Another $13 Million From EPA To Fight Asian Carp

Detroit Free Press

The Environmental Protection Agency announced $13 million in funding late today for measures that would help keep Asian carp out of the Great Lakes.

The funding will come from $475 million already approved by Congress this fall to help restore the Great Lakes.

The EPA said the money would go to efforts that would keep Asian carp in the Des Plaines and other rivers and canals from washing into the Chicago Sanitary and Ship Canal during floods.

That fear was raised in the past six months by environmental groups and others concerned about spread of the voracious invasive species of carp.

The money will also go to pay for more DNA testing to determine where Asian carp are in the Chicago waterways that lead to Lake Michigan. So far, that testing has shown the presence of flying silver carp seven miles from Lake Michigan.

Michigan members of Congress have been pushing hard in the last two weeks to make sure that various federal agencies dealing with the carp problem get the funding they need.

How The MEDC Is Tackling Jobs In Michigan

Business Week

By backing loans to small manufacturers, the Michigan Economic Development Corp. is helping companies diversify—if they add workers

Wolverine Metal Stamping in St. Joseph, Mich., has long been trying to diversify beyond automotive clients. To do so, Wolverine needs capital. That's been increasingly hard for small manufacturers to come by as their assets, used as collateral for bank loans, have depreciated during the recession and, in many cases, the auto industry's collapse. Now, a fund sponsored by the Michigan Economic Development Corp. (MEDC) is providing collateral so companies can get loans to shift away from autos. "Existing programs try to help the health of the lender," says Ned Staebler, vice-president for capital access at MEDC, citing the bank bailouts. "The commercial businesses need to be healthier too."

The depreciation of collateral has been severe. A company that had collateral valued at $6 million three years ago could now see those same assets appraised for $2 million, says Ed Mounce, commercial services manager at OMNI Community Credit Union in Battle Creek, Mich., because of the glut of real estate and equipment.

To buy the robots, steel, and presses it needs to diversify, Wolverine had lined up a $2.5 million loan from GE Capital (GE) as of September 2008. While a spokesperson says GE doesn't comment on individual credit decisions, Wolverine's chief financial officer, Bruce Weber, says GE backed out the day after Lehman Brothers collapsed. For over a year, he says, "we've been trying to get the exact same financing done"—but during that time Wolverine's machinery had depreciated by 20%. Meanwhile, the company booked $10 million in new business with such appliance makers as Whirlpool (WHR).

With help from the MEDC-sponsored Michigan Supplier Diversification Fund, the 65-person, $15 million Wolverine is finally getting its loan. OMNI is lending $2.5 million, while getting $1 million in so-called collateral support from the fund. To provide this backing, the fund makes deposits to lending institutions of up to 50% of a loan's value, to a maximum of $2.4 million. That money acts as cash collateral for the business, bolstering the bank's balance sheet and decreasing as the loan is paid down. In return, businesses pledge to create jobs. Weber says Wolverine has brought back almost half the 30 workers laid off this year and plans to rehire the rest by summer. MEDC's Staebler estimates that every $5,000 spent by the fund creates or saves a job. The fund expects a 5% to 6% default rate.

MEDC ran through its $13.2 million fund by making nine loans in four months. About 700 to 1,000 of the state's small manufacturers need funds to diversify. Trade organizations say Michigan companies could use $1 billion in such support, and Staebler says a $10 billion national program could save or create up to 2 million jobs.

Mark One was starting to diversify when it hit funding snags. The Gaylord (Mich.) company, with $10 million in sales, makes machinery used to clean and prep metal surfaces. In 2006, Mark One began developing a more efficient, chemical-free process, drawing interest from a large industrial packager that makes steel drums. Carmakers made up all of Mark One's sales four years ago, but contributed just 10% this year, leaving CEO Frank Kestler to rely on packagers and metal processors. "The banks were retreating from Michigan because of the decline in the automotive industry," Kestler says. With a $3 million loan from Huntington National Bank, backed by $1.2 million in collateral support, Mark One plans to double its staff of 50 in three years. That may do little to dent Michigan's 15.1% jobless rate, but it's a start.

Senate Sending $197M To Michigan

Detroit News

Michigan will receive nearly $197 million for 150 projects, plus a boost for Detroit's light rail project and embattled auto dealers, under a massive spending bill the Senate passed Sunday.

The $1.1 trillion omnibus spending bill, passed 57 to 35, goes to President Barack Obama, who is expected to sign it.

The legislation includes about $4 billion for 5,000 pet projects requested by members Congress.

Michigan's earmarks include money to help former prisoners stay away from crime, upgrade police radio and surveillance equipment, buy greener public buses, keep open battered women's shelters, improve airports, build bike paths and beautify streets, and install electronic record-keeping at health clinics.

"This funding will provide critical investments to create jobs across our state," said Sen. Debbie Stabenow, D-Lansing, who, along with Sen. Carl Levin, D-Detroit, voted for the legislation.

"These dollars will be used to expand our transportation sector to revitalize our communities ... support education programs and workforce training, as well as much-needed resources fro Michigan's military installations," Stabenow added.

The legislation also requires binding arbitration for the more than 1,350 dealers that General Motors Co. plans to close and would set up an appeals process for 789 Chrysler Group LLC dealers that were closed in June.

The legislation also enables Detroit to get over a key financial hurdle for the Woodward Avenue Light Rail project by requiring the Federal Transit Administration to count $120 million in private money for the first phase of the system to count in the local match needed to eventually qualify for federal funds.

Levin said that the match allowance is "bringing us one step closer to realizing the dream of light rail in Detroit," which would reach from Hart Plaza to Eight Mile Road.

Michigan funding includes:

• $38 million for military construction, including $8.9 million to replace troop quarter at the Alpena Combat Readiness Center, $7.1 million for an A-10 flight simulator and operations workspace for the 127th Wing A-10 Squadron at Selfridge Air National Guard Base, and $14 million for facilities for the 110th Fighter Wing at the Battle Creek Air National Guard Base.

• $28.2 million for the Great Lakes Fishery Commission to restock fish and control the sea lamprey.

• $500,000 to rehabilitate the Detroit City Airport's taxiway A and east end runway, and $730,500 for the Oakland County International Airport Terminal Building.

• $750,000 to renovate the roof of the historic Detroit Institute of Arts.

• $3.5 million for the Ann Arbor-to-Detroit Regional Rail project.

• $1 million for Detroit's Eastside Firearm Reduction Initiative, which would increase police visibility in the eastern and northeastern areas to reduce shootings, armed robberies and carjackings.

• $350,000 to install technology recognizing license plates in some Detroit Police cruisers to make it easier to find stolen or wanted vehicles.

• $1 million for the Thunder Bay National Marine Sanctuary and Underwater Preserve, which protects scores of historic shipwrecks.

• $1.3 million for construction of a Troy-Birmingham Multi-modal Transit Center, which would be a hub for regional public transportation, combining Amtrak rail, SMART bus services, and taxi connections.

"A new regional transit center will spur business growth, create jobs and allow residents and visitors to travel more easily in and out of Oakland County," said Rep. Gary Peters, D-Bloomfield Township, who pushed for the funds.

"Local residents have been pushing for more public transportation for years, and this transportation hub will be a cornerstone of a larger regional public transit plan," said Peters, who is meeting with local authorities Monday to discuss the next steps for the transit center.

The bill contains $447 billion for transportation, justice, health, education, veterans and several federal agencies that have been operating on a stop-gap measure set to expire Friday.

The bill also includes $650 billion in mandatory payments for federal benefit programs such as Medicare and Medicaid, and an average 2 percent pay raise for federal workers.

Republican opponents said the bill spends too much at a time of enormous federal deficits.

"Obviously we need to run the government, but do you suppose the government could be a little bit like families and be just a little bit prudent in how much it spends?" said Sen. Jon Kyl, R-Ariz.

But the he National Automobile Dealers Association was pleased by the dealer provision, which gives terminated dealers and those expected to be closed 45 days to file an appeal, after which a neutral arbitrator will weigh the economic interests of the manufacturer, dealer, and taxpayers, who provided $62 billion in funds to help GM and Chrysler survive.

"The amendment will provide a fair process to address dealer concerns about the recent closures of General Motors and Chrysler dealerships, and will give affected dealers transparency and the right to arbitrate to regain their dealerships," the group said in a statement.

Mark Reuss, GM's new North America president, has called the provision "a good thing" and "an opportunity for all of us to make the right decisions and move on." It's uncertain whether Chrysler will fight the provision, and spokeswoman Linda Becker did not respond to a request for comment.

Rep. John Conyers, D-Detroit, the chairman of the House Judiciary Committee, said the arbitration process will serve the interests of the automakers and dealers.

"Just as manufacturers need a strong and robust dealer network, dealers are critical parts of the distribution chain and important actors in their local communities, offering hundreds of thousands of jobs," Conyers said.

GM In Talks To Sell Old Saab Tech

Detroit Free Press

STOCKHOLM -- General Motors Co. is in talks to sell parts of Saab Automobile's old technology to a Chinese company and the entire brand to another buyer, a person familiar with the negotiations said Sunday.

The person said GM plans to sell the technology behind the Saab models 93 and 95 to Beijing Automotive Industry Holdings. The person spoke on condition of anonymity because they were not authorized to speak about the deals.

The person said the sale of the old technology to Beijing Automotive Industry Holdings will help GM financially but won't stand in the way of a deal to sell the entire Saab brand and its current production to another buyer. Negotiations for such a deal are also taking place, the source said, but declined to say with whom.

General Motors earlier this month said it will phase out the Saab brand if it doesn't find a buyer for the brand before the end of December. About 4,500 jobs at Saab are at stake.

However, GM said new potential buyers had emerged after Sweden's Koenigsegg Automotive AB dropped out of a deal to buy the company in November.

Beijing Automotive Industry Holdings was originally part of the Koenigsegg team and said it would re-evaluate Saab after that deal fell through. The Chinese company didn't return calls seeking comment Sunday.

Private equity firm The Renco Group Inc. and investor group Merbanco Inc. are reportedly also interested in Saab.

Annual Remodeling Report Finds 4 Best Improvements For Selling Your Home

MSN

House prices are still dropping, so it pays to know which upgrades will deliver the best return when you sell your home. An annual remodeling report finds 4 basic replacements are likely your smartest choice.

Remodeling is a better investment in some years than others. This year is among the worst if you’re hoping to recoup much money when you sell, says a newly released report. Homeowners are getting back just 64%, on average, of a project’s cost, compared with 87% in 2005, according to Remodeling Magazine’s 2009-2010 Cost vs. Value report.

Some projects pay back better than others. You get more bang for the buck putting money into a basement or attic upgrade than adding a wing to the house. Some of the highest-return projects include a deck addition and quick, conservatively priced replacements of old siding, entry door or windows. (If you want a different perspective, personal-finance guru Liz Pulliam Weston calls remodeling “a waste of money.”)

The report compiles responses from about 4,000 members of the National Association of Realtors in 80 cities to survey questions about 33 hypothetical projects. “I think what the real-estate agents are saying is you’re taking a big risk if you’re buying these high-ticket items, because the market is slow. Buyers are looking for utility,” says Sal Alfano, the magazine’s editorial director. “They’re not so wowed these days as they were three or four years ago.”

A retreat from overbuilding
Some contractors are dropping their rates to get work, so it might seem a good moment, if you have the money, to do a big, blow-out addition. And maybe it is, if you can keep the house long enough. But today, a high-end master suite remodel, for example, returns just 56% of the cost, on average, compared with 80% in 2005. 

“You’re not seeing the big 750-square-foot additions being put on the side of a house like you were a few years ago,” says Martin Conneely, owner of Conneely Contracting, in Arlington, Mass. “Our biggest (jobs) right now are maintenance replacements (of windows, doors, siding and roofing), basement renovations and moderately priced upgrades in the kitchen and bath.”

Despite widespread talk of falling labor prices among remodelers, the cost of construction overall hadn’t changed much.  Return on investment (ROI) is dropping because, in a market flooded with foreclosures, even if labor costs are dropping, the price of existing homes is at such a discount that anything newly built can’t compete.

The 22-year-old Cost vs. Value survey makes clear that return on investment depends greatly on where you live. The highest payback is in the Pacific region (Alaska, California, Hawaii, Oregon and Washington). There, although costs are double the next-most-expensive region (the Mid-Atlantic, including New Jersey, New York and home remodeling Pennsylvania), high resale values more than compensate.

Peter Michelson, CEO of Renewal Design-Build in Decatur, Ga., cautions homeowners to be aware that projects described and priced in this report can — and often do — cost considerably more than the amounts given.

ROI is better in the West South Central (Arkansas, Louisiana, Texas, Oklahoma), South Atlantic (Washington, D.C., Delaware, Florida, Georgia, Maryland, the Carolinas, Virginia, West Virginia) and East South Central (Alabama, Kentucky, Mississippi, Tennessee) regions.

Residents of the Mountain states (Montana, Idaho, Wyoming, Nevada, Utah, Colorado, Arizona and New Mexico) and New England (Maine, Massachusetts, Connecticut, New Hampshire, Rhode Island, Vermont) enjoy average returns.

It’s hardest to make a buck back on your project in the Middle Atlantic, West North Central (Iowa, Kansas, Minnesota, Missouri, Nebraska, the Dakotas) and East North Central (Indiana, Michigan, Ohio and Wisconsin) regions.

The math didn’t always come out so poorly. As recently as 2005, few homeowners bothered to figure out if their plans meant overbuilding for the neighborhood, Alfano says. They just commissioned the work they wanted and assumed prices would rise to cover their costs.

They were largely correct until 2006, when payback began shrinking along with the scale of jobs that homeowners were undertaking. “The projects that were evaluated as having the most return were not kitchens and baths so much anymore. All of a sudden it was these exterior replacements: roofing, siding and windows,” Alfano says.

It was the beginning of the end of the housing boom. “Today, resale value has come to the forefront. People are much more conscious of building for the neighborhood, and they’re worried about their mortgage rates and their jobs.”

Basic replacements rule
As a group, low-cost replacements — new siding, windows, doors and roofing — deliver the best bang for the buck now, a considerably better payback than from a two-story remodel or a kitchen remodel.

Given great improvements in materials, you can replace your inefficient 10- or 15-year-old products with highly efficient ones for a decent return when you sell. In addition, the improvements help you save on heating and cooling bills. Replacing leaky windows with highly efficient newer ones is a good example. The technology behind the glass and frames has so improved that you’re tightening up your home’s weatherproofing in the process. You get more comfort and, from the real-estate agent’s point of view, new windows show off your house from the street.

Replacement projects included in the Cost vs. Value survey all cost less than $20,000 and most cost considerably less. They instantly enhance curb appeal, boosting a home’s marketability, and they require little maintenance once installed - all of which are better prospects than with a home addition. A bonus: Most of these replacements qualify for a federal tax credit for energy efficiency (not included in Remodeling Magazine’s ROI calculations).

1. Replace the front door.

    * The absolute best return on the money of any of the projects surveyed — 129% of cost — is gained by replacing a beat-up front door with a $1,200 steel-shell door filled with foam insulation.
    * A new fiberglass door (more expensive, at $3,490) returns less, about 65%. (Fiberglass is the new chic building material because it’s rugged and durable, can be painted and will mimic almost any wood. Unlike wood, it doesn’t crack, warp or shrink and needs zero maintenance.)
    * Spend about $7,500 on an entire new entrance, including a widened opening, a solid-core wood door and high-end glass, new lighting and better locks, and you’ll recoup 69%, on average.

2. Replace home siding

    * Replacing old siding with a durable fiber-cement product ($13,287) recoups about 84% at resale.
    * Use vinyl siding ($10,607) to get an 80% return.
    * Foam-backed vinyl ($13,022) costs more and earns back less — roughly 79% — but it is much more efficient at insulating a home.

3. Replace windows. Three of the four window-replacement projects considered in the survey pay back about 77%:

    * Wood-trimmed windows ($11,700).
    * Lower-end vinyl windows ($10,728).
    * Windows trimmed in higher-end vinyl ($13,862).
    * The fourth project, higher-end wood-replacement windows ($17,816), has a return of about 72%. Fiberglass windows weren’t included in the study.

Replace the roofing: Spend $19,731 on new fiberglass asphalt shingles and you’re likely to recoup about 67% of the cost.

    * A higher-end roof replacement using standing-seam metal ($37,359) pays back about 61% of the cost, agents told the survey.

Additions aren’t cost-effective
Except for a new deck, which pays back nicely, adding to a home’s footprint brings a poor return these days.

A new deck
    * Wood is high-maintenance, but homebuyers love it: A new wood deck ($10,634) returns 81%.
    * New outdoor decks of midrange composite planks ($15,373) return around 71% of the cost at resale.
    * A higher-grade composite ($37,745) brings an ROI of about 61%.

Other additions
    * Adding a 200-square-foot sunroom ($73,167) recoups 51%. [Find a Sunroom Builder in Grand Rapids Michigan]
    * A high-end ($225,995) master suite project, adding 640 square feet to the house, including a bath with walk-in shower and stone walls, brings a 56% return.
    * A less ambitious, less costly ($103,696), 640-square-foot master suite addition including whirlpool bath and ceramic tile recoups 65%.
    * A garage addition ($87,230) earns back about 56%.
    * A high-end bathroom addition ($75,812) earns about 58% at resale.
    * Adding a midrange, 6-by-8-foot full bath ($39,046) recoups about 60%.
    * Add a midrange two-story wing ($156,309) to the house, including 24-by-16-foot first-floor family room and second-floor bedroom and full bath, for a return of about 69%.
    * A midrange family room addition ($82,756) returns around 65% of the cost.
    * Adding a sunroom or home office were the projects that yielded the least payback, presumably because these special-purpose rooms appeal to fewer buyers and are in less demand.

Best use of the money (besides replacements)
Upgrading existing space, such as a bathroom remodel, is the best bet for recouping cost. It makes sense: Pouring a foundation, framing a structure and bringing in electricity and plumbing are among the most expensive aspects of a building project. When you can largely skip these steps and increase your usable space, the payback is richer:

    * An attic conversion, including a 15-by-15-foot bedroom with dormer and a 5-by-7-foot bath with shower ($49,346) returns comparative gold: 83% return, on average. Agents in several cities said this job would return more than 100%.
    * A basement ($62,067) remodel —a 20-by-30-foot entertainment room and 5-by-8-foot full bath — recoups about 75% of its cost.
    * A midrange 5-by-7-foot bathroom remodel ($16,142) with standard fixtures and trim has a 71% ROI.
    * Expanding that bathroom to 100 square feet ($52,295), including moving plumbing and wiring and adding higher-end cabinets and fixtures, brings a 62% ROI.

Kitchens and baths: Scaled back but ever popular
High-end kitchens and baths are fading in popularity, replaced by “very practical things,” Michelson says. “The $400,000 and $500,000 jobs are few and far between. The jobs between $50,000 and $200,000, we’re doing lots of those.”

Bath and kitchen remodeling hasn’t stopped, since these projects maximize the enjoyment of the most-used spaces in a home. But “people are definitely being smarter with their money,” Conneely says. “For instance, a $75,000 remodel five years ago? That same client would today spend $50,000.” People who blithely bought the best of everything now pursue the same look by choosing materials judiciously.

    * A minor kitchen upgrade ($21,411) installing new cabinet fronts, laminate counters and other cosmetic improvements is a decent investment, at 78% ROI.
    * A major kitchen remodel ($57,215) using midrange materials — semi-custom cabinets and laminate counters — pays back about 72%.
    * A high-end major kitchen remodel ($111,794) with top-of-the-line cherry cabinets, stone counters, glass backsplash and expensive, built-in appliances, pays back just 63%.

V.P. Of Chevrolet To Retire

Detroit News

The management shakeup at General Motors Co. continued late Wednesday with the surprise retirement of Chevrolet Vice President Brent Dewar, who had been appointed to lead the automaker's largest and most important brand five month ago.

Dewar, 54, was appointed to the job by ousted CEO Fritz Henderson in July after serving as GM Europe's vice president, sales, marketing and aftersales.

He is being replaced by James Campbell, 45, who ran GM's fleet and commercial operations, and will serve as Chevrolet general manager.

Dewar's last day is April 1. GM said he is retiring to spend more time with his family and pursue personal interests.

"Jim has a strong track record of building relationships and partnerships with dealers and customers, and deep Chevrolet experience," said Susan Docherty, GM vice president of sales, service and marketing. "His energy, drive for results and willingness to take risks are great assets for leading the growing global Chevrolet brand."

Campbell, who joined GM in 1988, has been involved in several vehicle launches, including the Chevrolet Impala, Monte Carlo, Colorado and Corvette. During his career, he has worked in field sales, retail incentives, marketing and customer-relationship management.

The move comes five days after Chairman and CEO Ed Whitacre reshuffled senior management and promoted several younger managers. Also last week, GM's board of directors replaced Henderson after eight months on the job.

The Chevrolet position is a key job because GM anticipates the brand accounting for about 70 percent of its sales.

Chevrolet has arguably two of GM's most important launches next year with the Chevrolet Volt extended-range electric car and Cruze compact. The Volt is expected to help change perceptions about GM while the Cruze is expected to be a high-volume, fuel-efficient vehicle that gets up to 40 miles per gallon on the highway.

Kilpatrick Still Facing The Wrath Of Judges

Detroit Free Press

Kwame Kilpatrick’s day in court Monday ended the way it began — badly, and with a judge threatening a contempt hearing that could return him to jail.

For the fourth time in three months, prosecutors grilled the ex-Detroit mayor over whether he violated probation by failing to disclose assets in hearings that have unearthed revelation after revelation.

Today's shockers included Kilpatrick’s admission that he didn’t tell court officials about $20,000 in his bank account and $10,000 in the account of his wife, Carlita, despite orders to disclose his family’s assets. Prosecutors also revealed that Kilpatrick — whose lawyer has said he only had $6 a month left after expenses — spent more than $15,000 at the Plastic Surgery Center of Dallas on what Kilpatrick would describe only as “something very personal for my wife.”

Wayne County Circuit Judge David Groner warned Kilpatrick at the beginning and end of the hearing that he was not satisfied with a letter Kilpatrick provided explaining why the hearing had to be delayed for weeks.

The hearing was adjourned last month because Kilpatrick , who is now a computer software salesman, said it was critical that he be in Dallas to close a deal that could yield a $300,000 commission. Groner warned him at the time that he wanted a detailed letter from his employer confirming the importance of Kilpatrick’s presence.

After reviewing the letter, Groner started today's proceedings by saying, “I respectfully disagree with you that this answers the questions that I asked.”

He gave Kilpatrick 48 hours to come up with a better, more detailed letter — or face a contempt hearing that could ultimately land the ex-mayor back in jail.

It was an uncomfortable day for Kilpatrick on the witness stand.

For starters, prosecutors peppered him over his spending on everything from a $158 charge at a nail salon to a trip to a Gucci store to $800 for steaks to a $15,000 tab from a plastic surgery center.

Then, after grilling him about payments made by a non-profit fund to help his family move and rent a large home in Texas, prosecutors played two recordings of phone conversations between Kilpatrick and his wife, Carlita, made while the ex-mayor was in the Wayne County Jail.

Prosecutors played the tapes in an apparent bid to support their contention that Kilpatrick — who has testified he didn’t know who was paying the rent on his million-dollar home in Southlake, Texas — was very involved in negotiating lease deals for his family.

Prosecutors accuse Kilpatrick of spending lavishly while claiming he doesn’t have enough money to make restitution payments.

While listening to the recording of his wife telling him about their sons, Kilpatrick began tearing up and apparently became so moved that he walked out of the courtroom, stunning the judge.

Kilpatrick’s emotions covered the spectrum. At times defiant, sometimes compliant, he told prosecutors they weren’t interested in his ability to pay the city of Detroit $1 million in restitution, implying the hearing was more persecution than prosecution.

He declined to answer questions afterward, but his attorney, Michael Alan Schwartz, said he saw no point to the day’s proceedings, which continue Tuesday.

Schwartz, who also sparred with prosecutors, said they should be out looking at real crime.

In a day filled with revelations, several moments stood out.

Ex-mayor shied away from pressing wife for finances

Although Kilpatrick was supposed to disclose his wife’s finances to the court, he testified that he decided not to push the matter when she objected.

“I talked to my wife and we had a discussion and ... she then said that she’s not going to be a part of that and she’s not turning over to me anything to give to my lawyer.”

Assistant Wayne County Prosecutor Robert Spada wasn’t satisfied.

“Did you think to ask your lawyers to subpoena Carlita’s records... to supply to the court?” he asked.

“I asked them for advice, I didn’t ask them to subpoena her records,” Kilpatrick replied.

$850,000 from political war chest was paid to attorneys

Spada also quizzed Kilpatrick on why he didn’t tap his mayoral campaign war chest to help pay off $1 million restitution to the city he agreed to as part of his plea deal to resolve criminal charges stemming from the text scandal.

Kilpatrick, who also pleaded guilty to two counts of obstruction of justice, agreed to surrender his law license and not to run for office for five years. He must pay the $1 million before his five-year probationary period is up.

Kilpatrick says one of his lawyers advised that he did not have to use his political funds for restitution.

Instead, he paid about $850,000 to his attorneys from his re-election account, and wrote checks to a cousin and to the charity run by his sister.

Kilpatrick cousin Jacquelyn Watts, a former mayoral appointee, received $3,000 from his campaign fund. Watts was the bookkeeper for the fund.

The Next Vision Foundation, the Kilpatrick family charity run by his sister, Ayanna Kilpatrick, received a $5,000 payment.

When Spada asked Kilpatrick if he saw that his restitution order said all political funds were supposed to be used for restitution, the former mayor said, “I didn’t understand that one, either.”

Kilpatrick said he still owes about $650,000 to his lawyers. That amount doesn’t include whatever he owes Schwartz and Daniel Hajji, who are representing him in the restitution hearing.

Kilpatrick invokes privileges for defendants

On about 10 occasions, Kilpatrick invoked privileges afforded defendants.

He used the spousal privilege, which keeps conversations between husbands and wives private, and the Fifth Amendment defense against self-incrimination to avoid answering questions.

Kilpatrick generally used those protections when he was asked about his financial transactions.

Jailhouse conversations confirm he's no fan of Worthy

Even before Wayne County Prosecutor Kym Worthy charged Kilpatrick in 2008 with multiple felonies stemming from the text message scandal, Kilpatrick has not been a fan of Worthy.

Kilpatrick confirmed that he said “When we get the loot, we’re going to take her all the way out” to his wife during a phone call he made from jail. But Kilpatrick said he was not threatening Worthy.

The ex-mayor said he meant: “When we get the million dollars to pay off the restitution, the prosecutor will be out of the process.”

Carlita Kilpatrick wasn’t a fan, either.

During one of the jail calls, recording in November 2008, she said, as if addressing Worthy directly: “You will be forgiven up until this point right here. This is your last chance. After this, we’re going to whip the wrath of God on you.”

Kilpatrick and his wife likely knew their conversations were recorded: Calls made from the jail start with an automated warning that “This call is subject to monitoring and recording.”

Judge displeased by Team Kilpatrick's late return from lunch

Kilpatrick’s penchant for answering questions with long explanations irritated Judge Groner at several points in the hearing.

But nothing bothered the judge as much as when Kilpatrick and his legal team returned 17 minutes late from lunch at the Pegasus restaurant in nearby Greektown.

“If anyone could take time, it’s me, because it’s my court,” said Groner, who added that he didn’t have time to eat. “My position is if you set a time and date to be here, I find it kind of unusual that you would act like it’s no big deal.”

“"I don’t feel that it’s no big deal and I do apologize to the court and I’m sincerely sorry,”" Schwartz said.

Kilpatricks still tell each other, 'I love you'

Despite Kilpatrick’s affairs, the public scrutiny and, ultimately, the humiliation of having their private lives on the front pages, the recorded conversations indicate that Carlita and Kwame Kilpatrick still love each other.

After telling each other “I love you,” Kilpatrick told his wife to complete the search for their new home with this charge: “Go ahead and find us a crib.”