Michigan’s False “Comeback” Offer Taxpayer Funded “Bribes” to Businesses

So you think we have “principled” Republican control in Lansing? Think again! Michigan ranks 38 out of 50 states in per-capita income, 42nd in business climate. Michigan had the fifth highest per-capita income in America in 1953. So what has our politicians done to reverse this trend? They do what any crony capitalist would do they offer “bribes” to these companies with taxpayer dollars to stay in the state.

Kurt Darrow, CEO of La-Z-Boy said La-Z-Boy never found a reason compelling enough to uproot its employees and leave Michigan but if Michigan through the “failed” MEDC didn’t pony up the dough to help build it’s new headquarters they would move elsewhere! Ohio was actively pursuing them to relocate to their state with subsidies.

Dan Swallow, director of economic and community development for Monroe, said the two grants and the tax abatement were paramount to keeping La-Z-Boy fully committing to staying in Monroe. The company had stated it would remain in Monroe if everything could be worked out, but if it couldn’t, it might be forced to go to another county or state.
http://www.toledoblade.com/Retail/2012/12/21/La-Z-Boy-a-big-step-closer-to-new-headquarters-Michigan-OKs-3-7M-aid-for-50M-project.html

The company’s third-quarter profit soars! Michigan-based La-Z-Boy said Tuesday its operating income was up 37 percent in the fiscal 2013 third quarter, to $23.3 million, compared with $17 million in the same quarter of 2012. The company ended the quarter with $112 million in cash and equivalents.
http://www.prnewswire.com/news-releases/la-z-boy-reports-fiscal-2013-third-quarter-results-191882971.html

Note: Republican Senate Majority leader Randy Richardville is a former employee of La-Z-Boy
http://en.wikipedia.org/wiki/Randy_Richardville

(Continue reading below the picture)Bribes

The Snyder re-election campaign starts with 6 stops around Michigan. Snyder’s campaign says the Monday stops are at James Group International in Detroit, Two Men and a Truck in Lansing and at Downtown Market in Grand Rapids. Two Men and a Truck recently received taxpayer funded subsidies to expand it’s business through the “failed” MEDC to expand its corporate headquarters in Lansing.

Because of the “failed” MEDC and it’s non-transparent policies there’s no telling how much of “our” tax dollars are being funneled to these businesses here in Michigan. One thing is certain and that’s the fact that “we taxpayers” are being taken for one hell of ride in this “scam”.

The cronyism and theft of “our” tax dollars continues with the “Friends and Family Program” along with the Republicans “Buddy Fund” administered by our elected officials in Lansing. Snyder recently appointed John Rakolta, CEO of Detroit-based construction firm Walbridge and partner of the “failed” Raleigh Film Studio in Pontiac to the board of the MEDC. Oh and by the way we taxpayers are now on the hook for that studios failed bond payments. Can you say “conflict” of interest?

Michigan Republican Party chairman Bobby Schostak is also receiving not just federal subsidies for his new skyscraper high raise office building in Detroit but is seeking state subsidies as well through the MEDC. If you remember Mr. Schostak got his legislative buddies in Lansing to pass “a mortgage bill for one” as to “bailout” his brother who he is partners with in Schostak Brothers & Company, Inc. that saved them from paying a $2.4 million judgement of a foreclosure in their Cherry Land Mall in Traverse City Michigan.
http://www.freep.com/article/20120331/NEWS15/203310415/

Note: Meridian Health Plan is expected to be the sole office tenant in the taxpayer funded Schostak office building in Detroit. Governor Snyder appointed Meridian to administer the new Medicaid (SnyderCaid) expansion/ObamaCare.
http://www.crainsdetroit.com/article/20130918/NEWS/130919855/meridian-health-plan-expected-to-move-into-16-story-detroit-building

When will the citizens and voters of Michigan wake up to the fact that it’s not just the Democrats that is the problem it’s this kind of Republican control as well. While I am appalled at the liberal progressive socialist policies of the Democrats I am equally appalled at the these same types of policies that we are seeing from the so-called Republicans we now have in Lansing.

Other Sources:
http://www.freep.com/article/20120401/COL04/204010479/Brian-Dickerson-In-Lansing-a-mortgage-bill-tailored-for-one

http://www.freep.com/article/20131030/COL06/310300170/Tom-Walsh-La-Z-Boy-Meijer-John-Engler

http://www.michiganbusiness.org/press-releases/governor-joins-in-celebration-of-two-men-and-a-truck-expansion/

http://www.detroitnews.com/article/20130220/BIZ/302200331

https://www.mackinac.org/features/search/?text=film&site=MCC&count=100

http://michiganfilmcreditsecrets.blogspot.com/

Public Employee Pension Systems Raided To Pay Film Studio Bills – Michigan teachers and state employee systems paid $1.68 million so far for Pontiac studio
http://www.michigancapitolconfidential.com/18384

Michigan-Subsidized Film Studio Fails; State Pension Fund Had to Guarantee Missed Loan Payments
http://taxfoundation.org/blog/michigan-subsidized-film-studio-fails-state-pension-fund-had-guaranteed-loan

Advertisements

, , , , , , , , , , , , , , , , , , , , ,

  1. #1 by Andrea Blachford on February 3, 2014 - 1:19 pm

    Awesome reporting, Bain Report. Political cronyism destroys liberty and freedom.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: