Proposition N = "Negro Removal"
At the core of Prop N was a $250 million bond that Mayor Duggan wanted, to continue demolishing blighted homes via his scandal-ridden and incompetent Land Bank Authority. So after overtaxing the poorest residents $600M he had the balls to come back and say "Too bad, we already spent the money," and then turns around and wants another handout of $250M to funnel to his buddy contractors through the Land Bank? After people were foreclosed out of their homes due in part to being overtaxed, they want to hit Detroiters with another tax on their property? It's not hard to see this as yet another implement of gentrification or "negro removal" at worst, or at best another example of Duggan corruption.
But Detroit should not even be demolishing large swaths of housing anymore—you can't "demolish" blight, which is an economic condition. We've known that for decades now. The Land Bank needs to be refurbishing a lot more of these houses so that families can live in them...that was *supposed* to be their mission, remember?
Now under this economic model, Detroit—once the American capitol of black home ownership, and still majority black—is being transformed into a landlord's paradise, and reducing the stock of single-family homes is only helping outside investors, not long-time residents. The more blacks forced out via foreclosure, the more gentrification takes root as homes that have been in families for generations get sold to outside flippers and landlords. Those who do manage to stay are being transformed from homeowners to renters—sometimes in the very same home they used to own! This signals a loss of black economic power, not an improvement.
These old houses are usually the only form of "inherited black wealth" that exists...but the Detroit Land Bank Authority (and Detroit Future City) is a shell game that is being used to rig the Detroit real estate market for Friends of Duggan and rich investors, and Proposal N was a necessary component of the scheme. Because it's an *authority* and not an in-house city department, they always claim the city doesn't have any control over the DLBA when something is amiss.
Agnes Hitchcock is the leader of the Call Em' Out Coalition fighting against Prop N, and to make Duggan compensate Detroiters hurt by the $600 million overtaxation scandal. She explains that taking a home seized from a black homeowner for a couple thousand in unpaid taxes and auctioning that home via the Land Bank to white newcomers for 25% of its value (ironically, little more than what was originally owed in taxes), and then providing restoration incentives and grants to the new white owner has the effect of negro removal.
In July of 2020 Duggan got his blight bond proposal approved for the ballot by City Council in a 5-4 vote, and guess who cast the deciding vote in favor—federally indicted Gabe Leland.
https://www.freep.com/story/news/local/michigan/detroit/2020/11/24/city-council-overtaxed-detroit-homeowner-duggan
He keeps trying to make this go away, with paltry little attempts that are designed more for good headlines than actually solving the issue. Why? Because he is about to run for reelection in 2021. City Council seats are coming up for reelection as well. I was surprised to see them actually show some spine and vote his compensation plan down—however they will probably do just like they did on Prop N, and come back in some closed meeting and approve it. Again, that sort of "play" sparring looks good for reelection time, because both Council and the mayor get to look like they are strong fighters for the people, rather than just greasing each others' palms.
But Detroit should not even be demolishing large swaths of housing anymore—you can't "demolish" blight, which is an economic condition. We've known that for decades now. The Land Bank needs to be refurbishing a lot more of these houses so that families can live in them...that was *supposed* to be their mission, remember?
Now under this economic model, Detroit—once the American capitol of black home ownership, and still majority black—is being transformed into a landlord's paradise, and reducing the stock of single-family homes is only helping outside investors, not long-time residents. The more blacks forced out via foreclosure, the more gentrification takes root as homes that have been in families for generations get sold to outside flippers and landlords. Those who do manage to stay are being transformed from homeowners to renters—sometimes in the very same home they used to own! This signals a loss of black economic power, not an improvement.
Agnes Hitchcock is the leader of the Call Em' Out Coalition fighting against Prop N, and to make Duggan compensate Detroiters hurt by the $600 million overtaxation scandal. She explains that taking a home seized from a black homeowner for a couple thousand in unpaid taxes and auctioning that home via the Land Bank to white newcomers for 25% of its value (ironically, little more than what was originally owed in taxes), and then providing restoration incentives and grants to the new white owner has the effect of negro removal.
Not to mention that despite Prop N's bond pricetag of $250M, Detroiters will end up paying twice that by the time it is retired, thanks to the fact that the bond has a variable interest rate, the way the bond market is looking, the uncertain economy, and to Detroit's bond rating status still being "junk" five years after the bankruptcy:
“This to me looks like it's fraught with disaster,” one analyst and bond broker said. “Just because you have access to the money because it’s cheap money doesn’t mean you should grab it unless you have all your ducks in a row.” Municipal bonds with such high interest rates "could charitably be called high yield," another market strategist said, "while others would call them junk bonds."
Duggan has told us that the bond proceeds will fund sufficient demolitions to "get every vacant house out of every neighborhood" by 2025. Well Mr. Mayor, we are watching, and we will believe it when we see it.
https://www.freep.com/story/opinion/columnists/nancy-kaffer/2019/09/20/duggan-bond-demolition-blight
But with the rate at which Duggan's other gentrification policies (and overtaxation scandals) have been causing and continuing the home foreclosure crisis in Detroit, there is no way that demolition or renovation could outpace the rate of vacancy...unless his plan is to replace foreclosed-on black residents with new white residents. WINK, WINK.
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| This is your biggest campaign promise ever, Duggo... We're going to hold you down to this one. |
The first time Duggan tried to get the $250M blight bond put on the ballot, it had to be approved by City Council, but citizens flooded Council and forced them to reject Duggan's proposal, because of his history of mishandling demolition funds, use of contaminated fill dirt, and the overall corruption and incompetence of the Land Bank. The vote was 6-3.
https://detroit.curbed.com/2019/11/20/20974089/detroit-demolition-program-duggan-city-council-reject
In July of 2020 Duggan got his blight bond proposal approved for the ballot by City Council in a 5-4 vote, and guess who cast the deciding vote in favor—federally indicted Gabe Leland.
Councilwoman Lopez went on the show "Redline" on 910AM the next day (she was one of the NO votes) and she inadvertently revealed that the rushed vote on this measure *just so happened* to take place one day before the Auditor General was scheduled to release his report on the City of Detroit's fiduciary responsibility. The audit was expected to be very critical of the Duggan administration's handling of money, and the demolition program.
Now tell me that's a coincidence! As soon as he found out that report was coming, Duggan moved as fast as he could to get Proposal N rammed through council before public sentiment turned against it again. And Brenda Jones could've refused to table the matter since there was so much public opposition to it the first time, but she didnt. And this time, with the pandemic moving all "public" meetings to online, that was a handy way to exclude those voices that spoke against it last time. Jones' council is weak, and she is a Dugganite.
This article details the Land Bank audit that was released in July:
Here is a brief breakdown of Proposal N's final format, put together by Councilwoman Lopez's office:
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| Click to enlarge |
...Not to mention that with interest, we will be paying more like $500M rather than the $250M advertised. It's a scam. But Duggan sees tearing down houses as a crucial part of his image to black Detroit voters, who in his mind only care about two issues: keeping the streetlights on, and getting rid of blighted houses on their block. So as long as one can keep up appearances in those two areas, one can theoretically be reelected however many times one wants.
The Free Press also came out endorsing a "NO" vote on Prop N in October:
https://www.freep.com/story/opinion/editorials/2020/10/20/vote-no-detroit-proposal-n-november-election
https://www.freep.com/story/opinion/editorials/2020/10/20/vote-no-detroit-proposal-n-november-election
Yes, Duggan later announced a compensation plan to placate the victims of the $600M overtaxation scandal, but it was a joke.
It only addresses the tax over-assessments that were made pre-2014 (that is, under the Bing administration, not his own). It offers 50% off the price of a new Land Bank home to those who lost their homes through foreclosure due to overtaxation, but I can't figure out how 50% of a broke-ass Land Bank house compensates for the loss of 100% of a house you already owned. Most of the people in this situation are 65 and older, on a fixed income, and already had their pensions stolen during the city's bankruptcy by Duggan's "Grand Bargain," so they ain't exactly trying to get into a new mortgage like that—and most of them probably wouldn't be able to qualify for one anyway! Not to mention the plan pits affected residents against others who also need the programs. It's just another Duggan sham, and another slap in the face. He could have just admitted wrongdoing and offered a real tax rebate for people, but he is a coward.
Something else I learned is that local real estate oligarch Dan Gilbert put $180,000 of dark money behind the Prop N push (mostly funding advertising, I believe), confirming my suspicion that he had an interest in this all along, and it also helps explain why Duggan wanted Quicken Loans employees to "help" count ballots for the Detroit City Clerk...
After Prop N passed in the November 2020 election, Duggan came back for another shot at a compensation package to resolve the $600 million overtaxation scandal:Something else I learned is that local real estate oligarch Dan Gilbert put $180,000 of dark money behind the Prop N push (mostly funding advertising, I believe), confirming my suspicion that he had an interest in this all along, and it also helps explain why Duggan wanted Quicken Loans employees to "help" count ballots for the Detroit City Clerk...
I later found out that Duggan had city workers removing any "Vote No on N" signs they saw on city property (like medians), while of course leaving other campaign signs alone. Imagine the potential backlash if Duggan had been caught ordering city employees to remove John James campaign signs...juss sayin', he would never have done that.
https://www.freep.com/story/news/local/michigan/detroit/2020/11/24/city-council-overtaxed-detroit-homeowner-duggan
He keeps trying to make this go away, with paltry little attempts that are designed more for good headlines than actually solving the issue. Why? Because he is about to run for reelection in 2021. City Council seats are coming up for reelection as well. I was surprised to see them actually show some spine and vote his compensation plan down—however they will probably do just like they did on Prop N, and come back in some closed meeting and approve it. Again, that sort of "play" sparring looks good for reelection time, because both Council and the mayor get to look like they are strong fighters for the people, rather than just greasing each others' palms.
