Showing posts sorted by relevance for query penske. Sort by date Show all posts
Showing posts sorted by relevance for query penske. Sort by date Show all posts

Wednesday, May 22, 2019

Cocktails & Popcorn: Ole' Roger Dodger Penske Is Postering A Public Defense In Detroit

Image result for detroit wine
Allow me to suggest visiting a few Detroit wine rooms for this one
I was wondering when Ole' Roger Dodger was going to come out the woodwork.

Yes, I love the concept of alternative sentencing, or, perhaps, in this case, a bit of psyoptic posturing for building a platform for a public defense, but hey, what do I know?

Community group, Belle Isle Concern, brought "Penske
Fun at the Belle Isle Grand Prix
I know that someone should ask him out those rumors of uranium stock piles people in Southwest Detroit are chattering about.

And I do know someone should look into the Penske Foundation and the Michigan Economic Development Corporation.

I also know he is going to put on a really fun #colorevolution with a full cast of your Detroit characters for the #clownfest because he does the Belle Isle Grand Prix.

That is why I suggest visiting a few Detroit wine rooms for this one.

Penske Corp. donates $5M to Jefferson Chalmers through neighborhood partnership



Detroit — For about 20 years the Lenox Community Center in the Jefferson Chalmers neighborhood has sat vacant. Over time, the building has suffered water and property damage.

The center and a nearby park will be redeveloped with $5 million Penske Corp. is donating to the neighborhood through the city of Detroit’s Strategic Neighborhood Fund and Affordable Housing Leverage Fund Initiative.
Residents, officials with the city and Penske gathered Wednesday for the announcement at Norma G’s.

“We’re very grateful for this $5 million to be invested in such a significant asset in our community,” said Michelle Lee, a neighborhood resident and housing director for nonprofit Jefferson East.

“We need the Lenox center to be active. It will serve many families. … Seeing families and children being able to come into this neighborhood and have somewhere to go and participate in positive activities moving forward we’re very grateful for that.”

Lee said the center once housed Easterseals, which held summer programming in the building. In recent years, there have been local efforts to bring activity to the grounds of the vacant building, including butterfly and rain gardens. Each year, the community has a cider social at the Lenox Center Pavilion.

With Penske Corp.'s donation, there's more in store for the community center and Alfred Brush Ford Park, which sits along the Detroit River.

The company is among six other corporations committing $5 million over five years to city of Detroit’s Strategic Neighborhood Fund and Affordable Housing Leverage Fund Initiative.

Mayor Mike Duggan said Roger Penske, chairman of Penske Corp., approached the city to get involved in the neighborhood fund. 

“He was the only one who called us to say, ‘This is my level of commitment.’” Duggan said.
Duggan pointed Penske to Jefferson Chalmers, which he said is “one of the special and unknown neighborhoods in Detroit.”

“To me it’s amazing,” Duggan said. “Beautiful housing, open spaces and land where there used to be houses.

"A river at the south end, a commercial district that’s very underdeveloped at the north end. Abandoned apartment buildings that need to be renovated. You want to talk about an area that has the potential to come back enormously and has never had the resources. You should go check it out.”

Penske said Wednesday that he was amazed at the work already taking place in the neighborhood.

“You folks here obviously on your own collectively have put so much into it yourselves,” he said.

“That we could come in as individuals from the private sector, working public and private together.”
As part of the redevelopment, the Lenox Community Center will get a gymnasium.

Most of the improvements to the center and the park will begin March 2020 with a grand opening in September 2020. This summer, the park will receive lighting improvements through city bond funding. The Environmental Protection Agency will contribute to enhance wildlife habitat there.

Penske is known for his contribution to the city undertaking the Super Bowl XL in 2006. As the head of Detroit's Host Committee, Penske and the committee raised funds and prepared the downtown, which at the time had numerous empty storefronts, for the national event.

Penske said this work in a Detroit neighborhood “gave us a chance to show the community we wanted to give back to Detroit. … We want to be a part of you, want to be with you as partners and family.”

The announcement comes less than 24 hours after the city and state approve Fiat Chrysler's plans to invest $1.6 billion in expanding its Mack Avenue facilities with a new plant and investing $900 million to modernize its Jefferson North Assembly Plant. The plant expansion is expected to add 4,950 jobs.

“This is a pretty good week for this section of Detroit,” Duggan said. 

Voting is beautiful, be beautiful ~ vote.©

Monday, October 21, 2019

"Rodger Dodger" Penske Gets The Trump Stinky Touch

Penske is the "P" in GIMP.

Penske to receive Presidential Medal of Freedom this week

Racing icon Roger Penske will receive the Presidential Medal of Freedom on Thursday.President Donald Trump announced in June that Michigan resident Penske would be awarded the Presidential Medal of Freedom, the highest award given to civilians in the United States. Penske is expected to receive the award Thursday.

"He is a great gentleman who has won 18 Indianapolis 500s. He has won, just won Daytona," Trump said during an Oval Office meeting in June with  Canadian Prime Minister Justin Trudeau. He was referring to the Daytona 500 Championship.

"He won Daytona. He won Indianapolis. He won probably more than anyone in the history of racing. I can't imagine anybody being close."

Trump added: "He's very thrilled to be getting it, and that will be announced over the next little while but I guess actually I am announcing it pretty much now."

Trump called Penske "very deserving" and said he has known the billionaire businessman "a long time."

Penske is owner of Team Penske who founded Penske Corp., which is headquartered in Bloomfield Hills. He is credited with bringing the 2006 Super Bowl to a downtrodden Detroit, spearheading the event and turning it into a success, a sign, he exclaimed later, that "Detroit was coming back." He also helped bring IndyCar racing back to Belle Isle in Detroit.

He was named a Michiganian of the Year in 2005. His company, Penske Corp., was one of seven to commit to spending $35 million in Detroit neighborhoods over five years.

Penske in July acknowledged getting notified about the medal in a letter and a phone call.

“What an honor it was to get a call from the president,” Penske said. “It was very humbling to understand that I would receive the Presidential Medal of Freedom.

“... It’s very exciting for me, for my family, and certainly for our whole team and the people that have been around me to help me get to where I have been in life. This is more than about a sport. This is about your country. This is about you as an individual.”

Voting is beautiful, be beautiful ~ vote.©

Sunday, August 6, 2017

Part 1: Duggan’s formidable political machine relies on deep-pocket outsiders

This is a quote taken from the Motor City Muckrucker article, below:

" many of whom have contracts with the city or bought Detroit-owned property in the past three years."

I believe it should read:


"have contracts with or bought Detroit Land Bank Authority owned property" because the Detroit Land Bank Authority is not part of the City of Detroit as they are creditors in the Detroit Chapter 9 bankruptcy, have no corporation filings with the State of Michigan, and filed no corporate interest disclosures with the Courts.




Detroit Mayor Mike Duggan. Photo by Steve Neavling.

Mayor Mike Duggan has built a formidable political fundraising machine unlike anything Detroit has ever seen. 

The first-term mayor raised a whopping $2.8 million for his re-election bid, courting big banks, suburban developers, corporate executives, political action committees and other deep-pocket movers-and-shakers, many of whom have contracts with the city or bought Detroit-owned property in the past three years.

Wow, considering the rate of child poverty in Detroit, I guess he would have to fundraise outside the city limits.

By comparison, his challengers raised a mere $44,300 combined, giving Duggan a significant money advantage going into Tuesday’s primary election. But the mayor’s fundraising prowess raises serious questions about his influence with outsiders who don’t always have Detroit neighborhoods’ best interests at heart or who have contributed heavily to Republican candidates, including Donald Trump, Gov. Rick Snyder and the Michigan Republican Party.

Something tells me Coleman knows something about something that is going to happen and will not have to raise a single penny for his campaign to be successful.

Motor City Muckraker review of Duggan’s latest campaign finance report, which covers $1.6 million in donations from November 2016 to July 23, found: 
  • Just 10% of the mayor’s donations came from inside Detroit. Of those, nearly half came from political action committees.
  • Twelve of Duggan’s 26 fundraisers were held outside of Detroit, including two in New York City, three in Bloomfield Hills, one in Grand Rapids and one in Lansing.
  • Duggan’s most successful fundraiser was held at the sprawling home of Yousif and Mara Ghafari, both of whom have histories of donating tens of thousands of dollars to the Michigan Republican Party and conservative candidates, including Donald Trump, Gov. Snyder, George W. Bush and Mitt Romney.
  • An unusual number of employees from deep-pocket companies contributed to Duggan’s campaign, including more than 150 from Blue Cross Blue Shield, 119 from the law firm of former Detroit Mayor Dennis Archer, 30 from DTE and 43 attorneys from Honigman Miller Schwartz and Cohn. Two Blue Cross employees said they felt pressured to donate.
  • Miller Canfield Paddock and Stone, the law firm representing the mayor’s controversial demolition program, which is under a federal grand jury investigation, donated $26,600. The firm’s PAC also donated $10,000 in October 2016.
  • Duggan relied heavily on suburban billionaires and their companies, including Dan Gilbert’s Quicken Loans, Roger Penske and his businesses, the conservative DeVos and Meijer families and Tony Soave, who gave former Mayor Kwame Kilpatrick’s friend, Bobby Ferguson, $30 million in work from 2002 and 2008 and spent an additional $300,000 on Kilpatrick for private flights, hotels, watches and sporting events.
  • Two high-ranking Snyder employees – senior adviser Richard Baird and former Chief of Staff Dennis Muchmore – both donated to Duggan and were influential in the financial takeovers of primarily black cities.
  • Since Duggan became mayor in January 2014, he raised an additional $433,000 through his controversial nonprofit, Detroit Progress Fund, which can take unlimited contributions. A vast majority of the donors are corporations, many of which have contracts with the city.
Duggan’s campaign declined to comment on the outside donations but insisted the mayor was running a “grassroots campaign.”

I wonder if Motor City Muckrucker asked the Detroit Land Bank Authority about its participation in the campaign.

“Mayor Duggan has been running a grassroots campaign from the beginning and will continue to do so,” said campaign spokeswoman Sharon Banks, who also served as the press secretary for then-Wayne County Executive Robert Ficano. “He is across the city every day visiting and meeting with residents in the neighborhoods. The more than 10,000 families with a sign in their yard is a good sign that they believe the city is headed in the right direction.”

I believe "grassroots" means what is left of the properties that were stolen from the people by the Detroit Land Bank Authority.


Sen. Coleman Young II. Photo by Steve Neavling.

Duggan’s most competitive challenger, Sen. Coleman Young II, who raised $22,000 so far, criticized the mayor for relying on big banks and corporate outsiders who have preyed on the neighborhoods.

"Always remember, it takes a village...then pillages its treasury."

Duggan has aligned himself with those who have made millions and millions of dollars off the misery of folks who live in Detroit,” Young’s campaign manager Adolph Mongo told us. “None of these corporations care about the revival of the neighborhoods. The banks, Quicken Loans and people like Dan Gilbert are the direct cause of the problems and foreclosures in the neighborhood.”

I believe the proper corporate reference would be Title Source, Incorporated.

Mongo added, “Unlike Duggan, Sen. Young refuses to be bought off and won’t sell the mayor’s office to get donations.”

While Duggan is leading Young in recent polls, serious questions have been raised about the mayor’s loyalty to neighborhoods, where most of the city’s predominately black population lives. Duggan, for example, is demolishing thousands of houses with federal money originally intended to help people save their homes. The mayor also repeatedly lied to the public about the use of $34.5 million in captured taxes to convince billionaire Tom Gores to move the Pistons to downtown Detroit. He also struck deals with the billionaire Illitch family and Dan Gilbert, allowing them to skirt affordable housing requirements for big residential developments in downtown and the rapidly gentrifying Cass Corridor.

Guess where the money for these project came from!  You, the taxpayer.

Among the biggest contributors to Duggan’s campaign was Blue Cross Blue Shield, which has lucrative contracts with the city. More than 150 employees and executives donated nearly $70,000 in the past several months, and the insurance company’s Lansing-based PAC contributed more than $75,000 to Duggan’s campaign and his Detroit Progress Fund.

I bet if you back track, the Clinton Foundation will be his biggest, dark, dirty money campaign contributor.


Blue Cross CEO Daniel Loepp

Blue Cross CEO Dan Loepp urged more than 1,000 employees to donate to Duggan’s campaign in March, potentially violating the company’s own code of business conduct, Crain’s Detroit Business reported. A day later, members of the company’s PAC received an email from Duggan’s campaign asking for money.

Blue Cross prohibits the use of “company property, facilities or time of any other workforce member for any political activity.”

Two Blue Cross employees, who spoke on condition of anonymity for fear of losing their jobs, told Motor City Muckraker they felt pressured to donate.

“If you want to climb up the ladder, you do what the CEO wants,” one employee said.

Hmmmm, I wonder what Bill Schuette is doing right about now....


Yousif Ghafari

Duggan’s most successful fundraiser – in which $277,000 was donated – was held on June 19 at the sprawling Bloomfield Hills home of Yousif and Mara Ghafari, who are deep-pocket donors to Republican candidates. Yousif Ghafari, the former U.S. ambassador to Slovenia, also sits on the Blue Cross Blue Shield Board of Directors.

The Ghafari family owns Ghafari Associates, which opened an office in downtown Detroit earlier this year. Wayne Count successfully sued the Dearborn-based company for its role in the failed jail project.

I wonder what his federal contracts were for.

Out-of-state donations
Duggan received 56 donations exceeding $1,000 from out-of-state residents, including six executives from JPMorgan Chase, which reached a $55 million settlement with the government in January over allegations that it discriminated against thousands of black and Latino mortgage borrowers.

Many of the out-of-state donations came during two fundraisers in New York City. Duggan raised $31,519 on the 20th floor of 277 Park Avenue, where JP Morgan Chase’s world headquarters are.
Duggan raised an additional $15,150 at a $1,000-a-plate fundraiser at Shinola’s flagship store in the Tribeca neighborhood of Manhattan.

Banks, through the Detroit Land Bank Authority, hand out mortgages through the Hardest Hit Fund.

Another company that profits off of foreclosures, Ohio-based Safeguard Properties, also donated to Duggan’s campaign. Founder and chairman Robert Klein and his wife Ita Klein each contributed the maximum $6,800. The company clears out bank-foreclosed homes.

...and clears out Detroit Land Bank Authority Quiet Title Actions.

Detroit donations
More than two dozen executives with Detroit-based Quicken Loans, which the federal government also accused of predatory lending, contributed nearly $73,000 to Duggan’s re-election campaign. In early July, a federal judge ruled that Quicken Loans officers brokered illegal loans in excess of fair market value by relying on excessive home appraisals.

Title Source, Incorporated was fraudulently collecting non-existent, made up, delinquent taxes for Detroit Land Bank Authority because the Detroit Land Bank Authority is not a registered corporation, which means it has to run its money laundering through another host.


Dennis Archer Jr.

Former Detroit Mayor Dennis Archer and his son Dennis Archer Jr. turned out big for Duggan. Archer Jr., who won at least two competitive land contracts from the Duggan administration, was a guest speaker at the Shinola fundraiser in New York City. He and his company, Ignition Media Group, donated $14,000 to Duggan’s Detroit Progress Fund.
Archer’s father held a fundraiser for Duggan at the former mayor’s home in Palmer Park, where 29 guests donated a combined $49,240. Archer’s law firm, Dickinson Wright, also held a fundraiser at the company’s office in downtown Detroit, raising $10,850. A total of 115 employees of Dickinson Wright donated to Duggan’s campaign.

Oh, DJ...

On Monday, Motor City Muckraker explores how Duggan spent his donations and ran his campaign.
Motor City Muckraker is an independent watchdog funded by donations. To help us cover more stories like this, please consider a small contribution.

Sitting on the edge of my seat!

http://motorcitymuckraker.com/2017/08/06/part-1-duggans-formidable-political-machine-relies-deep-pocket-outsiders/

Voting is beautiful, be beautiful ~ vote.©

Wednesday, December 12, 2018

Detroit Land Bank Authority Partners Are Forced To Give Stolen TARP Money Back To The Poors

I would like to extend, once again, my gratitude to the Michigan Eastern District FBI & U.S. Attorney's Office and SIGTARP for making this all happen...and not Mike Duggan.

7 companies partner for $35M investment in Detroit neighborhoods


DETROIT (FOX 2) - Seven companies have partnered to invest $35 million in Detroit neighborhoods.

Mayor Mike Duggan made the announcement Monday morning with leaders from each of the companies: American Axle, Blue Cross Blue Shield of Michigan, Chemical Bank, Fifth Third Bank, Flagstar Bank, Huntington Bank, and Penske Corporation.
photoDuggan says Detroit is "taking the strategy that worked in Midtown and scaling it citywide to bring more  to neighborhoods across our city."

Each company is donating $5 million to the revitalization of Detroit's neighborhoods. Seven different neighborhoods are in line to receive the funds: Grand River Northwest, Jefferson Chalmers, Russell Woods/Nardin Park, Campau/Banglatown, Warrendale/Cody-Rouge, Gratiot/7 Mile, and East Warren/Cadieux.


Duggan said the money will be invested in storefronts for shops and restaurants, in vacant buildings for new apartments and affordable housing, and that parks and street scapes will also be upgraded. Duggan said the city's $250 million dollar affordable housing fund will preserve 10,000 affordable units, while creating 2,000 more.

"This is what the people of Detroit have been waiting for. 'When does the development start to spread to my neighborhood?'" Duggan said.

The donation is believed to be the largest to neighborhood development in Detroit's history.

Donation.....riiiiiiight.......(wink).

Duggan said, beginning next year, leaders from each of the seven neighborhoods will begin meeting with the companies to determine how the funds will be used. Duggan said the neighborhoods can also decide to take the funds from the Strategic Neighborhood Fund's pool, or team up specifically with one of the companies as a neighborhood sponsor.

The original three Strategic Neighborhood Fund spots are Livernois/McNichoos, Southwest/Vernor, and Islandview/Greater Villages.

The funding for Strategic Neighborhood Fund efforts is expected to leverage another $70 million in private investment.

Voting is beautiful, be beautiful ~ vote.©

Thursday, October 18, 2018

The Detroit Free Press Forgot To Opine About SIGTARP & The Detroit Land Bank Authority Relationship With Gilchrist & Schuette

Guess what?

I have an opinion, too.

Here are my 2 cents:

If this writer is going to have a tizzy about Bill not having a similar law enforcement moment when it comes to corporate blight, then how come he does not go after Bill for not doing anything about the Detroit Land Bank Authority?

Wait, I know why.

The Detroit Land Bank Authority is having some SIGTARP issues and The Detroit Free Press is sitting on the big reveal.

Just keeping it real, Nancy.

Schuette slams Detroit Dem for blight, OKs it for billionaire investor | Opinion

GOP gubernatorial candidate Bill Schuette is appalled by the condition of an apartment building owned by Democratic lieutenant governor candidate Garlin Gilchrist II in Detroit's North End. The property on Marston Street, Schuette says, is so disgraceful, and Gilchrist's failure to rehabilitate it so egregious, that Gilchrist, Democratic gubernatorial candidate Gretchen Whitmer's running mate, should resign from the race.

Hey Bill, do me a favor and send one of your Detroit Assistants down to the Wayne County Register of Deeds and pull the history of the property.  That action is a bit out of my economic range for existence having to fix my own house up, all by myself because you keep making me do your job.

The North End apartment building is in bad shape, no doubt. Despite the money Gilchrist has poured into the building, it's not yet inhabitable, and the neighbors on Marston Street have justifiable complaints. Blight is one of Detroit's most intractable problems, and there's no denying the physical and psychological toll it takes.

I recall this Public Private Partnership in Detroit that received millions upon millions to address the blight in Detroit. I vaguely remember that work organization being called the Detroit Land Bank Authority, but considering the fact that when I searched for its corporate instrument of authority filed under a responsibility of Bill and I could not find it, I would need to have my memory refreshed. Perhaps, Nancy can do an opinion piece on what happened to all that TARP money for blight.

But when Schuette slams Gilchrist's ownership of a blighted, vacant building, he's not just reducing a complicated story about land ownership and barriers to property rehabilitation in this city to a political jab. He's tacitly acknowledging a double standard many longtime Detroiters recognize: All too often, Detroiters are held to one standard, while billionaire investors get carte blanche.

Maybe Bill can give us some clarification on the land ownership issue by explaining how the Detroit Congressional Districts were gerrymandered from severe questionable breaks in the chain of command with these deeds.  He can start by investigating the Wayne County Property Deed Fraud Unit if SIGTARP is not already investigating him.  Ask Bill, Nancy.

As Michigan's attorney general, Schuette effectively signed off on generous public subsidies for the construction of the Ilitch family's $864 million Little Caesars Arena, issuing a 2014 opinion that OK'd the Detroit's Downtown Development Authority collection of Detroit school taxes to fund the private development, a public benefit of $324 million.

Yea, Bill, how come you granted powers of taxation to the working group Detroit Downtown Development Authority, which has never been audited because is not incorporated in the State of Michigan to levy taxes? Bill is not a king because that title of nobility was granted to the Emergency Managers.  And while you are at it, Nancy, go ask Bill how come he lets the Detroit Land Bank Authority levy taxes that do not exist and how come there is state law allowing state public school taxes to be levied across the state then split, 50/50 with the Detroit Land Bank Authority, and the rest going to the Detroit Downtown Development Authority.  Ask Bill if this is one of those Social Impact Bond Schemes.  I did an SEC snitch, you know.

The Ilitches have a track record of property ownership that's rife with blight on a vast scale. They pursued a 15-year strategy to acquire property in the arena's footprint, often leaving some structures in disrepair. Ilitch-owned properties continued to rack up blight tickets as recently as this summer.

Everyone knew about the Ilitch demolition plans. You just let the natural elements tear up the building so you can file insurance and not have to pay for asbestos containment and removal.


More: Who is Garlin Gilchrist? Father, tech expert, Whitmer running mate

"I’m not, I’m not going to comment, nor am I agreeing, you’re charging the Ilitches have a shoddy, spotty, whatever it is, record," Schuette said. "... My point is that I’m not commenting on the Ilitches’ blighted property record, I think that, frankly, Ilitch plus Penske plus Gilbert and a whole bunch of private investments have caused a rebirth in Detroit, and quite frankly, I think that is significant. And I want to encourage more of that."

Of course Bill is not going to comment on the fraudulent foreign operations funding his campaign.

The 2014 opinion, Schuette said, was "a sound, solid decision, and I’m not going to make any apologies on that."

Is Bill compromised?  Drop that video!

Nor would Schuette discuss whether, as governor, he would find it appropriate to offer public tax subsidies to other private land owners who oversee blighted properties, or who owe back taxes, as the Ilitch family did during arena deal negotiations.

If I am not mistaken, these corporations are tax exempt.

"I'm not going to get into the blighted issue," he said. "I want Detroit to grow. Detroit is a city of 138 square miles. We’ve seen a huge renaissance, and the issue is how do you help build that out, and I want to help build that out. Frankly, I’m Detroit’s best hope. You may disagree with that."

Whether Bill is the best choice for governor or not is just as a sanguine decision for a kid who has survived foster care of whether to be raped or turn a trick to eat for the day.

When it comes to Gilchrist, Schuette isn't quite as forgiving.

It is called a public distraction, or a LARP.  SIGTARP is watching.

Garlin and Ellen Gilchrist aren't deep-pocketed developers or billionaire business owners.

The Gilchrists' bought the Marston Street building, a multi-family property rare for a Detroit Land Bank Authority auction, back in 2016, for $13,500, half of the $27,000 auction price. Because Gilchrist was a city employee, he was eligible for a 50 percent discount.

Nancy, can you pull that payment and see to whom the check was made out to, who cashed it, and any other financial transactions.  Bill is more than likely too busy preparing for the foster care public debate.

"We are not real estate developers so much as people who though, t we could bring this building back to life in a part of the city that has meaning to us," said Gilchrist, who played Police Athleltic League basketball as a child at the former Considine Rec Center on Woodward Avenue in the North End, told me this week.

The building was badly damaged, and Gilchrist and wife Ellen borrowed against their home to start work. He says they spent around $200,000 on cleanup of the interior, repairing or removing parts of the structure, leveling the foundation, replacing some windows, fixing the porch and the roof, and on architectural plans and surveys required for the full renovation of the building.

Then the Gilchrists ran out of cash.

So, you mean to tell me "GG, the tech guru" did not even have a sequence of events schedule based upon a complete price estimate before starting anything? That is probably the reason he cannot find any funding.  He had no clue on what to do.

Gilchrist left the city shortly after buying the Marston Street property to run for Detroit City Clerk in 2017.

Duggan and the MDP had to make sure to split the vote to keep Janice Winfrey in office since she jacked up their own plans to throw the 2016 election cycle. "Legal Geniuses" (trademark pending).

"We've been to a lot of different lenders and had a lot of fits and starts," Gilchrist said. "There are still challenges to get some renovation financing."

It is called organization.

The Gilchrists aren't alone. Detroit has no shortage of housing, or buildings in need of rehab. But funds to complete those rehabs can be difficult to obtain. 

Funding is difficult based, mostly, upon jacked up deeds.

Lenders still view Detroit rehabilitation loans as high-risk, with some justification, said Mac Farr, executive director of the Villages Community Development Corporation on Detroit's east side.

The loans are high risk because you never know when the Detroit Land Bank Authority might just swoop in and file another quiet title action without notification, of course, because they have no legal authority to exist which is why they use other operations to cash checks.

"It’s still a touch-and-go activity," he said. "If it works out, it works out very well. If not, it’s disastrous."

If you are in the clique, all you have to do is let the "Legal Geniuses" (trademark pending) get you some funding through the New York Bank of Mellon with a fake LLC, then file bankruptcy so the Detroit Land Bank Authority takes back the home and all the debt is wiped out, which is disastrous for the taxpayers who paid this all through TARP.

A would-be borrower without a track record of completing successful rehabs, Farr said, is at a deep disadvantage: "In the neighborhoods, it's still bootstrappy mom-and-pop (rehabbers) this stuff."

It is called survival.

Gilchrist's North End property is an eyesore. And there's no question about that, or that Gilchrist, who bought the eight-unit apartment building back in 2016, should have done better.

He is just lazy.

That's something Gilchrist himself acknowledges, saying he's dissatisfied with the progress he's made: "We’re still trying to work to get financing. This has been a two-year process, and we are committed to still trying to figure this out. This is something that is important to Ellen and I. We started it and we want to finish it."

Nancy, would you be a love and let Bill know as soon as GG the tech guru gets financing. 

It's an explanation that's unlikely to sway Schuette. Maybe Gilchrist should have asked for a multi-million-dollar subsidy, instead?

His handlers already did.

Voting is beautiful, be beautiful ~ vote.©

Thursday, August 2, 2018

Cocktails & Popcorn: SEC, Kwame Kilpatrick & Detroit Unfinished Business

Image result for vintage wine
Outstanding SEC investigations of Detroit
"It is time to uncork."
Whenever opening a vintage wine, one must always enjoy the messaging of the label.

In this instance, the vintage wine is SEC, a very dry vintage going back to the days of the unfinished public corruption situation, still rolling strong, in Detroit.

Now, why would the U.S. Security and Exchange Commission be dust off and bring up unfinished business from the cellar of public corruption history?

Can you say, "Bonds and structured debt"?

I can, and I bet SEC is the message.

Stay tuned.

Judge boosts Kwame Kilpatrick's debt to $11.5M


Detroit — A federal judge sent former Detroit Mayor Kwame Kilpatrick a prison cell-warming gift Wednesday: a $552,862 bill stemming from another City Hall scandal.
Kilpatrick, 48, who was recently transferred from an Oklahoma prison to a New Jersey lock-up, was ordered to pay the money to the U.S. Securities and Exchange Commission. The SEC claimed Kilpatrick was part of a scheme to strong-arm a city pension fund businessman for $125,000 worth of private flights, Prince concert tickets, steakhouse dinners, golf trips and VIP hotel rooms in Las Vegas.
The order from U.S. District Judge Victoria Roberts boosted Kilpatrick's debt to more than $11.5 million, which includes taxes, restitution related to various criminal convictions, attorney fees, loans and credit card bills.
Collecting could be difficult. Kilpatrick claimed he was broke before being convicted of racketeering conspiracy in 2013 and recently said he had 96 cents in his prison commissary account. Kilpatrick isn't scheduled to be released from prison until August 2037, though his family is pushing for clemency from President Donald Trump.
Kilpatrick’s finances came into sharper focus April 19. That’s when U.S. District Judge Arthur Tarnow ended a six-year legal battle by issuing a nearly $7.5 million judgment to a firm owned by minority contractor Willie McCormick.
McCormick sued the former mayor and contractor Bobby Ferguson in 2012, alleging they ran a secret scheme to steer water department work to favored firms.





McCormick’s lawsuit mirrored allegations that were central to the racketeering conspiracy case against Kilpatrick and Ferguson. Ferguson was sentenced to 21 years in federal prison.
Kilpatrick, Ferguson and former mayoral aide Derrick Miller never responded to the civil lawsuit and McCormick received a default judgment in 2016. A federal magistrate judge in March issued a recommendation that McCormick receive $7,477,874, which represents lost profits on three Detroit Water and Sewerage Department contracts.
The McCormick lawsuit was filed the same year as a separate civil complaint filed against Kilpatrick and others, including former Detroit Treasurer Jeffrey Beasley.




In April, the SEC’s lawyers asked Roberts to issue a final judgment. 
Beasley, 49, was sentenced to 11 years in federal prison in 2015 for pocketing bribes while serving on the city’s pension fund boards.
Beasley was the lead defendant in a widespread corruption case that provided insight into a system of businessmen bribing pension trustees for their vote on investments that were supposed to raise money for retiree benefits. Instead, two Detroit pension funds lost more than $95 million in corrupt deals.
On April 16, six years after the SEC filed the lawsuit, Kilpatrick responded and asked to have the judgment set aside.
Kilpatrick wrote that he did not recall anything about the lawsuit and was preoccupied with the criminal corruption case.
In a letter sent from federal prison in Oklahoma, Kilpatrick asked the judge for an “opportunity to zealously and vigorously defend myself.”
In response, the SEC blamed Kilpatrick for ignoring the lawsuit, a copy of which was served on the former Detroit mayor at his rental home in May 2012 in Texas.
“Although he indisputably knew about the complaint, Kilpatrick never answered, pled, appeared, or otherwise defended the SEC’s charges,” the commission’s attorney Timothy Leiman wrote in a filing.
On Wednesday, the judge said Kilpatrick's excuses for failing to respond to the SEC lawsuit were illegitimate.
The judge ordered Kilpatrick and Beasley to pay $122,923 plus $39,939 interest.
Kilpatrick also was ordered to pay a $390,000 civil penalty.
Here is a breakdown of Kilpatrick's other debts awaiting his release from federal prison:
■ $1,520,654 in restitution to the city water department from the city hall corruption scandal.
■ $854,062 in restitution to the city stemming from the text-message scandal that ended his political career. Kilpatrick hasn’t made a payment since before being sent to prison.





■ $650,000 in attorney fees.
■ $240,000 in loans from Compuware co-founder Peter Karmanos Jr. and businessmen Roger Penske, Dan Gilbert and James Nicholson.
■ $195,000 in federal taxes.
■ $53,577 in student loan and credit card debt.
rsnell@detroitnews.com

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