News Story

Tax increment financing fuels Westland’s $12M park, expected for 2025

TIF money to supply more than half the funds; federal, state grants supply rest

The city of Westland hopes to finish a $12 million park and amphitheater project in 2025 — using funds drawn largely from tax increment financing.

The 3.9-acre park, to be known as Nankin Square, will sit between city hall and Westland Mall. It will feature open green space for performances and events, gardens and boardwalks, walking trails, an events plaza, and a multiuse play space that will include a sledding hill for the winter.

The added space is meant to revitalize Westland’s downtown area.

The funding breakdown is as follows: $8.5 million from the Westland Tax Increment Finance Authority, $2.5 million from a grant from Wayne County under the American Rescue Plan Act grant — a bill signed into law by President Joe Biden — $1 million from a state of Michigan grant, and $250k from another federal grant, according to city of Westland Communications Director Terry Packer.

The money could have been spent in other ways, James Hohman, fiscal policy director at the Mackinac Center for Public Policy, told CapCon in an email.

“Running property taxes through tax increment financing authorities doesn't stop them from being taxpayer dollars,” Hohman wrote. “They should be treated with the same level of scrutiny as others, and residents should know that the money being spent on this project could be spent on other city services or left with taxpayers.”

The project is making headway and will benefit Westland residents who can gather to create lasting memories, Council President Pro-Tem Melissa Sampey told CapCon in an email.

“By revitalizing the area next to a declining mall, this park will not only bring attention and foot traffic to our community but also contribute to local economic development,” Sampey wrote. “It will encourage residents to shop and dine locally, supporting small businesses, and enhancing community engagement. Considering we do not have a downtown area, I see this as somewhat of our anchor for future development.”

The city plans for residents to attend live events, eat from food trucks, and exercise on nature trails in the new park.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.

News Story

State gave company $1.4M to choose Michigan, after it had already chosen

German auto company started working on site months before public subsidy

Three months after an automotive company started construction on a factory in the Grand Rapids suburb of Wyoming, the state’s economic development agency granted it $1.4 million.

The Michigan Economic Development Corporation said the money helped the recipient choose Michigan. German company Benteler Automotive had, however, already bought the property for the $100 million plant, WGVU Public Media reported Sept. 4.

The development corporation said the money helped persuade the company to choose Michigan for the facility instead of another state, MLive reported Dec. 10. Benteler says it will create up 147 jobs at the site.

Three of Benteler’s six facilities in the United States are located in Michigan, according to a Dec. 4 MEDC press release.

The company, which will provide parts for electric vehicles, is rehabilitating the site of a former General Motors stamping plant. It started work Sept. 24, MLive reported.

A spokesman for the development corporation suggested the potential of the state subsidy factored into Benteler’s decision.

“Once a site has been selected, and potential state support has been discussed, it is not uncommon for companies to begin the process as quickly as they can to begin production as soon as possible,” Otie McKinley, media and communications manager at the MEDC, told Michigan Capitol Confidential in an email.

Companies deciding whether to invest can look at multiple sites throughout the process, McKinley said, and state support is often a key factor.

“As is typical when working to secure large, complex investment and expansion projects with companies, discussions with Benteler Automotive regarding project considerations began nearly two years prior to the (state) approval of incentives, when the company was beginning its site selection process,” said McKinley, adding that the company was also negotiating with other states for support.

Benteler did not respond to an email seeking comment.

Though state officials often claim that giving billions in taxpayer money aids job creation, a recent study from James Hohman, fiscal policy director at the Mackinac Center for Public Policy, says the efforts usually don’t succeed.

Only 11% of jobs the state said would be created thanks to corporate subsidies from 2000 to 2020 came to fruition, Hohman wrote.

The state has paid $4.6 billion since 2023 in corporate subsidies in the name of job creation.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.