Displaying items by tag: emergency manager

The W.K. Kellogg Foundation announced that it will donate $40 million to a fund established to help save the Detroit Institute of Arts’ finest works from being sold at auction and avoid cuts to municipal pensions. The fund, which was created after the city of Detroit filed for bankruptcy in July 2013, now totals $370 million. Detroit is currently over $18 billion in debt and creditors are seeking repayment.

Following the bankruptcy filing, Kevyn Orr, Detroit’s emergency manager, asked Christie’s to appraise the 2,781 city-owned works housed in the Detroit Institute of Arts. The auction house estimated the works to be worth anywhere from $452 million to $886 million. The Institute has opposed any sale, stating that its art is held in a charitable trust and cannot be part of any auction to help pay for Detroit’s substantial debts.

The Kellogg Foundation, which was founded in 1930 by breakfast cereal pioneer Will Keith Kellogg in Battle Creek, Michigan, provides funds for the promotion of the welfare, comfort, health, education, and safeguarding of children and youth, regardless of sex, race, creed or nationality.

After filing for bankruptcy last month, the city of Detroit has hired the international auction house Christie’s to appraise a portion of its city-owned art collection, which is housed in the Detroit Institute of Arts. City officials have not yet decided if they will sell any works in an attempt to quell creditors.

Rumors about the fate of the D.I.A.’s illustrious collection circulated quickly after representatives from Christie's visited the museum this past June. The auction house confirmed on Monday, August 5, 2013 that they have been hired to appraise the D.I.A.’s holding but did not specify which portion of the collection they would be evaluating. The auction house said in a statement, “Christie’s was asked to assist due to our expertise in this area across all fine art categories and eras. We understand that a valuation of all the City’s assets (extending well beyond the art) is one of many steps that will be necessary for the legal system to reach a conclusion about the best long term solution for the citizens of Detroit.”

The office of Detroit emergency manager Kevyn Orr will pay for the appraisal, which will cost $200,000 and is expected to wrap up in October. Christie’s will only appraise works of art that are city-owned and are not subject to donor restrictions that could prevent a possible sale.

Graham Beal, the Director of the Detroit Institute of Arts, published a letter in the New York Times addressing the rampant rumors that have dogged the institution recently. Media outlets ran countless stories speculating about the museum’s future and that of its artworks after Detroit’s emergency manager Kevyn Orr asked for an appraisal of the D.I.A.’s collection.

In his letter, Beal specifically responded to an article published in the New York Times comparing the Detroit Institute of Arts to the shuttered Fresno Metropolitan Museum of Art and Science in California. Beal said, “True, any successful effort to liquidate D.I.A. art would precipitate a series of events likely to lead to its closing, but we are a very long way from actions that would denude its prestigious collection of its most valuable art works. We believe that a healthy D.I.A. is, in fact, a crucial component in any recovery of the city of Detroit.”

Beal’s letter can be read in its entirety at the New York Times.

The Michigan state Senate has taken measures to protect the Detroit Institute of Arts’ (DIA) works from being sold as a means to help revive the city’s grim economy. On Tuesday, June 4, 2013, the Senate’s General Government Committee approved a bill that aims to codify the ethical standards implemented by the American Alliance of Museums, which bans institutions from selling artworks for any reason other than the enhancement of its collection.

The Senate decided to take action after Detroit’s emergency manager Kevyn Orr asked for an appraisal of the DIA’s collection. Orr was considering whether the museum’s multi-billion dollar collection could be considered an asset to Detroit, which could potentially be sold to help cover the city’s $15 billion debt. Orr’s inquiry sparked an immediate reaction and DIA hired bankruptcy lawyer Richard Levin of Cravath, Swaine & Moore to protect the collection from any possible losses.

DIA is a unique public museum as Detroit retains ownership of its building and collection while a separate nonprofit institution manages its day-to-day operations. DIA’s collection includes major works by Pieter Bruegel the Elder (1525-1569), Henri Matisse (1869-1954), and Vincent van Gogh (1853-1890). Many of these masterpieces were donated by the city’s finest collectors, some of who have put restrictions on the works stipulating what DIA or the city can do with the works.

The bill, which was approved on a 5-0 vote, will now move to the full state Senate where it will be reviewed later this week.

In a last-ditch effort to help revive Detroit’s dismal economy, emergency manager Kevyn Orr has asked for an appraisal of the Detroit Institute of Arts’ (DIA) collection. While nothing has been finalized, Orr is considering whether the museum’s multi-billion dollar collection could be considered an asset to Detroit that could potentially be sold to help cover the city’s $15 billion debt.

Orr’s inquiry sparked an immediate reaction and DIA has hired bankruptcy lawyer Richard Levin of Cravath, Swaine & Moore to advise it in troubling situations and to protect the collection from any possible losses. Orr’s spokesman, Bill Nowling, assured the public that the appraisal is not a sign that they will be selling off the collection, an act that would surely be controversial, complicated, and mired by opposition. DIA is a unique public museum as Detroit retains ownership of its building and collection while a separate nonprofit institution manages its day-to-day operations.

While Nowling is adamant that Orr is not considering selling DIA’s collection, he did say that he would consider the museum’s holdings as assets of the city, especially as Detroit might be filing for bankruptcy. DIA’s collection includes major works by Pieter Bruegel the Elder (1525-1569), Henri Matisse (1869-1954), and Vincent van Gogh (1853-1890). Many of these masterpieces were donated by the city’s finest collectors, some of who have put restrictions on the works stipulating what DIA or the city can do with the works. If Orr does decide to sell works from DIA’s collection, it will undoubtedly prohibit the institution from receiving future donations and support.