Detroit bankruptcy

Politics & Government
10:06 am
Sat July 12, 2014

The week in review: Art, oil, schools and money

Credit Julie Falk / Flickr

Week in Review interview for 7/12/14

This Week in Review, while Emily Fox sits in for Rina Miller, she and Jack Lessenberry discuss how selling works from the Detroit Institute of Arts wouldn't make financial sense in helping with the city's bankruptcy, the threat of an oil spill under the Straits of Mackinac, and money problems with Flint Community Schools.

Law
6:38 pm
Fri July 11, 2014

Detroit "grand bargain" ballots were due today

Credit Sam Beebe

Today was the deadline for Detroit retirees to vote on the city’s bankruptcy restructuring plan, known formally as a “plan of adjustment.”

The California firm tallying the votes had to receive them by today.

All creditors get to vote on the plan of adjustment. But pensioners’ votes are particularly key—especially when it comes to the future of the “grand bargain.”

That’s the deal to use more than $800 million in public and foundation money to minimize pension cuts, and protect the Detroit Institute of Arts’ collection from being sold to pay off creditors.

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Stateside
6:25 pm
Thu July 10, 2014

DIA collection valued up to $4.6 billion as voting approaches home stretch

Credit Flickr

A new appraisal of the Detroit Institute of Arts' collection has found the works could be worth between $2.7 billion and $4.6 billion dollars. That's a big difference from the $867 million value that Christie's put on the collection last fall.

Detroit News Business columnist Daniel Howes joined us to tell us what he saw in the evaluations.

Howes clarified that the $867 million valuation by Christie’s only looked at 5% of the DIA’s collection, whereas the new appraisal evaluated its entire collection. He also pointed out the caveat attached to the big $4.6 billion number: “If you try to sell big chunks of the collection at the same time, you likely press the prices dramatically.”

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Politics & Government
5:57 pm
Thu July 10, 2014

Detroit is shutting off water to delinquent customers. But is everyone getting the same treatment?

In Detroit, controversy is raging over one of the few things the bankrupt city has in abundance: water.

So far this year, Detroit has shut off for 17,000 customers as it tries to collect millions in overdue bills.

But many residents are upset with how the city is going about it—and question whether some are getting special treatment.

“Here we are, giving out water…and we still owe on the water bill”

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Detroit bankruptcy
5:15 pm
Wed July 9, 2014

Report: DIA collection worth as much as $4.6 billion

The Wedding Dance, by Peter Bruegel the Elder, is one of the most valuable works at the DIA.
Credit Detroit Institute of Arts

A New York art investment firm says, on paper, works at the Detroit Institute of Arts could be worth as much as $4.6 billion. But the report by ArtVest Partners says the artwork could go for a lot less, if it's liquidated as part of the city's bankruptcy.

An earlier appraisal of the DIA's collections by Christie's auction house looked only at works bought with city money, and said selling those would bring in no more than $866 million.

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Politics & Government
7:00 am
Wed July 9, 2014

Detroit officials get pay raises

Credit State of Michigan / Michigan.gov

Detroit emergency manager Kevyn Orr has given the city’s leaders a pay raise.

Orr signed an order hiking city appointees and elected officials’ pay by 5% on June 30th. It went into effect July 1.

Detroit Mayor Mike Duggan seemed genuinely surprised to hear that news on Tuesday.

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Politics & Government
1:35 pm
Sun July 6, 2014

Deadline approaches for bankruptcy plan vote

Credit JSFauxtaugraphy/Flickr

DETROIT (AP) - The most anticipated vote in Detroit this summer isn't for a city office.

Instead, ballots due by Friday from city retirees could determine how quickly Detroit exits its historic bankruptcy and how much of the financial weight pensioners will bear.

Non-uniformed retirees are being asked to take a 4.5 percent pension cut and no cost-of-living allowances. Police and fire retirees are faced with reduced cost-of-living payments.

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Families & Community
11:21 am
Fri June 27, 2014

Experiencing Detroit's blight digitally is getting interesting

There are over 43,000 pictures in the interactive from The New York Times.
Credit Screen shot of NYT interactive

I timed myself and it took me a minute and 21 seconds to scroll through the images of Detroit's blight. Initially, I didn't even read any of the analysis that The New York Times provided, I just scrolled. 

The Times has done several interactive pieces on blight in Detroit. There's been a wealth of data since the Detroit Blight Removal Task Force Plan was published.

This one really makes you realize how vast the city's housing problem actually is.

Their analysis breaks blight up geographically with different anecdotes and facts. Here are two examples:

7 Mile Road:

While most of the properties on the foreclosure list were residential, about 5 percent were sites of former businesses, of which a majority were vacant lots or unoccupied structures. Many were formerly gas stations, auto body shops and car washes. 

Lenox Street:

Ronald Ford Jr. says he has struggled to find work as a laborer and to pay his bills, let alone the $7,000 in property taxes that he now owes. His family bought the house in 1969, and his mother made the final mortgage payment years ago. But he said they stopped paying the taxes after she grew ill and moved into a nursing facility.  

-- Lucy Perkins, Michigan Radio Newsroom

Education
7:00 am
Fri June 27, 2014

The Best Classroom Project: Helping Detroit parents navigate a confusing school landscape

Jason and Dara Hill, with daughter Norah, at home in Indian Village.
Credit Sarah Cwiek / Michigan Radio

This week, the Detroit Journalism Cooperative is looking at how the city is functioning under bankruptcy.

Mayor Mike Duggan says his top priority is reversing the city’s long population decline.

But there are a couple key quality of life issues Duggan has no control over. One of them is the city’s schools.

Here’s the story of one Detroit family’s effort to find good schools.

Meet the Hills

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Law
6:00 am
Fri June 27, 2014

Detroit judge agrees to city tour, but asks for security precautions

Credit Sam Beebe

The judge in charge of Detroit’s bankruptcy case tentatively agreed Thursday to tour parts of the city—despite concerns about his safety.

City lawyers have been pushing Judge Steven Rhodes to take a city bus tour for some time now.

They say the judge needs to see the conditions in Detroit neighborhoods firsthand, to help him make informed decisions in the case.

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Weekly Political Roundup
4:39 pm
Thu June 26, 2014

Weekly Political Roundup: Detroit Mayor Duggan's first six months in office

Detroit Mayor Mike Duggan.
Credit Mike Duggan

The city of Detroit continues to work through bankruptcy, at the same time Mayor Mike Duggan, now six months into his term, has been working to return basic city services to residents in the city. 

Joining us today were Ken Sikkema, Former Senate Majority Leader and Senior Policy Fellow at Public Sector Consultants and Susan Demas, publisher of Inside Michigan Politics.

Detroit remains under the emergency management of Kevyn Orr, but Duggan really positioned himself as more of a chief operating officer when he was running for mayor. How much of what we see happening in the city is the result of efforts by Orr and how much of it is Duggan?

Listen to the full interview above.

Politics & Government
7:00 am
Thu June 26, 2014

Detroit water department defends shutoff campaign after UN criticism

Detroit Water and Sewerage Department Director Sue McCormick
Credit dwsd.org

The people who run Detroit’s water system faced fierce criticism Wednesday, after the United Nations issued a statement calling the city’s mass water shutoffs a possible human rights violation.

Critics lined up to blast officials at a Board of Water Commissioners meeting for ongoing efforts to cut off customers with unpaid bills.

Many cited the UN’s assertion that “when there is genuine inability to pay, human rights simply forbids disconnections.”

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Law
7:40 pm
Fri June 20, 2014

Schuette jumps into court fight over access to Detroit retirees' personal finance data

Michigan Attorney General Bill Schuette is jumping in the fight to prevent one of Detroit’s major creditors from accessing the personal financial records of city retirees.

Bond insurer Syncora Guarantee Inc. is on the hook for hundreds of millions of dollars if Detroit’s plan for exiting bankruptcy moves forward.

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Politics & Government
5:16 pm
Sat June 14, 2014

Detroit announces settlement with largest union

Terms of the bondholder deal also weren't released. Mediators say details "are in the final documentation process" and that the creditors are companies that either hold or insure a large majority of limited-tax general obligation bonds.
Credit Steve Carmody / Michigan Radio

DETROIT (AP) - Detroit has announced settlements with its largest union and a group of unsecured bondholders.

Mediators said Friday the bankrupt city completed a series of tentative agreements with the American Federation of State, County and Municipal Employees Council 25.

In a statement, AFSCME Council 25 President Al Garrett says the deals represent "the best path forward for city employees and retirees."

The Detroit Free Press reports that terms of the union agreements weren't released.

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Politics & Government
1:25 pm
Wed June 11, 2014

More money pledged to protect art in Detroit bankruptcy

The Detroit Institute of Arts.
Credit Detroit Institute of Arts

The Detroit Institute of Arts is getting more help raising money for its share of the deal meant to shield its collection from possible liquidation.

The New York-based Mellon Foundation and Los Angeles-based J. Paul Getty Trust have committed a combined $13 million toward the “grand bargain.”

That proposal would direct more than $800 million to Detroit’s pension funds--sparing pensioners from severe cuts, while legally safeguarding the DIA’s assets from being sold to pay off city creditors.

The DIA needs to come up with a $100 million contribution to the grand bargain, this new commitment puts them more than 80% of the way there.

Getty Trust President and CEO James Cuno says the two foundations made a decision to contribute on their own.

“We jointly made the commitment,” Cuno says. “There was no conversation with the DIA about it, no request from the DIA.”

Cuno says the donation reflects the North American art world’s support for maintaining the DIA’s collection as a civic institution and public resource “in perpetuity.”

If put up for sale, the collection “would be lost to private individuals around the world,” Cuno says. “And the public of Detroit, and surrounding suburbs, would be deprived of a public resource they once had.”

Cuno says it’s “too soon to tell” whether the money will be disbursed to the museum as a lump sum upfront, or spread out over a period of years. Donors and museum officials are waiting for the larger grand bargain to be finalized.

Earlier this week, Detroit’s 3 automakers pledged a combined $26 million toward the DIA’s contribution.

Judge Steven Rhodes has set an Aug. 14 trial on Detroit's plan to get out of bankruptcy.

Politics & Government
3:20 pm
Mon June 9, 2014

Nation's automakers pitch in $26 million to Detroit's bankruptcy reorganization

Reid Bigland of Chrysler speaks at the media event announcing that U.S. automakers will contribute to the 'grand bargain.' Bigland is standing in front of one of the famous Diego River murals at the DIA.
Credit Reem Nasr / Michigan Radio

It seems momentum behind Detroit's municipal bankruptcy reorganization continues to build. If the momentum continues, the city could emerge from bankruptcy this fall.

Today, General Motors, Ford, and Chrysler pledged to contribute a combined $26 million to a deal aimed at reducing cuts to Detroit pensioners while preserving the art collection at the Detroit Institute of Arts (part of the collection has been talked about as a city asset that could be sold to satisfy Detroit's creditors).

The money from the automakers will go into large pot of money – more than $800 million – collectively known as the "grand bargain."

So far, money for the grand bargain is coming from private philanthropists, foundations, the state of Michigan, and money raised by the DIA itself. The automakers' money will be counted toward the DIA's goal of $100 million.

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Politics & Government
8:46 am
Sat June 7, 2014

The week in review: GM, a grand bargain, and pothole limbo

Credit user paul (dex) / Flickr

This Week in Review, Jack Lessenberry and Rina Miller discuss General Motor's CEO Mary Barra's response to the investigation of the faulty ignition switch recalls, what happens now for Detroit after the state agreed to give the city $195 million, and an update on road funding.

Week in Review interview for 6/6/14

Politics & Government
6:00 am
Fri June 6, 2014

"Grand bargain" moves forward with Detroit City Council vote to transfer DIA assets

Credit via Detroit Institute of Arts

The city of Detroit moved to finalize its end of the “grand bargain” Thursday, as the Detroit City Council voted to transfer the Detroit Institute of Arts’ assets to a public trust.

This week, Lansing lawmakers approved $195 million toward the $816 million grand bargain – a linchpin of Detroit’s bankruptcy restructuring plan.

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Stateside
6:27 pm
Thu June 5, 2014

Detroit wins "grand bargain," but questions remain

Credit (photo by Steve Carmody/Michigan Radio)

It was a big win for Detroit's bankruptcy struggle when the state Senate approved that $195 million rescue package earlier this week. That vote "sealed the deal" on the state's piece of the so-called "grand bargain."

But is the complicated and precarious deal a reality yet?

As Detroit News business columnist Daniel Howes explained on the show today, the answer is "no."

*Listen to the full interview above. 

Politics & Government
1:35 pm
Wed June 4, 2014

No "grand bargain" for Detroit's water department, as Orr considers private bids

As “grand bargain” legislation sails through Lansing, the fate of Detroit’s water department could become the biggest issue holding up a speedy exit from bankruptcy.

Detroit emergency manager Kevyn Orr maintains the city needs to find some way to generate revenue from the system, which serves more than 4 million people in southeast Michigan.

Orr is still pursuing two different possibilities: spinning the department off to a regional water authority, or leasing it to a private operator.

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