Original Story: freep.com
Detroit's nearly 6,000 casino workers authorized union leaders to call a strike if necessary in what has been a difficult and complex round of contract discussions between the Detroit Casino Council and the city's three gambling halls. A Detroit employment lawyer defends small businesses, insurance companies, and large corporations in labor and employment law matters.
Strike authorization votes are often mere formalities designed for negotiating leverage, but the timing in this case has a more ominous feel. That's because the Detroit Casino Council — a consortium of four unions that bargains on behalf of Detroit's casino workers — asked its members for the permission to call a strike just three days after state and federal mediators told the two sides to break for a "cooling-off" period.
A strike at the three casinos would threaten to shut down one of Detroit's major tourist attractions and the city's No. 1 source of tax revenue. Taxes from casino gaming have lately represented about 16% of the City of Detroit's total revenues, or just under $170 million.
The negotiations, which began Aug. 24, have dragged on longer than expected and have included the involvement of mediators from the start. Workers at Greektown Casino, MGM Grand Detroit, and MotorCity Casino are working under an extension of a contract that was originally set to expire Oct. 16. A Charleston labor attorney have experience defending clients in employment related matters involving instances of detrimental labor conditions or discriminatory employment practices.
On Oct. 30, "The mediators recommended that the parties take a 'cooling-off' period to allow time to review all open issues, formulate positions on those issues and prepare for bargaining on the important economic issues," MGM said in an update about the discussions to its workers on a Web site dedicated to the negotiations.
"I can tell you that health care has been the major stumbling block here," said Dave DeLong, secretary treasurer of Teamsters Local 372 and a member of the bargaining committee. "Our members would like to keep the current coverage that they have without any increased cost."
MGM says it expects health care costs for the three casinos will increase by $46 million, to almost $262 million, over the term of the next four-year contract. MGM has told unions workers that there will be very little money for wages or bonuses if the casino's health care costs are not reduced.
The two sides have explored a variety of ways to reduce health care costs that include the possibility of switching to TeamCare, a union-backed, multi-employer Taft-Hartley plan that uses the Blue Cross network. A Pittsburgh employment lawyer is following this story closely.
"It's up to the unions to decide what their priorities are," Marc Whitefield, a spokesman for the casinos, said in a recent update for workers. "People need to make a decision of how they want to spend money in these contract negotiations."
"MGM Grand Detroit remains committed to the negotiation process," Steve Zanella, president and chief operating officer of MGM Grand Detroit, said in an e-mail to the Free Press. "Along with the other Detroit casinos and the unions representing our workers, we are eager to work toward a contract that works for everyone."
Gayle Joseph, a spokeswoman for Rock Gaming, which owns Greektown Casino, said, "We believe the parties are negotiating in good faith and are committed to reaching a fair and balanced agreement.”
A spokeswoman for MotorCity declined to comment on the contract talks.
Gaming revenue has been on a roll this year, reversing what had been a gradual decline in gambling revenue since 2012. A Maine labor and employment lawyer is reviewing the details of this case.
Total gambling revenues were up 4.8% during the first six months of this year compared with last year, according to the Michigan Gaming Control Board, which regulates the casinos.
What's next?
UAW spokesman Brian Rothenberg said four negotiating sessions are scheduled in the coming weeks with the three casinos.
Nov. 9, 10, 16 and 17, according to MGM's website.
Unions involved
The Detroit Casino Council is a consortium of the four unions that bargain on behalf Detroit's casino workers. It includes employees represented by UAW Local 7777, Unite Here Local 24, Teamsters Local 372 and the International Union of Operating Engineers Local 324.
Casinos on a roll
Total gambling revenues were up 4.8% during the first six months of this year compared with last year, according to the Michigan Gaming Control Board, which regulates Detroit casinos.
Taxes from casino gaming have lately represented about 16% of the City of Detroit's total revenues, or just under $170 million.
The combined annual gambling revenue of the three casinos increased steadily from just over $1 billion in 2001 to $1.42 billion in 2011. In 2012, gambling revenue began to fall as four casinos opened in Ohio, including Hollywood Casino in Toledo.
Showing posts with label Detroit. Show all posts
Showing posts with label Detroit. Show all posts
04 November 2015
'REHAB ADDICT' NICOLE CURTIS UNHAPPY WITH DETROIT MEDIA
Original Story: freep.com
Celebrity rehab guru Nicole Curtis wanted you to see the house she has renovated in Detroit's historic Brush Park, but she apparently didn't want you to see the 139-year-old Venetian Gothic home until "Rehab Addict" airs Thursday night on HGTV. A Rochester real estate lawyer is following this story closely.
The home is owned by Quicken Loans, and was restored by Curtis of HGTV's "Rehab Addict."
The Detroit Free Press and several local media companies were invited to tour the Ransom Gillis mansion on Sunday, but upon arrival media members were told by Curtis that they could not take pictures of the inside of the home.
Hit the drama button: Photographers standing there loaded with gear, with nothing to shoot.
In the midst of the awkward moment, a Quicken Loans rep announced that photographers could take as many photos as they wanted. Curtis was not pleased; the annoyed celeb huffed: "I'm going outside." A Los Angeles real estate lawyer provides professional legal counsel and extensive experience in many aspects of real estate law.
Monday morning, Curtis posted a Facebook message criticizing the media for taking photos of the house even though the media was invited to Sunday's open house, and told they could take photos.
"I woke up this morning and see interior pics of our latest project splashed on every news outlet. It's disappointing, to say the least. I asked media to stick to the exterior. I did not speak further with them as I had 2,000 people in line and a very excited Tessa in my company," the post said.
"My crew has worked day and night -we have missed 3 months of 'quality' life experiences to get this done ... and instead of setting a house for photographers we chose to focus on the purpose of our opens ---bringing communities together for a cause. Trust when I say these events are exhausting -we didn't get home til after midnight. While we appreciate everyone applauding our work when you come through, that wouldn't be enough to motivate us to dedicate the time ( smile emoticon)) however, knowing how much love we can send one family's way by doing so ????? So worth it." A Boston real estate lawyer are proficient in real property development transactions and in real estate zoning and regulation laws.
The post has been removed. Curtis could not be reached for comment.
Quicken's public relations manager could not be reached for comment.
Celebrity rehab guru Nicole Curtis wanted you to see the house she has renovated in Detroit's historic Brush Park, but she apparently didn't want you to see the 139-year-old Venetian Gothic home until "Rehab Addict" airs Thursday night on HGTV. A Rochester real estate lawyer is following this story closely.
The home is owned by Quicken Loans, and was restored by Curtis of HGTV's "Rehab Addict."
The Detroit Free Press and several local media companies were invited to tour the Ransom Gillis mansion on Sunday, but upon arrival media members were told by Curtis that they could not take pictures of the inside of the home.
Hit the drama button: Photographers standing there loaded with gear, with nothing to shoot.
In the midst of the awkward moment, a Quicken Loans rep announced that photographers could take as many photos as they wanted. Curtis was not pleased; the annoyed celeb huffed: "I'm going outside." A Los Angeles real estate lawyer provides professional legal counsel and extensive experience in many aspects of real estate law.
Monday morning, Curtis posted a Facebook message criticizing the media for taking photos of the house even though the media was invited to Sunday's open house, and told they could take photos.
"I woke up this morning and see interior pics of our latest project splashed on every news outlet. It's disappointing, to say the least. I asked media to stick to the exterior. I did not speak further with them as I had 2,000 people in line and a very excited Tessa in my company," the post said.
"My crew has worked day and night -we have missed 3 months of 'quality' life experiences to get this done ... and instead of setting a house for photographers we chose to focus on the purpose of our opens ---bringing communities together for a cause. Trust when I say these events are exhausting -we didn't get home til after midnight. While we appreciate everyone applauding our work when you come through, that wouldn't be enough to motivate us to dedicate the time ( smile emoticon)) however, knowing how much love we can send one family's way by doing so ????? So worth it." A Boston real estate lawyer are proficient in real property development transactions and in real estate zoning and regulation laws.
The post has been removed. Curtis could not be reached for comment.
Quicken's public relations manager could not be reached for comment.
18 August 2015
ICONIC HANDBAGS IN DETROIT FEDERAL COURT’S CLUTCHES
Original Story: detroitnews.com
A fight over five iconic Hermes handbags is arguably the most colorful case in federal court in Detroit.
The leather bags — one purple, one turquoise, one orange, one lime green, one black — worth a total of almost $62,000 are at the center of a spat between a New Jersey luxury goods dealer and a Birmingham boutique. A Rochester business lawyer is following this story closely.
Only Authentics dealer Charles Rogers says Birmingham boutique owner Anthony Aubrey made a $20,000 deposit and received five new purses but stiffed him after agreeing to pay $61,500 for the carryalls, which are coveted by celebrities including Lady Gaga, Kim Kardashian and Jennifer Lopez.
The purses — four Hermes Birkin bags and one Hermes Evelyne Iris purse — cost about $12,300 each, almost as much as the per capita income of Detroiters.
Aubrey refused to return the bags or pay the balance, so Rogers filed the lawsuit July 16 in federal court in Detroit.
The lawsuit accuses Aubrey of fraudulent representation. That’s because Aubrey signed a contract to pay the $41,500 balance before trying to sell the purses to a third party for less money, according to the lawsuit. A Detroit business attorney represents clients in litigation, breach of contract issues, and collection of debt matters.
“It doesn’t make a lot of sense to my client. Why take the bags and sell for less unless he had no intention of paying the $41,500 balance?” said Daniel Dalton, a lawyer for Only Authentics.
Rogers wants U.S. District Judge Sean Cox to force Aubrey to return the purses or pay $124,500.
Dalton knew nothing about prices for Hermes Birkin handbags and was surprised when approached by his client.
“I was thinking he had sold a couple thousand purses, but he said there were only five. I said, ‘Are you kidding me?’ ” Dalton said.
The bags, created in the mid-1980s and named after English singer and actress Jane Birkin, range in price from $10,000 to $60,000.
“That’s insane,” said Tracy Garley, owner of Zarkpa’s Purses & Accessories on East Grand River in Detroit. “Some people love the brand name and there’s something about a purse a woman has when she walks in a room and feels like people are going to know they have money.”
Rogers specializes in new and vintage luxury handbags, purses that are expensive and elusive. Hermes Birkin bags are notorious because even the mega-rich often must sign up on a waiting list before buying.
Rogers’ company obtained the new handbags directly from buyers on the list, Dalton told The Detroit News.
“At this level, people buy them even if they don’t want them because they want to remain on the list,” Dalton said. “It’s unbelievable.”
In May, Rogers started swapping text messages with Aubrey, who runs Birmingham Estate & Jewelry Buyers, a boutique on Woodward, north of 14 Mile.
Aubrey wanted to buy five Hermes bags. Rogers agreed to sell them for $61,500. Aubrey paid $20,000 on May 14.
Five days later, Rogers mailed the bags after the boutique owner agreed to pay the balance later that month at a Las Vegas trade show, according to the lawsuit.
Aubrey, however, failed to pay the $41,500 balance. Dalton is unsure why.
“If he wants to resolve it, just give the bags back,” Dalton said.
The answer is simple, Aubrey told The News on Friday.
“He owed me money from prior purchases,” he said. “We were friends for years, but he didn’t want to pay so I said: ‘Enough.’ ”
After failing to pay Rogers, Aubrey allegedly sold some or all of the bags to a store in Baltimore, according to the lawsuit.
The Birmingham dealer is accused of selling them for less than the price he agreed to pay Rogers.
Rogers learned about the side deal and notified the Baltimore buyer, who returned the bags to Birmingham, according to the lawsuit. A Memphis business lawyer is reviewing the details of this case.
Aubrey said he no longer has the bags.
“Everything was sold,” he told The News. “(Rogers) knows the purses are already gone. I’m not worried about this.”
Besides, the Birkin bag market has deflated in Michigan. “Nobody buys in Michigan,” Aubrey said, “there’s no money here.”
A fight over five iconic Hermes handbags is arguably the most colorful case in federal court in Detroit.
The leather bags — one purple, one turquoise, one orange, one lime green, one black — worth a total of almost $62,000 are at the center of a spat between a New Jersey luxury goods dealer and a Birmingham boutique. A Rochester business lawyer is following this story closely.
Only Authentics dealer Charles Rogers says Birmingham boutique owner Anthony Aubrey made a $20,000 deposit and received five new purses but stiffed him after agreeing to pay $61,500 for the carryalls, which are coveted by celebrities including Lady Gaga, Kim Kardashian and Jennifer Lopez.
The purses — four Hermes Birkin bags and one Hermes Evelyne Iris purse — cost about $12,300 each, almost as much as the per capita income of Detroiters.
Aubrey refused to return the bags or pay the balance, so Rogers filed the lawsuit July 16 in federal court in Detroit.
The lawsuit accuses Aubrey of fraudulent representation. That’s because Aubrey signed a contract to pay the $41,500 balance before trying to sell the purses to a third party for less money, according to the lawsuit. A Detroit business attorney represents clients in litigation, breach of contract issues, and collection of debt matters.
“It doesn’t make a lot of sense to my client. Why take the bags and sell for less unless he had no intention of paying the $41,500 balance?” said Daniel Dalton, a lawyer for Only Authentics.
Rogers wants U.S. District Judge Sean Cox to force Aubrey to return the purses or pay $124,500.
Dalton knew nothing about prices for Hermes Birkin handbags and was surprised when approached by his client.
“I was thinking he had sold a couple thousand purses, but he said there were only five. I said, ‘Are you kidding me?’ ” Dalton said.
The bags, created in the mid-1980s and named after English singer and actress Jane Birkin, range in price from $10,000 to $60,000.
“That’s insane,” said Tracy Garley, owner of Zarkpa’s Purses & Accessories on East Grand River in Detroit. “Some people love the brand name and there’s something about a purse a woman has when she walks in a room and feels like people are going to know they have money.”
Rogers specializes in new and vintage luxury handbags, purses that are expensive and elusive. Hermes Birkin bags are notorious because even the mega-rich often must sign up on a waiting list before buying.
Rogers’ company obtained the new handbags directly from buyers on the list, Dalton told The Detroit News.
“At this level, people buy them even if they don’t want them because they want to remain on the list,” Dalton said. “It’s unbelievable.”
In May, Rogers started swapping text messages with Aubrey, who runs Birmingham Estate & Jewelry Buyers, a boutique on Woodward, north of 14 Mile.
Aubrey wanted to buy five Hermes bags. Rogers agreed to sell them for $61,500. Aubrey paid $20,000 on May 14.
Five days later, Rogers mailed the bags after the boutique owner agreed to pay the balance later that month at a Las Vegas trade show, according to the lawsuit.
Aubrey, however, failed to pay the $41,500 balance. Dalton is unsure why.
“If he wants to resolve it, just give the bags back,” Dalton said.
The answer is simple, Aubrey told The News on Friday.
“He owed me money from prior purchases,” he said. “We were friends for years, but he didn’t want to pay so I said: ‘Enough.’ ”
After failing to pay Rogers, Aubrey allegedly sold some or all of the bags to a store in Baltimore, according to the lawsuit.
The Birmingham dealer is accused of selling them for less than the price he agreed to pay Rogers.
Rogers learned about the side deal and notified the Baltimore buyer, who returned the bags to Birmingham, according to the lawsuit. A Memphis business lawyer is reviewing the details of this case.
Aubrey said he no longer has the bags.
“Everything was sold,” he told The News. “(Rogers) knows the purses are already gone. I’m not worried about this.”
Besides, the Birkin bag market has deflated in Michigan. “Nobody buys in Michigan,” Aubrey said, “there’s no money here.”
04 February 2015
FOR WALKING MAN JAMES ROBERTSON, 3 WHIRLWIND DAYS
Original Story: freep.com
Two days ago Detroiter James Robertson couldn't afford a car — and today he can afford a small fleet.
Just last week, Robertson was spending lonely hours walking 21 miles to and from his suburban factory job, treks forced by the Motor City's sky-high car insurance and the region's spotty bus service.
It's been a whirlwind three days. Calls and e-mails have flooded the Free Press sending him well wishes and offering him cars, jobs, rides to work and encouragement, Some who read his story just want to meet him — shake his hand or give him a hug.
"I gotta say, this is Detroit, this is how people are in Detroit. They say Los Angeles is the city of angels. That's wrong. Detroit is the real city of angels," Robertson said.
Robertson spent Monday and Tuesday being shuttled to interviews. National networks interviewed him Monday night. Radio stations and People magazine have talked to him as well. And through it all, the 56-year old factory worker has remained humble.
"I have to be careful how I act about this — the same God who brings you all these blessings can take them away, but hopefully I'm ready for what happens," Robertson said.
Sunday's story, still available to read at freep.com, told of how a full-time job and daily commutes of 21 miles on foot each day left him just two hours for sleep, eased at times when a friendly banker would stop in bad weather to give him rides. Immediately a college student got the ball rolling to raise money to buy Robertson a car, with an initial goal of raising $5,000. As of late Tuesday more than $254,000 has been donated.
At Mr. B's Food & Spirits bar in Rochester, Robertson hugged WSU computer whiz Evan Leedy, 19, of Macomb Township, in thanks for creating the fund-raising web page.
"I'm always going to be in your debt. I will never forget this," Robertson said, as the younger man in the sweater-hoodie shook his hand Monday night.
Many of those who saw the Free Press story were so impressed with Robertson's work ethic — he has a perfect attendance record — "they want to say you earned this money," Leedy told the older man.
The unprecedented power of the Internet turned what a generation ago might have been local civic leaders passing the hat into a digital phenomenon of thousand, across the globe, giving amounts from $1 to hundreds. Yet, as TV crews, magazine writers and even local radio legend Dick Purtan circled Robertson for interviews — and more cash poured into a GoFundMe Internet site set up by a Wayne State University student — this soft-spoken operator of an injection-molding press vowed that all the money and attention wouldn't change him.
By Tuesday afternoon, at Purtan's lakeside mansion in West Bloomfield, Robertson told the retired radio funnyman he had no intention of quitting his $10.55/hour job, no plan to leave bosses and coworkers he cares deeply about, no intention of ever moving from the neighborhood in central Detroit where he'd lived all his life. Purtan was moved, like countless others who've read about Robertson or seen the Free Press video of him making a commute through miles of snow in Oakland County last week.
"James, the work ethic is fabulous. You're an inspiration. Would you run for president? 'Cuz I'd vote for you," Purtan said into a radio mike at the mini-studio in his dining room that's heard over the web.
"I'd have to think about it," Robertson said, grinning. Then his mien turned serious: "If I can teach one person, or do something to help Detroit, that would make me the happiest man in the world."
The Free Press told the story on Sunday's front page of Robertson's arduous regimen of bus rides and foot-slogging to keep his suburban factory job after his aging Honda quit, his employer moved north nine miles from Madison Heights to Rochester Hills, and bus service was repeatedly cut back in metro Detroit, forcing him to walk longer and longer distances each day. Rochester Hills is one of scores of suburban communities whose residents declined to approve property-tax millage for SMART buses, so no fixed-route large buses run there, SMART officials said.
Two days ago Detroiter James Robertson couldn't afford a car — and today he can afford a small fleet.
Just last week, Robertson was spending lonely hours walking 21 miles to and from his suburban factory job, treks forced by the Motor City's sky-high car insurance and the region's spotty bus service.
It's been a whirlwind three days. Calls and e-mails have flooded the Free Press sending him well wishes and offering him cars, jobs, rides to work and encouragement, Some who read his story just want to meet him — shake his hand or give him a hug.
"I gotta say, this is Detroit, this is how people are in Detroit. They say Los Angeles is the city of angels. That's wrong. Detroit is the real city of angels," Robertson said.
Robertson spent Monday and Tuesday being shuttled to interviews. National networks interviewed him Monday night. Radio stations and People magazine have talked to him as well. And through it all, the 56-year old factory worker has remained humble.
"I have to be careful how I act about this — the same God who brings you all these blessings can take them away, but hopefully I'm ready for what happens," Robertson said.
Sunday's story, still available to read at freep.com, told of how a full-time job and daily commutes of 21 miles on foot each day left him just two hours for sleep, eased at times when a friendly banker would stop in bad weather to give him rides. Immediately a college student got the ball rolling to raise money to buy Robertson a car, with an initial goal of raising $5,000. As of late Tuesday more than $254,000 has been donated.
At Mr. B's Food & Spirits bar in Rochester, Robertson hugged WSU computer whiz Evan Leedy, 19, of Macomb Township, in thanks for creating the fund-raising web page.
"I'm always going to be in your debt. I will never forget this," Robertson said, as the younger man in the sweater-hoodie shook his hand Monday night.
Many of those who saw the Free Press story were so impressed with Robertson's work ethic — he has a perfect attendance record — "they want to say you earned this money," Leedy told the older man.
The unprecedented power of the Internet turned what a generation ago might have been local civic leaders passing the hat into a digital phenomenon of thousand, across the globe, giving amounts from $1 to hundreds. Yet, as TV crews, magazine writers and even local radio legend Dick Purtan circled Robertson for interviews — and more cash poured into a GoFundMe Internet site set up by a Wayne State University student — this soft-spoken operator of an injection-molding press vowed that all the money and attention wouldn't change him.
By Tuesday afternoon, at Purtan's lakeside mansion in West Bloomfield, Robertson told the retired radio funnyman he had no intention of quitting his $10.55/hour job, no plan to leave bosses and coworkers he cares deeply about, no intention of ever moving from the neighborhood in central Detroit where he'd lived all his life. Purtan was moved, like countless others who've read about Robertson or seen the Free Press video of him making a commute through miles of snow in Oakland County last week.
"James, the work ethic is fabulous. You're an inspiration. Would you run for president? 'Cuz I'd vote for you," Purtan said into a radio mike at the mini-studio in his dining room that's heard over the web.
"I'd have to think about it," Robertson said, grinning. Then his mien turned serious: "If I can teach one person, or do something to help Detroit, that would make me the happiest man in the world."
The Free Press told the story on Sunday's front page of Robertson's arduous regimen of bus rides and foot-slogging to keep his suburban factory job after his aging Honda quit, his employer moved north nine miles from Madison Heights to Rochester Hills, and bus service was repeatedly cut back in metro Detroit, forcing him to walk longer and longer distances each day. Rochester Hills is one of scores of suburban communities whose residents declined to approve property-tax millage for SMART buses, so no fixed-route large buses run there, SMART officials said.
05 January 2015
A NEW YEAR, NEW HOPE FOR LAWMAKERS
Original Story: freep.com
Resolutions are like flowers — pretty when they bloom on New Year's Eve, but often rather stale by the time any real reckoning for them comes around.
But they can also be useful divergences from the norm. A chance to dream, just for a bit, about things we might do better.
In Michigan, and southeast Michigan in particular, the list could be auspicious.
What if statewide, for instance, we committed to actually solving problems based on facts and merit, rather than indulging in hyperbolic ideology?
We're thinking specifically here about last year's legislative meltdown over roads, where the practical solution was obvious (more money for better maintenance along with tighter restrictions for the vehicles that do the most damage) but the agreed-upon abdication pushed all the decision-making to voters in a half-baked proposal. The anti-tax crowd cowed enough legislators to prevent the best, but politically difficult, ideas from winning the day.
It's instructive to compare the Legislature's handling of roads to the state's management of Detroit's financial crisis. After years of disinvestment and avoidance, the state actually stepped up to force tough decisions in its largest city. Billions in debt and liabilities were reorganized or chopped down, and a 60-year slide now seems poised to reverse.
Be it resolved that the Legislature take some cues from the handling of Detroit's financial woes in the way it addresses roads and a host of other issues like education and local government funding. Let's see how long the glow from that resolution lasts.
Locally, the best resolution can be summed up in two words: Don't blink.
Detroit's new financial lease on life is the opportunity of a generation, but there's much that needs doing to take full advantage — and that's not just for Detroiters. We can't afford to have key parties cower from the challenges that are now much more manageable, but still unfinished.
True, city government must deliver services better, primarily focused on blight removal and public safety. But it will still be somewhat cash-strapped, and the need for help from the outside — from quarters that have long sat on the sidelines as the city declined — could not be more acute.
Private interests who have held back investment in the city need to join companies like Quicken Loans, Blue Cross and General Motors, and jump into the revitalization of the city's Central Business District. State government, having helped the bankruptcy along with $200 million for the grand bargain, must commit to build on that investment with money for neighborhood revitalization and the building of real economic opportunity.
And Detroiters themselves must continue to insist that things can, and will, be better — by holding elected officials accountable and making strong choices at the ballot box.
Be it resolved that Detroit's potential turnaround becomes more real in 2015, by building on last year's historic momentum.
New year, new hope. Let's toast to it with fervor, but then get right back to work.
Resolutions are like flowers — pretty when they bloom on New Year's Eve, but often rather stale by the time any real reckoning for them comes around.
But they can also be useful divergences from the norm. A chance to dream, just for a bit, about things we might do better.
In Michigan, and southeast Michigan in particular, the list could be auspicious.
What if statewide, for instance, we committed to actually solving problems based on facts and merit, rather than indulging in hyperbolic ideology?
We're thinking specifically here about last year's legislative meltdown over roads, where the practical solution was obvious (more money for better maintenance along with tighter restrictions for the vehicles that do the most damage) but the agreed-upon abdication pushed all the decision-making to voters in a half-baked proposal. The anti-tax crowd cowed enough legislators to prevent the best, but politically difficult, ideas from winning the day.
It's instructive to compare the Legislature's handling of roads to the state's management of Detroit's financial crisis. After years of disinvestment and avoidance, the state actually stepped up to force tough decisions in its largest city. Billions in debt and liabilities were reorganized or chopped down, and a 60-year slide now seems poised to reverse.
Be it resolved that the Legislature take some cues from the handling of Detroit's financial woes in the way it addresses roads and a host of other issues like education and local government funding. Let's see how long the glow from that resolution lasts.
Locally, the best resolution can be summed up in two words: Don't blink.
Detroit's new financial lease on life is the opportunity of a generation, but there's much that needs doing to take full advantage — and that's not just for Detroiters. We can't afford to have key parties cower from the challenges that are now much more manageable, but still unfinished.
True, city government must deliver services better, primarily focused on blight removal and public safety. But it will still be somewhat cash-strapped, and the need for help from the outside — from quarters that have long sat on the sidelines as the city declined — could not be more acute.
Private interests who have held back investment in the city need to join companies like Quicken Loans, Blue Cross and General Motors, and jump into the revitalization of the city's Central Business District. State government, having helped the bankruptcy along with $200 million for the grand bargain, must commit to build on that investment with money for neighborhood revitalization and the building of real economic opportunity.
And Detroiters themselves must continue to insist that things can, and will, be better — by holding elected officials accountable and making strong choices at the ballot box.
Be it resolved that Detroit's potential turnaround becomes more real in 2015, by building on last year's historic momentum.
New year, new hope. Let's toast to it with fervor, but then get right back to work.
15 December 2014
WHERE ARE THE BLACK PEOPLE?
Original Story: detroitnews.com
Near the top of the list of the challenges Detroit faces as it starts its post-bankruptcy era is avoiding becoming two cities — one for the upwardly mobile young and white denizens of an increasingly happening downtown, and the other for the struggling and frustrated black residents trapped in neighborhoods that are crumbling around them. A Detroit Business Lawyer assists clients in structuring, restructuring and liquidating corporate and non-corporate entities.
Nobody wants to inject race into the marvelous story of downtown's rebound, driven largely by young creatives who grew up in the suburbs and are now fiercely Detroiters. I don't either. It's a downer, and the last thing I want to be involved in is another conversation about race. Druther have a stick for my eye.
But with racial tension simmering across the country, Detroit must heed obvious warning signs.
It's a clear red flag when you can sit in a hot new downtown restaurant and nine out of 10 tables are filled with white diners, a proportion almost exactly opposite of the city's racial make-up.
It's a warning signal when you go to holiday events for major Detroit cultural institutions and charities, and you can count the number of African-American revelers on both hands.
It should stop us in our tracks — as it did me the other day — when a group of 50 young professionals being groomed for future leadership shows up to hear advice from a senior executive, and there's only one black member among them.
Pay attention to the stories about the cool kids who are leading the Detroit revival by starting businesses, social groups and nonprofits. Overwhelmingly, the subjects are white. A Detroit Real Estate Lawyer has experience representing clients in major urban development projects, downtown office facilities, and industrial centers.
I'm not disparaging the newcomers. Detroit was an opportunity sitting there for the taking, and they seized it. And what they're doing is miraculous. We can talk all day about why more African-Americans didn't do the same thing. It doesn't matter. We have to understand that we're buying trouble if we don't encourage more black participation.
This isn't about handouts or set-asides or affirmative action. Nor is it about gentrification, an absolutely ridiculous concern in a city that needs so much rebuilding. I don't even believe it's about racism.
Rather, it's about downtown employers making sure they're truly cognizant of the diversity of their workforces, and stretching a bit more to recruit and train native Detroiters, who will then help fill the lofts and nightspots.
It's about encouraging black entrepreneurs to come to or stay in the city, and recognizing there are cultural and opportunity gaps that have to be closed to create a vibrant base of small business started by people drawn from the city's neighborhoods.
And it's about the African-Americans who've already made it showing up in Detroit, putting their money and time into the city's civic, cultural and charitable organizations. Drawing affluent blacks back from the suburbs is also a key step.
Detroit is now the city of opportunity. Fairness demands that those who were here when no one else wanted to be share in the fruits of the comeback.
It's like playing with dynamite to have black Detroiters looking out of devastated neighborhoods at a downtown bustling with hope and hopeful young people, and not seeing their own children among that hip crowd.
Near the top of the list of the challenges Detroit faces as it starts its post-bankruptcy era is avoiding becoming two cities — one for the upwardly mobile young and white denizens of an increasingly happening downtown, and the other for the struggling and frustrated black residents trapped in neighborhoods that are crumbling around them. A Detroit Business Lawyer assists clients in structuring, restructuring and liquidating corporate and non-corporate entities.
Nobody wants to inject race into the marvelous story of downtown's rebound, driven largely by young creatives who grew up in the suburbs and are now fiercely Detroiters. I don't either. It's a downer, and the last thing I want to be involved in is another conversation about race. Druther have a stick for my eye.
But with racial tension simmering across the country, Detroit must heed obvious warning signs.
It's a clear red flag when you can sit in a hot new downtown restaurant and nine out of 10 tables are filled with white diners, a proportion almost exactly opposite of the city's racial make-up.
It's a warning signal when you go to holiday events for major Detroit cultural institutions and charities, and you can count the number of African-American revelers on both hands.
It should stop us in our tracks — as it did me the other day — when a group of 50 young professionals being groomed for future leadership shows up to hear advice from a senior executive, and there's only one black member among them.
Pay attention to the stories about the cool kids who are leading the Detroit revival by starting businesses, social groups and nonprofits. Overwhelmingly, the subjects are white. A Detroit Real Estate Lawyer has experience representing clients in major urban development projects, downtown office facilities, and industrial centers.
I'm not disparaging the newcomers. Detroit was an opportunity sitting there for the taking, and they seized it. And what they're doing is miraculous. We can talk all day about why more African-Americans didn't do the same thing. It doesn't matter. We have to understand that we're buying trouble if we don't encourage more black participation.
This isn't about handouts or set-asides or affirmative action. Nor is it about gentrification, an absolutely ridiculous concern in a city that needs so much rebuilding. I don't even believe it's about racism.
Rather, it's about downtown employers making sure they're truly cognizant of the diversity of their workforces, and stretching a bit more to recruit and train native Detroiters, who will then help fill the lofts and nightspots.
It's about encouraging black entrepreneurs to come to or stay in the city, and recognizing there are cultural and opportunity gaps that have to be closed to create a vibrant base of small business started by people drawn from the city's neighborhoods.
And it's about the African-Americans who've already made it showing up in Detroit, putting their money and time into the city's civic, cultural and charitable organizations. Drawing affluent blacks back from the suburbs is also a key step.
Detroit is now the city of opportunity. Fairness demands that those who were here when no one else wanted to be share in the fruits of the comeback.
It's like playing with dynamite to have black Detroiters looking out of devastated neighborhoods at a downtown bustling with hope and hopeful young people, and not seeing their own children among that hip crowd.
12 December 2014
SEMCOG PUSHES FOR MORE REVENUE TO FIX MICHIGAN’S ROADS
Original Story: detroitnews.com
Detroit — Members of the Southeast Michigan Council of Governments urged the Legislature on Thursday to move ahead and approve a gas tax increase to generate more revenue for the state’s crumbling roads.
SEMCOG presented a resolution that supported a Senate-passed plan and opposed a House effort because it fails “to generate rough revenue to reverse the deterioration of our roads.” A Grand Rapids Transportation Lawyer represents clients in Michigan Transportation Law matters.
At a meeting Thursday morning, SEMCOG officials — along with representatives from local governments and road commissions — criticized the House bills because they would “divert a significant existing revenue stream from public schools and divert significant revenues from local governments.”
House Bill 6082 calls for the additional sales tax revenue to be split three ways for road repairs: 39 percent to the Michigan Department of Transportation, 39 percent to county road commissions and 22 percent to cities and villages.
“Michigan is standing on the precipice of a historic opportunity,” SEMCOG executive director Kathleen Lomako said. “We see three potential outcomes: Our Legislature could fail to act, which means more crumbling roads and bridges, inadequate transit and unsafe winter roads. A Detroit Transportation Lawyer has experience in Michigan Transportation Law and represents clients in transportation claim recoveries.
“We could follow the direction of the House: Fund roads by jeopardizing the future or our schools, transit and local government services. This is not an acceptable solution. Or, our leaders can follow the direction set by the governor and the Senate: Fix the roads, support transit, protect our schools and local government services.”
That statement comes as legislative leaders attempt to hash out a deal to generate $1.2 billion in additional money for road repairs in a conference committee — and extending the sales tax to some services is a possible option.
The conference committee is composed of three senators and three representatives, with majority Republicans controlling four of the seats. If the panel can get two votes from members of the Senate and House, their reported legislation would be advanced to the floors of both chambers for a vote, potentially next week during the final three days of the lame-duck session.
According to SEMCOG, the Senate bill:
Provides $1.5 billion after four years phase in and residents will see an improved transportation system in two to three years. An Indianapolis Transportation Lawyer is following this story closely.
Eliminates fuel tax and creates tax on wholesale price of fuel, which is phased in and fully funded after four years.
Funds public transit through an existing formula.
Provides first state increase in funding of public transit since 1987.
According to SEMCOG, the House bill:
Raises $1.4 billion after eight years.
Directs funding to maintenance rather than reconstruction. No new funding for public transit.
Eliminates the fuel tax and creates a tax on the wholesale price of fuel. Legislation also eliminates the 6 percent sales tax on fuel, resulting in revenue losses to public schools and local governments.
SEMCOG recently released the results of its 2014 road evaluations, which concluded the metro area saw a staggering jump in the total miles of roads that should be repaired by completely rebuilding them from the soil on up. The study found that 1,900 miles of major roadways needed to be reconstructed, a jump of 500 miles compared to two years ago.
Another 1,900 miles are in need of preventive maintenance to keep them from slipping into poor condition. Only 650 miles of roadway in the metro area are considered to be in good condition, according to the SEMCOG evaluation.
On Thursday, the conference broke into laughter when Detroit Mayor Mike Duggan began his remarks with references to the city no longer being in a state of bankruptcy. A Denver Transportation Lawyer assists clients in the resolution of cases involving transportation law.
“I greatly appreciate not having to ask Kevyn Orr for permission to be here,” Duggan said. “We put Kevyn on a plane, and it was just like sending your kid off to college.”
Duggan said he supported Gov. Rick Snyder as well as the Senate bill on how to raise revenues for Michigan roads.
“All of us here are behind the governor,” Duggan said. “We lost power to a number of buildings here in Detroit last week due to failing infrastructure. Well, the same thing is happening to our roads.”
Duggan was followed by Macomb County Executive Mark Hackel who said the state “has a tremendous need for road funding.”
“There is a very limited amount of funding to do what needs to be done,” Hackel said.
“The Senate has a great plan. It raises funds but it doesn’t take away from local governments or the schools. We put the world on wheels but now people are embarrassed to put their wheels on our roads.”
Outgoing Wayne County Executive Robert Ficano said the state can no longer afford to “kick the can down the road.”
“With good roads, you’re much more attractive for economic development,” Ficano said. “The time to act is now.”
Washington Township Supervisor Dan O’Leary came straight to the point when he spoke in support of the Senate bills.
“I’m a little angry because I just had to pay $1,700 for repairs to my truck’s suspension,” O’Leary said. “That’s one thing people don’t talk about: the hidden tax that comes with poor roads.”
The last time the gasoline tax was raised was in 1997 when the Legislature raised it from 15 to 19 cents per gallon. Over the past decade gas revenues have gone into a steep decline due to motorists driving less with more fuel efficient vehicles.
At the same time the cost of concrete, asphalt, road salt, fuel, insurance and repairs have continued to rise.
Detroit — Members of the Southeast Michigan Council of Governments urged the Legislature on Thursday to move ahead and approve a gas tax increase to generate more revenue for the state’s crumbling roads.
SEMCOG presented a resolution that supported a Senate-passed plan and opposed a House effort because it fails “to generate rough revenue to reverse the deterioration of our roads.” A Grand Rapids Transportation Lawyer represents clients in Michigan Transportation Law matters.
At a meeting Thursday morning, SEMCOG officials — along with representatives from local governments and road commissions — criticized the House bills because they would “divert a significant existing revenue stream from public schools and divert significant revenues from local governments.”
House Bill 6082 calls for the additional sales tax revenue to be split three ways for road repairs: 39 percent to the Michigan Department of Transportation, 39 percent to county road commissions and 22 percent to cities and villages.
“Michigan is standing on the precipice of a historic opportunity,” SEMCOG executive director Kathleen Lomako said. “We see three potential outcomes: Our Legislature could fail to act, which means more crumbling roads and bridges, inadequate transit and unsafe winter roads. A Detroit Transportation Lawyer has experience in Michigan Transportation Law and represents clients in transportation claim recoveries.
“We could follow the direction of the House: Fund roads by jeopardizing the future or our schools, transit and local government services. This is not an acceptable solution. Or, our leaders can follow the direction set by the governor and the Senate: Fix the roads, support transit, protect our schools and local government services.”
That statement comes as legislative leaders attempt to hash out a deal to generate $1.2 billion in additional money for road repairs in a conference committee — and extending the sales tax to some services is a possible option.
The conference committee is composed of three senators and three representatives, with majority Republicans controlling four of the seats. If the panel can get two votes from members of the Senate and House, their reported legislation would be advanced to the floors of both chambers for a vote, potentially next week during the final three days of the lame-duck session.
According to SEMCOG, the Senate bill:
Provides $1.5 billion after four years phase in and residents will see an improved transportation system in two to three years. An Indianapolis Transportation Lawyer is following this story closely.
Eliminates fuel tax and creates tax on wholesale price of fuel, which is phased in and fully funded after four years.
Funds public transit through an existing formula.
Provides first state increase in funding of public transit since 1987.
According to SEMCOG, the House bill:
Raises $1.4 billion after eight years.
Directs funding to maintenance rather than reconstruction. No new funding for public transit.
Eliminates the fuel tax and creates a tax on the wholesale price of fuel. Legislation also eliminates the 6 percent sales tax on fuel, resulting in revenue losses to public schools and local governments.
SEMCOG recently released the results of its 2014 road evaluations, which concluded the metro area saw a staggering jump in the total miles of roads that should be repaired by completely rebuilding them from the soil on up. The study found that 1,900 miles of major roadways needed to be reconstructed, a jump of 500 miles compared to two years ago.
Another 1,900 miles are in need of preventive maintenance to keep them from slipping into poor condition. Only 650 miles of roadway in the metro area are considered to be in good condition, according to the SEMCOG evaluation.
On Thursday, the conference broke into laughter when Detroit Mayor Mike Duggan began his remarks with references to the city no longer being in a state of bankruptcy. A Denver Transportation Lawyer assists clients in the resolution of cases involving transportation law.
“I greatly appreciate not having to ask Kevyn Orr for permission to be here,” Duggan said. “We put Kevyn on a plane, and it was just like sending your kid off to college.”
Duggan said he supported Gov. Rick Snyder as well as the Senate bill on how to raise revenues for Michigan roads.
“All of us here are behind the governor,” Duggan said. “We lost power to a number of buildings here in Detroit last week due to failing infrastructure. Well, the same thing is happening to our roads.”
Duggan was followed by Macomb County Executive Mark Hackel who said the state “has a tremendous need for road funding.”
“There is a very limited amount of funding to do what needs to be done,” Hackel said.
“The Senate has a great plan. It raises funds but it doesn’t take away from local governments or the schools. We put the world on wheels but now people are embarrassed to put their wheels on our roads.”
Outgoing Wayne County Executive Robert Ficano said the state can no longer afford to “kick the can down the road.”
“With good roads, you’re much more attractive for economic development,” Ficano said. “The time to act is now.”
Washington Township Supervisor Dan O’Leary came straight to the point when he spoke in support of the Senate bills.
“I’m a little angry because I just had to pay $1,700 for repairs to my truck’s suspension,” O’Leary said. “That’s one thing people don’t talk about: the hidden tax that comes with poor roads.”
The last time the gasoline tax was raised was in 1997 when the Legislature raised it from 15 to 19 cents per gallon. Over the past decade gas revenues have gone into a steep decline due to motorists driving less with more fuel efficient vehicles.
At the same time the cost of concrete, asphalt, road salt, fuel, insurance and repairs have continued to rise.
SOURCE: FIRMS WILL CUT BANKRUPTCY FEES UNDER DEAL
Original Story: detroitnews.com
The city could have millions more to spend on services, now that firms that helped Detroit through its historic bankruptcy agreed Thursday to reduce their legal and consulting fees.
After more than a week of negotiations with federal mediators, the law firm Jones Day and the investment firm Miller Buckfire agreed to make “significant concessions” on fees, a source briefed on the talks told The Detroit News. Other firms that have billed the city for bankruptcy-related services also agreed to reduce their bills. It’s not yet clear how much each firm cut back. Detroit Lawyers have experience assisting clients in bankruptcy and restructuring cases.
The source said only that the overall money saved — about $25 million — would pay for a lot of police, firefighters and equipment for Detroit.
Details of the deals are expected to be made public Monday during a status conference before U.S. Bankruptcy Judge Steven Rhodes. The judge must approve the agreements.
The person briefed on the discussions told The News the amount of savings to the city may depend on how savings are defined. As one of Detroit's best law firms, Butzel Long attorneys have helped debtors, creditors, official and unofficial creditor and equity holder committees and acquirers.
Some of the companies, the source explained, cut fees, some gave back as “in kind” contributions and others agreed to not seek payment for future services from firms that Detroit will continue to use after the bankruptcy.
Mayor Mike Duggan has expressed concern escalating legal fees — which he said could climb to $177 million — would eat up money needed to revitalize the city.
Detroit Corporation Counsel Melvin “Butch” Hollowell said Thursday that the city is “pleased” with the mediation process, and thanked Chief U.S. District Judge Gerald Rosen and the federal mediation team.
“We will make no further comments until the status conference on Monday, or the court releases us from the mediation confidentiality,” Hollowell said.
Before the deals were reached, federal mediators held at least four formal sessions over the reasonableness of more than $140 million in fees billed to Detroit by its bankruptcy lawyers and restructuring consultants. The team held talks with about a dozen firms, while the city held earlier talks with about a dozen smaller firms to reach settlements.
The city’s lawyers and consultants pointed out during mediation they had already made significant concessions on fees.
By late October, Jones Day had charged Detroit $52.3 million.
Miller Buckfire renegotiated its contract with the city twice, most recently in June. In the newest contract, the firm was to receive a flat fee of $28 million for all of its services. Prior to revising its contract, the firm had already given the city a discounted rate, according to former Emergency Manager Kevyn Orr’s office.
The resolution comes one day after Detroit’s official exit from bankruptcy. Orr told The News on Wednesday that some administrative matters still need to be wrapped up, and that the legal fee mediation would not affect the exit date.
The mediation team, in a statement released Thursday, noted that representatives for the firms, Orr and Snyder — along with Duggan, City Council members and the city’s top attorney — “fully and vigorously” participated in the discussions.
“Their agreements reflect what the mediators hope will be their final work in the Detroit bankruptcy,” the statement reads. “As we have been from the inception of our work, the mediators are privileged and proud to have played a role not only in these agreements, but in all of the agreements that have led to the expeditious and successful resolution of the Detroit bankruptcy in which the city has been able to resolve its disputes with virtually all of its creditors and professional service providers on a consensual basis.” As one of Detroit's biggest law firms, Butzel Long has represented clients in every aspect of in-court and out-of-court restructurings.
On Wednesday, the mayor noted that the role of consultants in the city will be “dramatically reduced” as full-time employees are brought in to take over.
“All of the consultants are being phased out pretty quickly,” he said.
Orr, a former Jones Day attorney, told The News on Wednesday that the fees may seem high, but he said he didn’t believe they were out of line for a case of Detroit’s magnitude.
The bankruptcy allowed the city to shed $7 billion in debt and to restructure another $3 billion, he said.
“I’m sensitive to the fact that the fees are high. But everyone says this is a historical, outstanding result. Some mediators even called it miraculous,” Orr said. “You have to recognize there’s a cost to getting that kind of result in this time frame to deal with 50 years of issues.”
The city could have millions more to spend on services, now that firms that helped Detroit through its historic bankruptcy agreed Thursday to reduce their legal and consulting fees.
After more than a week of negotiations with federal mediators, the law firm Jones Day and the investment firm Miller Buckfire agreed to make “significant concessions” on fees, a source briefed on the talks told The Detroit News. Other firms that have billed the city for bankruptcy-related services also agreed to reduce their bills. It’s not yet clear how much each firm cut back. Detroit Lawyers have experience assisting clients in bankruptcy and restructuring cases.
The source said only that the overall money saved — about $25 million — would pay for a lot of police, firefighters and equipment for Detroit.
Details of the deals are expected to be made public Monday during a status conference before U.S. Bankruptcy Judge Steven Rhodes. The judge must approve the agreements.
The person briefed on the discussions told The News the amount of savings to the city may depend on how savings are defined. As one of Detroit's best law firms, Butzel Long attorneys have helped debtors, creditors, official and unofficial creditor and equity holder committees and acquirers.
Some of the companies, the source explained, cut fees, some gave back as “in kind” contributions and others agreed to not seek payment for future services from firms that Detroit will continue to use after the bankruptcy.
Mayor Mike Duggan has expressed concern escalating legal fees — which he said could climb to $177 million — would eat up money needed to revitalize the city.
Detroit Corporation Counsel Melvin “Butch” Hollowell said Thursday that the city is “pleased” with the mediation process, and thanked Chief U.S. District Judge Gerald Rosen and the federal mediation team.
“We will make no further comments until the status conference on Monday, or the court releases us from the mediation confidentiality,” Hollowell said.
Before the deals were reached, federal mediators held at least four formal sessions over the reasonableness of more than $140 million in fees billed to Detroit by its bankruptcy lawyers and restructuring consultants. The team held talks with about a dozen firms, while the city held earlier talks with about a dozen smaller firms to reach settlements.
The city’s lawyers and consultants pointed out during mediation they had already made significant concessions on fees.
By late October, Jones Day had charged Detroit $52.3 million.
Miller Buckfire renegotiated its contract with the city twice, most recently in June. In the newest contract, the firm was to receive a flat fee of $28 million for all of its services. Prior to revising its contract, the firm had already given the city a discounted rate, according to former Emergency Manager Kevyn Orr’s office.
The resolution comes one day after Detroit’s official exit from bankruptcy. Orr told The News on Wednesday that some administrative matters still need to be wrapped up, and that the legal fee mediation would not affect the exit date.
The mediation team, in a statement released Thursday, noted that representatives for the firms, Orr and Snyder — along with Duggan, City Council members and the city’s top attorney — “fully and vigorously” participated in the discussions.
“Their agreements reflect what the mediators hope will be their final work in the Detroit bankruptcy,” the statement reads. “As we have been from the inception of our work, the mediators are privileged and proud to have played a role not only in these agreements, but in all of the agreements that have led to the expeditious and successful resolution of the Detroit bankruptcy in which the city has been able to resolve its disputes with virtually all of its creditors and professional service providers on a consensual basis.” As one of Detroit's biggest law firms, Butzel Long has represented clients in every aspect of in-court and out-of-court restructurings.
On Wednesday, the mayor noted that the role of consultants in the city will be “dramatically reduced” as full-time employees are brought in to take over.
“All of the consultants are being phased out pretty quickly,” he said.
Orr, a former Jones Day attorney, told The News on Wednesday that the fees may seem high, but he said he didn’t believe they were out of line for a case of Detroit’s magnitude.
The bankruptcy allowed the city to shed $7 billion in debt and to restructure another $3 billion, he said.
“I’m sensitive to the fact that the fees are high. But everyone says this is a historical, outstanding result. Some mediators even called it miraculous,” Orr said. “You have to recognize there’s a cost to getting that kind of result in this time frame to deal with 50 years of issues.”
06 November 2014
ON WATER ISSUES, IT’S DETROIT VERSUS THE U.N.
Original Story: detroitnews.com
For the second time in recent months, the United Nations has looked at the fact that thousands of Detroit families are without water and determined that there are better, more humane solutions to the problem than those used by Detroit’s mayor.
A panel, which included two U.N. special rapporteurs, heard testimony on Oct. 19 at a hearing with hundreds in attendance at Wayne County Community College’s Fort Street campus. Having implemented his 10-point plan to deal with water shutoffs, Mayor Mike Duggan rebuffed the U.N. panelists who took testimony from Detroiters.
While the 10-point plan could be a starting point for negotiations (if the mayor were up for negotiating with anyone on this issue) both the plan and his response fail to recognize the reality the people of Detroit are facing.
Detroit is America’s poorest big city, with 38 percent of residents living at or below the poverty line and an unemployment rate of 14.6 percent. The United Way recently released a report that shows two-thirds of Detroiters can’t afford basic needs like transportation, housing and health care, even when people in their households are working full time. When you combine these dire numbers with the leaky pipes and bureaucratic foul-ups of the Detroit Water and Sewerage Department, you have a recipe for injustice and disaster.
The U.N.’s second condemnation of the massive water shutoffs is part of a chorus of public health advocates and officials that are demanding an alternative to depriving families of water. Those voices include National Nurses United, professor John Powell, co-chairman of the Population Health Council, and Dr. Mouhanad Hammami, county health officer for the Wayne County Department of Public Health. Hammami and Powell wrote an open letter calling the shutoffs a public health hazard and citing a double bind: People in poverty are already more likely to be in poor health. Being deprived of water only increases health risks.
In plain terms, the only humane solution is to create a plan where people at a certain income threshold pay for water based on their income. This would keep the water flowing to families that need it and the revenue flowing to a system that requires it. We would stop squeezing families struggling to make ends meet and instead make sure corporations who clearly have the ability to pay are no longer allowed to let their bills pile up without retribution.
We actually have a plan that was passed by the City Council in 2006. The Water Affordability Plan guarantees water and revenue based on people’s ability to pay. But one thing needed to implement the plan has yet to occur in City Hall — a paradigm shift. Recognizing how utterly crucial access to water is to families and embracing a practical plan to make sure families are never without it takes vision and courage.
It takes courage to acknowledge that you’ve been an accessory to devastating entire neighborhoods, as one North End Detroit resident said at the U.N. hearing. There is no one there to help when blocks of people are without water. Seniors that are housebound, renters who have to wait for landlords to turn the water back on, and children who have no control of family finances are among the hardest hit. But everyone needs water.
It may be hard for Mayor Duggan to hear and see the devastation continue to get international attention, but that’s not nearly as hard as life for thousands of residents who can’t afford the basics. The mayor’s plan needs to take that truth into account and adjust to fit the needs of the people, not the other way around.
Monica Lewis-Patrick is director of outreach for We the People of Detroit. Lila Cabbil is president emeritus of the Rosa Parks Institute. Both are members of the Detroit People’s Water Board.
For the second time in recent months, the United Nations has looked at the fact that thousands of Detroit families are without water and determined that there are better, more humane solutions to the problem than those used by Detroit’s mayor.
A panel, which included two U.N. special rapporteurs, heard testimony on Oct. 19 at a hearing with hundreds in attendance at Wayne County Community College’s Fort Street campus. Having implemented his 10-point plan to deal with water shutoffs, Mayor Mike Duggan rebuffed the U.N. panelists who took testimony from Detroiters.
While the 10-point plan could be a starting point for negotiations (if the mayor were up for negotiating with anyone on this issue) both the plan and his response fail to recognize the reality the people of Detroit are facing.
Detroit is America’s poorest big city, with 38 percent of residents living at or below the poverty line and an unemployment rate of 14.6 percent. The United Way recently released a report that shows two-thirds of Detroiters can’t afford basic needs like transportation, housing and health care, even when people in their households are working full time. When you combine these dire numbers with the leaky pipes and bureaucratic foul-ups of the Detroit Water and Sewerage Department, you have a recipe for injustice and disaster.
The U.N.’s second condemnation of the massive water shutoffs is part of a chorus of public health advocates and officials that are demanding an alternative to depriving families of water. Those voices include National Nurses United, professor John Powell, co-chairman of the Population Health Council, and Dr. Mouhanad Hammami, county health officer for the Wayne County Department of Public Health. Hammami and Powell wrote an open letter calling the shutoffs a public health hazard and citing a double bind: People in poverty are already more likely to be in poor health. Being deprived of water only increases health risks.
In plain terms, the only humane solution is to create a plan where people at a certain income threshold pay for water based on their income. This would keep the water flowing to families that need it and the revenue flowing to a system that requires it. We would stop squeezing families struggling to make ends meet and instead make sure corporations who clearly have the ability to pay are no longer allowed to let their bills pile up without retribution.
We actually have a plan that was passed by the City Council in 2006. The Water Affordability Plan guarantees water and revenue based on people’s ability to pay. But one thing needed to implement the plan has yet to occur in City Hall — a paradigm shift. Recognizing how utterly crucial access to water is to families and embracing a practical plan to make sure families are never without it takes vision and courage.
It takes courage to acknowledge that you’ve been an accessory to devastating entire neighborhoods, as one North End Detroit resident said at the U.N. hearing. There is no one there to help when blocks of people are without water. Seniors that are housebound, renters who have to wait for landlords to turn the water back on, and children who have no control of family finances are among the hardest hit. But everyone needs water.
It may be hard for Mayor Duggan to hear and see the devastation continue to get international attention, but that’s not nearly as hard as life for thousands of residents who can’t afford the basics. The mayor’s plan needs to take that truth into account and adjust to fit the needs of the people, not the other way around.
Monica Lewis-Patrick is director of outreach for We the People of Detroit. Lila Cabbil is president emeritus of the Rosa Parks Institute. Both are members of the Detroit People’s Water Board.
05 November 2014
TOM STEYER: MIDTERMS MARK THE START OF CLIMATE CAMPAIGN
Original Story: usatoday.com
DETROIT — Tom Steyer, one of the biggest political donors of the midterm elections, said his multimillion-dollar crusade to slow global warming rests on exposing the human consequences of fossil-fuel consumption. A Corpus Christi Energy Lawyer has experience assisting clients in negotiations of oil and gas exploration.
On a recent weekday, that quest took the California billionaire to a heavily industrial corner of southwest Detroit whose residents figure prominently in his campaign to disrupt American politics by making climate change a wedge issue in campaigns.
Sherry Griswold, who lives 600 feet from the neighborhood's sprawling oil refinery, has appeared in an ad produced by Steyer's super PAC to influence the Michigan Senate race — one of four competitive Senate contests the hedge-fund founder has targeted this year. He urged other residents to turn out on Election Day.
"The power that we have is the power to vote," he said to residents who gathered to meet with him at the Pine Grove Baptist Church.
Steyer and his NextGen Climate Action super PAC are engaged in an all-out fight to guarantee voters such as these will show up Nov. 4 to tip the balance in favor of Democrats struggling to maintain their majority in the U.S. Senate.
NextGen also invests in efforts to oust Republican governors in Maine, Florida and Pennsylvania and works to shape several state legislative races in California, Washington and Oregon.
In all, Steyer has plowed more than $42 million of his fortune into federal campaign accounts since early March 2013, making the San Francisco Democrat the largest super PAC donor of the 2014 election. His political organization has opened 40 offices, built a team of 800 employees and volunteers in its targeted states and made contact with more than 1.5 million voters.
Steyer has assembled an array of well-connected political strategists to advise him, including Chris Lehane, a former White House adviser to President Bill Clinton, and in Michigan, Amy Chapman, a veteran operative who oversaw President Obama's successful campaign in the state in 2008.
Steyer's goal is straightforward and ambitious: Get the United States "to transform its energy economy and to lead the world to transform its energy economy," he told USA TODAY during an interview in Detroit. An Austin Energy Lawyer is reviewing the details of this case.
In addition to Michigan, NextGen has pumped money into crucial Senate contests in Iowa, Colorado and New Hampshire. Three weeks before the election, public polls show Democrats locked in tight races in Iowa and Colorado.
Steyer said he's "super optimistic" about Democrats' prospects and believes his group's voter outreach could make the difference.
"I'm very, very convinced of the rightness of what we are doing," he said.
Steyer's fortune — pegged at $1.6 billion by Forbes — and his evangelical zeal for his cause have quickly made him the country's biggest name in environmental activism. He has emerged as the leading Democratic counterweight to the billionaires Charles and David Koch, who are at the center of a political network aiding conservatives. A single group tied to the Kochs, Americans for Prosperity, could spend $125 million in this election.
Along the way, Steyer has become a top target for Republicans who are quick to note that the hedge fund at the source of his vast wealth invested in the fossil fuel industry he denounces so fiercely.
MIDTERMS JUST THE START
During a whirlwind tour of Detroit, he met with the neighborhood activists, visited Griswold's home in the oil refinery's shadow and discussed policy with clean-energy advocates and executives.
He's eager to understand the ground game in Michigan — where his team has spent more than $3 million.
Over a breakfast of scrambled eggs at a hotel restaurant in downtown Detroit, Steyer peppered Chapman and other strategists with questions. He wanted to know how many canvassers and staffers were at work in the state. Answer: 135. How many college campuses targeted? Eight.
The Michigan team has hit on nearly 49,000 doors, according to NextGen's state director, Stephanie Chang. The goal: Turn out young people, minorities and others more likely to side with Democrats but who might not head to the polls during a midterm election.
In Michigan, Steyer has sought to cast Republican Senate candidate Terri Lynn Land as beholden to the oil industry and the Kochs. Americans for Prosperity, a non-profit group affiliated with the Kochs, has spent more than $2.5 million on television ads boosting Land this year.
In an e-mail, Land spokeswoman Heather Swift called Steyer a "California radical billionaire environmentalist" who is "trying to buy the Michigan Senate race" for Democrat Gary Peters.
During his interactions in Detroit, Steyer talked little about the Senate race itself.
Meeting with Griswold and other neighborhood residents, Steyer appeared energized, complimenting one activist on her jaunty straw fedora and promising to look for a way to help them better monitor air quality from the refinery and other heavy industry in the neighborhood.
(Jamal Kheiry, a spokesman for refinery owner Marathon Petroleum, said the plant "continuously" monitors air quality and consistently meets standards set by the Environmental Protection Agency.)
Urged on by one of the activists, Steyer joined the group in a prayer circle, closing his eyes and locking arms tightly with neighborhood resident Andre Driscoll and NextGen's national political director, Sky Gallegos.
He insists that the midterm elections are just the start of his mission.
"We are going to end up with a bunch of e-mail addresses attached to names and people who say they are committed climate voters," he said in the interview. The goal, he said, is to keep the conversation alive after Election Day.
Steyer, 57, dismisses speculation that he is laying the foundation for elective office — perhaps a run for California governor. But he doesn't rule out the possibility, either.
"If I thought there was a real reason to run that would move the ball forward, I would do it," he said. "But that's not what we are doing now. … I'm not doing this as a pretext for something else."
CHARGES OF HYPOCRISY
Before launching NextGen, Steyer was best known in politics for his work on California ballot initiatives. In 2010, he donated $5 million to successfully oppose a measure that would have weakened California's carbon emissions standards. He spent more than $30 million on a winning campaign for an initiative that raised corporate taxes and redirected a big share of the money to clean-energy projects.
He reached a turning point in 2012 when he decided to devote his time to climate change activism and emerged as one of the nation's most vocal opponents to the Keystone XL pipeline that would take carbon-heavy oil from the tar sands of Alberta, Canada, to Gulf Coast refineries.
That year, Steyer walked away from Farallon Capital Management, the hedge fund he founded. Farallon, named for a cluster of rocky islands off the Northern California coast, has $20.5 billion in assets under its management.
His critics say Steyer's political activism reeks of hypocrisy, given Farallon's investments in the oil and gas industry — including coal-fired plants in Asia and Kinder Morgan, a Houston company working to expand its rival pipeline to Keystone XL that will transport oil from the Alberta tar sands to a Pacific port.
"Steyer struck it rich by investing in 'dirty' energy, and then did an about-face when it became politically convenient," Republican Governors Association spokeswoman Gail Gitcho said in a recent news release announcing the group's website labeling him "Steyer the liar."
He has faced questions about whether he waited too long to unwind his investments in fossil fuels, a process completed in June.
He called the charges "complete nonsense."
"To leave the job at the end of 2012 and finish divesting, including on a private basis, by June 30, 2014 — so 18 months — you may think that's nothing. I think that's lickety-split," he said.
"When I got new information, I changed my mind, which is what we are asking everybody else to do," he said. "Take in the information and change."
Republicans have been enraged by his heavy spending as prominent Democrats, led by Senate Majority Leader Harry Reid, D-Nev., denounced the outsized role of money in politics and specifically the Kochs' spending. (In addition to investments in his own super PAC, federal records show, Steyer gave $5 million this year to the Senate Majority PAC, a super PAC run by operatives aligned with Reid that is one of the biggest outside players in Senate races this year.)
Steyer bristled at the comparison to the Kochs, who oversee a $115 billion industrial conglomerate that operates oil refineries, makes asphalt and manufactures a wide range of consumer products, including Brawny paper towels and Dixie cups.
"What they are doing helps them in a major way," he said. "It helps their economic interests."
He noted that most of his activity flows through his super PAC, which is required to disclose its funders and how it spends its money. Most parts of the Koch political network operate through tax-exempt arms that don't disclose contributors' identities.
"Both in terms of transparency and motive, it's very, very different," Steyer said.
Koch officials declined comment this week.
(The Kochs have maintained in recent years that they want the government to stay out of the marketplace and are not seeking any special treatment through their political activity.)
Steyer said the Koch conservative network will outspend him by "many multiples."
NextGen is not close to raising $50 million from other donors, a goal first described in a New York Times story last February, he said. (Steyer insisted that he never set that ambitious target and was surprised to see that number emerge.)
"I think people are very wary about the political process," he said of the difficulty attracting other donors. "They think … getting involved will put you in a position where you might get attacked."
CLIMATE CHANGE RANKS LOW
In Michigan, Peters has held a consistent lead over Land in recent polls.
The outside money from Steyer and others has helped make the 2014 Senate race the most expensive in state history, said Bill Ballenger, a veteran political analyst and founder of Inside Michigan Politics.
Ballenger said Peters' advantage may have less to do with Steyer's activism than the fundamentals of politics in Michigan, a state that has sent only two Republicans to the U.S. Senate in more than a half-century and where Obama easily won re-election in 2012.
"Most of the state doesn't really know much" about the environmental issues Steyer has highlighted in southwest Detroit, he said.
More broadly, national polls show that addressing global warming is not among the public's top concerns. Climate change ranked dead last among 13 issues surveyed in a Gallup Poll released Monday — trailing the economy and voters' worries about the Islamic State's activity in Iraq and Syria. In all, 40% of registered voters said it would be an important issue in their midterm voting.
Steyer remains undaunted and calls climate change "the generational issue" he and others are called to confront.
"It's not clear exactly how we're going to win," he told a dozen clean-energy advocates meeting with him in Detroit, "but it's pretty clear that we have to win."
DETROIT — Tom Steyer, one of the biggest political donors of the midterm elections, said his multimillion-dollar crusade to slow global warming rests on exposing the human consequences of fossil-fuel consumption. A Corpus Christi Energy Lawyer has experience assisting clients in negotiations of oil and gas exploration.
On a recent weekday, that quest took the California billionaire to a heavily industrial corner of southwest Detroit whose residents figure prominently in his campaign to disrupt American politics by making climate change a wedge issue in campaigns.
Sherry Griswold, who lives 600 feet from the neighborhood's sprawling oil refinery, has appeared in an ad produced by Steyer's super PAC to influence the Michigan Senate race — one of four competitive Senate contests the hedge-fund founder has targeted this year. He urged other residents to turn out on Election Day.
"The power that we have is the power to vote," he said to residents who gathered to meet with him at the Pine Grove Baptist Church.
Steyer and his NextGen Climate Action super PAC are engaged in an all-out fight to guarantee voters such as these will show up Nov. 4 to tip the balance in favor of Democrats struggling to maintain their majority in the U.S. Senate.
NextGen also invests in efforts to oust Republican governors in Maine, Florida and Pennsylvania and works to shape several state legislative races in California, Washington and Oregon.
In all, Steyer has plowed more than $42 million of his fortune into federal campaign accounts since early March 2013, making the San Francisco Democrat the largest super PAC donor of the 2014 election. His political organization has opened 40 offices, built a team of 800 employees and volunteers in its targeted states and made contact with more than 1.5 million voters.
Steyer has assembled an array of well-connected political strategists to advise him, including Chris Lehane, a former White House adviser to President Bill Clinton, and in Michigan, Amy Chapman, a veteran operative who oversaw President Obama's successful campaign in the state in 2008.
Steyer's goal is straightforward and ambitious: Get the United States "to transform its energy economy and to lead the world to transform its energy economy," he told USA TODAY during an interview in Detroit. An Austin Energy Lawyer is reviewing the details of this case.
In addition to Michigan, NextGen has pumped money into crucial Senate contests in Iowa, Colorado and New Hampshire. Three weeks before the election, public polls show Democrats locked in tight races in Iowa and Colorado.
Steyer said he's "super optimistic" about Democrats' prospects and believes his group's voter outreach could make the difference.
"I'm very, very convinced of the rightness of what we are doing," he said.
Steyer's fortune — pegged at $1.6 billion by Forbes — and his evangelical zeal for his cause have quickly made him the country's biggest name in environmental activism. He has emerged as the leading Democratic counterweight to the billionaires Charles and David Koch, who are at the center of a political network aiding conservatives. A single group tied to the Kochs, Americans for Prosperity, could spend $125 million in this election.
Along the way, Steyer has become a top target for Republicans who are quick to note that the hedge fund at the source of his vast wealth invested in the fossil fuel industry he denounces so fiercely.
MIDTERMS JUST THE START
During a whirlwind tour of Detroit, he met with the neighborhood activists, visited Griswold's home in the oil refinery's shadow and discussed policy with clean-energy advocates and executives.
He's eager to understand the ground game in Michigan — where his team has spent more than $3 million.
Over a breakfast of scrambled eggs at a hotel restaurant in downtown Detroit, Steyer peppered Chapman and other strategists with questions. He wanted to know how many canvassers and staffers were at work in the state. Answer: 135. How many college campuses targeted? Eight.
The Michigan team has hit on nearly 49,000 doors, according to NextGen's state director, Stephanie Chang. The goal: Turn out young people, minorities and others more likely to side with Democrats but who might not head to the polls during a midterm election.
In Michigan, Steyer has sought to cast Republican Senate candidate Terri Lynn Land as beholden to the oil industry and the Kochs. Americans for Prosperity, a non-profit group affiliated with the Kochs, has spent more than $2.5 million on television ads boosting Land this year.
In an e-mail, Land spokeswoman Heather Swift called Steyer a "California radical billionaire environmentalist" who is "trying to buy the Michigan Senate race" for Democrat Gary Peters.
During his interactions in Detroit, Steyer talked little about the Senate race itself.
Meeting with Griswold and other neighborhood residents, Steyer appeared energized, complimenting one activist on her jaunty straw fedora and promising to look for a way to help them better monitor air quality from the refinery and other heavy industry in the neighborhood.
(Jamal Kheiry, a spokesman for refinery owner Marathon Petroleum, said the plant "continuously" monitors air quality and consistently meets standards set by the Environmental Protection Agency.)
Urged on by one of the activists, Steyer joined the group in a prayer circle, closing his eyes and locking arms tightly with neighborhood resident Andre Driscoll and NextGen's national political director, Sky Gallegos.
He insists that the midterm elections are just the start of his mission.
"We are going to end up with a bunch of e-mail addresses attached to names and people who say they are committed climate voters," he said in the interview. The goal, he said, is to keep the conversation alive after Election Day.
Steyer, 57, dismisses speculation that he is laying the foundation for elective office — perhaps a run for California governor. But he doesn't rule out the possibility, either.
"If I thought there was a real reason to run that would move the ball forward, I would do it," he said. "But that's not what we are doing now. … I'm not doing this as a pretext for something else."
CHARGES OF HYPOCRISY
Before launching NextGen, Steyer was best known in politics for his work on California ballot initiatives. In 2010, he donated $5 million to successfully oppose a measure that would have weakened California's carbon emissions standards. He spent more than $30 million on a winning campaign for an initiative that raised corporate taxes and redirected a big share of the money to clean-energy projects.
He reached a turning point in 2012 when he decided to devote his time to climate change activism and emerged as one of the nation's most vocal opponents to the Keystone XL pipeline that would take carbon-heavy oil from the tar sands of Alberta, Canada, to Gulf Coast refineries.
That year, Steyer walked away from Farallon Capital Management, the hedge fund he founded. Farallon, named for a cluster of rocky islands off the Northern California coast, has $20.5 billion in assets under its management.
His critics say Steyer's political activism reeks of hypocrisy, given Farallon's investments in the oil and gas industry — including coal-fired plants in Asia and Kinder Morgan, a Houston company working to expand its rival pipeline to Keystone XL that will transport oil from the Alberta tar sands to a Pacific port.
"Steyer struck it rich by investing in 'dirty' energy, and then did an about-face when it became politically convenient," Republican Governors Association spokeswoman Gail Gitcho said in a recent news release announcing the group's website labeling him "Steyer the liar."
He has faced questions about whether he waited too long to unwind his investments in fossil fuels, a process completed in June.
He called the charges "complete nonsense."
"To leave the job at the end of 2012 and finish divesting, including on a private basis, by June 30, 2014 — so 18 months — you may think that's nothing. I think that's lickety-split," he said.
"When I got new information, I changed my mind, which is what we are asking everybody else to do," he said. "Take in the information and change."
Republicans have been enraged by his heavy spending as prominent Democrats, led by Senate Majority Leader Harry Reid, D-Nev., denounced the outsized role of money in politics and specifically the Kochs' spending. (In addition to investments in his own super PAC, federal records show, Steyer gave $5 million this year to the Senate Majority PAC, a super PAC run by operatives aligned with Reid that is one of the biggest outside players in Senate races this year.)
Steyer bristled at the comparison to the Kochs, who oversee a $115 billion industrial conglomerate that operates oil refineries, makes asphalt and manufactures a wide range of consumer products, including Brawny paper towels and Dixie cups.
"What they are doing helps them in a major way," he said. "It helps their economic interests."
He noted that most of his activity flows through his super PAC, which is required to disclose its funders and how it spends its money. Most parts of the Koch political network operate through tax-exempt arms that don't disclose contributors' identities.
"Both in terms of transparency and motive, it's very, very different," Steyer said.
Koch officials declined comment this week.
(The Kochs have maintained in recent years that they want the government to stay out of the marketplace and are not seeking any special treatment through their political activity.)
Steyer said the Koch conservative network will outspend him by "many multiples."
NextGen is not close to raising $50 million from other donors, a goal first described in a New York Times story last February, he said. (Steyer insisted that he never set that ambitious target and was surprised to see that number emerge.)
"I think people are very wary about the political process," he said of the difficulty attracting other donors. "They think … getting involved will put you in a position where you might get attacked."
CLIMATE CHANGE RANKS LOW
In Michigan, Peters has held a consistent lead over Land in recent polls.
The outside money from Steyer and others has helped make the 2014 Senate race the most expensive in state history, said Bill Ballenger, a veteran political analyst and founder of Inside Michigan Politics.
Ballenger said Peters' advantage may have less to do with Steyer's activism than the fundamentals of politics in Michigan, a state that has sent only two Republicans to the U.S. Senate in more than a half-century and where Obama easily won re-election in 2012.
"Most of the state doesn't really know much" about the environmental issues Steyer has highlighted in southwest Detroit, he said.
More broadly, national polls show that addressing global warming is not among the public's top concerns. Climate change ranked dead last among 13 issues surveyed in a Gallup Poll released Monday — trailing the economy and voters' worries about the Islamic State's activity in Iraq and Syria. In all, 40% of registered voters said it would be an important issue in their midterm voting.
Steyer remains undaunted and calls climate change "the generational issue" he and others are called to confront.
"It's not clear exactly how we're going to win," he told a dozen clean-energy advocates meeting with him in Detroit, "but it's pretty clear that we have to win."
04 November 2014
DETROIT PROPERTY AUCTION WINNER HAS OUTSTANDING LIENS
Original Story: detroitnews.com
Detroit — A businessman who won an auction of tax-foreclosed, blighted properties in Detroit has a string of tax debts himself.
Onetime casino investor Herb Strather met a deadline Wednesday for a down payment of 10 percent of the $3,183,500 he bid to buy 6,350 dilapidated properties. The lands — mostly vacant lots but also salvageable homes — were packaged in an online sale meant to discourage speculators and tax deadbeats.
Strather has at least $300,000 in recent tax liens and court judgments, but said his company, Detroit Bundle LLC, has the means to renovate salvageable properties and demolish dangerous ones. An Oakland County real estate lawyer has experience representing clients in real estate transactions.
"Our partners have plenty of money," said Strather, a developer of the Woodbridge Estates housing development that replaced the Jeffries housing project. He also was an owner of the Hotel St. Regis that went into receivership in 2009.
"We have very substantial partners. I am willing to lead the way in the redevelopment in the 'D.' "
Strather has two weeks to pay the balance to acquire 2,000 vacant lots, 3,000 properties that need to be razed and 1,000 salvageable homes.
Wayne County officials worked with Detroit Mayor Mike Duggan to package the land in a "blight bundle." The properties would have gone to the Detroit Land Bank to be razed or resold if no one bid on them. A Detroit real estate lawyer is reviewing the details of this case.
Riet Schumack, a Brightmoor resident, said she worries that if the bundle is sold to a private developer whose plans fall through, the neighborhoods will suffer.
"We are going to stay in limbo," said Schumack, whose neighbors had hoped to acquire the vacant lots they've been maintaining as gardens and small parks. "I hope the county is going to deeply look into this man's finances."
As a condition of the sale, county officials required bidders to get approval for a redevelopment plan, including proof of finances. Chief Deputy Treasurer David Szymanski said he plans to meet with Strather on Thursday about his plans.
During an often emotional press conference early Wednesday, Strather said he wants to work with community groups, churches and the Detroit Land Bank to demolish dangerous buildings, build homes and rebuild dilapidated ones. He teared up speaking of his hopes for rebuilding the city and said Detroiters should take the lead in its redevelopment. A Rochester landlord lawyer counsels clients on matters involving landlord-tenant law.
"We can save our community," Strather said. "It's not too late. We have the chance to arrest the decay and rebuild."
Strather said his main partner is John Page, who owns Eco-Solutions. Strather said the company has contracts with the U.S. Department of Housing and Urban Development to manage government properties in several states, including Michigan. Page did not attend the Wednesday press conference and didn't return a call for comment.
Strather said he hasn't established a timeline for his proposal and acknowledged the redevelopment may take more than six months. He said he hopes the Detroit Land Bank will agree to use federal money to demolish some of the homes and plans to meet with its officials soon.
Land bank officials on Wednesday said they are waiting for the outcome of Strather's talks with the county treasurer to finalize the purchase. A land bank official cautioned that federal funds can't be used to demolish privately owned properties.
"If Mr. Strather is expecting the land bank to pay to demolish properties he has purchased, he has misunderstood the law," said spokesman Craig Fahle.
Speaking to reporters Wednesday, Strather spoke generally about his tax debt and acknowledged that he owed nearly $20 million several years ago.
"I am just like the city of Detroit," Strather said during the press conference at his building, Tower Center Mall in Detroit, a shopping center at Grand River and Greenfield. "I have taken my financial hits."
Strather runs his own real estate school called Strather Academy. He said he is one of the most experienced developers in Detroit and is best equipped to revitalize the problem properties.
But Wayne State Law School professor John Mogk said any developer who has a record of not "meeting obligations needs to be looked at carefully. You don't want to have the blight continue.".
Strather is the registered agent of a company, Apollo Two, that has lost four Detroit properties this year to tax foreclosure; another 85 are at risk for foreclosure next year. Strather said those properties are owned by his real estate students and many of them are on payment plans with the treasurer.
Strather owes at least $300,000 in state and federal IRS tax liens from 2007-11 and more recent court judgments, according to records filed with the Wayne County Register of Deeds.
Strather has a $77,000 judgment filed against him this year in Wayne County Circuit Court by Comerica Bank for a defaulted loan.
"As far as I am concerned they are small," Strather said of the tax debt and judgments, which he said he plans to pay.
Court records show Strather also owes $24,000 for unpaid rent and fees for a Riverfront Towers apartment that he lived in until 2010 and $25,000 to a Detroit pastor who alleges he wasn't paid for a failed investment.
Strather and his businesses have been sued in federal court over failed projects and other deals at least five times since 2000, records show. The suits have all been settled.
Meanwhile Wednesday, county treasurer officials announced they sold 17,196 foreclosed properties at their September and October auctions for a total of $66 million. That slightly above last year's proceeds of $61 million on the sales of 10,745 properties.
Detroit — A businessman who won an auction of tax-foreclosed, blighted properties in Detroit has a string of tax debts himself.
Onetime casino investor Herb Strather met a deadline Wednesday for a down payment of 10 percent of the $3,183,500 he bid to buy 6,350 dilapidated properties. The lands — mostly vacant lots but also salvageable homes — were packaged in an online sale meant to discourage speculators and tax deadbeats.
Strather has at least $300,000 in recent tax liens and court judgments, but said his company, Detroit Bundle LLC, has the means to renovate salvageable properties and demolish dangerous ones. An Oakland County real estate lawyer has experience representing clients in real estate transactions.
"Our partners have plenty of money," said Strather, a developer of the Woodbridge Estates housing development that replaced the Jeffries housing project. He also was an owner of the Hotel St. Regis that went into receivership in 2009.
"We have very substantial partners. I am willing to lead the way in the redevelopment in the 'D.' "
Strather has two weeks to pay the balance to acquire 2,000 vacant lots, 3,000 properties that need to be razed and 1,000 salvageable homes.
Wayne County officials worked with Detroit Mayor Mike Duggan to package the land in a "blight bundle." The properties would have gone to the Detroit Land Bank to be razed or resold if no one bid on them. A Detroit real estate lawyer is reviewing the details of this case.
Riet Schumack, a Brightmoor resident, said she worries that if the bundle is sold to a private developer whose plans fall through, the neighborhoods will suffer.
"We are going to stay in limbo," said Schumack, whose neighbors had hoped to acquire the vacant lots they've been maintaining as gardens and small parks. "I hope the county is going to deeply look into this man's finances."
As a condition of the sale, county officials required bidders to get approval for a redevelopment plan, including proof of finances. Chief Deputy Treasurer David Szymanski said he plans to meet with Strather on Thursday about his plans.
During an often emotional press conference early Wednesday, Strather said he wants to work with community groups, churches and the Detroit Land Bank to demolish dangerous buildings, build homes and rebuild dilapidated ones. He teared up speaking of his hopes for rebuilding the city and said Detroiters should take the lead in its redevelopment. A Rochester landlord lawyer counsels clients on matters involving landlord-tenant law.
"We can save our community," Strather said. "It's not too late. We have the chance to arrest the decay and rebuild."
Strather said his main partner is John Page, who owns Eco-Solutions. Strather said the company has contracts with the U.S. Department of Housing and Urban Development to manage government properties in several states, including Michigan. Page did not attend the Wednesday press conference and didn't return a call for comment.
Strather said he hasn't established a timeline for his proposal and acknowledged the redevelopment may take more than six months. He said he hopes the Detroit Land Bank will agree to use federal money to demolish some of the homes and plans to meet with its officials soon.
Land bank officials on Wednesday said they are waiting for the outcome of Strather's talks with the county treasurer to finalize the purchase. A land bank official cautioned that federal funds can't be used to demolish privately owned properties.
"If Mr. Strather is expecting the land bank to pay to demolish properties he has purchased, he has misunderstood the law," said spokesman Craig Fahle.
Speaking to reporters Wednesday, Strather spoke generally about his tax debt and acknowledged that he owed nearly $20 million several years ago.
"I am just like the city of Detroit," Strather said during the press conference at his building, Tower Center Mall in Detroit, a shopping center at Grand River and Greenfield. "I have taken my financial hits."
Strather runs his own real estate school called Strather Academy. He said he is one of the most experienced developers in Detroit and is best equipped to revitalize the problem properties.
But Wayne State Law School professor John Mogk said any developer who has a record of not "meeting obligations needs to be looked at carefully. You don't want to have the blight continue.".
Strather is the registered agent of a company, Apollo Two, that has lost four Detroit properties this year to tax foreclosure; another 85 are at risk for foreclosure next year. Strather said those properties are owned by his real estate students and many of them are on payment plans with the treasurer.
Strather owes at least $300,000 in state and federal IRS tax liens from 2007-11 and more recent court judgments, according to records filed with the Wayne County Register of Deeds.
Strather has a $77,000 judgment filed against him this year in Wayne County Circuit Court by Comerica Bank for a defaulted loan.
"As far as I am concerned they are small," Strather said of the tax debt and judgments, which he said he plans to pay.
Court records show Strather also owes $24,000 for unpaid rent and fees for a Riverfront Towers apartment that he lived in until 2010 and $25,000 to a Detroit pastor who alleges he wasn't paid for a failed investment.
Strather and his businesses have been sued in federal court over failed projects and other deals at least five times since 2000, records show. The suits have all been settled.
Meanwhile Wednesday, county treasurer officials announced they sold 17,196 foreclosed properties at their September and October auctions for a total of $66 million. That slightly above last year's proceeds of $61 million on the sales of 10,745 properties.
24 October 2014
DETROIT TURNS TO SCRAPPING TO FILL BUDGET HOLE
Original Story: detroitnews.com
Detroit — City leaders are borrowing a page from scrappers and thieves by selling old copper wire to boost Detroit's finances.
The city will scrap 13 million pounds of copper wire left over by decommissioning the Public Lighting Department, a city consultant testified Tuesday during the Detroit bankruptcy trial.
The copper wire will generate as much as $40 million, though Detroit is conservatively budgeting for $25 million in revenue, city consultant Gaurav Malhotra testified.
The revenue approach emerged during the city's bankruptcy trial, which Tuesday featured testimony from Emergency Manager Kevyn Orr about how Detroit avoided a potentially "catastrophic" outcome by settling with a bond insurer owed $1.1 billion.
The city has fought copper thieves and scrappers for years in hopes of stemming blight, particularly, in city neighborhoods.
The Detroit Police Department created a Copper Theft Task Force about 10 years ago, but the unit was scrapped so the department could put more officers on street patrol.
In April, Gov. Rick Snyder signed into law a scrap metal bill intended to make it harder for thieves to convert stolen items into cash — particularly in Detroit.
Mayor Mike Duggan has made tightened scrap metal regulations a high priority. Detroit is plagued by thieves stripping catalytic converters from vehicles and metal siding, copper wire and fittings from unattended and even occupied buildings.
Under the new law, scrap metal dealers can pay for items worth $25 or more that thieves regularly swipe, such as air conditioners, copper wire and catalytic converters, only by mail to valid addresses provided by the sellers.
Scrap dealers also have to take photos or video of what they buy, according to the law. Sellers must be paid by check, money order, or special cards and receipts they can redeem at on-site automatic teller machines that take photos of them getting the cash.
Detroit is moving away from providing electricity to customers. During the next five to seven years, Detroit will be completely out of the business of supplying power to about 115 large nonresidential customers at 1,400 sites throughout Metro Detroit.
DTE Energy will take on the city's customers, which include the Detroit Public Schools, Joe Louis Arena, Cobo Center and the DIA. DTE will expand its system to handle the extra load, and the lighting department will decommission its equipment.
Earlier Monday, a bankruptcy lawyer revealed a group of hedge funds is expected to sign off on a breakthrough deal between Detroit and a bond insurer, pushing the city a step closer to exiting bankruptcy court.
The funds' lawyer, Thomas Moers Mayer, told U.S. Bankruptcy Judge Steven Rhodes Tuesday that he expects the financial creditors will approve the deal by Thursday.
The hedge funds are owed $1 billion and would split $141 million in new notes as part of a bankruptcy settlement Detroit reached with bond insurer Financial Guaranty Insurance Co. on Thursday.
The FGIC deal includes a plan to replace Joe Louis Arena with a hotel, condominium and retail development.
If Detroit had continued to battle FGIC in court, and lost, "it would be fairly catastrophic from my perspective," Orr testified Tuesday.
Testimony continues Wednesday from Martha Kopacz, the judge's handpicked expert who is expected to say Detroit's plan to shed more than $7 billion in debt is feasible.
She concluded in a July report that Detroit needs a larger and better-trained workforce and commitment from its elected leadership to carry out the massive restructuring. Closing statements in the trial are set to begin on Monday.
The judge said he intends to deliver a decision during the week of Nov. 3 on whether he will confirm the city's plan.
Detroit — City leaders are borrowing a page from scrappers and thieves by selling old copper wire to boost Detroit's finances.
The city will scrap 13 million pounds of copper wire left over by decommissioning the Public Lighting Department, a city consultant testified Tuesday during the Detroit bankruptcy trial.
The copper wire will generate as much as $40 million, though Detroit is conservatively budgeting for $25 million in revenue, city consultant Gaurav Malhotra testified.
The revenue approach emerged during the city's bankruptcy trial, which Tuesday featured testimony from Emergency Manager Kevyn Orr about how Detroit avoided a potentially "catastrophic" outcome by settling with a bond insurer owed $1.1 billion.
The city has fought copper thieves and scrappers for years in hopes of stemming blight, particularly, in city neighborhoods.
The Detroit Police Department created a Copper Theft Task Force about 10 years ago, but the unit was scrapped so the department could put more officers on street patrol.
In April, Gov. Rick Snyder signed into law a scrap metal bill intended to make it harder for thieves to convert stolen items into cash — particularly in Detroit.
Mayor Mike Duggan has made tightened scrap metal regulations a high priority. Detroit is plagued by thieves stripping catalytic converters from vehicles and metal siding, copper wire and fittings from unattended and even occupied buildings.
Under the new law, scrap metal dealers can pay for items worth $25 or more that thieves regularly swipe, such as air conditioners, copper wire and catalytic converters, only by mail to valid addresses provided by the sellers.
Scrap dealers also have to take photos or video of what they buy, according to the law. Sellers must be paid by check, money order, or special cards and receipts they can redeem at on-site automatic teller machines that take photos of them getting the cash.
Detroit is moving away from providing electricity to customers. During the next five to seven years, Detroit will be completely out of the business of supplying power to about 115 large nonresidential customers at 1,400 sites throughout Metro Detroit.
DTE Energy will take on the city's customers, which include the Detroit Public Schools, Joe Louis Arena, Cobo Center and the DIA. DTE will expand its system to handle the extra load, and the lighting department will decommission its equipment.
Earlier Monday, a bankruptcy lawyer revealed a group of hedge funds is expected to sign off on a breakthrough deal between Detroit and a bond insurer, pushing the city a step closer to exiting bankruptcy court.
The funds' lawyer, Thomas Moers Mayer, told U.S. Bankruptcy Judge Steven Rhodes Tuesday that he expects the financial creditors will approve the deal by Thursday.
The hedge funds are owed $1 billion and would split $141 million in new notes as part of a bankruptcy settlement Detroit reached with bond insurer Financial Guaranty Insurance Co. on Thursday.
The FGIC deal includes a plan to replace Joe Louis Arena with a hotel, condominium and retail development.
If Detroit had continued to battle FGIC in court, and lost, "it would be fairly catastrophic from my perspective," Orr testified Tuesday.
Testimony continues Wednesday from Martha Kopacz, the judge's handpicked expert who is expected to say Detroit's plan to shed more than $7 billion in debt is feasible.
She concluded in a July report that Detroit needs a larger and better-trained workforce and commitment from its elected leadership to carry out the massive restructuring. Closing statements in the trial are set to begin on Monday.
The judge said he intends to deliver a decision during the week of Nov. 3 on whether he will confirm the city's plan.
M-1 RAIL POURS FIRST CONCRETE FOR WOODWARD AVE. LINE
Original Story: detroitnews.com
Detroit – — The M-1 Rail project along Woodward Avenue entered a new phase Saturday with the pouring of the first concrete along the tracks between John R and Clifford streets.
Construction workers will pour some 900 cubic yards of concrete around the previously-installed track in a process that should be complete just before the Thanksgiving Day parade along Woodward.
“A project like M-1 Rail is somewhat unique in the construction process and different from what people might see in road construction,” M1-Rail Chief Operating Officer Paul Childs said in a statement issued Friday. “We do significant pre-pour preparation to ensure the rail is properly secured, elevated and aligned before we pour any concrete. That helps assure the streetcars will ride smoothly and quietly up and down the tracks.” A Boston Construction Lawyer has experience representing clients in construction law matters.
Concrete will continue to be poured along the rest of the line. When closures of intersections are necessary, the work should begin on a Friday and re-open Monday, said Childs.
Construction methods take into account the drastic variation in Michigan’s weather, said Childs. The rail itself will have a grout pad or “rubber boot” around it, which provides vibration dampening and noise reduction, and also protects the steel from water seepage and stray currents emanating from either the streetcar-charging system itself, or from existing municipal utilities feeds.
“The boot assures safety, but also lets the rail expand longitudinally — in response to both heat and cold weather,” said Childs. “Of course that’s important for our Michigan weather, but more importantly, it protects the underground steel assets from water, current, and other environmental factors, and assures safety for rail passengers.” A Chicago Construction Lawyer is experienced in assisting clients in managing construction projects.
The system with 12 stops is expected to have 1.8 million riders in its first year of operation, rising to 3 million by 2035. M-1 has raised $20 million in an operating fund to defray expenses for the first six years — but plans to raise that to $25 million before the first riders use the system, estimating it will need $5.3 million a year to subsidize operating costs initially.
The first shovels went into the ground on Woodward in late July; crews began welding track in September. The 3.1-mile line from downtown to Midtown is to be completed in late 2016. On Sept. 9, the project was awarded a $12.2 million federal grand to help build a vehicle maintenance facility, improve pedestrian access and include a fiber optic duct bank that will support broadband upgrades to increase Internet access at Wayne State University and other educational institutions.
Workers from local Detroit unions are doing the concrete work, and flaggers are placed at the intersections to assure safety – and that the new concrete isn’t disturbed.
Detroit – — The M-1 Rail project along Woodward Avenue entered a new phase Saturday with the pouring of the first concrete along the tracks between John R and Clifford streets.
Construction workers will pour some 900 cubic yards of concrete around the previously-installed track in a process that should be complete just before the Thanksgiving Day parade along Woodward.
“A project like M-1 Rail is somewhat unique in the construction process and different from what people might see in road construction,” M1-Rail Chief Operating Officer Paul Childs said in a statement issued Friday. “We do significant pre-pour preparation to ensure the rail is properly secured, elevated and aligned before we pour any concrete. That helps assure the streetcars will ride smoothly and quietly up and down the tracks.” A Boston Construction Lawyer has experience representing clients in construction law matters.
Concrete will continue to be poured along the rest of the line. When closures of intersections are necessary, the work should begin on a Friday and re-open Monday, said Childs.
Construction methods take into account the drastic variation in Michigan’s weather, said Childs. The rail itself will have a grout pad or “rubber boot” around it, which provides vibration dampening and noise reduction, and also protects the steel from water seepage and stray currents emanating from either the streetcar-charging system itself, or from existing municipal utilities feeds.
“The boot assures safety, but also lets the rail expand longitudinally — in response to both heat and cold weather,” said Childs. “Of course that’s important for our Michigan weather, but more importantly, it protects the underground steel assets from water, current, and other environmental factors, and assures safety for rail passengers.” A Chicago Construction Lawyer is experienced in assisting clients in managing construction projects.
The system with 12 stops is expected to have 1.8 million riders in its first year of operation, rising to 3 million by 2035. M-1 has raised $20 million in an operating fund to defray expenses for the first six years — but plans to raise that to $25 million before the first riders use the system, estimating it will need $5.3 million a year to subsidize operating costs initially.
The first shovels went into the ground on Woodward in late July; crews began welding track in September. The 3.1-mile line from downtown to Midtown is to be completed in late 2016. On Sept. 9, the project was awarded a $12.2 million federal grand to help build a vehicle maintenance facility, improve pedestrian access and include a fiber optic duct bank that will support broadband upgrades to increase Internet access at Wayne State University and other educational institutions.
Workers from local Detroit unions are doing the concrete work, and flaggers are placed at the intersections to assure safety – and that the new concrete isn’t disturbed.
23 October 2014
DETROIT METRO AIRPORT, DISABILITY ADVOCATES SETTLE SUIT
Original Story: detroitnews.com
Advocates for the disabled and elderly today settled a lawsuit against Detroit Metropolitan Airport with an agreement to make it more convenient for the disabled and the elderly to get to the terminal from public buses and vans.
The Wayne County Airport Authority has agreed to modify the Ground Transportation Center with an indoor information counter for the service providers, direct dial phones for passengers who need assistance, better signage and wider lanes for buses.
The agreement was announced in U.S. District Court in Detroit Friday morning after days of negotiations. At issue was the airport’s decision last month to no longer allow public transportation services to pick up and drop off passengers at the McNamara Terminal.
The plaintiffs in the lawsuit contended they would be forced to navigate their way to the terminal from a long distance in inclement weather.
The move prompted a flurry of protest letters and a call from Gov. Rick Snyder for both sides to achieve an amicable outcome.
In return for the improvements, the buses for Michigan Flyer-Air Ride agree to continue operating out of the Ground Transportation Center. Passengers who are disabled or elderly will have help getting to and from the transportation center. That will be provided by either a representative of the transit service or a contractor of Delta Airlines, the agreement states.
Michael Harris, one of the two plaintiffs in the case who is involved with the Michigan Paralyzed Veterans of America, called it a “win-win for everyone involved.”
“We’re really getting what we wanted to get,” Harris said. “We’re getting an airport that people will be able to access in a safe environment. I believe it’s a win for (the airport) because the traveling public, able and disabled, will have an enjoyable flying experience. Both sides were willing to compromise and at the end of the day we have outcome that both sides can live with.”
Airport officials, who had remained silent about the lawsuit, said they are happy with the agreement.
“We are pleased to work in a spirit of cooperation with representatives of the plaintiffs, as well as Michigan Flyer, to reach a consensus we all accept,” said airport authority CEO Thomas Naughton in a statement. “This is a great example of reasonable people working together to create a safer and more customer-friendly environment.”
Jason Turkish, who filed the lawsuit on behalf of the disability rights community, said the airport was wrong in thinking that moving the drop-off and pick-up sites to the transportation center promoted safety.
Turkish said the biggest change is the presence of permanent staff in a climate- controlled part of the airport to help monitor when people need help to and from the public transportation buses.
“This is going to allow disabled and non-disabled passengers alike to not have to go wait outside for the bus,” he said. “They are going to be able to stay in the comfort, convenience and safety of a climate controlled environment until the time when the bus is going to arrive.”
Although the walk is still 600 feet from the drop off location to the terminal, the pathway that passengers will walk along will be completely remodeled so it complies to Americans with Disabilities Act, Turkish said.
Naughton, who along with other airport officials contended the move from the increasingly congested McNamara Terminal was needed, was “always about customer safety.”
“We are comfortable that the GTC enhancements, to which we have all agreed, maintain a safe environment for our customers,” he said.
Advocates for the disabled and elderly today settled a lawsuit against Detroit Metropolitan Airport with an agreement to make it more convenient for the disabled and the elderly to get to the terminal from public buses and vans.
The Wayne County Airport Authority has agreed to modify the Ground Transportation Center with an indoor information counter for the service providers, direct dial phones for passengers who need assistance, better signage and wider lanes for buses.
The agreement was announced in U.S. District Court in Detroit Friday morning after days of negotiations. At issue was the airport’s decision last month to no longer allow public transportation services to pick up and drop off passengers at the McNamara Terminal.
The plaintiffs in the lawsuit contended they would be forced to navigate their way to the terminal from a long distance in inclement weather.
The move prompted a flurry of protest letters and a call from Gov. Rick Snyder for both sides to achieve an amicable outcome.
In return for the improvements, the buses for Michigan Flyer-Air Ride agree to continue operating out of the Ground Transportation Center. Passengers who are disabled or elderly will have help getting to and from the transportation center. That will be provided by either a representative of the transit service or a contractor of Delta Airlines, the agreement states.
Michael Harris, one of the two plaintiffs in the case who is involved with the Michigan Paralyzed Veterans of America, called it a “win-win for everyone involved.”
“We’re really getting what we wanted to get,” Harris said. “We’re getting an airport that people will be able to access in a safe environment. I believe it’s a win for (the airport) because the traveling public, able and disabled, will have an enjoyable flying experience. Both sides were willing to compromise and at the end of the day we have outcome that both sides can live with.”
Airport officials, who had remained silent about the lawsuit, said they are happy with the agreement.
“We are pleased to work in a spirit of cooperation with representatives of the plaintiffs, as well as Michigan Flyer, to reach a consensus we all accept,” said airport authority CEO Thomas Naughton in a statement. “This is a great example of reasonable people working together to create a safer and more customer-friendly environment.”
Jason Turkish, who filed the lawsuit on behalf of the disability rights community, said the airport was wrong in thinking that moving the drop-off and pick-up sites to the transportation center promoted safety.
Turkish said the biggest change is the presence of permanent staff in a climate- controlled part of the airport to help monitor when people need help to and from the public transportation buses.
“This is going to allow disabled and non-disabled passengers alike to not have to go wait outside for the bus,” he said. “They are going to be able to stay in the comfort, convenience and safety of a climate controlled environment until the time when the bus is going to arrive.”
Although the walk is still 600 feet from the drop off location to the terminal, the pathway that passengers will walk along will be completely remodeled so it complies to Americans with Disabilities Act, Turkish said.
Naughton, who along with other airport officials contended the move from the increasingly congested McNamara Terminal was needed, was “always about customer safety.”
“We are comfortable that the GTC enhancements, to which we have all agreed, maintain a safe environment for our customers,” he said.
13 October 2014
NO MORE RETRIALS, AIYANA'S FAMILY PLEADS
Original Story: detroitnews.com
Detroit — Legal proceedings are over, for now, in the case of a Detroit police officer who killed 7-year-old Aiyana Stanley-Jones, but those most affected say the pain will linger.
For the second time a mistrial was declared in the case, this one on the remaining charge — a misdemeanor — in the trial of Officer Joseph Weekley, who killed Aiyana during a May 2010 police raid. Like the jury in the first trial last year, the panel Friday said it was unable to reach a verdict. A Westchester County Police Brutality Lawyer is reviewing the details of this case.
Wayne County prosecutors will decide next month whether to try the misdemeanor case again. They will only be able to charge Weekley with careless discharge of a firearm causing death, because Wayne County Circuit Judge Cynthia Gray Hathaway earlier threw out the involuntary manslaughter charge against the officer.
But Aiyana's great-uncle said the family has had enough.
"The mom is hurt again," Londell Fields said of his niece, Aiyana's mother, Dominka Stanley, who sat quietly in the back row of the courtoom for most of the trial. "She don't want to go through it again. ... She wants it to be over with. There's nothing left to be said about it; it's done."
Weekley said in a statement that he will be haunted by Aiyana's death for the rest of his life.
"My life has been ruined irreparably by the events that occurred on May 16, 2010," he said. "There has not been one single day that has gone by since that day where I have not thought about the loss of Aiyana, and I will be haunted by this tragedy for the rest of my life. No family ever deserves to lose a child, and I have nothing but sympathy for the family of Aiyana Jones. A Dutchess County Police Brutality Lawyer has experience managing a variety of police brutality cases.
"No parent ever deserves to lose a child, regardless of the circumstances. I know in my heart and before God that what transpired that day was out of my control, but I will still have terrible grief weigh upon me every day for the rest of my life," Weekley said.
The jury at Weekley's retrial told the court it was deadlocked twice Friday. The judge urged them to continue deliberations after the jurors sent an initial message to the court Friday afternoon, saying: "Judge Hathaway, we are stalemated over the same things as we were on Wednesday. We have discussed this from every possible angle and are unable to come to a unanimous decision."
In June 2013, a mistrial for Weekley also was declared after no verdict could be reached on the involuntary manslaughter charge.
"These things happen. We would rather they didn't happen, but it's not something we are unfamiliar with," Hathaway told the jurors Friday after they informed her they were unable to reach a verdict.
This jury only had to weigh the misdemeanor charge after a ruling last week by Hathaway dismissed an involuntary manslaughter charge. The manslaughter charge, a felony, carried a maximum sentence of 15 years in prison.
The directed verdict by Hathaway was upheld by the Michigan Court of Appeals. The misdemeanor charge carries a maximum penalty of a $2,000 fine and two years in prison.
Roland Lawrence, chairman of the Justice for Aiyana Jones Committee, blasted the judge for tossing the felony count before the jury got the case.
"Judge Hathaway's dismissal of felony charges ... we believe poisoned the jury's ability to reach a verdict," he said in a statement.
Two versions of events
The trial came down to whether the jury believed Weekley or Aiyana's grandmother about what happened in the seconds after police threw a "flash-bang" grenade into the house and Weekley led a Detroit Police Special Response Team squad inside looking for a murderer.
Weekley has said the girl's grandmother, Mertilla Jones, slapped at his submachine gun, causing him to accidentally shoot Aiyana.
Jones has testified that Weekley walked into the house on Lillibridge, put his gun to the sleeping girl's head and shot her on the living room couch.
Prosecutors have said the shooting was an accident, but say Weekley was negligent because he kept his finger on the trigger of his gun, causing it to fire.
"I think that Mr. Weekley should apologize, and just say he made a mistake," Fields said Friday. "I don't think that it's fair because he's a police officer that he gets to get away with this again."
After failing to reach a verdict in the misdemeanor case after four days of deliberations, jurors met with reporters Friday in the jury room.
Hathaway, who said this case has been the longest she's presided over in more than 20 years on the bench, advised them not to release their names.
The jury foreman, a minister, said it was a difficult decision. After three votes, he said the jury tally was five guilty, seven not guilty.
"This was an emotional case," he said, his voice catching. "There were tears in this room. I think we all felt this deeply.
"It really came down to the definition of 'negligence.' Three words were separated by 'or' – careless, reckless or negligence. We really wrestled with the language. We spent an endless amount of time talking about the difference between ordinary and slight negligence."
Jurors said race not an issue
When asked if race played a part in their deliberations, several jurors quickly insisted it hadn't.
One juror said those who thought Weekley was guilty felt he should have controlled his weapon.
"They go through all that training and are supposed to have muscle memory," one man said.
Detroit Coalition Against Police Brutality director Ron Scott said he was upset with the outcome of the case.
"This is a defining moment in the history of Detroit," he said. "There has to be some justice for Aiyana Jones."
Wayne County Prosecutor's Office spokeswoman Maria Miller said prosecutors will decide whether to recharge Weekley at a Nov. 21 hearing.
"This multi-racial, multi-ethnic jury did the very best they could to reach a verdict in this case," said Steve Fishman, Weekley's attorney, in an email. "This case has now been before two juries, once on a felony charge and once on a misdemeanor charge, and neither of them have been able to reach a verdict. In my opinion, twice is enough. The case should be dismissed."
Detroit — Legal proceedings are over, for now, in the case of a Detroit police officer who killed 7-year-old Aiyana Stanley-Jones, but those most affected say the pain will linger.
For the second time a mistrial was declared in the case, this one on the remaining charge — a misdemeanor — in the trial of Officer Joseph Weekley, who killed Aiyana during a May 2010 police raid. Like the jury in the first trial last year, the panel Friday said it was unable to reach a verdict. A Westchester County Police Brutality Lawyer is reviewing the details of this case.
Wayne County prosecutors will decide next month whether to try the misdemeanor case again. They will only be able to charge Weekley with careless discharge of a firearm causing death, because Wayne County Circuit Judge Cynthia Gray Hathaway earlier threw out the involuntary manslaughter charge against the officer.
But Aiyana's great-uncle said the family has had enough.
"The mom is hurt again," Londell Fields said of his niece, Aiyana's mother, Dominka Stanley, who sat quietly in the back row of the courtoom for most of the trial. "She don't want to go through it again. ... She wants it to be over with. There's nothing left to be said about it; it's done."
Weekley said in a statement that he will be haunted by Aiyana's death for the rest of his life.
"My life has been ruined irreparably by the events that occurred on May 16, 2010," he said. "There has not been one single day that has gone by since that day where I have not thought about the loss of Aiyana, and I will be haunted by this tragedy for the rest of my life. No family ever deserves to lose a child, and I have nothing but sympathy for the family of Aiyana Jones. A Dutchess County Police Brutality Lawyer has experience managing a variety of police brutality cases.
"No parent ever deserves to lose a child, regardless of the circumstances. I know in my heart and before God that what transpired that day was out of my control, but I will still have terrible grief weigh upon me every day for the rest of my life," Weekley said.
The jury at Weekley's retrial told the court it was deadlocked twice Friday. The judge urged them to continue deliberations after the jurors sent an initial message to the court Friday afternoon, saying: "Judge Hathaway, we are stalemated over the same things as we were on Wednesday. We have discussed this from every possible angle and are unable to come to a unanimous decision."
In June 2013, a mistrial for Weekley also was declared after no verdict could be reached on the involuntary manslaughter charge.
"These things happen. We would rather they didn't happen, but it's not something we are unfamiliar with," Hathaway told the jurors Friday after they informed her they were unable to reach a verdict.
This jury only had to weigh the misdemeanor charge after a ruling last week by Hathaway dismissed an involuntary manslaughter charge. The manslaughter charge, a felony, carried a maximum sentence of 15 years in prison.
The directed verdict by Hathaway was upheld by the Michigan Court of Appeals. The misdemeanor charge carries a maximum penalty of a $2,000 fine and two years in prison.
Roland Lawrence, chairman of the Justice for Aiyana Jones Committee, blasted the judge for tossing the felony count before the jury got the case.
"Judge Hathaway's dismissal of felony charges ... we believe poisoned the jury's ability to reach a verdict," he said in a statement.
Two versions of events
The trial came down to whether the jury believed Weekley or Aiyana's grandmother about what happened in the seconds after police threw a "flash-bang" grenade into the house and Weekley led a Detroit Police Special Response Team squad inside looking for a murderer.
Weekley has said the girl's grandmother, Mertilla Jones, slapped at his submachine gun, causing him to accidentally shoot Aiyana.
Jones has testified that Weekley walked into the house on Lillibridge, put his gun to the sleeping girl's head and shot her on the living room couch.
Prosecutors have said the shooting was an accident, but say Weekley was negligent because he kept his finger on the trigger of his gun, causing it to fire.
"I think that Mr. Weekley should apologize, and just say he made a mistake," Fields said Friday. "I don't think that it's fair because he's a police officer that he gets to get away with this again."
After failing to reach a verdict in the misdemeanor case after four days of deliberations, jurors met with reporters Friday in the jury room.
Hathaway, who said this case has been the longest she's presided over in more than 20 years on the bench, advised them not to release their names.
The jury foreman, a minister, said it was a difficult decision. After three votes, he said the jury tally was five guilty, seven not guilty.
"This was an emotional case," he said, his voice catching. "There were tears in this room. I think we all felt this deeply.
"It really came down to the definition of 'negligence.' Three words were separated by 'or' – careless, reckless or negligence. We really wrestled with the language. We spent an endless amount of time talking about the difference between ordinary and slight negligence."
Jurors said race not an issue
When asked if race played a part in their deliberations, several jurors quickly insisted it hadn't.
One juror said those who thought Weekley was guilty felt he should have controlled his weapon.
"They go through all that training and are supposed to have muscle memory," one man said.
Detroit Coalition Against Police Brutality director Ron Scott said he was upset with the outcome of the case.
"This is a defining moment in the history of Detroit," he said. "There has to be some justice for Aiyana Jones."
Wayne County Prosecutor's Office spokeswoman Maria Miller said prosecutors will decide whether to recharge Weekley at a Nov. 21 hearing.
"This multi-racial, multi-ethnic jury did the very best they could to reach a verdict in this case," said Steve Fishman, Weekley's attorney, in an email. "This case has now been before two juries, once on a felony charge and once on a misdemeanor charge, and neither of them have been able to reach a verdict. In my opinion, twice is enough. The case should be dismissed."
WHEELCHAIR RAMPS MISS THE POINT AS AID FOR HANDICAPPED
Original Story: detroitnews.com
This summer, Detroit spent tens of thousands of dollars replacing sidewalk wheelchair ramps in little traveled areas.
The bankrupt city put in ramps, costing about $10,000 per intersection, along crumbling sidewalks along Warren near Conner. In one half-mile stretch, from St. Jean to Cadillac, there are 52 new sets of ramps.
Some face brick walls. Others provide access to an empty lot where Helen Joy Middle School stood until it was razed in 2009. On many corners, sidewalks end after the ramps.
"You drive down some of these streets and there are blocks of no houses, but pretty new curbs," said Sherman Hayes, 84, a retired nurse who lives nearby on Lakewood Street. "Look at all these ramps to nowhere. It makes my blood boil."
Detroit officials say they have no choice. The work is the latest in a decadelong, court-imposed effort to force Detroit into compliance with federal handicapped accessible laws.
An order from U.S. District Judge Gerald Rosen requires the city to build ramps on every road it resurfaces — and at every local intersection of major roads, said Ron Brundidge, director of the city's department of public works. In eight years, the city has spent $30 million to install 25,000 ramps. The work is far from over: City officials estimate they need to build another 50,000 ramps for $60 million to comply.
Few are happy.
Detroit is using gas taxes that otherwise could be spent on fixing streets to build ramps in often empty neighborhoods. Wheelchair users agree that building so-called ramps to nowhere is a waste of money — but point out there are still large areas of the city without working ramps.
Talks began for a compromise but ended when Detroit declared bankruptcy last year. Neither side can change the plan because the ongoing bankruptcy trial suspended litigation, but wheelchair advocates say they want to resume talks when the trial ends.
"We'd rather see the city's limited resources applied to areas with more foot traffic," said Michael Harris, executive director of Michigan Paralyzed Veterans of America, which sued to enforce federal law mandating the ramps.
"It makes absolutely no sense to build them in some of these areas."
Within the past year, new ramps were installed a few blocks south of Warren in front of a burned-out liquor store at Cadillac and Canfield. The sidewalk ends 10 feet after the ramp, which is overgrown with weeds. Over on Kercheval, ramps provide access to empty lots and burned out homes near Canton.
"Who would think it's OK to put up ramps where there are no houses?" Hayes asked. "In the wintertime, how are you going to use those ramps when there is no one who lives there to shovel?"
Meanwhile, better-traveled areas — even some near downtown — lack working ramps, making getting around "very, very difficult" for wheelchair users such as Inene Laverne, she said.
"They need to put in ramps where they are needed," said Laverne, 50, who lives near Midtown and has used a motorized wheelchair for eight years because of a bad back.
"Sometimes, you have to go into the street and they are raggedy. It messes up your suspension and you need to get your wheels replaced."
Before the work this year, there were ramps up and down East Warren. It was easy for wheelchair users to travel east and west, but getting to the other side of Warren required a few turns into traffic.
"Basically, they were put in the position of jaywalking," said J. Mark Finnegan, an attorney for the veterans group.
Now, every corner along the stretch has at least two new orange "tactile warning" curb ramps with raised bumps. One faces the cross street, the other faces Warren.
The ramps are the nicest part of the sidewalks on Warren. In several stretches, the sidewalks are broken and almost unpassable.
"There's a question of how much benefit the city receives for something that is underutilized," Brundidge said.
"We aren't disputing the need for sidewalks to be accessible for all, but someone could make an argument that it isn't the best use for taxpayer dollars when you look at the money spent and compare it to how much it is used."
The law requiring the ramps isn't new. The Americans with Disabilities Act took effect in 1991. Detroit signed an agreement with the U.S. Department of Justice in 2004 to build all the ramps by 2007. The veterans sued in 2006 when the city had made no progress, said Denise Heberle, an Ann Arbor-based attorney for the group.
"We hear it all the time: 'Poor bankrupt Detroit has to put up curb cuts it can't afford because of those paralyzed veterans,' " she said. "If Detroit had followed the law a long time ago, it wouldn't be in this position."
Finnegan said about 400 intersections downtown still lack working ramps. The city agreed to build ramps first in an area roughly from Grand River to Jefferson and the Lodge to Interstate 375. It built about 4,800 but has "absolutely refused" to complete the rest, Finnegan said.
On Gratiot, the ramps are so steep that wheelchair users have to go up them in reverse, Finnegan said. Otherwise, the wheelchairs will tip over, he said.
"We've been saying for years, 'fix these ramps and stop working in the middle of nowhere,' and they won't do it," Finnegan said.
Until recently, Woodward and Jefferson near the Coleman A. Young Municipal Center lacked working ramps because of a standoff over whether the city or state should build them. The city had contended it shouldn't be responsible for major roads that double as state routes.
"Every intersection is supposed to be accessible and it should have been done a long time ago," Finnegan said. "When the bankruptcy settles, we are going to be back on them again."
This summer, Detroit spent tens of thousands of dollars replacing sidewalk wheelchair ramps in little traveled areas.
The bankrupt city put in ramps, costing about $10,000 per intersection, along crumbling sidewalks along Warren near Conner. In one half-mile stretch, from St. Jean to Cadillac, there are 52 new sets of ramps.
Some face brick walls. Others provide access to an empty lot where Helen Joy Middle School stood until it was razed in 2009. On many corners, sidewalks end after the ramps.
"You drive down some of these streets and there are blocks of no houses, but pretty new curbs," said Sherman Hayes, 84, a retired nurse who lives nearby on Lakewood Street. "Look at all these ramps to nowhere. It makes my blood boil."
Detroit officials say they have no choice. The work is the latest in a decadelong, court-imposed effort to force Detroit into compliance with federal handicapped accessible laws.
An order from U.S. District Judge Gerald Rosen requires the city to build ramps on every road it resurfaces — and at every local intersection of major roads, said Ron Brundidge, director of the city's department of public works. In eight years, the city has spent $30 million to install 25,000 ramps. The work is far from over: City officials estimate they need to build another 50,000 ramps for $60 million to comply.
Few are happy.
Detroit is using gas taxes that otherwise could be spent on fixing streets to build ramps in often empty neighborhoods. Wheelchair users agree that building so-called ramps to nowhere is a waste of money — but point out there are still large areas of the city without working ramps.
Talks began for a compromise but ended when Detroit declared bankruptcy last year. Neither side can change the plan because the ongoing bankruptcy trial suspended litigation, but wheelchair advocates say they want to resume talks when the trial ends.
"We'd rather see the city's limited resources applied to areas with more foot traffic," said Michael Harris, executive director of Michigan Paralyzed Veterans of America, which sued to enforce federal law mandating the ramps.
"It makes absolutely no sense to build them in some of these areas."
Within the past year, new ramps were installed a few blocks south of Warren in front of a burned-out liquor store at Cadillac and Canfield. The sidewalk ends 10 feet after the ramp, which is overgrown with weeds. Over on Kercheval, ramps provide access to empty lots and burned out homes near Canton.
"Who would think it's OK to put up ramps where there are no houses?" Hayes asked. "In the wintertime, how are you going to use those ramps when there is no one who lives there to shovel?"
Meanwhile, better-traveled areas — even some near downtown — lack working ramps, making getting around "very, very difficult" for wheelchair users such as Inene Laverne, she said.
"They need to put in ramps where they are needed," said Laverne, 50, who lives near Midtown and has used a motorized wheelchair for eight years because of a bad back.
"Sometimes, you have to go into the street and they are raggedy. It messes up your suspension and you need to get your wheels replaced."
Before the work this year, there were ramps up and down East Warren. It was easy for wheelchair users to travel east and west, but getting to the other side of Warren required a few turns into traffic.
"Basically, they were put in the position of jaywalking," said J. Mark Finnegan, an attorney for the veterans group.
Now, every corner along the stretch has at least two new orange "tactile warning" curb ramps with raised bumps. One faces the cross street, the other faces Warren.
The ramps are the nicest part of the sidewalks on Warren. In several stretches, the sidewalks are broken and almost unpassable.
"There's a question of how much benefit the city receives for something that is underutilized," Brundidge said.
"We aren't disputing the need for sidewalks to be accessible for all, but someone could make an argument that it isn't the best use for taxpayer dollars when you look at the money spent and compare it to how much it is used."
The law requiring the ramps isn't new. The Americans with Disabilities Act took effect in 1991. Detroit signed an agreement with the U.S. Department of Justice in 2004 to build all the ramps by 2007. The veterans sued in 2006 when the city had made no progress, said Denise Heberle, an Ann Arbor-based attorney for the group.
"We hear it all the time: 'Poor bankrupt Detroit has to put up curb cuts it can't afford because of those paralyzed veterans,' " she said. "If Detroit had followed the law a long time ago, it wouldn't be in this position."
Finnegan said about 400 intersections downtown still lack working ramps. The city agreed to build ramps first in an area roughly from Grand River to Jefferson and the Lodge to Interstate 375. It built about 4,800 but has "absolutely refused" to complete the rest, Finnegan said.
On Gratiot, the ramps are so steep that wheelchair users have to go up them in reverse, Finnegan said. Otherwise, the wheelchairs will tip over, he said.
"We've been saying for years, 'fix these ramps and stop working in the middle of nowhere,' and they won't do it," Finnegan said.
Until recently, Woodward and Jefferson near the Coleman A. Young Municipal Center lacked working ramps because of a standoff over whether the city or state should build them. The city had contended it shouldn't be responsible for major roads that double as state routes.
"Every intersection is supposed to be accessible and it should have been done a long time ago," Finnegan said. "When the bankruptcy settles, we are going to be back on them again."
29 September 2014
JUDGE RULES HE CAN'T STOP DETROIT WATER SHUTOFFS
Original Story: freep.com
Detroit's bankruptcy judge today said he lacked the authority to issue a restraining order to stop water shutoffs over delinquent bills, saying that there is no constitutional right to water and a moratorium would be a financial hit to the Detroit Water and Sewerage Department.
"Chapter 9 strictly limits the courts' power in a bankruptcy case," U.S. Bankruptcy Judge Steven Rhodes said as he read a ruling from the bench this morning.
While Rhodes' ruling made it clear he understood the scope of the problem of water shutoffs in a city with deep poverty, he said the plaintiffs in the case — advocates including Moratorium Now, the Peoples Water Board and the National Action Network — did not make the case that a six-month moratorium was necessary or within his powers.
He also noted that Detroit and Wayne, Oakland and Macomb counties are in the process of approving a new Great Lakes Water Authority under which Detroit would maintain ownership of the region's water and sewer system but lease the pipes that largely serve the suburbs, in exchange for $50 million a year for 40 years dedicated to fixing aging water and sewer lines.
Given that Detroit is in bankruptcy and under intense pressure to make every operation in the city as cost-effective and efficient as possible, "the last thing it needs is this hit to its revenues," Rhodes said.
Alice Jennings, a lawyer representing the plaintiffs who sought a moratorium on water shutoffs, said she is disappointed in Rhodes' ruling and will look to appeal his decision.
"No one ever said the water had to be free," Jennings said. "Our position is the water had to be affordable. We're still looking for affordable water."
Jennings said the most important part of Rhodes' ruling was his admission cutting off water service causes irreparable harm. Jennings pointed out the city does not have specific data on how often water has been cut off at homes with children or disabled people.
Jennings said federal mediators and the state came up with a plan to save art at the Detroit Institute of Arts. Why not a plan to save people without access to affordable water, she asked.
"We need to evaluate how many people are without water and the safety and health risks involved," she said. "Come up with the grand bargain to save the health and safety of the children and seniors."
The testimony came this morning in the hearings on Detroit's bid to get out of bankruptcy.
Rhodes also is likely to hear updates from city lawyers about the agreement reached last week to keep emergency manager Kevyn Orr on the job until the bankruptcy exit strategy is approved, yet restore power to run city government to Mayor Mike Duggan and the City Council.
During a meeting of the city's financial advisory board on Friday, Orr outlined the arrangement that will keep him in charge of shepherding Detroit through the final stages of its bankruptcy.
Orr will technically remain emergency manager until the plan of adjustment is confirmed, but he relinquished control of city government back to elected officials in a deal announced Thursday. Without the powers of emergency manager, he told the board, it wasn't clear he'd have the authority to conclude bond deals crucial to the city emerging from the largest municipal bankruptcy in U.S. history.
Orr said he expects testimony to last only a couple more weeks.
"Hopefully sometime between the end of the trial and Thanksgiving we'll have a final ruling," Orr told the board.
Orr is among the next four witnesses Jones Day lawyers for the city plan to call this week. An amended witness list the city filed last week said that, before Orr appears on the stand — for what's likely to be some of the most critical testimony of the case — the city plans to call:
■ Gaurav Malhotra, a managing partner at the accounting firm Ernst & Young's Chicago office, who has been a key financial adviser to the city.
■ Ken Buckfire of Miller Buckfire, the investment banker who has been advising Detroit on matters like creation of a regional water authority.
■ James Doak, a managing director at Miller Buckfire.
Rhodes said last week, after a day and a half of testimony on the water shutoffs, that he would issue a ruling this morning.
Advocacy groups who sought a moratorium on shutoffs testified last week that the Detroit Water and Sewerage Department's policies of mass shutoffs — 19,000 in recent months — are leaving low-income households with seniors and children without water service.
They asked Rhodes to issue a temporary restraining order to stop the shutoffs until the city can come up with a better way to address the unaffordability of water service in a city where more than half of households live at or below 150% of the federal poverty level.
Also last week, Rhodes agreed to hear an appeal from labor activist Robert Davis. He asked the judge for permission to file a lawsuit in Wayne County Circuit Court on allegations that the Detroit council illegally met in closed session to debate the agreement that keeps Orr on to manage the bankruptcy.
Detroit's bankruptcy judge today said he lacked the authority to issue a restraining order to stop water shutoffs over delinquent bills, saying that there is no constitutional right to water and a moratorium would be a financial hit to the Detroit Water and Sewerage Department.
"Chapter 9 strictly limits the courts' power in a bankruptcy case," U.S. Bankruptcy Judge Steven Rhodes said as he read a ruling from the bench this morning.
While Rhodes' ruling made it clear he understood the scope of the problem of water shutoffs in a city with deep poverty, he said the plaintiffs in the case — advocates including Moratorium Now, the Peoples Water Board and the National Action Network — did not make the case that a six-month moratorium was necessary or within his powers.
He also noted that Detroit and Wayne, Oakland and Macomb counties are in the process of approving a new Great Lakes Water Authority under which Detroit would maintain ownership of the region's water and sewer system but lease the pipes that largely serve the suburbs, in exchange for $50 million a year for 40 years dedicated to fixing aging water and sewer lines.
Given that Detroit is in bankruptcy and under intense pressure to make every operation in the city as cost-effective and efficient as possible, "the last thing it needs is this hit to its revenues," Rhodes said.
Alice Jennings, a lawyer representing the plaintiffs who sought a moratorium on water shutoffs, said she is disappointed in Rhodes' ruling and will look to appeal his decision.
"No one ever said the water had to be free," Jennings said. "Our position is the water had to be affordable. We're still looking for affordable water."
Jennings said the most important part of Rhodes' ruling was his admission cutting off water service causes irreparable harm. Jennings pointed out the city does not have specific data on how often water has been cut off at homes with children or disabled people.
Jennings said federal mediators and the state came up with a plan to save art at the Detroit Institute of Arts. Why not a plan to save people without access to affordable water, she asked.
"We need to evaluate how many people are without water and the safety and health risks involved," she said. "Come up with the grand bargain to save the health and safety of the children and seniors."
The testimony came this morning in the hearings on Detroit's bid to get out of bankruptcy.
Rhodes also is likely to hear updates from city lawyers about the agreement reached last week to keep emergency manager Kevyn Orr on the job until the bankruptcy exit strategy is approved, yet restore power to run city government to Mayor Mike Duggan and the City Council.
During a meeting of the city's financial advisory board on Friday, Orr outlined the arrangement that will keep him in charge of shepherding Detroit through the final stages of its bankruptcy.
Orr will technically remain emergency manager until the plan of adjustment is confirmed, but he relinquished control of city government back to elected officials in a deal announced Thursday. Without the powers of emergency manager, he told the board, it wasn't clear he'd have the authority to conclude bond deals crucial to the city emerging from the largest municipal bankruptcy in U.S. history.
Orr said he expects testimony to last only a couple more weeks.
"Hopefully sometime between the end of the trial and Thanksgiving we'll have a final ruling," Orr told the board.
Orr is among the next four witnesses Jones Day lawyers for the city plan to call this week. An amended witness list the city filed last week said that, before Orr appears on the stand — for what's likely to be some of the most critical testimony of the case — the city plans to call:
■ Gaurav Malhotra, a managing partner at the accounting firm Ernst & Young's Chicago office, who has been a key financial adviser to the city.
■ Ken Buckfire of Miller Buckfire, the investment banker who has been advising Detroit on matters like creation of a regional water authority.
■ James Doak, a managing director at Miller Buckfire.
Rhodes said last week, after a day and a half of testimony on the water shutoffs, that he would issue a ruling this morning.
Advocacy groups who sought a moratorium on shutoffs testified last week that the Detroit Water and Sewerage Department's policies of mass shutoffs — 19,000 in recent months — are leaving low-income households with seniors and children without water service.
They asked Rhodes to issue a temporary restraining order to stop the shutoffs until the city can come up with a better way to address the unaffordability of water service in a city where more than half of households live at or below 150% of the federal poverty level.
Also last week, Rhodes agreed to hear an appeal from labor activist Robert Davis. He asked the judge for permission to file a lawsuit in Wayne County Circuit Court on allegations that the Detroit council illegally met in closed session to debate the agreement that keeps Orr on to manage the bankruptcy.
GM NAMES BLANCHARD TO LEAD DETROIT INITIATIVES
Original Story: detroitnews.com
General Motors Co. said Friday it has named John K. Blanchard, director of local government relations for the U.S. since 2011, to immediately serve as its lead executive for GM’s initiatives in Detroit and Southeast Michigan. He will serve as the company’s single point contact in GM’s efforts to help revitalize Detroit.
Blanchard, 52, represents GM on many boards including the Detroit Riverfront Conservancy, Detroit Economic Growth Corp., Automation Alley and will be recommended to serve as GM’s representative to the Downtown Detroit Partnership.
“As a life-long resident of Michigan, John understands Detroit well,” Bob Ferguson, senior vice president for GM’s global public policy, said in a statement. “Having John lead our efforts will ensure the company has an even greater impact in helping rebuild Detroit.”
Blanchard has worked for GM since 1983, joining the company as a financial analyst. He has worked in GM’s corporate finance division, led the company’s worldwide real estate group and helped oversee redevelopment of GM’s headquarters at the Renaissance Center.
General Motors Co. said Friday it has named John K. Blanchard, director of local government relations for the U.S. since 2011, to immediately serve as its lead executive for GM’s initiatives in Detroit and Southeast Michigan. He will serve as the company’s single point contact in GM’s efforts to help revitalize Detroit.
Blanchard, 52, represents GM on many boards including the Detroit Riverfront Conservancy, Detroit Economic Growth Corp., Automation Alley and will be recommended to serve as GM’s representative to the Downtown Detroit Partnership.
“As a life-long resident of Michigan, John understands Detroit well,” Bob Ferguson, senior vice president for GM’s global public policy, said in a statement. “Having John lead our efforts will ensure the company has an even greater impact in helping rebuild Detroit.”
Blanchard has worked for GM since 1983, joining the company as a financial analyst. He has worked in GM’s corporate finance division, led the company’s worldwide real estate group and helped oversee redevelopment of GM’s headquarters at the Renaissance Center.
16 April 2014
STARBUCKS RETURNS TO DOWNTOWN DETROIT
Original Story: USAToday.com
DETROIT — A full-scale Starbucks shop opened Thursday in downtown Detroit, nearly six years after the Seattle-based coffee chain closed two downtown stores and another near Belle Isle, Mich.
The new Starbucks (SBUX) is on the ground floor of the Ernst & Young building at One Kennedy Square.
It features unique design elements for a Starbucks location, including a decorative wall with Detroit neighborhoods and street names and a map of the old Detroit United Railway. In addition, the store's male baristas are required to wear black ties.
The return of Starbucks to the downtown business district — a brand that for many signifies commerce and wealth — is yet another sign of a momentum of growth in the district once left for dead just five or six years ago as General Motors and Chrysler declared bankruptcy during the Great Recession.
It also amounts to an endorsement of downtown's future, which has seen an influx of new residents and workers the last several years since Quicken Loans Founder Dan Gilbert moved his businesses to downtown and started purchasing buildings. It's estimated that greater downtown has added about 10,000 new workers over the last three or four years, many of them young upwardly mobile coffee drinkers.
"To have a Starbucks here that's been missing for so many years is just great," said Willie Kent, a native of Detroit and the new store's general manager.
The shop employs 15 people, takes Starbucks loyalty cards and is a licensed location with a different ownership structure than the sole corporate-owned Starbucks in the city's midtown. There are several smaller licensed Starbucks in the city.
Starbucks' absence offered an opportunity for other coffee shops to sprout downtown. One recent arrival was Roasting Plant, a New York-based coffeehouse company known for shooting coffee beans through pairs of clear pneumatic tubes.
Still, the return of a downtown Starbucks storefront was eagerly awaited. The opening was delayed by a day for final inspections.
"It's finally here," exclaimed Melissa Tipton, a downtown worker on a coffee break. "I've been waiting for months and I was kicking stuff when they weren't open yesterday."
The previous downtown locations were among the 600 that Starbucks closed in 2008.
A stand-alone Starbucks near Belle Isle also was closed at the time. That location had a drive-through window and often appeared busy. But it experienced multiple break-ins after business hours. The building later reopened as a Tim Hortons.
"It was a rough location, but the community still stood by it," said Kent, who was a manager there from 2002-04. "After hours, once the doors closed, it was a different story. But when it was open you couldn't tell if you were in downtown Birmingham or the middle of Detroit."
Basketball legend Earvin "Magic" Johnson was once a franchise owner of more than 100 Starbucks stores, including at least three in metropolitan Detroit. He sold all of his remaining stores in 2010, according to news reports.
A Starbucks executive said the license for the new Detroit location is held by a group of individuals, whom the company declined to identify.
DETROIT — A full-scale Starbucks shop opened Thursday in downtown Detroit, nearly six years after the Seattle-based coffee chain closed two downtown stores and another near Belle Isle, Mich.
The new Starbucks (SBUX) is on the ground floor of the Ernst & Young building at One Kennedy Square.
It features unique design elements for a Starbucks location, including a decorative wall with Detroit neighborhoods and street names and a map of the old Detroit United Railway. In addition, the store's male baristas are required to wear black ties.
The return of Starbucks to the downtown business district — a brand that for many signifies commerce and wealth — is yet another sign of a momentum of growth in the district once left for dead just five or six years ago as General Motors and Chrysler declared bankruptcy during the Great Recession.
It also amounts to an endorsement of downtown's future, which has seen an influx of new residents and workers the last several years since Quicken Loans Founder Dan Gilbert moved his businesses to downtown and started purchasing buildings. It's estimated that greater downtown has added about 10,000 new workers over the last three or four years, many of them young upwardly mobile coffee drinkers.
"To have a Starbucks here that's been missing for so many years is just great," said Willie Kent, a native of Detroit and the new store's general manager.
The shop employs 15 people, takes Starbucks loyalty cards and is a licensed location with a different ownership structure than the sole corporate-owned Starbucks in the city's midtown. There are several smaller licensed Starbucks in the city.
Starbucks' absence offered an opportunity for other coffee shops to sprout downtown. One recent arrival was Roasting Plant, a New York-based coffeehouse company known for shooting coffee beans through pairs of clear pneumatic tubes.
Still, the return of a downtown Starbucks storefront was eagerly awaited. The opening was delayed by a day for final inspections.
"It's finally here," exclaimed Melissa Tipton, a downtown worker on a coffee break. "I've been waiting for months and I was kicking stuff when they weren't open yesterday."
The previous downtown locations were among the 600 that Starbucks closed in 2008.
A stand-alone Starbucks near Belle Isle also was closed at the time. That location had a drive-through window and often appeared busy. But it experienced multiple break-ins after business hours. The building later reopened as a Tim Hortons.
"It was a rough location, but the community still stood by it," said Kent, who was a manager there from 2002-04. "After hours, once the doors closed, it was a different story. But when it was open you couldn't tell if you were in downtown Birmingham or the middle of Detroit."
Basketball legend Earvin "Magic" Johnson was once a franchise owner of more than 100 Starbucks stores, including at least three in metropolitan Detroit. He sold all of his remaining stores in 2010, according to news reports.
A Starbucks executive said the license for the new Detroit location is held by a group of individuals, whom the company declined to identify.
30 December 2013
BANKRUPTCY DEBT DEAL TO SAVE DETROIT ABOUT $65M
Story first appeared on DetroitNews.com.
Detroit — Emergency Manager Kevyn Orr and lawyers for two banks reached a new $165 million agreement Tuesday for terminating a pension debt deal blamed for plunging Detroit into bankruptcy.
The new agreement saves Detroit an additional $65 million and was announced in court this morning before Chief U.S. District Judge Gerald Rosen, who is the lead mediator in Detroit’s bankruptcy case. The city spent two days trying to reach more favorable terms for ending the pension deal as part of a settlement seen as crucial to Orr's overall plan to shed billions in city debt.
“It's the first, I think it's fair to say, significant agreement in the bankruptcy,” Rosen said today, according to a court transcript. “We understand this has been difficult for everybody and we appreciate it.”
The deal must be finalized by Jan. 31 and approved by U.S. Bankruptcy Judge Steven Rhodes. It was unclear whether bond insurers and others who objected to the original $230 million deal will fight the new agreement.
“We are very pleased and hope that this is a change that Judge Rhodes is happy with,” lead Detroit bankruptcy lawyer David Heiman said Tuesday outside federal court before climbing into a taxi.
Asked if he was happy about reaching the deal early on Christmas Eve, he simply said: “Yes.”
Mediation talks have been private and security guards were stationed outside Rosen’s courtroom Tuesday morning. Rosen ordered the city, banks and bond insurers to meet Monday and on Christmas Eve to negotiate a deal that could free up money for restructuring.
In all, Detroit will save $128 million by terminating the troubled debt deal reached during ex-Mayor Kwame Kilpatrick’s tenure. That represents a 43 percent savings, according to Orr.
The settlement means Detroit won’t have to borrow as much money to pay off two banks, UBS and Bank of America. Instead of borrowing $350 million from London-based Barclays, the city will borrow $288 million.
Detroit will pay $165 million to the banks and spend $120 million on basic city services, including blight removal, updating city information technology and other “quality of life” improvements.
“This is an important development for the city and its residents because it means we can start moving forward on implementing needed investments in public safety and services,” Orr said in a statement Tuesday.
The negotiation sessions were ordered late last week after Rhodes expressed concern about Detroit’s plan to pay two banks up to $230 million to end an interest rate swap arrangement. Rhodes questioned whether the deal was fair to other city creditors.
“Clearly they were sent a message and they listened to what Judge Rhodes had to say – that he wasn’t going to approve it,” said Douglas Bernstein, a Bloomfield Hills attorney and expert on municipal bankruptcy. “Absent that push, nobody would have done anything and they would have had to fight it out with the other creditors.”
The renegotiated deal comes three weeks after Rhodes ruled that Detroit is eligible for Chapter 9 bankruptcy relief and said pensions can be cut in bankruptcy court.
“This is an indication that Detroit, at least for now, is starting to follow the same pattern as bankruptcies in other cities in that once you get by the eligibility dispute, settlements fall into place,” Bernstein said.
Before Rhodes raised his concern, Detroit proposed borrowing $350 million from Barclays. Orr wants to use most of the loan to pay off UBS and Bank of America for a hedge owed on interest rate swaps tied to $1.44 billion in 2005-06 pension debt.
A city banking consultant Friday said Detroit’s legal team was engaged in “extraordinarily active” negotiations with the banks to lower the swap settlement amount. Based on the value of the swaps, which is calculated based on increasing interest rates, Detroit could owe UBS and Bank of America $200 million if the city pays the banks 75 cents on the dollar, said James Doak, managing director at the consulting firm Miller Buckfire.
Several groups had objected to the initial deal, arguing it gave banks a greater payout than other creditors. Orr has proposed paying pensioners as little as 20 cents on the dollar.
Rhodes halted a trial Wednesday to determine whether Detroit could borrow the money and settle the swaps debt before presenting its debt-cutting plan of adjustment.
The judge scheduled the trial to continue Jan. 3.
A two-day trial last week focused on a soured loan deal Kilpatrick’s administration used to pump $1.44 billion into pension funds in 2005 and 2006. The deal included an interest rate swap piled on $800 million of pension debt, court records show.
Detroit’s interest rate swaps with UBS and Bank of America were supposed to protect the city from rising interest rates. But the deal soured for Detroit when prevailing interest rates plummeted in 2008-09, causing the city’s annual payments on the swaps to rise to $50 million.
Detroit — Emergency Manager Kevyn Orr and lawyers for two banks reached a new $165 million agreement Tuesday for terminating a pension debt deal blamed for plunging Detroit into bankruptcy.
The new agreement saves Detroit an additional $65 million and was announced in court this morning before Chief U.S. District Judge Gerald Rosen, who is the lead mediator in Detroit’s bankruptcy case. The city spent two days trying to reach more favorable terms for ending the pension deal as part of a settlement seen as crucial to Orr's overall plan to shed billions in city debt.
“It's the first, I think it's fair to say, significant agreement in the bankruptcy,” Rosen said today, according to a court transcript. “We understand this has been difficult for everybody and we appreciate it.”
The deal must be finalized by Jan. 31 and approved by U.S. Bankruptcy Judge Steven Rhodes. It was unclear whether bond insurers and others who objected to the original $230 million deal will fight the new agreement.
“We are very pleased and hope that this is a change that Judge Rhodes is happy with,” lead Detroit bankruptcy lawyer David Heiman said Tuesday outside federal court before climbing into a taxi.
Asked if he was happy about reaching the deal early on Christmas Eve, he simply said: “Yes.”
Mediation talks have been private and security guards were stationed outside Rosen’s courtroom Tuesday morning. Rosen ordered the city, banks and bond insurers to meet Monday and on Christmas Eve to negotiate a deal that could free up money for restructuring.
In all, Detroit will save $128 million by terminating the troubled debt deal reached during ex-Mayor Kwame Kilpatrick’s tenure. That represents a 43 percent savings, according to Orr.
The settlement means Detroit won’t have to borrow as much money to pay off two banks, UBS and Bank of America. Instead of borrowing $350 million from London-based Barclays, the city will borrow $288 million.
Detroit will pay $165 million to the banks and spend $120 million on basic city services, including blight removal, updating city information technology and other “quality of life” improvements.
“This is an important development for the city and its residents because it means we can start moving forward on implementing needed investments in public safety and services,” Orr said in a statement Tuesday.
The negotiation sessions were ordered late last week after Rhodes expressed concern about Detroit’s plan to pay two banks up to $230 million to end an interest rate swap arrangement. Rhodes questioned whether the deal was fair to other city creditors.
“Clearly they were sent a message and they listened to what Judge Rhodes had to say – that he wasn’t going to approve it,” said Douglas Bernstein, a Bloomfield Hills attorney and expert on municipal bankruptcy. “Absent that push, nobody would have done anything and they would have had to fight it out with the other creditors.”
The renegotiated deal comes three weeks after Rhodes ruled that Detroit is eligible for Chapter 9 bankruptcy relief and said pensions can be cut in bankruptcy court.
“This is an indication that Detroit, at least for now, is starting to follow the same pattern as bankruptcies in other cities in that once you get by the eligibility dispute, settlements fall into place,” Bernstein said.
Before Rhodes raised his concern, Detroit proposed borrowing $350 million from Barclays. Orr wants to use most of the loan to pay off UBS and Bank of America for a hedge owed on interest rate swaps tied to $1.44 billion in 2005-06 pension debt.
A city banking consultant Friday said Detroit’s legal team was engaged in “extraordinarily active” negotiations with the banks to lower the swap settlement amount. Based on the value of the swaps, which is calculated based on increasing interest rates, Detroit could owe UBS and Bank of America $200 million if the city pays the banks 75 cents on the dollar, said James Doak, managing director at the consulting firm Miller Buckfire.
Several groups had objected to the initial deal, arguing it gave banks a greater payout than other creditors. Orr has proposed paying pensioners as little as 20 cents on the dollar.
Rhodes halted a trial Wednesday to determine whether Detroit could borrow the money and settle the swaps debt before presenting its debt-cutting plan of adjustment.
The judge scheduled the trial to continue Jan. 3.
A two-day trial last week focused on a soured loan deal Kilpatrick’s administration used to pump $1.44 billion into pension funds in 2005 and 2006. The deal included an interest rate swap piled on $800 million of pension debt, court records show.
Detroit’s interest rate swaps with UBS and Bank of America were supposed to protect the city from rising interest rates. But the deal soured for Detroit when prevailing interest rates plummeted in 2008-09, causing the city’s annual payments on the swaps to rise to $50 million.
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