Friday, June 20, 2014
Fate of Detroit’s “Grand Bargain” In Hands Of City Workers, Pensioners
The fate of Detroit’s “Grand Bargain,” an effort to save the Detroit Institute of Art’s collection from the auction block — and to which the Ford Foundation has pledged $120 million and Andrew W. Mellon Foundation $10 million — rests in the hands of the city’s pensioners and workers.
The state's contribution of $195 million, along with $366 million from foundations—including Kresge ($100 million) and Andrew W. Mellon ($10 million) and a $100 million pledge from the Detroit Institute of Arts, would replace hundreds of millions being cut from retiree pensions, while stopping bond insurers and other creditors from forcing the sell-off of city-owned art such as Van Gogh's "Self Portrait."
"Serendipity was in our favor," Ford Foundation President Darren Walker said. "This is unprecedented in the history of American philanthropy that this number of major institutions would be galvanized to help solve the challenges of a once-great American city."
Retirees and city workers have until July 11 to vote on the proposal, which is included in state-appointed emergency manager Kevyn Orr’s plan for Detroit’s restructuring....