County Head Leery of Plan

Oakland County Executive L. Brooks Patterson said he would not sign on to the regional plan to expand Detroit’s Cobo Hall Convention Center “until we get answers” from other partners in the project, which calls for roughly $600 million of borrowing.

The plan’s partners include Michigan Gov. Jennifer Granholm, who has pledged $150 million, Wayne County Executive Robert Fiacano, and Detroit Mayor Kwame Kilpatrick.

Under the long-awaited plan, the state would create a new authority that would purchase the Cobo Center — where the annual North American Auto Show is held — for $20 million from Detroit. It would have the ability to sell bonds for the upkeep and operation of the center. The project would in part be financed through liquor and hotel taxes, and the state would also create a sales tax-free zone in an effort to attract more conventions.

Patterson has been opposed to the project for months, and in his state of the county address last week questioned why a new authority would pay $20 million for the center in addition to a projected $200 million in repairs, and whether the suburb would end up paying more than its share of taxes to finance the operation of the center.

“We in Oakland County have yet to sign on to this plan because frankly, we have got questions that have yet to be answered,” Patterson said. “Until we get answers on these and many more questions, Oakland County will continue to resist the Fiacano plan.”

It’s unclear whether Patterson’s support is necessary for the plan’s realization, though he has also said that he would block legislation enacting a new authority and sales tax-free zone. 

Meanwhile, Patterson said the triple-A rated county faces “severe budget challenges” with a projected shortfall of $5.1 million, and $14.8 million by 2009, due to declining property values. Property taxes make up 62% of Oakland County’s general fund budget.

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