Story Archive

Morally Bankrupt, Too

The bankrupt city of Detroit, Mich., anxious to revitalize crumbling neighborhoods, “transformed eyesores” — houses the city took over due to delinquent taxes — “into gleaming gems” that people might actually want to move into. The Detroit Land Bank spent $8.7 million of federal tax money earmarked to fight blight to revitalize just 30 homes, for an average remodeling cost of $290,000 each, and then sold those homes for $2 million, or an average of $66,666 each. Even then, most of the buyers were given the down payments to make the purchases. “I think we have some stabilized neighborhoods” due to the effort, said Lisa Johanon, Executive Director of the Central Detroit Christian Community Development Corp., which did some of the renovations. “It’s just what it takes right now to get Detroit on its feet.” (RC/Detroit News) ...To save a city that threw enormous sums of money down the toilet, simply throw someone else’s money down the same toilet.