Detroit City Council rejects plans to expand Cobo Center

Last month’s Detroit Auto Show saw a number of carmakers pull out for the first time, with many citing a lack of suitable facilities and display space at the event’s venue, Detroit’s Cobo Center, as one of the main reasons for the exodus. To overcome this problem approval was given by Michigan’s state government for a $288 million expansion plan for the Cobo Center, which would add up to 166,000 square feet of exhibition space.

In the latest twist, Detroit City Council has voted 5-3 against the transfer of Cobo Center to a regional authority, putting a halt to the proposed $288 million expansion and renovation deal. The argument centers on fears that an important city facility is being fleeced to suburban authorities. Council members opposing the deal have said the $20 million the city would receive under the deal isn't a fair price for the center, reports Automotive News.

The (NAIAS) is vital for the Detroit economy, pumping an estimated $600 million into it each year, and the expansion plan was a significant incentive for carmakers to show in Detroit.

To pay for the expansion, Michigan lawmakers were planning to establish a seven-member authority with the power to sell bonds. Revenue would have been collected from hotel-motel, liquor and cigarette taxes to help cover operating expenses. In addition to this, the state is to provide $16 million a year to help further cover costs.