Detroit City Council tracking unpaid loans - New York News

Detroit City Council tracking unpaid loans

Posted: Updated:
DETROIT (WJBK) -

On Thursday, Fox 2's Charlie LeDuff attended a Detroit City Council meeting.  On the meeting agenda, some questions about a developer with connections to city hall who received a letter that told him he was allowed to take his time paying back a $19-million dollar loan.

Detroit City Council member Ken Cockrel wants to know why a loan issued by the city of Detroit and backed by the U. S. Department of Housing and Urban Development (HUD) has a flexible timetable to be paid back. 

At the meeting, Cockrel asks Detroit City Attorney John Nader if, in his experience, it was standard operating procedure for a forbearance letter such as this to be issued.

Nader responds: "Well there's generally more of a full blown forbearance agreement done. And generally they say in exchange for forbearing they'll be consideration on the part of whoever wants the forbearance, in this case the developer, so if they are done, they're done differently."

Cockrel tells LeDuff after the meeting:  "This definitely was not a case of standard operating procedure."

As reported on Fox 2 in the past, this is not just one group of developers it is a slew of them, owing tens of millions of dollars to Detroit.

Robert Anderson of the Detroit Planning and Development said this to the City Council:  "The culture of the community is that, the prevailing thought was that these Section 108 Loans, aw shucks, we wrote them us a loan but they're really just a grant, its Federal funds so don't worry about it.  My contention is that's five to seven million dollars that is not available to help the man on the street or the folks in the neighborhood, so that's why we are pursuing this and I look forward to a more detailed discussion."

The next Detroit City Council meeting on the subject of unpaid loans will take place in June and Fox 2 will be there to report on the details.

  • Local NewsLocal NewsMore>>

  • Times Square, 1 WTC go gold for childhood cancer awareness

    Times Square, 1 WTC go gold for childhood cancer awareness

    Tuesday, September 2 2014 10:20 PM EDT2014-09-03 02:20:23 GMT
    Things are looking up for cute little Cami King. Not only is her cancer in remission, she also just got to meet Mickey, Minnie and Elmo in Times Square. But, if you can believe it, there's something else this 4-year-old is even more excited about: Times Square is going gold. The chairman of the Times Square Advertising Coalition announced the crossroads of the world is going to light up in gold to raise awareness for pediatric cancer research.
    Things are looking up for cute little Cami King. Not only is her cancer in remission, she also just got to meet Mickey, Minnie and Elmo in Times Square. But, if you can believe it, there's something else this 4-year-old is even more excited about: Times Square is going gold. The chairman of the Times Square Advertising Coalition announced the crossroads of the world is going to light up in gold to raise awareness for pediatric cancer research.
  • Lawyer says family of girl with Uzi is devastated

    Lawyer says family of girl with Uzi is devastated

    Tuesday, September 2 2014 10:00 PM EDT2014-09-03 02:00:24 GMT
    An attorney for the parents of a 9-year-old girl who accidentally killed an Arizona shooting range instructor with an Uzi say the family is devastated by the tragedy that occurred on a brief excursion during a...
    An attorney for the parents of a 9-year-old girl who accidentally killed an Arizona shooting range instructor with an Uzi say the family is devastated by the tragedy that occurred on a brief excursion during a vacation.
  • Deadly crash in Lincoln Tunnel

    Deadly crash in Lincoln Tunnel

    Tuesday, September 2 2014 8:15 PM EDT2014-09-03 00:15:54 GMT

    Officials say a New Jersey man has died from injuries he suffered in a chain-reaction crash inside one of the tubes of the Lincoln Tunnel.  Port Authority of New York and New Jersey police spokesman Joe Pentangelo says the 49-year-old Summit resident was among three people hurt in the accident.


    Officials say a New Jersey man has died from injuries he suffered in a chain-reaction crash inside one of the tubes of the Lincoln Tunnel.  Port Authority of New York and New Jersey police spokesman Joe Pentangelo says the 49-year-old Summit resident was among three people hurt in the accident.



Powered by WorldNow
Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices