ONE-HUNDRED-TWENTY-FOUR YEARS OF EDITORIAL FREEDOM Wednesday, December 4, 2013
Ann Arbor, Michigan
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GOVERNMENT
Judge rules Detroit is eligible for bankruptcy
BASKETBALL >> INSIDE
Troubled city becomes largest municipal default in U.S. history
ADAM GLANZMAN/Daily
Redshirt sophomore Marshall Plumlee (40) and sophomore guard Nik Stauskas (11) during Michigan’s loss against Duke Tuesday.
HOSPITAL
By SAM GRINGLAS Daily Staff Reporter
UMHS acquires health system University to absorb Allegiance Health in unprecedented deal By STEPHANIE SHENOUDA Daily Staff Reporter
The University of Michigan Health System formally announced Tuesday a partnership agreement with Allegiance Health, a health system based in Jackson, Mich. The agreement will eventually grow UMHS’ patient capacity by 50
percent — adding Allegiance’s 490 beds to its system. Per the agreement, signed Monday, the two organizations would continue treating their own patients but would share resources and capital as needed while the University takes on the role of “parent company” to Allegiance. Ultimately, UMHS will absorb Allegiance. Though the regulatory filings and due process necessary to formalize the agreement will likely progress through mid-summer, UMHS CEO Ora Pescovitz expressed enthu-
siasm for the project, repeatedly saying in a conference call Tuesday that the purchase will benefit both partners’ programs. “We’re very excited about the proposed affiliation, which will enable us to serve the community better, make a big difference in improving health and creating a better community during health care reform,” Pescovitz said. “We believe that we’re a state resource and want to improve the quality of care within Michigan. It’s also critical to provide the right care, at
Kickstarter campaign hits $50,000 goal By JULIA LISS Daily Staff Reporter
At midnight Monday, professors from the Department of Aerospace Engineering launched a campaign through crowd-funding web site Kickstarter to fund the development and launch of a new project that it is out of this world. The professors are CubeSat Ambipolar Thruster, which would allow a tiny satellite to go deep into space at a fraction of the cost of current missions. CAT is also trying to earn a spot in the Guinness Book of World Records for being the world’s fastest university-built satellite. Kickstarter allows individuals to pledge to donate as little as a dollar towards a cause. Kickstarter recipients can only accept the funds if the campaign meets its fundraising
goal in the time they’ve outlined. In fewer than 48 hours, the CAT campaign had exceeded its $50,000 goal. This is CAT’s second attempt at fundraising through Kickstarter. Another campaign was launched July 4 and lasted about a month, but did not reach its goal. Engineering Assistant Prof. Benjamin Longmier, who works in the Plasmadynamics and Electric Propulsion Lab at the University, is leading the project. He said part of the problem with the group’s last attempt was poor timing and lack of awareness. “We thought people just who were enthusiastic about space and technology might be the demographic and we saw that mostly to be the case,” Longmier said. “We also thought people from the University of Michigan would be more excited about a Michigan project, but we didn’t have a lot of Michigan people involved and that was surprising, but that was in the summer when no See AEROSPACE, Page 3A
the right place, at the right time and to keep local care local.” Patients requiring complex care would be treated in Ann Arbor, not unlike the referral base the hospitals have built in the past. The University plans to invest $25 million in Allegiance initially, which will fund routine maintenance and equipment. Over the next five to seven years, there will be a total of $100 million invested in the partnership, though it’s expected that Allegiance will See HOSPITAL, Page 3A
LITTLE VICTOR
SCIENCE
Aerospace profs raise money for mini-satellite project
In federal court Tuesday, U.S. Bankruptcy Judge Steven Rhodes ruled that the city of Detroit is legally eligible to enter bankruptcy — a decision that will allow the cash-strapped city to begin restructuring its $18 billion debt. The ruling also confirmed that Detroit is now officially the largest municipal bankruptcy in American history. In a summary of his ruling, Rhodes said the court found Detroit did not have the ability to pay its debts and met the legal criteria for Chapter 9 bankruptcy, the Detroit Free Press reported. “It is indeed a momentous day,” Rhodes said. “We have here a judicial finding that this once-proud city cannot pay its debts. At the
same time, it has an opportunity for a fresh start. I hope that everybody associated with the city will recognize that opportunity.” Law School Prof. John Pottow, an expert in bankruptcy law, said Chapter 9 is a special type of bankruptcy filing for government entities such as school boards, counties and cities. Similar to Chapter 11 bankruptcy granted to businesses, public entities have the opportunity to negotiate with their creditors and negotiate a plan for partial repayment of the debt. For municipalities entering Chapter 9 bankruptcy, a federal judge must first determine the entity’s eligibility for bankruptcy, which includes authorization from the state, proof of the entity’s insolvency and a record that goodfaith negotiations with creditors were carried out, Pottow said. Though the court’s decision may end months of uncertainty regarding the city’s financial future, city leadership and creditors will face further hurdles as the city compiles a Plan for Adjustment in the next few weeks. See BANKRUPT, Page 3A
STUDENT GOVERNMENT
Funding approved for off-campus bus route CSG and IFC to fund route from Oxford area to C.C. Little By CLAIRE BRYAN Daily Staff Reporter
TERRA MOLLENGRAF/Daily
Reese Sternhagen, 6, smiles after a visit with Gustav Nyquist of the Detroit Red Wings. Members of the team visited and hand out memorabilia to patients at C.S. Mott Children’s Hospital Tuesday.
BUSINESS
South University bar scene was once a retail haven Longtime tenants discuss avenue’s changing face By SHOHAM GEVA Daily Staff Reporter
Like many streets in downtown Ann Arbor, South University Avenue has lost its
retail appeal. The area was prosperous in the 1980s, but declined in the late ‘90s, shifting from a retail focus to the bar and restaurant scene it is today. The street is the heart of undergraduate life — or at least it has the potential to be.
The area is still growing and changing — this year seeing more than four new establishments open and two new apartment buildings have opened over the past several years. Today, it plays host to a mix of bars, locally owned establishments, housing, franchises, reduced retail venues and resSee BUSINESS, Page 3A
The Central Student Government Assembly voted Tuesday to begin funding the late-night off-campus University bus route, after the initiative was announced by CSG officials in October. CSG and the Interfraternity Council are working with Parking and Transportation Services to assign some of the University’s Blue Buses to a route that transports students to off-campus areas between the hours of 10 p.m. to 3 a.m. The service will begin in January, as previously reported. The route is expected to begin at the corner of Oxford Road and Hill Street, and will make stops on Hill Street, South University Avenue, Packard Street, Thompson Street and North University Avenue, ending at the C.C. Little bus stop. Most locations are current Ann Arbor See CSG, Page 3A
thethe green food‘U’ b-side A look at how University President A look at how, andthe where Mary Sue Coleman haswhy grown U’s ‘U’ students get their grub sustainability programslocal . » INSIDE » INSIDE
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INDEX
Vol. CXXIV, No. 39 ©2013 The Michigan Daily michigandaily.com
NEWS......................... 2A OPINION.....................4A S P O R T S . . . . . . . . . . . . . . . . . . . . . . 7A
SUDOKU.....................2A CL ASSIFIEDS...............6A S TAT E M E N T. . . . . . . . . . . . . . . . .1 B