In an effort to prevent bankruptcy before Christmas, Detroit Mayor David Bing is proposing new, drastic cuts in public services that include privatizing city buses and lighting[1]. Economists are calling the move a “Hail Mary,” but some believe that it could give Bing and the city a little more room to breathe. However, most emphasize that the real key to recovery in the Michigan city is “to get foreclosed property back in private hands.” This would dramatically boost the content of city coffers as property taxes began to flow once more. Currently, the city faces a cash shortfall of $45 million by the end of the fiscal year in June 2012, and some analysts say that this shortfall will come much sooner – possibly before the new year[2].
Do you think Detroit can be saved? How?
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[1] http://www.csmonitor.com/USA/2011/1117/Mayor-s-last-ditch-effort-to-save-Detroit-would-privatize-88-000-streetlights
[2] http://www.therepublic.com/view/story/6952dc061f944c6eb69de1c3aaab04af/MI–Detroit-Finances/
There are so many rotting shells of former homes there, there needs to be a massive public/private effort to completely bulldoze some areas and turn them into parks, and tear down/rebuild the rest.
I think the real estate investors are the solution for saving Detroit from bankruptcy. When investors buy homes, renovate them, and resell or rent them to qualified residents they can revitalise the city in every aspect. When homes are occupied and properly managed,it is a win win situation for all. The city gets it’s tax revenue,local jobs can be created, and communities as a whole improve. As a Detroit businesswoman, I have been encouraging investors on the local and national levels to invest in the Detroit real estate market. In fact I have helped develope and manage several real estate joint ventures for investors who are very happy with the high returns on their investments. I feel commited to revitalise the Detroit Metro community by extending my knowledge and expertise to help Detroit residents and to improve the city one home at the time.
I bought one of those run down homes in Detroit, put $30,000 into renavations had it rented but had a major problem finding a good reliable and trusting Property Management to take care of it because I live in California. The city needs to give Investors willing to put money into the area homes need to have a tax break for the firsat 3 to 4 years.