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The Detroit Free Press, represented by the Mackinac Center Legal Foundation, sued the Michigan >Department of Treasury in July to uphold a core principle: Michigan taxpayers deserve transparency in how their public funds are spent.
The lawsuit seeks financial reports tied to subsidies granted to Bedrock, a real estate company building developments in Detroit. Bedrock received a deal to collect hundreds of millions in subsidies for what the state calls “transformational brownfield plans.” This program diverts taxes meant for schools, roads and public services to developers, who are expected to create jobs and boost Michigan’s economy. But are these promises being met?
Detroit Free Press business reporter J.C. Reindl filed a Freedom of Information Act request for records showing whether Bedrock is delivering on job creation and economic growth, and how much public money it received. The treasury department denied the request, claiming the reports contain confidential taxpayer information. But these financial records, accountings, audit reports and other documents concern public funds, not individual private tax returns, and the Michigan Constitution mandates their disclosure under the open records law.
“The press has an important watchdog role and a responsibility to the public interest,” Reindl said in a Mackinac Center press release. “The records we seek are critical to understanding how taxpayer dollars were used for development projects receiving subsidies and should be a matter of public record.”
Without these public records, it’s impossible to assess the costs and weigh them against benefits. “With the Mackinac Center’s help,” Reindl added, “we can unlock some facts on what exactly Michigan taxpayers are rewarding under the program.”
While Detroit’s revitalization has brought luxury retailers and hotels to the city, taxpayers and the press deserve to know if these developments yield meaningful economic benefits or instead drain public resources.
The Mackinac Center is no stranger to holding the government accountable when it refuses to be transparent with the public.
Transparency is not optional — it’s the law. This lawsuit aims to ensure accountability and uphold the public’s right to know how hundreds of millions in public dollars are spent.
