Timeline: Here’s how the federal public corruption probe unfolded | Detroit Free Press | freep.com. Real estate News: How Detroit's bankruptcy will hit the housing market. Detroit constitutes the biggest municipal bankruptcy in US history. What will the move mean for the beleaguered city's housing market? Detroit filed for Chapter 9 bankruptcy protection Thursday, paving the way to start managing the city’s estimated $20bn in outstanding debt. Get news stories like this straight to your inbox with our FREE newsletter Bankruptcy is likely to mean further benefit cuts for city workers, and public sector employees run the risk of seeing their retirement funds slashed or eliminated completely, according to a report by NBC News.
This could see potential homebuyers taken out of the market, or see further financial strain put on homeowners facing foreclosure. The bankruptcy could also lead to the city seeking back taxes from the nearly 150,000 current homeowners reported to have not paid property taxes in years. Property prices could ultimately feel the impact of the city’s bankruptcy. Welcome to Forbes. In Detroit, you can purchase a three-bedroom home for only $1,000. NEW YORK (CNNMoney) — Antjuan Wyatt and his wife recently closed on a three-bedroom, 1,500-square-foot house in a leafy, middle class Detroit neighborhood. The house needs some work — new furnace, new plumbing, new windows. But that’s OK, because Wyatt bought the place at auction for $1,000. “We were looking for a home in the suburbs, but the prices were too high,” said 27-year old Wyatt, who works at a local Chrysler plant and dabbles in real estate on the side.
“I was surprised I got this for $1,000.” In four months (and $30,000 in repairs), Wyatt hopes he can move into the refurbished gem with his wife and their two kids. Wyatt bought his home through a new program run by the Detroit Land Bank, an entity charged in early 2014 with addressing the huge number of vacant homes in the city. While some cities struggle to find innovative ways to build new housing, Detroit struggles to manage the homes in place.
The problem is hard to overstate. The land bank is trying to avoid this altogether. Union Attorney: Pensions In Jeopardy After Detroit Bankruptcy Filing. DETROIT (WWJ) – A union attorney says pensions of Detroit city workers are in jeopardy after the city filed for Chapter 9 bankruptcy. Bankruptcy documents show two public employee pension systems are Detroit’s top unsecured creditors. The city general retirement system’s claim is about $2 billion. The police and fire retirement system is owed more than $1.4 billion. There are more than 100,000 other creditors that include individual retirees, city workers, banks and property owners. Richard Mack, Jr., an attorney for AFSCME Council 25, said it’s “shameful” that the Gov. Rick Snyder approved the bankruptcy filing at this time, after promising negotiation with the city’s unions.
“I think it’s despicable, not just as a lawyer but as a citizen of this city. Mack said the quick decision to file for bankruptcy is something the unions will fight, in part because the constitution of the state of Michigan protects retirees. Speaking live on WWJ Newsradio 950 Friday morning, Gov. MORE: Gov. Timeline of Detroit's financial crisis. DETROIT (AP) - A timeline of Detroit’s financial troubles: - Detroit issues $1.44 billion of new debt in the form of pension obligation certificates to fund the city’s two retirement systems.
A 30-year repayment schedule is negotiated. Then-Mayor Kwame Kilpatrick agrees to swap a fixed interest rate for a variable one. A market rate increase would be to the city’s benefit. . - City issues $250 million in bond debt and begins seven-year run of posting at least $150 million in annual budget deficits. . - Interest rates begin to fall during national recession. - Due to falling interest rates, Detroit is required to pay an additional $1.14 billion in interest and hedging derivatives as part of the certificate of participation and swaps agreements. . - Short term cash flow shortages become more severe. . - The city has no deficit reduction plan and debt continues to soar. . - Questionable balances appear in audit report of pension plans. - Gov. . - U.S. For Detroit, a Crisis Born of Bad Decisions and False Hope.
Rebuilding Detroit: Two sides of 8 Mile | Pavement Pieces. Along the curved path of Woodstock Street near the corner of Durham Road, Byna Camden often cruises in her boat-sized, cream-colored Cadillac Eldorado as part of Green Acres radio patrol, keeping watch over the manicured lawns in this diverse, well-off neighborhood on Detroit’s Westside. To the east lives Shirley Burch, a long-time resident of Dequindre Street. Three blocks away is the street of her childhood, where a charred wooden skeleton of a two-story house sits atop a small plot of twigs and tumbleweeds, its shingles dangling from a sagging roof, the outer wall pried away from the gutter like a shoulder pulled out of its socket.
Both women live on either side of the city along 8 Mile Road, the commercial thoroughfare that cuts across the state of Michigan and divides the city of Detroit from its northern suburbs. The women say that today this line is blurred, that the wall to progress has started to crumble beneath the feet of a new generation. Did you like this? Wall Separating Whites from Blacks. This wall forms the western boundary of the Alfonso Wells Memorial Playground and extends in a north-south direction from just south of 8 mile Road toward Van Antwerp Park between Mendota and Birwood in northwest Detroit, not far from the intersection of Wyoming and 8 Mile.
The economic catastrophes of the Depression put most property owners at the risk of defaulting on their homes. Recognizing this severe problem, the Roosevelt Administration established federal agencies to both increase funds available for mortgages and use the power of the federal purse to ensure mortgages. The Home Owners Loan Corporation created a national system of urban maps indicating the credit worthiness of neighborhoods. Areas in which all the homes were well kept and attractive were coded in green. Neighborhoods in which many homes were inexpensive and run down were coded in red a nd, since the risk of default was high there, these areas did not qualify for government-backed mortgages. Photo: Detroit's wall of racism: Six-foot barrier that kept black children away from middle-class whites is chilling reminder of segregated America. The 6ft high wall was erected in 1940 in Birwood, Detroit, U.S.Separated homes built for middle-class whites from black familiesRacial dividing lines no longer exist, but the wall still stands By Associated Press Reporter Published: 08:24 GMT, 1 May 2013 | Updated: 15:55 GMT, 1 May 2013 Half a mile long and a foot thick, this concrete wall was built to separate black and white families living in the same Detroit neighbourhood in the 1940s.
More than 70 years on, the six-foot high wall still stands in Birwood - a chilling reminder of segregated America, and a physical embodiment of racial attitudes the country has long since tried to forget. But despite its dark history, the community has managed to turn the concrete barrier into a symbol of inspiration and hope. Scroll down for video Division line: The six foot high concrete wall, photographed in 1941, was built to separate homes built for middle-class white people from black people living in the area Still, the wall is not forgotten.
A View from Both Sides of Eight Mile Road: Introducing a New Series about Detroit. Woodward Avenue, looking north toward Eight Mile Road, in Detroit, Michigan, c. 1965 Woodward Avenue, the boulevard of my youth If I had a nickel for every time I drove on (or walked on, or crossed) Woodward Avenue, I used to say, I would be a wealthy woman. That’s because I was born mere blocks from Detroit’s main drag, and lived my first forty years within a couple of miles away, at the farthest, from it. When I was closest, between 1979 and 1987, I was only about six houses away from it--right off of Woodward, across the street from Palmer Park. Back in the day, I could run around Palmer Park (a circumference of about 2.5 miles) in approximately 25 minutes. Or if I had a nickel for every time I rode downtown on a bus along Woodward Avenue; those trips would add up, too.
Yes, the SEMTA bus stop was near the 6 Mile marquee. Woodward Avenue is important for other reasons of course than my near-lifelong proximity to it. 1964 Labor Day Parade, Woodward Avenue, Detroit. Why Eight Mile Road? Report2.pdf. M-102 (Michigan highway) This article is about the Michigan state trunkline highway. For the former U.S. Highway, see U.S. Route 102. 8 Mile Road has carried major cultural significance; since the mid-20th century, as the city demographics have changed, it has served as a physical and cultural dividing line between the wealthier, predominantly white northern suburbs of Detroit and the poorer, increasingly black city.
The racial patterns have changed, as more middle-class African Americans have also moved north of 8 Mile, but the socioeconomic divide between the city and suburbs remains. 8 Mile Road exit sign on I-75, at 7 Mile Road in Detroit 8 Mile Road exit off I-94 During 1963, the M-102 designation was extended northerly along Jefferson Avenue through St. Racial distribution of Metro Detroit from 2000 Census White African American Asian Hispanic Other (Each dot represents 25 people) According to the 2000 U.S.
Map of Michigan showing the Michigan Baseline used for survey purposes (click to enlarge) The 8 Mile Road Divide: Detroit's Bankruptcy and its Wealthy Neighbour. In the 2000 U.S. Census, Oakland County, Michigan, was by one measure the fourth-wealthiest in the U.S.; although the county slipped somewhat in 2010, Bloomfield Hills – its most prosperous section – remains one of the most affluent half a dozen suburbs in America. This is the terrain of exclusive country clubs and private academies, where the multi-millionaire presidential candidate Mitt Romney went to school, and banks advertise openings for ‘Wealth Relationship Associates.’
Cross its southern border – the 8 Mile Road – and you enter Detroit, which yesterday became the largest ever U.S. city to file for bankruptcy. With debts of $15bn, 70,000 abandoned properties, and well over a third of its residents living below the poverty-line, the Motor City stands in stark juxtaposition to its well-heeled next door neighbour. Detroit’s fall is well known. But as well as plotting Detroit’s fall through time we should also do so through space.