Friday, May 18, 2012

Detroit Mayor Says He Did Not Support Sending Legal Letter Aimed at Invalidation of Corporate-backed Financial Agreement

Detroit City Council members on consent flap: Mayor Dave Bing is not telling truth

11:02 PM, May 17, 2012
By Matt Helms and Suzette Hackney
Detroit Free Press Staff Writers

Despite his denials, Detroit Mayor Dave Bing supported sending a letter to the governor challenging the legality of the consent agreement that the city and state entered into last month, some City Council members said today.

Three council members who were at a meeting last week between the council, Bing and city lawyers said the mayor made it clear he approved of sending a letter from the Law Department challenging the consent deal that granted the state significant power over Detroit's finances -- and the conclusion by city Law Department chief Krystal Crittendon that the agreement violated Detroit's city charter and Michigan law.

"At one of the meetings, (Bing) said, 'We got this agreement, and the state is giving us nothing,' " said one person who was at the meeting who would speak only on condition of not being named. " 'I'm with you 100%.' He said that."

But Bing insisted today that he never authorized Crittendon to send the letter to Gov. Rick Snyder that declared the April 4 consent agreement "void and unenforceable." Crittendon said the city could not enter into the agreement because the state owes $4.75 million to Detroit for water service to the state-owned Michigan State Fairgrounds and, more important, $224 million in state revenue sharing.

Bing's office issued a statement Thursday afternoon saying that he was aware of the letter, but he still insisted: "I did not authorize, nor do I entirely agree with, counsel's opinion of the validity of the financial stability agreement."

Bing's spokeswoman Naomi Patton declined to comment further beyond Bing's prepared statement.

But some council members responded to Bing distancing himself from the letter on Thursday, first at an event at Cobo Center, and later in his prepared statement.

Asked whether she thought Bing was being honest, Councilwoman Saunteel Jenkins said, "No."

"I will say it's unfortunate people are not always truthful about issues that are this serious," Jenkins told the Free Press on Thursday, declining to comment further.

Two other council members said they were flabbergasted to read Bing's reaction to a Free Press report Thursday that revealed the letter.

A council member who was at the closed sessions said Bing was much more supportive privately, and Bing's denial of that support could "change everything" in how the council works with the mayor on implementing the consent deal -- or potentially challenging it.

"I know what I heard with my own ears, and that's what makes me disappointed in the mayor's response," said the council person, who would speak only on the condition of not being named.

Another council person who was at the closed sessions said Bing's assertion contradicts what he said at the meeting.

"The mayor was in full support of sending that document and meeting with the governor to discuss it," said the council member, who also did not want to be named. "He sat right there with the council members and expressed his support. It's disingenuous to try to distance yourself from it when you were at least in line with sending the letter."

The fallout from the letter continued to grow Thursday. Representatives from the offices of Snyder and state Treasurer Andy Dillon said they don't believe Crittendon's missive will pose a serious challenge to the consent agreement, which was approved by Bing and a 5-4 vote of the City Council.

But some council members who spoke to the Free Press said the Law Department may go to court to seek summary judgment to determine whether Crittendon's concerns -- that the consent deal violates the city charter and state law by entering the city into contracts with a state government in serious arrears to the city -- are enough to invalidate the consent deal.

Snyder spokeswoman Sara Wurfel said the potential of a new city legal fight over the deal won't change Snyder's support for the agreement.

"We feel very strongly that it was entered into voluntarily by all parties," Wurfel said. "It is absolutely critical for being able to move forward for the city of Detroit and its residents."

Wurfel said Snyder prefers "to stay focused on moving forward" despite litigation she described as "rampant."

Councilman James Tate said that, while he is focused now on the budget and moving the city ahead, "I do think eventually it will play itself out in the courts."

Crittendon would not comment on whether Bing and the council agreed to send the letter to Snyder. She also would not disclose whether she will advise city officials to pursue further legal action based on her opinion that the consent agreement violates the city charter.

Crittendon told the Free Press on Wednesday that she drafted two letters -- a privileged and confidential document to her client, whom she would not identify, and a letter to state officials on May 11 -- challenging the legality of the consent agreement.

But Crittendon had weighed in on the legality of the agreement beforehand, at the request of the council.

Three days before the council voted to approve the consent agreement, Crittendon, in a confidential 10-page opinion, wrote to the council that the agreement could be tossed out if challenges to Public Act 4, the state's emergency manager law, are successful.

Crittendon's written opinion, obtained by the Free Press on Thursday, stated that the consent agreement curtails powers of the mayor and City Council, a clear violation of the city charter, and that the agreement likely wouldn't survive if Public Act 4 is repealed.

Members from Bing's administration -- namely Deputy Mayor Kirk Lewis and Chris Brown, Bing's chief operating officer -- negotiated the consent agreement on behalf of the city. Bing was hospitalized during much of the negotiations and appointed Lewis, who was his chief of staff, to deputy mayor.

Though Crittendon offered her legal opinion, the administration opted to hire outside attorneys to help ultimately reach a deal.

Contact Matt Helms: 313-222-1450 or mhelms@freepress.com. Contact Suzette Hackney: 313-222-6678 or shackney@freepress.com

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