Detroit Hit With a $4 Billion Proposal for City's Art

  • August 27, 2014 23:02

  • Email
Selene and Endymion by Nicolas Poussin.
Detroit Institute of Arts
New York-based Art Capital Group has offered Detroit a loan of up to $4 billion in a new proposal that leaves the city's museum intact with its art used as collateral. The amount is about 10 times what the city's planned 'grand bargain' deal has generated from donors. 

Detroit is going to court on Tuesday to try to push the grand bargain through. The deal keeps city-owned art at the Detroit Institute of Arts, but under a new foundation owner. Retirees would then be paid part of their pensions from the bankrupt city through the grand bargain donations from the state and others. Those in opposition to the plan include other creditors, primarily the city's bond insurers, who won't recoup much from the grand bargain and want the city's art sold or "monetized."

This week, a term sheet with details of the Art Capital plan was provided to the New York Times. The document gives a vastly greater total appraisal figure for the DIA's collections: $8.1 billion. A previous appraisal by Artvest Partners put the value of the 60,000-+ piece collection at $2.6 billion to $4.6 billion, with a liquidation estimate of $850 million.

Detroit is sticking with the grand bargain. About the $4 billion loan, Bill Nowling, a spokesman for Detroit Emergency Manager Kevyn Orr, said to ClickonDetroit: "This is an attempt -- nothing more -- from our creditors to get more money from them, to improve their recovery at the expense of retirees and at the expense of selling the treasured assets of the city." 

Read more at New York Times


  • Email

More News Feed Headlines

Joseph Mallord William Turner (1775-1851) Sunset, 1830-5.

After 13 Years, ARTFIXdaily to Cease Daily News Service

  • ArtfixDaily / August 15th, 2022

ARTFIXdaily will end weekday e-newsletter service after 13 years of publishing art world press releases, events and ...

Read More...
Einar and Jamex de la Torre, Critical Mass, 2002 (Courtesy of the Cheech Marin Collection and Riverside Art Museum).

Inaugural Exhibition at The Cheech Highlights Groundbreaking Chicano Artists

  • ArtfixDaily / July 7th, 2022

One of the nation’s first permanent spaces dedicated to showcasing Chicano art and culture opened on June ...

Read More...
Jacob Lawrence,.  .  .  is life so dear or peace so sweet as to be purchased at the price of chains and slavery?—Patrick Henry,1775 , Panel 1, 1955, from Struggle: From the History of the American People, 1954–56, egg tempera on hardboard.  Collection of Harvey and Harvey-Ann Ross.  © 2022 The Jacob and Gwendolyn Knight Lawrence Foundation, Seattle / Artists Rights Society (ARS), New York.

Crystal Bridges Explores the U.S. Constitution Through Art in New Exhibition 'We the People: The Radical Notion of Democracy'

  • ArtfixDaily / July 7th, 2022

Original print of the U.S. Constitution headlines exhibition sponsored by Ken Griffin (who purchased it for $43.2 ...

Read More...
Salvador Dalí (1904–1989), Christ of St John of the Cross, 1951, oil on canvas © CSG CIC Glasgow Museums Collection

Dalí / El Greco Side-by-Side Exhibit Prompts: 'Are They Really Paintings of the Same Thing?'

  • ArtfixDaily / July 6th, 2022

From July 9 to December 4, 2022, The Auckland Project in the U.K. will unite two Spanish masterpieces from British ...

Read More...

ARTFIXdaily Artwire