Minehaha Forman is a freelance writer living in Detroit. Born on a farm in Belize, Central America, she moved to the U.S. to pursue higher education and a career in writing. Forman’s work has been featured in many metro Detroit publications including Dbusiness magazine, Hour magazine and Corp! magazine. She has provided event coverage for Real Times Media and The Michigan Chronicle for three years, covering the popular Pancakes and Politics speaker series and other events. Prior to working with the Chronicle, Forman was a blogger with The American Independent News Network where she covered Metro Detroit politics and the 2008 presidential election. She will continue to provide commentary and coverage of Detroit politics as a blogger and feature writer for The Michigan Chronicle’s website.
Website URL: http://truthordarestories.blogspot.com/
For years Detroit has been on the brink of one financial crisis after another. While the threat of running out of cash is an ever-looming one, this time the State is not buckling under Detroit’s reluctance to change the status quo (or at least the division in leadership over how to change it).
Ultimately, the buzz about the escrowed state funds is a tiny spec on the surface of an enormous financial monster. Let’s be real: Detroit is in way deeper -*- than a $30 million bond sale installment and a few unpaid furloughs can remedy. The city council could approve Miller Canfield contracts all day long and the city would still be down the well so to speak.
At this point big chunks of city operations need to be dissovled or merged. This is serious restructuring that city leaders have been able to pull off over the past decades of post industrial depression.
The consent agreement with the State put in place last spring in lieu of an EFM just isn’t cutting it. As Detroit City Councilman Andre Spivey said on Tuesday:
“…The truth of the matter is we are 8 months away from when the consent agreement [was implemented]. We could have had a baby in this time. But nothing has been done.”
That’s why an Emergency Financial Manager (EFM) now seems inevitable. Since Public Act 4 was suspended in November, the State must revert to the old emergency manager law, Public Act 72, which limits the powers of a state-appointed appointed money czar. By now it’s not a question of “if” anymore, rather “when” and “who”.
While an emergency financial manager would not have the sweeping powers that an emergency manager would have had under PA4, he or she could still take control of financial matters [hopefully] without getting too tangled in politics.
That said, perhaps the most important question for Gov. Risk Snyder when is comes to appointing an EFM to Detroit is the “who.”
It will take an individual of tremendous resolve, intelligence, and overall chutzpah to turn around the roaring southbound train that is Detroit’s finances.
The person who is appointed to head Detroit’s money matters will have to have the resolve of a Hillary Clinton and the optimistic, fiscally conservative outlook of a Rick Snyder.
If it is as Mayor Dave Bing said last week and leading Detroit is the second hardest job in the country, the EFM position could easily line up as the third most challenging.
Aside from negotiating a cease-fire in the Middle East, perhaps negotiating with city unions for hefty pay cuts and layoffs are the most difficult negotiations to make in the nation.
Snyder should appoint as Detroit’s EFM a woman with the character and intelligence of Hillary Clinton.
Conservative Stephen Hadley, former national security adviser to President George W. Bush said recently of Clinton:
“Secretary Clinton in particular stepped forward and exerted some leadership. That's very good news, because what the Middle East has been crying for is greater U.S. leadership."
Well, what Detroit has been crying for is greater leadership, too. So if an emergency financial manager is the only way out, lets make sure that manager is thoroughly vetted and can to the dang thing.
When I was a kid whenever I asked my grandma for something new she always sharply reminded me that, “money doesn’t grow on trees.”
Turns out, she was wrong. Money does grow on trees. In fact, with the gift foresight and some startup funds, it can grow on just about anything.
Don’t take it from me. Just ask Warren Buffet, the third richest person in world who made his fortune based on money growing speculation. He’ll tell you something that all investors know, but perhaps haven’t fully mastered: “The lower things go, the more I buy. We are in the business of buying," Buffet told Fortune magazine in an interview. Well, here in the Tha D, “things” have pretty much bottomed out.
And unless Detroit is the one city that defies history, there’s nowhere to go but up, up, up. You don’t have to be a soothsayer to see the signs. It’s a slow, slow uptick, but it’s happening. It’s not rocket science but it’s a science of analysis: The people who make the big bucks are the ones who see them coming before they land.
John Hantz, the successful investor who plans to buy up a big swath of Detroit for cheap, is one of them. He knows that in 40 years “things”—in this case city land—won’t be dished out at fire sale prices. No. The early bird gets the worm and it’s just a rule of investing.
I ain’t mad at him. He’s a talented guy. He’s a smart investor. He didn’t get rich by leading clients of his finance-consulting firm astray or by making poor investment decisions himself. So let’s put the emotional responses to this proposed land sale aside just look at the facts here.
Hantz has pitched this proposal as a philanthropic act, claiming that he only wants to spend millions on the area surrounding his Indian Village home simply to make Detroit a better place to live; simply because Detroiters deserve better, that more research has to be done on using urban and for agricultural purposes. We can operate under the guise of philanthropy or we can just call it what it is. I prefer the latter. So let’s be real: this is a business investment.
In Detroit there is an element of class warfare, a rich v. poor battle raging on under and at the surface and often justly so presenting a grand clash of idealism and realism given the country and society we live in. Rich people can do stuff that poor people can’t. But if that’s not the oldest story in the book, then I don’t know what is. Well, maybe prostitution is but I digress.
The Hantz land proposal comes from Hantz Group subsidiary Hantz Woodlands, LLC. The company would buy 1,500 vacant city parcels for $600,000 with agriculteral tax credits. The plan is to demolish abandoned buildings and clean up the land which makes up about 140 contiguous acres and plant thousands of hardwood trees. Trees that will take about 40 years to get to the point to where they could be harvested for lumber. Right about the time land values in Detroit will be going up.
So why are we participating in this charade? We all know what the real intentions are: to invest in the land, buy low, sell high or develop and sell even higher. From an economic standpoint this is a great thing. But lets call it what it is and not insult our intelligence. If the city council approves it, approve it for what it is and not for what it’s pitched to be. History can be the guide here.
Look back to New York in the 80s, in the Alphabet City neighborhood. It was a total slum. Now? Million dollar apartments abound there. That was 30 years ago. Look at that happened in Washington DC, in Berlin, Germany. It's the history of cities.
In 30 years it will be happening in Detroit. It’s happening now. Dan Gilbert knows it, John Hantz knows it and the ones who don’t will be crusty visionless naysayers left in the dust. Detroit is coming around, shaping to be an invetor's dream. Time and money is all it takes.
When we consider this proposal we should take a moment too look around the country. This type of proposal is not unique to Detroit. The Hantz Woodlands project may be the largest land sale Detroit has seen but it certainly is not the largest city land grab in the country.
Last year city panels in St. Louis approved a much bigger city land sale to private developer Paul McKee. The St. Louis Real Estate Society reported last year:
Despite the continued legal appeals over losing out on $390 million in tax increment financing (TIF) money for infrastructure improvements, St. Louis mega-developer Paul McKee is pressing forward on his ambitious Northside Regeneration Project. Just this morning, City officials quickly approved McKee’s offer to purchase 1,233 city-owned parcels and option on the neglected Pruitt-Igoe for roughly $3.2 million. All these parcels are located on the Near Northside of St. Louis, just north of Downtown. With this expansion, McKee will now hold around 2,200 parcels, totaling over 250 acres."
Perhaps McKee took a different approach than Hantz but it’s basically the same thing. Because St. Louis has different economic circumstances, it doesn’t need a 40-year of hardwood lot to buffer the land value gap. It’s already there.
Detroit’s top development officals plaud the Hantz land sale, happy to be relieved of the cumbersome responsibility of too much land and too little tax dollars to maintian it with. Perhaps they are lacking foresight here but right now in Detorit it is what it is. Money is tight, you get it where you can.
Rob Anderson, Director of the Detroit Planning and Development Department said the project would save the city money and was all around a good thing. “What we have is an individual who is willing to clean this community and pay taxes. I don’t see the down side,” Anderson told city council members recently.
"Rodney Crim, St. Louis Mayor Francis Slay's top development official, said the land sale agreement was a good one. It moves more than one-tenth of all city-owned property off the books, adding $100,000 to the tax rolls and saving the cost of mowing and maintenance. Some of the $3.2 million proceeds will pay to demolish more crumbling city-owned buildings across north St. Louis, freeing up more land for redevelopment. And much of the ground has been up for sale for decades, with no credible buyers, until McKee. "The market hasn't addressed this issue," Crim said. "Now we have a developer who plans to address the whole area and is ready to move forward."
- Hantz farms
- Hantz woodlands
- land sale
- City Council
- Warren Buffet
- Money on tres
- tree lot
- city land
- St Loius
- North Side regeneration
- Paul McKee
- urban developement
- New York
- Washington DC
- Land Grab
- Land rush
- Fire sale
- tax base
In 2010, Environmental advocates and concerned citizens gaped at the documentary Gasland which shows people lighting tap water on fire as a result of methane leaks due to “fracking”, a controversial natural gas extraction method linked to ground water contamination. The process involves breaking into shale rock below ground water levels to acess methane. Once the rock is broken, gas released can potentially seep upward into water supplies if not extracted correctly.
A Michigan Department of Environmental Quality (DEQ) spokesperson has decried the film, stating that the images in Gasland are not accurate.
Today, the debate over fracking and its dangers and benefits continues in Michigan as Governor Rick Snyder announced a plan Wednesday to increase the state's production of natural gas.
On Wednesday, Snyder said the best way to tap into Michigan’s plentiful natural gas deposits is to research safe ways to expand the use of fracking. He said an increase of the drilling process will result in lower gas bills for Michigan residents:
"We've been doing fracking for over a decade with some of the toughest regulations in the country and it's worked well," he said. "Fracking is something that is very serious and it needs to be done the right way.”
According to a report in The Detroit News, Michigan plans to team up with the University of Michigan’s Graham Sustainability Institute on a two-year, $600,000 study of best practices for the use of fracking. The increase in fracking may not be halted by the DEQ.
In October Michigan DEQ communications director Brad Wurfel declared hydraulic fracturing, or “fracking” a safe method under the right controls and decried the controversial documentary that smeared the practice.
Wurfel told The Rockford Quire:
“I’ve seen Gasland and it’s a fun movie, but it isn’t real. In Michigan in 60 years and 12,000 wells there has never been a single incident associated with fracking. People get really excited about this. We are the Department of Environmental Quality, we protect the land, air and water. If something was going to damage those resources we would shut it down or outlaw it.”
But there are those who counter Wurfel’s statement, citing a scientific study that linked flammable drinking water to fracking.
On a federal level, the Obama Administration tightened fracking regulations this May, implementing laws requiring the disclosure of chemicals used in the process when done on federal and American Indian lands.
Still, the issue is hotly contested at a state and national level. Those who rely on ground water to drink worry about the affects of fracking. But under the right controls, many argue that it’s a step toward Michigan becoming more energy independent.
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