>> brian, thank you very much. >>> right now for more on detroit's bankruptcy, we are joined by dan gilbert chairman of quicken loans, which moved its headquarters back in 2010. dan, you now have 9,200 employees in downtown detroit. you are believed to be the single largest land holder in detroit. you put a billion dollars into the city. you own more than 30 properties downtown. what do you think of this latest news? >> i don't think this news is unexpected. we closely believed this would be the end result. it was a matter of time. it's painful for a lot of people, i think it's a pain, we're going to have to go through. this whole year if not decades in the coming here. i think finally when we get through this pain, detroit is going to really have an opportunity to start with a clean slate and start operating a city like we should have been operating it for a long period of time and i'll have the ability to operate it getting from underneath this debt. i think it will be optimistic in great times for detroit moving ahead, although with ehave pain here and a lot of noise in between. >> dan,

dan gilbert is is doing fabulous work. looking at a new hockey arena.detroit, coming to detroit. young people are moving to detroit. occupancies over 90% in downtown and midtown detroit because of young people. the last obstacle for allowing detroit to take offer and grow is is the city government issue. by having better services, there's a real opportunity to see an exciting detroit, a great detroit again. >> give us an estimation how long you think it's going to take for the city to climb out of this state. >> well, in terms of the bankruptcy process, my hope is we can get that resolved by fall of next year. it is going to be a longer-term process to get through all these issues. you're going to see things improve in detroit in the next 30, 60 dies days, how can we st taking down structures, how can we do better with police protection? there's a new police chief. many good things are on the path to being put in place to help citizens. >> quickly, sir, before we lose you, what about the new red wings stadium? hockey fans want to know, will it go forwar

you've seen dan gilbert invest in detroit despite the high tax burdens. >> right. >> but we need entrepreneurs to be incentivized to go back to detroit and enterprise zone is a great way to -- before we have total tax reform, and enterprise zone is a great way to do it in the short term. >> actually, charlie, i'm such a hawk on this. would i make all of detroit a tax-free enterprise zone >> you bet your life. >> that makes a heck of a lot of sense. >> in some sense that's what they need to do, and in some sense, charlie, what i'm really groping for here, look, we know there's going to be fiscal austerity now, okay. the gig is up. we know the pensions and the health care plans and we understand that, all right? that has to happen, but what i'm trying to say is that should not be the only thing that's happening. the austerity rout should be combined with an economic growth route. that's the kind of planning you were talking about before. i don't care, federal, state and local is fine. somebody's got to step in the breech and say that, detroit must grow, and let's create incentives to grow. just

today for example, i have not confirmed it, but today dan gilbert, who is the principle owner of the cleveland cavaliers and who has purchased, since the beginning of the year, 17 office buildings in downtown detroit, today was to have a press conference where he was going to offer to purchase the unfinished wayne county jail and two other jails and a court facility to in effect it would be torn down and there will be a brand new streetscape and brand new investment in terms of retail, residential, et cetera for the city of detroit. the businesses continue to invest in the city of detroit and they're not going to be at all deterred from investing and participating. >> i hope so. >> what i think will happen, melissa, if i'm wreck, i think what will happen, is that at the end of the day, other cities in the united states will be coming to the city of detroit to find out how you all did it. melissa: i hope so. >> what occurred and why, and you all are turned around. i hope what results from all of this, is that the bondholders and others, the other creditors, who will have to take somew

i think that dan gilbert is a gambler and he's gambling on detroit coming back but he's not sitting andike some people do when they buy properties and they live in florida and they wait to see if they're going to be worth something. he's actually trying to transform downtown and he is leading a wave of urban warriors i call them who are doing that same thing. i think that you're going to find is once you can get the debt under control, and $18 billion is a lot to swallow, then you will have a chance to do some of those things that will make people come back. even though more people are moving in, they're not moving in as quickly as people are leaving. younger and excited people are moving into the city in all parts of the city trying to bring it back. >> you know what's interesting, mark does write about that. you write about some artists, urban farmers. ivy league grads who passed up on, you know, say investment bank jobs and the like to work for the city council. it really runs the gamut. >> it's true. you know, detroit does have lots of assets. you know, lots of cheap housing. you ca

the investments that dan gilbert has been making. the river front. those are important. there are a number of other companies and investments that are there. i think you have to look at detroit and say what can we be going forward once we have shed this debt and how do we organize ourselves in way there is tremendous value? whether that is a massive enterprise zone concept, some way to look ahead. there's tremendous value still to be found in detroit. but kevyn orr is smart in the way he has approached this because he has looked at public safety. no question without public safety, nobody will be in detroit. the state has continued to make a substantial education. in some ways it resembles what took place in new orleans after katrina. there's innovation taking place and there's some success stories to be pointing out. all of this has to come together. i mean, what has happened is that population has come down this year. other panels were talking about earlier the city gets older, it gets poorer and it gets less skilled. so the challenge is how do you triage that situation

obviously, we have a thriving downtown area now with dan gilbert, roger penske doing downtown. wiping out massive areas of blight. homes as well as dead forestry trash. and i got to tell you, the neighborhoods couldn't be more happy with what we're doing. >> and what's the outcome going to be? i've been on some of the roads. i love detroit. a lot of friends there, bill. when you do this, what's going to happen to these neighborhoods? >> well, hopefully, what happens with the neighborhoods is they become functioning again. you know, the city has a $1 billion operating fund every year. $500 million is spent on public safety. so we've got enormous public safety issues in detroit. if we can get rid of the places where the criminals are hiding -- and certainly over 11,500 fires in the year, and 6,000 in abandoned structures. you can imagine living in the neighborhoods with all of this going on, it's tough. if we can get rid of the blight, the city can be fixed. and the city has financial issues. if we're able to get hit of the blied, we won't have the police and fire problems we do.

dan gilbert's made a huge investment, buying additional real estate in detroit.re is a new hockey arena in detroit. there is a lot of positive investment but because of the city service issue people are hesitant to come into the city. going through bankruptcy process will give us the strength to say we'll give you better services that encourages growth and we can get out of this 60-year cycle of spiraling decline. if you asked what would happen if we didn't do bankruptcy, detroit would just get worse day after day. where does that lead to anyone, including retirees. again, we empathize with them. they are on a fixed income. we need to be as far as possible but focus on the citizens, services and a growing detroit. >> mr. orr, you are an attorney. tell me what the legal status is now is. you need bankruptcy court approval of all of this. what steps have to be taken and how likely is it? >> well first, we filed yesterday so the automatic stay applies which means claims against us should be stayed. an eligibility determination has to be made. with the papers we file

civic leaders and business leaders like dan gilbert are put ago lot of money into bringing jobs back downtown. it's interesting that bankruptcy has occurred at the acculumation of decades of disinvestment, movement of jobs out. the bankruptcies occurred just at the time the city is beginning to turn a corner. i do think detroit is unique in going through this bankruptcy. i don't think... you know, is this going to spread all over the united states? i don't think it will spread through the united states. i think detroit will ultimately come out stronger because of this. >> kathryn wylde, what are the immediate lessons you're taking from detroit. >> new york has its own near-bankruptcy experience in the 1970s. that was an instance of a failure of public and private leadership. and the city did not live within its means. the same certainly is true of detroit. and it's good to hear that there are efforts underway to do something about it. but i think we have to recognize cities don't print money. states don't print money. that's really the province of the federal government. cities have

what people are not reporting in the national media is that we have billionaires like dan gilbert whove already gotten entrepreneurs there, we have all kinds of activities going on in the downtown area, casinos, mgm grand and entertainment and a film tax credit that our governor killed off when we had movies all over, george clooney, clint eastwood and our governor stepped in and cut that off. what would they have done to the city of detroit. diversified from the auto economy and what didn't they do. the federal government should look at what's going to imagine. what can we do and recreate this city that rebuilt the american middle class, i would say, stuart? >> i hear you nancy and glad we didn't indulge in a nasty political fight. thank you very much indeed. okay, charles, come in for a second here. because you don't think that they-- >> i was grimacing at some things she said. first you have to take responsibility. to fix the problems, you have to acknowledge how they happened. this is like grease, didn't become the greece we know overnight. it started in the '70s. with communist s

dan gilbert who owns quicken loans he has been buying downtown detroit buildings partly as a civic gesture and part because it was cheap and could save his money in and cheaper than out in the suburbs, i think if detroit can deliver basic services and give businessmen confidence the city will function i think you will see people take advantage of the low cost of being there. >> rose: so this is paul krugman writing in "the new york times", so detroit just uniquely irresponsible? again, no detroit does seem to have especially bad government but for the most part the city was just an innocent victim of market forces. what, market forces have victims? of course they do, sometimes it loses from economic change or individuals whose skills have become redundant and sometimes there are companies serving a market niche that no longer exists and sometimes there are whole cities that lose their place in the economic ecosystem. decline happens so by all means let's have a serious discussion about how cities can best manage the transition when their traditional source of competitive advantage go away.

and i do see a few people, dan gilbert of quicken loans being the most notable, starting to move backt they are so far behind now in the process of adjusting their economy that i think it's going to require a lot more than what they can do on their own. >> you know, and what dan gilbert has done is impressive. and he has a ton of real estate down there. he owns quicken loans. moved their headquarters there. a lot of venture capitalist money. you compare it to the auto bailout. i think this is the key. if the government gets involved, not only will you need incredibly imaginative urban planning, but there shouldn't be any expectation that they're going to get a return on their investment like they're going to get their money back from gm or they made money off of some of the financial bailout. they won't be able to sell more cars or get more revenue. some of this money needs to be an investment that you forget about it. if there's political willingness to do that, then they can get something done. >> first of all imagine what it would be like if the automotive industry completely colla

adam: dan gilbert who brought quicken loans, 9000 jobs, he made the situation worse? >> i am not saying he made the situation worse. what i am saying if you are continuing to give tax breaks to people, who can afford it? why are we giving away tax dollars? it does not make sense. adam: we appreciate you being with us here on the fox business network. >> thank you so much for having me. lori: what china is doing to figure out how much that it has. adam: we will have details on the brazen heist by jewel thieves in the south of france. lori: the new talk about eddie murphy reprising his role. ♪ [ male announcer ] these days, a small business can save by sharing. like carpools... polly wants to know if we can pick her up. yeah, we can make room. yeah. [ male announcer ] ...office space. yes, we're loving this communal seating. it's great. [ male announcer ] the best thing to share? a data plan. at&t mobile share for business. one bucket of data for everyone on the plan, unlimited talk and text on smart phones. now, everyone's in the spirit of sharing. hey, can i borrow yo

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