Detroit thread. Post Kwame, Monica, and $1 houses here.

[garbon]

Dude sounds very bright.

[MadImmortalMan]

fails to mention that the owner owes $6,160 in property taxes

How is this possible? How is the tax assessor in Detroit valuing a house worth an iPhone? It has to be like a 2000% effective annual tax.

[Eddie Teach]

That's the main reason houses in Detroit are worthless.

[Admiral Yi]

How is this possible? How is the tax assessor in Detroit valuing a house worth an iPhone? It has to be like a 2000% effective annual tax.

We can't tell from that unpaid tax bill how the assessor values the property.  I also assume that tax valuations, unlike market valuations, don't take into account unpaid tax bills.

[Savonarola]

fails to mention that the owner owes $6,160 in property taxes

How is this possible? How is the tax assessor in Detroit valuing a house worth an iPhone? It has to be like a 2000% effective annual tax.

Tax assessment in Detroit is notoriously bad and tax collection is even worse.  The tax bill could represent well over a decade of uncollected property taxes.

[Savonarola]

Fuck the firefighters coming straight from the underground

Theft of Detroit firefighters' saws 'a slap in the face'

Detroit firehouse Ladder Company 22 has had thousands of dollars worth of equipment stolen before, but a theft early Sunday was like a slap in the face.

For the second time in less than two years, the firefighters' chainshaw and large K-14 saw were stolen from their truck— this time while they battled a blaze.

They were responding to a fire on Dundee Street near Grand River. Firefighter Jeremy Mullins said there have been about 10 fires in a three-block area within the past three days.

"We parked the rig and fought the fire," Mullins said. "When we came back and opened the compartment, they were gone. ... It was easy pickings. It's very frustrating. I've put in a lot of effort to get things like that for my firehouse and other firehouses to make sure they have what they need. To have them stolen, it's a slap in the face."

The saws are vital to fighting fires and saving lives, Mullins said.

The chainsaw is used to breach roofs to let the heat out during a fire, he said, so that firefighters don't get burned. The K-14 can be used to cut just about anything, Mullins said, including steel, wood, metal, chains and fences.

The saws cost about $2,000 a piece.

Mullins said the first theft happened about two years ago at the firehouse at 6830 McGraw. He said the firefighters on duty that night had gone down the street to grab something to eat from a restaurant. When they went back to the firehouse, they noticed the saws were gone.

Mullins got the word out that they were looking for used saws to replace the old ones. The National Firefighters Endowment offered to buy the firehouse two new saws.

Mullins said after the first theft, the firefighters installed a bracket and a chain in Ladder 22 and locked both saws up.

"We learned our lesson and would lock them up religiously in the compartment," he said.

But Ladder 22's rig is in the repair shop, so the firefighters are using a temporary pickup truck with a pump on the back. Mullins said firefighters were unable to secure the saws, leaving the equipment vulnerable.

Mullins was able to replace the chainsaw by using money the firefighters had saved up to repair the firehouse's kitchen, which is in disrepair. Mullins, who has been a firefighter for nearly 14 years, said the city is unable to cover the cost.

The firefighters have set up a PayPal account to cover the cost of the K-14 saw.

Mullins said the UAW Local 22, 43000 Michigan Ave., has also set up a fund for the firehouse.

"We do more with less," he said. "It's gotten worse and it's getting progressively worse."

[CountDeMoney]

The saws are vital to fighting fires and saving lives, Mullins said.

...

The saws cost about $2,000 a piece.

The saws are also apparently vital to getting somebody a meal in that fucked up town.

[Savonarola]

 

Duggan: Detroit database held for ransom

Detroit — Mayor Mike Duggan discussed Monday how Detroit has been victimized by cyber crimes, including how a city database was frozen in April and held for ransom.

Duggan said the city database was held for a ransom of 2,000 bitcoins, an encrypted digital currency. A bitcoin is currently worth $401.75, making that ransom worth $803,500. Duggan said the ransom was not paid and it was a database the city didn't use or need.

"It was a good warning sign for us," he said.

The disclosures by Duggan were part of his address at Michigan's third summit focusing on cyber security issues in government, business and other sectors at the North American International cyber Summit at Cobo Center.

Duggan also noted Monday that a person involved in Detroit's historic bankruptcy case recently was the victim of a cyber attack that involved threatening emails and a "significant" amount of money taken from a personal checking account.

"The timing was such that he certainly thought it was a political agenda," Duggan said.

The attack was one of several examples Duggan gave of the city's lack of updated technology and security.

"It was pretty disturbing what I found," said Duggan of beginning his term as mayor earlier this year. "I found the Microsoft Office system we had was about 10 years old and couldn't sync the calendar to my phone."

The city is in the process of improving security and updating technologies, including recently switching to a faster email system, according to Duggan.

"We're in the early stages of ramping up," he said. "The stakes in play in the state and in the country are enormous."

Other featured speakers at the summit include Gov. Rick Snyder, former Homeland Security Secretary Michael Chertoff, military leaders and private-sector experts.

Experts from across the country will also talk about trends and best practices in cyber security.

Data theft and security breaches can be costly, both to businesses and the government. According to the state, the Michigan government suffers more than 500,000 computer attacks each day, including spam, Web browser attacks and network intrusion.

Snyder in his keynote speech Monday said an increasingly connected world leaves the private sector vulnerable to cyber attacks.

"Twenty years from now, your car is going to be driving itself," he said. "The vehicle will be talking to other vehicles, making decisions on when to stop and when to brake."

A hacker could gain access to that system and control a vehicle from the outside, Snyder said.

"The risks we have today are only going to dramatically increase," he said.

Snyder also said he thinks the private sector is more vulnerable to an attack than the government.

"The easiest way to disrupt our world is to go through the private sector," he said.

Snyder stressed civilian involvement to combat this risk.

"We need to get everyone involved, not just the government," he said. "It's the private sector, the individuals all learning more about cyber security."

In his speech, Snyder also announced an expansion to the Cyber Civilian Corp., a group of volunteers from the private sector trained to respond to a cyber attack.

The group first was announced last year at the cyber summit.

"I'm glad to say within the next few months, we'll have a dozen teams," Snyder said.

Snyder compared the corps to the Army National Guard.

"It makes sense to use a model that we've used for 200-plus years in this country," he said. "It's the citizen cyber solider concept."

Snyder also highlighted the cyber Command Center with the Michigan State Police, designed to coordinate state efforts to monitor cyber threats.

"Just like we have a Michigan intelligence operation for physical crimes, now we've done that for cyber crimes," he said.

In addition to the civilian corps and cyber command center, Snyder also spoke about the Michigan cyber Range, created in 2012 to allow people to train and take cyber security certification courses.

Following his speech, Snyder told reporters it was a matter of time before a significant cyber attack hits the state.

"It's just a 'when' question," he said. "That's the point of us being prepared and that's why I'm so proud to say Michigan is a leader in being prepared."

Snyder also briefly touched on topics other than cyber security, including his hope to get a road funding bill on his desk by the end of the year. The state Senate approved a boost of more than $1 billion in state road money Thursday with a change to Michigan's fuel tax that is certain to raise the price at the pump. The gas tax increase bill will now go to the Republican-controlled House.

"There's still quite a bit of work to be done on the House side of this," he said. "But if you look at the Senate, work was done in a great bipartisan fashion and I hope we can replicate that in the House."

He also addressed his upcoming fourth annual trip to China.

"It's about jobs here in Michigan," he said. "How can we get more exports to China, how can we get more Chinese investment in Michigan, and how we can continue working together to build a strong economic relationship."

Snyder said that while there have been "multiple" investments from China into the Michigan auto industry, he also is looking into other fields.

"We're looking to broaden that into other fields (like) agricultural exports," he said. "We're the second most diverse state in the nation; most Michiganders don't even recognize that."

Duggan should have offered them municipal bonds instead of Bitcoins.  I'm sure Synargo had some they could have given away.

[Savonarola]

Kilpatrick frat brother admits pocketing cash, gifts
Robert Snell, The Detroit News 10:36 p.m. EST November 19, 2014

Kwame Kilpatrick's fraternity brother provided a peek inside a jet-setting lifestyle bankrolled by Detroit pension fund businessmen Wednesday, but insisted he did not betray the trust of police widows, firefighters and other retirees who relied on him for retirement benefits.

The fraternity brother, former Detroit Treasurer Jeffrey Beasley, testified in his own defense in federal court during the highest-profile public corruption trial since Kilpatrick was convicted and sentenced to 28 years in prison last year.

The nearly four hours of testimony, including a tense government cross-examination, provided Beasley's first public comments since he was indicted almost three years ago.

From 2006-08, he is accused of pocketing bribes and kickbacks in return for approving more than $200 million in pension fund investments. The city's two pension funds lost more than $84 million on the deals, prosecutors allege.

Beasley told jurors Wednesday he ate, drank, golfed, gambled, vacationed, rode in private jets and Las Vegas limousines — all paid for by people who had business pending in front of Detroit's two pension funds. Beasley sat on the boards of both pension funds and helped decide how to invest the retirement system's $6 billion in assets.

At one point, Beasley testified about coming home and finding a Christmas gift from Chauncey Mayfield, a businessman who oversaw $200 million worth of pension fund investments.

"Was it from Tiffany?" Beasley's lawyer, Walter Piszczatowski, asked.

"It was a blue box," said Beasley, 45. "I guess."

"Did that somehow cause you to give him favorable treatment?" his lawyer asked.

"Chauncey was a classy guy. First class," Beasley said. "This didn't have anything to do with a vote. He was very professional and had a lot of class. I took it as that. Some people gave nice bottles of champagne — Moet. We got steaks sent to our house. This was his way of sending Christmas gifts."

The gifts kept coming.

From Mayfield, who gave Beasley's girlfriend a $45,000 job. From Greektown mogul Jim Papas, who gave Beasley gambling money, free drinks and meals. From a Georgia businessman who spent $8,000 on a 3,000-square-foot, four-bedroom villa in the Caribbean for Beasley, his wife and five kids.

"It was bigger than your house in Detroit," Assistant U.S. Attorney David Gardey told Beasley.

Beasley will continue testifying Thursday morning in federal court.

Beasley started receiving gifts not long after Kilpatrick recruited his fraternity brother from Florida A&M University in 2005.

One year into his term as treasurer, in January 2007, Beasley ran into one of Kilpatrick's security guards. The guard was headed to the Atheneum Suite Hotel in Greektown and asked Beasley to join him.

The two went up to a private suite and opened the door.

"Surprise!" about 60 people yelled.

Most of the people were entrepreneurs, lawyers, money managers and others who had business deals in front of the pension funds.

"Wow," Beasley said he thought. "It was a good feeling."

Before the party ended, Detroit pension fund lawyer Ronald Zajac handed him a birthday card and an envelope filled with $100 bills.

"Tell us how much was inside," Piszczatowski said.

"Nine thousand dollars," Beasley said. "That's what I used to take my family on vacation."

Beasley testified he did not know who contributed toward the birthday gift nor made any assumptions despite being given the money at a party filled with pension fund businessmen.

Prosecutors allege Zajac organized the party and solicited the cash. Months later, Beasley and the pension boards gave Zajac a 33 percent pay raise — boosting his pay to more than $400,000 a year.

Zajac is standing trial alongside Beasley and former pension trustee Paul Stewart. If convicted, the men face up to 20 years in federal prison.

In April 2007, three months after the birthday party, prosecutors allege Mayfield flew Beasley, Kilpatrick and three others on a private jet to Las Vegas for a golf trip.

The flight cost Mayfield $43,000. The businessman also spent about $23,000 for the group to stay at the Venetian luxury hotel casino, eat and go to Prince and Toni Braxton concerts.

"And Mr. Mayfield paid for golf and you rode in a stretch Hummer," Gardey told Beasley.

"It was a stretch limo," Beasley corrected.

"You accepted all these things?" the prosecutor asked.

"Yes," Beasley said.

"Did you ever sell your vote as the result of getting your hotel paid for?" Beasley's lawyer asked.

"Never," Beasley said.

"Did you give Mr. Mayfield favorable treatment?" Piszczatowski asked.

"Never," Beasley said.

There was one thing Mayfield didn't pay for: a plane ticket for Beasley's girlfriend to join him in Las Vegas.

"She brought herself," Beasley said.

In August 2007, four months after Las Vegas, Beasley was back on an airplane for a family vacation at a luxury hotel in the Turks and Caicos.

Another Detroit pension fund businessman, Roy Dixon, was there, coincidentally. Dixon took Beasley golfing, gave him gambling money and showed him around the islands.

Beasley testified that he felt Dixon was trying to pitch a real estate proposal and the amount of time the men spent together caused friction with Beasley's family.

"What happened when you went to pay for your room?" Beasley's lawyer asked.

Dixon picked up the bill, Beasley testified.

"I offered to pay," Beasley said.

Dixon insisted on picking up the tab since he intruded on Beasley's family vacation, Beasley said.

Prosecutors said the hotel and other perks were bribes and kickbacks in exchange for Beasley supporting deals Dixon was pursuing with the pension funds.

One of Dixon's deals tanked and cost the pension funds $20 million. Prosecutors say Dixon embezzled more than $3 million and spent some of the cash on an $8.5 million mansion in Atlanta.

Dixon pleaded guilty last month, testified during the trial and could get more than eight years in federal prison. Mayfield also pleaded guilty and could be sentenced to more than four years in prison.

Beasley told jurors Wednesday he didn't keep all the gifts he received during his time in office.

A different pension fund businessman gave him an $1,800 Cartier watch in December 2007.

"I returned it," Beasley said.

Tiffany!  Cartier! this kind of reads like "Diamonds are a Girl's Best Friend."

[KRonn]

This stuff just keeps getting better and better with these guys. Ripping off a broken city, but it looks like most of them are getting their due and some time behind bars to ponder their work.

[Savonarola]

I'm back in the 313 for the Holidays.  CB and I used to go to Detroit's Farmers Market, Eastern Market, and then to breakfast at a local diner called "The Fly Trap" every Friday.  We did that today.  Eastern Market has really taken off; this time of year it used to be half empty and most of the people there were either farmers selling the very end of the season produce, farmers from the greenhouses in Leamington, Ontario, butchers, and people selling Christmas trees and poinsettias.  Today the farmers are still there, but it's filled much more with specialty producers selling astronomically-priced foods to appeal to locavores, vegans and what-have-you.  It was packed too, and the homeless were nowhere to be seen (nothing short of a miracle in Detroit.)  I miss the old Eastern Market, it was the real Detroit, but today it's an incredible boost for the city.   

One of Detroit's long standing companies is Germack, which is a nut and coffee roasting company.  They've been around for 90 years and to generations of Detroiters they're known as the company which roasts the peanuts for Tigers' games and holiday pistachios.

They had a cramped little shop at Eastern Market which which was packed with nuts and coffee.  They recently moved to another location still in Eastern Market.  CB and I went their over Thanksgiving and their store is now a hip coffee shop straight out of 1992 Seattle; with bare brick walls, free jazz blaring over the speakers and all the servers were just too cool, daddy-o.   

There have been many changes in the city of Detroit since I've left; that one, so far, has caught me most by surprise.

[Savonarola]

Guess whose back, back again:

Monica Conyers sues McDonald's over cut finger

Detroit — Monica Conyers wasn't loving it when she went to McDonald's on New Year's Day. And now she's suing for $25,000.

The former Detroit city councilwoman alleges she cut her finger on a chair on Jan. 1 at the restaurant inside Detroit Metropolitan Airport before catching a flight to Washington D.C.

She was en route to attend the swearing-in ceremony of her husband, U.S. Rep. John Conyers, D-Detroit, said her attorney, Amir Makled of Dearborn.

"Plaintiff sat down to eat at a table inside McDonald's, and grabbed the side of the chair to adjust her seat and pull her chair under the table," according to a suit filed Thursday in Third Circuit Court.

"While pulling herself under the table, Plaintiff felt a sharp pain in the ring finger of her right hand, screamed in pain and jumped out of the seat."

The chair may not have been properly assembled and Conyers suffered an "extremely painful" cut that caused her to lose a fingernail, Makled said.

The suit says Conyers rushed to the counter and was helped by police and paramedics who provided her "with sterile alcohol pads and gauze." Conyers made the flight to D.C., sought medical attention and now is "severely injured," the suit said.

The suit against franchise owner Jamjomar Inc. alleges Conyers suffered "extreme pain and anguish" and has lost the full use of her hand.

Conyers was one of the most memorable council members in recent years, grabbing headlines for sparring with colleagues and referring to former Council President Ken Cockrel Jr. as "Shrek."

She served one term, pleaded guilty to corruption charges in 2010 and was sentenced to 37 months in federal prison for accepting money in exchange for her vote on a $1 billion sludge-hauling deal.

Conyers was released in 2013 and briefly worked as a receptionist and gofer at a Corktown auto body shop. She's since kept a low profile, appearing with her husband at events such as the funeral this year of UAW Vice President General Holiefield.

Efforts to reach Jamjomar was unsuccessful. The company owns 15 McDonald's in Michigan and Louisiana and is owned by Jim Thrower, a former Detroit Lions player.

[Savonarola]

Here we go again:

Review team finds financial emergency in Wayne County

Detroit — An independent review team on Tuesday has concluded that a financial emergency exists in Wayne County, state officials said.

The determination comes hours after County Executive Warren Evans appeared before Detroit's City Council, telling members that he remains confident the county will resolve its challenges without emergency management or bankruptcy.

By law, Gov. Rick Snyder now has 10 days to consider the review team's report and reach a determination on the county's financial condition.

Evans, in a statement released following the decision, said the team's findings "validates" the work his administration has done to "reveal the true financial status" of the county.

"Our $52 million structural deficit in Wayne County is real and unless we solve it now, it will continue to grow year after year," Evans said in the statement. "While we have already taken several significant steps forward to stop the debt from accumulating, there is still much work to be done."

"As we move further along in the process to secure Wayne County's future, I want to be clear that we have a plan that allows us to solve our own problems and we have a responsibility to use the tools available to us to get it done."

The county is grappling with a $52 million structural deficit — a recurring shortfall that stems from the underfunded pension system and a $100 million yearly drop in property tax revenue since 2008. Its accumulated deficit is $150 million.

"We're working very hard to get this budget situation straightened out," Evans told council members earlier Tuesday morning, during a brief address at City Hall. "There is no way I would foresee Wayne County needing an emergency manager or bankruptcy at this point."

The review team, appointed July 2 following a preliminary review requested by Evans, conducted several meetings to consider the county's finances and interviewed elected officials, department heads, union leaders, officials said.

The review team also conducted a public information meeting with county residents, as required by law.

The team's report indicates that numerous conditions led to the determination that a financial emergency exists in the county. Those conditions include:

■ The county's last four annual financial audits revealed notable variances between General Fund revenues and expenditures as initially budgeted, as amended, and as actually realized. In addition, County officials underestimated actual expenditures in three of the fiscal years by amounts ranging from $16.7 million to $23.7 million.

■County officials engaged in unbudgeted expenditures in violation of Public Act 2 of 1968, the Uniform Budgeting and Accounting Act.

■Although there was agreement among county officials that existing detention facilities are inadequate, there is no consensus about whether to complete construction on a new jail or to renovate existing facilities.

■According to the county executive's recovery plan, unfunded healthcare-related liabilities were estimated to be $1.3 billion as of the last actuarial valuation with funding set aside for this purpose of less than one percent of liabilities. Healthcare-related liabilities represent 40 percent of the county's long-term financial obligations.

Evans asked the state Treasury Department to declare a financial emergency for the county and support his request to enter into a consent agreement.

"I'm hoping that they (the review team) will acknowledge what we know to be the problem: We are in a financial position that would require likely some outside powers to get out of it," Evans said Tuesday.

Wayne County is struggling with $4.5 billion in long-term financial obligations. Officials for the county have also said they need the consent agreement to help address its vastly underfunded pension system.

Evans this month submitted a balanced budget of $1.55 billion to the Wayne County Commission for its approval.

The budget — down from the current year's $1.68 billion budget — covers Oct. 1, 2015, through Sept. 30, 2016. Evans also said he has submitted a projected 2016-17 budget of $1.46 billion.

Evans on Tuesday also referenced the county's failed jail project.

"Without a balanced budget and our bond rating, I can't do anything about it," he said. "Whatever it's going to take, it's going to take more money."

The executive told council members that he's confident the county will be OK, as long as it makes progress on its structural deficit.

"There's significant liabilities out there, but if we get rid of the structural deficit soon, we're on a path to have a balanced budget to have our credit rating upgraded."

Turn it up!  Bring the Noise!

Detroit is in Wayne County.  The jail is a notorious boondoggle.  The core of the jail has been built, but not the outer walls.  It's stood like that for over a year now, right on a major highway exit into downtown Detroit:



You can see the Greektown Casino behind it and the Renaissance center over to the right.

[DontSayBanana]

Guess whose back, back again:

Monica Conyers sues McDonald's over cut finger

Detroit — Monica Conyers wasn't loving it when she went to McDonald's on New Year's Day. And now she's suing for $25,000.

The former Detroit city councilwoman alleges she cut her finger on a chair on Jan. 1 at the restaurant inside Detroit Metropolitan Airport before catching a flight to Washington D.C.

She was en route to attend the swearing-in ceremony of her husband, U.S. Rep. John Conyers, D-Detroit, said her attorney, Amir Makled of Dearborn.

"Plaintiff sat down to eat at a table inside McDonald's, and grabbed the side of the chair to adjust her seat and pull her chair under the table," according to a suit filed Thursday in Third Circuit Court.

"While pulling herself under the table, Plaintiff felt a sharp pain in the ring finger of her right hand, screamed in pain and jumped out of the seat."

The chair may not have been properly assembled and Conyers suffered an "extremely painful" cut that caused her to lose a fingernail, Makled said.

The suit says Conyers rushed to the counter and was helped by police and paramedics who provided her "with sterile alcohol pads and gauze." Conyers made the flight to D.C., sought medical attention and now is "severely injured," the suit said.

The suit against franchise owner Jamjomar Inc. alleges Conyers suffered "extreme pain and anguish" and has lost the full use of her hand.

Conyers was one of the most memorable council members in recent years, grabbing headlines for sparring with colleagues and referring to former Council President Ken Cockrel Jr. as "Shrek."

She served one term, pleaded guilty to corruption charges in 2010 and was sentenced to 37 months in federal prison for accepting money in exchange for her vote on a $1 billion sludge-hauling deal.

Conyers was released in 2013 and briefly worked as a receptionist and gofer at a Corktown auto body shop. She's since kept a low profile, appearing with her husband at events such as the funeral this year of UAW Vice President General Holiefield.

Efforts to reach Jamjomar was unsuccessful. The company owns 15 McDonald's in Michigan and Louisiana and is owned by Jim Thrower, a former Detroit Lions player.

The owner should offer to shake hands and apologize in front of the judge.

[Savonarola]

Snyder confirms Wayne County financial emergency
By Eric D. Lawrence, Detroit Free Press 4:07 p.m. EDT July 22, 2015

Gov. Rick Snyder has confirmed the findings of a state review team, one day after the team wrapped up its work.

The governor has closely reviewed the review team report and agrees with their determination of financial emergency, according to spokeswoman Sara Wurfel.

Now, the Wayne County Commission has seven days to choose one of four options for dealing with the emergency — entering into a consent agreement with the state; having an emergency manager; neutral evaluation, which is mediation; or bankruptcy. It was not immediately clear when the commission would meet on the issue.

The governor's decision comes a little over a month after County Executive Warren Evans requested that the state review the county's finances. He has said he wants a consent agreement, which would allow him to impose cuts to employee benefits even as the county is in negotiations with its unions. One of Evans targets has been the elimination of an estimated $52 million structural deficit.

Despite some recent improvements in Wayne County's financial picture, such as an increase in property tax collections and a settlement over retiree healthcare, the state's review team found enough dire news to conclude that a financial emergency exists.

In addition to an underfunded pension system and heavy healthcare costs, the review team noted that the county underestimated expenditures in three of the last four fiscal years by $16.7 million to $23.7 million, has not identified a resolution for its money-draining unfinished jail and struggles with ineffective communication.

This is a formality; Snyder was going to go along with the finding of the review board.  I think every city in Michigan that's found itself in this situation has tried the Emergency Manager first.