Detroit deficit estimated as high as $300 million

The City of Detroit's financial picture continues to worsen with a deficit forecast Friday as high as $300 million, increasing the likelihood of massive cuts in city services.

As first reported Friday on freep.com, Mayor Ken Cockrel Jr., in announcing the larger deficit estimate, said he already had ordered city departments to cut their budgets by 10%, and now the size of the cuts would increase. Cockrel would not say if any cuts would involve layoffs.

As recently as a month ago, Cockrel had pegged the deficit at as high as $200 million. He said the steadily rising deficit estimate is the result of sloppy bookkeeping by ex-Mayor Kwame Kilpatrick's administration.

The city is almost a year late in submitting its 2006-07 fiscal year audit.

"This whole process has been a lot like peeling back the layers of an onion -- the more you peel back, the more your eyes water," Cockrel told the Free Press. "Citizens need to be prepared for some pain."

Chief Financial Officer Joseph Harris said he advised Cockrel of the new deficit estimate after reviewing the city's current year cash flow, which is negative, as a number of payments to vendors and on city debt have come due. He said major cuts would be needed.

"I'll give him several alternatives, but none of them are pretty," he said of the plans he would offer to the mayor.

The situation is a stark contrast from what Kilpatrick had told the public about the city's budget. He had insisted that the city was on the cusp of eliminating its red ink. The city's budget is $3 billion.

In early October, Cockrel had said he would release his deficit elimination plan within days. But the mayor has delayed that announcement because as the city catches up on its auditing, it discovers more records showing the deficit is far worse than thought, he said.

Cockrel said Friday that he would not unveil his deficit elimination plan until his administration fully untangles the city's finances. He said he would provide an update in January.

However, Cockrel did say the plan would seek to protect essential city services.

"Our goal is to get back on the path of being fiscally smart, make decisions based on what is critical and necessary ... for the city," he said.

The state already has ordered an emergency financial manager for the Detroit Public Schools, and a potentially $300-million deficit could reignite talk that arose in Kilpatrick's first term about a possible emergency manager for the city. Cockrel said the city must fix its books and avoid the scenario in the Detroit schools.

"If there's tough decisions to be made, we ought to be the ones to make them," he said.

Councilwoman Sheila Cockrel, chairwoman of the council's Budget, Finance and Audit Committee, praised Harris for working to systemically uncover the city's true financial picture.

"The structural problems of the country, the state are really colliding head-on now with the structural weaknesses in Detroit's finances that are now decades old," she said. "I think we can anticipate serious levels of sacrifice."

Student Winners Announced In Thanksgiving Parade Design Contest

By TAMMY BATTAGLIA • FREE PRESS STAFF WRITER • November 11, 2008

Julissa Madrigal smiled as she stuck out her finger and popped a bubble floating through the air in front of her, a bubble from the float she designed for this year's America's Thanksgiving Parade.

The last time seventh-grader at Earhart Middle School in Detroit had seen her creation "Our Aquarium," it was a paper and colored pencil drawing she created with help from her art teacher, Nick Ellis.

Today, she saw it come to life as a float, her creation chosen as one of two top winners in the 17th annual Skillman Foundation float and balloon design contest for students throughout Detroit.

“It’s beautiful,” Julissa said as her mother, Ana Madrigal, shed tears of joy behind her, as the song “Down By The Sea” blared and a life-sized foam whale seemed to jump across bright plumes of plywood seaweed and little pretend children on the float. “I just love killer whales. They’re my favorite animals.”

Emirene Munoz grabbed a rope, her eyes growing wide as she held the rein for a 20-foot-tall version of her winning elephant balloon design floating in front of her. The eighth-grader from Clippert Academy said she was very nervous about seeing “Elephante” for the first time today outside the Parade Studio on the city’s east side.

“I never won something like this before,” said Emirene, 14, who hasn’t decided yet whether to be a doctor or an artist. She said her favorite thing to draw is actually people. “I just see folks walking or cartoon people”

The two grand prize winners were chosen from more than 300 designs created by Detroit students.

The honorable mention winners for balloon designs were:
Arlene Torres, sixth grade, Academy of the Americas, for Neighborhood Butterfly”;
Adam Yang, fourth grade, Fleming Academy, for “The Dragon Warrior”; Walter Richey, seventh grade, Leland Community Affairs Inc., for “Make a Change-Change Brightmoor”, and Ande Villarreal, fifth grade, Bennette Elementary, for “The American Heart.”

The honorable mention winners for float designs were: Regina Aleman, eighth grade, at Clippert Academy, for “Art Bucket”; Atziry Ruiz, fifth grade, Bennett Elementary, “Candy X-Press”; Mariah Shaw, third grade, Harms School, “The Neighborhood Zoo”, and Yajaira Carrillo, fifth grade, Cesar Chavez Academy, “The Crazy Wheel.”

New coffee bar for Corktown

Former Zingerman's Delicatessen managing partner Todd Wickstrom is teaming up with Phillip Cooley, co-owner of Slows Bar BQ, to open Mercury Coffee Bar in Detroit's Corktown area by early summer.

Located at 2163 Michigan Ave., across the street from Slows, the 50-seat restaurant will have an in-house bakery on the first floor and a main dining area on the second. It will offer coffees, moderately priced pastries, and sandwiches, ranging from $7 to $8, made with ingredients grown in Detroit.

By using locally grown products, Wickstrom said he hopes to boost the local farming community. The pair also planted 40 pounds of garlic in an urban garden just south of I-94.

Cooley and Wickstrom began renovating their 3,000-square-foot, leased building in January. They estimate that renovation costs will total about $200,000.

Cooley initially was hired by Wickstrom as a designer through his general contracting firm, Los Pistoleros, but became a minority partner after Wickstrom realized Cooley's knowledge of Detroit restaurant operations.

Cooley was equally impressed with Wickstrom.

“Todd has years of experience and a wonderfully socially conscious mind. His past has been about quality, and we have an opportunity to bring quality at a different kind of value,” Cooley said.

Wickstrom was with Zingerman's in Ann Arbor from 2001 through 2005. He said his time there taught him what it takes to be successful.

“I learned a lot about the restaurant business at Zingerman's,” Wickstrom said. “I did everything from busing tables to ordering balsamic vinaigrettes from Italy.”

Wickstrom also co-founded New York-based Heritage Foods USA in 2001. The food broker helps small farmers sell their goods to restaurants and stores across the U.S., including Bastone in Royal Oak and Bower's Harbor Inn in Traverse City.

Both Cooley and Wickstrom recognize the importance of keeping their revenue in the city of Detroit.

“The question is: How do we get the money from the front door to stay in the city?” Wickstrom said. “In that sense, we are the antithesis of Starbucks. All the money they earn goes to the corporation or another city.”

Movie Thursday - Role Models

From website:

Seann William Scott and Paul Rudd star in Role Models as Wheeler and Danny, two salesman who trash a company truck on an energy drink fueled bender. Upon their arrest, the court gives them a choice: do hard time or spend 150 service hourse with a mentorship program. After one day with the kids, however, jail doesn't look half bad.

Surrounded by annoying do-gooders, Danny struggles with every neurotic impulse to guide Augie (McLovin from Superbad) through the trials of becoming a man. Unfortunately, the guy just dumped by his girlfriend (Elizabeth Banks)has only sarcasm to offer a bashful 16 year old obsessed with medieval role play.

Meanwhile, charming Wheeler tries to trade in an addiction to partying and women to assist a fifth grader named Ronnie redirect his foul mouthed ways. It would probably help if his new mentor wasn't an overgrown adolescent whose idea of quality time includes keggers in Venice Beach.

Once the center's ex-con director (Jane Lynch) gives them an ultimatum, Danny and Wheeler are forced to tailor their brand of immature wisdom to their charges. And if they can just make it throught probabtion without getting thrown in jail, the worlds worst role models will prove that, sometimes, it takes a village to raise a child.

Detroit City Council: Where's Our 10 Billion?

BY NAOMI R. PATTON • FREE PRESS STAFF WRITER • November 12, 2008

The Detroit City Council passed a resolution today calling for a $10-billion bailout for the city of Detroit.

Council President Pro Tem JoAnn Watson sponsored the resolution to use the money for public service employment, to fund mass transit plans and to place a moratorium on home foreclosures for two years.


The resolution specifically requests the council meet with Mayor Ken Cockrel Jr., Gov. Jennifer Granholm, the state’s congressional delegation, U.S. House Speaker Nancy Pelosi and officials from President George W. Bush’s office and President-Elect Barack Obama’s transition team.


Watson said she fully supports mayors from Warren, Sterling Heights, Livonia and Dearborn meeting with representatives from Granholm’s office, the state’s congressional delegation, the Michigan Economic Development Corp., the Southeastern Michigan Council of Governments and the Michigan Municipal League, seeking federal redevelopment funding for communities facing huge losses in property tax revenue affected by looming plant closures.


But, she said, “The city of Detroit has got to be leading the way on this.”


The city recently received $47 million from the U.S. Department of Housing and Urban Development to help stabilize neighborhoods hit hard by the nationwide foreclosure crisis. Officials with the city’s Planning and Development have prepared a plan the city council is expected to vote on in a week

What do you think?

Detroit Shelters Running Out Of Room

DETROIT -- Shelters and agencies that help the homeless are expecting a flood of people as winter nears, the foreclosure crisis continues and businesses lay off more employees during the economic downturn.

From the Detroit Rescue Mission Ministries and the Coalition on Temporary Shelter (COTS) to the Project Helping Hands and Macomb County Rotating Emergency Shelter Team, officials said they are trying to raise money for more space, but admit it is unlikely they will have more beds anytime soon. Some homeless people say they are worried because even before winter hits, they have trouble finding beds in shelters and some say the shelters aren't safe or clean enough.

Slightly more than a dozen homeless people were living in tents last month at Roosevelt Park in Detroit's historic Corktown neighborhood. Some said they've had trouble finding space in shelters -- a complaint that shelters and agencies predict will worsen as more people need help.

"It is easier to get into Harvard University than COTS," said Cheryl P. Johnson, chief executive of the coalition. "We stay full year-round."

Last month, police officials, concerned that the tent city denizens would eventually freeze to death, forced them to pack up and encouraged them to go to shelters that had available space. Detroit ordinances prohibit camping in city parks but do allow tents on special occasions, like the annual fireworks display, police said.

"It's hard when you ain't got nowhere to go," said Steen, who lost his job two years ago when the business moved to Canada. He formerly worked for a company that made leather products.

Project Helping Hands was there to take Steen and others evicted from the park to shelters that had space. But Steen and about 10 others declined the rides and instead said they would make their own way.

On any given day, COTS officials estimates that there are less than 2,000 spaces available for the more than 9,000 homeless in Detroit. Some of those 9,000 may be staying with relatives and friends, and the exact number of those is unknown, advocates said. The number of homeless people in Detroit has remained steady in the last year but the pressure to find space at shelters increases as temperatures drop, Johnson said.

While the weather has been balmy this week, temperatures are expected to drop into the 40s on Sunday.

That has people, such as Steen and buddy Ernie Russeau, traveling city parks, empty lots and vacant fields looking for a spot to call their own. They realize it is dangerous living this way and said they are hopeful that they can find jobs.

Russeau, 36, was released from prison in April. He acknowledged that he has a host of mental and medical problems. Russeau said he does not want to be homeless but cannot find work because of his criminal past and health problems.

"To society, an ex-con is one of the worst people," he said after taking down his tent. "A lot of places will not hire an ex-con. If I can't find some way to get out of this by winter, I will not make it through the winter."

The tents and other camping gear were donated by college students who saw the homeless sleeping on the ground at the park, Steen and Russeau said. The duo remained determined as they packed up.

"We understand that we are homeless," Steen said. "We are survivors. We are not gonna roll over and die."

Voters can get tickets voided

Detroit residents who received parking tickets outside City Hall or the elections office on West Grand Boulevard while casting absentee ballots in the days leading up to Tuesday's election can get those tickets voided.

Huge lines formed at the City Clerk's office in the Coleman A. Young Municipal Center and at the Detroit Election Commission before the election. Daniel Cherrin, spokesman to Mayor Ken Cockrel Jr., said that parking spaces were in short supply and it would be unfair to issue tickets as residents exercised their right to vote.

Cherrin said anyone who received a ticket while trying to vote at the two locations should contact the Municipal Parking Department about getting it voided.

Well, that's great news. Obama is saving us money already! : )

Movie Thursday - Zack and Miri

From zackandmiri.com:

Lifelong friends and roommates Zack (Seth Rogen) and Miri (Elizabeth Banks) are facing hard times and a mountain of debt. When the electricity and plumbing get cut off, they seize upon the idea of making a homegrown porno movie for some quick cash, enlisting the help of their friends. The two vow that having sex will not ruin their friendship. But as filming begins, what started out as a business proposition between friends turns into something much more.

A ROLE HE WAS BORN TO PLAY-LITERALLY

Not many actors have successful directors sitting around, writing movie scripts with them in mind for the lead character. But for Kevin Smith, Zack was tailor written with Seth Rogen in mind. Kevin explains that when he watched THE 40-YEAR OLD VIRGIN, he fell in love-with Rogen. "I thought he was hilarious," Kevin explains.

"I started thinking about him for this film, but I didn't get around to writing the script for while. When I finished the script, I started seeing his face everywhere. He was on billboards all around LA for KNOCKED UP. I figured he'd never consider my flick anymore."


WORKING WITH FEARLESS LEADER, DIRECTOR KEVIN SMITH

When Seth Rogen was in high school, he remembers overhearing his friends singing the "Berserkers song" and asked where that was from. They told him they had just seen the movie CLERKS and that it was filthy, and real, with guys who actually spoke like them, and not some made-up, phony Americanized suburban language. It was a precise portrayal of the real thing.

"It's the first movie that anyone had really seen that was like that," said Rogen. "I mean, I guess movies like DINER started that trend in a way, but CLERKS was the first one where the guys really talked how we talked to one another. We would just have a ten-minute conversation about blowjobs, you know?"

"And I remember seeing it and just thinking, 'Holy shit! This is crazy,'" said Rogen. "'This guy just actually did it. He made a movie about guys like us.'" Ironically, CLERKS is what inspired Rogen to start writing the first drafts of SUPERBAD, riffing on CLERKS' conversation style.

I haven't seen this movie yet, but I am going this weekend. Anyone who has seen it please leave a comment. Let us all know what you thought.

Yes We Did!

I have never been more proud to be an American. Barack Obama has resurrected the American Dream. Yes we did. I would like to personally thank everyone who helped. Everyone who voted. Everyone who made calls. Everyone who donated.







In an acceptance speech at Grant Park in Chicago, Obama spoke to a crowd of more than 160,000 people. We made history. This is just the first step of a long journey. He can't do it alone people. As much as we supported him throughout the election, we need to do that 10 fold throughout his presidency.

I remember watching last night and couldn't take my eyes of the tv screen. First Pennsylvania, then Ohio...one by one the states kept coming. It was like a dream coming to life. I can't wait until January.

Tell me your opinion on the subject.

Iverson on the Pistons....We'll miss you Chauncey

Joe Dumars told us this summer there would be changes. First, Flip was fired. No big deal. Everyone saw that coming. But today the Pistons traded Chauncey Billups and Antonio McDyess to Denver for Allen Iverson.

Most likely, McDyess will be waived by Denver so there is a strong possibility he will be coming back to the D.

"We just felt it was the right time to change our team," Pistons president of basketball operations Joe Dumars told The Associated Press. "Iverson gives us a dimension that we haven't had here and we really think it's going to help us."

I'm not sure about this one guys. I know Iverson would probably beat Chauncey one on one, but I think Billups was a better fit for the team. Personally he was my favorite player. It will be exciting to see what happens next, to say the least.

Iverson will be introduced at a press conference Tuesday at 3:30 at the Palace. He may play as soon as Wednesday in Toronto against the Raptors.

All in all, I'd rather have Billups. What do you think?

Sign of the Times - Circuit City Closing Stores

CRAINS DETROIT BUSINESS (NANCY KAFFER) - Circuit City Stores Inc. will close seven stores in Michigan, five in the Detroit market, the company announced Monday.

The Richmond, Va.-based consumer electronics giant has had several quarters of flagging profits, saying last week that its stock had fallen below the New York Stock Exchange’s listing criteria. Share price had dropped below $1 for 30 consecutive days of trading.

Circuit City, the nation’s No. 2 retailer of consumer electronics, will close stores in Auburn Hills, Bloomfield Township, Dearborn, Pontiac and Rochester Hills.

“Circuit City is having problems and Michigan is a particularly challenging market,” said Ken Nisch, chairman of Southfield-based retail consultancy JGA Inc.

“People usually don’t close stores in markets just because it is challenging, it’s that they don’t see growth opportunities ... they look at the present but they look at the future, so this is more of a concerning sign about the long-term prospects of those markets.”

Circuit City is closing 155 stores nationwide, about 20 percent of its stores, The Associated Press reported, by Dec. 31. Closing stores are expected not to open Tuesday; store-closing sales are expected to begin Wednesday, according to the report.

Cobo Expansion Is Moving Forward.....Hopefully

The much waited on Cobo expansion will be moving forward, at least I hope so. This expansion should add about 166,000 sq feet of overall space. Not only, will this help us keep the North American Int'l Auto Show, but it will attract other large conventions to the venue.

The Detroit Free Press reports

"The long-stalled $288-million expansion of Cobo Center inched toward realization Thursday as a committee of the Detroit City Council approved a plan and sent it to the full council for consideration next week."

Is it just me or is $288 mill way too much? I mean, Comerica Park cost $300 million to build and that was building it from scratch!

I want a bigger better Cobo as much as the next guy, but I'm worried we may be overpaying. I would like to see a transparent bidding process. I think they should show all the citizens what company bid what in some sort of open forum.

These are things we should be demanding from the new administration. Whoever it is.

Let me know what you think

Exercise Your Right

Make sure all of you that are able to vote, VOTE! Washington will never take us seriously unless we vote. Together we can't be ignored. I have been asked a few questions about voting here are the top 3.

Q. Where do I go to vote?

A. Go to RockTheVote.com and type in your address. It will tell you where to go.


Q. Do I need my voters registration card?

A. No. Voter cards let you know that you have successfully registered to vote. They contain information for where you will vote on Election Day and a phone number for your state if you have any questions. Voter Cards are NOT required in order to vote.


Q. Can I use a camera in the polls?

A. No. The use of video cameras, still cameras and other recording devices are prohibited in the polls when they are open for voting. This includes still cameras and other recording features built into many cell phones. The ban applies to all voters, challengers, poll watchers and election workers. Exceptions are made for credentialed members of the news media though certain restrictions remain.


Feel free to ask anymore questions you may have. Detroit let our voice be heard!

Welcome to We Love Detroit!

This is the first post of what hopefully will be many here at welovedetroit.blogspot.com.

This purpose of this blog is to talk about the Detroit: the good, the bad, and the ugly. I hope that by talking about these things we can make a difference.

Let me tell you about myself for those who don't know. I grew up in Southwest Detroit. I am a product of Western Int'l High School. I've owned a business on Vernor. I love Detroit, despite everything thats wrong with it. I truly believe if come together we can make it the great city it once was and should be.

Thanks for visiting!