Surprising Solutions for a Bankrupt City

Teddy Roosevelt's three-barrelled rifleDetroit filed for bankruptcy Thursday, becoming the largest city in America to do so. The city of 700,000 people is struggling with a $380 million deficit and more than $14 billion in debt.

But the great recession was not particularly choosy in selecting its victims. Cities across the country have faced rising deficits and, in many cases, looming bankruptcy. Here’s a look at the unorthodox measures taken by some cities to stop the flood of red ink.

Auction off Roosevelt’s rifle
Harrisburg, the financially troubled capital of Pennsylvania, is facing $500 million in debt. Among the city’s bureaucratic missteps was purchasing $8 million in memorabilia for a museum that never was built. Now, the city is hoping to turn that mistake into cash. Harrisburg is auctioning off its collection of 8,000 Wild West items. Also in the haul: a rifle once owned by Theodore Roosevelt and a shirt worn by World War II general George Patton.  The Patriot-News reports that the sale of the items is expected to bring in about a quarter of what the city initially paid.

Welcome Zappos
Cities are hoping private investment can help fill the void in public spending. Internet entrepreneur Tony Hsieh has injected hundreds of millions of dollars into Las Vegas as the city works its way out of the devastation wrought by the economic collapse. Hsieh is leading a $350 million project to revitalize the city’s downtown and is relocating his online shoe store, Zappos, to Las Vegas.

Pray
The mayor of Lipscomb, Alabama is hoping God will help cover the city’s mounting debt, the local news site AL.com reported in May. Facing more than $600,000 in debts, Mayor Lance McDade asked residents at a city council meeting to pray for the city. ”So we ask for wisdom and ask for divine intervention, and of course we do solicit your support and your prayers, and if anyone has any ideas, we are open to those ideas,” McDade said. “Again, we pray for the city of Lipscomb.”

 

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