Detroit City Council approved a proposed $120 million loan from Barclay's Friday. The cash would be used to improve city services like public safety and blight removal.
In a 6-3 vote, representatives Brenda Jones, Mary Sheffield and Scott Benson voted no.
“This $120 million is a way of kick-starting restructuring,” Detroit’s Chief Operating Officer Gary Brown told the council. “Obviously we can’t wait until we exit bankruptcy to start restructuring city government.”
Two prior agreements with Barclays — one to borrow $350 million and a second for $285 million — fell through after U.S. Bankruptcy Judge Steven Rhodes rejected the city’s plan to use a large percentage of the loans to pay off two banks and terminate a troubled pension-related debt.
Bankruptcy Judge Stephen Rhodes and the state's Emergency Loan Board still need to approve the loan before Detroit sees any moolah.
Previous Coverage:
City Council Will Wait Until 4PM Before Considering Barclays Loan
