DETROIT ? An adamant and focused Michigan Gov. Rick Snyder said on Friday that he decided to authorize the largest municipal bankruptcy in U.S. history because ?now is our opportunity to stop 60 years of decline? in Detroit.
Snyder cited years of financial mismanagement, deterioration of city services and a decade of having the worst crime rates in the nation as reasons to file for bankruptcy.
?The city is basically broke. It is $18 billion in debt,? Snyder told a packed news conference at Wayne State University in Detroit.
It was the governor's first public appearance since the filing of a 16-page document on Thursday to place Detroit in Chapter 9 federal bankruptcy protection.
The expectation is that the bankruptcy will allow Snyder, Detroit city leaders and Emergency Financial Manager Kevyn Orr to set aside lawsuits and work on gaining financial stability for the beleaguered city by offering protection from creditors and unions.
Snyder said the decision to file for financial protection was a difficult one but one that had to be made.
"It?s been a long period of decline," he said. "It?s time to do something about it."
Orr, who spoke to the media alongside Snyder, blamed years of mismanagement on the city's economic decline.
"The depth of some of the practices ... and the tolerance of this behavior for decades is at it's best, unorthodox," said Orr, who was given 18 months when he took office in March to find a financial fix for the city. "I wish there had been a lot more outrage over the last 10 to 20 years."
The pair took questions from local and national media for about 45 minutes behind a simple podium adorned with a photo of the city's iconic skyline and the slogan "Reinventing Detroit."
Several of the questions focused on which of Detroit's prized assets, or city "jewels," including artworks and city parks, would be sold to appease creditors.
"Right now there is nothing for sale, including Howdy Doody," Orr said referring to the TV puppet that is in storage at the Detroit Institute of Arts that some say is worth $1 million.
Synder touted the investment in the city from benefactors such as Quicken Loans chairman and Cleveland Cavaliers owner Dan Gilbert, who has bought up millions of square feet of real estate in the heart of the city and has invested about $1 billion to move the city into a technology hub of the Midwest.
He also named Detroit Tigers and Red Wings owner Mike Ilitch for years of investment in the city and a new commitment to build a new hockey arena downtown.
"There are so many tremendous things going on," Snyder said. "Young people are moving to Detroit."
Both Synder and Orr said the process will involve working with creditors, pension fund managers, civil servants, citizens and government leaders to improve neighborhoods and get the city back on a solid financial foundation.
"People may say this is the lowest point in Detroit's history," Synder said. "This is the day to stabilize Detroit."
Source: http://news.yahoo.com/michigan-gov--snyder-defends-reasons-behind-detroit-bankruptcy-160222649.html
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