CHICAGO - Michigan lawmakers wrapped up their 2008 session Friday with the approval of a long sought-after measure to advance a bond-funded plan to expand Detroit's Cobo Center as well as a plan to build a light-rail line that could play a key role in the development of a regional southeastern Michigan transportation system.
The Legislature postponed until next year a pair of tax and fee increase proposals that would have boosted funding for transportation infrastructure projects across the state.
Coming after years of bickering among regional leaders, the Cobo legislation advances a $280 million plan for an expansion of the center, home of the North American International Auto Show. An increasing number of automakers over the last few years have cited space constraints and pulled out of the annual show, which is considered crucial to Detroit's economy.
Under the legislation, Detroit would transfer ownership to a newly created authority with the power to sell bonds and collect tax revenue. The five-member board would be made up of representatives from Detroit and Wayne, Oakland, and Macomb counties, and one member appointed by the governor. To finance the expansion, the measure extended hotel, liquor, and cigarette taxes through 2039.
Detroit Mayor Ken Cockrel Jr. reportedly went to Lansing after midnight last Thursday to hammer out final details with Gov. Jennifer Granholm and legislative leaders.
"This is not a perfect deal, but over 16,000 of our residents rely on Cobo for their livelihoods," House members said in a statement after passing the measure. The Detroit City Council still needs to sign off on the deal.
Lawmakers also approved a measure that paves the way for construction of a 3.5-mile light-rail line running along one of Detroit's main thoroughfares.
The 12-stop line is to be financed largely by $103 million in private donations raised by local businessmen who have pledged their support. Under the measure, the state would contribute roughly $8 million annually for operation of the project. The line is expected to serve as a connecting point for new bus lines and a proposed commuter line running between Ann Arbor and Detroit.
The Detroit Department of Transportation, which has developed its own $371 million proposed light-rail line along Woodward Ave., plans to merge its proposal with the privately funded proposal, according to reports.
Granholm pushed for both the Cobo and light-rail measures, and plans to sign them into law.
Lawmakers postponed a plan to raise the gasoline tax and vehicle registration fees to boost spending on road and bridge infrastructure across the state. The proposal was expected to raise $1.5 billion, and Senate Majority Leader Mike Bishop, R-Rochester, said it was likely the issue would be taken up next year. A recent state report warned that Michigan will lose up to $1 billion in annual federal funds and thousands of jobs if it does not increase its spending on transportation infrastructure.
The Legislature begins its 2009 session Jan. 14. Democrats will continue to control next year's House, with more than a third of its members serving first terms due to a relatively new term-limit law. The Senate will continue to be led by Republicans.
