DIA Collection Being Valued

Although there are numerous reports about the state of the collection at the city owned Detroit Institute of Art, it still remains unclear as to the total value of the large and important collection.

The Chicago Tribune published a Reuters article stating the fire sale value of the collection was estimated at $2.5 billion. I am not sure how the figure was arrived at, who developed it, and if it is a viable estimate. There is much talk of an appraisal being conducted so the city and creditors at least knows the value of the collection, although this does not mean the collection would be sold.

I have no word or indication of who or whom might be working on the valuation.  If any AW readers know of any appraisers involved in the DIA potential valuation, please let me know.

The article is interesting because it does touch on some of the issues with selling a city owned collection held in the public trust, selling under bankruptcy terms and regulations, selling unique pieces and dealing with the sheer volume of important works.  All great questions and discussion topics for appraisers.

The Chicago Tribune reports

Estimating the value of such a cache of world-renowned pictures and sculptures is impossible as all its masterpieces are unique. Nonetheless, some guess a fire sale would raise about $2.5 billion.

This prospect came up when the official hired to sort out Detroit's financial mess asked for a valuation of the collection in the museum, perhaps with a view to selling off its Van Goghs, Picassos, Matisses, Rembrandts and the rest,

The man charged with balancing the books says it is premature to talk of selling the art, but claims city creditors, who will be asked to take cents on the dollar in lieu of what is owed them, are bound to demand that all the city's assets, including the DIA collection, are sold before they will agree terms.

There are a number of significant practical details about selling a large public art trove. Under the federal bankruptcy code's Chapter 9, neither a judge nor creditors can force the city to sell its assets, so another prolonged and expensive legal battle would likely ensue. A 2012 tax millage, in which residents in three Detroit neighborhoods agreed to pay extra taxes to support the collection, may have to be rescinded.

There can also be stiff legal inhibitions against a sale in the donors' deeds, which would entail elaborate and costly court hearings to unpick. That happened at the Rose Art Museum, in Waltham, Mass., in a battle between its owner, Brandeis University, and art donors over the sale of its important modern art collection, including paintings by Jasper Johns, Roy Lichtenstein and Robert Rauschenberg. That dispute was just settled after four expensive years, with the university abandoning the effort to sell its art, which has been described as "the finest of such collections in New England," to pay down its debt.

There is a problem, too, about dumping too many high-quality pictures like Van Gogh's self-portrait, Brueghel's The Wedding Dance and Matisse's The Window onto the market at the same time. Even more troubling, for it would also entail destroying the integrity of the DIA's building, would be the removal of the extensive mural cycle by Diego Rivera, which he painted to adorn the museum's lobby.

To maximize the price, the city would have to drip-feed the collection to the auctioneers to give private collectors and art museums time to collect their breath -- and find the asking price. It would be anything but a quick fix.

Source: The Chicago Tribune