Detroit Motor City

[averagejoe]

Detroit in 'financial emergency', declares governor Rick Snyder

Emergency state 'not hard to justify' says Snyder when faced with recent damning report claiming Detroit close to collapse.

http://www.guardian.co.uk/world/2013/ma ... nor-snyder

[averagejoe]

Wouldn't you know it! Wall street Bankers make money on city/people's misfortunes......

Only Wall Street Wins in Detroit Crisis Reaping $474 Million Fee.

The only winners in the financial crisis that brought Detroit to the brink of state takeover are Wall Street bankers who reaped more than $474 million from a city too poor to keep street lights working.
Enlarge image Only Wall Street Wins in Detroit Crisis Reaping $474 Million Fee

The city started borrowing to plug budget holes in 2005 under former Mayor Kwame Kilpatrick, who was convicted this week on corruption charges. That year, it issued $1.4 billion in securities to fund pension payments. Last year, it added $129.5 million in debt, 9.3 percent of its general-fund budget, in part to repay loans taken to service other bonds.

http://www.bloomberg.com/news/2013-03-1 ... n-fee.html

[Static]

They are also busy buying up the land at rock bottom prices.

[averagejoe]

Detroit rock bottom: City announces $2.5bn debt default!

Detroit said it will stop making payment on $2.5 billion of the city’s massive $18.5 billion debt and has asked creditors to accept 10 cents in the dollar of what the city owes them in a bid to avoid the largest municipal bankruptcy filing in US history.

Detroit Emergency Manager Kevyn Orr said the city would stop
making payments on its unsecured debt in a bid to “conserve cash”
for vital services like police and firefighters.

Read more.....

http://rinf.com/alt-news/breaking-news/ ... ult/42229/

[averagejoe]

Awesome! Detroit taxpayers to fund 60% of new Red Wing Arena! See, Even if your city is bankrupt. They can still find money for huge projects!

The public will pay nearly 60 percent of the cost of the proposed $450 million Detroit Red Wings arena in downtown Detroit under a plan disclosed Wednesday.
Property taxes would pay for $261.5 million (58 percent) of the building's construction cost while the team's ownership would provide $188.4 million (42 percent), according to details provided by the state.

Those are July 2013 dollars based on bonds with a 5.91 percent interest rate.

http://www.crainsdetroit.com/article/20 ... lan-shows#

[tgm929]

They're using existing property taxes (no tax increases). Property taxes from the downtown core only....so mostly businesses. Will create over 500 new permanent jobs and protect over 600 existing jobs, not to mention the construction jobs it will create. It will also revitalize a pretty much dead area.

Red Wings use it 40 to 50 nights out of 365. Remainder can be used to generate all kinds of revenue for other businesses.

What would you prefer they do? Just sit back and do nothing until everyone leaves Detroit? The only hope for the city to recover is for projects like this.

[GordonH]

Billionaire owners of sport franchises having taxpayers flip part of the bill..... why, if you want a new arena or stadium build it on your own dime.

Yes, I am a fan of BC Lions the stadium is owned by Province of BC
Also I am fan of hockey Rogers Arena (formally known as GM Place) was built totally with private money, not a dime of taxpayers money was used.

[tgm929]

Billionaire owners of sport franchises having taxpayers flip part of the bill..... why, if you want a new arena or stadium build it on your own dime.

Yes, I am a fan of BC Lions the stadium is owned by Province of BC
Also I am fan of hockey Rogers Arena (formally known as GM Place) was built totally with private money, not a dime of taxpayers money was used.

Normally I would agree, but in this case, who would build an arena by themselves in Detroit right now? Plus the money they are using is for infrastructure improvements in that specific area, so it's almost all business' property tax and not all of Detroit is paying. And again, they are using existing tax money. Not creating a new tax or increasing existing taxes like they are doing in Edmonton and do in other areas. I think this specific one is a bit unique because of the circumstances in Detroit. Imagine what would happen to Detroit if one or two of their teams left. They might as well just bulldoze it.

[GordonH]

Billionaire owners of sport franchises having taxpayers flip part of the bill..... why, if you want a new arena or stadium build it on your own dime.

Yes, I am a fan of BC Lions the stadium is owned by Province of BC
Also I am fan of hockey Rogers Arena (formally known as GM Place) was built totally with private money, not a dime of taxpayers money was used.

Normally I would agree, but in this case, who would build an arena by themselves in Detroit right now? Plus the money they are using is for infrastructure improvements in that specific area, so it's almost all business' property tax and not all of Detroit is paying. And again, they are using existing tax money. Not creating a new tax or increasing existing taxes like they are doing in Edmonton and do in other areas. I think this specific one is a bit unique because of the circumstances in Detroit. Imagine what would happen to Detroit if one or two of their teams left. They might as well just bulldoze it.

I am of thinking you either sink or swim on your own dime, I also did not agree with the bailouts 5 years ago either.
Multibillionaire's like owners of Red Wings and also Oilers should use their own money.

[averagejoe]

They're using existing property taxes (no tax increases). Property taxes from the downtown core only....so mostly businesses. Will create over 500 new permanent jobs and protect over 600 existing jobs, not to mention the construction jobs it will create. It will also revitalize a pretty much dead area.

Red Wings use it 40 to 50 nights out of 365. Remainder can be used to generate all kinds of revenue for other businesses.

What would you prefer they do? Just sit back and do nothing until everyone leaves Detroit? The only hope for the city to recover is for projects like this.

Maybe the City of Detroit could have paid of some it's debt off first. Many of former city pensioners going to be lose out.

[rabidmole]

I have just spent the last few days in Detroit and it is sad to see the crumbling buildings and lack of maintenance in public properties. It is an unusual place indeed as is Windsor. The big concern now is one person owns the ambassador bridge crossing and rakes in millions on fees for travellers and freight moving both way across the border. Detroit owns half of the second crossing, the tunnel, along with Windsor, if the same dude buys the US side of the tunnel in bankruptcy proceedings he will own the rights to both border crossings as well as fuel services and duty free along with the land on both sides of the bridge. Windsor-Detroit is the biggest truck crossing along the 49th. I have been watching it and it is haywire! Odd indeed.
He charges 4.75 each way for cars and around 4 bucks per axle for trucks. Hundres of trucks were lined up to cross the bridge at 4:30 today

http://en.wikipedia.org/wiki/Ambassador_Bridge

[GordonH]

I have just spent the last few days in Detroit and it is sad to see the crumbling buildings and lack of maintenance in public properties. It is an unusual place indeed as is Windsor. The big concern now is one person owns the ambassador bridge crossing and rakes in millions on fees for travellers and freight moving both way across the border. Detroit owns half of the second crossing, the tunnel, along with Windsor, if the same dude buys the US side of the tunnel in bankruptcy proceedings he will own the rights to both border crossings as well as fuel services and duty free along with the land on both sides of the bridge. Windsor-Detroit is the biggest truck crossing along the 49th. I have been watching it and it is haywire! Odd indeed.
He charges 4.75 each way for cars and around 4 bucks per axle for trucks. Hundres of trucks were lined up to cross the bridge at 4:30 today

http://en.wikipedia.org/wiki/Ambassador_Bridge

We will own.... well pay for new bridge http://www.cbc.ca/news/canada/windsor/s ... troit.html

[averagejoe]

Is Chicago the next major city to go bankrupt?

Chicago Next? Windy City Cash Balance Plummets To Only $33 Million As Debt Triples.

While everyone's attention is focused on the Detroit bankruptcy, and just what assets the city will sell in lieu of raising a DIP loan, perhaps it is time to refocus attention to the city 300 miles west: Chicago. According to the Chicago Sun Times citing year-end audits, Obama's former right hand man, Rahm Emanuel, closed the books on 2012 with $33.4 million in unallocated cash on hand — down from $167 million the year before — while adding to the mountain of debt piled on Chicago taxpayers. In addition to a liquidity problem, Chicago may also be quite insolvent as the city's total long-term debt soared to nearly $29 billion. That’s $10,780 for every one of the city’s nearly 2.69 million residents. More than a decade ago, the debt load was $9.6 billion or $3,338 per resident. Of course, in a world in which debt is "wealth", this is great news... at least until debt becomes "bankruptcy."

http://www.zerohedge.com/news/2013-07-2 ... bt-triples

[hobbyguy]

So where's the TARP - like program for cities? It's ok to bail out Wall St. but not ordinary folks? And Wall St. reaps massive fees?

Something wrong with this picture...

[averagejoe]

Are the Chinese starting to buying up Detroit?

Why Are The Chinese Gobbling Up Real Estate And Businesses In Detroit?

Something very strange is happening to Detroit. Once upon a time, it was the center of American manufacturing and it had the highest per capita income in the United States. But now the city is dying and the Chinese are moving in to pick up the pieces. Lured by news stories that proclaim that you can buy homes in Detroit for as little as one dollar, Chinese investors are eagerly gobbling up properties. In some cases, this is happening dozens of properties at a time. Not only that, according to the New York Times “dozes of companies from China” are investing in businesses and establishing a presence in the Detroit area. If this continues, will Detroit eventually become a city that is heavily dominated by China?

http://endoftheamericandream.com/archiv ... in-detroit