Is it possible the state might help finance a fund to help rescue the Detroit Institute of Arts from a bankruptcy fire sale?
Well, just maybe, or maybe not...or...
Still, the mere fact that Gov. Rick Snyder mentioned the possibility during an editorial board meeting with the Detroit News should raise some hope.
Chad Livengood of the Detroit News reports:
Gov. Rick Snyder said Thursday that state financial support of a fund to rescue the Detroit Institute of Arts from a bankruptcy fire sale could help broker a deal to settle the city’s debts.
“I would say it’s much more likely that you could find an inclination of people to do that if was part of settling the whole (bankruptcy) case, if it really said this would wrap things up,
U.S. District Judge Gerald Rosen is trying to broker a deal in which private foundations would contribute up to $500 million toward a fund to protect the DIA’s city-purchased art from unsecured creditors trying to recover more than $11 billion owed by Detroit.
The thought is that the fund could then be used to help the city pay pensioners.
But the News writes:
Snyder cautioned that getting his fellow Republicans who control the Legislature to pledge state tax dollars toward the DIA would be “very challenging” if it’s perceived the money is being used for “paying debt.”
“There would be a lot of terms and conditions and I don’t think the foundations are simply writing checks,” Snyder told The News. “I wouldn’t be closed-minded to (contributing to a settlement) because that’s asking a different question than simply saying, ‘Hey there’s debts, are you going to chip in some dollars toward paying off a debt.”
