(WXYZ) - The Detroit City Council late Friday afternoon gave approval to the city taking out a $120 million Debtor In Possession loan to emerge from bankruptcy as early as this fall.
The vote on the council was 6-3 with no votes coming from Council President Brenda Jones and members Mary Sheffield and Scott Benson. President Jones said after the meeting her concerns are over the interest rate and whether any of the money will be used to pay consultants who have helped restructure Detroit.
The loan still has to be approved by the Michigan Emergency Loan Board in Lansing.
Bill Nowling, a spokesman for Emergency Manager Kevyn Orr says the money will kickstart the city after bankruptcy to pay for improvements in police, fire, information technology and to improve 350 Detroit parks that have been neglected for years.
The city also has a pending deal to settle "Swaps" or loans that were taken out in 2005 to make payments into Detroit employee pension funds. Both of these free up $15 million a month in revenue from the three Detroit casinos that goes into City of Detroit operations.