"Detroit City Council approved Tuesday a $22 million tentative settlement stemming from the financing of the Westin Book Cadillac Detroit hotel.

The settlement would mitigate a money-losing investment made by the city and two Detroit pension funds in a hotel development that spurred downtown's revitalization following the recession.

The city and two pension funds helped finance about $42 million of the $180 million project that renovated and rehabilitated the historic hotel in 2006.

Under the tentative deal, the city and pension funds would split $22 million and settle a lawsuit alleging a secretive scheme bumped the Carpenters Pension Trust Fund ahead of other investors.
Two Detroit pension funds representing police and fire personnel and nonuniform workers have not approved the settlement.

"We are still in negotiations as to how the settlement proceeds will be distributed among us," said Tina Bassett, spokeswoman for the Detroit General Retirement System. "None of the parties involved in this settlement are going to be made whole. However, on the bright side it will give us some cash to be used in other investments and improve our liquidity."
Under the proposed settlement, the city would get at least $10 million, money that would help repay U.S. Department of Housing and Urban Development loans. The loans were part of a 17-layer financing deal in 2006."

http://www.crainsdetroit.com/article...ancing-lawsuit