DIA

Stateside
6:25 pm
Thu July 10, 2014

DIA collection valued up to $4.6 billion as voting approaches home stretch

Credit Flickr

A new appraisal of the Detroit Institute of Arts' collection has found the works could be worth between $2.7 billion and $4.6 billion dollars. That's a big difference from the $867 million value that Christie's put on the collection last fall.

Detroit News Business columnist Daniel Howes joined us to tell us what he saw in the evaluations.

Howes clarified that the $867 million valuation by Christie’s only looked at 5% of the DIA’s collection, whereas the new appraisal evaluated its entire collection. He also pointed out the caveat attached to the big $4.6 billion number: “If you try to sell big chunks of the collection at the same time, you likely press the prices dramatically.”

Read more
Detroit bankruptcy
5:15 pm
Wed July 9, 2014

Report: DIA collection worth as much as $4.6 billion

The Wedding Dance, by Peter Bruegel the Elder, is one of the most valuable works at the DIA.
Credit Detroit Institute of Arts

A New York art investment firm says, on paper, works at the Detroit Institute of Arts could be worth as much as $4.6 billion. But the report by ArtVest Partners says the artwork could go for a lot less, if it's liquidated as part of the city's bankruptcy.

An earlier appraisal of the DIA's collections by Christie's auction house looked only at works bought with city money, and said selling those would bring in no more than $866 million.

Read more
Politics & Government
1:25 pm
Wed June 11, 2014

More money pledged to protect art in Detroit bankruptcy

The Detroit Institute of Arts.
Credit Detroit Institute of Arts

The Detroit Institute of Arts is getting more help raising money for its share of the deal meant to shield its collection from possible liquidation.

The New York-based Mellon Foundation and Los Angeles-based J. Paul Getty Trust have committed a combined $13 million toward the “grand bargain.”

That proposal would direct more than $800 million to Detroit’s pension funds--sparing pensioners from severe cuts, while legally safeguarding the DIA’s assets from being sold to pay off city creditors.

The DIA needs to come up with a $100 million contribution to the grand bargain, this new commitment puts them more than 80% of the way there.

Getty Trust President and CEO James Cuno says the two foundations made a decision to contribute on their own.

“We jointly made the commitment,” Cuno says. “There was no conversation with the DIA about it, no request from the DIA.”

Cuno says the donation reflects the North American art world’s support for maintaining the DIA’s collection as a civic institution and public resource “in perpetuity.”

If put up for sale, the collection “would be lost to private individuals around the world,” Cuno says. “And the public of Detroit, and surrounding suburbs, would be deprived of a public resource they once had.”

Cuno says it’s “too soon to tell” whether the money will be disbursed to the museum as a lump sum upfront, or spread out over a period of years. Donors and museum officials are waiting for the larger grand bargain to be finalized.

Earlier this week, Detroit’s 3 automakers pledged a combined $26 million toward the DIA’s contribution.

Judge Steven Rhodes has set an Aug. 14 trial on Detroit's plan to get out of bankruptcy.

Politics & Government
3:20 pm
Mon June 9, 2014

Nation's automakers pitch in $26 million to Detroit's bankruptcy reorganization

Reid Bigland of Chrysler speaks at the media event announcing that U.S. automakers will contribute to the 'grand bargain.' Bigland is standing in front of one of the famous Diego River murals at the DIA.
Credit Reem Nasr / Michigan Radio

It seems momentum behind Detroit's municipal bankruptcy reorganization continues to build. If the momentum continues, the city could emerge from bankruptcy this fall.

Today, General Motors, Ford, and Chrysler pledged to contribute a combined $26 million to a deal aimed at reducing cuts to Detroit pensioners while preserving the art collection at the Detroit Institute of Arts (part of the collection has been talked about as a city asset that could be sold to satisfy Detroit's creditors).

The money from the automakers will go into large pot of money – more than $800 million – collectively known as the "grand bargain."

So far, money for the grand bargain is coming from private philanthropists, foundations, the state of Michigan, and money raised by the DIA itself. The automakers' money will be counted toward the DIA's goal of $100 million.

Read more
Politics & Government
8:46 pm
Tue May 20, 2014

Committee vote expected in Detroit aid agreement

Detroit Mayor Mike Duggan wants the city to be able to get out from under state oversight if it's managing its finances.
Credit Mike Duggan

There could be a first vote tomorrow in the Legislature on an almost $200 million deal to aid the city of Detroit. Mayor Mike Duggan was one of those who testified prior to the historic vote. Duggan says, overall, he supports the plan.

“I want you to be comfortable we’re not going to be coming back in two years, four years, six years – that we’re going to solve this once and when we do solve it once, you’re going to be proud of how progress is made,” Duggan told the House Committee on Detroit’s Restructuring and Michigan’s Future.

Read more
Politics & Government
9:11 am
Wed May 14, 2014

Detroit's 'grand bargain', minimum wage, and Conyers make political headlines

Credit Lester Graham / Michigan Radio

This Week in Michigan Politics, Jack Lessenberry and Christina Shockley discuss the grand bargain for the Detroit bankruptcy, the debate over the minimum wage and whether Detroit Congressman John Conyers has a chance to continue his nearly 50 years in Congress.

Week in Michigan Politics interview for 5/14/14

Read more
Arts & Culture
12:20 pm
Mon May 5, 2014

DIA plans an exhibition on the year Diego Rivera and Frida Kahlo spent in Detroit

Frida Kahlo overlooking Rivera Court at the DIA circa 1932-33.
DIA Archives

The Detroit Institute of Arts is planning a unique exhibition that highlights the year Mexican artists Diego Rivera and Frida Kahlo spent in the city.

Between April 1932 and March 1933, Rivera created the famed Detroit Industry murals on the walls of a courtyard at the Detroit museum.

Here’a video of the murals being made at the DIA:

Sherri Welch reports for Crain’s Detroit Business that other museums and private collectors will help the DIA with the exhibition:

"When Rivera was here, he was regarded as one of the most important artists in the world of western art at that time," [DIA Director Graham] Beal said.

Edsel Ford paid for the murals, which wound up costing just less than $21,000 at the time, according to the DIA.

Rivera, seen as one of the greatest muralists of his time, was a very important influence on the artists who became abstract expressionists, Beal said.

And Kahlo's development as an artist took place when she was here in Detroit. Renowned as not only a portrait artist but as a symbol of feminist strength, Kahlo's works range in style from folk art to surrealist.

In its press release, the DIA says most of the works Kahlo created in Detroit will be shown for the first time in the city.

The show is scheduled to run from March 15, 2015, to July 12, 2015.

In all, 80 artworks will be featured in the exhibition, including Rivera's preparatory drawings for the Detroit Industry murals.

Stateside
5:35 pm
Wed April 23, 2014

Stryker of the Detroit Free Press talks DIA art and bankruptcy

Detroit Institute of Arts
Credit Photo courtesy of the DIA

As Detroit's bankruptcy battle continues to unfold, a question remains: what will happen to the city-owned pieces at the Detroit Institute of Arts?

The city recently reached a tentative agreement with its retirees and pensioners. Could the agreements impact the possible sale of DIA work to satisfy Detroit's bondholders and other creditors?

Mark Stryker explored that question in The Detroit Free Press and we spoke with him today.

*Listen to the audio above.

Weekly Political Roundup
5:31 pm
Thu April 10, 2014

Detroit bankruptcy case, bondholders and the future of the DIA

It’s Thursday, the day we talk Michigan politics with Ken Sikkema, former Senate Majority Leader and senior policy fellow at Public Sector Consultants, and Susan Demas, publisher of Inside Michigan Politics.

This week, host Jennifer White discusses the latest developments in the Detroit bankruptcy case and examines the implications.

There was a significant breakthrough yesterday. A settlement was announced between the city of Detroit and three major bond insurers. The insurers will get about 74 cents on the dollar, a significant increase from what emergency manager Kevyn Orr originally offered, and the roughly $50 million in savings will go to support retirees.

The question now is whether retirees will accept further cuts to their pensions, given the fact that Gov. Rick Snyder has stated that the state will not put any money forward unless the retirees agree to cuts. Ken Sikkema says it's imperative that retirees back the plan.

Read more
Stateside
5:13 pm
Thu April 10, 2014

The latest developments between the DIA, Detroit pensioners, and creditors

Credit JSFauxtaugraphy/Flickr

There have been two big developments this week in the high-stakes showdown over Detroit's pensioners, its art treasures and creditors who hope bankruptcy judge Steven Rhodes will pressure the city to put those art treasures on the table.

There's a lot to try to sort out. So, as we do each Thursday, we spoke to Detroit News business columnist Daniel Howes.

Listen to the full interview above.

Politics & Culture
5:10 pm
Thu April 10, 2014

Stateside for Thursday, April 10, 2014

The average gas mileage of new vehicles sold in the U.S. has steadily been improving, and greenhouse gas emissions are at an all-time low. The Environmental Protection Agency also recently set new emissions standards, scheduled to be phased in between 2017 and 2025, that will reduce the amount of sulfur found in gasoline.

But is the slow and steady climb in fuel economy and emissions enough? On today’s show, we ask if the Obama administration's 2016 and 2025 fuel efficiency goals setting the bar too low?

Then, a new documentary film brings us the story of the Great Lakes as seen through its ice.

And, last month, Gov. Snyder confirmed a financial emergency existed in Royal Oak Township. Can other communities learn from Royal Oak’s situation?

Also, the Share Art Project is a collaborative effort among artists at the Buckham Gallery, students and the Genesee Valley Regional Center. We spoke to a Buckham board member about the program and an upcoming exhibit.

First on the show, there have been two big developments this week in the high-stakes showdown over Detroit's pensioners, its art treasures and creditors, who hope bankruptcy judge Steven Rhodes will pressure the city to put those art treasures on the table.

There's a lot to try to sort out. So, as we do each Thursday, we spoke to Detroit News business columnist Daniel Howes.

Opinion
2:10 pm
Wed April 9, 2014

If you think the Detroit Institute of Arts is now safe, think again

If you aren’t following every twist and turn in the saga of Detroit’s bankruptcy, you may think things are well on track.

Today, in fact, came the good news that the city has apparently reached a deal with its unsecured bondholders, who are evidently going to settle for almost 75 cents of every dollar owed them. 

But the biggest and toughest challenges are ahead.

And if you think the Detroit Institute of Arts is now safe, think again.

Here is how things stand:

Read more
Arts & Culture
1:25 pm
Thu March 27, 2014

Timeline: The complicated relationship between the DIA and the city of Detroit

The Detroit Institute of Arts in 1927, and the museum now.
DIA/Flickr

Even before Detroit officially filed for bankruptcy last July, many Michiganders and outsiders feared for the future of the Detroit Institute of Arts – the city’s so-called "crown jewel."

With the city in financial turmoil, the newly appointed emergency manager of Detroit started a catalog of city assets. Many feared the DIA's status as a city asset would mean part of the museum’s collection could be sold off to satisfy creditors.

Read more
Stateside
6:12 pm
Thu January 23, 2014

Gov. Snyder proposes cash infusion to save Detroit Institute of Arts

user aMichiganMom Flickr

Big news out of Lansing yesterday: Gov. Rick Snyder has proposed committing up to $350 million of state money to guarantee city of Detroit pension benefits and to keep Detroit Institute of Arts art off the auction block.

Big news, but not altogether surprising.

Detroit News business columnist Daniel Howes has been writing about this possible cash infusion for weeks now. He joined us today to discuss the issue.

Listen to the full interview above.

Detroit Bankruptcy
4:44 pm
Wed January 22, 2014

State leaders hope to join in on 'Grand Bargain' for Detroit pensions and the DIA

Gov. Snyder flanked by Bolger (right) and Richardville (left) making the announcement.
Gov. Snyder

Update 5:00 p.m. from Rick Pluta:

Governor Rick Snyder has proposed committing up to $350 million to help mitigate cuts to Detroit pension benefits – as well as keep assets of the Detroit Institute of Arts off the auction block.

The state’s offer would play out over 20 years and would match money raised from private donations to make sure DIA paintings, sculptures, and other works of art don’t get sold off to pay pension benefits that are central to the bankruptcy negotiations.

“This is not bailout,” he said. “This is a settlement. I want to be very clear about that.”

Snyder said one of the conditions would have to be creditors dropping any legal claims to DIA asserts.

“This is not geared toward the bondholders, bankers, or people on Wall Street,” he said. “This is geared towards Michiganders that worked really hard in our state and have a pension and are looking at a difficult situation – how do we improve that situation?” 

The governor says he hopes the state’s offer will help move the city through bankruptcy more quickly, which would be a good deal for the state.

The proposal must still be adopted by the Legislature. Republican leaders say hearings will begin very soon.

“We have some questions, some ‘t’s’ that need be crossed, some ‘i’s’ that need to be dotted, but in general is something that’s very positive and being received that way,” said state Senate Majority Leader Randy Richardville (R-Monroe). “So, we will consider it over the next few weeks. We will look in detail, and consider it as best we can.”

The governor’s offer came as Detroit bankruptcy judge Steven Rhodes refused to allow an evaluation of DIA assets to go ahead. Detroit’s creditors could still challenge the plan in bankruptcy court.

The state’s share would match contributions from private donors. It would come from money the state gets annually from the 1998 nationwide settlement between states and tobacco companies. The plan will be part of the governor’s budget proposal to be delivered Feb. 5.

Update 4:44 p.m.

Gov. Snyder and Sen. Majority Leader Randy Richardville (R-Monroe), and Speaker of the House Jase Bolger (R-Marshall) announced that they plan to support legislation aimed at saving Detroit pensions and DIA art.

From their press release:

Snyder, Senate Majority Leader Randy Richardville and House Speaker Jase Bolger announced they are working with the Michigan state legislature to allocate up to $350 million over the next 20 years to be combined with funds raised by private Michigan foundations to assist in saving retiree pensions. The governor recommends these state funds would come from tobacco settlement revenues...

“We are working on a fiscally sound mediation solution with clear conditions.  We will not participate in a bailout, nor allow these funds to go anywhere other than directly to retiree pensions,” said Snyder.  “This is an opportunity to work together to find solutions that will allow Detroit to get on a firm foundation faster, help pensioners, and ultimately save the Michigan taxpayers millions in the long run.  I want to applaud the foundations for taking this unprecedented and generous step and the mediators for facilitating these discussions.”

Snyder said there would be "strict conditions on any funds allocated towards the settlement." Money from the state, he said, must solely go toward pensions and that "independent fiduciaries manage the pension funds going forward."

Detroit's emergency manager released a statement after today's announcement saying in part:

"The level of proposed investment by the philanthropic community and the State will go far in helping reach a timely and positive resolution of the City's financial emergency.  A mutually agreed resolution to outstanding bankruptcy issues is the best way to help the City restore basic and public safety services to its 700,000 residents.  It is now time for the remaining parties to set aside the bargaining rhetoric and step forward and join this settlement to help this great city regain its footing and become once again an attractive place to live, work and invest."

MPRN will have more for us later.

11:43 a.m.

Many political deals have been dubbed a "grand bargain."

This "grand bargain" involves private money and potential state money to save Detroiters' pensions and the artwork at the Detroit Institute of Arts.

This morning federal mediators involved in the Detroit bankruptcy released a statement saying in part:

"We are advised that the governor of the State of Michigan, Rick Snyder, intends to announce soon his support for significant state participation in the plan to help protect the pensions of city of Detroit retirees, support the DIA, and revitalize the city in the aftermath of the bankruptcy. The governor  has indicated that he will engage with the Michigan Legislature to help secure this support for the plan."

Gov. Snyder is expected to hold a press conference at 3:30 announcing more details of the plan.

He'll be joined by Sen. Majority Leader Randy Richardville (R-Monroe), and Speaker of the House Jase Bolger (R-Marshall). It's a sign that these legislative leaders are supportive of the plan.

Chief bankruptcy mediator Judge Gerald Rosen struck a deal with private foundations that pledged more than $300 million to help Detroit solve the pension/art problem.

With that money pledged, state leaders took note and are deciding whether to try to match the money pledged by the foundations.

Earlier reports stated that the plan calls for sending Detroit $350 million over 20 years. 

We'll find out more details later today.

How Michigan legislators will react to this plan is anyone's guess. In their statement, federal mediators urged that "all parties approach the issue with an open mind."

Politics & Government
1:12 pm
Thu January 16, 2014

Gov. Snyder proposes $350 million in state aid for Detroit

Gov. Rick Snyder delivering a State of the State address.
gophouse.com

Foundations and individuals have stepped up to pledge big dollars to the struggling city of Detroit, and now Gov. Rick Synder is floating a plan to send Detroit $350 million over 20 years.

The Detroit Free Press named an anonymous source when reporting the plan this morning.

Michigan Senate Majority Leader Randy Richardville (R-Monroe) confirmed today that Snyder has floated the plan.

Read more
Arts & Culture
5:30 pm
Wed January 15, 2014

DIA helps us correct errors in an earlier broadcast

Flickr

Yesterday, on Michigan Radio, we discussed the news that a group of philanthropists and foundations have raised more than $300 million to try to save works from the Detroit Institute of Arts and protect city worker pensions.

However, in the course of our conversation, we had a couple errors.

AnneMarie Erickson is the Chief Operating Officer of the Detroit Institute of Arts and she joined us to help clarify the situation.

*Listen to the audio above.

Read more
Politics & Government
9:03 am
Wed January 15, 2014

The week in Michigan politics

A day after Governor Snyder delivers his "State of the State" address, he plans to go live on the web with an "online town hall." The event is scheduled for 6 p.m. Thursday. Details can be found on the Governor's Facebook page.
"Rick Snyder for Michigan" Facebook Page

This Week in Michigan Politics, Jack Lessenberry and Christina Shockley talk about Governor Rick Snyder's upcoming State of the State address, a new effort to save Detroit pensions and the Detroit Institute of Arts, and how abortion right advocates are backing off efforts to block a law that requires women to buy a separate health insurance rider to cover abortions.

Week in Michigan Politics interview for 1/15/14

Read more
Opinion
10:47 am
Tue January 14, 2014

It's time for Snyder to fight for the DIA

Lessenberry commentary for 1/14/14

Ever since Detroit’s bankruptcy filing was announced last summer, there has been one major concern in the art world.

What will happen to the Detroit Institute of Arts and its world-class collection, something previously assumed to be untouchable and priceless? When emergency manager Kevyn Orr said the collection needed to be inventoried and appraised, it caused greater shock in some circles than the bankruptcy itself.

At first, I assumed this was a bluff, possibly designed to demonstrate how deep the city’s crisis really was.

But it quickly became clear that the creditors want their money by any means necessary. And for many, art takes a back seat to their stomachs. One former council member, a highly educated woman and a single parent, told me “I am tired of hearing that the pension I worked for is less important than your right to drive down here and see a Van Gogh.”

Read more
Politics & Government
7:34 am
Mon January 13, 2014

In this morning's headlines: Power in Flint City Council, Detroit swap deal, MEAP tests

User: Brother O'Mara flickr

Flint City Council could gain power back today

The Flint city council has been largely powerless in the two years since the appointment of an emergency manager. But that begins to change this evening. Emergency manager Darnell Earley says the City Council will now be asked to get more involved in city decisions.

Detroit swap deal to resume today

"A bankruptcy court hearing on Detroit's renegotiated deal to pay off two banks in an interest rate swaps deal is scheduled to resume today," The Associated Press reports.

Lawmakers to discuss which standardized test students will take this year

"State lawmakers will begin hearings this week to determine which standardized test Michigan students will take starting next spring. State education officials say the Smarter Balanced Assessment is the only good option to replace the Michigan Educational Assessment Program – or MEAP," Jake Neher reports.

Pages