Detroit Bancruptcy

In: Business and Management

Submitted By bleri1
Words 315
Pages 2
The City of Detroit bankruptcy is a historical event since the city of Detroit is one of the largest cities ever filed for bankruptcy. However, the court trial will decide after considering all the facts and testimonials, if City of Detroit will qualify for bankruptcy. City of Detroit has filed for bankruptcy mainly because of financial factors such as expenditures were higher than revenues, the high level of debts and bad management. In the audit report issued for the 2012 there were many qualified and adverse opinions with regards to the financial statements. The fact that City of Detroit filed for bankruptcy, as hard as it might be, would give the city a new start and a new way of managing and thinking. This city needs restructuring and functioning under a new economic vitality. By developing new strategic plans such as new employment opportunities and offering reliable services for its residents and businesses, city of Detroit will regain its role in the economic vitality of Michigan.
The economy of Detroit plays a key role in the economic development of Michigan. City of Detroit is known as the Motor City for the innovations in the auto industry but also for its goal diversifications into emerging fields such as information technology and advanced manufacturing.
Encouraging advantage are the different tax incentive programs that city of Detroit offers. For example, Detroit Renaissance Zone Tax includes a waiver of city income and utility users taxes, most city property taxes, county property taxes. The program applies to businesses that will conduct business within the area and are not delinquent in any local, county or state taxes and once qualified there is no need to reapply.
Should our corporation consider being part of big changes in Detroit and consider the benefit of tax incentives, I would be happy to further assist in this initiative.

source of…...

Similar Documents

Detroit, Michigan

...Detroit, Michigan Natasha Parks January 24, 2013 POL/215 Dr. Richard Ansson Detroit Detroit is the biggest city in the Michigan State, of the United States of America. It boasts of a vast heritage of culture, transportation, finance and politics. The constitution of Detroit is an exceptionally compelling one. The constitution that governs Detroit is that of the larger Michigan state that was written in 1908. The Detroit constitution is a truly Democratic constitution, and is one for the people and by the people. In article I, the seat of the government is established at Lansing. It is a constitution that particularly protects the Detroit citizens and contains a lot of rights of the people (The Constitution of Michigan, 1908). There are a few examples of the rights which are the right to free speech, religious freedom, right to peaceful assembly, as well as the right to petition. One of the unique elements of this petition is that it gives everyone the right to bear arms for purposes of defending the State and him/herself. The rights are in the Article II. Another important article in this constitution is Article VII. It touches on the judicial system which is a vital arm of the government. The Judicial system in Detroit has supreme courts, circuit courts and probate courts with the Supreme Court being the highest (The constitution of Michigan, 1908). The constitution also states that elections for the judiciary must be non-partisan. A...

Words: 712 - Pages: 3

Opportunity for Detroit

...July 18, 2013, Detroit filed for a historic Chapter 9 bankruptcy, the largest city in America to ever do so. Once a very prosperous city, Detroit has seen a material decline in its’ population, from about 1.8 million in 1950 to about 700,000 residents today, nearly 20% of whom are unemployed. This huge decline can be attributed to not only a decline in manufacturing jobs and the automobile industry, but also Detroit’s public safety woes. Coupled with a decreasing tax base and an increasing debt burden, Detroit’s decision and policy makers ultimately drove themselves into insolvency. However, the City of Detroit is taking several measures to try and claw out of the mess they are in in hopes of returning them to the wealthiest US city per capita (again). Now that Detroit is at its breaking point, the city's emergency manager Kevyn Orr has requested that the Detroits Institute of Arts collection will be appraised by New York auction house Christie’s. An estimate suggests that the collection would be worth well over $1 billion dollars and the appraisal is a crucial step in rebuilding the city and establishing a trust with creditors. Despite numerous denials from Orr and the museum leadership that the art collection will be sold, this has caused an outrage in the art community. Orr has commented that selling the cities assets is a last ditch effort. Detroit and its surrounding communities are actively seeking other means to bring the city back to life. Detroit has been......

Words: 1044 - Pages: 5

Case Study of Detroit, Mi

...Case Study of Detroit, MI Michael Harker BIO 201-2 Public Health and the Environment Although the city of Detroit, Michigan has been hit by hard times over the last 50 years or so, people and businesses are coming together in order to change the city and its residents. “Detroit has a long and storied 300-year history, but the heart and soul of Detroit is its residents” (City of Detroit, 2013, para.1). In the early to mid-1900’s Detroit used to be known as the auto industry of the world however, because of cheaper labor overseas and in the southern part of the United States thousands of Detroit residents ended up losing their jobs. These auto industry workers were the main income earners for their families but due to the loss of thousands upon thousands of auto industry jobs, entire neighborhoods in Detroit now sit vacant and abandoned. According to Jackson and Sinclair the authors of Designing Healthy Communities, the city of Detroit once had a population of two million people but has been declining over the last 50 years. In 1950 Detroit was the fourth largest city in the United States, however by 1990 the population was down to 1 million people and by 2006 there were only 871,000 residents. (Jackson & Sinclair, 2012). This continued downward spiral of the city’s population has seen many younger and highly skilled people looking to leave Detroit, leaving behind an older generation of city residents who are left to fend for themselves and who require more city......

Words: 862 - Pages: 4

Detroit Case

...Wriston has two major decisions. First, Wriston must first decide if it wants to keep the Detroit plant open. Second, Wriston must decide if it will continue producing all of the product groups. When considering shutting down the Detroit plant, Wriston should probably evaluate the NPV (as Harvey pointed out) of the "no change" case versus the NPV of a shutdown case. Wriston may save fixed costs from shutting down Detroit, but may forego sales opportunities by not being able to meet demand. Another case could be a "build new plant" case. 2. The second decision is to decide if it will continue producing all of the product groups. I agree with Harvey's recommendation to drop Group 3. I calculated "Gross Profit" for Exhibit 7: $5,645 (group 1); $3299 (group 2); $654 (group 3); $9,600 (total). I defined gross profit as Profit before fixed mfg overhead. Also, I calculated gross profit as a % of sales: 41% (group 1); 36% (group 2); 6% (group 3); 28% (total). Some other thoughts... Wriston, as a company, must decide if it wants to continue sales of group 3 products. Wriston analysis must balance the financial benefits of dropping the group 3 products versus the potential negative backlash from customers. Wriston may want to include potential "lost opportunity" considerations in its analysis. If Wriston decides to KEEP group 3 products, it must then decide which plant should produce the products. Detroit is probably the plant of choice, but Wriston must recognize that the......

Words: 456 - Pages: 2

Swot Assignment of City of Detroit

...I – Strengths Strength 1: Detroit receives freighters from more than 100 world ports The Detroit River is a 24-mile long river and one of the busiest rivers in the world and receives freighters from more than 100 world ports (Detroitmi.gov, 2014). This is a long-term asset the city of Detroit has since it connects Lake Michigan, Lake Huron, St. Lawrence Seaway and Erie Canal. During the first half of the 20th century during Detroit’s rapid industrialization, the river became polluted but in recent days much effort has been put to restore and conserve the river. According to a study, 150,000 jobs depend on the river crossings and its pretty much guaranteed that the river would be useful for a very long time. It also has a lot of potential to raise its economy by either implementing a higher tax on exporters or by expanding its services enabling more jobs for the city. Strength 2: Manufacturing facilities We know the city of Detroit was the 4th largest city in America during the first half of the 20th century since it was where the biggest motor and manufacturing companies used to be. Currently, the motor manufacturing business is dead, but the facilities and company plants are still there. These are huge assets; they could be sold to other manufacturing companies who could take better use of these resources for extra revenue (Carey, 2013). II – Weaknesses Weakness 1: Low Diversification “Detroit has been historically dominated by the automotive industry, and has not......

Words: 1281 - Pages: 6

Urban Farming in Detroit

...Urban farming in Detroit Turning the Motor City into Farm City Urban farming in Detroit Turning the Motor City into Farm City Subject: Intercultural Communication Studies 2nd Term Date of release: 16.02.2011 Table of Contents 1 2 3 Introduction ......................................................................................................................... 3 Characteristics ..................................................................................................................... 4 Urban farming in Detroit .................................................................................................... 5 3.1 3.2 SWOT analysis ............................................................................................................ 5 Urban farming projects in Detroit ............................................................................... 8 4 5 Conclusion ........................................................................................................................ 11 Bibliography ..................................................................................................................... 12 2 1 Introduction The term urban farming or agriculture recently pops up in the media. It is mainly applied regarding city development in third world countries, but as well it becomes more often a phenomena taking place in cities of industrial countries. After examining the general characteristics of urban......

Words: 3660 - Pages: 15

Detroit

...After starting as a small trading post in the eighteenth century, Detroit went on to become an industrial power house. However, as beautiful as it may seem, the modern Detroit is not the same city it was prior to 1960. In the last half-century, the city has been struck by crime and violence. That is when an "All-American City" became an eyesore, a blighted spot on the map. Attempts to reverse this downward trend have been made throughout the years; major construction projects appeared, and continue to appear, everywhere in Detroit. One of the most significant projects was the remodeling of Campus Martius. It was completed over a decade ago. This plaza still remains as the main gathering place for Detroiters and a great advertisement for the City of Detroit. With all the completed and yet to be completed projects, it may seem that Detroit is far past its decay; however, when one takes a closer look at any of the Detroit landmarks, one will see that Detroit appears to be beautiful only on the outside. The city and its elected officials have created a fake impression of perfection. Unfortunately, just one block away from these "pockets of improvement" is the true Detroit. Campus Martius was established in the eighteenth century as a military training ground. It is important to note that prior to 1805 Detroit was designed in a grid system. In 1805, a fire engulfed Detroit and destroyed Campus Martius and all wooden structures, leaving only a stone fort untouched (Beckett).......

Words: 1828 - Pages: 8

My Happy Detroit

...Changing the Narrative * An Analysis and discussion of “My Happy Detroit” Ruined streets, echoing car alarms and dilapidated buildings all combine to provide the perfect scenery for a post-apocalyptic film. However, there is nothing dramatized about this image - It is the concerning reality of modern day Detroit. At least, that has been the narrative in the media since the latter part of the sixties. Carolyn Edgar, who spent her childhood in Detroit, tells another story. Carolyn Edgar graduated with a bachelor degree in English with high distinction, giving her opinion academic reliability. Her work consists mostly of writing for internet blogs. She has worked consistently for the progressive, liberal magazine Salon for the last three years. She was raised in Detroit, and she mostly has fond memories of the city. This is why she wants to dismantle the message in the media. Edgar appeals to pathos by telling anecdotes of her childhood, in order to rebut the common narrative of the media. She begins by painting an idyllic scene: Children playing at a barbecue. “While the ribs were on the grill, we would play Motown hits on the record player another cousin brought over for the occasion”(ll. 7-8). This image immediately creates empathy and identification with the reader, and dismantles the image that the common person has of Detroit as a dilapidated city. By anchoring the reader with an emotional standpoint right from the beginning, Carolyn establishes a bond of......

Words: 1034 - Pages: 5

Happy Detroit

...”My Happy Detroit” The article “My happy Detroit” is written by Carolyn Edgar and is from July 28, 2013. The article is a reflection on Carolyn’s childhood growing up in Detroit and the causes to the city’s bankruptcy. Detroit filed bankruptcy and many people are devolving into political causes. The city also never recovered from the riots and the white flights. Detroit is a city that is going so bad, that more and more people are moving away from it. In the article she write about the good and bad times in Detroit. Carolyn Edgar is a single mother, lawyer and a writer. Her personal work has been published widely, including Co-parenting, The Fresh Express and My Brown Baby. Carolyn’s personal essay was published in Mirror on America and Reconstruction Magazine: Short Essays and Images from Popular Culture. You can therefore say that Edgar is a very strong and independent woman, because she is not torn apart by how her childhood home is falling apart. When reading the article you notice that she uses a mixture between neutral language and high language – which makes everyone understand her arguments clearer and in that way makes the audience listen. You can tell that she is very well spoken, which also make the seriousness of her speech bigger and you can better relate to how big the problem in Detroit is. In the beginning Edgar uses a happy experience from her own childhood, “My mother’s garden was in full bloom, and it seemed everyday brought new bounty (…). Every Fourth......

Words: 316 - Pages: 2

Detroit

...Detroit – Essay In the beginning many went to Detroit to pursuit the American Dream. Then in the early 1900’s Henry Ford an American industrialist, and the founder of the Ford Motor Company, and also the sponsor of the development of the assemble line to do mass production. He brought mass production of the automobile to Detroit, making it a place where you could secure your economics, and many could get a job with pension afterwards. The base of Detroit’s economics laid its ground in the automobile industry for quite some time. The automobile industry through the 20th century had many good years but also a lot of bad years. Many factories’ met a wall, which lead to a lot of lay-offs and which furthermore not only hurt the Detroit’s economics but the United States as well. A lot of times when you think about Detroit you get this picture of a ghetto city, with a great deal of violence and “black people”. This might be the reason for Carolyn Edgar to write the article “My happy Detroit”. In the start of the article Carolyn writes “The city didn’t die when the white flight hit in the 1960s. It became a bastion for black families like mine.” This is might her way of telling that there is still people living there, and we should not just forget them even though the city has been on a downfall. Growing up Carolyn Edgar loved the summer, their garden was in full bloom, and they had the opportunity of enjoying strawberries, cucumber and so on. As she Carolyn says herself “You......

Words: 828 - Pages: 4

Intro to Detroit

...unique forms of danger to society, violence demonstrates a form of consistency throughout North America. Out of all the major cities within the continent; Detroit, Michigan tends to stand out among the rest when evaluating violence. Owning the title of the most dangerous city in America for the fourth consecutive year since 2012 (cite 2), Motor City proves to be a significant area for the examination of hazards. When conducting an analysis based on violence in certain areas, it is important to consider multiple factors such as crime rate, gang activity and cause of deaths; in order to see how they directly affect the city. Matters such as living standards and job opportunity are exposed to risk in areas such as Detroit mainly due to the extremity of the city’s existing hazards. The danger within the city proves to be evident when comparing certain statistics to the country as a whole. In contrast to the United States, Detroit contains substantially higher rates of murder, rape, robberies, assaults, thefts and arson (cite 3). All of which verify the required characteristics of a dangerous region. Despite its discrepancies, America is still considered to be a first world country, so the reasoning behind Detroit’s danger must go deeper than its crime rates. An annual study conducted by the Bureau of Labor ranked Detroit as the city with the highest unemployment rate in the whole country (cite 4). With approximately 24.8 percent of its labor force is left out of a job, it......

Words: 471 - Pages: 2

Civil Rights - the Detroit Rebellion

...The Detroit Rebellion began on July 22, 1967. When police arrived to raid a private drinking club in Detroit, expecting a much smaller crowd, they instead encountered over 80 black patrons, and began arresting the entire crowd. After arrests were made, and a few hours had passed, an angry crowd of 3,000 had begun to loot and vandalize. Fires were set, and police and firefighters were the target of violence from the rioters. The National Guard was soon called in, and a curfew was put into place. The Governor requested federal intervention, and President Johnson sent assistance. The riots continued until July 27. Although the initial cause for the rebellion was white police presence in a predominantly black neighborhood, there were also several underlying causes for the rioting. Police brutality, cycle of poverty, and lack of political representation for blacks all contributed to the uprising, as well as similar ones happening in other cities. In Detroit in 1967, police harassment and brutality was commonplace. Lack of affordable housing and housing discrimination was an ongoing problem Job discrimination led to poverty and economic inequality for blacks in Detroit. All these factors combined to present the circumstances under which the Detroit Rebellion took place. The state of affairs for blacks in Detroit during this time created a deep rooted feeling of despair and anger. The frustration with the slow pace of progress in the struggle for equality was a main......

Words: 321 - Pages: 2

Detroit Safety Net

... T H E SAFETY NET in Detroit, Michigan Urgent Matters The George Washington University Medical Center School of Public Health and Health Services Department of Health Policy Acknowledgments The Urgent Matters safety net assessment team would like to thank our community partner, the Voices of Detroit Initiative (VODI), for its help in identifying key safety net issues in Detroit and connecting us with stakeholders in the community. At VODI, Lucille Smith was instrumental in coordinating our site visits, interviews and focus groups and an essential resource through the course of the project. We would also like to thank Amani Younis for her help in facilitating two of our focus groups. The Voices of Detroit Initiative is a partnership between the leading health system providers in Detroit, federally qualified health centers and the Detroit Health Department. VODI focuses on bringing all segments of the community together to address the issues of access to cost-effective health care for the uninsured. We would also like to acknowledge William Schramm at the Henry Ford Health System for providing us with important information and resources regarding the emergency department at Henry Ford Hospital. The Urgent Matters team would also like to recognize the many individuals in the Detroit health care community who gave generously of their time and provided important and useful insights into the local safety net system. The Detroit, Michigan, Safety Net......

Words: 3881 - Pages: 16

Detroit Research Paper

...4/16/15 Detroit Research Paper During the twenty to twenty-five years after World War II the auto industry and other industries in Detroit had changed to supply the demands for an ever changing world. Henry Ford had mass production techniques. Thousands of jobs were created to build the Ford Model T’s. Part by part each vehicle was made, becoming Ford’s first most popular mass produced car. Not only the auto companies grew with demand, but the steel companies also produced supplies for engines, chassis, and other metal fixtures for each vehicle. Tool makers also benefited by making machinery and tools for the auto manufacturers. The interior components of the vehicles such as, the seats and the roof, were manufactured by upholstery makers. All these subsidiaries were created to meet the needs of the auto industry as it grew year after year. When World War II began the auto industry changed production to military vehicles. A highly maneuverable, overland vehicle called “jeep”, built by the Willy’s company was made in large numbers for military use. Chrysler changed their manufacturing to make tanks for the war. Ford, among other things, made bomber planes. After the war ended, demands for new cars gave the auto industry a boost in sales and in profit. In the early nineteen fifties, a national network of the interstate highway was built. The highway was built under the Eisenhower Administration. When the highway was completed, a driver can travel cross country on not one...

Words: 1895 - Pages: 8

Detroit Bailout

...Mackenzie Patterson 2008 U.S. Automaker Crisis: The Detroit Bailout At the end of 2008, two of the three largest domestic automakers in the U.S. received significant financial assistance from the federal government and President Bush’s administration. General Motors and Chrysler were burning through their cash reserves and heading quickly towards insolvency and potential bankruptcy, endangering not only themselves and their workers, but also the large domestic auto parts supplier industry as well. Insolvency had the potential to permanently alter and possibly destroy a large segment of the U.S. industrial economy. In an effort to avoid this, the federal government stepped in with highly controversial assistance in what is now generally referred to as the Detroit Bailout. The question then, as continues to be debated to today, is should the federal government have stepped in and provided help, or should they have left the free trade market alone? There are many opinions and multiple ideologies in the U.S., but which ideas are going to work? These were very difficult decisions that needed to be thoroughly analyzed and debated, however, the urgency of the situation, along with a general collapse in world financial markets led to events quickly overtaking prudence. In the United States, the country is roughly divided into too ideologies, free-market liberalism (conservatives), and social liberalism (liberals). This led to both free-market liberals and social liberals having......

Words: 2297 - Pages: 10