Detroit City Council scheduled a special session today to discuss the proposed loan from Barclay's that EM Kevyn Orr believes is necessary to help the city through bankruptcy. You'd think, given that Council took the time to schedule this special session, everyone would be ready. Nope, this is Detroit.
Detroit Free Press: The Detroit City Council, in a special session today to consider a $120-million loan from Barclays to speed the city’s bankruptcy restructuring, will recess until 4 p.m. to straighten out confusion over documents related to the loan, which also would be used to invest in services such as police, fire and public lighting.
As collateral, the city is pledging its income tax revenue and the proceeds from the future sales of assets, except for Detroit Institute of Arts property. The city is likely to pay about 3.5% interest on the loan.
Also, there's something to be said for making unpopular decisions after 4 p.m. on a Friday afternoon, when your constituents are unlikely to be paying attention.
