The City of Detroit, founded in 1701, is one of the nation's largest cities, and the center of one of the nation's largest metropolitan areas. The City of Detroit sought the review of its existing Renaissance Zones, which were originally designated by the state in 1996 and then expanded with the assistance of our firm in 2000. The city again retained Anderson Economic Group to aid in the review, revise the criteria, examine opportunities and costs, and recommend action by the city. A review committee including our project team, the city's planning and development department, the Detroit Economic Growth Corporation, and the city assessor's office recommended that the city not extend their existing zones at the time, given the results of our cost/benefit analysis and statutory review.
The city requested our review of a new federal law establishing a “Renewal Community” economic incentive program. Our analysis revealed the city would be a candidate for such a designation, and we recommended that the city file an application with HUD.
Anderson Economic Group advised the City of Detroit Planning and Development Department during the Renewal Community application process, outlining an appropriate process, identifying specific tax benefits to employers and investors, preparing documents and graphics summarizing economic conditions, working with State economic development and housing officials to confirm a course of action, and analyzing census statistics to define the best qualified application area. Our project team, with the City of Detroit, produced and delivered to HUD the entire application packet within 15 business days.
HUD’s review process followed a competitive procedure outlined in the Code of Federal Regulations, under a federal law that limited designations to the 40 most qualified. The designation was awarded to the city on January 18, 2002, making it eligible for $17 billion in development and tax incentives.
Wolverine Power Cooperative, City of Rogers City, Rogers Township, and Presque Isle County Economic Development Commission retained Anderson Economic Group (AEG) to provide an independent study…
On December 11, 2008 the U.S. Department of Energy (DoE) announced that Michigan State University was awarded a $55 million grant to build a Facility for Rare Isotope Beams (FRIB). MSU’s most notable competition for the facility was the Argonne National Laboratory, located near Chicago, Illinois.
Patrick L. Anderson and Ilhan K. Geckil
A predictive model of voter behavior based on economic conditions.
Edited by Scott Watkins and Patrick L. Anderson
The State Economic Handbook is an annual reference book profiling the economy, demography, political environment, and business climates for each of the 50 states.
The University Research Corridor (URC) is an alliance of Michigan’s three largest academic institutions: Michigan State University, the University of Michigan, and Wayne State University. In 2007 the URC universities asked Anderson Economic Group to undertake the first comprehensive study that benchmarks the economic impact of the URC’s activities on Michigan’s economy. This 2008 report is the second in a series of annual reports. While many benchmarks will likely not show large changes from year to year, over time these reports will reveal trends.
The URC had 135,816 students enrolled in the fall of 2007. This is an increase of 5.8% from the fall of 2001, and 1.9% higher than 2006. The students at the URC universities are drawn from throughout Michigan and around the world. Students from Michigan accounted for 77% of total enrollment in the fall of 2007, while 14% came from elsewhere in the U.S. and the remaining 9% came from other countries or territories. The URC has students from every county in Michigan, every state, and more than 150 countries.
To understand the burden taxes place on businesses in each state, it is important to look beyond the amount of tax revenue governments collect and instead analyze how taxes paid by businesses compare to income available to pay the tax. The best measure of tax burden is taxes paid as share of profits, as this measure directly compares taxes paid to business income available to pay the tax.
A preliminary report released in May by Anderson Economic Group found that Michigan’s University Research Corridor (URC), an alliance of Michigan State University, the University of Michigan, and Wayne State University, makes significant contributions to the state’s economy.
In its report, AEG found that the URC spent $6.5 billion on operations in fiscal year 2006. This figure—$6.5 billion–is about 2% of all economic activity in Michigan, as measured by Michigan’s gross state product. Most operational spending went towards teaching, research, and University of Michigan’s Hospital.
Furthermore, AEG estimated that currently over 617,000 alumni of a URC institution live in Michigan. There is at least one URC alumni living in every Michigan county. URC alumni living in Michigan earned an estimated $24.3 billion in 2006, making up 13% of all wage and salary income in Michigan.
The AEG report also compared how research and tech transfer activities at Michigan’s URC compare with other well-known university clusters in Massachusetts, North Carolina, and Pennsylvania. Peer university clusters include Harvard, MIT, and Tufts in Massachusetts; Duke, University of North Carolina, and North Carolina State in North Carolina; and Penn State, Carnegie Mellon, and University of Pittsburgh in Pennsylvania.
Tax Burden and Stimulus Payments