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After bankruptcy, few options for Detroit to grow revenue

After bankruptcy, few options for Detroit to grow revenue
Slash costs, fix the balance sheet and take money that was once tied to debts and spend it on police, fire and other city services. That's the premise of Detroit's bankruptcy: short-term pain for long-term benefit, and cuts for Detroit's creditors, but better outcomes for residents. But of the $1.7 billion that Detroit's post-bankruptcy plan is expected to generate, only about $900 million comes from restructuring the city's debts. About $483 million comes from projected new revenues, $358 million from cost savings. "We don't have $1.7 billion in the bank," said former Detroit emergency manager Kevyn Orr, who led the city through bankruptcy. "We think we've made our estimates reasonable." Simple enough on paper, but in reality? In short, it's not that easy. "It's very fragile," said Sheila Cockrel, a 16-year veteran of the Detroit City Council who is now the president of Crossroads Consulting. Why is it different now? Like a lot of Detroit's problems, it sounds simple. Where cash comes from

http://www.freep.com/story/opinion/columnists/nancy-kaffer/2015/01/04/detroit-revenue-bankruptcy/21215969/

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U.S. Automakers Thrive as Detroit Goes Bankrupt The Motor City was the car capital of the world when David Cole graduated from a Detroit high school in 1955 and headed off to college to study auto engineering. Six decades later, the “motor” has mostly moved out, he said. Many of the factories that used to dot the city and employ thousands moved to suburbs, other U.S. states or to China and Brazil as the auto industry became global and manufacturing focused on getting faster and less expensive, said Cole, chairman emeritus of the Center for Automotive Research in Ann Arbor, Michigan, and son of a General Motors Co. president. “The auto industry was forced to change, driven by industry pressure, and it evolved,” Cole said.

Detroit Race Riots 1943 . Eleanor Roosevelt . WGBH American Experience As the nation's most important production center during the Second World War, the city of Detroit was popularly known as the "arsenal of democracy." The city's overwhelmingly industrial landscape had been rapidly expanding since the manufacturing boom of the post-Civil War era. Yet its industrial prosperity masked underlying and deeply-rooted racial animosities. As the city's many production plants mobilized for the war effort, employers turned to a ready pool of African American labor from the South. Yet Detroit was in no way equipped to accommodate these new laborers.

America's 10 sickest housing markets - Business - Real estate For three years, the real estate market has been going in one direction — primarily down. Some areas, however, have begun to recover. Recent S&P/Case-Shiller data show that among the top 20 housing markets in the U.S., 18 had very modest improvements in sales prices during May. Others, like Washington and Boston, have began to at least stabilize from a year ago. Return to suburbs is the new move to the city - Business - Forbes.com For well over a decade urban boosters have heralded the shift among young Americans from suburban living and toward dense cities. As one Wall Street Journal report suggests young people will abandon their parents’ McMansions for urban settings, bringing about the high-density city revival so fervently prayed for by urban developers, architects and planners. Some demographers claim that “white flight” from the city is declining, replaced by a “bright flight” to the urban core from the suburbs. “Suburbs lose young whites to cities,” crowed one Associated Press headline last year. Yet evidence from the last Census show the opposite: a marked acceleration of movement not into cities but toward suburban and exurban locations.

How Detroit Leaders Ignored Causes of Bankruptcy for 65 Years By Lew Mandell The signs of Detroit’s decline have been well-recognized for 65 years. Photo courtesy of Spencer Platt/Getty Images. For the past few months, Lew Mandell, author of “What to Do When I Get Stupid,” has been our retirement finance guru. He’s addressed multiple ways to close the retirement income gap, encouraging boomers to plan ahead before they lose their financial faculties to old age. The best retirement deal, he thinks, is the one that guarantees an 8.3 percent return — for life: Single Payment Immediate Annuities. Marilyn Salenger: ‘White flight’ and Detroit’s decline By Marilyn Salenger July 21, 2013 Marilyn Salenger is president of Strategic Communications Services and a former correspondent and news anchor for several CBS stations. An almost palpable sadness has swept across the country at the news that the city of Detroit has filed for bankruptcy. While the possibility of this had been discussed, the reality of what was once the fourth-largest city in the United States sinking to such depths is disheartening, a moment people will remember for years to come. To understand that the decline and bankruptcy represent so much more than dollars and cents requires a step back to a time that many would prefer to forget but remains unforgettable. In the late 1960s,racial tensions engulfed parts of our country, at the cost of lost lives and abject destruction.

Detroit just filed for bankruptcy. Here’s how it got there. By Brad Plumer July 18, 2013 On Thursday, the city of Detroit filed for bankruptcy — the largest city in the United States ever to do so. (Carlos Osorio/AP) To get a better sense of just how Detroit got into such dire financial straits, it's worth browsing through this May report on the city's finances and this "Proposal for Creditors" from June. Detroit's emergency manager Kevyn Orr laid out all the problems and economic headwinds facing the city.

Whites Moving to Detroit, City That Epitomized White Flight Whites are moving back to the American city that came to epitomize white flight, even as blacks continue to leave for the suburbs and the city’s overall population shrinks. Detroit is the latest major city to see an influx of whites who may not find the suburbs as alluring as their parents and grandparents did in the last half of the 20th century. Unlike New York, San Francisco and many other cities that have seen the demographic shift, though, it’s cheap housing and incentive programs that are partly fueling the regrowth of the Motor City’s white population.

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