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August 27, 2014

Sell art improve schools and improve Detroit's future

“The museum is owned by the city, and the city is, in fact, in bankruptcy. That asset lawfully should be available to assist in the plan of exit,” said Ian Peck, Art Capital’s chief executive. “But we also believe that this art is a national treasure and should be preserved as such.”

"As Detroit prepares to defend its plan next week to exit bankruptcy, city leaders have received an unusual offer: Why not mortgage all the Van Goghs, Picassos and other works in the Detroit Institute of Arts? A company called Art Capital, which makes loans backed by artwork, has told the city it is willing to lend it up to $3 billion, roughly 10 times the exit financing Detroit is now contemplating, using the museum’s art as collateral." Detroit Mum on Proposal to Use Its Art as Collateral, New York Times, August 26, 2014
With this deal Detoit could leave the agreement in place with the city retirees and provide funds to make Detroit Public Schools the best district in the state. Why wouldn't they want to do it?

In the same New York Times article Bill Nowling said. “The city supports and is committed to the grand bargain,” The city should be committed to the best deal possible and it appears the Grand Bargain may not be so Grand.

David Skeel, who teaches bankruptcy law at the University of Pennsylvania, said "Remember, there’s a great impetus, as you get to the end of a Chapter 9 bankruptcy, to confirm the plan,” he said. “But more important than confirming the plan is doing the right thing.”

The right thing to do is sell the art, improve Detroit's schools and save Detroit's future in the process.

1 comment:

  1. If the art is a national treasure let the federal government buy it and store it at the DIA in Detroit.

    ReplyDelete