State Representative Steve Tobocman (D- Detroit) has introduced legislation called the Michigan Border Protection and Development Authority Act. One of the act's primary goals is the expansion of the local economy as it relates to trade and logistics. Tobocman explains, "We need to focus on strategies that build jobs, and this [segment of the economy] is an opportunity that already exists."
Tobocman believes trade is "the untold story of Michigan's economy. The Detroit River International Crossing study showed that one in four Michigan jobs are directly or indirectly related to international commerce. We've been oblivious to the potential that exists."
Tobocman has done extensive research on Michigan's position in global trade. He has discovered that the state trades twice as much with Canada ($160 billion per year) as does the entire United States with Japan and that Michigan is Mexico's third-largest trading partner, after California and Texas. He says, "We're doing a lot of trade, but we don't have a regional or state-wide strategy to build on that. We need a strategy to grow these businesses directly related to this trade."
The proposed authority would be comprised of 15 members: three from industry and commerce, three residents who live within one-mile of the international crossing (likely, one each from Detroit, Port Huron and Sault Ste. Marie) and one representative from five state agencies. The body would act as "a policy and advocacy voice," Tobocman explains, "going after new businesses, like freight expediters and assembly jobs."
He cites the New Mexico Border Authority as the only current example of an authority that works to boost its state's economy.
The act proposes to "give the authority the power to own property, float bonds, do the development work needed to attract these businesses," explains Tobocman. He also envisions the creation of a "border tax credit" that would provide incentives much like a Renaissance Zone does.
The other aspect of the proposed legislation—the regulatory role of the authority—is more controversial, Tobocman acknowledges. It calls for border crossings to apply for an annual operating permit contingent on demonstrating how well border traffic integrates with street traffic, structural soundness, fiscal stability and plans for environmental oversight, maintenance and homeland security.
The authority would also have the ability to regulate tolls, which Tobocman finds imperative because Detroit's two border crossings are the most expensive in the nation. "We need to lower the tolls, lower the cost of doing business in this region."
The legislation has been referred to the House's New Economy and Quality of Life Committee, where it will be researched before a recommendation is made to the entire House.
Source: State Representative Steve Tobocman
Writer: Kelli B. Kavanaugh
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