DIA

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."

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.

The Detroit Institute of Arts
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.

"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.

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.”

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.

User: Brother O'Mara / flickr

Anti-abortion coverage bill approved

"The Michigan Legislature has approved a petition initiative that will require people to buy a separate health insurance policy for abortion coverage. The measure cannot be vetoed by Governor Rick Snyder. But it could be challenged via another petition drive," Rick Pluta reports.

What bills could move through on the last day of session

"Big legislation that could win final approval today would expand a state reform school district to failing schools beyond Detroit and ease the potential discontinuation of traditional land line service. Legislators also plan to update campaign laws heading into an election year by doubling donation limits and keeping intact rules for political ads over objections from the secretary of state," the Associated Press reports.

DIA now involved in bankruptcy talks

"The Detroit Institute of Arts has been allowed into talks on how to protect pieces in its collection during Detroit's bankruptcy. Museum officials say they're mobilizing public support to help implement a fundraising strategy that will meet the city's needs and ensure the well-being of the museum," the Associated Press reports.

The Detroit Institute of Arts
Flickr

Leaders at the Detroit Institute of Arts praised the efforts of federal mediators today saying they're working toward a solution that protect's the museum's collection while giving relief to the city of Detroit.

The collection has been seen as a potential source of revenue by some creditors who are poised to lose a lot of money in the Detroit bankruptcy.

More from the DIA's press release:

At a meeting with the mediators on Tuesday, the DIA expressed enthusiastic support for the work that has been done to date, and pledged to help refine and implement the plan in the weeks ahead. The plan engages national and local foundations among other funding sources to create a mechanism for providing cash for the City, while ensuring the present and future safety of the DIA collection. Details of the plan are still in process, as meetings with the foundation community and others continue. The DIA has begun to mobilize its considerable public support to help implement a fundraising strategy that will satisfy the City’s needs, while ensuring the well-being of the museum for the residents of Detroit, southeast Michigan and beyond.

User: Brother O'Mara / flickr

State Senate approves bill making it easier to end land line service

"Phone companies would have an easier time discontinuing traditional land lines under legislation that has passed the Michigan Senate. The bill approved yesterday is designed to loosen regulations on AT&T and other providers as more customers forgo land lines and just carry cellphones," the Associated Press reports.

House is close to vote on issue ads and campaign finance bills

"State House Speaker Jase Bolger says the House is close to a vote on legislation that would double the amount of money people can give to political campaigns. The bill would also block a proposal that would require groups who pay for so-called 'issue ads' to disclose their donors," Jake Neher reports.

Philanthropists encouraged to save DIA and pensioners

One Michigander has offered to donate $5 million to help protect the DIA and Detroit retiree pensions. As the Detroit Free Press reports,

"Millionaire A. Paul Schaap said he plans to meet today with U.S. Chief District Judge Gerald Rosen, who is serving as mediator in Detroit’s bankruptcy case. Rosen has been trying to persuade at least 10 charitable foundations to put up $500 million to spin off the DIA from the city, which could then use the money to reduce pension cuts and improve services."

user aMichiganMom / Flickr

According to the Detroit News, Christie's Appraisals estimated the market value of the DIA's city bought works at somewhere between $452 and $866 million.

Christie's released the preliminary report today. The full report will be shown to Detroit's Emergency Manager Kevyn Orr the week of December 16.

User: Fabienne Kneifel/Flickr

The city of Detroit remains immersed in a time of massive change. Ongoing bankruptcy proceedings, an approaching mayoral election, and the possibility of an auction of Detroit Institute of Arts masterpieces are on people's minds.

Joining us today is Stephen Henderson, editorial page editor for the Detroit Free Press.

As part of our State of Opportunity project, Michigan Radio has partnered with the Detroit Free Press, The Center for Michigan, and WDET to host three community conversations with Detroit residents in three different locations in Detroit this Thursday. The goal is to talk with resident about what they see happening in the city and what would make Detroit a place where they feel they can build a future. 

If you’re a resident of Detroit and would like to participate in one of the community conversations this Thursday, October 24th at 6:00 pm you can a reserve spot at one of three Detroit locations. Stephen Henderson will be at the Northwest Activities Center, Craig Fahle with WDET will be at the Northeast Guidance Center, and Jennifer White be at El Nacimiento in Southwest Detroit. 

user aMichiganMom / Flickr

This is not your five-year-old's animation.

Although you can certainly bring your five-year-old. They'll be right at home in the exhibits' dark halls lined with screen after screen after screen, like a little iPad addict's paradise.

"Watch Me Move" is, according to the Detroit Institute of  Arts, the  largest animation exhibition ever mounted.

And when you exit, you'll feel like it was both too short, and somehow way too vast to get a good grasp in just one visit.

User: Brother O'Mara / flickr

Bars could stay open until 4 am

“Legislation at the state Capitol would let downtown bars and restaurants sell alcohol until 4 am. Michigan’s liquor code generally bans alcohol sales between 2 am and 7 am,” Jake Neher reports.

Detroit EM talks DIA assets

“Detroit's state-appointed emergency manager Kevyn Orr says the Christie's auction house will finish an assessment of city-owned pieces at the Detroit Institute of Arts this month, and he defends including their possible sale in the city's bankruptcy process,” the Associated Press reports.

State rejects private prison

“Michigan has rejected allowing a privately run, for-profit prison to house about a thousand inmates. The state turned down two bids because there was no savings for taxpayers,” Rick Pluta reports.

The Detroit Institute of Arts
Flickr

Detroit Emergency Manager Kevyn Orr has sent out the strongest hint yet that prized pieces in the DIA collection are on the table as a way to put money into the city coffers.

Without offering many details, Orr told the Detroit Economic Club today that there are ways for the DIA to make money from its artwork that might not involve outright sales, but perhaps would involve long-term leases.

Orr was clear -- he said he must consider ways to use the museum's treasures to help the bankrupt city.

And, earlier this week, another one of the city's "jewels" was back in the spotlight.

The State and Mayor Dave Bing announced an agreement under which the State DNR would run Belle Isle as Michigan's 102nd State Park.

Detroit News business columnist Daniel Howes joined us to talk about all this.

Listen to the interview above.

The Detroit Institute of Arts
Flickr

Editor's Note: Corrected Abigail Esman's name from "Eisman" to the proper spelling, Esman. The proper pronunciation rhymes with "says man", not "ice man."

Right now, appraisers from New York Auction House Christie’s are sifting through some 3,500 pieces at the Detroit Institute of Arts.

As part of the city’s bankruptcy case, the Emergency Manager is paying them to put a price on part of the collection.

Of course, that’s fueling even more fast-flying rumors about losing great works to private collectors, or getting massive loans for the city using Monets as collateral.

So here’s a quick field guide to what’s true, and what’s just talk.

DIA

For every time Detroit Emergency Manager Kevyn Orr declares there are no plans to sell off DIA treasures to satisfy creditors, he also says, "all options are on the table."

Detroit Institute of Arts officials are leaving no stone unturned as they work to protect its collection from the storm of Detroit's bankruptcy.

We wondered, with the art world's attention focused on the DIA, how are other art museums in Michigan faring? And just how are they drawing in visitors in this digital age when most of us can look at priceless art images with just a few clicks of a mouse?

Joining us for this discussion is Bridge Magazine contributing writer Nancy Derringer, whose recent piece in Bridge has the hopeful headline: "Far from Bankrupt: Michigan art museums thrive despite economic woes."

Listen to the full interview above.

User: Brother O'Mara / flickr

PTSD and insomnia patients urge medial marijuana panel to allow use

"A state advisory board heard overwhelming testimony in favor of approving medical marijuana for patients suffering from post-traumatic stress disorder and insomnia. The board is considering ailments not already included under Michigan’s voter-approved medical marijuana law," Jake Neher reports.

MSU pulls professor from classroom for anti-Republican rant

"A Michigan State University professor has been pulled from the classroom, after a conservative group posted a video online that showed him delivering an anti-Republican rant during a class," Steve Carmody reports.

Auction house comes to the DIA again

Detroit newspapers are reporting that Christie's Auction House visited the Detroit Institute of Art for the second time yesterday to appraise the museum's collection. Detroit's financial situation has raised concerns about whether the Detroit Institute of Arts' collection might be at risk of sale. However Detroit emergency manager Kevyn Orr has said he has "no plans to use art to relieve  the liquidity crisis that the city is in now."

DIA

As we’ve seen, even the merest hint that portions of the DIA collection will be appraised by experts from Christie's has led to impassioned pleas from all around Michigan to keep the artwork out of the bankruptcy proceedings.

 Among the many voices raised in this state-wide conversation is that of long-time Detroit journalist Bill McGraw. His recent piece in Deadline Detroit says it all? "Six Things About Detroit That Are Worse Than The Idea of Selling Its Artwork." Bill McGraw joined us today.

user aMichiganMom / Flickr

This week, the City of Detroit released the transcript of a deposition given by Emergency Manager Kevyn Orr late last month as part of Detroit's bankruptcy proceedings.

 While being questioned about the value of the city's art collection and whether the artwork would be used to help solve Detroit's liquidity problem, Orr said, "no, there are no plans to use the art or any other asset in particular to liquidate it to relieve liquidity issues in the city. What I have said and continue to say, all options are on the table." Detroit News business columnist Daniel Howes has been parsing what Kevyn Orr said during his deposition and has come up with another possible role that the DIA artwork might play in the bankruptcy drama. Listen to the interview above.

user aMichiganMom / Flickr

It's Thursday, which means it's time for our weekly check-in with Detroit News business columnist Daniel Howes.

And today he's got his eye fixed on the storm clouds that are gathering over the Detroit Institute of Arts. This particular growing cloud comes from the Oakland County.

Daniel Howes joined us today to talk about the troubles the DIA now faces.

Listen to the full interview above.

Pages