Pick the date for receivership

lilpup · August-10-09, 04:15 PM

The Bingster says no more cash within 70 days ... same game, new leader ... for real this time or a ploy?

Pick the date or say nay ~

Stosh · August-10-09, 04:33 PM

Originally Posted by lilpup

The Bingster says no more cash within 70 days ... same game, new leader ... for real this time or a ploy?

Pick the date or say nay ~

Depends on who's call it is. If it's Granholm's, I'd say sometime after she leaves office. If Bing, then I'll call the day after the deadline. October 20th 2009. I don't think there's any reason to BS anymore. And those poor unfortunates being bellicose on TV may as well just pack it in.

**sumas** · August-10-09, 04:41 PM

October 17th, 2009

**heedus** · August-10-09, 04:59 PM

I've heard a lot of business leaders say that realistically, the best thing for Detroit long-term is receivership. Perhaps Bing came in with that mindset and is doing the things he needs to do now to get re-elected in November so that he can be in office to ease the transition into receivership once it finally occurs. He's said before that he's here to make all the tough decisions that other politicians simply cannot make.

**R8RBOB** · August-10-09, 05:19 PM

Originally Posted by heedus

I've heard a lot of business leaders say that realistically, the best thing for Detroit long-term is receivership. Perhaps Bing came in with that mindset and is doing the things he needs to do now to get re-elected in November so that he can be in office to ease the transition into receivership once it finally occurs. He's said before that he's here to make all the tough decisions that other politicians simply cannot make.

Years ago, the idea of Detroit going into receivership would have been a deathblow but now Detroit need a "hail mary." Unless the tax base does a 180, Detroit needs to be restructed and perhaps Bing is that man to get it started. Right now there are other cities that need some form of receivership. Los Angeles comes to mind with a 3 billion dollar deficit.

**Crumbled_pavement** · August-10-09, 05:28 PM

Originally Posted by R8RBOB

Unless the tax base does a 180.

I can't see that happening. Houses are being stripped and burnt down left and right. I think in the next two years people in the financial department of Detroit are going to have heart attacks when they see the massive decline in property tax revenue. Add to that decline all the people who own houses that are only worth 10% of what they owe on the house that will be filing for reduced tax burdens. The pain hasn't even begun. It's like comparing a needle injection to 5 gunshots to the arm.

**mwilbert** · August-10-09, 05:35 PM

'Twere best done quickly.

I don't see any good reason to wait. But I imagine the administration will prefer it be clearly forced upon them. Before Angels' night.

**jtf1972** · August-10-09, 06:13 PM

More important than when the city may enter receivership, what would receivership mean for Detroit? What would be the immediate impact? The long-term ramifications?

**skyl4rk** · August-10-09, 06:22 PM

January 11, 2010

lilpup · August-10-09, 06:26 PM

Receivership didn't seem to hurt Cleveland much.

EastSider · August-10-09, 06:30 PM

Originally Posted by jtf1972

More important than when the city may enter receivership, what would receivership mean for Detroit? What would be the immediate impact? The long-term ramifications?

Initially, it would mean for the city what Robert Bobb is doing with DPS. An Emergency Financial Manager may be appointed by the state. Only after an EFM is appointed and the situation examined would the decision to seek receivership through a bankruptcy filing be made.

An EFM would be bound by the terms of any existing labor agreements, but he or she could negotiate amendments and new contracts as the existing ones expire. Receivership could allow the city to tear up the existing agreements, get out of various other contracts, possibly get out from some bond payments.

I don't think an EFM would be appointed until early January 2010. Say January 11, 2010.

**skyl4rk** · August-10-09, 07:37 PM

Originally Posted by EastSider

I don't think an EFM would be appointed until early January 2010. Say January 11, 2010.

Nice choice, but don't expect me to share the pot with you!

**digitalvision** · August-10-09, 08:04 PM

October as Bing says - and it'll be consummated before Granholm leaves to ensure the hit isn't TOO hard on labor.

Either way, the city [[and others) are totally screwed. There is simply not enough money - and when the property taxes reset on many properties that have lost value - it's not just Detroit that's going to be hurting.

Government as we know it, after the Obamadollars are done, will not be the same on all levels. The stimulus money is not for stimulus but meant as a soft landing. I've heard that from quite a few officials.

Most business leaders I know use the term "reset," and not just Detroit but the state and nation. There is no going back, no rebound. It's going to be forever different; the jobs aren't going to come back [[not saying there won't be new jobs, but it will be in different industries or occupations, manufacturing for all intents and purposes is dead); what people are willing to pay for and how much has so radically changed in the last ten years.

Stosh · August-10-09, 08:43 PM

Originally Posted by EastSider

Initially, it would mean for the city what Robert Bobb is doing with DPS. An Emergency Financial Manager may be appointed by the state. Only after an EFM is appointed and the situation examined would the decision to seek receivership through a bankruptcy filing be made.

An EFM would be bound by the terms of any existing labor agreements, but he or she could negotiate amendments and new contracts as the existing ones expire. Receivership could allow the city to tear up the existing agreements, get out of various other contracts, possibly get out from some bond payments.

I don't think an EFM would be appointed until early January 2010. Say January 11, 2010.

I really don't think that a financial manager will do the trick, in this case. That ship has sailed long ago. Given the current climate of uncooperation among the stakeholders, the outcome of any potential negotiation is in serious doubt.

Kwame screwed this city over with the smoke and mirrors accounting juggling. The time for serious action was 5 years ago. Now it's all just a waiting game. And it's a waiting game that can get ugly real quick, sadly enough.

How ugly? That's up to the Unions and Bing. The possibility of general strikes among the workers is a real one. The sacrifices aren't being doled out evenly, as the Unions have stated. But let's be real here. This is only the beginning. There's plenty of pain left to go around.

gravitymachine · August-10-09, 09:14 PM

hopefully about the time robert bobb is done over at DPS

**Crumbled_pavement** · August-10-09, 10:15 PM

Are you prepared, pt. IV

**Detroit500** · August-10-09, 10:56 PM

November 4, 2009. Day after Bing is reelected.

MIRepublic · August-10-09, 11:41 PM

Does anyone recall clearly how NYC was able to avoid bankruptcy in the 70's? There seemed to have been some massive effort by the state and federal government and I wonder if NYC was better off for it in the long run.

lilpup · August-10-09, 11:52 PM

President Ford originally refused to bail out New York [[the famous "Drop Dead" headline) because he felt the city hadn't adequately addressed and reformed its budgetary issues. After the city was thus forced to seriously change things and produced results to Ford's satisfaction he granted the funding.

**daddeeo** · August-11-09, 07:16 AM

Seems counterproductive for the unions to strike if they'll be trading a 10% cut compared to a 100% cut.
Will members be like lemmings and go over the cliff with their leaders? Hmmm.

**Danny** · August-11-09, 08:03 AM

Let Detroit go into recievership. City leaders can't handle the spending and the budgeting. If I was Emergency Financial Manager, I would provide " Operation Step Up!"

1. Cut spending to rediculous projects like the proposed "Africantown" in Harmonie Park.

2. Bring Cobo Hall back to the barganing table to have regional authorities take over or lease the building.

3. The pay to all city officials by 25% I might cut to more if the first proposal doesn't work.

4.Start project "Walk the Beat" Bringing Detroit Police officers to walk the streets of Downtown Detroit and Midtown areas. If the crime rate in certian Detroit neighborhoods increase, heavy patrols and neighborhood watch securities will increase.

5. Have Detroit Police officers catch drivers who are using cell phones and texting while driving. Set up speed traps to catch speeders.

6. Propose international outreach to lure businesses to Detroit.

7. Launch operation "Block Club Power" have each and every Detroit neighborhood start their own block clubs, Have every last vacant and abandon homes fix up by having Detroit Public School building trade students to the work along with the neighbors. Have private developers save the remaining retail strips and convert them to retail development opportunities.

8. Crack down all political corruption for various city leaders to the full extent of the law.

9. Build relations between Detroit and suburbs right away.

10. Create a hands off appoach to keep city leaders from taken city tax payer dollars for their own desires.

EastSider · August-11-09, 08:35 AM

Originally Posted by skyl4rk

Originally Posted by EastSider

I don't think an EFM would be appointed until early January 2010. Say January 11, 2010.

Nice choice, but don't expect me to share the pot with you!

Not even if I bring Cheetos?

Let's split the date and let the time of the announcement decide between us. You can have the morning, I'll take the afternoon.

**gnome** · August-11-09, 10:14 AM

There are two different "receiverships".

1, the Governor steps in, with a Financial Manager who inturn has the power under almost Imperial Powers to slash the budget. Before Bankrupcy the Financial Manager would enter into arbitration with the labor Unions and could renegotiate contracts with suppliers. If the EFM can't balance the books, that Manager could declare bankrupcy which would wipe out all debts and contracts and send the whole mess to Court.

In this scenerio the political power structure is pushed to the corner and becomes a toothless cur.

2, The other system would avoid the Governor altogether. The City would declare Chapter 9 Bankrupcy, resulting in the current political strong-mayor structure to operate as its own Financial Manager.

Taking into the account that Governor Granholm would rather eat glass than take over Detroit and all of its Democratic voters, I'll vote for Chapter 9. On Monday September 14, 2009 Bing will file the paperwork in Federal District Court.

However, on the afternoon of the 14th, the Unions will agree to concessions thereby avoiding the delaying Chapter 9 Bankrupcy until April 10th, 2010.

**mwilbert** · August-11-09, 10:19 AM

Originally Posted by lilpup

President Ford originally refused to bail out New York [[the famous "Drop Dead" headline) because he felt the city hadn't adequately addressed and reformed its budgetary issues. After the city was thus forced to seriously change things and produced results to Ford's satisfaction he granted the funding.

New York State stepped in a massive way, forming the Municipal Assistance Corporation which sold $10 billon dollars in bonds to prevent NYC from going broke. In exchange, the city massively improved its financial controls and budget process. I do not think the US government participated in the bailout.

**Mackenzie68** · August-11-09, 11:01 AM

I'll take January 21, 2010.

After the election, after the holidays, after a last-ditch effort.

The other mitigating factor would be when the various union contracts expire. I think some of the news-stories now are crafted to scare SEIU, etc. rank and file into taking cutbacks and writing contracts with longer term relief.