Allen Park sends lay-off notices to the entire fire department

ALLEN PARK, Mich. (WXYZ) - Fire fighters in Allen Park have all been given lay-off notices as the city struggles with budget troubles.

The action followed a contentious city council meeting Tuesday night where officials pointed fingers and blamed each other for the deficit. The motion was approved despite objections from residents, who packed the meeting at city hall. 

A statement issued late Wednesday afternoon said:

"The City of Allen Park is required by law to maintain serviceable levels of police and firefighters. The City is taking the necessary steps to examine every area possible to cut cost in light of the current shortfall of revenue. These efforts include seeking concessions from various bargaining units in the City. With respect to the Firefighters Union, the City must, pursuant to a Memorandum of Understanding with their union, give firefighters thirty days notice for a potential layoff. The thirty day notice went out February 23, 2011. However, it is our hope and prayer that no layoffs will have to take place. Regardless of the current bond debt incurred by the City, the City would still be faced with the same dilemma due to the increased costs of City operations and simultaneous decrease in revenues."

The last sentence of the statement apparently references the controversy over Allen Park's decision to purchase property that was leased to Jimmy Lifton, a Hollywood movie producer who promised new jobs and revenue as part of his film production school.

As revealed in a series of reports by the Action News Investigators, the city agreed to buy the land for more than $25 million when it was valued at only $14 million.

After quibbling with the city over his lease agreement Lifton packed his bags and moved his production school out of the city and Allen Park is still paying off debt from the purchase.

Allen Park Fire Chief Douglas LaFond tells Action News fire fighters agreed to $800,000 in concessions to the city in August of last year. Their contract runs until 2013.