Michigan mayors fear plant closings
The mayors of four of Michigan’s largest cities are seeking federal redevelopment assistance in the event that a faltering Detroit-based American automobile manufacturing industry begins closing plants, a move that could cost the cities a substantial amount of revenue. The four cities — Sterling Heights, Warren, Dearborn and Livonia — together receive $238 million annually in property tax payments from major auto plants and parts suppliers.
Sterling Heights Mayor Richard Notte said in a statement that the struggling economy and declining house market already have taken a toll on revenues. “We hear talk of financial bailouts for Wall Street and economic rescue plans for the auto companies, but very little federal assistance has been proposed for the communities left to deal with this crisis and the effect it will have on providing vital services to our residents,” he said.
Federal assistance to automotive companies should come with conditions or additional funds to assist the cities hosting those companies, Livonia Mayor Jack Kirksey said. “This is similar to natural disaster relief funding,” Kirksey said. “The financial consequences of these plant closures put at risk many critical city services, including police and fire protection, just as in a natural disaster.”
One proposal presented by the mayors would send funds to cities that experience the closing of a 500,000-square-foot plant to be used for land acquisition, site remediation, incentives for reuse and other redevelopment costs. “It makes sense that if the federal government is going to provide financial assistance for companies that, in turn, close their plants, then that particular city should automatically qualify for federal assistance funding,” Warren Mayor James Fouts said. “If the federal government can bail out and spend billions on Wall Street, they can provide much-needed funding to bail out our automotive industry lest they go the way of the electronic industry and dinosaurs.
Read the mayors’ proposals on Sterling Heights’ web site.