Detroit Evening Report: Highland Park mayor declares state of emergency over $24 million debt
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Highland Park Mayor Glenda McDonald has declared a state of emergency as the city faces a financial crisis.
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McDonald announced the move at Monday’s city council meeting after members rejected a request to hire attorneys to represent Highland Park on possible bankruptcy issues. City officials have asked Gov. Gretchen Whitmer to expedite the declaration of Chapter 9 municipal bankruptcy.
Highland Park owes $24 million to the Great Lakes Water Authority (GLWA) but lack the funds to pay the debt.
The city’s situation could lead to bankruptcy or another state takeover that Detroit experienced a decade ago. But one researcher says the city would be better off dissolving and becoming part of Detroit.
Read: Why Highland Park wants to enter bankruptcy
James Tatum says the city could do it without losing its sense of community.
“Maybe Highland Park stays a place, an area that we know as Highland Park. If you have an address that says Highland Park on it, maybe there’s even a post office that’s specifically for Highland Park,” Tatum suggested.
Tatum says voters in both cities would have to approve such a union.
Highland Park has until the end of May to work out a payment agreement with GLWA.
Other headlines for May 2, 2023:
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- General Motors confirms layoffs for hundreds of workers
- Canadian folk singer-songwriter Gordon Lightfoot dies at 84
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