| |
Detroit
City
Council
turns
down
$15.3
million
settlement
offer
from
Greektown
Casino
DETROIT
(Tell Us
Det) -
City
council
refused
to
approve
a
settlement
agreement
that was
reached
last
week
between
the
debtors'
attorneys
and the
City of
Detroit
negotiators.
Mayor
Dave
Bing
issued a
statement
in
response
to the
council'sl
decision
to
reject a
proposed
settlement
saying,
"the
City
Council
has
rejected
a
proposed
settlement
that
would
have
paid the
City $8
Million
dollars.
It is
undisputed
that any
payment
to these
investors
would
violate
the
United
States
bankruptcy
rules. I
will ask
the
Council
to
reconsider
their
vote and
not
squander
$8
Million
dollars
that
this
City so
critically
needs.”
The
agreement
would
give the
city a
$15.3-million
and free
the
casino
to seek
a 5% tax
break
from
state
regulators.
$8
million
is a net
amount
that
would be
received
from the
total
$15.3-million
settlement.
Of the
settlement
amount,
$3.5
million
would be
paid to
the city
within
two days
after
the
judge in
Greektown's
Chapter
11
proceeding
enters
the
confirmation
order to
approve
its exit
plan.
The rest
would
come
after a
dozen
other
matters
are
settled,
including
the
completion
of a
revised
development
agreement,
according
to the
settlement
filed
with the
bankruptcy
court.
The
original
development
agreement
required,
among
other
things,
that the
casino
build a
hotel
and hire
a
certain
percentage
of
Detroiters.
The
council
has
until
Oct. 29
to
reconsider
its
vote. |
