Hendrix says he didn't handle school real estate as deputy mayor

Marisa Schultz / The Detroit News

Detroit -- Freman Hendrix, fresh off the win of a seat on the city's charter commission, told members of Detroit Public Schools investigative hearing today that he wasn't aware of a $13 million upfront lease between the school district and the city of Detroit.

DPS spent about $104 million with 1994 school construction bond money to build four schools on city-owned property, including Brenda Scott Middle School, but the city will own the property after 99 years.

"It's simply something that wouldn't come before me as deputy mayor," said Hendrix , who worked under former Mayor Dennis Archer at the time. His duties centered more on the day-to-day functions of the office, and negotiating a lease with Detroit Public Schools wouldn't have been his responsibility, he said.

Hendrix is among the witnesses called to testify under unprecedented hearings into questionable real estate transactions under the previous $1.5 billion bond. Hendrix, who also was questioned for his role as chairman of the DPS reform school board, answered each question freely but said he wasn't with DPS or didn't play a role in the real estate deals under scrutiny, including DPS' purchase in 2002 of five floors of the Fisher Building.

Emergency Financial Manager Robert Bobb is presiding over the hearings, now in their fourth session. Hendrix was appointed by the mayor to the reform school board from early 1999 to late 2000; the board was assembled during the state takeover of DPS. He worked under Archer from 1994 to 2001.

Hendrix echoed what other past reform board members said: The board had little authority aside from appointing a CEO to run the district and didn't have decision making power to oversee bond decisions. Hendrix said he worked to recruit Kenneth Burnley to the district -- since a "younger Robert Bobb" was unavailable at the time -- and he used the salaries of other major urban superintendents to benchmark Burnley's pay.

Burnley received a $240,000 base salary -- making him the highest paid public official in Michigan at the time -- and a $120,000 loan that he wouldn't have to pay back if he stayed four years in Detroit.

"I don't recall (the loan agreement), but if it's in the contract I lay claim to it," Hendrix said.

Hendrix's testimony lasted about 45 minutes.

mschultz@detnews.com (313) 222-2310