Property Values on Upswing

No surprise to people who live Downriver, but we have confirmation that property values are going up just about everywhere in our little neck of the woods. Only River Rouge, Ecorse, and Lincoln Park are not invited to the party. You can see the News-Herald reporting on it here.

The article points out that rising property values do not proportionately increase property taxes, which is good for homeowners but bad for local government. This flaw in Michigan's local government finance system has been discussed in depth in this blog before, and it needs to be addressed before every city Downriver is under a state controller. While I don't want to pay taxes either, cities and townships will continue to have budget problems even with rising values.

Link: http://www.thenewsherald.com/articles/2015/03/29/news/doc55159d97e4f17107086668.txt?viewmode=fullstory

Suspicious Package Closes 33rd District Court

33rd District Court in Woodhaven has been closed due to a suspicious package.  Although these types of incidents usually prove harmless, you would probably be well advised to avoid the area altogether until it is cleared up.

Taylor Home Near All of the New Movie Screens

See update at end.

With all of the discussion last week about new movie theaters coming to Taylor (see here and here), we thought maybe one of our intrepid readers may be interested in buying a home close to all of the cinema excitement.  So here is a listing for that person.

13650 Pardee, Taylor, MI  48180
1 bedroom, 1 bath, 3 car garage
$64,900

This listing is instructional in how NOT to use photos to promote your listing.  See below after the jump.

New Emergency Manager Doesn't Understand Municipal Finance

I hate to say someone making $150,000/year in taxpayer money does not understand a key part of his job, especially when Lincoln Park residents are affected by his decisions, but it's true here.

New Emergency Manager Alan Coulter gave an interview to the News Herald on his second day on the job.   Among his observations was that he did not know how much more cost-cutting could be done, but that he thought a key was to bring crime under control and grow property values.  He reasons that the increased property values will raise the tax base and catch up to costs as time goes on.

The problem with that reasoning is the peculiar (in Michigan) cross-effects of Proposal A and the Headlee Amendment, both products of the 1990s.  Regular readers of this blog will remember this discussion from previous posts.  The point is, property tax revenues can go up by inflation or five per cent, whichever is less.  And, as property values go up, the overall tax rate goes down a fraction.  So, while property values can go up and up, tax revenues from them in Lincoln Park (and everywhere else in Michigan) are going to creep slightly higher falling further and further behind inflation each year.  This is only counteracted if you have a lot of undeveloped land, which Lincoln Park does not.

But Coulter does not understand this.  Or at least he did not on his second day on the job.  You can't blame the guy, but it is an issue that other qualified people who were not appointed would know.  Betcha this was not in his EM orientation packet from the Governor's office.  He's probably a smart guy and will learn it soon, though.  Then it will be on to Plan B.

On the other hand, Coulter should be commended for saying he was going to work with the elected mayor and council rather than just make all of the decisions himself (which he is allowed to do under the law).  Even if the advisory-committee training wheels (like in Ecorse today) are put on Lincoln Park when he leaves in 18 months or so, these are the people who will eventually have to assume responsibility for keeping the city out of further trouble down the road.

BTW, he is an appointee of the state who are paying his salary.


Link:
http://thenewsherald.com/articles/2014/07/09/news/doc53bc393e7b28e334710141.txt?viewmode=fullstory

http://downriverhomes.blogspot.com/2014/01/a-broken-system-of-funding-local.html

Update: Coulter is Lincoln Park Emergency Manager

Brad Coulter

Brad Coulter has been named by Governor Rick Snyder as the Emergency Manager in Lincoln Park.  He comes from a background in the private sector and is known as a corporate turnaround expert.

We posted earlier this week that this move was rumored to be imminent.  As it turned out, the announcement came out later that same day.

We must confess some curiosity as to why Lincoln Park's City Council took the unusual step of asking for an Emergency Manager from the state when they probably could have operated under a consent decree and retained local control.  Instead, the local elected leaders voted to just abdicate their authority and give up.  For most of them, they were there and voting when the deficit budgets were approved in prior years, and now they will not be making the tough choices to fix the fiscal carnage.

We don't approve of that sort of action, and hope they will not continue to draw a paycheck for what is now a symbolic role in their local community that they served so poorly.

In any case, good luck to Mr. Coulter and the citizens of Lincoln Park.

Link:
http://www.thenewsherald.com/articles/2014/07/05/news/doc53b57476cc69c446412338.txt?viewmode=fullstory

Previous post: http://downriverhomes.blogspot.com/2014/07/breaking-lincoln-park-gets-emergency.html

State Road Projects Ignore Downriver

The Michigan Department of Transportation list of road repairs, all $114,942,610 of it, has been released.  And, except for a small project in Allen Park and one in Riverview, it virtually ignores Downriver.  

Yes, there is a $3 million appropriation for Allen Road in Woodhaven, to fix the railroad crossing that every day ties up trafffic and causes ambulance and police nightmares.  But that money is nowhere near enough to complete the project and will possibly never be accessed.  It's like me promising my 15-year old $5,000 towards a new Escalade, but he needs to find the rest.  If he's driving a Cadillac, it won't be because of me.

By the way, the original request was for $5 million to rework utilities at the crossing when they widened it.  I guess they have enough to move half a pipe.

The Michigan legislature came up with this list, which oddly enough allocates virtually all of the money to districts represented by Republican legislators who control both houses of that legislature.  So they spent it on their own districts in high-traffic locales as Clyde Township and Gogebic County, both of which get projects more expensive that the two Downriver improvements.  

The potential Allen Road grant has only come after continuous protests from leaders and citizens over the problems caused by the train crossing, including petitions, signs, and an active Facebook campaign.  Although Rep. Somerville is taking credit for it, the real credit should go to Woodhaven Mayor Pat Odette who has been a leader in the fight for a new train crossing.

Shame on the Republicans for putting politics over good government.





Link:
http://www.scribd.com/doc/232386603/MDOT-Road-Project-List

Breaking: Lincoln Park Gets Emergency Manager Today

Rumor has it that Governor Snyder will appoint an Emergency Manager for Lincoln Park today.  No details to share, yet.  This move has been expected.

Movie theater Coming Across Street From Another Theater Not Far From Another Theater (Update)

The owners of Southland Mall announced that they will be tearing down the vacant Mervyn's (which I never went to and did not know had closed) and will be building a cineplex movie theater with leather recliners and digital sound and stuff like that.  It will be operated by Cinemark.

That would be great, except for the announcement the day before (discussed in this blog) that MJR would be putting a cineplex movie theater with leather recliners and digital sound and stuff like that at the former Star Taylor/Spotlight location, which is on the other side of Eurkea Road from Southland.

Anybody think the two can operate virtually identical operations across from each other?  I don't.  I'm not even sure that both of them will actually happen, now.

MJR also operates at their Southgate location, a mile or two away.  And I already had my doubts about MJR keeping two places so close together in the long run.




Links:

Previous post:
http://downriverhomes.blogspot.com/2014/07/but-will-it-be-more-fun.html

Freep article:
http://www.freep.com/article/20140702/BUSINESS06/307020112/Southland-mall-new-movie-theater

But Will it be More Fun?

MJR Taylor will take over the old Star Theater location in Taylor, right across from Southland mall.  I will warn you that details are kind of sketchy at this point.

Speaking as someone who lives in Brownstown, it will be nice to have a shorter drive to an MJR theater, but the drive is only a little bit shorter.  Besides, there is is still an Emagine in Woodhaven.

My first thought was to wonder how this would affect MJR Southgate.  Apparently, MJR feels the two locations can thrive together.  At least that is what I would like to think.  An alternate thought would be that the Southgate location lease may be coming due and the Taylor location is cheaper.  I guess only time will tell.

Link:
http://thenewsherald.com/articles/2014/06/30/news/doc53b1eb2323e8b843490878.txt

Downriver Auction Properties Need Diligence Before Bidding

It may be listed as a four-bedroom on zillow, but got torn down last week.

Scott Held from the News-Herald takes a look at some of the recent Downriver listings in the recent Tax Foreclosure Auction from the Wayne County Treasurer.

Apparently, many of them are vacant lots and houses about to fall on themselves.  No big surprise there.  If the property has substantial value, then odds are the owner keeps the taxes up.

My experience with the auction is that there were bargains to be had, but you needed to drive the properties in order to see if they were in the ballpark.  The second round, starting at $500, is easier, but the sensational values are gone by then.

Buyer beware.  Go to the actual place you plan to bid on and find out as much as you can first.


Link:
http://thenewsherald.com/articles/2014/06/27/news/doc53ad8c3e1ef31621771679.txt?viewmode=fullstory

More on Charter School Issues

Yesterday's news about Summit Academy has been followed today by a broader examination of the role of school board members at a charter school.  It is well worth the time to read.

Essentially, board members are responsible, but can be removed if they cause too much of a fuss.  The real power belongs to the management company and the chartering university or school system, both of which can profit handsomely at the expense of the kids they are supposed to educate.

Pictured above are Michigan Board of Education members John Austin and Casandra Ulbrich.  They are quoted int he article from the Free Press as opposed to this type of practice.

Stories of charter school board members being denied basic financial information and being forced off of the board when they persist bode ill for this system.  Board members should have some stability in their post, and should be provided with relevant information about the school they are responsible for.  And if a majority of them want to insist on using vinegar-based cleaning products for some reason, then so be it.  (Read the story for context on that.)

Our children deserve better than this.



Link:
http://www.freep.com/article/20140624/NEWS06/306240042/charter-school-boards

Charters Investigation Spotlights Two Downriver Schools

Foreboding signs coming from Summit Academy

Two Summit Academy schools are the focus of an article in the Detroit Free Press focusing on the problems and financial issues surrounding charter schools in Michigan. 

I will spare you many of the bloody details, but the two founders of Summit Academy also owned companies providing services to the schools, such as construction of buildings.  One woman had a consulting contract with the management company who operated the school, which she was the superindentent of.  In other words, she was being paid to advise herself.

It may be not as directly related to the normal focus of this blog, but the students there are coming from Downriver and they are a part of our community.  I will leave the details up to the Freep.

Link:
http://www.freep.com/article/20140623/NEWS06/306230030/summit-academy-michigan

Breaking News: Update on Lincoln Park Emergency Manager

We will have more complete information later, but wanted to post this update on the situation from the News-Herald. 

Link:
http://thenewsherald.com/articles/2014/04/09/news/doc534432bb7d0bb064363588.txt

Financial Emergency in Lincoln Park

A State of Michigan panel officially found a financial emergency in Lincoln  Park, which is the next step to Governor Snyder appointing an Emergency Manager.

The move is not a surprise.  Lincoln Park officials expect an Emergency Manager (EM) will be coming soon.  Although the city could propose other responses, such as a consent agreement, there does not seem to be any serious opposition to an EM being appointed and taking over administrative duties in the city.

An Emergency Manager could also break existing vendor contracts and union agreements.  Frequently, city employees to have salary and benefit cuts.  Although an EM can suspend the salaries of the mayor and city council, it is not always done.

Ecorse and Allen Park have had Emergency Managers appointed for them recently, with Ecorse recently emerging out of that but with a state oversight board still in charge.  Other Downriver communities may have one coming in the future.

Link:
http://www.thenewsherald.com/articles/2014/04/06/news/doc533ef97fd9fda271040412.txt

Breaking News: A World of Beer is Coming to Woodhaven

A craft beer establishment, World of Beer, is going to be one of the tenants at the former K-Mart site in Woodhaven, it was announced today.

I had previously heard that a Planet Fitness would be moving there, but that idea apparently did not happen.  Instead will be three or so retail and restaurants.  It is reported that the old K-Mart building was in worse shape than originally thought.

A quick peek at World of Beer reveals that they are a craft beer drinking establishment.


Link:
http://thenewsherald.com/articles/2014/04/04/news/doc533ed8c7570da889032921.txt

http://wobusa.com/

Business is Booming in Allen Park

The downtown streets in Allen Park are all about business, and business is booming.

As the News-Herald notes, twelve new businesses opened there in 2013.  That's pretty darn impressive.  You might scoff at the two pawn shops, but the new Thai place on Allen Road is receiving excellent reviews online.  Plus there is a t-shirt place, a muffler shop, Boomer's reopening, etc.

Keep up the good work, AP.

Link:
http://www.thenewsherald.com/articles/2014/03/18/news/doc53275187cef3f913276669.txt?viewmode=fullstory

Fatal Brownstown Fire Provides Smoke Detector Lesson (with video)

A fire claimed the life of a 67-year old woman in Brownstown recently.  Although the fire department arrived within minutes of being called, it was too late to save her.

This tragedy could have possibly been avoided if there was smoke detectors in the house.  There were not.  Hopefully this will inspire you to check your own smoke detectors today and make sure they work.

Here is a helpful video on that:




Link:
http://www.thenewsherald.com/articles/2014/02/24/news/doc530bd74a3d205031993153.txt?viewmode=fullstory

Featured Listing: 47 Anchor, River Rouge

Last week we should you a Grosse Ile riverfront spec house.  Today, we take you to River Rouge for this foreclosure bargain.  We can use it to discuss what to look for in low-end housing purchases.

This is a starter property for someone who wants to quit renting.  You can't get a mortgage for this amount, so you usually have to have cash.  Still, it is a lot better financially than renting in this area.  You come out ahead after maybe two years or so.

Riverview, Grosse Ile Among Safest Places in Michigan

One view of the safest community in Michigan.

It's true, you can't find a safer place to live in Michigan.  No murders or forcible rapes last year in Riverview.  Grosse Ile either.  In fact, Grosse Ile was number one in the whole state, with Riverview coming in tied for eighth.  There weren't any robberies reported in Grosse Ile, either.

Looking at the list, I am thinking that it may have been compiled by zip code.  I will contact the author of the study and find out. Some communities, including Dearborn and Brownstown, are not on the list at all.  Sadly, Lincoln Park is #89 of 102.  Since the list does not include cities of less than 10,000 residents, Melvindale, Ecorse, Rockwood, and River Rouge would not be on the list.

The News-Herald has a story on it with some discussion with those cities.

The list was released by a real estate brokerage company, Mototo.  Obviously it is good news for the Downriver area, especially those two communities.

Link:
http://www.thenewsherald.com/articles/2014/01/29/news/doc52e7ecc8a647a398770498.txt?viewmode=fullstory

http://www.movoto.com/blog/top-ten/safest-places-in-michigan/

Mansion Tuesday: Grosse Ile With a River View is Available

Mansion Tuesday at the Downriver Homes and Real Estate Blog frequently looks at places in Beverly Hills or New York City, places owned by celebrities like Nigella Lawson, Brandon Inge,  Tom Hanks, Drew Barrymore, or Frank Sinatra.

This week, we're going local.  This place is on Grosse Ile, right here in Downriver, Michigan.  Located at 22220 East River Road, it offers a great view of the Detroit River and Canada.  Watch the freighters go by from the comfort of your living room.