Kellogg Foundation Pledges $40 Million to Detroit Revitalization Efforts

Kellogg Foundation Pledges $40 Million to Detroit Revitalization Efforts

The in Battle Creek, Michigan, has announced a commitment of $40 million to a fund that has been created to support the revitalization of a bankrupt Detroit, boosting the total pledged to the fund by foundations to $370 million.

Kellogg joins the , the , and the , , , , , , and foundations in responding to an idea first floated by Chief U.S. District Judge Gerald Rosen that local and national foundations create a fund that would be used to help the city honor its pension commitments and prevent the liquidation of the ' collection. In addition to its financial commitment, Kellogg has offered to actively collaborate with civic leaders and philanthropic partners as the city struggles to emerge from bankruptcy.

"We see this as an investment in Detroit, its children and families, and our shared future," the Kellogg Foundation said in a statement. "We have a strong belief that people have the inherent capacity to solve their own problems, and our support is meant to come alongside and strengthen the opportunities for success."

The city's access to the fund is contingent in part on it reaching an agreement with its creditors that would remove DIA from city control and establish the museum as an independent nonprofit. On Wednesday, DIA said it would raise $100 million over twenty years for the fund, in exchange for which control of the museum will be transferred from the city to the nonprofit that operates it. While details of the overall agreement are still being negotiated, DIA is moving forward with fundraising as the talks continue. Michigan governor Rick Snyder also has pledged $350 million in state funds over twenty years to the rescue effort, although the availability of those funds hinges on a larger bankruptcy settlement.

"The mediators are deeply appreciative of the DIA's decision to step forward in such a significant way as a partner in this effort to help protect pensions of Detroit’s retirees and safeguard for our city, region, and state the DIA's treasured art collection," said Rosen. "We all recognize the magnitude of this great undertaking and appreciate the depth of the DIA's commitment to the City of Detroit and its retirees. As the mediation team continues to work toward a complete, fair, and balanced agreed-upon Plan of Adjustment, the DIA's significant undertaking will play an important role in our efforts."

"." W.K. Kellogg Foundation Press Release 01/28/2014. "." Detroit Institute of Arts Press Release 01/29/2014.