DIA Artwork Under Attack By Judge Rhodes

By mousa

Just when the Detroit Institute of Arts and Detroit’s Emergency Manager, Kevin Orr, thought their issues with the monetary value of the artwork in the prestigious museum was over, Judge Steven Rhodes brought the issue back to light.

Earlier this month, Judge Rhodes questioned Kevin Orr on his decision to not sell the artwork currently on display at the DIA. With over 18 days completed in the Detroit bankruptcy trial, this was a question that many did not see coming to light. However, Judge Rhodes insisted that Orr explain his reasoning for moving away from the DIA, in greater detail.

Specifically, Judge Rhodes asked, “Why not monetize the art?” This question came at an interesting point in the trial, as Detroit has officially decided upon placing the museum in a trust, to safeguard its’ amenities from being sold. Likewise, in conjunction with this decision, nonprofits, donors, and government officials have pitched in over $800 million, with the DIA, to compensate for pension cuts.

Orr was quick to defend his actions, explaining that any move to impede upon the artwork or integrity of the DIA would be harmful for the city of Detroit. Orr explained that selling any of the artwork out of the DIA would result in a serious blow and damage to the prestige of the DIA, and create an uproar between residents and patrons.

However, the Financial Guaranty Insurance, Co. has different ideals and pathway for the city to recoup from its’ bankruptcy woes. The FGIC believes that the DIA should consider selling artwork to help makeup for lost pensions and benefits. While the DIA artwork was valued at $8 billion, the FGIC feels that this money should be allocated more properly to assist the city of Detroit and its’ services.

Orr continues to stand by his decision, by explaining that the Chapter 9 bankruptcy that Detroit is enduring does not require the selling of assets for the city. Additionally, Orr infers that stepping into the territory of DIA artwork would result in extremely costly legal fees and time.

Orr also went onto explain that his perception and knowledge of the city and what it truly needs has evolved during his time in Detroit. Orr states that the compromise reached between the city and the DIA, “provides some value [he] did not have at the beginning of this.”

While proceedings continue into late October, addressing more debt and financial agreements, it is safe to assume that Judge Rhodes will not be holding anything back from Orr or the rest of the Detroit bankruptcy team.

Next Post

    Latest Posts

    A basic lease agreement must be detailed to protect rental properties and owners

    What to Include In a Basic Lease Agreement

    Read Full Post
    Aerial view of downtown Detroit, Michigan

    Why Detroit is an Underrated Goldmine for Real Estate Investors

    Read Full Post
    Someone in a suit holding a piece of paper that says, Are you covered

    The Different Types of Insurance for Real Estate Investors

    Read Full Post
    Property investment and house mortgage financial concept

    5 Property Investment Tips to Grow Your Portfolio

    Read Full Post
    icon_2

    Subscribe To
    Receive The Latest News

    Similar Posts

    By mousa  |  Aug 3 2014

    Detroit Institute of Art Worth $4.6 Billion

    An updated appraisal of the entire Detroit Institute of Art (DIA) collection has now been valued at ...

    By Own It Detroit  |  Feb 7 2024

    The Beginners Guide To Investing in Rental Properties

    Rental properties come in a variety of shapes and sizes, and the options for your next investment is...

    By mousa  |  Apr 23 2015

    Determining If Your Market Will Remain Profitable

    Often times, you’ll hear us talk about the term ‘yield’ as a way of determining how much of your inv...