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Senate bills make push for Cobo expansion: Rock Financial money included

Wed. May 27, 2009; Posted: 08:17 AM
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LANSING, May 27, 2009 (Detroit Free Press - McClatchy-Tribune Information Services via COMTEX) -- RCCK | Quote | Chart | News | PowerRating -- As negotiations continued for a regional plan to expand Cobo Center, a Senate committee voted Tuesday to provide money for Oakland County's Rock Financial Showplace expansion with up to $135 million if a Cobo deal isn't completed by July 1.

The Senate Commerce and Tourism Committee sent four bills to the full Senate, hoping to exert pressure on officials from Detroit and Wayne and Oakland counties to reach an agreement to enlarge Cobo and keep the North American International Auto Show.

"I think it's important the auto show stays in Detroit, but it's also important to keep the auto show in southeast Michigan," said committee chairman Sen. Jason Allen, R-Traverse City.

Operators of the auto show told the committee that the state and local officials must agree to a larger convention center quickly or risk losing to Chicago or Los Angeles Cobo's signature annual event, which brings an estimated $500 million into the local economy.

The package of bills would allow a regional authority to run a renovated Cobo Center, which could use up to $299 million to be paid from a tax on hotels in Wayne, Oakland and Macomb counties.

The regional authority would be dissolved if a regional authority transfer is rejected by the Detroit City Council. Oakland County would be authorized to use the hotel and liquor tax revenues that now go to Cobo to expand the Rock Financial Showplace to house the annual auto show.

In another development, Gov. Jennifer Granholm and Detroit Mayor Dave Bing held their first formal meeting in Detroit on Tuesday, an unpublicized afternoon session in which the two leaders and top staff discussed Cobo, the city's finances and other issues, their offices announced late in the day.

Granholm and Bing, sworn in as mayor earlier this month, put out a joint statement about the meeting but did not announce any specifics about the talks. Both said success of the city is key to economic progress in the region and state.

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