Detroit consent agreement

Politics & Government
7:47 pm
Wed July 11, 2012

Detroit city lawyer loses legal battle over consent agreement--but could continue war

Krystal Crittendon

A court has once again rebuffed a Detroit city lawyer's attempts to have the city’s consent agreement with the state overturned.

Detroit’s corporation counsel, Krystal Crittendon, has pushed forward with a legal action that could un-do the consent agreement.

Crittendon maintains that legally, the city can’t enter into any contracts with the state because the state owes the city money.

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Politics & Government
5:20 pm
Fri July 6, 2012

Detroit city lawyer continues consent agreement challenge

Krystal Crittendon

Detroit’s top lawyer has apparently decided to fight on in her effort to challenge the city’s consent agreement with the state.

State officials warn the ongoing court battle threatens Detroit’s ability to “get back on track and move forward.”

Detroit corporation counsel Krystal Crittendon maintains the consent agreement is illegal because the state owes Detroit money, and the city can’t have a valid contract with a debtor.

But Ingham County Circuit Court Judge William Collette threw the case out, saying Crittendon had no authority to bring it.

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Politics & Government
10:15 am
Wed July 4, 2012

Disputes continue over Detroit's consent agreement, but there is good news

Patricia Drury / flickr

It’s been a few months since the city of Detroit and the state entered into a consent agreement aimed at stabilizing the city’s finances. Since then, the financial advisory board has been formed, but there have been a few hiccups in the city’s progress, including a lawsuit brought by the city’s corporation counsel challenging the validity of the consent agreement.

Stephen Henderson is editorial page editor for the Free Press and the host of "American Black Journal.” He joined us to talk about developments around the consent agreement.

Jennifer White: Do you have a sense of whether progress in being made towards stabilizing the city?

Stephen Henderson: Well a little bit of progress has been made. We got some of the money the state promised to extend to us to keep the city from going bankrupt, and they sold about $80 million worth of bonds in the spring to do that. The second part of that funding though has been held up by this dispute about the city’s corporation counsel, and whether she can sue to stop the consent agreement from taking place. So that’s at least a little bit on hold right now. But of course we got some good news recently because the fiscal year changed over here in Detroit over the weekend. July 1 was the beginning of our fiscal year and so the city is a little bit cash rich right now, even though we still have a structural deficit. So, I think the emergency part of this might be subsiding but we still have big questions about how we’ll manage going forward.

JW:You mentioned the lawsuit brought forward by Krystal Crittendon, the city’s corporation counsel, challenging the consent agreement’s validity, and there was considerable push back from Mayor Bing and the Snyder administration. That included the threat that $28 million in revenue would be withheld from the city. When will there be resolution on that?

SH:I don’t know. That’s a big problem because she asserts that she can, on her own without the support of the mayor, challenge this agreement. Most lawyers and most judges in fact that I’ve talked to say that there’s no way she should be able to do that, but we have a city charter that does not make that terribly clear. So really to solve that problem we have to get back in to the charter and amend it. Of course it would all go away if she would just relent and say it’s not worth holding up the city’s entire existence over this question. But she’s been unable, or unwilling to do that so far.

JW:Does she have the support of city council members?

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Politics & Government
7:03 pm
Fri June 29, 2012

Contract showdown looms between Bing, unions

Detroit Mayor Dave Bing and city union representatives appear to be headed for a showdown over contract negotiations.

The heart of this disagreement is Detroit’s consent agreement with the state.

There’s language in there that allows the mayor to impose union contracts after previous contracts expire. Most city workers’ contracts expired June 1.

But in a scathing letter to Bing, union officials say it doesn’t exempt the city from bargaining with unions—something they haven’t done since the two sides reached tentative agreements in February.

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Politics & Government
9:35 pm
Thu June 28, 2012

Bing faces questions, criticism at "community conversation'

Dave Bing

Detroit Mayor Dave Bing took questions from Detroiters during a “community conversation” at city hall Wednesday night.

Bing answered a wide range of questions from citizens, ranging from concerns about blight and crime, to leaking pipes and building permits.

But he also deflected some questions to his top officials, nearly a dozen of whom flanked him in a city auditorium.

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Politics & Government
7:15 pm
Fri June 22, 2012

Bing decries Council "sideshow," says he 'll no longer deal with city lawyers

Detroit Mayor Dave Bing went to the Detroit City Council Friday to formally tell them he wants to get rid of the city’s top lawyer.

Instead, he walked out of an abruptly-recessed meeting he later called a “sideshow.”

Bing has been at odds with Detroit’s corporation counsel, Krystal Crittendon, for weeks now.

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Politics & Government
6:35 pm
Tue June 19, 2012

Top Detroit lawyer refuses request to resign; Bing will take case to City Council

Krystal Crittendon
City of Detroit

Detroit Mayor Dave Bing has asked the city’s top lawyer, Krystal Crittendon, to resign—and she’s refused.

Now, Bing says he’ll make a case for removing her to the Detroit City Council.

Crittendon recently went against Bing’s wishes by pressing a legal challenge to the city’s consent agreement with the state.

Crittendon said she was obligated to do that because she believed the consent agreement violated the city charter. And she insisted the charter allowed her to act independently of Bing.

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Politics
7:12 pm
Thu June 14, 2012

Detroit City Council approves financial board picks, moves ahead with consent agreement

The Detroit City Council is moving ahead to implement the city’s consent agreement with the state.

The Council had delayed appointing its two members to a nine-member financial advisory board while the city’s corporation counsel challenged the consent deal in court.

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Politics
8:42 am
Thu June 14, 2012

In this morning's news...

In this morning's news...
Brother O'Mara Flickr

Detroit pulls back from the brink... again

In another down-to-the-wire showdown, an Ingham County Judge ruled yesterday that Detroit's top lawyer had no standing to halt a consent agreement between the state and the city. If she had been successful, there were warnings the city would go bankrupt in a matter of days.

Sarah Cwiek follows the Detroit drama for Michigan Radio and she caught up with Mayor Dave Bing after the judge's ruling:

“We need to get on with running the city," Bing said. "The city is still in a crisis. And we can’t have all of these distractions and think we’re going to bring the city back.”

The first steps: convening the city’s nine-member financial advisory board. That’s a key provision of the consent agreement. Bing says they’ll meet for the first time Friday.

Signs of improving housing situation in Michigan

Bank repossessions of homes in Michigan have dropped more than 40 percent over the last year.

Michigan Radio's Steve Carmody reports the Metro Detroit area's home foreclosure rate fell faster last month than any other of the nation’s 20 largest cities.

Carmody spoke with Daren Bloomquist, a Realty Trac vice president:

“We’re seeing about the same number of properties start the foreclosure process in Michigan as we saw a year ago,” says Bloomquist,  “But, we’re seeing fewer...much fewer of those actually make it to a completed foreclosure where the property is repossessed by the bank.”

Michigan's unemployment rate ticks upward

Michigan’s unemployment rate for May increased by two-tenths of a percentage point to 8.5 percent.

What does it all mean?

The Michigan Department of Technology, Management & Budget says it means more people are actively looking for work, which means they get counted as "unemployed" (you only get counted as unemployed if you've been searching for a job in the last month):

“Michigan’s labor market in May and throughout early 2012 has been stable,” said Rick Waclawek, director of the Bureau of Labor Market Information and Strategic Initiatives. “The minor upturn in the state’s jobless rate in May was partially due to individuals entering or reentering the workforce looking for jobs.”

Politics
5:05 pm
Wed June 13, 2012

Judge dismisses lawsuit challenging Detroit consent agreement

Judge William Collette of Ingham County Circuit Court dismissed a lawsuit by Detroit's top lawyer, Krystal Crittendon, this morning. She was challenging the city's consent agreement with the state. The judge ruled she didn't have standing to bring the case. We've been updating this post today.

Update 5:05 p.m.

Governor Rick Snyder said he’s also happy the judge threw out a legal challenge to the consent agreement the state made with the City of Detroit. The agreement was made to avoid the appointment of an emergency manager and to prevent the city from running out of money.  

"We’ve been continuing to work forward on our projects from the state perceptive while all this has gone on because we want to make sure we’re fulfilling our part of this," said Snyder. "It was a Detroit internal issue. I hope they continue to work hard to resolve their issue so they can continue to work hard to resolve their issues so they can work better between the mayor city council and corporate counsel."

Detroit's top lawyer argued the consent agreement was null and void because the state owes Detroit money. The state treasury denies that.

3:04 p.m.

Detroit Mayor Dave Bing says he’s happy a “distracting” court case brought by his own city attorney was dismissed Wednesday and the city can now follow through on its consent agreement with the state.

Bing said he was “not happy with” his corporation counsel’s decision to push the legal challenge—but insists that’s all in the past now.

“We need to get on with running the city," Bing said. "The city is still in a crisis. And we can’t have all of these distractions and think we’re going to bring the city back.”

The first steps: convening the city’s nine-member financial advisory board. That’s a key provision of the consent agreement. Bing says they’ll meet for the first time Friday.

11:59 a.m.

MPRN's Rick Pluta spoke with Michael Hodge, the lawyer who argued the case on Mayor Bing's behalf. Hodge said if the case went forward, it could have forced the city into bankruptcy this week.

From Pluta's report:

“The judge understood that financially, the stabilization agreement between the city and the state was an essential agreement to go forward and to continue to address the financial issues involving the city,” said Hodge.

Detroit Corporate Counsel Krystal Crittendon argued the agreement is not valid because the state owes the city millions of dollars. The judge’s decision does not address the question. The state Treasury says Detroit is not owed any money.

10:40 a.m.

Judge William Collette of Ingham County Circuit Court dismissed the lawsuit by Detroit's top lawyer Krystal Crittendon challenging the city's consent agreement with the state of Michigan this morning.

MPRN's Rick Pluta reports Judge William Collette said it was obvious Crittendon could not go forward with her lawsuit without the support of Mayor Bing or city council. He said Crittendon did not have the authority to file the lawsuit on her own.

Collette also said Detroit's consent agreement with the state of Michigan is in place and people will just have to live with it.

Mayor Dave Bing is holding a press conference at 11:15 a.m. Michigan Radio's Sarah Cwiek will be there.

And Gov. Risk Snyder will meet with members of the media at noon today. Michigan Radio's Lindsey Smith will bring us reaction from Mr. Snyder

Politics
3:04 pm
Wed June 13, 2012

Bing responds to court decision validating Detroit-Lansing consent agreement

Mayor Dave Bing and Governor Rick Snyder at a groundbreaking in Detroit last month.
Sarah Cwiek Michigan Radio

Detroit Mayor Dave Bing says he’s happy a “distracting” court case brought by his own city attorney was dismissed Wednesday, and the city can now follow through on its consent agreement with the state.

Bing said he was “not happy with” his corporation counsel’s decision to push the legal challenge—but insists that’s all in the past now.

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Politics
11:45 pm
Tue June 12, 2012

Lots of action, uncertainty as Detroit-Lansing standoff continues

The standoff between Lansing and some Detroit city officials over a lawsuit showed little sign of fizzling out Tuesday.

But it also appears the state might be looking for ways to give the city some leeway if the contentious situation continues much longer.

The standoff began last week when Detroit’s corporation counsel, Krystal Crittendon, went to court asking for a judge’s opinion about whether the consent agreement between the city and state should be voided.

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Politics
5:09 pm
Tue June 12, 2012

Detroit Council President: State 'irresponsible' for using threats

Charles Pugh, Detroit City Council President.
Charles Pugh

Detroit's top lawyer, Krystal Crittendon, plans to argue in court that the city's consent agreement with the state is not legal.

The Detroit News reports that Crittendon contends the state owes the city "more than $220 million in past-due state revenue sharing payments and millions of other unpaid bills." She says the city can't enter into a consent agreement with the state since the state is in default.

The state has denied they owe Detroit money, and Gov. Rick Snyder and state Treasurer Andy Dillon have said they'll withhold $80 million in revenue sharing payments to the city if the lawsuit goes forward.

Crittendon is expected to appear in Ingham County court tomorrow for an initial hearing.

Crittendon said it is her legal obligation to go forward with her lawsuit. From the Detroit News:

"Those of you who have worked with me should know that I take my legal, moral, ethical, professional and charter-mandated responsibilities very seriously," Crittendon wrote. "They are not for sale and will not be compromised."

Yesterday, Michigan Radio's Sarah Cwiek reported Detroit Mayor Dave Bing was unsuccessful in persuading city council to back his effort to stop Crittendon from moving forward with the lawsuit.

Today, we here more about council's reaction to the lawsuit and the state's threat of withholding money from the city.

Detroit City Council President Charles Pugh said state officials are "scaring the hell" out of Detroit by threatening to pull funding from the city. More from MLive's Jonathan Oosting:

Council President Charles Pugh today questioned reports that Detroit is poised to run out money this week and called the state "irresponsible" for threatening to withhold expected funding because of concerns over a pending lawsuit by the city's top attorney.

"They can have those concerns," Pugh told reporters this morning. "But you don't put the city at risk of not being able to pay our police officers and firefighters and scaring the hell out of citizens by saying we're going to run out of cash. That's irresponsible, and it makes me angry because we didn't have to get to this point."

Politics
3:50 pm
Mon June 11, 2012

Not much support in effort to get Detroit's top lawyer to drop lawsuit

Outside Detroit City Hall
Steve Carmody Michigan Radio

Detroit Mayor Dave Bing says the city will run out of money this week if a city lawyer doesn’t back off from a lawsuit challenging a consent agreement with the state.

Bing was hoping to unite City Council members behind his efforts to get that lawyer, Krystal Crittendon, to drop her legal action.

But at a contentious appearance before the Council this morning, Bing found little support.

And the mayor says that leaves the city vulnerable to going broke.

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Politics
12:55 pm
Mon June 11, 2012

Detroit Mayor to council, back off legal challenge

Today, Detroit Mayor Dave Bing asked the city Council to pass a resolution asking the city’s top lawyer to back off a legal challenge to Detroit’s consent agreement with the state.

State officials say that litigation compromises a complex bond transaction, and say until the legal challenge is dropped, they’ll withhold about $80-million promised in the consent agreement.

But most City Council members say lawyer Krystal Crittendon is only following the law, and they’d like a judge to rule on the consent agreement’s validity.

Council President Charles Pugh, who voted for the consent agreement, says he hopes Lansing “does the right thing.”

“And that’s not allowing the city to run out of money," said Pugh. "That would be so irresponsible, just because they don’t agree with the court action. Her opinion does not prevent the state from living up to its responsibilities.”

Mayor Bing says he doesn’t think the state is bluffing about letting the city go broke. He left the Council meeting to attend ongoing discussions with state officials.

News Roundup
10:46 am
Mon June 11, 2012

In this morning's news...

In this morning's news...
Brother O'Mara Flickr

Detroit in a game of revenue-sharing chicken with the state

Detroit's top lawyer, Krystal Crittendon, is challenging the legality of the city's consent agreement with the state in court. State officials are threatening to withhold millions of dollars in state revenue sharing payments if the lawsuit is not dropped.

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Politics
7:22 pm
Fri June 8, 2012

Bing: Detroit will go broke within a week if city lawyer doesn't back off lawsuit

Detroit Mayor Dave Bing at a recent Detroit groundbreaking.
Sarah Cwiek Michigan Radio

Detroit Mayor Dave Bing and his Chief Financial Officer, Jack Martin, warn the city could go broke as soon as next week.

That’s because Detroit’s top lawyer, Kyrstal Crittendon, filed a lawsuit challenging the validity of the city’s consent agreement with the state.

Crittendon argues the agreement is “void and unenforceable” because the state owes the city money—and it’s illegal to enter into a contract with a debtor.

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Politics
9:28 am
Fri June 8, 2012

In this morning's news...

In this morning's news...
Brother O'Mara Flickr

State threatens to pull revenue if consent deal challenge continues

Detroit’s top lawyer, Krystal Crittendon, is challenging the city's consent deal with the state of Michigan. State officials want the challenge to stop. The state Treasurer's Office sent the city a letter. From the Detroit Free Press:

The state Treasurer's Office warned the City of Detroit on Thursday that it could lose $80 million or more in state revenue sharing unless Mayor Dave Bing gets a lawsuit dropped by next week that challenges the city's financial stability agreement with the state.

Mayor Bing issued a statement last night saying he'd received the letter. Bing said Crittendon "believes she has the right to file the complaint."

However, as I have said before, this action only impedes our progress and places the City’s fiscal recovery in grave jeopardy. My team is working closely with the State to mitigate any negative impacts on my administration’s plan to financially stabilize the City. We want this matter resolved expeditiously for the sake of the citizens of Detroit.

Michigan House panel aims to put limits on abortion

A set of bills going through the legislature will put more restrictions on abortion providers in the state. A state House panel passed them yesterday, and now the bills are on the way to the state House floor. More from the Detroit News:

A House committee on Thursday advanced a three-bill package to the floor requiring abortion clinics to be licensed surgical centers, imposing new requirements for disposing of the remains of aborted fetuses and making it a crime to coerce a woman into terminating a pregnancy.

One of the bills includes a ban on late-term abortions for unborn children 20 or more weeks developed, with a narrow exception when the mother's life is at risk, said the bill sponsor, Rep. Deb Shaughnessy, R-Charlotte.

Polls show it's close between Obama and Romney in Michigan

Michigan is looking more and more like a swing state for either candidate. From the Huffington Post:

A poll released on Thursday by Lansing-based pollster EPIC-MRA has President Obama and Mitt Romney running neck and neck in Michigan, with Romney leading with 46 percent to Obama's 45 percent.

In a release, the Michigan Republican Party touted the results as evidence of Romney's growing strength in his home state. That would represent a shift from other polling conducted in the state, as well as EPIC's polling in April, which gave Obama a 4-point lead.

News Roundup
8:49 am
Mon June 4, 2012

In this morning's news...

Brother O'Mara Flickr

Federal investment in Detroit light rail? Ray LaHood in Detroit today

U.S. Transportation Secretary Ray LaHood will be in Detroit today to meet with a group of business leaders and government officials. The topic of discussion will be the on-again, off-again light rail system in Detroit.

More from MPRN's Rick Pluta:

The M-1 project on the main thoroughfare of Woodward Avenue could eventually connect with a regional system.

Governor Rick Snyder plans to attend. He says light rail is part of a strategy to make Michigan’s largest city as attractive to entrepreneurs and young people as Chicago or Boston...

Businesspeople and government officials hope for more federal financial support for the project, which would operate for several years before reaching the break-even point.

Detroit's top lawyer says consent agreement with the state is not legal

Detroit's consent agreement with the state of Michigan is facing a legal challenge by Krystal Crittendon. More from the Detroit News:

The city's top attorney, Krystal A. Crittendon, could single-handedly derail the historic consent agreement between the city and state if she can convince a judge to endorse her opinion that the document is illegal.

Michigan Radio's Sarah Cwiek reports Crittendon doesn't have the full support of Mayor Dave Bing and some city council members:

Mayor Dave Bing initially made conflicting statements about a legal challenge. He publicly opposed it, but then admitted he supported the “concept” of the letter.

But now Bing says litigation would be a distraction.

Officials with the state have called the challenge nonsense. They plan to move forward with the agreement.

Venus and the Sun come together for a once-in-a-lifetime show

Tonight, the planet Venus can be seen crossing in front of the sun. It's known as the "transit of Venus" and it only happens once around every one hundred years.

Michigan Radio's Lindsey Smith says she "stumbled across the transit while gulping down an awesome new beer at one of my favorite spots in Benton Harbor, The Livery Microbrewery."

People in Michigan will be able to see the transit of Venus for a roughly three hour window beginning at 6 o’clock and lasting until the sun sets.

The transit won’t happen again until the year 2117, so it’s a pretty big deal to professional and amateur astronomers alike.

“Oh yeah, we’re having a full out party,” said Richard Bell, President of the Kalamazoo Astronomical Society.

Politics
8:20 pm
Sun June 3, 2012

City of Detroit lawyer challenges consent agreement; state vows to "move forward"

Detroit’s top lawyer is going to court to challenge the city’s consent agreement with the state. But she doesn’t have the full support of Mayor Dave Bing, or some Detroit City Council members.

Corporation counsel Krystal Crittendon wrote a letter to state officials weeks ago.

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