Detroit Embarks On Projects To Boost City's Image

<I>Detroit</I> - Despite decades serving as the symbolic epitome of decaying and dangerous urban America, Motor City is on the rebound as officials plan entertainment projects to reel in visitors and finance future hotel construction.

For business travelers, that means more lodging space (but higher taxes), considerably more entertainment diversions and a better airport to navigate.

A major source for hotel building revenue is gaming. Last November, voters approved downtown casino gambling, and the first roulette wheels may be spinning and slot machines whirring before the end of this year. Initial plans call for three casinos, which local officials hope will stimulate a serious hotel room revival.

"We expect the presence of casinos to spur hotel construction or expansion," said CVB spokeswoman Renee Montforton. "That might mean our present stock of 2,000 downtown rooms could double within several years, which would enable Detroit to host conventions larger than the midsize events the city presently handles."

Also in the fall, voters approved construction of two professional sports stadiums that will sit side by side on Woodward Avenue: The Detroit Tigers' new home is scheduled to debut in 1999, and new digs for the NFL Detroit Lions will follow a year or two later. Both venues will be directly across from Detroit's already thriving theater district, which, Monforton claims, "after New York, offers the largest number of live seats of any U.S. city." That kudo was realized last fall fall when the 2,700-seat Detroit Opera House-a conversion of a former 1920s movie palace-opened its doors in April 1996.

For now, business travelers will help pay for these facilities through higher taxes on hotel rooms-up from 14 to 15 percent-and rental cars-up from 6 to 8 percent-which would provide some $80 million of stadium funding.

Also on tap, Olympia Development is scheduled to build a $10 million entertainment project called Columbia Street, featuring a Hard Rock Cafe, microbreweries and several theme restaurants.

Other Detroit tidings include last October's groundbreaking of a new 74-gate, $1.6 billion expansion of Detroit's Metropolitan Airport, new parking facilities and a fourth parallel runway (BTN, Oct. 14, 1996).

Reasons cited for Detroit's revitalization include strong ties between Mayor Dennis Archer and the White House, effective use of federal funds made available when Detroit was dubbed one of six urban empowerment zones and heavy local corporate involvement. Most notable was General Motors' $77 million purchase of Renaissance Center, where GM will establish its new corporate headquarters.