One of the most politically treacherous proposals of Detroit's bankruptcy plan has finally gained approval—a regional water authority.
"Detroit cleared another potential roadblock in bankruptcy court Tuesday, with a deal between the city and Wayne, Oakland and Macomb counties to create a regional water authority," reports Steve Pardo, Robert Snell, and Darren A. Nichols.
"Lawyers for Wayne and Oakland counties told U.S. Bankruptcy Judge Steven Rhodes they will drop their opposition to the city’s bankruptcy exit plan now that a plan has been hammered out for a Great Lakes Water Authority. Macomb County Executive Mark Hackel also backed the water deal."
Here's what the reports have discovered about the terms of the deal so far: "The city will lease infrastructure to suburban communities in exchange for a 40-year, $50 million annual fee and an annual $4.5 million payment assistance fund. It’s not clear exactly how much each county will contribute, but officials said the money already exists within the system and rate increases will be capped at 4 percent over the next 10 years."
The plan still requires approval by the Detroit City Council or Emergency Mayor Kevin Orr must still approve the proposal by October 10.
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