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Posted on Fri, Dec 3, 2010 : 10:10 a.m.

Michigan Legislature approves tax incentives for Aerotropolis plan

By Nathan Bomey

A plan to cultivate a transportation and logistics industry surrounding Detroit Metropolitan Airport and Willow Run Airport got a boost this morning when the Michigan Legislature passed a bill allowing local entities to distribute tax incentives to companies in these sectors.

The concept, generally referred to as the Aerotropolis initiative, holds that southeast Michigan has an underutilized network of assets that could attract transportation companies.

Politicians and economic development leaders hope to attract shipping companies by luring them with the promise of tax incentives and easy access to cargo shipping at the two airports.

The Next Michigan Development Act allows local governments to collaborate to establish groups with the authority to create tax incentive zones targeted at the transportation and logistics industry.

In anticipation of this bill, Washtenaw County, Wayne County, Ypsilanti, Ypsilanti Township, Belleville, Taylor, Romulus, Huron Township and Van Buren Township reportedly signed a deal to create the Aerotropolis Development Corp. to distribute tax incentives and handle permitting and related paperwork.

"The Aerotropolis plan is the type of legislation and regional cooperation we need to help businesses create jobs in Michigan," state Rep. Pam Byrnes, D-Lyndon Township, said in a statement. "I'm pleased we were able to get this law passed. With so many families and businesses struggling across Michigan, we can't afford to wait for the next Legislature to get to work."

The bill was one of the final measures considered by the Legislature before it adjourns for the year and new members come into office next month.

Contact AnnArbor.com's Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter or subscribe to AnnArbor.com's newsletters.

Comments

AlphaAlpha

Sun, Dec 5, 2010 : 10:36 a.m.

"The Next Michigan Development Act allows local governments to collaborate to establish groups with the authority to create tax incentive zones targeted at the transportation and logistics industry. " Tax incentives for the transportation and logistics industries? why not extend the tax incentives to all industries? Do we want to encourage growth or not?

Basic Bob

Sat, Dec 4, 2010 : 9:29 p.m.

The labor pool is a key issue in the potential for development. Michigan is stuck with the perception of an aging and poorly educated workforce demanding union pay for substandard work. Tax incentives won't help if companies must relocate all their talent from other states.

81wolverine

Fri, Dec 3, 2010 : 12:49 p.m.

Generally, this is a very good idea. There IS a real asset there that Michigan can leverage to attract more business. But, infrastructure is the key. If all the right blend of airport capacity, road system, industrial park space, utilities, and services is in place, businesses will come. Then, the tax incentives won't be all that necessary. Another key is someone doing a good job telling the world that it's there, i.e. marketing.