CHICAGO - The Detroit City Council Thursday unanimously approved a resolution to transfer the art collection at the Detroit Institute of Arts to an independent trust that will protect it from the city's bankruptcy and any post-bankrupt fiscal woes.
The vote is part of a so-called grand bargain approved by the Michigan Legislature earlier this week.
The $816 million deal includes a $195 million contribution from the state, $366 million from a group of private foundations and $100 million from the DIA. All the money will go toward the city's pensions in exchange for transferring the DIA's collection to the charitable trust. The bargain is key to Detroit's plan of confirmation as well as settlements the city has won with most of its major labor creditors.
The council approved the resolution by a vote of 8-0.
Detroit's financial creditors are challenging the deal, saying it undervalues the art collection and unfairly favors pensioners over other creditors.