Kevyn Orr, Emergency Manager, Meets With Detroit Creditors To Avoid Bankruptcy

DETROIT, June 14 (Reuters) - Detroit's creditors will begin to learn on Friday morning what they can recover without driving the financially troubled city into bankruptcy when the city's emergency manager unveils his restructuring plan.

Manager Kevyn Orr has dropped hints that creditors would fare better by compromising now rather than in court should he opt to file what would be the biggest municipal bankruptcy in U.S. history.

He has begun laying a choice before creditors: Work with him by accepting cuts to what they are owed, or face the prospect of a Chapter 9 bankruptcy proceeding where they might have little influence on the outcome.

"I have a very powerful statute," Orr said at his first meeting with the public on Monday, referring to Michigan's new emergency manager law. "I have an even more powerful Chapter 9. I don't want to use it, but I am going to accomplish this job. That will happen."

Orr, the bankruptcy attorney Michigan officials tapped in March to run the city as emergency manager, has summoned public labor unions, bondholders, bond insurers and others to a Detroit airport hotel to present a 200-page restructuring plan.

With Michigan's biggest city buckling under more than $15 billion of debt, high unemployment and a sinking population base, Orr has contended Detroit is on an unsustainable path and that there is a 50/50 chance of a bankruptcy filing.

It would be a first for a major U.S. city as New York, Philadelphia and Cleveland all avoided formal bankruptcy filings, noted Jim Spiotto, a municipal bankruptcy expert at law firm Chapman and Cutler.

"The perception in the market today is that major municipalities don't file for Chapter 9," Spiotto said. "They are a safe investment and they will find a way to refinance and restructure. If that perception changes, that could increase the cost of borrowing" for Detroit.

Historically, bondholders have not lost the principal amount owed them as a result of financial restructurings of major cities.

Local media reports say that Orr will push creditors in his restructuring report to take as little as 10 cents for each dollar the city owes. Orr's spokesman declined to comment on the reports.

INSURERS LIKELY FIRST TO NEGOTIATE

Unlike in corporate Chapter 11 bankruptcies, judges have more limited powers in a municipal Chapter 9 proceeding. A judge in a Detroit bankruptcy could not replace Orr, liquidate the city, or force it to sell assets or raise taxes.

"All the protections for creditors in Chapter 11 are not applicable in Chapter 9," said Laura Bartell, a law professor at Wayne State University in Detroit.

Bartell added that the Friday meeting was just round one in a process that will take weeks.

"Of course this is going to be tough," Bartell said. "This is a massive financial morass with so many people and so many different interests."

In the meantime, Detroit's emergency manager says he intends to remain current on the city's debt payments including about $34 million due to owners of pension debt on June 15.

Heightened concerns that Detroit's bondholders face payment risks due to a possible bankruptcy filing or debt restructuring led to credit rating downgrades deeper into the junk category for Detroit's bonds by Standard & Poor's Ratings Services on Wednesday and Moody's Investors Service on Thursday.

Much of Detroit's debt is insured, giving bondholders protection against future defaults. Two of the insurers, MBIA, Inc and Assured Guaranty, will have someone at the Friday meeting, according to their spokespersons.

James Schwartz, head of municipal credit research at BlackRock, said he expects insurers to be at the front lines in negotiations with the city. That is a role bond insurers have played in the case of Alabama's Jefferson County, which is in the midst of the current biggest-ever municipal bankruptcy.

Also listening intently for details on Friday will be the presidents of the unions that represent Detroit's workers, from civil service to firefighters to police officers.

Depending on what Orr has to say on Friday, several dozen to several hundred police and firefighters may decide to retire rather than wait for an emergency manager-imposed new contract, union leaders said this week.

"We're going to lose the institutional knowledge and much of our leadership because they will not tell us what we need to know in order to make decisions for our families," said Dan McNamara, president of the 915-member Detroit Firefighters Association.

The Michigan Senate voted today to pass Senate Bill 114, legislation sponsored by Senator Vincent Gregory (D–Southfield) that would eliminate a loophole that allows building owners to use occupancy rates to avoid paying property taxes. This bill will ensure property taxes are equal for all office building and commercial park owners and maintain vital funding for public safety and other government services.

“Without the passage of this legislation, some property owners have been able to use this loophole to dramatically reduce their property taxes in lean times—and keep them low when their property values should have gone back up,” said Senator Gregory. “All building owners deserve a level playing field and should not be paying tax rates that are inconsistent with their competitors. More importantly, property taxes are a vital source of funding for our local governments, and this loophole has been allowing property owners to withhold funding that they are expected to pay for police officers, fire fighters, infrastructure and other universal community services.”

During Michigan’s economic struggles over the last few years, owners of large commercial office buildings began having their property taxes reassessed—and ultimately reduced—based on their dwindling occupancy rates. These reductions in property taxes have had an adverse effect on local governments that rely on property taxes to provide local police and fire and other vital services.

“I appreciate Senator Gregory’s efforts to address this problem and help local governments like ours recoup the money we are owed to provide the services businesses and residents alike depend on,” said Irv Lowenberg, Southfield City Treasurer. “Everyone in our community has equal access to police and fire, and everyone should be contributing equally to maintaining them.”

The Michigan Senate voted today to pass Senate Bill 114, legislation sponsored by Senator Vincent Gregory (D–Southfield) that would eliminate a loophole that allows building owners to use occupancy rates to avoid paying property taxes. This bill will ensure property taxes are equal for all office building and commercial park owners and maintain vital funding for public safety and other government services.

“Without the passage of this legislation, some property owners have been able to use this loophole to dramatically reduce their property taxes in lean times—and keep them low when their property values should have gone back up,” said Senator Gregory. “All building owners deserve a level playing field and should not be paying tax rates that are inconsistent with their competitors. More importantly, property taxes are a vital source of funding for our local governments, and this loophole has been allowing property owners to withhold funding that they are expected to pay for police officers, fire fighters, infrastructure and other universal community services.”

During Michigan’s economic struggles over the last few years, owners of large commercial office buildings began having their property taxes reassessed—and ultimately reduced—based on their dwindling occupancy rates. These reductions in property taxes have had an adverse effect on local governments that rely on property taxes to provide local police and fire and other vital services.

“I appreciate Senator Gregory’s efforts to address this problem and help local governments like ours recoup the money we are owed to provide the services businesses and residents alike depend on,” said Irv Lowenberg, Southfield City Treasurer. “Everyone in our community has equal access to police and fire, and everyone should be contributing equally to maintaining them.”

On Saturday, June 22, 2013 from 9 to 11:30 am the Cass Tech Alumni Association will hold its 26th Annual Pancake Breakfast. Hundreds of alumni and supporters attend every year. This annual breakfast serves as a forum to share information, network, acknowledge distinguished alumni and top achieving students as well as have fun and raise funds to support the students of Cass Technical High School.

Cass Technical High School’s String Quartet will provide classical music as the entertainment for the breakfast. For more information about how you can participate in Cass Tech Alumni Association’s 26th Annual Pancake Breakfast go to www.casstechalumniassociation.org or call 313.963.9988.
 

Seeks to End Duggan Legal Challenges to Allow Timely Printing of Ballots

Detroit, MI - Mayoral candidate Tom Barrow today took control of his case against Mike Duggan’s residency appeal when he requested that the Michigan State Supreme Court take superintending control directly, thus bypassing the Court of Appeals.

It is anticipated that the Michigan Supreme Court will decide the case as early as Friday, June 14, 2013. Barrow filed his required legal response to the Appeals Court this morning along with a formal request seeking such Supreme Court superintending jurisdiction.

“Detroiters need a quick and definitive resolution to this historic case, so that we can continue the campaign process unobstructed by legal maneuvers which delay and confuse voters with legalese and interminable appeals to shop for a favorable verdict,” Barrow said.

Citing the printing deadline to produce absentee ballots and the potential for appellate delay, Barrow decided to request the appeal be argued before the state’s highest court to avoid yet another round of appeals by Duggan should Barrow, as expected, prevail and keep Duggan off of the August primary election ballot.

“It is imperative that this election occur without a hitch, unlike 2009,” stated Barrow, an accountant, referring to the inability to recount 59,961 ballots where 9,501 would have changed the election’s outcome. The Wayne County Board of Canvassers also decertified all of the city’s 41,215 absentee ballots from the recount, “the integrity of the voting process has already been compromised by the poor judgment and slack operations of City Clerk Winfrey, and any delay in printing of the ballots may further erode confidence by the public, so it was important to expedite the decision.”

Barrow successfully bounced Duggan on June 12 from the mayoral ballot when Judge Lita M. Popke declared in a 22-page decision that Duggan did not fulfill the requirement to be a registered voter for one year at the time of filing his nomination petitions, Duggan submitted his signatures two weeks before the required year.

Duggan’s argument remains the same, that the judge erred in her decision, and that the court should recognize the last day of filing, May 14, 2013, rather than the day of submission, April 2, 2013, as the operative date to measure his voter registration term. Duggan registered to vote in Detroit after moving from Livonia, his longtime home, on April 16, 2012, but submitted his nominating petitions two weeks too early, on April 2, 2013.

Judge Popke emphatically rejected that argument reasoning that there exists no statute or case law to support Duggan’s contention that the filing deadline was what was meant by the Detroit Charter Commission and city’s voters by the term “by the time of filing”. The revised Detroit City Charter was vetted at every level of state and local government including the Charter Commission, Corporation Counsel, City Council, and Mayor, state Attorney General, the legislature and the Governor.

“In trying to reverse the decision and reinterpret the provision, the City’s Corporation Counsel is rejecting their own work, their own wording, and their approvals in order to buttress Winfrey’s error in judgment in allowing Duggan to submit his petitions without first vetting his voter registration requirements,” said Barrow. “Had Winfrey done her job with professionalism all of these legal proceedings would never have occurred so Mr. Duggan needs to lay the blame for his dilemma squarely on his friend Janice Winfrey”.

The Detroit riverfront has spurred $1 billion in investment on or along the riverfront over the past 10 years, which also includes projects currently under construction or planned for completion in the next several years, according to an Economic Impact Study released today by the non-profit Detroit RiverFront Conservancy.

“The Conservancy was launched in 2003 to not only develop public access to the riverfront, but to also serve as a catalyst for economic development,” said Matt Cullen, Chairman of the Detroit RiverFront Conservancy Board. “As we mark our tenth anniversary, we think it is the right time to take a deeper look at how the new riverfront is contributing to an improved quality of life for Detroiters and our region, and at the same time driving significant economic development for our community.”

The study was commissioned by the Conservancy and conducted by Conventions, Sports & Leisure International (CSL), a leading advisory and planning firm. CLS worked closely with the Conservancy throughout 2012, as well as the city of Detroit and with numerous public agencies and private sector entities, to conduct extensive research to better understand the economic impact return associated by the riverfront investment that has taken place over the last decade.

“The impact of the Detroit riverfront development goes beyond the construction completed by the Conservancy and our public and private partners over the last decade,” said Faye Alexander Nelson, president & CEO, Detroit RiverFront Conservancy. “We have partnered with others to lay the foundation for an active and vibrant downtown that has and will continue to contribute to the attraction of businesses, residents and visitors to Detroit.”

The study prepared by CSL also estimates more than $1 billion in future riverfront public and private investment and annual spending that would continue to add to the transformation of the riverfront area into a vibrant live-work-play environment. These include the future development of the 40-acre Uniroyal site and various east riverfront mixed-use projects. Riverfront improvements have supported 16,700 construction jobs over the course of the project, and provide on-going annual support for 1,300 jobs.

“The Detroit riverfront is perhaps the most valuable waterfront property in the United States that still has significant opportunities for development,” said George W. Jackson, Jr., president and CEO of Detroit Economic Growth Corporation. “The Detroit RiverFront Conservancy and its public, philanthropic and private partners have literally paved the way for economic revitalization by building the Detroit RiverWalk and making other infrastructure improvements. The economic impact reported today is only the first wave of results we expect to see as we all contribute to the accelerating momentum here.”

More than 3 million visitors enjoy the highly landscaped, well-maintained, secure and active riverfront annually. During 2012, CSL’s partner Custom Intercept Solutions (CIS) conducted 1,500 in-person intercept interviews with visitors to the riverfront. The study reported a number of findings, including:

· Annual spending by visitors, residents, employees and other operations along the riverfront is estimated at $43.7 million.

· Tax revenue generation supported by on-going riverfront activity is estimated at $4.5 million annually.

· 90 percent of visits to the riverfront would not have taken place without the significant riverfront improvements.

· Approximately 77 percent of respondents indicated that they came to the riverfront from ‘home’ indicating the riverfront was their destination as opposed to being in the riverfront/downtown area for work or other purposes.

· Approximately 55 percent of those that came to the riverfront from home traveled more than 10 miles to do so.

· Approximately 72 percent of “person on the street” respondents indicated that they visit the riverfront on a monthly or more frequent basis – of those frequent visitors, approximately 40 percent do not live or work downtown – illustrating the drawing power of the riverfront as a destination.

The complete Economic Impact Study can be downloaded from the Conservancy’s website at DetroitRiverfront.org.

LANSING – Senator Rebekah Warren (D – Ann Arbor) today announced the introduction of legislation that would expand the Michigan Beverage Containers Initiated Law of 1976, commonly known as the Bottle Bill or Bottle Deposit Law. The bill would expand the 10 cent deposit and return on bottles to include water and most other bottled beverages.
“The Bottle Deposit Law has been one of the most successful advances in environmental protection in our state in recent years,” said Senator Warren. “With an estimated rate of return of more than 95% on bottles currently covered under the legislation, expansion to cover water, juice and energy drinks would amount to unprecedented environmental benefits in this state, where our natural resources are so cherished.”
When Michigan’s bottle deposit law was first implemented in 1978 to reduce roadside litter, clean up the environment, and conserve energy and natural resources, the beverage containers included in the law were beer, soft drinks, carbonated and mineral waters. In 1988, the law was amended to also include wine coolers and canned cocktails.
The Bottle Deposit Law has been extremely successful with an estimated return rate averaging more than 95% over the last sixteen years. With the boom in the consumption of bottled water and juice in recent years and the resulting litter and landfill space being taken up by those products, the next logical step is to update Michigan’s beverage container law to further reduce litter and waste. 

Detroit native Leroy Williams, Jr., who holds the rank of master-at-arms 1st Class in the U.S. Navy, received a Purple Heart during a frocking ceremony at Naval Air Station Sigonella. Williams, a newly-appointed petty officer 1st class, was presented the Purple Heart by Capt. Chris Dennis, NAS Sigonella commanding officer, for injuries sustained in Afghanistan.
Williams, who was part of the NAS Sigonella Military Working Dog Division, was injured by an improvised explosive device (IED), according to an article sent to the Michigan Chronicle by the Navy. The eight pound explosive device detonated about three feet away from Williams, killing his dog, Dinomt. They had been tasked with searching for hidden explosive devices.
In the article provided by the Navy, Williams said they'd been looking for some "high valued" targets, considered to be terrorists; and that Dinomt saved both his life and that of an explosive ordinance disposal technician. The dog was between the IED and Williams and the technician.
Williams, who suffered traumatic brain injury and shrapnel in his leg, said he was "humbled" to receive the Purple Heart, stating in the Navy article that those who receive it aren't normally alive to hold it.
"Because I'm still here, I'm able to move forward, teach future dog handlers, and continue to do my job, which means a great deal to me," he said. "I'll carry it with honor, pride, and the memory of my dog."
During the awards ceremony, Williams also congratulated the other NAS Sigonella sailors who were frocked.
According to Lt. Joe Painter of the Navy Office of Community Outreach, in certain circumstances an officer selected for promotion to the next higher grade may be allowed to be "frocked" and wear the rank devices of this higher grade.

ANN ARBOR—Facebook is a mirror and Twitter is a megaphone, according to a new University of Michigan study exploring how social media reflect and amplify the culture's growing levels of narcissism.

The study, published online in Computers in Human Behavior, was conducted by U-M researchers Elliot Panek, Yioryos Nardis and Sara Konrath.

"Among young adult college students, we found that those who scored higher in certain types of narcissism posted more often on Twitter," said Panek, who recently received his doctorate in communication studies from U-M and will join Drexel University this fall as a visiting fellow.

"But among middle-aged adults from the general population, narcissists posted more frequent status updates on Facebook."

According to Panek, Facebook serves narcissistic adults as a mirror.

"It's about curating your own image, how you are seen, and also checking on how others respond to this image," he said. "Middle-aged adults usually have already formed their social selves, and they use social media to gain approval from those who are already in their social circles."

For narcissistic college students, the social media tool of choice is the megaphone of Twitter.

"Young people may overevaluate the importance of their own opinions," Panek said. "Through Twitter, they're trying to broaden their social circles and broadcast their views about a wide range of topics and issues."

The researchers examined whether narcissism was related to the amount of daily Facebook and Twitter posting and to the amount of time spent on each social media site, including reading the posts and comments of others.

For one part of the study, the researchers recruited 486 college undergraduates. Three-quarters were female and the median age was 19. Participants answered questions about the extent of their social media use, and also took a personality assessment measuring different aspects of narcissism, including exhibitionism, exploitativeness, superiority, authority and self-sufficiency.

For the second part of the study, the researchers asked 93 adults, mostly white females, with an average age of 35, to complete an online survey.

According to Panek, the study shows that narcissistic college students and their adult counterparts use social media in different ways to boost their egos and control others' perceptions of them.

"It's important to analyze how often social media users actually post updates on sites, along with how much time they spend reading the posts and comments of others," he said.

The researchers were unable to determine whether narcissism leads to increased use of social media, or whether social media use promotes narcissism, or whether some other factors explain the relationship. But the study is among the first to compare the relationship between narcissism and different kinds of social media in different age groups.

Funding for the study comes in part from The Character Project, sponsored by Wake Forest University via the John Templeton Foundation. 

On June 19th, 1865, Union General Gordon Granger arrived in Galveston, TX and belatedly announced not only the end of the Civil War (two months prior) but the freeing of all slaves in accordance with President Lincoln's Emancipation Proclamation of 1863. Many believe the two and a half year delay in the news that slavery had been abolished was a deliberate act to keep the 250,000 Texan slaves working the plantations.

Now free, many left the plantation in search of family members and a new place to settle. Life however, as "free" people would continue to be bring hardships and struggles that would follow former slaves as well as generations of their descendants.

June 19th, became known as "Juneteenth" and was first celebrated in Texas and other southern states to commemorate the end of slavery. The civil rights movement of the '50's and '60' s brought a resurgence of interest in the history of African-American struggles and in the celebration of Juneteenth. Texas made Juneteenth an official holiday in 1980, with many other states following suit. It is now widely celebrated as "freedom" day to promote African-American culture and history.

For more information, visit www.juneteenth.org