Monday, November 17, 2014

6 AM Eye Opener - "Put Your Hands Up for Detroit"

Speaking of Detroit; I guess when you're flat broke, and nobody is willing to pay the water bill, making sure the government keep its hands on the art is a necessity:

In Detroit Bankruptcy, Art Was Key to the Deal
U.S. District Judge Gerald Rosen, who had been appointed as the chief federal mediator in the nation’s largest municipal-bankruptcy case, wrote the word “art” on the pad and drew a box around it. Then he drew an arrow from the box to where he had written the word “pensions.”

That concept forged in the summer and fall of 2013—to raise millions from foundations and other donors to pay for the art so the city could fund part of its pension shortfall—turned out to be the linchpin deal in Detroit’s Chapter 9 case that effectively ended Friday.

U.S. Bankruptcy Judge Steven Rhodes approved the city’s plan to trim $7 billion from its balance sheet, which once contained $18 billion in long-term obligations. Detroit also plans $1.7 billion in reinvestment to do such things as tear down blighted buildings and boost police and fire services.

The city’s problems are far from over. Financial experts question whether the city can remain solvent without a substantial cost savings and increased money from taxpayers driven by better revenue collection and new residents and businesses.

But the relatively brief 15 months Detroit spent in court would have been much longer—and likely much more expensive—without the so-called grand bargain involving the art collection, according to people involved in the negotiations.
I kind of see this as "give us the money or the kid gets it", but whatever, it's good to see the city extract some of that NGO money that otherwise going to waste.

Wombat-socho has the grand "Rule 5 Sunday: Wax Ecstatic" up and running at The Other McCain.

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