Detroit Institute of Arts agrees to raise $100 million to bolster Detroit's pension funds
3:33 PM, Jan 29, 2014
3:33 PM, Jan 29, 2014
DETROIT (WXYZ) - The Detroit Institute of Arts has agreed to raise $100 million to help protect the pensions of the City of Detroit retirees and safeguard its own art collection.
The agreement was revealed in a statement by the Detroit Bankruptcy Mediators that was released by the federal court.
The statement goes on to read "The DIA is making this commitment not only to assist Detroit's retirees, preserve its art collection and help Detroit achieve a prompt and successful exit from bankruptcy, but also to help the people of Detroit, this region and our State turn a new page toward the goal everyone shares of a revitalized and renewed metropolitan area with a vibrant and enriching cultural life and heritage."
Not long after the mediators statement was released, the DIA also issued a news release on the $100 million fundraising effort.
Their statement says the money will be raised from corporate and individual donors, concentrating initial efforts on Detroit's corporate community.
The $100 million will be joined with $370 million that has been pledged by local foundations and $350 million that has been pledged by the State of Michigan in support of Chief Judge Rosen's plan to aid Detroit with emerging from bankruptcy.
"The DIA's management and volunteer leadership forthrightly agreed to accept this challenge, despite its difficulty and the many other fundraising commitments the museum manages annually," said Eugene A. Gargaro, Jr., chairman of the DIA Board of Directors in a news release. "We are hopeful this agreement will allow Detroit's bankruptcy to move forward smoothly as we all work toward a brighter and better future for Detroit."
The news release says none of the funds will benefit the DIA. Instead they will be directed to a third party, which will then disburse the funds as pension payment.
As part of the agreement, the city will transfer free and clear legal title of the museum building, the art collection and all related assets to the Detroit Institute of Arts. The DIA will then continue to operate with funds raised from its current donor base and from the tri-county millage.