Search This Blog

Saturday, July 25, 2026

Detroit developer cites tax hikes as reason big blue cities like NYC are struggling

 America’s once-iconic industrial hub is primed for an economic comeback as major metropolitan areas continue to bleed residents to lower-tax states, a prominent Michigan developer told Fox News Digital.

Rodney Lockwood, Board Chairman of the Mackinac Center for Public Policy, warned that high-tax cities like New York City, Los Angeles, and San Francisco are facing serious structural trouble.

“I think we have to look at both sides: what is not working, and then what will work,” Lockwood said.

“Right now, socialists are on the march, and Zohran Mamdani in New York is perhaps the best example of that. They’re winning races, and their answer is always the same: more taxes and more free stuff.”

Lockwood’s comments come as progressive-led cities nationwide—including New York, Chicago, Boston, and Los Angeles—struggle with taxpayer flight driven by high state and local taxes, lingering crime concerns, and an astronomical cost of living.

“Right now, socialists are on the march, and Zohran Mamdani in New York is perhaps the best example of that,” Rodney Lockwood said, in part.vichie81 – stock.adobe.com
Los Angeles is one progressive-led US city struggling with taxpayer flight driven by high state and local taxes, lingering crime concerns, and an astronomical cost of living.frank peters – stock.adobe.com

A new study by the National Taxpayers Union Foundation (NTUF), released April 7, 2026, confirmed that taxpayers are fleeing high-tax environments for more fiscally friendly states. 

While Texas and Florida remain the top targets, states like North Carolina, South Carolina and Tennessee are also seeing record gains.

Notably, the NTUF “Migration in Minutes” metric found that Texas surpassed Florida in 2022 as the state gaining a new taxpayer most frequently — one every four minutes and 40 seconds.

“I sort of see it as a case of suicidal envy,” Lockwood explained.

“Belle Isle would be on the opposite side of that equation. We would have a taxation system aligned with the best of human characteristics. If you want people to work for the income and dignity of it, don’t tax work—so there’d be no local income tax. If we want people to come, invest, and produce the tools of productivity, don’t tax investments.”

Lockwood is championing a proposal to transform Detroit’s Belle Isle into a self-governing “Freedom City” aimed at setting a new blueprint for urban revival nationwide.

First developed as a public park in the late 19th century, Belle Isle spans 982 acres in the Detroit River—making it roughly 140 acres larger than New York City’s Central Park.

While the city owns the land, it is currently leased to the State of Michigan and operated as a state park under a 30-year agreement signed in 2013.

Visitors walk along a path on Belle Isle as the Detroit skyline is seen in the background during a hot day in Detroit on July 14, 2026.USA TODAY Network via Reuters Connect

Under Lockwood’s proposal, private investors would purchase or lease the island from Detroit to build a mixed-use residential, retail, and commercial district.

The goal is to generate massive economic activity and private-sector jobs for a city recovering from decades of population loss.

Lockwood pointed to recent polling by Michigan pollster Steve Mitchell indicating strong interest in bold economic solutions, with 68 percent of likely Detroit voters and 51 percent of voters statewide approving the concept of special economic freedom zones.

Detroit’s economic trajectory highlights the stark reality of post-war urban decline, Lockwood noted.

“We’re trying to restore it back to being the world-class city it once was,” Lockwood said. “Back in 1950, it was the world’s richest city. Today, it ranks among the poorest in the United States. We’ve gone from 1.85 million people down to around 600,000.”

A woman paddle boards in the 90 degree morning heat at Belle Isle on July 1, 2026.USA TODAY Network via Reuters Connect

Lockwood believes the island represents a vastly underutilized asset ideal for conversion into a tax-friendly special economic zone designed to draw global capital.

His vision projects a permanent population of 50,000 residents across 20,000 households—all built without relying on taxpayer dollars.

The “Freedom City” concept, supported by free-market advocates at the Mackinac Center, hinges on courting private venture capital through light-touch regulation and a growth-oriented tax framework.

Lockwood pointed to long-standing socioeconomic challenges across the Motor City as evidence that conventional municipal governance has failed.

“Detroit is stuck,” Lockwood asserted. “Its population has struggled to rebound, and it faces a looming fiscal issue. COVID-era federal relief funds sustained municipal budgets for a few years, but that money is exhausted.”

Lockwood argues that transforming Belle Isle could provide the spark needed to revitalize the entire region.

“What Belle Isle would do with 50,000 residents and $50 billion in private investment is attract an entrepreneurial class,” Lockwood said.

“These are business leaders looking to take proven concepts and expand into the heart of the world’s largest economy.”

https://nypost.com/2026/07/25/real-estate/detroit-developer-cites-tax-hikes-as-reason-big-blue-cities-like-nyc-are-struggling-socialists-are-on-the-march/

Thursday, July 23, 2026

SF's troubled homeless housing project stripped of millions after scandal-plagued run

 San Francisco’s plans to keep its residents in homes and off the streets keep running into the same cycle of mismanagement and other issues plaguing homeless services nonprofits.

The latest in the saga: The city’s homelessness department recently said it won’t renew $39 million worth of contracts with HomeRise, which serves more than 1500 residents across 17 buildings as part of the city-funded “supportive housing” program.

Aerial view of Mission Bay South Block 9 and the San Francisco skyline.
HomeRise, which offers supportive housing, won’t see renewed contracts.Homerise

The decision comes after reporting by the San Francisco Chronicle that revealed severe understaffing, alleged sexual abuse of residents that was ignored for two years, and an incident where a man died and decomposed in his room for days.

There have also been reports of tenant violence, vermin infestations, broken elevators and a lack of heating and hot water. A 2024 city audit alleged financial mismanagement.

“We want to make very clear to HomeRise as well as other providers that this level of failure is not acceptable,” department spokesperson Emily Cohen told the Chronicle.

“Public dollars cannot be used to support projects not achieving their outcomes,” Cohen added.

HomeRise, which did not return a request for comment to the Chronicle, still has contracts for supportive services worth $22.5 million. The homeless department promised to “closely monitor” those contracts which begin expiring next summer.

The department also said it would begin looking for a replacement housing provider before the contracts finish at the end of the year.

A dog sits outside a teal tent in a Berkeley homeless encampment.
San Francisco is attempting to solve its homelessness issue through nonprofits.Jason Henry

The nonprofit’s troubles are not over. The city attorney’s office in March opened an investigation into HomeRise, and its chief executive soon resigned months later.

With the contracts not being renewed, layoffs are also now imminent for the organization, the Chronicle reported.

The city has a history of cutting ties with homeless nonprofits after scandals emerged.

Last year, the city opted to not renew agreements with the nonprofit Providence Foundation after a city investigation revealed fraud, nepotism and wage theft.

In 2023, San Francisco removed ties with United Council of Human Services, whose CEO was charged with nine felonies related to her management of the organization.

https://nypost.com/2026/07/22/us-news/san-francisco-cuts-off-homelessness-nonprofit-homerise/

Wednesday, July 22, 2026

Mamdani faces lawsuit over ‘unlawful’ NYC rent freeze

 A coalition of New York City landlords launched a bid Wednesday to smack down Mayor Zohran Mamdani’s rent freeze — calling it a rigged “sham” that relied on “manipulated data” in a new lawsuit.

The group sued the city’s Rent Guidelines Board in Staten Island Supreme Court, challenging as “unlawful” the panel’s June 25 decision to freeze rents on 1 million stabilized units for two years.

They claim the nine-member board skewed its own data, ignoring a slew of economic conditions to justify a “predetermined,” “irrational result” and deliver a political victory for Mamdani — who famously campaigned on a promise to “freeze the rent.”

A coalition of NYC landlords who own over 100 rent stabilized units say Mayor Zohran Mamdani’s rent freeze was a rigged “sham,” according to a new lawsuit challenging the freeze.OLGA FEDOROVA/EPA/Shutterstock

“The [Rent Guidelines Board]’s June 25 determination was the result of a corrupted and compromised process: a statutory mandate flouted and disregarded, an independent agency held captive, and an outcome wired and predetermined from inception,” the suit claims. 

Mamdani, according to the filing, accomplished this by stacking the independent board with loyalist tenant activists — and spent more than $5 million in taxpayer dollars via his controversial Office of Mass Engagement with a “goal of promoting the freeze outcome, not facilitating neutral civic engagement.”

Mamdani — who appointed six of the current RGB members — has argued the board was independent.

The landlords, who together own over 100 rent-stabilized units, ask a state judge to block the freeze before it can take effect in October.

“If allowed to stand, Order #58 will impose severe, irreparable harm” on the plaintiffs “and similarly-situated landlords (who stand to lose their properties), while setting a dangerous precedent that the RGB’s independence can be cast aside by Mayoral fiat,” the suit states.

One landlord who is part of the suit, Violet Zharku, said the amount of money she makes from renting her 50 units will no longer keep up with the costs of running and repairing the apartments, forcing her family to look for other income streams to keep the three fully stabilized buildings in minimum shape.

“Freezing the rent does not freeze my mortgage, property taxes, insurance, water and sewer bills, utility costs or the cost of repairs,” she said.

Zharku, whose family saved for years working as superintendents, purchased the three buildings over the past few years, and has invested over $300,000 in capital improvements. 

But rising expenses – most notably skyrocketing insurance costs — have driven nearly all of the buildings into the red, and one of them, in Astoria, is now listed for sale, the suit states.

The suit also demands all communications between former tenant activist Cea Weaver’s office and the mayor regarding the RGB vote.Lone Pine Press for NY Post

“We are losing $172,000 annually,” Zharku previously told The Post, citing skyrocketing expenses.

“We can no longer invest in capital improvements or apartment renovations beyond critical repairs and we have no choice but to sell the buildings that we have spent generations maintaining,” she said.

Zharku and two other landlords involved in the suit also said that rental non-payment was a major issue, with over $70,000 owed across her portfolio.

One property owner claimed $90,000 in unpaid rent at a Bronx building.Google Maps

One property owner claimed $90,000 in unpaid rent at a Bronx building. Another landlord — whose family has owned and self-managed their Queens building since 1974 — was owed $70,000 in rent, with over $25,000 owed by a single tenant, according to the suit.

“The Board did not truly consider the consequences for buildings like these because the outcome was determined before the evidence was heard,” the suit states. 

The landlords also seek an expedited discovery request for all communications regarding the RGB vote between the mayor and several of his offices — including the OME and one headed by tenant activist Cea Weaver.

Another family was owed $70,000 in rent for their Queens building.Google Maps

“There is no actual basis for an across- the-board rent freeze here, and the Board’s decision must be overturned,” said attorney Randy Mastro, who represents the landlords and previously worked for then-Mayor Eric Adam’s administration.

“That is not the way government decisions by independent boards are supposed to be made,” he said, calling the suit “a check on the mayor’s abuse of power.” 

City Hall spokesperson Matt Rauschenbach said the RGB was “an independent body” and that the Mamdani administration was “confident that the Board evaluated all of the relevant data and considered the factors facing both tenants and landlords across New York City.” 

“The Law Department is prepared to defend the RGB’s decisions,” Rauschenbach added.

https://nypost.com/2026/07/22/us-news/mamdani-faces-lawsuit-over-unlawful-nyc-rent-freeze-as-landlords-rip-abuse-of-power/