Detroit Institute Of Arts Collection Could Be Sold To Satisfy City's Creditors

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A spokesman for Emergency Manager Kevyn Orr, who was appointed to run the city by the governor this year in the midst of a severe financial emergency, told the Detroit Free Press Thursday the DIA must be considered as one of the city's assets. Spokesman Bill Nowling said some creditors had already asked if the collection was on the bargaining table.

In a statement Friday, the museum said it cannot sell art under standards required by the public trust:

The DIA strongly believes that the museum and the City hold the museum?s art collection in trust for the public. The DIA manages and cares for that collection according to exacting standards required by the public trust, our profession and the Operating Agreement with the City. According to those standards, the City cannot sell art to generate funds for any purpose other than to enhance the collection. We remain confident that the City and the emergency financial manager will continue to support the museum in its compliance with those standards, and together we will continue to preserve and protect the cultural heritage of Detroit.

http://www.huffingtonpost.com/2013/05/24/detroit-institute-of-arts-collection-asset-for-sale_n_3332922.html
 
As I understand it, the city of Detroit has wasted all of its money.  Should we  tax payers give them more money to discard?  Should the Smithsonian purchase the art collection?  When the city gets back on its feet, sell it back to the city.  Or, should the collection go to private people to satisfy its creditors and be lost forever to the public?

Jim Vojcek
 
Since, as of 2012, citizens of Oakland, Wayne and Macomb counties are being assessed a millage to support the DIA, another option might be to transfer 'jurisdiction' to the county executive level.
 
Met director decries idea of Detroit pillaging the DIA collection

The Metropolitan Museum of Art has joined the Detroit Institute of Arts in opposing any plan for the city to sell billions of dollars of museum masterpieces to plug a deficit.

"Even in the darkest days of New York City's fiscal crisis of 1975, and the national economic meltdown of 2008, the cultural treasures closely identified with our own city were never on the table," Thomas Campbell, the Met's director and chief executive, said in a statement.

http://www.crainsdetroit.com/article/20130524/NEWS01/130529898/met-director-decries-idea-of-detroit-pillaging-the-dia-collection#
 
Contact your two US senators.  Make 100% sure they are aware of the situation.  See if something can be worked out with the Smithsonian.  Perhaps the senators have another idea how to save the collection.

Jim Vojcek
 
Billionaire Gets New Sports Arena in Bankrupt Detroit

Yes, the very week Michigan Governor Rick Snyder granted a state-appointed emergency manager’s request to declare the Motor City bankrupt, the governor gave a big thumbs-up to a plan for a new $650 million Detroit Red Wings hockey arena. Almost half of that $650 million will be paid with public funds.

They don’t have money to keep the art on the walls. They do have $283 million to subsidize a new arena for Red Wings owner and founder of... Little Caesar’s, Mike Ilitch, whose family is worth $2.7 billion dollars. (“Friends! Romans! Countrymen! Lend me your pensions!”)

http://truth-out.org/opinion/item/17867-billionaire-gets-new-sports-arena-in-bankrupt-detroit
 
This is the ugly truth of a socialist utopian society run to conclusion.  As the iron maiden so apply stated " you eventually run out of other peoples money".  Bankruptcy means you eventually loose the farm artwork and all.  Hopefully to other better run cities or city instead of private collectors, but creditors have a right to be paid. Furthermore, I'm not sure the current inhabitants of Detroit value a quality museum as indicated by the funding currently allocated to the Hockey stadium!   
Ultimately, maybe a case of "perfume on a hog" to leave museum treasures in Detroit. Just sayin.
 
Yes, eventually socialism for rich people will run its course. 

The inhabitants of Detroit are not being given a choice about the new stadium. They will be among those contributing $283 million of public funds whether they like it or not, whether they like sports or not, and in spite of the fact that most of them won't be able to afford the price of admission.
 
News about the status of DIA is relevant for this site.  But comments about the politics, personalities, or other opinions should be expressed in other forums. 

Thanks,

Ken Johnson
 
Donors Pledge $330 Million to Save Detroit's Art 

In a matter of months, $330 million has been promised by major foundations in an effort to save the collections of the Detroit Institute of Arts from being sold to alleviate the city's $18 billion debt load.

Among the major contributors are the James L. Knight Foundation, the Ford Foundation, and the Kresge Foundation.

http://www.artfixdaily.com/news_feed/2014/01/13/1125-foundations-pledge-330-million-to-save-detroits-art
 
I heard on the radio that this plan may not work, simply because under the bankruptcy filing all creditors are considered the same. So they may not be able to earmark the money for the DIA or the pensions, it may have to go to all interested parties proportionally to satisfy the $18bn debt. It will be up to the judge. I sincerely hope it works but the NPR host didn't sound positive.
 
That sounds a little mixed up, because part of the DIA is a city asset, whereas the pensions are part of the liabilities.  City is looking for a way to get money out of the asset, to pay the pensions.  The foundation essentially buys the city-owned art from the DIA, and the DIA sends ALL of the money to the city to divide up amongst creditors, maybe mainly pensions, as the judge sees fit.  The art then stays at the DIA, albeit no longer owned by the city.  This is my understanding.  And I think the judge has had a hand in arranging such a transaction.
 
Then again, today it is reported that the DIA will itself be expected to contribute to the fund, in addition to the foundations and the State of Michigan.  The committment sought could be as high as $100M ovre 20 years, an amount which the Museum director says is unrealistic.
 
Detroit's creditors want entire art museum collection to be fair game
Creditors in Detroit’s municipal bankruptcy have engineered a new appraisal aimed at putting the Detroit Institute of Arts' entire collection in play as a possible chip to maximize the amount the city will be obligated to ante up for debt repayment.

That’s quite an escalation from a previous appraisal of only about 1,700 works that the DIA had bought with city funds.

http://www.latimes.com/entertainment/arts/culture/la-et-cm-detroit-institute-of-arts-city-bankruptcy-20140530-story.html
 
Michigan Senate OKs historic $195M Detroit aid package; Snyder's signature next

Senate Majority Leader Randy Richardville, R-Monroe, called the package of nine bills a “smart, conservative decision,” that will help ease cuts to pensioners, save the artwork at the Detroit Institute of Arts from sale, and shield the state from future lawsuits regarding the bankruptcy — a major incentive for lawmakers. http://www.freep.com/article/20140603/NEWS06/306030043/Detroit-bankruptcy-pensions-artwork
 
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