Sorry, but I disagree with this whole argument. It's essentially based on material costs and what your opinion of value is for art. That has nothing to do with what an art piece gets in the open market.
The name behind the art is EXACTLY what makes it have value. An artist could spend $100 on his art, but it doesn't mean it's worth that to the public.
If I take a beautiful photograph that people love and try to sell it for $1,000 due to material and labor costs, it won't get sold. Might not be able to sell it for $10. If Ansel Adams takes a picture of the same scene, that picture has infinitely more intrinsic value.
So giving locals the same money to make an art piece will not necessarily produce the same or better quality and value.
We're not producing widgets. It's art.
Despite Cap'ns very good and coherent argument (finally we're getting somewhere with genuine debating), I side with Livin here. The last line sums it up.
Too often people try to reduce art to a commodity, and apply industrial-era thinking to art production. My grandfather did it to an extent, and I love and respected the man, but I think it was more an aspect of his generation and the economy of the time.
But I can see both sides. However, what I think essentially happened here was that some decision makers got wind that a Koons piece would be available and they jumped on it... really as was their full right. As pshn80 indicates, they were selected to perform such tasks for the city. There was nothing backroom or shady about this. Unusual, yes. But unusual does not equal immoral or wrong. The piece was so captivating to the selection committee and others close to it with money that extra funds were raised, plus gravy on top for local artists. Again, it is not taxpayer money, and the proper folks made the decision, in the right way. But even if it was taxpayer money, it was still all done above board. Yes, local artists were shut out. Not against the rules. All are entitled to disagree with any part of that.
But, great art often provokes controversy and strong feelings. This piece seems to be getting off to a great start!
I remember my grandfather heartily criticizing a blasphemous "pee Christ" photo... hoo boy did he have some words for that. A piece that absolutely was meant to incite controversy if not outright enrage and offend. But, my views on art differ slightly. I prefer to protect the artist from cultural expectations and mores. I believe that it's only with such freedom can we expect there to be genuine creativity. Industrial age thinking, group thinking, reductionist thinking... these things have value... but when you impose ANY confining set of values on the definition of "art", it's exactly at that point that the art loses it's power. This is not to say every piece of art needs to be revolutionary or inciteful, but the space from which all art comes must absolutely remain free of all culturally imposed values and limitations. From there, it may end up expressing cultural values, teasing cultural values, mocking them, celebrating them, or having no relevance to them at all. But art must remain free.
A true artist has great discipline, but it's not the discipline to stay "on message" per cultural values. It's discipline to follow the thread of their own creative process, which, in my opinion is a sacred endeavor. None of this is to say that art is beyond criticism, but I generally mistrust criticism unless the critic understands this point.