Bing administration accused of holding ack on much-needed demolition spend.
It is two years, almost to the day, since we labelled Detroit as Demolition Central following a commitment from Mayor Dave Bing of a much-needed cash injection to fuel regeneration of the Motor City.
That demolition drive has since been wracked with disapoointments with delays caused by unforeseen asbestos and missed milestones.
But now Mayor Bing’s administration stands accused of sitting on a $20 million war chest that was designed to fund further demolition works in the city.
City Council President Pro Tem Gary Brown said Monday he’s angry that Mayor Dave Bing’s administration has allowed the money – which state law says can be used for demolition only – to go unspent for years, especially at a time when Detroiters are fleeing the city in droves because of abandoned eyesores, crime and drastically reduced services.
“It’s unthinkable that this money is just sitting there,” Brown said. “The sad part is, you have neighbors who live next to hulking, abandoned houses.”
The money is part of the Fire Insurance Escrow Fund, created by Public Act 218 in 1956 that requires insurance companies to give municipalities about $7,000 for each burned-out house to be used to reimburse the owner for razing the dwelling. If an owner neglects the property, the city can use the money to tear down the charred house.
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