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.