wayne County Board of Commissioners will need to approve Renaissance Zone tax abatements for the medical center.
The Renaissance Zone designation grants 100% tax abatements on city and state taxes for 12 years. The tax break then drops to 75% in the 13th year; 50% in the 14th year; 25% in the 15th year, and full taxes due after that.
Bing administration officials said they have not determined the amount of taxes they would receive when the zone designation expires.
City Council President Charles Pugh said he was concerned about access for care and Detroiters having access to the jobs created. "As we proceed, we're going to work out the details," he said.
County Executive Robert Ficano said the challenge now is to get all the permits and designations approved, something he promised the region can do within 60 days.
The deal's first stop for approval will be the council's Planning and Economic Development Committee. Saunteel Jenkins, who chairs the committee, said she's still learning about the deal.
"We want to make sure that the investment remains in the city of Detroit," she said.
"I think it will send a message around the country that we, as a city, are open for business," Mayor Dave Bing said at a news conference announcing the deal. "This is an $850-million investment in our city, in our neighborhoods and our future."
Later, Bing said he hopes the deal -- estimated to bring 10,000 jobs to the city over the next five years -- lures other investment to Detroit.
The Detroit City Council and the Wayne County Board of Commissioners will need to approve Renaissance Zone tax abatements for the medical center.
The Renaissance Zone designation grants 100% tax abatements on city and state taxes for 12 years. The tax break then drops to 75% in the 13th year; 50% in the 14th year; 25% in the 15th year, and full taxes due after that.
Bing administration officials said they have not determined the amount of taxes they would receive when the zone designation expires.
City Council President Charles Pugh said he was concerned about access for care and Detroiters having access to the jobs created. "As we proceed, we're going to work out the details," he said.
County Executive Robert Ficano said the challenge now is to get all the permits and designations approved, something he promised the region can do within 60 days.
The deal's first stop for approval will be the council's Planning and Economic Development Committee. Saunteel Jenkins, who chairs the committee, said she's still learning about the deal.
"We want to make sure that the investment remains in the city of Detroit," she said.
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