Allen Park

A New York-based developer has agreed to buy the site of a disastrous movie studio project that pushed Allen Park to the brink of bankruptcy.

The downriver Detroit suburb bought the 104-acre complex specifically for the project known as Unity Studios.

But the developer walked away after a year –after Allen Park had issued $25.5 million in bonds to support Unity Studios.

That debt eventually led to the state taking control of the city’s finances.

Joyce Parker

The emergency financial manager of Allen Park is expected to meet with city residents this evening to talk about the city's priorities.

Gov. Snyder appointed Joyce Parker as the city's emergency financial manager last month.

Parker is expected to answer questions about her role, and the steps she plans to take to help turn things around.

Residents will be asked what city services are most important to them.

Parker isn't just an emergency financial manager in Allen Park. She's also the EFM in Ecorse, and once was the EFM for the Highland Park district.

Parker, who was appointed emergency financial manager for the City of Ecorse in 2009 and the Highland Park school district earlier this year, will continue her role with Ecorse as she takes over Allen Park, but she will no longer serve over the Highland Park district. Donald Weatherspoon, the emergency financial manager for the Muskegon Heights Public Schools district, will assume that role and keep his post with Muskegon Heights.

Pontiac, Ecorse, Flint, and Benton Harbor are other cities with state-appointed emergency financial managers. Public school districts with EFMs are in Detroit, Highland Park and Muskegon Heights.

Joyce Parker

The City of Allen Park is the latest to get a state appointed emergency financial manager. The move affects who’s in charge in some other communities who already have emergency managers.

After a review of Allen Park's finances by a state-appointed team, Governor Snyder declared that the city is in a financial emergency. That finding could lead to the appointment of an emergency financial manager to try to get the city on stable financial ground. 

While the Allen Park city council was in favor a state review of the city's finances, the Mayor and the Mayor Pro Tem opposed the request. Mayor William Matakas says he will advise the council to challenge the state's findings.

City of Allen Park

Governor Rick Snyder has declared a financial emergency in the city of Allen Park.

It could lead to a state-appointed manager running the city. A bad investment in a movie studio helped push the city to the edge of bankruptcy.

ALLEN PARK, Mich. (AP) - A team responsible for reviewing Allen Park's finances says Gov. Snyder should appoint an emergency manager to run the city southwest of Detroit.

The review team cited the city's deficit, $1 million in delinquent vendor payments, delayed pension payments and significant cash flow shortages. The city also had not filed an approved deficit-elimination plan for the 2011 fiscal year.

The review team also determined City Council is "manifestly dysfunctional."

Snyder appointed the review team last month and a report was due within 60 days.

City of Allen Park

The state is moving ahead with the process that could result in an emergency manager for Allen Park.

Allen Park is a Detroit suburb with about 28,000 people. City officials there actually requested a preliminary review under the state's emergency manager law.

In addition to suffering declining property tax revenue, the city was also on the hook for millions due to a botched movie studio deal made by the city's former mayor.

Unsurprisingly, the preliminary state review found “probable fiscal stress” there. So Lt. Gov. Brian Calley took the next step, appointing a review board to take a deeper dive into the city’s finances.

The preliminary review found chronic cash flow problems, and says city officials haven’t come up with an effective deficit-elimination plan.

If the review team confirms those findings as expected, then Allen Park will almost certainly face some type of state intervention. It would be the eighth Michigan city where the state has intervened.

Flint, Pontiac, Benton Harbor, and Ecorse all have emergency managers. Three more cities, including Detroit, are under consent agreements.

The state is looking at requests to investigate the finances of two Michigan cities.

Jackson’s Mayor has asked for a state review of the city's books.  That's the first step towards the state appointing an Emergency Manager. 

Karen Dunigan says the city needs the state’s help, even though it has a balanced budget.    She says the budget covers payroll and not much else, and meanwhile, the city has $80-million in debt, with no plan to pay anything on the debt except the interest expenses. 

An attorney for the Detroit suburb of Allen Park says he’s “confident” the city won’t have to eliminate its fire department.

Allen Park faces a budget deficit of around $660,000. Last week, its City Council voted to lay off all the city’s firefighters.

But an attorney who works for the city says he thinks that can be avoided.

Todd Flood says “he’s confident” the city and the firefighters’ union can strike a deal involving union concessions.

Flood says other city workers would have to make similar sacrifices.

Allen Park is a downriver Detroit suburb of about 25,000 people. The move to cut its whole fire department has sparked outrage at city government.

The Allen Park city administrator cited the uproar when he resigned on Sunday.

In this morning's news...

Feb 28, 2011
David Erickson / Flickr

Snyder Meeting with Fellow Governors

Governor Rick Snyder is in Washington D.C. for the annual National Governors Association winter meetings. The nation’s Governors had dinner last night at the White House where, the Associated Press reports, President Obama told them:

"Our federal system is a laboratory for democracy. In each of your states, you guys are trying all kinds of things. Oftentimes, your best ideas end up percolating up and end up becoming models and templates for the country."

Governor Snyder and other governors will meet today with President Obama and Vice President Biden.

February Auto Sales

Auto analysts are expecting to see an improvement in auto sales in February compared with the same time last year. That’s despite some interference from Mother Nature, Tracy Samilton reports. Samilton explains that it’s not unusual for auto sales to decline because of big snowstorms. But, one auto analyst told Samilton, auto sales still probably improved in February by 20 percent.

City Administrator Resigns

Eric Waidelich, Allen Park’s City Administrator, has resigned. The news comes less than a week after the Allen Park City Council voted to lay off the city’s entire fire department because of budget problems. As Rina Miller reports, “A movie studio-deal gone bad is getting some of the blame for Allen Park’s financial troubles. The Detroit suburb bought an old Visteon facility in 2008 for almost $25 million, banking on a plan to lease the property to Unity Studios. The deal flopped  and now Allen Park is broke.”