Column: Will bankruptcy signal Detroit rebirth?
- Related stories: See MLive.com's coverage of Detroit's bankruptcy
One of my earliest memories of growing up in Detroit is the first night the city burned during the 1967 riots. I was 5 years old, standing with my grandmother outside our clapboard home as the Michigan National Guard rolled down Warren Avenue.
Courtesy of Wikipedia
There was shooting and screaming. Buildings burned. A gas station exploded nearby. Sparks fell everywhere.
It was the fiery baptism that would define Detroit over the next 46 years.
I didn't live through Detroit's "Golden Years." By the time I was born, the Arsenal of Democracy, Motor City and Motown had grown tired. My hometown aged very badly, and at 4:06 p.m. Thursday, it became the largest city in U.S. history to go belly-up.
The Detroiter in me wonders why it took so long.
One can only be embarrassed, as if having to explain away Detroit's reputation as being the most violent city in the country. Other cities with high homicide rates may leap frog each other each year as to which will be the country's murder capital. But to many, Detroit will forever wear that badge.
The city's violence kept me away after high school and college. Its dirt, squalor, lack of real opportunities and horrible public education keeps me from raising my family there now. Many of the best and brightest have taken their children and money and simply moved away. If they're honest, few will say they'll ever move back.
I drive into the city each day, shaking my head at the scores of vacant houses along my route. I've taken my two daughters into those neighborhoods, gently reinforcing the need to excel in school so they won't have to grow up like I did.
Every late-night comedian has taken shots at Detroit. I've heard those jokes — and some that are much worse — about the city and its people while riding a bus in Chicago; from kids in my dorm at Michigan State University; even at a conference outside Washington, D.C. They burn the ears and boil the blood because Detroiters have thin skin. We can verbally dismantle the city and ourselves. How dare an outsider do it?
We're the ones who, through our sweat and hard work or that of our parents and grandparents, helped build Detroit from the production lines of sweltering car factories and other plants.
Back then, it was about chasing the American dream. Now, for too many of the 700,000 souls who remain, it's about surviving the soaring unemployment and lack of opportunity that keep hope in check and have helped leave the city with tens of thousands of vacant homes.
It's praying that an errant bullet doesn't smash through your living room wall and find you or a loved one.
It's riding buses for miles trying to find even minimum wage jobs where none exist. It's about cringing at news reports about the hundreds of thousands of dollars stolen by the ex-mayor and his cronies.
Detroit is tired and I can't help but think the city is weeping down deep in its tough old bones. I'm crying inside, even while writing the stories and filling pages in Detroit's history.
I don't know if wiping away as much as $20 billion in debt through bankruptcy will fix Detroit. I don't know if in emergency manager Kevyn Orr's restructuring there is a potion to save any of the young people who will die this year on its streets.
I can't say if businesses will wait out this fiscal storm and then see opportunity where they saw none before.
But at least and at last there is a plan. In Detroit's drawn out, decades of failures there is hope.
And maybe — maybe — somewhere down the road there still is time for Detroit's golden years, even in my lifetime.
___
Corey Williams is a Detroit native and graduate of the city's public school system. He has been a reporter for 28 years, and for the past six has covered Detroit for The Associated Press.
Comments
Jay Thomas
Sat, Jul 20, 2013 : 6:05 p.m.
Just watching the news over the years has been enlightening. From employees at the Water department using public money to buy bottled spring water for their own use, to city employees taking the day off during snow emergencies -- and Suburbanites volunteering in the city to clean off the snow so the kids could go to school. Some of my favorites are the accounting department where they are/were still adding things up by hand (I kid you not). The elected head of the school board being semi literate at best (he sued to get his degree after failing for 7 years or something). Oh, and the person in charge of cleaning up that new transportation center (6 figure job) telling the public to clean it (why do we need her again then?). Detroit was basically looted by incompetent people. If the quality of the people does not change then how can the city? When it ran the Zoo animals starved. When it ran the conservatory on Belle Isle the plants died in the winter. But if you suggest the state run the place they insist you are stealing from them.
Plubius
Sat, Jul 20, 2013 : 2:33 a.m.
Two things need to happen for Detroit to turn around: 1) The distribution and usage of recreational drugs must be legalized 2) The illiteracy rate has to be significantly diminished These two items are inexorably linked: as long as the distribution and usage of recreational drugs remains illegal, the only rich people that the children see are the drug dealers. This disincentives them to become literate as literacy is not a prerequisite for being a drug dealer. Corruption will not end until people can make informed decisions about candidates, and since there is no substantive discussion on tv, the only way to become informed is by reading.
Jay Thomas
Sat, Jul 20, 2013 : 6:12 p.m.
1. Get the crime rate down. More police are needed as well as a public who doesn't view reporting crime as snitching. 2. Education. Half of all Detroiters are illiterate and no one besides them wants to go to a Detroit school. 3. Taxes. Coleman Young raised taxes for 17 out of his 20 years in office. Who wants to pay twice the property taxes you would in the suburbs and still have all the other problems.
Basic Bob
Sat, Jul 20, 2013 : 3:31 p.m.
Drug dealers don't need to make change.
metrichead
Sat, Jul 20, 2013 : 9:47 a.m.
How do you count your cash if you're illiterate?
Nicholas Urfe
Fri, Jul 19, 2013 : 7:25 p.m.
Newsflash: the courts have again ruled that Snyder and his appointed lackey have acted against the Constitution in their zeal for "emergency management".
Jay Thomas
Sat, Jul 20, 2013 : 6:07 p.m.
A federal judge will now decide. That's what would happen anyway without an Emergency Manager being appointed.
metrichead
Sat, Jul 20, 2013 : 9:49 a.m.
I'll take Snyder and his "appointed lackey" until you or someone else can come up with a better plan. It's pointless to oppose something without offering an alternative.
Basic Bob
Sat, Jul 20, 2013 : 1:05 a.m.
They claim that this violates Article IX Section 24: " The accrued financial benefits of each pension plan and retirement system of the state and its political subdivisions shall be a contractual obligation thereof which shall not be diminished or impaired thereby. Financial benefits arising on account of service rendered in each fiscal year shall be funded during that year and such funding shall not be used for financing unfunded accrued liabilities." It's been a long time since these pensions were fully funded, and the accrued liabilities are what we are now faced with. So let's blame the people responsible - every governor, legislator, judge, mayor, and city council for the last 60 years. U.S. Bankruptcy Court can tear up contracts, regardless of how some want to interpret either the state or federal constitutions. The state judge has no power over the federal judge in this matter now that they are in Chapter 9.
SonnyDog09
Fri, Jul 19, 2013 : 11:26 p.m.
One whackjob state judge is not "the courts." It's a terrible thing to show such an appalling lack of judgement when you job title contains the word "judge" in it. The Federal Courts trump state courts in this matter and have already assigned a bankruptcy judge to the case. Keep grasping at straws, though. The hole just keeps getting deeper and deeper with every delay.
A2comments
Fri, Jul 19, 2013 : 7:11 p.m.
People saying it's not just the leadership are right on the money. I've worked with people that lived in the city when the latest corrupt mayor was still in office, and they'd come up with the most amazing justifications for what was going on. As employees, many of them complained about everything, including not making enough money. They wanted more mere months into the job. Every day they ordered breakfast delivered to work, ate on our dime, then got takeout for lunch. Spent probably $15 between those two meals (vs. my breakfast at home for under $1.5 and brown bag lunch for under $3). Then they asked what the company was going to do for them. I got a lot less attitude from the works that lived in the suburbs. Oh - and race didn't come into it in case someone brings that up.
ManA2
Fri, Jul 19, 2013 : 6:38 p.m.
It's terrible as a symbol, but it's probably the start of the solution. I'm fairly optimistic. The sad thing is that the city leaders and unions either lied or were too incompetent to tell the people providing services in Detroit the truth - that the promises being made to them on pensions, compensation and benefits for at least the past 20 years were utterly without any prospect of being made good upon. I don't blame the people who received those benefits, I blame all the people who led them to believe they'd ever actually receive them. It's very sad on a personal level. For the city itself, this is the bottom and we improve from here. The Woodward Avenue corridor has made big progress in the past decade. Investments are being made and there is the very real possibility of meaningful progress. But those investments will only continue with the confidence that there are current revenues available to provide current services at a semi-reasonable cost. You can't expect investment when essentially half of the taxes going to cover past sins, so it continues to get worse. Terrible to have reached the point where bankruptcy is necessary, but bankruptcy is part of the solution.
Craig
Fri, Jul 19, 2013 : 5:57 p.m.
In response to the headline: No ... RIP Too bad really.
miman
Fri, Jul 19, 2013 : 5:55 p.m.
I too am a native Detroiter. I have seen how the city has had a long slide downhill since the riots. Always told that it was going to get better but never did. I can't even handle going into the old neigborhoods of my youth, there are only street signs were the buildings and memories use to be. Long gone are the family and friends that I played with. This bankruptcy I feel is the best thing for Detroit. When you are at the bottom, the only place to go is only up. I just hope in time it will be something of what it use to be so long ago. Martin Luther King Jr., Sr. High School Class of 1979
genetracy
Fri, Jul 19, 2013 : 5:46 p.m.
I guess the obligatory person who will blame Rick Snyder for the bankruptcy is not home from work yet.
Westfringe
Fri, Jul 19, 2013 : 5:31 p.m.
Free trade, corporate outsourcing, too much reliance on one sub-par industry, government corruption, union overreaches, and poor race-relations all took their toll in the decades long decline. The city that built the US and won us the war is kicked to the curb by the rest of the state and nation. Lets hope that the lesson is learned otherwise the rest of the US is likely to follow.
M.Haney
Fri, Jul 19, 2013 : 5:19 p.m.
Several decades of bad leadership has brought Detroit to this stark and bitter chapter in its history. This was accomplished by many previous leaders who were morally and ethically bankrupt, as stated earlier by another reader. There were many good leaders as well, just not enough of them. The people of Detroit kept electing (and re-electing) and appointing these same corrupt people to positions of greater power that only hastened the demise of their city. Many charismatic politicians have come and gone (at least one is currently at Milan Prison). Most were so arrogant that they still bellowed their innocence after being convicted in court. Some were stopped, but eventually it was the overall long time corrupt culture that greed was good that brought this once mighty city to its knees. All cities should heed what has occurred here. Be knowledgeable and research those people you are electing to positions of power within your city government. Be aware when they keep asking for more and more money to accomplish less and less.
Nicholas Urfe
Fri, Jul 19, 2013 : 5:01 p.m.
Our state and federal tax dollars have supported Detroit for decades. So we all have a direct interest in this, and the outcome. Let nobody tell you it ain't our business.
Jay Thomas
Sat, Jul 20, 2013 : 5:49 p.m.
This is important to understand. A normal city receives most of its funding through property taxes. In Detroit that is way down the list. Federal money, state money, income taxes on people who don't live in Detroit, etc. We changed the way schools were funded specifically because of Detroit. Had to raise the sales tax from 4 to 6% to cover it. Otherwise no one there would be going to school.
JGA2trueblue
Fri, Jul 19, 2013 : 4:27 p.m.
Insanity is doing the same thing over and over and expecting different results. Detroit (where I grew up and my late father was a loyal police officer) has the decade-rooted foundation of entitlement. Our president has spewed empty promises to Detroit (and the country for that matter) and has basically said "oh, sorry, there is no money, but thanks for your support." Until this rapid socialist direction stops, there will be no end to this destruction of American cities. It will not be long until another major city takes the same road. Do you still believe in "hope and change"? I believe in prayer, truth and change. Not the "insanity" of what has been Detorit's demise.
Jay Thomas
Sat, Jul 20, 2013 : 5:45 p.m.
He says the entitlement attitude is the problem. You respond with complaints about a new entitlement. You made his point.
John
Fri, Jul 19, 2013 : 5 p.m.
Yep...doing the same thing over and over expecting a different outcome. How many times constitutes over and over? Is it 3, 4? Or is it more like 37, 38? Who's the party of insanity again?
dsponini
Fri, Jul 19, 2013 : 4:53 p.m.
Like Republicans voting 38 times (and counting) to repeal the Affordable Care Act?
Heather
Fri, Jul 19, 2013 : 2:33 p.m.
I'm very worried about the retired Detroit firemen and police officers who are now worried about losing their pensions. How horrible!
Jay Thomas
Sat, Jul 20, 2013 : 5:42 p.m.
Sonny, it can't be the unions and the politicians they helped put in office. The deals these democrats negotiated with each other must have been sustainable and well thought out. It has to be someone else... Bush, Oakland County, some poor schmoe living in Alpena who just doesn't want to pay his "fair share".
SonnyDog09
Fri, Jul 19, 2013 : 4:38 p.m.
"they aren't the ones responsible for this!" Who is responsible? The bondholders? The vendors? The unions that elected politicians the made promises that could not be kept?
NSider
Fri, Jul 19, 2013 : 4:08 p.m.
@SonnyDog... I think PGBC only works with private sector pensions in default. And its not a great deal, either, typically they negotiate everyone's pension down to about SS levels, no matter what you used to get or what you expect.
SonnyDog09
Fri, Jul 19, 2013 : 3:44 p.m.
Does anyone know if Detroit cops and firefighters fall under the auspices of the Pension Benefit Guarantee Corp?
cck
Fri, Jul 19, 2013 : 2:44 p.m.
Absolutely, they aren't the ones responsible for this!
Myles
Fri, Jul 19, 2013 : 2:05 p.m.
Detroit will get through this. Screw what haters think.
cck
Fri, Jul 19, 2013 : 1:13 p.m.
Somehow the news on Detroit's bankruptcy proceedings have made headlines here in the Netherlands. I find it hard to read your article without becoming sad myself, even as an outsider to the city (while I do currently conduct research in the Motor City). I feel the seed of Detroit's issues was already in its rapid growth as an industrial city, as the city exactly became that place for so many diverse people to strive towards their American Dream. The rapid growth of Detroit resulted in fairly poorly constructed housing (e.g. in Brightmoor) but may have also resulted in a lack of 'rootedness' among new citizens. Many families only lived in Detroit for a few decades during the population boom of 1900-1950, not having their ancestral grounds in or near the city but elsewhere in the US and beyond. Also, the mass immigration resulted in a terrible lack of cohesion among Detroiters themselves, especially when race is considered... The 1967 riots weren't the first in the city by far! Yet the industrial machine needed to grow and attracted even more uprooted newcomers, until they were no longer needed. As the city's job base shrank and friction increased, I wonder how many tears were shed by the ones that left the city in the 1950s onwards? Melancholy aside, Detroit has been regarded by generations of leaders and citizens as a means rather than a goal. More jobs elsewhere? Less crime? Less taxes? Off we go. It's been quite a culture shock for me as my European background values rootedness, my identity is strongly derived from the place I live and I come from (which is often the same for Europeans). This value of place also translates in side-effects like curbing abandonment of homes through stricter mortgage and bankruptcy regulations in many countries. I have learned a lot from Detroit's own Jerry Herron's columns on Detroit as 'The Forgetting Machine', to be found here: http://places.designobserver.com/feature/the-forgetting-machine-a-history-of-detroit/31848/
Craig Lounsbury
Fri, Jul 19, 2013 : 2:50 p.m.
Interesting perspective from an "outsider" .
cck
Fri, Jul 19, 2013 : 2:43 p.m.
It's just something that I've noticed as an outsider. It's really disconcerting to me, as I feel places can rise and fall at the snap of a finger, be it corporate, cultural or social. Yet how do you catch root in a place, in an economy that shifts people around so much? My generation of (over?)educated highly specialized kids will travel the globe to find an inspiring place to live and work.
SemperFi
Fri, Jul 19, 2013 : 2:18 p.m.
Thank you for the thoughtful response! I hadn't thought about it that way since I was born in the city in 1952. It is where I come from, so your viewpoint is interesting to me.
Jon Wax
Fri, Jul 19, 2013 : 1:01 p.m.
Nothing will change until the thug life mentality is put down for once and for all. this goes nationally, not just for the D, but the D would be a good place to start. Unless that money is going to be used to hire a PMC to come in and drive out the violent thugs there will be no rebirth. just more of the same. The under 30 somethings have started to move from the burbs to the D, just as i predicted last year. Problem is, the crime is still there. All this positivty about what's going on in the D should run out by summers end. My guess is a lotta the folks who moved in recently will be looking to move back out. The problem with the D is that "Pookie and them" have been driving out residents and jobs and lowering property values for decades. It was overlooked because of some weird sense of racial guilt. Well, sorta outta time with that now. You want the D back, you gotta start from the ground up, not from the top down. Drive out the violent thugs and eradicate the violent crime and you gotta shot. But... you're gonna need a company like Blackwater to do it. Until folks face those facts, nothing new will happen. Peace Wax
Jay Thomas
Sat, Jul 20, 2013 : 5:39 p.m.
Ann Arbor will mark you down, but everything you said is the truth. The crime problem is the #1 reason people will not live in the city. Until it is addressed things will continue on a downward path. When your house is being robbed and the police will not show up for at least an hour -- that city is doomed.
Julius
Fri, Jul 19, 2013 : 12:56 p.m.
Bankruptcy is not the end of the world, so long as you've successfully addressed the root cause. It gives you a relatively clean slate from where to start. It will be harder to borrow, but that's the point. When borrowing and spending is out of control, you just keep digging the hole deeper and deeper. It's been a downward spiral in Detroit for decades. People leave, revenue declines, taxes go up, more people leave, someone tries to cut spending somewhere, the place is less safe, more people leave, taxes go up some more, basic functions can no longer be sustained, more cuts, increases in taxes and fees, more people leave. . . . . The city needs to establish priorities. What's most important? By that I mean what must happen so that you can accomplish goals? Is it making the city at the very least, safe and functional? How about that hockey arena? Do you really want to saddle yourself with more debt for a huge structure where one already exists? You need a day to day commercial presence, not just during major events. That can't happen without an acceptably safe environment and a business friendly tax environment. At some point, all of the taxing/spending/cutting of vital services in favor of less important things catches up. This is the end result. It's time to do something different and break away from the past. It starts with the people.
Jay Thomas
Sat, Jul 20, 2013 : 7:52 p.m.
Every year Detroit has less housing stock than the year before. It loses stock from accidents and arson and just plain not maintaining the house. Thieves will even steal a furnace and without one the house caves in after a few winters (this happens frequently in Detroit). There is very little new construction except with government money. I have seen plenty of developments go unbought and unrented after construction. Even what should be expensive condos like the Ellington or the towers on the river ends up going for a song (the developers finally just auctioned them off). You can get a fabulous view of the river for less than some "so so" place in Ann Arbor. I just can't see how the city will not continue to lose population.
Dog Guy
Fri, Jul 19, 2013 : 12:52 p.m.
Q: The antonym of adroit? A: Detroit.
SemperFi
Fri, Jul 19, 2013 : 12:42 p.m.
I'm not sure that corruption is the major problem. It's inefficiency and ineptitude that have caused the failure in Detroit. Chicago and New York are as corrupt as any big cities in the world, but they keep the street lights on and police do their job. There's a lot less complaining about corruption when basic services are being met. I hope and pray for a revitalized Detroit that is able to draw families back to the city.
Craig Lounsbury
Fri, Jul 19, 2013 : 2:38 p.m.
good points SemperFi.
SemperFi
Fri, Jul 19, 2013 : 2:21 p.m.
I'm not saying that corruption is acceptable behavior. It's just that there are many cases of cities with corruption that have managed to be financially successful.
mr_annarbor
Fri, Jul 19, 2013 : 1:57 p.m.
I disagree, or at the very least, it's corruption combined with ineptitude.
SonnyDog09
Fri, Jul 19, 2013 : 12:39 p.m.
It's not just the leaders. There is an entire culture of corruption and entitlement that permeates the city. It is this culture that still has a blacksmith on the payroll of the Detroit Water and Sewage Department, long after they have stopped using horses. It is easier to keep paying him until he retires than go through the effort to eliminate the position.
Jay Thomas
Sat, Jul 20, 2013 : 5:35 p.m.
It wasn't saving any money. Sonny is right.
SonnyDog09
Fri, Jul 19, 2013 : 5:29 p.m.
If the union blacksmith is so busy, why were they outsourcing so much contract repair work to Bobby Ferguson's company?
Nicholas Urfe
Fri, Jul 19, 2013 : 4:59 p.m.
@SonnyDog: you seem to know a lot about this. Have you ever actually made a sand pattern and cast a part in iron? Do you know anyone who can? What would they charge? What would their lead time be to cast a part to fix an emergency water leak?
SonnyDog09
Fri, Jul 19, 2013 : 3:37 p.m.
You seriously believe that that amount of fabrication justifies a full time employee with benefits? Do you want to take bets on how many hours a day that blacksmith actually works? The over/under is one.
Nicholas Urfe
Fri, Jul 19, 2013 : 1:55 p.m.
Some parts are still best made by a blacksmith. And it is much much less expensive than the alternative. And much quicker.
SemperFi
Fri, Jul 19, 2013 : 12:47 p.m.
The blacksmith example is probably not the best one to choose. Considering that parts of the Detroit water system are upwards of 100 years old, there are numerous metal components that need to be maintained and who better to cobble old metal parts than a blacksmith. They do more than shoe horses.
Arboriginal
Fri, Jul 19, 2013 : 12:29 p.m.
Detroit has been around longer than this great nation of ours. It's gonna be okay!
Usual Suspect
Fri, Jul 19, 2013 : 12:12 p.m.
I have been wanting a Detroit come-back as long as I have been waiting for the Lions to get in the Super Bowl. I think neither will happen in my lifetime, but I can hope.
Nicholas Urfe
Fri, Jul 19, 2013 : 12:05 p.m.
SLR nailed it. The corruption and the "what's my cut" attitude that permeates Detroit government does not seem likely to change. It's a big ugly shame.
Stephen Lange Ranzini
Fri, Jul 19, 2013 : 11:40 a.m.
Many of the people who lead the city are morally and ethically bankrupt but unfortunately there is no chapter 9 process for them. It is hard to even imagine today, but Detroit used to be the Silicon Valley of its day, rapidly growing and hugely wealthy. It was THE place to be if you wanted to be a manufacturer or an aspiring entrepreneur. Only when the leadership changes and ethical people are elected will the city be able to renew itself. I read the following article which I thought was very inciteful: Only Wall Street Wins in Detroit Crisis Reaping $474 Million Fee See: http://mobile.bloomberg.com/news/2013-03-14/only-wall-street-wins-in-detroit-crisis-reaping-474-million-fee.html
A2comments
Fri, Jul 19, 2013 : 7:05 p.m.
I love Nicholas Urfe's comment.
SemperFi
Fri, Jul 19, 2013 : 12:53 p.m.
The article cited is 4 months old, so it's information is dated. Now that bankruptcy has been filed, the banks will have to get in line with everyone else to secure anything.
Nicholas Urfe
Fri, Jul 19, 2013 : 12:03 p.m.
The edit button was defeased as part of a highly leveraged transaction to finance the on-going operations of a2.com.
Stephen Lange Ranzini
Fri, Jul 19, 2013 : 11:42 a.m.
Very insightful... Sigh, sorry for the typo. Where is that edit button!?
A2comments
Fri, Jul 19, 2013 : 10:57 a.m.
Erasing debt only allows them to spend money in other areas. Corrupt management still hasn't been addressed adequately. Small sections will recover, but the squalor will be there for decades.