Posted on 10/06/2010 9:28:28 AM PDT by MichCapCon
Governors often use their official State of the State addresses to do a little bragging, and Gov. Jennifer Granholm's February, 2010 outing was no exception. Unfortunately, what was intended as an "economic development" victory lap - citing companies expected to create jobs thanks to selective tax breaks and subsidies provided by her administration - has become a series of embarrassing blunders including Hangar42 studios (Grand Rapids), GlobalWatt, Inc. (Saginaw), and Unity Studios (Allen Park).
In the first of these, the day after the governor's speech, Hangar42 officially announced the opening of its studio, which allegedly involved an investment of at least $40 million by the promoters. There was only one problem: Unlike the $10 million subsidy taxpayers were expected to kick in, the rest of the "investment" wasn't real. Mackinac Center research led to an Attorney General investigation which ultimately resulted in a felony fraud charge brought against the purported buyer of the "$40 million" studio, Joseph Peters.
The governor also spoke glowingly that wintry February night about GlobalWatt's move from Silicon Valley to Saginaw Valley. Yet, last week the findings of a Mackinac Center investigation were released calling into question the veracity of claims made by the company on its applications for special state tax breaks and subsidies...
(Excerpt) Read more at michigancapitolconfidential.com ...
MI ping
Thanks, MCC. Hope this doesn't post twice. That would be...too bad.
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