$28M will go to trustee without Detroit's top lawyer's signature
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By Ronnie Dahl, Fox 2 News -
Spirit of Detroit statue outside the Coleman A. Young Municipal Center (Credit: WJBK | myFOXDetroit.com)
DETROIT (WJBK) -
The City of Detroit is struggling to avoid a financial disaster and the city's top lawyer, Krystal Crittendon, is once again front and center. Her signature is needed on bond refinancing paperwork. Without it, State of Michigan Treasurer Andy Dillon says $28-million in revenue sharing money will be diverted to a trustee.
He claims it's not a political move to get Crittendon to drop her legal challenge of the Financial Stability Agreement.
"It's not a threat. It's just there [are] agreements in place that say I have to send the money to the trustee," said Dillon.
"She's a lawyer. She knows what she's doing. She's not playing political games, and I trust her," said City Council President Charles Pugh, voicing his support for Crittendon.
"She's not trying to block what we're doing. What she's trying to make sure is that it's legal."
The legal fight between the city and state may not be over. Fox 2 obtained a copy of a letter from the state Attorney General's Office to the City of Detroit's chief deputy lawyer. It was written Thursday and is in response to a request by the city lawyer for the attorney general to join a motion to have an Ingham County judge reconsider his earlier rejection of a lawsuit filed by Crittendon challenging the Financial Stability Agreement.
The response from the state, Crittendon's claims are meritless and there is concern over how prolonging the needless litigation will impact Detroit's ability to meet its financial obligation.
Detroit's interest rate has already been impacted jumping to 6.25-percent, an extra $10,000 a day.
"I think we should stop playing these games. The City of Detroit is broke and this back and forth and these little games about whether we're going to run out of money and whether we should get money that we've already agreed that we should get, I think we should stop this," said Pugh.
We did reach out to Crittendon, but she has not returned our phone calls.
Saturday, February 23 2013 11:33 PM EST2013-02-24 04:33:03 GMT
An AK-47, three other long guns and two handguns are now off the streets of Detroit. The weapons were confiscated by Wayne County Sherrif's deputies during a raid at a suspected drug house.
An AK-47, three other long guns and two handguns are now off the streets of Detroit. The weapons were confiscated by Wayne County Sherrif's deputies during a raid at a suspected drug house.
Saturday, February 23 2013 8:56 PM EST2013-02-24 01:56:59 GMT
Michigan's road to recovery could take a big hit if congress allows $85 million in cuts to the defense department. Tens of thousands of jobs could be at risk in our state, especially in Macomb County.n.
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A mother is pained beyond words. Her three-year-old daughter was killed in a crash Sunday on Detroit's west side less than a block from her house. The chaotic scene was visible from her front door.
A mother is pained beyond words. Her three-year-old daughter was killed in a crash Sunday on Detroit's west side less than a block from her house. The chaotic scene was visible from her front door.
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Saturday, February 16 2013 8:15 PM EST2013-02-17 01:15:29 GMT
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Sunday, May 19 2013 10:57 PM EDT2013-05-20 02:57:40 GMT
The federal judge presiding over civil rights challenges to the stop-and-frisk practices of the New York Police Department has no doubt where she stands with the government.
The federal judge presiding over civil rights challenges to the stop-and-frisk practices of the New York Police Department has no doubt where she stands with the government.
Sunday, May 19 2013 10:25 PM EDT2013-05-20 02:25:40 GMT
Metro-North is urging commuters in Connecticut to make alternate plans starting on Monday. Train service on much of the New Haven line remains suspended after Friday's train derailment
Metro-North is urging commuters in Connecticut to make alternate plans starting on Monday. Train service on much of the New Haven line remains suspended after Friday's train derailment
Sunday, May 19 2013 9:21 PM EDT2013-05-20 01:21:50 GMT
The Connecticut Department of Transportation and Metro-North Railroad released the following information on Sunday regarding service on the New Haven commuter rail line
The Connecticut Department of Transportation and Metro-North Railroad released the following information on Sunday regarding service on the New Haven commuter rail line
Sunday, May 19 2013 8:35 PM EDT2013-05-20 00:35:12 GMT
A bicyclist was killed when he was struck by a livery cab in Brooklyn early Sunday morning. Police say the victim was riding eastbound on Eastern Parkway between Underhill and Washington Avenues
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Amtrak announced Sunday night that service remains suspended between New York and New Haven, with limited Amtrak service available between Boston and New Haven.
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U.S. Senator Kirsten Gillibrand (D-NY) announced a new legislation to reduce debt on federal loans. Gillibrand is proposing the "Federal Student Loan Refinancing Act"
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Sunday, May 19 2013 3:14 PM EDT2013-05-19 19:14:07 GMT
Authorities say one person is dead and another was injured when the vehicle they were in ran off the road and crashed into Huntington harbor on Long Island Saturday evening.
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A trip to Subway turned into a nightmare for an elderly Berkley couple Friday afternoon in Commerce Township. Oakland County Sheriffs say a man left his 74 year-old wife in the car, while he ran inside
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It's National Boating Safety Week - a good time to learn about new boating safety regulations. Macomb County Sheriff Anthony Wickersham talked with Fox 2 about what boaters need to know.
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Sunday, May 19 2013 8:54 PM EDT2013-05-20 00:54:31 GMT
Four people were shot and injured Sunday outside a house on Lakepoint in Detroit. The shooter, in a gold truck, is still on the loose.
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Authorities have identified a 20-year-old man they've arrested in the firebombing of the suburban Detroit home of an heir to the Art Van Furniture business.
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Let It Rip Weekend: Doggy Insurance, Pit Bull Bans & $15 Minimum Wage
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This time we're talking about a new requirement in Royal Oak that has some dog owners taking out $1 million insurance policies on their pooches. Plus, Waterford Township is considering repealing their
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It was supposed to be their big night, but prom turned into a big headache for teens from a local high school. Police showed up to crack down on an unauthorized limo service.
It was supposed to be their big night, but prom turned into a big headache for teens from a local high school. Police showed up to crack down on an unauthorized limo service.
Friday, May 17 2013 11:55 PM EDT2013-05-18 03:55:04 GMT
"We intend to build cars in North America for [the] North American market, build cars in Europe for the European market and build them in Asia for the Asian market," said Don Graunstadt.
"We intend to build cars in North America for [the] North American market, build cars in Europe for the European market and build them in Asia for the Asian market," said the CEO of North American Operations for the electric car company.
Spirit of Detroit statue outside the Coleman A. Young Municipal Center (Credit: WJBK | myFOXDetroit.com)
