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Michigan Governor Snyder Offers $350m to Save DIA Art

January 22, 2014 by Marion Maneker

Detail of Vincent van Gogh Self Portrait at DIA

Michigan’s governor, Rick Snyder, unveiled his plan to contribute $350m in state funds to Detroit’s pension funds to help save DIA’s art. The funds would overmatch $330m pledged from foundations to resolve the city ownership of some of DIA’s most famous works:

“This is a settlement; this is not a bailout,” Snyder said at a news conference.

The governor said the money would come from the state’s tobacco settlement funds and would be conditional on “independent fiduciary management” of Detroit pension funds. It also would have to be part of a settlement of the bankruptcy that ended court cases, he said.

And he said that by pledging it as part of an overall settlement, the state would head off what could be years of costly litigation.

“Let’s put this behind us so we don’t have ongoing lawsuits … so we all can focus on growing Detroit,” Snyder said.

The state money “will not make retirees whole but it will significantly reduce the burden they would otherwise face,” Snyder said, flanked by GOP legislative leaders.

Snyder: State would pledge $350M to save Detroit pensions, DIA artwork (Detroit Free Press)

Rhodes to Creditors: Get Off the Art!

January 22, 2014 by Marion Maneker

The Detroit Institute of Arts

Most of the hysteria surrounding the question of what role Detroit’s art plays in the city’s bankruptcy fails to take into account the fact that there are indeed grown-ups in charge of the process as was demonstrated today when Judge Rhodes denied creditors’ petition for a second appraisal of the DIA’s value. Here’s the Detroit Free Press recounting the exchange:

“Whether any of us like it, the art is in play,” said Vince Marriott, an attorney for several European banks.

Rhodes interjected: “I have to say that that is not altogether clear to me at all. It depends on what you mean by ‘in play.’”

Rhodes also said this afternoon that he he’s not sure DIA artwork can be sold to help resolve the city’s Chapter 9 bankruptcy.

The judge reiterated his previous statements that one-time fixes won’t fix the city’s finances. And he called Michigan Attorney General Bill Schuette’s opinion that the DIA property can’t be sold a “serious argument” that he would consider.

The politics of Detroit’s bankruptcy isn’t pretty but it is playing out with some measured sense of purpose. At the end, one hopes the city will possess its historical patrimony while still honoring its commitment to employees.

Rhodes rejects creditors’ request for independent valuation of DIA art (Detroit Free Press)

Critics Complain but Saving Detroit’s Art Has Been High Priority in Bankruptcy Debate

January 20, 2014 by Marion Maneker

Detroit_Institute_of_Arts_-_Rivera_Court_detail

We’re told that art needs to be more engaged with politics and yet our most sophisticated art critics seem to have no ear for politics, no ability to see their own victory. The situation in Detroit is a perfect example. Over the last several months we’ve heard repeated wails of outrage that Detroit’s art should become mixed up in the city’s bankruptcy. This latest example comes from the New Republic’s Jed Perl:

The hue and cry about the DIA, loud as it has been, is not loud enough. Detroit would be a much smaller place without its Bruegel—or its great Poussin or its great Matisse. If the future of the auto industry is a matter of national concern, then why isn’t the threat to the DIA regarded as a national scandal? For years our elected officials have been backing away from any serious engagement with the arts.

Michigan Governor Snyder is an elected official and as soon as a Federal Judge ruled Detroit’s bankruptcy could go through, thus putting DIA’s art in real jeopardy, Governor Snyder started floating the potential for a grand bargain. County officials—also elected—raised operating funds for DIA by taxing their residents. Both acts are “serious engagement with the arts.”

Detroit’s art should not be sold. But politics, as they say, isn’t beanbag. The process by which that city, state and region came to recognize the value of its art collection was not pretty nor was it dignified. But it did unequivocally make preserving DIA a paramount issue. That’s a victory for the arts and a victory for the people. Shouldn’t an art critic celebrate that?

Detroit Art Institute’s Masterworks Should Be Saved | New Republic.

Nine Foundations Pledge $330m to Advance Detroit Grand Bargain to Save DIA and Fill Pension Gap

January 13, 2014 by Marion Maneker

The Detroit Institute of Arts

The Detroit Free Press reports that the mediator has gotten a commitment from nine foundations to pay $330 million as part of a larger deal to protect DIA’s art and help cover the city’s $3.5bn pension shortfall:

U.S. Chief District Judge Gerald Rosen’s statement made clear that the pledges do not by themselves mean that pensions and DIA art are now beyond the reach of creditors. Rather, the commitments are intended and expected to play a part in what Rosen’s statement called “an overall balanced settlement of disputes in the bankruptcy.”

In other words, there is no deal until all the various claims in the broader bankruptcy case have been settled. And the foundations’ support is contingent upon all their money going to support the twin goals of helping fill the unfunded gap in Detroit’s municipal pension obligations and protecting the DIA art collection from possible sale to pay the city’s creditors.

$330 million pledged to save pensions, DIA artwork from Detroit bankruptcy (Detroit Free Press)

Foundations Moving Toward DIA Deal, Possibly Today

January 13, 2014 by Marion Maneker

The Detroit Institute of Arts

The Detroit Free Press reports that a deal to take DIA’s art off the table in Detroit’s bankruptcy is imminent and could be announced as early as today:

One source, who spoke on the condition of anonymity, said talks are at a delicate stage and there are “a number of moving parts,” including what role the state would play in any deal.

But there’s a 50/50 chance the “grand bargain” will be announced today, the source said, in part because of concerns about inaccurate speculation.

The foundations, which range from nationals such as Ford and Kellogg to local institutions such as Skillman and the Community Foundation for Southeast Michigan, were preparing Sunday to make a joint statement that reflects their enthusiasm at being involved in efforts to help the city get back on its feet.

Darren Walker, CEO of the Ford Foundation in New York, has reportedly taken a lead role in structuring the deal and bringing other foundations into it.

Deal could come as early as today to protect DIA art, Detroit pensioners (Detroit Free Press)

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