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>>

  • NY brothers invent machine that makes CPR easier

    NY brothers invent machine that makes CPR easier

    Tuesday, July 29 2014 6:40 PM EDT2014-07-29 22:40:57 GMT
    Only 10 percent of people who get CPR from a bystander actually survive. But two young men in Westchester County have now patented a device that could dramatically increase those odds and save lives. John and Chris DiCapua's sitting room in their parents' Westchester County home has had a unique guest lying around for quite a while now: a CPR dummy. What began as an idea from their time as Boy Scouts is now a device that could potentially save lives.
    Only 10 percent of people who get CPR from a bystander actually survive. But two young men in Westchester County have now patented a device that could dramatically increase those odds and save lives. John and Chris DiCapua's sitting room in their parents' Westchester County home has had a unique guest lying around for quite a while now: a CPR dummy. What began as an idea from their time as Boy Scouts is now a device that could potentially save lives.
  • NYC stores with no signs feed curiosity

    NYC stores with no signs feed curiosity

    Tuesday, July 29 2014 6:31 PM EDT2014-07-29 22:31:37 GMT
    From coffee shops in Brooklyn to restaurants in Manhattan, we find speakeasies standing out by blending in. When people in Bushwick want a green machine juice blend they visit Leticia Castillo's Owl Juice Pub. But first they must find the owl. "We been doing fine without a sign," Castillo says.
    From coffee shops in Brooklyn to restaurants in Manhattan, we find speakeasies standing out by blending in. When people in Bushwick want a green machine juice blend they visit Leticia Castillo's Owl Juice Pub. But first they must find the owl. "We been doing fine without a sign," Castillo says.
  • Ex-Councilman Halloran quickly convicted in bribery plot

    Ex-Councilman Halloran quickly convicted in bribery plot

    Tuesday, July 29 2014 5:53 PM EDT2014-07-29 21:53:04 GMT
    A jury took only about 90 minutes Tuesday to convict former New York City Councilman Daniel Halloran of bribery charges in a scheme to buy a spot on the mayoral ballot for state Sen. Malcolm Smith. Halloran was also found guilty of taking payoffs from what he thought were developers who wanted him to funnel city money their way. The men were actually an FBI agent and an FBI informant.
    A jury took only about 90 minutes Tuesday to convict former New York City Councilman Daniel Halloran of bribery charges in a scheme to buy a spot on the mayoral ballot for state Sen. Malcolm Smith. Halloran was also found guilty of taking payoffs from what he thought were developers who wanted him to funnel city money their way. The men were actually an FBI agent and an FBI informant.
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 | Terms of Service | Ad Choices