Kevyn Orr

Politics & Government
8:41 am
Sat October 26, 2013

Detroit City Council has no alternative to $350M loan plan to pay off city's debt

Downtown Detroit (file photo)
Steve Carmody/Michigan Radio

DETROIT (AP) - The Detroit City Council has decided not to push an alternative to a $350 million loan designed to help the city pay off some of its massive pension debt.

Council members on Friday discussed the competing plan to the post-bankruptcy petition financial proposal engineered by state-appointed emergency manager Kevyn Orr.

About $230 million from Barclays would be used to fully pay off a complicated pension debt deal involving two major creditors. The rest would be used to improve basic city services.

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Law
8:00 am
Wed October 23, 2013

Is Detroit eligible for bankruptcy? Crucial trial starts today

A trial to determine Detroit’s fate in municipal bankruptcy starts Wednesday.

Judge Steven Rhodes will hear arguments from city lawyers about why Detroit qualifies for Chapter 9 protection.

University of Michigan law professor and bankruptcy expert John Pottow says some city creditors will argue that Detroit’s bankruptcy filing was pre-determined--and there was no good-faith bargaining process, as the federal bankruptcy code requires.

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Politics & Government
7:42 am
Wed October 23, 2013

In this morning's headlines: Detroit bankruptcy trial and fracking rules

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Bankruptcy eligibility trial begins today

"A trial to determine Detroit’s fate in municipal bankruptcy starts today. Judge Steven Rhodes will hear arguments about whether the city qualifies for Chapter Nine protection," Sarah Cwiek reports.

Judge says Detroit EM candidate names  should be revealed

"A Wayne County judge has ruled that state officials must turn over a list of possible candidates for the Detroit emergency manager job," Cwiek reports. This comes after a union activist filed a lawsuit saying the state violated the Open Meeting Act when it appointed Detroit's emergency manager Kevyn Orr.

DEQ proposes new rules for fracking

The Department of Environmental Quality has proposed new rules for fracking in Michigan. "The rules will require disclosure of chemicals used by developers, and make it easier for people to track where “fracking” is occurring," Rick Pluta reports

Politics & Government
9:51 pm
Tue October 22, 2013

State must release names of candidates considered for Detroit emergency manager job

State officials must turn over the names of all candidates considered for Detroit’s emergency manager job.

A Wayne County Circuit judge court ordered that information be made public Tuesday.

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Politics & Government
7:25 am
Tue October 22, 2013

In this morning's headlines: NERD fund gone, HiPark financial trouble, Det Council rejects loan deal

Morning News Roundup, Tuesday, Oct. 22, 2013
User: Brother O'Mara Flickr

Gov. Snyder shuts down NERD fund

"Governor Rick Snyder’s controversial NERD Fund will be shut down this week and replaced. Its official name is the New Energy to Reinvent and Diversify Fund. Governor Snyder used the fund to pick up costs he says should not be paid by taxpayers," Rick Pluta reports.

Highland Park could have an Emergency Manager soon

A state board has determined that the city of Highland Park has probable financial distress. Gov. Rick Snyder will next appoint a review team which could lead to an appointment of an emergency manager. According the Associated Press, "The Local Emergency Financial Assistance Loan Board also determined there is no probable financial distress in Ecorse Public Schools. A similar hearing is scheduled Wednesday for Royal Oak Township."

Detroit City Council rejects loan deal from EM

"The Detroit City Council has rejected a proposed $350 million loan deal. Emergency manager Kevyn Orr . . . planned to use most of the $ 350 million to pay off two banks. That’s controversial because he’s proposed much steeper cuts for other Detroit creditors. Bankruptcy court Judge Steven Rhodes will have to sign off on the deal," Sarah Cwiek reports.

Politics & Government
9:14 pm
Mon October 21, 2013

Detroit Council hopes to send message by rejecting loan proposal

The Detroit City Council has rejected a $350 million loan deal secured by Emergency Manager Kevyn Orr.

Orr announced the deal with the British financial giant Barclays earlier this month.

The plan was to use most of the money—about $230 million—to pay off two banks who profited from a bad interest rate swaps deal Detroit made on some pension debt years ago.

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Stateside
3:37 pm
Thu October 17, 2013

Keeping up with the Detroit bankruptcy trial

Detroit Emergency Manager Kevyn Orr.
Detroit Free Press video Detroit Free Press

An interview with the Detroit News columnist Daniel Howes.

    

Today, we’re checking in with Detroit News business columnist Daniel Howes, discussing what’s going on with the Detroit bankruptcy trial.

According to Howes, two phrases for us to consider this week are “status quo” and “collateral damage.”

How has the status quo failed? And what collateral damage would happen if Judge Steven Rhodes approves the Chapter 9 petition?

Listen to the full interview above. 

Politics & Government
11:15 pm
Tue October 15, 2013

Detroit CFO resigns over controversial comments

Kevyn Orr
Credit Sarah Cwiek / Michigan Radio

Detroit’s chief financial officer, Jim Bonsall, has resigned.

Bonsall had only been on the job since mid-July. He was brought in by Detroit emergency manager Kevyn Orr, after lobbying for the job through Governor Snyder’s office.

But Bonsall’s management style alienated some. And he came under investigation after a recently-demoted city employee reported racially-charged comments he made at a meeting.

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Politics & Government
8:32 pm
Mon October 14, 2013

Detroit City Council rejects Belle Isle lease, offers its own proposal

Belle Isle beach in July
Credit Sarah Cwiek / Michigan Radio

The Detroit City Council has rejected a proposal to lease Belle Isle to the state. But the Council is also putting forth its own, alternative lease deal.

Governor Snyder and emergency manager Kevyn Orr already signed a 30-year lease deal last month.

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Politics & Government
10:32 pm
Fri October 11, 2013

Detroit will borrow $350 million to pay off debts, boost services

Kevyn Orr
Credit Sarah Cwiek / Michigan Radio

The city of Detroit will borrow $350 million to help it through bankruptcy and restructuring.

Emergency manager Kevyn Orr announced the deal with the British financial giant Barclays Friday.

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Politics & Government
10:28 pm
Fri October 11, 2013

Detroit CFO suspended over "hostile and abusive" comments

Detroit’s new chief financial officer has been suspended.

The city’s former finance director, Cheryl Johnson, has accused Jim Bonsall of creating a hostile work environment, particularly for black women.

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Politics & Government
8:32 am
Thu October 10, 2013

Unions question Gov. Snyder under oath about Detroit bankruptcy

Detroit Mayor Dave Bing, Gov. Rick Snyder, and Emergency Manager Kevyn Orr.
mich.gov Michigan Government

Unions representing Detroit city workers and retirees got a chance to question Gov. Rick Snyder under oath Tuesday about the city’s historic bankruptcy filing.

A federal judge is set to begin hearings on whether the governor and Kevyn Orr — the emergency manager he appointed — properly filed for the largest municipal bankruptcy in U.S. history.

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Politics & Government
7:13 am
Fri October 4, 2013

In this morning's headlines: Bars open until 4am, DIA assets, private prison rejected

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Bars could stay open until 4 am

“Legislation at the state Capitol would let downtown bars and restaurants sell alcohol until 4 am. Michigan’s liquor code generally bans alcohol sales between 2 am and 7 am,” Jake Neher reports.

Detroit EM talks DIA assets

“Detroit's state-appointed emergency manager Kevyn Orr says the Christie's auction house will finish an assessment of city-owned pieces at the Detroit Institute of Arts this month, and he defends including their possible sale in the city's bankruptcy process,” the Associated Press reports.

State rejects private prison

“Michigan has rejected allowing a privately run, for-profit prison to house about a thousand inmates. The state turned down two bids because there was no savings for taxpayers,” Rick Pluta reports.

Stateside
5:47 pm
Thu October 3, 2013

Detroit's EM hints at how he might use DIA art to help city

Flickr

Detroit Emergency Manager Kevyn Orr has sent out the strongest hint yet that prized pieces in the DIA collection are on the table as a way to put money into the city coffers.

Without offering many details, Orr told the Detroit Economic Club today that there are ways for the DIA to make money from its artwork that might not involve outright sales, but perhaps would involve long-term leases.

Orr was clear -- he said he must consider ways to use the museum's treasures to help the bankrupt city.

And, earlier this week, another one of the city's "jewels" was back in the spotlight.

The State and Mayor Dave Bing announced an agreement under which the State DNR would run Belle Isle as Michigan's 102nd State Park.

Detroit News business columnist Daniel Howes joined us to talk about all this.

Listen to the interview above.

Politics & Government
4:28 pm
Thu October 3, 2013

Kevyn Orr talks privatization, pensions, DIA art at forum

Kevyn Orr
Credit Sarah Cwiek / Michigan Radio

Kevyn Orr talks frequently with Governor Snyder, considers himself a “technocrat,” and says everything  — including the Detroit Institute of Arts — is “on the table” in Detroit’s bankruptcy.

Orr addressed questions about the bankruptcy, city pensions, and the city’s progression through Chapter 9 municipal bankruptcy at a Detroit Economic Club forum Thursday.

Some of the highlights:

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Politics & Government
3:54 pm
Tue October 1, 2013

State and Detroit officials strike tentative deal to lease Belle Isle

Beach-goers at Belle Isle in July.
Credit Sarah Cwiek / Michigan Radio

The state of Michigan has signed a deal to lease Detroit’s Belle Isle.

Governor Snyder and emergency manager Kevyn Orr have both approved the plan.

The state won’t pay anything for the 30-year deal, which has two 15-year renewal options.

But the Michigan Department of Natural Resources will run Belle Isle as a state park, saving Detroit an estimated $4 million a year in maintenance costs.

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Politics & Government
12:29 pm
Tue September 24, 2013

Governor's nonprofit pays for Detroit EM's housing

Emergency Manager Kevyn Orr.
Detroit Free Press video Detroit Free Press

DETROIT (AP) — A nonprofit fund that Gov. Rick Snyder created is paying for housing and some other expenses for Detroit's state-appointed emergency manager.

The Detroit Free Press and The Detroit News report payments by the New Energy to Reinvent and Diversify Fund previously weren't disclosed.

Kevyn Orr was hired in March. Snyder spokeswoman Sara Wurfel says the fund paid $4,200 a month for Orr's condominium at downtown's Westin Book Cadillac since April. She says it also will cover Orr's commuting expenses to visit family in Maryland.

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Politics & Government
11:38 am
Fri September 20, 2013

Obama administration officials to visit Detroit

Downtown Detroit (file photo)
Steve Carmody/Michigan Radio

DETROIT (AP) - Officials from the administration of President Barack Obama are expected to visit Detroit next week to meet with community leaders, elected officials and others.

The Detroit Free Press and The Detroit News report the Sept. 27 meetings are part of ongoing discussions involving the White House amid Detroit's financial troubles. The city this summer made the largest municipal bankruptcy filing in U.S. history.

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Stateside
4:48 pm
Wed September 18, 2013

Detroit bankruptcy: Mediation talks begin

Time now for our weekly check-in with Detroit News Business Columnist Daniel Howes. On the front-burner: The mediation talks between Detroit Emergency Manager Kevyn Orr and dozens of lawyers representing the city's creditors.

Listen to the full interview above.

Politics & Government
11:15 pm
Thu September 12, 2013

Some Detroit retirees might lose health care, move to insurance exchanges

Kevyn Orr
Credit Sarah Cwiek / Michigan Radio

Detroit could end health care coverage for retired employees younger than 65.

Retiree health care costs make up about $6 billion of Detroit’s roughly $11 billion in unsecured debt.

City officials told Detroit pension trustees Wednesday that emergency manager Kevyn Orr is considering the plan. The idea isn’t new, though—Orr floated it as early as June, in his proposal to Detroit’s creditors before the city filed for bankruptcy.

Orr’s plan calls for the younger retirees to shifted onto the new insurance exchanges coming online with the Affordable Care Act.

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