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Detroit bankruptcy documentary debuts on streaming; filmmaker looks back on 11th anniversary of bankruptcy filing

Centennial, Detroit

Sam Katz

Sam Katz

The Kresge-supported film Gradually, Then Suddenly, debuts on multiple streaming services on July 18, the 11th anniversary of the day Detroit declared bankruptcy. Sam Katz, the film’s executive producer, reflects on the lessons of that time featured in his film.

The exit from bankruptcy for a cash-starved creditor was made possible through ‘The Grand Bargain,’ a unique and unprecedented partnership that brought together a huge infusion of cash from philanthropy, arts patrons and the State of Michigan. It was used to fund pensions for 10 years, so the city could divert resources to delivering services. A group of visionary philanthropic foundations spearheaded the entire process. Convened by the Community Foundation for Southeast Michigan at the behest of chief bankruptcy mediator Federal Judge Gerald Rosen, the consortium of foundations resolved to work together.

A still from the film Gradually, Then Suddenly of the Rivera Court in the Detroit Institute of Arts with valuations of the art.A $100 million commitment by Kresge was pivotal, representing the largest local philanthropic contribution and the largest in the foundation’s history to that point. In all, over $800 million was raised from national and Detroit-based foundations, private donors, the Detroit Institute of Arts and the state. The result was the transfer of the DIA and its collections to not-for-profit ownership, and funding to mitigate what might otherwise have constituted draconian cuts for pensioners.

With the funding in place, a unique coterie of political and community leaders, lawyers and judges, retirees, labor and business leaders, and financial institutions of all types came together with the city and its creditors. They did so against all odds, overcoming cynicism, racism, partisanship and self-interest. Collectively they prevailed over the city’s decades of past failures and distrust to create, together, a nearly universally agreed-upon plan to rescue and give rebirth to an iconic American original.

The alternative to those months of tense, high-stakes negotiations was always clear: years of court battles that would have further undermined the city’s stability and quite likely shredded the social fabric. The extent of the city’s rebound of the last decade, and its hope of facing its continuing challenges, would be unimaginable in the aftermath of a traditionally fractious and prolonged bankruptcy saga.

A group of people at a protest with signs saying: "Jobs, Pensions, City Services, The Banks Owe Us."This is a cautionary one for all of America, but also an inspiring one, for in this drama, Americans of all backgrounds came together to find common ground, plant a flag on that ground, and reaffirm our heritage of good citizenship. Hard choices impacting thousands of citizens had to be made in the journey into and out of bankruptcy.

To kick the can down the road is making a decision not to decide. It is where Detroit found itself after decades. Can our political leaders get out in front of hard and unpopular choices to navigate their communities away from fiscal crises?

Our film has been presented to civic audiences around the nation as well as to university students — and now to the wider streaming audiences. We hope it serves as a wake-up call to the responsible (those who govern) and to their constituents (those who pay the taxes and receive the services).

Detroit’s story offers insight to all American communities facing economic decline and fiscal distress, and is one that resonates in every corner where faith in democratic government and civil discourse is flickering.

The documentary is now available on Amazon, Google Play/YouTube, Tubi and a variety of other streaming services. Winner of the 2021 Library of Congress Lavine/Ken Burns Prize for Film, the documentary has been featured in film festivals in Detroit, New York, Boston, Los Angeles, Philadelphia, Cleveland, Chicago, Orlando and elsewhere.