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In the bidding war for General Motors Corp., Detroit looks like the winner.
With the promise of a 12- to 15-year tax-free renaissance zone, Wayne County Executive Robert Ficano and Detroit Mayor Dave Bing likely have trumped Warren Mayor Jim Fouts, who offered GM 30 years tax-free at its technical center in Warren.
But take a look at the big picture, and the move--announced Friday at the Detroit Regional Chamber's annual Mackinac Policy Conference--has deeper implications for the region.
"Cannibalization is a zero sum game," said Ric Geyer, principal in Detroit-based strategic consultancy 4731 Consulting. "Our regional brand needs to rely on the strengths of our assets and opportunities that exist here. We need to be careful that we do not base our brand on the belief that we're willing to cannibalize our own companies to survive."
In a renaissance zone, business, income and real and personal property taxes and, in Detroit, the utility users' tax, are waived.
One tower not owned by GM is occupied by EDS and already has a renaissance zone. If the Michigan Economic Development Corp. approves the request, which Ficano said the county plans to make next week, the four other towers and the Detroit Marriott Renaissance Center would also...