Detroit Businesses Pledge $26.8 Million Toward 'Grand Bargain'

Detroit Businesses Pledge $26.8 Million Toward 'Grand Bargain'

The Detroit Institute of Arts has announced pledges totaling $26.8 million from corporations toward its commitment to raise $100 million as part of a "grand bargain" designed to offset pension and healthcare costs for retired city employees and prevent its collection from being sold to meet the bankrupt municipality's obligations.

The pledges include $10 million from Roger S. Penske and the Penske Corporation; $5 million from DTE Energy; $5 million from Quicken Loans and the Rock Ventures Family of Companies; $2.5 million from BCBSM (Blue Cross Blue Shield Blue Care Network of Michigan); $1 million each from Meijer, Comerica Bank, and JPMorgan Chase; $800,000 from Consumers Energy; and $500,000 from the Delta Air Lines Foundation. The latest announcements, which include some pledges made earlier but not publicly announced, boost to nearly $80 million the total amount raised toward DIA's $100 million goal.

A core element of Detroit emergency manager Kevyn Orr's proposed restructuring plan, the grand bargain would direct $816 million in foundation, state, and DIA-raised funds over twenty years to shoring up pensions for retired city employees while transferring ownership of DIA to a nonprofit.

"We're pleased to support Detroit's 'grand bargain', which helps Detroiters, protects the DIA collection, and ultimately advances our city's ability to successfully emerge from bankruptcy on solid footing," said Dan Gilbert, founder and chairman of Rock Ventures and Quicken Loans, Inc. and a 2012 signatory to the Giving Pledge.

"As a bank whose roots in Detroit date back to 1849, Comerica is proud to join these leading businesses in taking this historic step to help our city and one of its most iconic cultural institutions," said Michael T. Ritchie, president of Comerica Bank-Michigan. "And, personally, as someone who grew up in Detroit as the son of a Detroit police officer, I'm thankful that through our collective efforts, we're helping to support those who put their lives on the line and who dedicated their lives in service to our great city."