Bankruptcy Judge Orders City And Counties To Mediation Over Water Department

April 17, 2014, 11:13 AM

Judge Steven Rhodes has appointed a mediator to help resolve the dispute between the City of Detroit and suburban counties over the creation of a regional water authority that could help provide critical cash for Detroit’s bankruptcy restructuring, Nathan Bomey reports in the Free Press.

Significantly, Rhodes signaled a desire for Detroit, and Wayne, Macomb and Oakland counties to reach a deal to spin off the city’s water department to a new regional organization governed collectively by all the political units.

“This bankruptcy offers a unique opportunity for the creation of that regional authority and if we do not take advantage of this unique opportunity, the opportunity will in all likelihood be lost forever,” Rhodes said.

Rhodes granted Wayne County’s motion to appoint a mediator to lead negotiations between the parties, following a breakdown in talks in recent weeks and following Detroit emergency manager Kevyn Orr’s decision to pursue a potential privatization of the department.


Read more:  Detroit Free Press


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