DETROIT (AP) — Detroit may have to rely on the generosityof strangers to keep its impressive art
collection that was amassedwith taxpayer dollars in better times.The bankrupt city isexpected to learn this
week the value of roughly 2,800 of its pieces atthe Detroit Institute of Arts when New York auction house
Christie’sdelivers its final report to Kevin Orr, the state-appointed emergencymanager who currently runs
the Motor City’s finances.Christie’s,which has been poring over the collection for months, said it
willinclude recommendations for how Detroit might make money whilemaintaining ownership of some of its most
valuable pieces — includingDegas’ "Dancers in the Green Room," Pisano’s "The Path" and
Renoir’s"Graziella." But the city may have to sell off works many considerintegral to the cultural
soul of the city in order to help repaycreditors, including retired public workers whose pensions could take
ahuge hit.Orr had warned museum officials of the works’ potential fate, creating an outcry in the art
community here and elsewhere."I think it’s so important that we can’t let it fail," said
68-year-old philanthropist A. Paul Schaap.Schaapand his wife, Carol, have pledged $5 million to help offset
expectedlosses by city pensioners in Orr’s restructuring plan for Detroit.Alocal foundation also has stepped
up, heeding a call by U.S. DistrictJudge Gerald Rosen, who is acting as chief mediator between Detroit
andits creditors. Rosen is reaching out to foundations to raise $500million to keep the artwork from being
sold."The idea that wewould sell even one piece of art … would be so demoralizing to thiscommunity
that we really can’t imagine the effect," Schaap told TheAssociated Press last week. "On the other
hand, we really don’t want tosee the pensioners hurt. They have a problem here, too, that we reallyhave to
address."Citing debt of at least $18 billion, as well asrising pension and health care costs and a
revenue stream too small topay the city’s bills, Orr filed for bankruptcy in July. A federal judgeon Dec. 3
allowed Detroit to become the largest U.S. city to enterbankruptcy.Orr is expected to present a plan of
adjustment forfiscal restructuring to the court in early January that will include hisrecommendations for
the art."Everything is on the table," Orrtold The Associated Press on Thursday. "If there’s
money in hand, thenwe’ll re-address what’s on the table. If there’s a proposal, it is verywelcome. We hope
it comes to fruition. We hope it is significant, andthat perhaps will change the discussion."But right
now I don’twant to mislead anyone: Cash is king. Until I have cash in hand, or afirm proposal or a
definitive agreement everything is on the table."Evenselling off the entire city-owned collection may
not be enough.Christie’s has determined the fair market value of all the city-ownedpieces is between $452
million to $866 million. Detroit’s two employeepension funds are short $3.5 billion, according to
Orr.Christie’salternatives to selling the art include using it as collateral tosecure loans or lines of
credit and creating a partnership with anothermuseum where the art would be leased out on a long-term
basis.Theauction house also said the city could establish a trust from whichU.S. museums "rent"
the city-owned art. Minority interests would be soldto individual museums. Revenue from the sale of these
shares would bepaid to Detroit."They all seem like feasible alternatives to anoutright sale, assuming
of course that there are counterparties willingto engage in the outlined transaction and that the monetary
return fromthe transaction is not so significantly less than the monetary returnfrom an outright sale that
all creditors rebel," said John Monaghan, apartner in Boston’s Holland & Knight law firm.Bruce
Babiarz, aspokesman for Detroit’s Police and Fire Retirement System, saidpensioners welcome any support from
the private sector. That pensionsystem has about 8,500 members and, along with the General RetirementSystem,
has been in court-ordered mediation sessions with the city."Theissues of monetizing the artwork of the
DIA or selling elements of thecollection outright are matters for the emergency manager to
decide,"Babiarz said. "The pension funds are creditors of the city of Detroitand the city has not
made its obligatory payments to the pension fundsfor more than a year because of the city’s
insolvency."Schaap hopes Rosen’s appeal to foundations and others for donations does the trick in
offsetting losses and helping retirees.TheDIA’s art and city retirees "are two kind of heart-rending
issues," headded. "Unfortunately they’ve sort of come together as a competitionbetween the
two."Copyright 2013 The Associated Press. All rightsreserved. This material may not be published,
broadcast, rewritten orredistributed.