A $28-million state revenue sharing payment to the City of Detroit will be withheld today unless the city's top lawyer drops her challenge to the legality of the financial stability agreement between the city and state, a state treasury department spokesman told the Free Press Thursday.
Terry Stanton said Krystal Crittendon is refusing to renounce the challenge to the agreement, which she claims violates the city charter.
Her position, Stanton said, makes it "next to impossible" for the city to issue bonds needed to repay short-term borrowing from earlier this year.
Without an agreement from Crittendon not to continue her legal challenge, the bank administering the earlier loan will be required to stop Detroit's monthly revenue sharing payment to repay the loan, Stanton said.
