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Detroit Rising: Life after bankruptcy

Detroit Rising: Life after bankruptcy
One year after a federal judge approves Detroit's bankruptcy exit plan, progress has been made while looming challenges remain, especially city pensions The City of Detroit has more than enough cash to pay its daily bills. Thousands of busted streetlights have been replaced. That's the good news. Among the greatest concerns: a multibillion-dollar pension bill that starts coming due in less than a decade. The city is on the hook to make a balloon pension payment estimated at more than $100 million in 2024 alone. So far, the early returns for the investments since the bankruptcy are falling short. On Nov. 7, 2014, federal bankruptcy Judge Steven Rhodes gave a green light for Detroit's government to cut more than $7 billion in unsecured liabilities and pour $1.4 billion over 10 years into basic services to rehabilitate the city reeling from a decades-long population exodus, disinvestment and cash drain. It was officially known as a plan of adjustment. Detroit's bond rating up, but at a cost

9 ways Detroit is changing after bankruptcy When Detroit filed for bankruptcy last July, observers around the world were shocked by how far some city services had deteriorated -- though it was no secret to residents. Average police response times clocked in at almost an hour. Tens of thousands of broken streetlights meant entire streets go dark at nightfall. And though Detroit has more than 200 municipal parks, the city could only afford to keep about a quarter of them open. How has the city changed since it entered bankruptcy? The Detroit Police Department says it is focused on hiring non-uniformed administrative staff so that it can move officers from desk duty to street patrols to concentrate on high-crime areas and react in real time to crime trends. A nonprofit group also was set up to administer $8 million in private donations from companies including Penske Corp. and Detroit's automakers that purchased and delivered 100 new police squad cars and 23 new ambulances — a boost to a city fleet that's old and prone to breakdowns.

Museum History — The Detroit Institute of Arts Print Page We invite you to learn more about our past and the exciting things to come. The DIA. A brief history The DIA has been a beacon of culture for the Detroit area for well over a century. The DIA's collection is among the top six in the United States. The museum covers 658,000 square feet that includes more than 100 galleries, a 1,150-seat auditorium, a 380-seat lecture/recital hall, an art reference library, and a state-of-the-art conservation services laboratory. The DIA's collection is among the top six in the United States, comprising a multicultural and multinational survey of human creativity from prehistory through the 21st century. A hallmark of the DIA is the diversity of the collection. The museum's director is Salvador Salort-Pons, who arrived in 2008 from the Meadows Museum at Southern Methodist University in Dallas. View our board of directors Whistleblower Policy Support the DIA Your membership and donations are critical to the museum’s success. Give a Membership

Ford to invest $1.6 billion for new plant in Mexico Ford sparked outrage from the UAW and Republican front-runner Donald Trump on Tuesday, uniting two unlikely foes, after the automaker said it would invest $1.6 billion to build a new plant in Mexico and create 2,800 jobs. The Dearborn automaker has been among Trump's targets for months because of the widely expected investment south of the border. The UAW, which reached a new four-year contract with the automaker last November, also has long been critical of automakers increasingly building new plants in Mexico. The union and Trump said Tuesday that America's trade deals lead to job losses. "These ridiculous, job-crushing transactions will not happen when I am president," Trump said in a statement issued by his campaign. Trump has previously said if elected president he would threaten the company and any other automaker with a 35% tariff on products or parts imported into the U.S. He also said the investment in Mexico will not result in a loss of jobs in the U.S.

Detroit's biggest crime problem: Lack of police, poll finds Detroit — Detroiters overwhelmingly feel the biggest contributor to crime is a lack of police on the streets — and they'd gladly pay more taxes to hire more officers, according to a poll commissioned by The Detroit News and funded by the Thompson Foundation. The finding comes weeks after the City Council refused to put a measure on the ballot to do so. The poll found that 49 percent of residents don't feel safe in their neighborhoods. The results cross most income and gender lines, but generally those who make more money feel safer in their neighborhoods. The survey also found that residents have mixed views of the Police Department, but generally liked Police Chief Ralph Godbee. "I'd be willing to pay more taxes if it meant the police could come around more," said Levona Coles, 74, who lives on Detroit's west side. A strong majority — 60 percent — said they would pay more in taxes for more police and firefighters. Detroit Board of Police Commissioners Chairman the Rev.

Detroit Bankruptcy Filing Raises Big Questions Detroit has long been a watchword for urban decay, with vacant lots, high crime rates, and serious financial problems defining the city’s image. But Thursday’s bankruptcy filing raises many questions, beginning with its legitimacy. Many people in the Democratic city, where more than eighty per cent of the residents are black, believe that it represents an undemocratic political gambit by a Republican-controlled state government. The immediate question is whether a judge will block the bankruptcy petition, which was filed in federal court by Kevyn Orr, the city’s “emergency financial manager,” who earlier this year was appointed by Michigan’s Republican governor, Rick Snyder. Orr had been threatening this move for months, and, after negotiations with the city’s pension funds and bondholders broke down, he followed through. On the face of it, that seems unlikely to happen, but there are some extenuating factors. Another question is whether the bankruptcy filing was truly necessary.

Auto Bailout or UAW Bailout? Taxpayer Losses Came from Subsidizing Union Compensation June 13, 2012 | Backgrounder on Economy By James Sherk and Todd Zywicki Key Points Bankruptcy law calls for similarly situated creditors to receive equal treatment. Abstract: The U.S. government will lose about $23 billion on the 2008-2009 bailout of General Motors and Chrysler. The government bailout of General Motors (GM) and Chrysler between 2008 and 2009 will cost taxpayers approximately $23 billion. Legally, the UAW’s claims had the same status as those of other unsecured creditors, but the UAW recovered a much greater proportion of the debts that General Motors and Chrysler owed the union. UAW members at General Motors and Chrysler are among the most highly paid workers in America. Detroit Bankruptcy General Motors, Chrysler, and Ford were in serious trouble well before the recession started. GM and Chrysler instead asked Washington for a taxpayer bailout. A substantial amount of these funds will never be repaid. Defending the Bailout Bankruptcy Liabilities Lost Savings. Conclusion

As Detroit breaks down, scourge of arson burns out of control The future of the American city Once, Americans fled inner cities for a suburban paradise. Now an urban revival is making the suburbs the home of the poor ©Spencer Lowell Shortly after Barack Obama was inaugurated in January 2009, Rip Rapson, head of the Kresge Foundation, a Michigan-based family endowment, got a call from a senior White House official. The topic was the economically blighted city of Detroit. The story of downtown Detroit’s emergence from the ashes is still too confined to declare the city as a whole in revival. There may be greater enthusiasm in September when ground will be broken on Detroit’s first streetcar project since the 1950s. “Most people figured out that Detroit needs mass transit to revive,” says Dan Gilbert, founder and chairman of Quicken Loans, America’s third-largest mortgage originator. Audacious as his gamble is, the odds may be turning in Gilbert’s favour. Abandoned Victorian houses less than one mile from downtown Detroit in the Brush Park neighbourhood©James P. ©James P. Ken Sawa.

Detroit’s white population rises Detroit’s white population rose by nearly 8,000 residents last year, the first significant increase since 1950, according to a Detroit News analysis of U.S. Census Bureau data. The data, made public Wednesday, mark the first time census numbers have validated the perception that whites are returning to a city that is overwhelmingly black and one where the overall population continues to shrink. Many local leaders contend halting Detroit’s population loss is crucial, and the new census data shows that policies to lure people back to the city may be helping stem the city’s decline. “It verifies the energy you see in so many parts of Detroit and it’s great to hear,” said Kevin Boyle, a Pulitzer Prize-winning author and historian who studies the intersection of class, race, and politics in 20th-century America. “The last thing I want to do is dampen the good news, but the problem is Detroit is still the poorest city in the U.S. “I think it’s a trend. “It’s not creating an even playing field.”

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