The news: Michigan's budget outlook is not as bad as was thought — thanks to federal pandemic relief aid, higher consumer spending and tax payments than expected, and a quicker recovery by the manufacturing and auto industries, state officials said last week. In May, Gov. Gretchen Whitmer's administration and legislative economists projected a combined $6.3 billion shortfall in the state's two main funds over this fiscal year and next. They revised that hole downward, to $3.4 billion, in a revenue-estimating meeting Monday.
Why it matters: Though the budget shortfall is still massive, special factors not typical of a recession have made it more manageable than was previously feared. Read more
The news: An investment group planning a $50.3 million redevelopment of the Park Avenue House downtown has received a state brownfield incentive totaling $2.52 million for the project. Mario Kiezi, managing member of the Downtown Hospitality Detroit LLC investment group along with MHS Group founder Mike Abdulnoor and L.A. Insurance founder Anthony Yousif, said permitting for the project to turn the former Park Avenue House at 2305 Park Ave. into a 172-room Hilton-branded Tapestry hotel is expected in the late fall. Construction is expected to be complete in 2023.
Why it matters: The plan progressing is a sign that the hotel business is still moving forward in Detroit despite a sharp decline in guests since the coronavirus pandemic began. Read more
The news: Detroit could soon be home to 300 new jobs in the auto insurance industry as a Chicago-based carrier seeks to expand its Midwest footprint. The board of the Michigan Strategic Fund on Tuesday awarded Clearcover Inc. a $3.5 million Michigan Business Development Program grant and a $400,000 Jobs Ready Michigan Program grant. The company plans to invest up to $5 million and create up to 303 jobs in Detroit.
Why it matters: The plan adds some diversification to metro Detroit's automotive- and mortgage-heavy economic picture. Read more
The news: The federal government can be sued for negligence in the Flint water crisis, a judge said Wednesday, citing the failure of regulators to act in a timely manner as good Samaritans and blow the whistle on lead in the water supply. The ruling was made by U.S. District Judge Judith Levy.
Why it matters: The decision came days after the state of Michigan said it's willing to pay $600 million to settle a raft of lawsuits by Flint residents over disastrous decisions by Gov. Rick Snyder's administration. Read more
The news: Auburn Hills-based auto supplier BorgWarner Inc. misled investors about future liabilities for asbestos lawsuits, according to federal regulators, and will pay a $950,000 fine to settle an investigation.
Why it matters: Asbestos, which can cause certain kinds of cancer, has been a decadeslong issue for manufacturers who use the heat-resistant material in their products. BorgWarner divested its asbestos liabilities in a 2019 deal with Enstar Holdings LLC, a company that specializes in managing liabilities and related insurance claims. Read more
"need" - Google News
August 29, 2020 at 01:19AM
https://ift.tt/3jrt2We
Need to know: The week in review, with an eye on what's next - Crain's Detroit Business
"need" - Google News
https://ift.tt/3c23wne
https://ift.tt/2YsHiXz
Bagikan Berita Ini
0 Response to "Need to know: The week in review, with an eye on what's next - Crain's Detroit Business"
Post a Comment