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Jul 9, 2013

Its relevance reduced, Detroit council picks new leaders

By Nick Carey and Steve Neavling

(Reuters) – Detroit’s shrinking and largely powerless city council selected new leadership on Tuesday as some members insisted the body is still relevant despite an order from a state-appointed emergency manager that two vacant council seats be left empty.

“The council still has a very vital role to play in the city,” said newly chosen council President Saunteel Jenkins. “As elected representatives of the people of Detroit, it’s our responsibility that their voice be heard.”

Jul 3, 2013

Cheap Detroit homes are costly for communities, unwary buyers

DETROIT, July 3 (Reuters) – The solid red brick house on a
block of similar homes in Northwest Detroit sounds like a steal
at $3,728.

But in many ways, it’s a lemon.

The house, sold at an auction last fall, sits at the edge of
Detroit’s infamous urban blight. And scrap thieves, or
“strippers,” have taken anything of value, including the kitchen
sink and metal pipes, requiring repairs of up to $15,000.

Jul 2, 2013

New to blight, stronger Detroit neighborhoods fight back

DETROIT, July 3 (Reuters) – One in 10 homes in Detroit’s
middle class Grandmont Rosedale neighborhood has been abandoned,
a low number for a city where about a fifth of properties are
empty, but it still troubles retiree residents Clarenda Webb and
Beverly Frederick.

Both joined the Grandmont Rosedale Development Corporation’s
Vacant Property Task Force, formed in 2011 to protect the area
from vandals and thieves by patrolling on foot and by car.

Jun 27, 2013

Detroit emergency manager steps up pace in city restructuring

By Nick Carey

(Reuters) – Detroit’s emergency manager issued a flurry of announcements on Thursday addressing union contracts, power distribution and an errant council president as he steps up the pace of efforts to tackle the city’s massive $18.5 billion debt problem.

Kevyn Orr stripped City Council President Charles Pugh of his authority and pay, terminated two union contracts that were about to expire so as to allow room to renegotiate them and announced an agreement with power company DTE Energy Co. to take over power distribution to local institutions, including the public school system.

Jun 27, 2013

Detroit emergency manager terminates two union contracts

By Nick Carey

(Reuters) – As part of ongoing efforts to fix Detroit’s fiscal crisis, emergency manager Kevyn Orr has terminated collective bargaining agreements with two of the more than 40 unions representing city workers, a spokesman said on Thursday.

But Orr also signaled a willingness to bargain with unions that could be seen as a peace offering for organized labor.

Jun 18, 2013

U.S. doctor group votes to recognize obesity as a disease

CHICAGO, June 18 (Reuters) – In order to fight what it
described as an “obesity epidemic,” the American Medical
Association voted on Tuesday to recognize obesity as a disease
and recommended a number of measures to fight it.

The association voted on the measure at its annual meeting
in Chicago. The AMA noted that obesity rates in the United
States have “doubled among adults in the last twenty years and
tripled among children in a single generation” and that the
World Health Organization, the U.S. Food and Drug Administration
and Internal Revenue Service already recognize the condition as
a disease.

Jun 16, 2013

After opening gambit, Detroit manager’s next move vexes creditors

By Nick Carey and Tom Hals

(Reuters) – Now that Detroit’s emergency manager has laid out a tough road that could include a bankruptcy filing for the city, the bondholders, pension managers and others with a stake in the outcome are left to assess his next steps while seeking to minimize any possible losses.

Kevyn Orr faces a difficult task, for he must either coerce the financially troubled city’s creditors into cutting a deal that would leave many with just pennies on the dollar, or file for Chapter 9 bankruptcy, where his powers would be greater but the likelihood of long, costly litigation far higher.

May 27, 2013

Detroit’s foundations spread money through broken city

DETROIT, May 27 (Reuters) – When Kevin Ward fulfilled his
dream by opening a rib joint in one of Detroit’s poorest and
most blighted areas, he could not afford extra meat. If the ribs
ran out, he closed for the day.

“We were doing real well considering, but inventory was a
problem,” said Ward, 40, who perfected his ribs while at college
in Alabama and opened Slabbee’s five months ago in Brightmoor.

May 15, 2013

Small conservative groups describe big burdens of IRS scrutiny

By Nick Carey

(Reuters) – For Kevin Kookogey, the Internal Revenue Service’s scrutiny of his one-man outfit providing conservative mentoring for students was so onerous he thought it was trying to deter him from political activity.

“It worked,” said the Tennessean who ran the group Linchpins of Liberty. “I completely shut down and do my mentoring without fundraising so I can avoid getting audited.”

May 13, 2013

Detroit emergency manager says city ‘clearly insolvent’

By Nick Carey and Steve Neavling

(Reuters) – Michigan’s biggest city is “clearly insolvent” and needs to restructure its debt and renegotiate its labor contracts to address its problems, Detroit’s emergency financial manager said on Monday.

Emergency Financial Manager Kevyn Orr in a report issued online presented a sweeping review of Detroit’s problems, from gaping budget deficits to a crushing debt load to abandoned homes and broken streetlights.

    • About Nick

      "Nick Carey is a Chicago-based, British-born journalist who has covered everything from the near-collapse of the Big Three automakers to the U.S. housing crisis. Nick is currently on general assignment, reporting on the human impact of the recession. He previously spent ten years working in central and eastern Europe."
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