Detroit Journalism Cooperative

Detroit's historic bankruptcy case is entering the home stretch. The crucial, final trial phase begins Tuesday in a Detroit courtroom.

The trial will decide the fate of a plan to wipe out billions of dollars in debt and help Detroit emerge from bankruptcy as a new, revitalized city.

This trial is a big deal, but don't expect anything with lots of courtroom drama. For one thing, it's federal bankruptcy court — and there's no jury.

Detroit bankruptcy judge Steven Rhodes.
John Meiu / Detroit Legal News Publishing LLC

A recent order from the court reads like a Facebook argument.

It started with Syncora, a major bond insurer that claims Detroit owes it more than a billion dollars.

The company filed an objection to the “grand bargain” that’s been coming together to save the Detroit Institute of Arts and protect the city’s pensioners.

Basically, Syncora says it and other Wall Street creditors are getting treated like the bad guys, while the DIA and the pensioners are clearly the hometown favorites.

Detroit skyline
user JSFauxtaugraphy / Flickr

Bridge Magazine writer Mike Wilkinson recently wrote a piece that explored the dollars-and-cents of Detroit, post-bankruptcy and beyond.

It's titled “Can Detroit Pay Its Bills Post-Bankruptcy?”

Wilkinson said though Detroit has been cash strapped for a while in terms of debt, it does generate a lot of money. It has the highest income tax and property tax in the state. It is the only city in the state allowed to levy a utility tax. And it has an averaged $179 million in casino taxes.

“It’s raising more money than Cincinnati, Chicago, Kansas City, Orlando, in terms of per person,” Wilkinson said.

Assuming that Kevyn Orr’s Plan of Adjustment is approved by Judge Rhodes, will this revenue be enough to pay the bills? Wilkinson wrote in his piece, “Revenues alone do not a budget make.”

And Eric Scorsone, an MSU professor and expert on city finances, said in order to answer that question, we must ask what will Detroit spend the money on?

“The truth is it would be very easy to overspend again as Detroit has in most of its history, and that’s going to be the real challenge for the political leadership of Detroit.” Scorsone said.

Detroit retirees voted overwhelmingly to approve emergency manager Kevyn Orr's plan of adjustment.

That plan includes the unprecedented "grand bargain"--a mixture of public and private funds that will minimize cuts to city pensions, while protecting the Detroit Institute of Arts' assets from other city creditors.

But retirees aren't the only group of creditors who voted on the plan. Other groups did as well--and not all voted "yes."

We should know how Detroit retirees voted on the proposed “grand bargain” later today.

City pensioners had until July 11th to vote on the city’s bankruptcy restructuring plan, formally known as the “plan of adjustment.”

The grand bargain is just one part of that plan.

It would use more than $800 million in combined state and private foundation dollars to backstop city pension funds, minimizing retiree losses.

Civil rights groups are asking to meet with Detroit officials about a controversial water shut-off campaign.

The ACLU and the NAACP want to meet with Detroit Mayor Mike Duggan and Emergency Manager Kevyn Orr to find a “fair, humane, and meaningful review process,” which would include adequate notice and a hearing to determine whether individual water customers can’t or won’t pay their bills.

Sean_Marshall / Flickr

I know what you’re thinking.

This building that once housed Wayne County’s administrative office is perhaps "one of the nation’s finest surviving examples of Roman Baroque Revival architecture, with a blend of Beaux-Arts and some elements of the Neoclassical style."

I was thinking the exact same thing.

Well, I was really thinking it’s a beautiful building in downtown Detroit and I hope it gets some attention.

Lester Graham / Michigan Radio

Detroit is going to hold a little get-together to persuade former residents to come back home.

Mayor Mike Duggan wants former Detroiters to visit the city for a homecoming. The idea is to attract people who wrote off their relationship with the city. The "Detroit Homecoming" is aimed to bring them back for a visit, a little flirtation. After all, Detroit should be getting through its messy bankruptcy by then. It will be a little brighter, with thousands of  new LED streetlights. The parks are being mowed.

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.

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”

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.

It’s been almost six months since Mike Duggan took over as mayor of Detroit. He took over a city however, run by someone else: state-appointed Emergency Manager Kevyn Orr.

But, that doesn’t mean Duggan has been denied all the rites of passage of the job including the schlep to Lansing to ask the state Legislature for something. Every mayor has to do it. And Duggan had to go to Lansing with a really big ‘ask.’ We’re talking about the $195 million dollar rescue package for his city (that’s right, ‘rescue,’ ‘settlement.’ Just don’t call it a ‘bailout.’)

Getting the Republican-led state House and Senate to go along with sending almost $200 million dollars to a Democratically-controlled city was not an easy task.

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.

Brian Wybenga

All this week, Michigan Radio and the  Detroit Journalism Cooperative are looking at city services and quality of life issues in the city of Detroit. Michigan Radio's assistant news director, Sarah Hulett, is a Detroit resident and brings us this essay about living with crime. 

If you’re on the fence about staying in Detroit or moving out, there’s an absurd and irrational sort of calculus you do when it comes to crime.

The city of Detroit says it’s sold $1 million dollars worth of vacant homes that will be fixed up and occupied. Nearly 70 auctioned properties have been sold.

These are purchase commitments from bidders, not cash in hand, but reaching the million-dollar mark gives Detroit Mayor Mike Duggan and the Detroit Land Bank some bragging rights.

Of the 16,000 properties the city owns, 2,000 are salvageable. At an open house of properties to be auctioned last month, Mayor Duggan said the city would start putting up two houses a day for auction.

Lester Graham / Michigan Radio

This week the Detroit Journalism Cooperative is looking at how the city of Detroit is functioning under bankruptcy. Until recently, almost half the streetlights of Detroit were dark. Thousands of new streetlights are replacing the old broken ones.

I caught up with one of several crews installing streetlights in neighborhoods around Detroit. James England is the foreman.

A DDOT bus in Detroit. People have been talking about the need for a regional transit authority for many years.
Sarah Hulett / Michigan Radio

We continued our week-long Detroit Journalism Cooperative series with a look at how Detroit is functioning under bankruptcy and the leadership of Mayor Mike Duggan.

Today, we focused  on mass transportation in the city.

Lester Graham of Michigan Watch and Megan Owens, the executive director of Transportation Riders United, joined Stateside.

Graham said one out of three Detroit households doesn't own a car and relies on the bus system. Megan Owens said it’s hard to measure whether things are improving because the bus service stopped publishing the daily pull-out rate. That’s the actual number of buses that operate versus the number scheduled for a day.

“So we don’t have any explicit data to show concrete improvements,” Owens said.

At the main garage at DDOT headquarters, they’re working to get more buses on the road.

Detroit needs 270 buses to properly serve its 100,000 passengers a day. The city only has 228 buses and a lot of them are broken down.

Read Lester Graham's report here

*Listen to full story above. 

Lester Graham / Michigan Radio

This week the Detroit Journalism Cooperative is looking at how the city is functioning under bankruptcy. Mayor Mike Duggan suggested he’d get a lot done in six months. We’re nearly there and took a look at progress with mass transportation in Detroit.

One out of every three Detroit households doesn’t have a car. They rely on the bus system. But it’s broken.

Lester Graham / Michigan Radio

This week Michigan Radio and the Detroit Journalism Cooperative are looking at how the city is functioning under bankruptcy. One of the biggest problems facing Detroit is the huge number of abandoned houses, buildings, and vacant lots. Here's a look at what’s changed in the six months since Mayor Mike Duggan took office.

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