Bing rejects state plan to tear down blighted structures.

[Wesley Mouch]

A simple State of Emergency declaration negates the can'ts.

It's been done before in similar situations.

True in many ways -- but far from all.

OSHA, EPA for starters.

[Richard]

The money comes from the feds as part of the fund that was set aside by the banks to combat foreclosures help those in foreclosure and relieve neighborhood blight caused by the empty foreclosures it was dispersed to the states who then send it out to the cities.

I am not sure if the intention was to use the funds to target specific neighborhoods as all neighborhoods are affected by the foreclosures and the funds should be dispersed to all neighborhoods and not just a chosen few.

These funds have been available for at least 3 years but I guess they were never applied for before now. So how much more damage has occurred in the past couple of years and how many more homes have been lost.

For every action there is a reaction.

Bus system needs help $30 mil is sent
Firefighters laid off another $30 mil to rehire

Detroit gets its bailout the city just does not get a big lump sum and you already know why the funds go directly to where they are supposed to go and each system gets rebuilt piece by piece.

http://www.freep.com/article/2012060...r-give-it-back

What has Mr. Bing been doing the past 2 years?

[313WX]

Bing has to go immediately.

Send the old man back to Franklin.

[Richard]

Bing has to go immediately.

Send the old man back to Franklin.

But then you have nobody in the drivers seat ....well scratch that statement.

It baffles me that the people on city council and the mayor at times say how much they love Detroit but yet they have purposely allowed the city to go to waste,how do they even sleep at night?

The funds have always been there for neighborhood stabilization there is no excuse,if you look at last years budject you can see which neighborhood organizations have received funds for improvements but the amount of funds are but a pittance doled out compared to what was available,now it is going to be horn blowing until the next election,maybe it is a bit better for the neighborhoods to provide an opportunity for some of that horn blowing,maybe take advantage of it,like the squeaky wheel gets the grease?

[Locke09]

This takes you right back to the discussion about rightsizing the city and only spending money in targeted neighborhoods. While you're diddling around trying to plan on how to only spend money in your targeted places, the rest of the city is going to hell in a handbasket with money just sitting there.

Now they want to use most of the money to tear structures down, when it was intended to be used to stabilize neighborhoods, do renovations and possibly save some homes.

[313WX]

But then you have nobody in the drivers seat

Good point. Pugh's next in line...

UGH!!!

At least Duggan will be quite transparent with his agenda. Bing comes and goes more than a Chameleon.

[Richard]

Not only that but as cities in other states have learned it is just as important to build strong supporting communities that surround the CBD downtown as it is to rebuild the core otherwise you end up with the case of stepping out of the CBD into a war zone.

I think the cities biggest problem is by considering one property only as a renaissance zone verses an entire targeted area,give the homeowners a tax break and a few gallons of paint and change an entire neighborhood verses one building.

[Richard]

Good point. Pugh's next in line...

UGH!!!

At least Duggan will be quite transparent with his agenda. Bing comes and goes more than a Chameleon.

Thats why you guys need to be discussing who you want to put in place the neighborhood districts now instead of waiting until the after the first of the year ,find somebody,support them and get them in place to work for you guys.


I am sure Mr Bing means well but yea he is a master at the chameleon act and that portrays instability in gov. which is not good.

I guess that is his style of business though stay in control by keeping the underlings in a state of constant guessing ,it does not seem to work to well in a city setting though.

[NewportNic]

Is the State going to do this without a City permit.

[SWMAP]

Who knows? But the problem for Bing & Council will be that State will decide what contractors to use and those may not be the big local contributors. As to State getting City permits- usually the superseding government would use it's own process. Does the Army Corps of Engineers get local permits? I doubt it. The local people hope the Corps approves of what THEY do!

[firstandten]

I guess that is his style of business though stay in control by keeping the underlings in a state of constant guessing ,it does not seem to work to well in a city setting though.

BINGO !! No pun intended.

[illwill]

There's only one way to save Detroit and it's bankruptcy.Otherwise we're making a minimum payment on a credit card that we'll never payoff. Detroit is hoping for that one big break. But if it doesn't happen, thecity is doomed. Bankruptcy is the ONLY option at this point.

Plain and simple.

[coracle]

There's only one way to save Detroit and it's bankruptcy.Otherwise we're making a minimum payment on a credit card that we'll never payoff. Detroit is hoping for that one big break. But if it doesn't happen, thecity is doomed. Bankruptcy is the ONLY option at this point.

Plain and simple.

I agree with you. This drip drip drip of State funds to 1) Send State Police to help in Detroit. 2) Financially support Belle Isle in some way 3) Millage to subsidize DIA. 4) Funds to tear down blighted structures, and I'm sure more to come, is wasted investment because it doesn't solve the problem. It only delays the date when the patient will have to take the medicine. Much better to force the medicine down and then fund the recovery.

[iheartthed]

There's only one way to save Detroit and it's bankruptcy.Otherwise we're making a minimum payment on a credit card that we'll never payoff. Detroit is hoping for that one big break. But if it doesn't happen, thecity is doomed. Bankruptcy is the ONLY option at this point.

Plain and simple.

Why do you think bankruptcy would save Detroit?

[downtownguy]

I'll say up front that I'm still undecided whether an EM, bankruptcy or another method is best for Detroit. There has been a lot of rhetoric, but with so many complicating factors involved, I have yet to be swayed by any of it. The metaphor of making of minimum payment on a credit card sounds good, but is it a fair comparison? Municipal bankruptcy is much, much different from personal or corporate bankruptcy. With all due respect illwill, it is far from plain and simple. Why have municipal bankruptcies been so rare? I wish there were more true experts elevating the dialog in the media. But, unfortunately, I don't think the local media have an interest in that. Heaven forbid they write above a fourth grade level! Instead, we hear from the politicians and I'm not comfortable making a decision of this magnitude on what they say.

[mwilbert]

As am I sure everyone knows, in Michigan a municipality can't file for bankruptcy without the approval of an EFM, which means you can't have a bankruptcy filing until you have an EFM. Bankruptcy is not an alternative to an EFM; it is a measure an EFM could take if necessary.

I'm curious what happens if a city manages to run out of money before an EM is appointed. Without bankruptcy protection, you could see all kinds of disruptive behavior on the part of creditors. I wonder what the state would do then?

[Richard]

I agree with you. This drip drip drip of State funds to 1) Send State Police to help in Detroit. 2) Financially support Belle Isle in some way 3) Millage to subsidize DIA. 4) Funds to tear down blighted structures, and I'm sure more to come, is wasted investment because it doesn't solve the problem. It only delays the date when the patient will have to take the medicine. Much better to force the medicine down and then fund the recovery.

The majority of the drip drip of funds are coming from the feds passed through the state so you really cannot mess with them as has happened in the past,the funds are being directed directly to where they are needed eliminating the amount of sticky figures they would usually pass through.

The design is buying time so the rest of the city does not crumble any further while the house gets in order,even bankruptcy will not help if you still have the same ones in power that got you to where you are at today.

Hypothetically speaking say bankruptcy was applied then the city was handed the funds to rebuild and it is business as usual in the past,then 5 years down the road the city is back in the same boat what happens then when all funds are cut off?

The city is getting a unique chance to fix itself without falling under an EFM or bankruptcy which is the ideal situation.All the mayor and city council have to do is show some leadership and sit down and work things out if they cannot do that then it is the residents duty to find somebody who will.

[rex]

Time to swallow pride

[illwill]

Originally Posted by illwillThere's only one way to save Detroit and it's bankruptcy.Otherwise we're making a minimum payment on a credit card that we'll never payoff. Detroit is hoping for that one big break. But if it doesn't happen, thecity is doomed. Bankruptcy is the ONLY option at this point.

Plain and simple.
Why do you think bankruptcy would save Detroit?


__________________________________________________ __
[[Sorry for the bunched up words- I have issues whenever Ipost on this website)

For several reasons. The city is in way over its head withdebt because the city is spending more than it's taking in. Most cities areupside-down but nowhere near as much as Detroit. Our budget is still based offof a city with a population of over a million people that we're trying toservice geographically. We're obviously toying around with a number somewherearound 700K. We've seen other major cities such as Miami go bankrupt and wereable to come back much stronger. By avoiding BR we're just delaying therecovery process.

I think one reason investors stay away from Detroit is because of uncertainty. If all people who had interest in Detroit [[investors,home owners, business owners etc...) knew where the city stood financially, Ithink this would give them confidence to make a move by knowing which directionthe city is going.

But to answer your question in short, I think it's simply amatter of Detroit carrying a load of debt that they will never be able to getfrom underneath. The supposed comeback has been going on far to long...decades. And things have not improved. Through intelligent leadership, our cityshould be along the lines of many other urban cities and we're so far off.Still with no signs of government leading us to a financial break though. Iknow private investment has improved slightly in a few areas but for the mostpart, things ARE STILL THE SAME. We should be a city that is competing withChicago, Pittsburg, Philly, D.C. etc... Our region has the economic muscle tocompete with ANY Northern city. But through poor leadership, our city hasremained stagnant. Anyone who has been around Detroit long enough knows thatprivate investment is not enough when you have the kinds of problems holdingyou back that the Mayor and city council are dragging us through. This isnothing new. It's been going on as long as I can remember. It's too latecorrect. We're beyond broke.

Through BR Detroit is able to write off much of thedebt and would hopefully allow them torestructure and streamline the books. I might be wrong because I never went toschool from this stuff but I think BR is the only solution.

[313WX]

I'll say up front that I'm still undecided whether an EM, bankruptcy or another method is best for Detroit. There has been a lot of rhetoric, but with so many complicating factors involved, I have yet to be swayed by any of it. The metaphor of making of minimum payment on a credit card sounds good, but is it a fair comparison? Municipal bankruptcy is much, much different from personal or corporate bankruptcy. With all due respect illwill, it is far from plain and simple. Why have municipal bankruptcies been so rare? I wish there were more true experts elevating the dialog in the media. But, unfortunately, I don't think the local media have an interest in that. Heaven forbid they write above a fourth grade level! Instead, we hear from the politicians and I'm not comfortable making a decision of this magnitude on what they say.

There is a pretty good write-up in the Michigan Chronicle about Chapter 9 Bankruptcy for Detroit.

He only argues the city wouldn't be eligible because an EM must be appointed first, although he doesn't know what that'll play out once it's frozen and if it's repealed.

The biggest uncertainty according to him will be the cost of the lawsuits and the impact on the rest of the state in a Chapter 9 bankruptcy filing. But, to be fair, since Michigan has one of the strictest home-rule provisions in the country [[where every single municipality has its own chartered/independent authority), I still think the supposed ripple effects are being overblown.

But the key part was if the city can't pay the crediitors, its taxpayers will have to [[through reduced services), which is what's happening under the Consent Agreement. THAT'S not going to work in the long term if one's truly concerned about healing Detroit and making life better for its citizens [[versus just satisfying the bankers), especially given how long it'll take Detroit to pay down its debt and the fact that Detroit's services are already at third-world levels.

http://www.michronicleonline.com/ind...tcy-expert-say

[downtownguy]

Thanks for the link, 313WX. I wish we could find some more like that, although it seemed to me the author of the article didn't have a good grasp of the issue. The expert, Mr. Scorsone, didn't seem too keen on bankruptcy and his statement that a city can't eliminate its debt in bankruptcy makes me wonder why you'd want to go there, except that the political leadership retains more power.

[rex]

All the money our federal govt spends outside america. Why cant they contribute some here for things like this

[mwilbert]

Thanks for the link, 313WX. I wish we could find some more like that, although it seemed to me the author of the article didn't have a good grasp of the issue. The expert, Mr. Scorsone, didn't seem too keen on bankruptcy and his statement that a city can't eliminate its debt in bankruptcy makes me wonder why you'd want to go there, except that the political leadership retains more power.

Bankruptcy is a gamble, because it really depends upon what the judge thinks is reasonable. My understanding is that in Chapter 9 the municipality proposes a plan to resolve the debt problem, and the judge determines whether that plan is acceptable. The criteria for acceptance include that the plan be in the best interest of the creditors, so presumably that puts an upper limit on how much they can get crammed down.

You might find this interesting:

http://www.uscourts.gov/federalcourt.../Chapter9.aspx

[Detroitej72]

I'm starting to think Bing is ineffective as mayor and part of the problem.

[NewportNic]

All the money our federal govt spends outside america. Why cant they contribute some here for things like this

The problem is too much spending per resident, getting more money from the Fed only delays the inevitable.