Metro and State Oakland County

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1 Page 1 of 7 eedition Stay Connected Customer Service Advertise C Metro and State Oakland County News Sports Business + Autos Entertainment + Lifestyle Opinion Multim TRENDING TOPICS TIGERS WIN DETROIT TAXES DREAM CRUISE DEANDRE LEVY DANNY DEKEYSER WAYNE C Home Metro Oakland County AUGUST 13, 2013 AT 3:48 PM Oakland County moves to protect DIA tax from Detroit creditors CHAD LIVENGOOD DETROIT NEWS LANSING BUREAU 33 COMMENTS Lansing Oakland County officials plan to take their first step next week to safeguard property taxes meant for funding the Detroit Institute of Arts from getting in the hands of the city s creditors. The Oakland County Art Institute Authority has scheduled a meeting next Tuesday to consider a resolution that would suspend collection of the 0.2- mill property tax if Detroit sells off any of the DIA s art or allows creditors to seize the tax revenue to satisfy debts. We bought in in good faith that this would be a record-breaking contribution of regional cooperation that was supposed to secure the art institute s future and it can t be some cookie jar to pay the bad debts of the city of Detroit, said Thomas Guastello, chairman of the Oakland County Arts Institute Authority. It s just not what anyone had in mind and it s not permitted in the contract. Recommend Print Share AA Oakland County Executive L. Brooks Patterson said the resolution is a preemptive strike against Detroit and its creditors as the city prepares to fight to persuade bankruptcy Judge Steven Rhodes the city is eligible for Chapter 9 bankruptcy protection.

Page 2 of 7 Oakland County officials have scheduled a meeting next week to safeguard property taxes meant for funding the Detroit Institute of Arts.

2 Page 2 of 7 Oakland County officials have scheduled a meeting next week to safeguard property taxes meant for funding the Detroit Institute of Arts. (Bill Pugliano / Getty Images) That would be a tremendous betrayal of public trust. That s not what that tax was passed for, Patterson told The Detroit News on Tuesday. We will take steps to suspend the tax levy. We re clearly within our rights, and we re going to exercise that. Detroit Emergency Manager Kevyn Orr s legal team has floated an idea of letting the museum keep its art but require it to pay a $20 million annual lease for 30 years essentially making the DIA forfeit most of the $23 million it s generating from the special property tax tri-county voters approved last year. Patterson said he believes Orr is backing away from that idea. I think people are breathing a little easier today because the potential of that occurring has been tempered, Patterson said. Orr and Gov. Rick Snyder have repeatedly said the DIA s art is not for sale, but have not ruled out an auction of the assets as part of an overall plan to pare down debt and restructure the city s finances. Some bankruptcy experts have speculated creditors could try to seize the annual millage payouts for the DIA and Detroit Zoo.

3 Page 3 of 7 Macomb County Executive Mark Hackel also has signaled his county would pull its support for the DIA if any of the 60,000 artifacts are sold at auction to help pay off Detroit s estimated $18.5 billion in debt. Wayne County Executive Robert Ficano recently told The News any decision to move toward repeal of the county s portion of the tax would depend on how much art was stripped from the museum. The Oakland County Art Institute Authority, an entity set up to disburse the new DIA millage money to the Detroit museum, posted a notice for next week s meeting on the county website Monday. The panel s Aug. 20 meeting is scheduled to begin at 8:30 a.m. in the Oakland County Board of Commissioners legislative study in building 12E at 1200 N. Telegraph Road in Pontiac. Detroit News Staff Writers Lauren Abdel-Razzaq and Michael H. Hodges contributed. Join the Conversation The Detroit News aims to provide a forum that fosters smart, civil discussions on the news and events that we cover. The News will not condone personal attacks, off topic posts or brutish language on our site. If you find a comment that you believe violates these standards, please click the "X" in the upper right corner of the post to report it. POLICIES Community Policy Privacy Policy Terms of Service

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6 Page 6 of 7 33 comments Cosmo Tweed Top Commenter Works at Conservative Republican Since there is a question about it's use, why not just eliminate it and have a revote... Reply 13 Like August 13 at 11:34am Edwin Denby Top Commenter Detroit, Michigan There is no question Reply 2 Like August 13 at 1:03pm John Garfield Top Commenter They'll just do it in a primary again, for the fix. Reply 1 Like August 13 at 1:13pm Bill Mullan Michigan Top Commenter Media and Communications Officer at Executive Office, Oakland County, John Garfield is seriously mistaken. Mr. Patterson supported the DIA millage because it is the heart and soul of the region. As a world-class museum, it has a positive impact on attracting economic development and sustaining the region's quality of life, and most Oakland County voters agreed. As is always the case with the Patterson administration, after the millage passed, Oakland County thought ahead to ensure that taxpayers are protected. The Oakland County Art Institute Authority negotiated a clause in its contract with DIA Inc. that if any of the DIA's art is sold for any other reason than to purchase more art or improve the collection, the Art Authority can exercise the option to stop collecting the tax. The pending resolution will put the DIA and City of Detroit on notice that Oakland County shall exercise that option in the event that art is sold to benefit city coffers. Reply 11 Like August 13 at 2:23pm More From Oakland County Joseph F. Overaitis Top Commenter Detroit, Michigan WED, AUG 14 WED, AUG 14 TUE, AUG 13 For most this was basically the warning shot Recalled Troy mayor Daniels files to run Waterford Detroit Twp. and travel the DIA. If they Detroit think they Zoo can home use to a new short term fix by effecting title to the art it will end up effecting the long term obligation from the agent books trip to state red panda twins for City Council region in the form of the DIA millage. The question I would ask Mr. Mullan is if this would be an prison opportunity for the DIA to be reclassified and controlled by regional authority in much the same Recalled Troy mayor Janice TUE, AUG 13 way that cobo hall is being run? Mr. Patterson took the lead on cobo hall and I wonder if history is repeating Daniels itself. has filed to run for WED, AUG 14 Oakland County moves to City Council this fall, joining Vehicle crashes into protect DIA tax from Reply 5 Like August 13 at 3:16pm 10 other candidates vying for Waterford Twp. home, 4 Detroit creditors hurt Eric three Smith seats. Jones Hendrickson Top Commenter TUE, AUG 13 Ease up Bill, even if John is wrong it doesn't WED, mean AUG your 14 right. The DIA is FAR Woman FAR FAR may from have the heart and soul of the REGION. If that were Memorial the case, highway it wouldn't planned need its own committed special tax suicide on every near property tax paying citizen in three counties. to honor It needed West the Bloomfield tax money due tech to its company's own inability parking to lot provide a product that appealed to more Twp. people officer and more often as well as in a bit Auburn of its own Hills mismanagement. The tax on my property is really going to help support a place I have zero More from The Detroit News Subscribe

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