Michigan Governor to Push Plan to Protect Detroit Art, Pensions: Court

[elleng]

Source: nyt/reuters

Michigan Governor Rick Snyder is set to announce "significant state participation" in a plan to aid Detroit's art museum and public pensions, mediators said Wednesday, as the city works through its historic bankruptcy.

The move by the state's Republican governor comes after plans for state involvement first were reported in local media last week. At the time, Michigan House of Representatives Speaker Jase Bolger, a Republican, indicated he would not support state participation in any direct bailout of Detroit.

Snyder's spokeswoman, Sara Wurfel, confirmed the governor and Republican legislative leaders will hold a press conference concerning Detroit later on Wednesday.

The U.S. Bankruptcy Court mediators' statement said the governor intends to work with the state legislature to gain support for the plan.


Read more: http://www.nytimes.com/reuters/2014/01/22/us/politics/22reuters-usa-detroit-bankruptcy-governor.html?hp

[yeoman6987]

1. Interesting

Could it be guilt or what? I am sorry to be so suspicious but something is up and it probably is not good.

[okaawhatever]

2. I don't think you're "so suspicious" I think you've probably correct. Snyder's previous

actions are a 180 from this statement. I don't think his motives are good, either. If they are good it's only because the GOP is looking for him in 2016 Presidential run.

[Union Scribe]

3. You're right. I'm VERY suspicious.

The guy is sneaky and very unpredictable, which is an unsettling combo. I don't know if it's election-year politicking or something else, but I'd wager it's not coming from the goodness of his heart.

[mtasselin]

4. election

This is election year and he doesn't want to get tossed out on his ass.

[llmart]

10. Bingo! My thoughts exactly.

He saw how people were viewing this move to sell the art, decided he needed some of those voters to see him as unbiased, so he changed his tune.

I wouldn't trust him as far as I could throw him.

[bucolic_frolic]

5. Musings

I'd bet this rescue has been planned all along with

Governor Rick Snyder as White Knight and Patron of the Arts

to grow his own political future and popularity

[elleng]

6. Don't know about Michuganas,

but such game sure as heck wouldn't work here!!!

[Demeter]

7. He's such a shit

This isn't gonna get him any points from either party, IMO. The people who hate Detroit are gonna be pissed, and the people who love Detroit are not gonna be reconciled.

[madrchsod]

8. from what i have read the art is a public trust

i`m really not sure if the court can liquidate something held in the public trust. who actually owns the art work and who is going to value the paintings and how are they to be sold. the court could sell the building but if i remember correctly there is famous art work painted on the building. the state could buy the building and it`s art taking it out of the public trust.. then he can sell it to his friends!

[happyslug]

9. The real key is what restrictions are on the sale of those items

Most people give gifts to museums without any restrictions, but others often puts restrictions on such gift, such as retaining the right to get the art object back at some nominal cost if it is ever put up for sale. i.e. A Million Dollar painting, may have to be sold for $1 back to the family of the person who gave the painting to Detroit for it was given with that restriction.

Given the value of what we are talking about, I would NOT be surprised if most of the painting and other assets the city possesses may be subject to such restrictions, i.e. the City can NOT sell them and neither can its creditors WITHOUT the permission of the heirs of the person who gave them to the city.

The court can also hold that the items were for public use and thus if sold, the assets must be sold for public benefit NOT to pay off debts. The City can sell them, but the proceeds can NOT be used to pay off debts but for other projects in the city.

Remember we are talking about Municipal Bankruptcy, and the first creditors are those creditors that needed to keep the city running. i.e. current employees. Everyone else is behind them when it comes to payments.

Finally, Bankruptcy is an action in Equity not Law. What that means is the rule is to be fair to EVERYONE not just the people demanding payment. Worse, the rule in Equity is that to get Equity, one must be willing to do Equity, i.e. you must try to be fair to everyone else involved in the bankruptcy not just yourself. Thus a sale of the items may not be viewed as "Fair" to the citizens of Detroit, but a transfer to the State with the State paying their fair value would be equitable (Thus the sale of the Paintings may take on a two step process, something the Governor may see as the only way to actually sell these paintings).

Web cite on this bankruptcy:
http://www.mieb.uscourts.gov/apps/detroit/DetroitBK.cfm

Here is the ORDER denying a request for an Order to order the City to cooperate with creditors as to valuing its Art Collection:

http://www.mieb.uscourts.gov/sites/default/files/detroit/docket2534.pdf

List of all Orders in this Bankruptcy:

http://www.mieb.uscourts.gov/apps/detroit/SelectedOrder.cfm

[madrchsod]

12. thanks for more info on this...

[alp227]

11. Detroit Free Press article

Snyder: State would pledge $350M to save Detroit pensions, DIA artwork