Who doesn’t love it when a plan starts to come together? Detroit’s economic recovery may not be a wish upon a star anymore, especially if private businesses and charity groups continue to come together to support the ailing city. Reuters reports there is a new player in the game- JPMorgan Chase and Co. According to recent reports issued yesterday, the mega bank has agreed to provide the city with $100 million over five years to stimulate economic growth and development.
How will the JPMorgan’s plan work?
The bank has been working with city and community leaders over the past months to develop their plan to help the city. The plan will provide $50 million to finance capital projects in struggling Detroit neighborhoods. It also will provide another $25 million to help improve the blight of some of its worst residential properties. The last $12.5 million will be used for job training.
Reuters also reports JPMorgan would allocate another “$7 million to provide support for Detroit’s small business clusters and a $5.5 million investment in strategic initiatives, such as a light rail system.” Much of the job training and workforce development will be provided by nonprofit group volunteers in the city.
“With this investment, we are putting our resources and expertise to work to help Detroit chart a course back to economic prosperity,” JPMorgan Chase Chairman and Chief Executive Jamie Dimon said in a statement. “We have been in Detroit for a very long time, and we’re here for the long term.”
JPMorgans assistance added to other support from the state
In addition to the funds offered by JPMorgan, state leaders are also working to convince the state government to provide another $195 million to reduce the cuts pensioners must agree to and to save the artwork in the city. Proposals have also been made to Detroit’s three automakers for help to raise another $100 million.
The U.S. Bankruptcy Court has announced they will review Detroit’s bankruptcy plan beginning on July 24. It is the hope of Kevyn Orr, Detroit’s emergency city manager, that Detroit can emerge from the largest Chapter 9 Municipal bankruptcy by the end of this year, at which time Orr will resign from his post and give the reins of the city over to other financial advisers and leaders.
Businesses creatively offer solutions for the ailing city
JPMorgan Chase and other companies in the Detroit area have stepped up to provide much needed leadership and funds to help Detroit. The Detroit bankruptcy has allowed city leaders and companies to pull together and creatively help save a city.
Efforts by each of these groups proves that if the state and federal government will simply stand aside and let people and individuals close to a situation the opportunity to act, it’s amazing what a group of people who care about something can accomplish. Here’s to hoping the state and federal government will stay away and let the people who got this city into this mess help themselves find a way out.
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