Just two days after Detroit Mayor Kwame Kilpatrick announced major cuts to help eliminate a growing deficit, allegations are surfacing about the city's lease of a luxury sport utility vehicle, Local 4 reported.

The 2005 Lincoln Navigator, with a price tag of $57,000, was leased by the city through the Bob Maxey Lincoln-Mercury dealership on Jefferson Avenue in Detroit.

Maxey told Local 4 that in December, a police officer came to the dealership inquiring about leasing a Navigator. Maxey said the officer told him he had a budget and wanted to sign for a one-year lease. An agreement was made on a two-year lease for the amount of $24,995, according to Maxey.

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LEASE AGREEMENT: Page 1 | Page 2 | Page 3
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ARTICLE: Mayor: Detroit Has Reached 'Dire Moment'

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Local 4 learned that the lease deal has the words "mayor's lease" on it. Kilpatrick would not answer questions Friday regarding allegations that his wife, Carlita, had been driving the vehicle.

Deputy Mayor Anthony Adams denied that Carlita Kilpatrick ever drove the SUV.

"That vehicle was not used by the first lady, period," Adams said.

City officials claim the SUV was purchased to use in police undercover operations.

"To infiltrate that world, you have to look like a drug dealer," said James Tate, second deputy police chief.

Police said when local news organizations started asking questions about the Navigator, they decided it would no longer be safe to use it for undercover work.

When asked where the vehicle is now, Tate said, "It's still within our fleet. I don't know where it is exactly."

Tate said general funds were not used to purchase the SUV, but he wouldn't say if the money came from drug forfeiture proceeds, Local 4 reported.

An undisclosed source told Local 4 that other police departments typically work out shorter-term arrangements with car dealerships when leasing a vehicle for undercover work. The city of Detroit is apparently stuck with a vehicle it is no longer using until December 2006, the station reported.

Maxey said the price the city paid for the lease is a competitive rate.