Ficano Unveils Plan for Cobo Expansion

DETROIT � Wayne County Executive Robert A. Ficano today unveiled a new plan to expand the Cobo Hall Convention Center, increase convention business, protect jobs, and enhance the annual North American International Auto Show.

Ficano�s proposal � a scaled down, less costly version of a plan he unveiled in December 2006 � would increase Cobo�s exhibit space by 120,000 square feet for a total of 820,000 square feet at a construction cost of about $323 million. It would be paid for by extending the in-county hotel and statewide liquor taxes collected by Michigan counties for seven years, instead of a 22-year extension previously proposed.

The county is working with the state to create a limited, sales tax-free zone, which is believed to be the first for an American convention center and would eliminate sales tax on defined purchases made at Cobo.

�We can expand our regional convention center without raising new taxes and give consumers a tax break at the same time,� said Ficano. �Let�s get this done for the people of Michigan.�

The state of Michigan is considering options for restructuring and refinancing the annual debt payments Wayne County makes to the state to support the project.

�The expansion of Cobo Center is a terrific economic development project for the city of Detroit, southeast Michigan, and the entire state,� Governor Jennifer M. Granholm said. �We are working on a creative partnership that will bring new jobs without significant costs to the state or additional burdens for Michigan taxpayers.�

In addition, legislation is scheduled to be introduced in the State House next week in support of the Cobo expansion.

Ficano said the new plan is the product of more than two years of study and discussions with area stakeholders, including automakers, the Detroit Auto Dealers Association, the Detroit Regional Chamber, Detroit Renaissance and others. His previous plan included a 270,000 square-foot expansion costing $425 million.

The plan features a major renovation of the facility and expansion to include two covered moving walkways connecting Cobo to the Detroit Marriott Renaissance Center and the Sheraton Ponchartrain. Cobo Arena will not be demolished as previously proposed.

Cobo would be sold by the city of Detroit to a regional convention authority, according to the plan. Representatives of Wayne, Oakland, and Macomb counties, the state of Michigan and the city of Detroit would serve on the board.

In a recently completed study, economist David Sowerby of Troy estimated the annual impact from Cobo events at nearly $600 million, with 80 percent of the spending generated from the auto show. More than 16,000 jobs are created through events at Cobo, according to Sowerby�s study.

Over a 10-year period, Cobo�s economic impact �equals more than 50 Super Bowls or 400 World Series games,� Sowerby said.

Legislation will include three bills creating a public authority to own and run Cobo, extending the hotel and liquor tax, and establishing a limited sales tax-free zone at Cobo.

�Cobo and the auto show are obviously important to our economy, and a limited, sales tax-free zone is a bold, new approach to attracting business,� said State Rep. Morris Hood III (D-Detroit), a supporter of the plan. �This plan merits the enthusiastic support of the Legislature.�

Details of the Cobo plan and the tax-free zone, including a video presentation, are available at www.coboformichigan.com.