Automakers to help save Detroit's art treasures - New York News

Automakers to help save Detroit's art treasures

Posted: Updated:
DETROIT (AP) -- General Motors, Ford and Chrysler are driving into Detroit's bankruptcy reorganization by pledging $26 million to help support retiree pensions while keeping the city's art treasures off the auction block, officials announced Monday.
 
The money will go to the Detroit Institute of Arts as part of its $100 million commitment to what what's being called a "grand bargain" to resolve the largest public bankruptcy in U.S. history. It's helping keep city-owned pieces in the museum off the auction block as some creditors demand they be sold to pay off some of Detroit's billions of dollars in debt.
 
Of the $26 million, $10 million will come from Ford Motor Co., $6 million from Chrysler Group LLC, $5 million from General Motors Co. and $5 million from the General Motors Foundation.
 
"The city needs more and specifically the city needs cash," Reid Bigland, head of U.S. sales for Chrysler, said during the announcement at the museum.
 
Last week, the Michigan Legislature approved sending $195 million for Detroit's two retirement systems, and Gov. Rick Snyder has said he will sign the bill. A dozen foundations also have committed about $360 million toward state-appointed emergency manager Kevyn Orr's plan of adjustment, which is Detroit's roadmap through and beyond bankruptcy.

As part of the deal, the city's art museum and its assets would be transferred to a private nonprofit.
 
Snyder called the corporate and foundation support the "fundamental core" of Detroit's comeback, which he described as going on for a while.
 
"It's a fragile comeback," he said. "Our work is not done. We need to follow through."
 
About 2,800 city-owned artworks have been valued at between $454 million and $867 million.
 
Orr has said the city's debt is $18 billion or more with $5.7 billion in unfunded retiree health care and $3.5 billion in unfunded pension liabilities.
 
The city already has reached a deal -- brokered by mediators -- that would protect the art forever and limit pension cuts for approximately 30,000 retirees and city workers to no more than 4.5 percent instead of as much as 34 percent.  If the retirees and employees do not support it, the money from the state, foundations and DIA pledge would be made moot and deeper pension cuts could become inevitable.
 
Retirees have until July 11 to vote on the city's plan. The trial on the city's case will be held this summer.

  • Local NewsLocal NewsMore>>

  • Two teens shot and killed on Detroit's west side

    Two teens shot and killed on Detroit's west side

    Monday, September 1 2014 12:20 AM EDT2014-09-01 04:20:04 GMT
    Two families are grieving after the bodies of two teenagers -- a boy and a girl -- were found in the street Sunday morning on Detroit's west side. Both were shot and killed.
    Two families are grieving after the bodies of two teenagers -- a boy and a girl -- were found in the street Sunday morning on Detroit's west side. Both were shot and killed.
  • Traveling Vietnam memorial wall stops in Hamburg

    Traveling Vietnam memorial wall stops in Hamburg

    Monday, September 1 2014 12:07 AM EDT2014-09-01 04:07:54 GMT
    It was a somber evening Sunday in Hamburg in Livingston County. A large crowd turned out to see the Vietnam traveling memorial wall.
    It was a somber evening Sunday in Hamburg in Livingston County. A large crowd turned out to see the Vietnam traveling memorial wall.
  • Man claims he was beaten by discount store clerk

    Man claims he was beaten by discount store clerk

    Sunday, August 31 2014 11:56 PM EDT2014-09-01 03:56:19 GMT
    "He put his hand on me and slammed me into the racks, put me in a (mixed martial arts) arm bar, then put me in a choke hold," Lacey Wheeler said.
    "He put his hand on me and slammed me into the racks, put me in a (mixed martial arts) arm bar, then put me in a choke hold," Lacey Wheeler said.
  • Download the FOX 2 Apps


  • FOX 2 News Five-Day Forecast
  • Local NewsLocal NewsMore>>

  • Suspect, rookie officer both wounded in gunfire

    Suspect, rookie officer both wounded in gunfire

    Sunday, August 31 2014 10:11 PM EDT2014-09-01 02:11:38 GMT
    Authorities say an early morning gunfire exchange on a Brooklyn street has left the suspect hospitalized and a police officer with a graze wound.
    Authorities say an early morning gunfire exchange on a Brooklyn street has left the suspect hospitalized and a police officer with a graze wound.
  • New MTA bus routes take effect

    New MTA bus routes take effect

    Sunday, August 31 2014 9:51 PM EDT2014-09-01 01:51:36 GMT
    MTAMTA
    The MTA has new bus routes throughout the 5 boroughs. 
    The MTA has new bus routes throughout the 5 boroughs. 
  • 3 hurt in lightning strike as storms batter NYC area

    3 hurt in lightning strike as storms batter NYC area

    Sunday, August 31 2014 9:47 PM EDT2014-09-01 01:47:41 GMT
    Heavy thunderstorms swept through the tri-state on Sunday causing flash floods and lightning strikes that injured 3 people. The three men were struck at Orchard Beach in the Bronx Sunday afternoon and were being treated at a local hospital. Meanwhile, various Labor Day weekend celebrations were interrupted, delayed and even canceled as the U.S. Open tennis tournament had to be postponed and the Electric Zoo musical festival on Randall's Island had to be prematurely shut down.
    Heavy thunderstorms swept through the tri-state on Sunday causing flash floods and lightning strikes that injured 3 people. The three men were struck at Orchard Beach in the Bronx Sunday afternoon and were being treated at a local hospital. Meanwhile, various Labor Day weekend celebrations were interrupted, delayed and even canceled as the U.S. Open tennis tournament had to be postponed and the Electric Zoo musical festival on Randall's Island had to be prematurely shut down.
Powered by WorldNow
Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices