EM Detroit: Available Assets To Sell

Detroit - Emergency Manager

Available Assets To Sell

Below is a summary of a proposal made by Kevyn Orr to the creditors of the city of Detroit on June 14, 2013 regarding other assets that the city has to assist in solving the financial crisis. The city is still evaluating how best to utilize these assets. These items are discussed on page 83 of the original document. The purpose of this post is to give you a simple summary of this section of the plan. Here is copy of entire plan.

Detroit Water And Sewer Department

The city is exploring spinning off its Water and Sewer Department and creating a Metropolitan Authority that would operate it. As this occurs the city is expected to save $9-million per year. The new authority would be owned by the city and other municipalities in the greater metropolitan area.

Detroit-Windsor Tunnel

The city owns the U.S. portion of the tunnel and it is not likely that it can easily or wisely be converted into cash.

Belle Isle Park

It is anticipated the State of Michigan will lease the park resulting in saving the city $6-million each year in operating cost.

Detroit Institute of Art (DIA)

It is estimated the market value of the assets held at the DIA is between $12 - $15 billion. Here is a blog referring to a Detroit News article where the value above is mentioned.... http://lstrn.us/1pJjBA3

City Owned Land

It is estimated the city owns 22 square mile of land within the city limits having little value.

Parking Garages/Lots and Meters

The city and the Detroit Building Authority own approximately 10,000 parking spaces and 3,400 on-street meters. The city intends to market these parking related assets to private investors.

Joe Louis Area

The owners of the Detroit Red Wings are looking to build a new arena for the hockey team. The city is contemplating what to do with the arena once this occurs.