The Motor City may rev its engines for at least another day. On Friday President Obama committed a $320 million package comprised of grants and unused funds to help revive the downtown Detroit area. Motown’s rejuvenation will come in the form of demolishing dilapidated buildings, enlisting authorities like police and firemen to help regulate everyday life, improving public transportation systems.
The report comes courtesy of Bloomberg which notes further that a Washington D.C. envoy will travel to the largest city in Michigan and its own respective officials to iron out any details. The delegation will be “led by Attorney General Eric Holder, Housing and Urban Development Secretary Shaun Donovan and Transportation Secretary Anthony Foxx.”
Director of the National Economic Council Gene Sperling said in a statement “We’re going to continue to support the efforts under way in Detroit and ensure the federal government is an active partner in supporting the revitalization of the city.”
Detroit, notoriously deep in debt after filing for the largest U.S. municipal bankruptcy back in July, has its roots deeply intrenched in the sprawling ecosystem that is the United States having once acted as the cradle of the American auto industry. Once a burgeoning world-class city with a dense population of 1.8 million, Detroit’s negative population growth stands at around 700,000 and dwindling, more than half of what it was during its prime.
It’s important to note that this isn’t a bailout as “there is no pathway for a federal bailout of the city.” Rather, the money will come from grants courtesy of private donations, idle funds from already-existing programs while not a single cent will come from Congress. A tentative plan allots grants of $65 million and $25.4 million to help raze or refurbish buildings, $25 million will be expedited in order to bolster police and fire civil services, and $150 million will be put towards demolitions alone.
For the latest information regarding the financial crisis plaguing Detroit stay tuned to BostInno.
