City Council OKs charitable trust for Detroit art
6/5/2014DETROIT — The Detroit City Council has approved a resolution to move artwork threatened by the city’s bankruptcy into a charitable trust.
The 8-0 vote today follows the Michigan Senate’s passage this week of a bill allocating $195 million to help shore up Detroit’s two retirement systems.
That money will be part of a $660 million pool that includes funding from foundations and the Detroit Institute of Arts. The plan to help preserve retiree pension benefits while protecting city-owned pieces in the art museum is key to Detroit’s bankruptcy restructuring.
About 2,800 city-owned pieces of art have been valued at between $454 million and $867 million. Some creditors want Detroit to sell the art to help settle the city’s debt.
The transfer to a trust would come after the city exits bankruptcy.