State Representative David Nathan (D-Detroit) outlines plan to modernize Cobo Hall:
Cobo Hall is an important part of Detroit's economy and culture, and the modernization plan for the aging facility will go a long way toward getting our city and our state back on track.
Hundreds of thousands of visitors come to Cobo Hall each year from across Michigan and the country, many to visit the North American International Auto Show, one of Michigan's signature events. In addition to being responsible for more than 16,000 jobs, it is estimated that Cobo Hall brings in hundreds of millions of dollars in revenue annually to Southeast Michigan's economy.
While the plan to renovate Cobo Hall will have tremendous benefits for Detroit and its hard-working families, a number of residents have expressed to me their reservations about the plan. In keeping with my commitment to transparency and accountability, I would take this opportunity to provide you with a breakdown of the plan and its key elements.
Modernization of Cobo Hall
On June 26, my colleagues in the Legislature and I approved a major deal that will keep the North American International Auto Show in downtown Detroit by allowing for the modernization of Cobo Hall. The agreement comes as a result of bipartisan collaboration among the House, the Senate, the Governor and local leaders in Southeast Michigan.
The deal will provide for a 30-year lease to a regional authority made up of representatives from Detroit and Wayne, Oakland and Macomb counties, as well as a representative appointed by the Governor. The lease agreement requires the authority to renovate, rehabilitate and expand the aging facility.
This deal is great news for Detroit and our workers who depend on Cobo Hall. The modernization plan not only ensures that the Auto Show will remain in the Motor City, it will help jumpstart Detroit's recovery and boost Michigan's economy. Here are some of the key elements of the plan:
- Cobo Hall is not being sold, but rather leased to the authority for 30 years.
- The authority will automatically assume operational control of roof parking at Cobo Hall, with an option to operate the adjacent parking ramp.
- Beyond these two facilities, the authority does not have operational privileges to any additional downtown parking.
- Based on estimates from the city, $15 million in savings could be realized.
- The authority's lease will not impair city bonds used to finance parking structures.
- The authority will make its best effort to select bidders and workers from within Wayne, Oakland and Macomb counties.
- A citizen's advisory council will be created to provide public input and advise the authority on the impact of redevelopment and management of Cobo Hall on Detroit and its surrounding counties.
- Detroit will be able to enter into an agreement with the authority prior to the lease to make up to $3 million in certain capital improvements, which the authority will reimburse.
- Detroit's City Council has until Aug. 1 to reject the deal.
- The Mayor of Detroit has veto power over the council's decision.
- If the proposal is rejected, the authority is dissolved and a "Plan B" option would allow certain funds to be used for a facility in Oakland County.