Duh.
GRAND RAPIDS -- Did GOP state legislators and gubernatorial candidate Dick DeVos nearly shoot themselves in the feet in their campaign to repeal the state's Single Business Tax?
Grand Rapids Mayor George Heartwell and real-estate developer Sam Cummings think so. So does the lawyer who set up millions in tax credits for DeVos-connected projects such as the Michigan Hill Medical Towers and Alticor Inc.'s new J.W. Marriott Hotel.
While pro-business interests want to repeal the so-called SBT, developers have taken advantage of a state program that gives them an SBT credit worth up to 10 percent of an industrial or urban "brownfield" redevelopment project.
So if the much-criticized tax is eliminated, why would there be a need for a credit?
Developers and city officials say the credit is a vital tool to get brownfield projects off the ground. If the credit is eliminated, they say some other incentive will have to be created.
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In Grand Rapids, the tax credits have been used to spur $600 million worth of construction projects, according to city officials. Since 1997, those 52 projects have created 5,000 new jobs.
In the zeal to yell "tax cuts!" and find something that would stick it to Granholm, Republicans weren't thinking of the consequences of their actions. Again.
Yet, Heartwell said West Michigan legislators were surprised when he informed them their votes to repeal the SBT could threaten some of the city's biggest job-creation projects.
"That was simply something that was not on their radar screen," he said.
As chairman of a state group that promotes brownfield redevelopment, Heartwell added: "I have to take some responsibility for that."
George, I don't think it's your responsibility to watch the legislature. They should know these things because it's their job to know these things. Besides, chances are they would have plowed ahead anyway. You see, Big Republican Sugar Daddy and his merry band of sycophants needed an issue to wail about because, let's face it, they are a party devoid of ideas and innovation- all they can do is say "tax cuts".
Dick, as usual, doesn't have any answer for the problem.
Although repealing SBT is part of DeVos' campaign platform, the candidate believes the state should honor the credits offered to developers, said John Truscott, DeVos' spokesman.
DeVos "is aware of the issue," Truscott said.
While DeVos wants any replacement to honor SBT credits already issued, he will not commit to credits for future projects.
The credits are vital to the bottom line of most brownfield projects, said John Byl, a Grand Rapids lawyer who has prepared dozens of SBT tax credits, including those for Michigan Hill and Alticor hotel projects.
"In many cases, it's made the difference between a project happening and not happening," he said.
Dick's family has already cashed in, why should he care about anyone else?
For DeVos' family and business interests, the tax credits have been worth millions.
The $120 million Michigan Hill project stands to reap $9 million worth of SBT tax credits. The project is being developed by a partnership including RDV Corp., a real-estate firm owned by DeVos' family.
The $60 million J.W. Marriott Hotel stands to reap $5.9 million in SBT tax credits. It is being developed by Alticor, the Ada-based direct sales company DeVos once headed.
The party of "fiscal responsibility" strikes again.