Detroit bankruptcy

There are over 43,000 pictures in the interactive from The New York Times.
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

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

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.

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.

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.”

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.

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.

The Detroit Institute of Arts.
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.

 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.
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.

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.


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.

(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. 

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.

Yesterday was largely a good news day for our state, and how often can you say that?

The really big news, of course, was the state Senate’s remarkably fast passage of the so-called "grand bargain," the deal that gives Detroit a chance to emerge from bankruptcy without threatening the city’s art museum or utterly destroying the lives of the retirees.

And, in a development understandably overshadowed, the U.S. Coast Guard finally issued a permit for the building of the New International Trade Crossing bridge, meaning all that’s left now is for Washington to come up with money for the customs plaza.

That will be essential for Michigan’s economy in the future.

Detroit skyline.
user JSFauxtaugraphy / Flickr

This Week in Michigan Politics, Jack Lessenberry and Christina Shockley discuss how lawmakers approved giving $195 million to Detroit, the state of the United Auto Workers after members agreed to raise fees for the first time in nearly 50 years, and why lawmakers can't agree on road funding. 


Lester Graham / Michigan Radio

State lawmakers have committed to contributing $195 million to Detroit's bankruptcy settlement.

The state Senate gave final legislative approval to the bills to help protect retiree pensions and prevent the sale of city-owned artwork at the Detroit Institute of Arts.

“Today we are all Detroiters and we are all Michiganians,” said U.S District Court Judge Gerald Rosen following the vote. Rosen has been overseeing talks between Detroit and its creditors, and is considered the architect of the "grand bargain."

According to a report by a former head of the state Treasury Department's Office of Revenue and Tax Analysis, Michigan has been cutting taxes over the last 20 years. That's He finds, overall, Michigan's had the smallest increase in taxes in the country as measured on a per capita basis between 1977 and 2011.

On today’s Stateside, we looked at the effect of two decades of tax cuts in Michigan, and found out whether anyone has actually benefited.

Next, we checked in with an Ann Arbor- based group that records music by people who live in struggling villages in Senegal and turns the recordings into profits that go directly back to the communities.

But first on today’s show, we got an update on Detroit’s bankruptcy.

It has been a busy few days in Detroit's bankruptcy journey. Emergency Manager Kevyn Orr and Mayor Mike Duggan were on Mackinac Island last week making their collective cases to the state's lawmakers and business leaders.

At the same time, the city's pensioners have begun to vote on the plan of adjustment, even as opponents of the “Grand Bargain” are seeking new ways to get their hands on the city's art.

Detroit News Lansing reporter Chad Livengood joined us today.

*Listen to the full show above.

Peter Martorano / Flickr

Today we got an update on Detroit’s bankruptcy.

It has been a busy few days in Detroit's bankruptcy journey. Emergency manager Kevyn Orr and Mayor Mike Duggan were on Mackinac Island last week making their collective cases to the state's lawmakers and business leaders.

At the same time, the city's pensioners have begun to vote on the plan of adjustment, even as opponents of the “grand bargain” are seeking new ways to get their hands on the city's art.

Detroit News Lansing reporter Chad Livengood and Michigan Radio's Zoe Clark joined us today.

*Listen to the interview above.

Stephen Harlan / Flickr

new report from the Blight Removal Task Force says that there's a lot of buildings that need to be eliminated in Detroit.

Yesterday, Kai Ryssdal of Marketplace interviewed Erica Gerson.

She's the chair of Detroit's Land Bank Authority. The organization deals with identified blight in the city and makes buildings usable again.

Listen to their conversation here:

Detroit Institute of Arts

The Detroit Institute of Arts is firing back at creditors who say the city should use the museum’s assets to pay them off.

The DIA filed a formal objection to those creditors in bankruptcy court this week, just as city lawyers acknowledged an ongoing effort to put a price tag on the museum’s entire collection.

More than 1,500 statewide businesses, government and community leaders will be at this year’s Mackinac Policy Conference, May 28 through May 30.

The conference will feature speakers, stakeholders and panelists discussing issues in STEM education, workforce development, public policy, and more.

You can join a live chat and screening for two sessions with two of Detroit's top leaders: Detroit Mayor Mike Duggan, and Detroit Emergency Manager Kevyn Orr.

The chat and screening will take place on a social screening platform called OVEE (Online Video Engagement Experience).

Watch and discuss Mayor Duggan's keynote address today at 4:45 p.m. by clicking here. You can also add this event to your calendar.

And you can watch and discuss Kevyn Orr's keynote address on Friday, May 30, at 9:45 a.m. by clicking here, or add it to your calendar.

The main image on the report released today.
Data Driven Detroit

The number comes from a much-anticipated report on the state of decay in Detroit's neighborhoods and what can be done about that decay.

The final report from the Detroit Blight Removal Task Force is titled, "Every Neighborhood Has a Future...And It Doesn't Include Blight."

The report's authors say a combination of blight removal and investment in Detroit's neighborhoods should be the goal for the city's leaders.

From the report:

Structure removal alone will not be enough to fully transform Detroit’s neighborhoods. There must be a concentrated reinvestment in Detroit’s neighborhoods, which will allow for the rebuilding of value.

The report draws heavily on a technology project aimed at cataloging buildings in the city. The Motor City Mapping Project relied on teams of people going out, snapping photos of a building or lot, and then attaching information to that cataloged parcel.

Here's how it worked:

Inside the Michigan Senate
Lester Graham / Michigan Radio

The $195 million Detroit rescue package moves to the Michigan Senate this week after easily clearing the state House by wide margins.

Gov. Rick Snyder is hoping for speedy action to get the deal wrapped up no later than early June.

“I would remind people our work is not done,” Snyder said. “I’d like to thank the House for their wonderful work, but we still have work to get done in the Senate. Hopefully, we can get that done in a prompt fashion, but this is a great opportunity to move Michigan ahead.”

Detroit Mayor Mike Duggan says he “completely supports” the Detroit aid package being debated in Lansing, despite the conditions attached to it.

The 11-bill package would put $195 million in state funds toward the $816 million “grand bargain:” a deal to smooth Detroit’s trip through bankruptcy by minimizing cuts to retiree pensions, and shielding the Detroit Institute of Arts’ assets from city creditors.

Detroit Skyline
Shawn Wilson / Wikimedia Commons

This Week in Review, Jack Lessenberry and Rina Miller discuss the latest with the Detroit bankruptcy including political push back from the Koch brothers and money from JPMorgan Chase, and the ongoing debate about Michigan's crummy and crumbling roads.


In Lansing yesterday with the state House approving that $195 million for Detroit, a lot of us were anticipating a close vote. A very close vote.

There was a lot of back and forth about how many votes the Republicans would have to put up and how many the Democrats would have to put up. But, in the end, it wasn’t even close.

Other than the dust-up over the Detroit Institute of Arts millage the package passed by big lopsided margins and overwhelming Republican support. Which, when you think about it, is a very interesting dynamic: overwhelming GOP support for the state coming to the aid of a city run by Democrats.

Last week it seemed anything but certain that the package of bills authorizing state money for the Detroit “grand bargain” would pass.

And nobody expected they would pass by margins as high, in one case, as 105 to 5.

Which just shows once again that real life is usually stranger than fiction.

There is lingering bitterness over one bill, however: the one that prevents the Detroit Institute of Arts from asking for a renewal of its millage when it expires.

Detroit Skyline
Shawn Wilson / Wikimedia Commons

This week brought a $100 million boost to Detroit from JPMorgan & Chase.

Having a titan of Wall Street come to the Motor City with that big bag of money has meaning on many levels. 

Detroit News business columnist Daniel Howes joined us. 

*Listen to the full interview above. 

Detroit Skyline
Shawn Wilson / Wikimedia Commons

For a lot of people, Jamie Dimon will forever be linked to the mortgage crisis that hit Detroit as hard as any city.

But there was no mention of that at yesterday's announcement, of course. Instead, there was a plated lunch - chicken and salad, with cupcakes - an uplifting video, and a standing ovation led by Michigan's governor, Rick Snyder.

Lester Graham / Michigan Radio

Michigan lawmakers are debating a $200 million aid package for Detroit as the city moves through bankruptcy. Until now, state lawmakers haven’t been willing to help it with anything that could be called a “bailout.”

While Governor Rick Snyder supports the current deal, many of his fellow Republicans appear to be balking, especially after a threat of political retribution from the Koch Brothers political network.

Detroit officials have been doing lots of talking in Lansing for the past week, lobbying hard for the state aid package.

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