Detroit City Council OKs contract with law firm Miller Canfield

Financial Advisory Board says city could be days away from emergency financial manager


DETROIT – The Detroit City Council on Tuesday passed a contentious law firm contract to help get funding from the state as the city continues to reel in a cash crisis.

By a vote of 5-4, the City Council agreed to go ahead with the $300,000 deal with firm Miller Canfield. Detroit Mayor Dave Bing had hired the firm for advice on city legal issues.

The contract was one of the milestones the city had agreed to with the state in order to get $30 million in escrow fund money.

Read: Milestone agreement between Detroit, state

Council had previously struck down the contract 8-1.

Both Detroit Mayor Dave Bing and Michigan Treasurer Andy Dillon had been working to get City Council to OK the contract.

Their decision comes one day after the Financial Advisory Board unanimously voted to support starting the clock on whether an emergency financial manager is needed in the city.

The city's deficit is expected to be $326 million by the end of the year and it is expected to balloon to $376 million in 2013.