HomeMy WebLinkAboutResolutions - 2013.08.14 - 20954Miscellaneous Resolution #13217
BY: Commissioners Michael J. Gingell, District 1 and Kathy Crawford, District 9
RE: BOARD OF COMMISSIONERS — A RESOLUTION OF SUPPORT FOR THE
MAINTENANCE OF THE DIA ART COLLECTION
TO: Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS on August 7, 2012, the voters of Oakland County passed a .20 millage to support
a contract between the Oakland County Art Institute Authority ("Authority") and the Detroit
Institute of Arts, Inc. ("DIA''), the art institute services provider providing art institute services to
the Detroit Institute of Arts ("Museum"); and
WHEREAS as of August 7, 2013 the Oakland County tax levy raised an estimated $9.7 million
to support the DIA art services provider agreement and it is estimated that if the tax is levied
for the entire 10 year term approved by the voters that Oakland County taxpayers would
contribute some $98 million over the 10 year term to support art institute services for the
preservation and operation of the Museum; and
WHEREAS central to the adoption of the millage(s) was the binding contractual commitment
that voter approved tax dollars would only be used by the DIA to support the Museum as a
premier encyclopedic art museum, be used to by the DIA to enhance the Museum's world-
class art collection and/or be used by the DIA to insure the Museum was operated in
accordance with the operating agreement dated December 12, 1997 between the City of
Detroit as titled owner of the Museum and the Detroit Institute of Arts, Inc. (DIA), an art institute
services provider; and
WHEREAS the December 12, 1997 operating agreement specifically mandates that as a
material condition of the agreement, any funds received from disposition of works of art in the
City art collection, "shall be used solely to purchase other works of art for the City art
collection.."; and
WHEREAS in establishing the Oakland County Art Institute Authority the Oakland County
Board of Commissioners relied on the written contractual agreements between the City of
Detroit and the DIA mandating that any funds received from disposition of works of art in the
City art collection be used solely to purchase other works of art for the City art collection; and
WHEREAS the Oakland County Art Institute Authority, in determining to place before Oakland
County voters the question of providing taxpayer funds to support a contract between the
Authority and the DIA for the provision of art institute services, relied on the contractual
commitments set out in the December 12, 1997 operating agreement guaranteeing that any
funds received from disposition of works of art in the City art collection be used solely to
purchase other works of art for the City Art collection, which commitments were incorporated
into the June 2012 Services Agreement between the Authority and the DIA; and
WHEREAS the Authority expressly provided in the service agreement contract between the
Authority and DIA, Inc., that the Authority shall have no obligation to levy a tax in any year
should the City of Detroit abrogate, cancel, revoke, suspend, terminate or substantially modify
the operating agreement dated December 12, 1997 between the City and DIA, Inc.; and
WHEREAS the voters of Oakland County, in approving the August 7, 2012, tax levy, relied on
the provisions of the June 2012 service agreement adopting the December 12, 1997 operating
agreement, including the provisions mandating that any funds received from disposition of
works of art in the City art collection be used solely to purchase other works of art for the City
art collection; and
WHEREAS the City of Detroit has filed for bankruptcy protection under Chapter 9 of the U. S.
Bankruptcy Code; and
WHEREAS the City's Emergency Manager, the City's representative in bankruptcy, has
indicated that Museum art assets may be sold to benefit City creditors; and
WHEREAS City representatives in bankruptcy have reportedly indicated that DIA, Inc.
revenues may be sought to fund substantial new lease and/or licensing payments directed to
the City as a means to raise funds to satisfy City creditors under Chapter 9 or to fund City
services or otherwise rather than to benefit the Detroit Institute of Arts Museum; and
WHEREAS the Oakland County Board of Commissioners asserts that the use of any funds
received from the Oakland County Art Institute Authority to support new DIA, Inc. lease or
licensing obligations imposed by the City as a means to raise funds to satisfy City creditors
under Chapter 9, to support city services or otherwise and not for the benefit of the Museum,
would constitute an abrogation, cancellation, revocation, suspension, termination and/or
substantial modification of the operating agreement dated December 12, 1997, between the
City and DIA, Inc.; and
WHEREAS the Oakland County Board of Commissioners asserts that the use of any funds
received from disposition of works of art in the City art collection to satisfy City creditors under
Chapter 9 or otherwise would constitute an abrogation, cancellation, revocation, suspension,
termination and/or substantial modification of the operating agreement dated December 12,
1997 between the City and DIA, Inc.; and
WHEREAS the Oakland County Board of Commissioners also finds that such actions would
trigger the provisions of Article III, Section 3.1(B) of the Art Institute Services Agreement
between the Oakland County Art Institute Authority and the Detroit Institute of Arts, Inc, and
terminate any Authority duty to levy any further tax in support of the DIA service agreement;
and
WHEREAS for well over 100 years, businesses, individuals, foundations and philanthropic
organizations have recognized the unique value of the Museum and provided hundreds of
millions of dollars in major cash and art contributions, allowing the Museum to acquire and
maintain a world class collection of art that has been held and preserved essentially as a
public trust for both present and future generations; and
WHEREAS the Oakland County Board of Commissioners continues to believe that the
Museum and its collections are important, irreplaceable and indivisible parts of the cultural
fiber of the State and region.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners
hereby requests that all parties in interest recognize and acknowledge that the Museum and its
collections are irreplaceable, indivisible, state, regional and local public assets that must not be
made a part of any city bankruptcy sale.
Kathy Crawford, District 9
Commissioner
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BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners requests that
all parties recognize and acknowledge that equity demands, given the long-standing history of
state, regional and local, public and private funding and support, that the Museum and its art
collections be recognized and maintained as public trusts that must be preserved for the
benefit of present and future generations.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners hereby gives
notice that it takes the position that the use of any funds from a sale or licensing/leasing of art
works in the Museum collections for purposes other than the purchase of other works of art for
the City art collection would terminate any obligation on the part of the Oakland Arts Authority
to continue funding the Services Agreement or to continue the levy of any millage in support
thereof.
BE IT FURTHER RESOLVED that if a bankruptcy/other sale occurs or new lease/licensing
obligations imposed and any sale proceeds or Museum revenues are used for any purpose
other than to purchase other works of art for the City art collection or for the benefit of the DIA
Museum then the Oakland County Board of Commissioners would support the Oakland Arts
Authority in immediately stopping the distribution of any tax proceeds as may have been
already levied and collected but not yet forwarded to the DIA pursuant to the June 2012
Services Agreement and to immediately stop levying any tax in support of the Services
Agreement.
Mr. Chairperson, I move adoption of the foregoing resolution.
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Resolution #13217 August 14, 2013
Moved by Gingell supported by McGillivray to suspend the rules and vote on Miscellaneous Resolution
#13217 — Board of Commissioners — A Resolution of Support for the Maintenance of the DIA Art
Collection.
Vote on motion to suspend the rules:
AYES: Gosselin, Hatchett, Hoffman, Jackson, Long, Matis, McGillivray, Middleton, Quarles,
Runestad, Scott, Spisz, Taub, Weipert, Woodward, Zack, Bosnic, Dwyer, Gingell. (19)
NAYS: None. (0)
A sufficient majority having voted in favor, the motion to suspend the rules and vote on Miscellaneous
Resolution #13217 — Board of Commissioners — A Resolution of Support for the Maintenance of the DIA
Art Collection carried.
Moved by Gingell supported by Woodward the resolution be adopted.
AYES: Hatchett, Hoffman, Jackson, Long, Matis, McGillivray, Middleton, Quarles, Runestad,
Scott, Spisz, Taub, Weipert, Woodward, Zack, Bosnic, Dwyer, Gingell, Gosselin. (19)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolution was adopted.
I HEREBY APPROVE THIS RESOLUTION
CHIEF DEPUTY COUNTY EXECUTIVE
ACTING PURSUANT TO MCL 45,559A (7)
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lisa Brown, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and
accurate copy of a resolution adopted by the Oakland County Board of Commissioners on August 14,
2013, with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at
Pontiac, Michigan this 14 th day of August, 2013.
Lisa Brown, Oakland County