Whitmer should 'get the job done' on Highland Park's water debt, analysts say

At this point, Highland Park will probably better off if Detroit took it over.
Whitmer should 'get the job done' on Highland Park's water debt, analysts say

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The Wayne County community has asked Whitmer to declare a financial emergency and take it through an expedited Chapter 9 bankruptcy. Two analysts said the Democratic governor needs to move quickly to reach a settlement for the Black-majority city of 8,900 residents, with one saying bankruptcy is the best course.
"Let's face it, bankruptcy is the only option for Highland Park," said Adolph Mongo, a longtime Detroit political consultant. "How is Highland Park going to pay — with Monopoly money?"But Southfield-based political analyst Mario Morrow Sr. argues that Whitmer shouldn't rush as she tries to address competing interests in Highland Park's decade-long debt battle. The governor is trying to find the balance between aiding Highland Park while not angering the many suburban communities who for years have been paying for Highland Park's unpaid water and sewer bill, he said.

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https://www.detroitnews.com/story/ne...y/70138055007/

Whitmer may play politics and kick the ball down the road stalling her decision. Did she do anything about Flint’s water crises?

It's reasonable to ask if Highland Park has a tax base that can support its existence after bankruptcy. I very much doubt it so it would appear joining Detroit is the only viable option. If the taxpayers don't want that then have a referendum where they agree that there will be no further bailouts.

Have the City of Highland Park dissolve and be absorbed to Detroit. Their city council can't pay their bills.

There are state laws to overcome before any city can annex any other city. Remember the hassle that Bloomfield Twp. went thru before they could annex the part of Pontiac that contained the now defunct Bloomfield Park development up on Telegraph Rd.?

After the huge expansion Detroit went thru up to 1926, state laws were changed to prevent annexations, or make them very difficult, and require a vote of the people.

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Originally Posted by Gistok

Remember the hassle that Bloomfield Twp. went thru before they could annex the part of Pontiac that contained the now defunct Bloomfield Park development up on Telegraph Rd.?

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That one was the other way around. The builder got Pontiac to annex those 80 acres AWAY from Bloomfield with an illegal vote where only Pontiac residents and 22 Bloomfield residents got a vote. They were originally Bloomfield's.

The builder did this because Bloomfield wouldn't approve the plan. Bloomfield city council saw what a disaster the project would be and didn't want it.

After the illegal annexation, Bloomfield sued and got their 80 acres back.


The disastrous project stalled with some help from the housing crash. Now a much more modest Menards, Aldi, WingStop, 5-Guys, Hampton Inn, Henry Ford Health center and Planet Fitness occupy the property.


I think for an annexation to occur, it would need to go on a ballot, and both Detroiters and HP residents would need to approve it.

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Originally Posted by Danny

Have the City of Highland Park dissolve and be absorbed to Detroit. Their city council can't pay their bills.

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And would Detroit be ready to absorb the legacy obligations along with that ? You know things like the city pension plan.

It gets complicated really quick,you would have to tell decades of retired folk the check is in the mail - but not really.

I do not think the state would find the support to bankrupt it and dissolve it,nobody is going to want to be the fall guy/girl/them in that game and it is a political time bomb,they will let it implode and the current city leaders will take the blame before anybody else.

Now it is no different then Detroit,you have to ask yourself,who benefits from it in bankruptcy?

If the surrounding communities find it expensive to pay their water and sewer bills now,throwing it into bankruptcy,will be a hold my beer moment.

"Like Constantinople or Rome before it the city has become a breeding ground for suffering and injustice. It is beyond saving and must be allowed to die." - Ra's Al Ghul

Lets negotiate.

How about Detroit takes Highland Park for $50,000,000 in Covid funds from the state.

Duggan gets 8,000 new residents and can say he met his goal of growing the city's population.

Whitmer gets an end to this problem.

GLWA gets a community that will not steal water payment money from rate paying customers to use for god knows what.

I will hear your counteroffers.

1953

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Originally Posted by 1953

Lets negotiate.

How about Detroit takes Highland Park for $50,000,000 in Covid funds from the state.

Duggan gets 8,000 new residents and can say he met his goal of growing the city's population.

Whitmer gets an end to this problem.

GLWA gets a community that will not steal water payment money from rate paying customers to use for god knows what.

I will hear your counteroffers.

1953

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I would say Ford needs to be involved in the solution too, they were part of the problem. My history may be rusty but I believe how it went down was Ford bought a big swath of the town pre-incorporation for the auto plant, and lobbied heavily for the community to self-incorporate so they didn't have to share the tax base with Detroit. Then when the auto companies bailed, there was nothing left of the HP economy, and the role was reversed where it could have benefitted from being part of Detroit, but without a tax base it just got worse and worse. It probably always should have become a part of Detroit, but instead it was milked by a wealthy company then left for dead.

Legally I have no idea how you'd hold Ford accountable but since we're in an era of seeing our region and city seek to right certain wrongs of the past, maybe add this one to the list.

Ford was smart in business,city leaders and residents made bad decisions for decades,but Ford should be liable ?

It’s over a $23m debt,the city has a 40% poverty rate so if you triple the property tax rate on the remaining 60% they could pay the debt without going into bankruptcy.

The 60% are not in poverty so if they spread the wealth equality with the remaining 40% you end up with the desired outcome that seems popular in the state,problem solved.

On a side note,there was a woman that was put in place to straighten out their financials,she screwed them up even worse,she left there and was hired immediately by COD in the same capacity,best things Dugan did was to dump her 30 days in.

The state is putting in $750 million in order for places like highland park to meet their pension obligations,which frees up the money they were going to put into it.

So now the water company knows that they are going to get that cash infusion is saying pay us before you piss that money away on something else and have positioned themselves legally to protect their interests.

Or making sure they are first in line.

Notice it is no different then when Detroit was thinking about bankruptcy,the ones that would benefit the most were the biggest advocators for it,it’s no different then if you viewed a city as a corporation,drive the value of its stock down,when it is at the bottom swoop in and buy the real estate at rock bottom prices,then after the bankruptcy the values go back up.

You folks got something here. The City of Highland Park, MI. must be dissolved and be absorbed to Detroit.

Let Highland Park become corporations playground. Corporations, national or local could buy up desolate land or blighted areas along Woodward including the strip malls on both side and build office buildings from the Chrysler dealership to Manchester.

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Originally Posted by kuuma

I would say Ford needs to be involved in the solution too, they were part of the problem. ...

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Sure. HP got blessed by Ford, who created massive wealth for HP. But sure, blame them.

Or maybe you could give them a credit for all the thousands of city pensions they funded for years and years. Will HP's retirees and their heirs pay their fair share?

What ever happened to HP's mystery savior? Sounds like it's time for them to put up that 10 billion.

https://www.wxyz.com/news/highland-p...s-10b-donation

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Originally Posted by 1953

Lets negotiate.

How about Detroit takes Highland Park for $50,000,000 in Covid funds from the state.

Duggan gets 8,000 new residents and can say he met his goal of growing the city's population.

Whitmer gets an end to this problem.

GLWA gets a community that will not steal water payment money from rate paying customers to use for god knows what.

I will hear your counteroffers.

1953

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This is 100% correct. What’s in it for Detroit taxpayers? Even with a bankruptcy clean slate HP has boat loads of FUBAR infrastructure. Meeting half the demo requirements in HP would be the water bill alone and then some. IF the residents agreed to absorption the City of Detroit would need a massive financial incentive to take HP on.

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Originally Posted by stasu1213

Whitmer may play politics and kick the ball down the road stalling her decision. Did she do anything about Flint’s water crises?

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That's pretty rich, when it was Snyder and his minions that caused it.

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Originally Posted by kuuma

I would say Ford needs to be involved in the solution too, they were part of the problem. My history may be rusty but I believe how it went down was Ford bought a big swath of the town pre-incorporation for the auto plant, and lobbied heavily for the community to self-incorporate so they didn't have to share the tax base with Detroit. Then when the auto companies bailed, there was nothing left of the HP economy, and the role was reversed where it could have benefitted from being part of Detroit, but without a tax base it just got worse and worse. It probably always should have become a part of Detroit, but instead it was milked by a wealthy company then left for dead.

Legally I have no idea how you'd hold Ford accountable but since we're in an era of seeing our region and city seek to right certain wrongs of the past, maybe add this one to the list.

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Might as well include Chrysler too if we're going down that road. It comprised over 1/3 of H.P.'s tax base when it moved its HQ and 9,000 employees in the early '90s to Auburn Hills. Coleman Young said at that time he was willing to consider annexing Highland Park but its mayor Martha Scott said, "We have, as a city, historically survived all the trials and tribulations...and we will, in particular, survive the Chrysler pullout." Huh.

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Originally Posted by Burnsie

That's pretty rich, when it was Snyder and his minions that caused it.

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More like decades of bad decision making by the Flint City Council, and then 'take it or leave it' contracts by the Detroit Water Dept. But that's a long and off topic discussion.


As to HP, for sure there are a lot of business opportunities to be had along Woodward and a few other streets, but no sane person will risk doing anything there now with how poorly HP is run. I have my eye on a few buildings there if it ever gets taken over. And of course I'd need guarantees that I wouldn't be on the hook for decades of past, unpaid sewer bills.

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Originally Posted by Wesley Mouch

Sure. HP got blessed by Ford, who created massive wealth for HP. But sure, blame them.

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my understanding is that HP wasn't blessed by Ford, Ford literally created the enclave through land acquisition and later lobbying, in order to circumvent Detroit, only to leave HP for dead not many decades later when they saw a chance for easier money. like i'm not sure i would call that a blessing by any stretch, just temporary and highly conditional prosperity that has long since evaporated.

just saying like, if we're talking about the generational implications of the highway system in detroit [and rightfully so], we can also open the door to other instances where a few highly influential rich people made decisions that enriched themselves at the cost of the future of entire neighborhoods. HP is definitely worth unpacking, as is how Hamtramck was incorporated in a similar way yet found a healthy path forward.

Hank had a penchant for "creating" towns for his own edification and then pulling out of them when they didn't suit him anymore. Aside from HP there was one in Brazil and at least two in the UP.