Detroit Gets Approval To Use $120 Million Loan For Police, Fire

DETROIT (WWJ/AP) - Bankrupt Detroit has been given approval to move forward with a $120 million quality of life loan to help improve city services.

Federal Judge Steven Rhodes on Wednesday approved the loan brokered with Barclays. He says Detroit can use the money to meet the needs of people living in the city.

Brad Erens, an attorney representing Detroit, says the city needs to hire more police and firefighters, repair public safety vehicles, build new precincts and repair firehouses. About $35 million will go to remove blighted homes. The city has filed a list of projects that require $179 million in funding.

"Detroit retirees have objected to the loan, noting that none of the money was earmarked for pensions," reported WWJ's Charlie Langton. "But the judge said the city is in urgent need to start repairing the city."

Judge  Rhodes will also solicit experts to assist him in approving what will be a very complicated final bankruptcy plan.

The city has said the loan will be paid off with available funds after the court approves its exit plan from the nation's largest municipal bankruptcy.

State-appointed emergency manager Kevyn Orr on Monday filed an amended plan of adjustment. Hundreds protested the plan Tuesday.

[Detroit Bankruptcy: Complete Coverage]

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