Legislation watch
Mackinac Center for Public Policy
Capitol Building

2012 House Bill 5463: Subsidize new Red Wings Stadium (as amended; originally something else)

Public Act 396 of 2012

  1. Introduced by Rep. John Walsh (R) on March 8, 2012, to establish that Downtown Development Authorities are exempt from all property and state income taxes. Also, that the term of a DDA board member who is an elected or appointed public official may end when the person’s position as a public official ends. A later Senate substituted transformed this into an authorization for taxpayer subsidies for a particular developer's sports stadium project.
    • Referred to the House Tax Policy Committee on March 8, 2012.
      • Reported in the House on May 16, 2012, with the recommendation that the substitute (H-1) be adopted and that the bill then pass.
    • Substitute offered in the House on May 23, 2012. The substitute passed by voice vote in the House on May 23, 2012.
  2. Passed 106 to 2 in the House on May 24, 2012, to establish that Downtown Development Authorities are exempt from all property and state income taxes. Also, that the term of a DDA board member who is an elected or appointed public official may end when the person’s position as a public official ends.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the Senate on May 29, 2012.
    • Referred to the Senate Finance Committee on May 29, 2012.
      • Reported in the Senate on June 14, 2012, with the recommendation that the bill pass.
    • Referred to the Senate Government Operations Committee on September 27, 2012.
      • Reported in the Senate on December 5, 2012, with the recommendation that the substitute (S-2) be adopted and that the bill then pass.
    • Substitute offered in the Senate on December 5, 2012, to adopt a version of the bill that would allow the Detroit DDA to subsidize a new Detroit Red Wings stadium for developer Mike Ilitch, who owns the Red Wings. The substitute passed by voice vote in the Senate on December 5, 2012.
    • Amendment offered by Sen. Gretchen Whitmer (D) on December 5, 2012, to tie-bar the bill to Senate Bill 1015, meaning this bill cannot become law unless that one does also. SB 1015 would give all Michigan high school graduates up to five years of grants covering tuition in a state college or university, funded by repealing $1.8 billion worth of current state tax deductions, exemptions and credits (including many existing "corporate welfare" subsidies). The amendment failed 12 to 26 in the Senate on December 5, 2012.
      Who Voted "Yes" and Who Voted "No"

  4. Passed 27 to 11 in the Senate on December 5, 2012, to authorize using the Detroit "Downtown Development Authority" as the vehicle to deliver taxpayer subsidies for a new sports stadium complex owned by Detroit Red Wings owner Mike Ilitch. The DDA would pledge property tax revenues it "captures" from schools and other local governments to repay debt in incurs to provide the subsidies. The bill would also exempt DDAs from property and other taxes, and revise details of public officials' appointments to DDA boards.
    Who Voted "Yes" and Who Voted "No"

  5. Received in the House on December 5, 2012.
  6. Passed 58 to 49 in the House on December 13, 2012, to authorize using the Detroit "Downtown Development Authority" as the vehicle to deliver taxpayer subsidies for a new sports stadium complex owned by Detroit Red Wings owner Mike Ilitch. The DDA would pledge property tax revenues it "captures" from schools and other local governments to repay debt in incurs to provide the subsidies. The bill would also exempt DDAs from property and other taxes, and revise details of public officials' appointments to DDA boards.
    Who Voted "Yes" and Who Voted "No"

  7. Signed by Gov. Rick Snyder on December 19, 2012.

Comments

Re: 2012 House Bill 5463 (Subsidize new Red Wings Stadium)  by debymcw on December 7, 2012 

I hope all that voted to make our children pay for this new stadium got their kickbacks.  I am going to post this on Facebook.  How dare you give all this money to build a new stadium, if the Red Wings want a new stadium let the owner of the Red Wings build it. 


I also want to know who will own this stadium? 


 



Re: 2012 House Bill 5463 (Subsidize new Red Wings Stadium)  by Judy on December 7, 2012 
Senator Richardville asked and was granted unanimous consent to make a statement and moved that the statement be printed in the Journal.
The motion prevailed.
Senator Richardville’s statement is as follows:
House Bill No. 5463, which was sponsored by Representative John Walsh, passed out of the Government Operations Committee yesterday afternoon unanimously with bipartisan support. The Ilitch organization yesterday announced it is taking a step forward with the public sector to explore a partnership to support the development of a residential, retail, entertainment, and office district in downtown Detroit. This private investment is in addition to the more than $1.9 billion that the organization has already invested in the city of Detroit and the state of Michigan.
This bill is a $650 million public-private investment. It’s 8,300 construction jobs; it will have a $1 billion impact economically to the state of Michigan; and it allows for the support of this economic development and requires no new taxes.
Colleagues, I would like to request your support for House Bill No. 5463.

Re: 2012 House Bill 5463 (Subsidize new Red Wings Stadium)  by Judy on December 7, 2012 
Senator Whitmer, under her constitutional right of protest (Art. 4, Sec. 18), protested against the passage of House Bill No. 5463 and moved that the statement she made during the discussion of the bill be printed as her reasons for voting “no.”
The motion prevailed.
Senator Whitmer’s statement is as follows:
I voted for this bill in committee, but upon closer review, I concluded that my kids shouldn’t pay for a new stadium in Detroit for the hockey team. I am sick of the hypocrisy I see in this Capitol. I’m sick and tired of hearing about legislators who hate government but collect their salary every other Thursday, file for their SOCC check, and record their mileage. I’m sick and tired of looking out the window and seeing the Tea Party have a rally on my dime, on state property that we have to put the tents up for and make sure they’ve got heat, so that they can come in and lobby for a right-to-work bill that hasn’t even had a hearing and no public input. I thought they liked the Constitution, those Tea Partiers.
You know what else I’m sick of? The hypocrisy of the business community. The big business who says, “You know, it’s appalling when President Obama says something like ‘You didn’t build that; we all did,’” and then shows up the next week asking for $700 million to build a stadium and asking my kids’ school to pay for it—and every one of yours, all 83 counties. This money is coming out of all of our schools.
As Bill Ballenger said, it is pure greed by the business community that continues to push the things they are right now, and it makes me sick. I hear my colleagues say, “Oh, this is for Detroit, so we’re all in favor of Detroit now”—because one billionaire called you.
What happens when we try to keep the lights on? We couldn’t find votes in here for six months to keep the lights on in Detroit. Talk about priorities—$700 million of taxpayer money and a substantial hit to schools.
What we’re seeing here is that the Republicans are waging a relentless positive race to the bottom, and I, for one, want no part of it.

View pre-2013 Comments.
Your new comments should be made in the box below.