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News & ArtsThursday, January 22, 2009
Visual Art JPMorgan Chase Will Not Pay Rent to Seattle Art Museum
Posted by Jen Graves on Thu, Jan 22, 2009 at 9:57 AM
Seattle Art Museum is announcing this morning that Chase is giving the museum a one-time grant of $10 million to be paid over the next five years—but that otherwise, the museum is more or less on its own in finding the $4.6 million $5.8 million in annual gross income it was receiving in rent from WaMu.
I have a call in to SAM to find out more about how the museum intends to make up the gap, but here's what we know now about the museum's financial picture: SAM's annual operating budget is $24 million $26.4 million, meaning that a $4.6 million $5.8 million hole will be serious.
Since December, the museum has had a hiring freeze on. In the last year the museum has made a 5 percent reduction in staff, some for restructuring (still adjusting to having three sites instead of two), some from attrition, and some to save money, according to spokeswoman Cara Egan.
More to come.
UPDATE: Egan tells me the actual figure for the income that SAM was receiving from WaMu's tenancy was $5.8 million, not $4.6 million. She also told me the operating budget for fiscal year 2009 is $26.4 million, not $24 million. (Earlier figures came from SAM.)
2
You're an idiot, plutocrat. She didn't say "death sentence", she said "serious". And the museum works plenty hard to gain financing. A fifth of their budget just went "poof", that is, in fact, serious.
Anybody want to buy a hideous Taurus-and-Christmas light artwork? They've got a few pieces in there that have outlived their ten minute's worth of interest.
Anybody want to buy a hideous Taurus-and-Christmas light artwork? They've got a few pieces in there that have outlived their ten minute's worth of interest.
4
Thanks for digging this up, Jen. I was worried about what was going to happen to their mortgage. Gah.
And for those of you who have forgotten exactly how all this came about: the SAM had no plans to renovate that piece of land for many years to come. They owned most of that block (which included an office building damaged by the Nisqually Quake), and WaMu approached them to do a joint deal.
At the time that this deal went through, SAM was doing the Olympic Sculpture Park, and planning the renovation of the Seattle Asian Art Museum in Volunteer Park. (Whether they were solvent *before* they started these projects is up for debate.) But, the point is that WaMu wanted a new gleaming building, they pushed SAM, and SAM said yes. Now SAM is footing the bill, and they're a non-profit art museum, for crying out loud.
For creepy reading, check out the celebratory 'getting into bed with snakes' article from two years ago.
And for those of you who have forgotten exactly how all this came about: the SAM had no plans to renovate that piece of land for many years to come. They owned most of that block (which included an office building damaged by the Nisqually Quake), and WaMu approached them to do a joint deal.
At the time that this deal went through, SAM was doing the Olympic Sculpture Park, and planning the renovation of the Seattle Asian Art Museum in Volunteer Park. (Whether they were solvent *before* they started these projects is up for debate.) But, the point is that WaMu wanted a new gleaming building, they pushed SAM, and SAM said yes. Now SAM is footing the bill, and they're a non-profit art museum, for crying out loud.
For creepy reading, check out the celebratory 'getting into bed with snakes' article from two years ago.
5
Ouch. Between the unwinding of commercial real estate demand and the ethical/practical difficulties of deaccessioning in a down art market, this will be very tough. Poor Matt Griffin just can't help making public poopies no matter how hard he tries.
6
Why are you so grumpy Fnarf? The way Jen phrased the opening paragraph, she makes it seem that having to go out and secure financing on its own in lieu of receiving rental payments is a shock to the entire system. It isn't the end of the world.
8
Yeah, artists are rich! They can pay rent for expensive downtown living! In an office building!
Was that a joke?
Was that a joke?
9
@6 What about this graf remotely makes it sound like a "shock to the entire system" or "the end of the world"? Have you ever even read a news story in your fucking life?
"Seattle Art Museum is announcing this morning that Chase is giving the museum a one-time grant of $10 million to be paid over the next five years—but that otherwise, the museum is more or less on its own in finding the $4.6 million in annual gross income it was receiving in rent from WaMu."
"Seattle Art Museum is announcing this morning that Chase is giving the museum a one-time grant of $10 million to be paid over the next five years—but that otherwise, the museum is more or less on its own in finding the $4.6 million in annual gross income it was receiving in rent from WaMu."
10
$24 Million a year?
For that crappy museum?
Fire all those clowns, hire Larry Reid as Director, and he could triple the attendance, put on much better shows, and serve keg beer at the openings, for about $2 Million a year.
For that crappy museum?
Fire all those clowns, hire Larry Reid as Director, and he could triple the attendance, put on much better shows, and serve keg beer at the openings, for about $2 Million a year.
11
@9 The math is wrong. The 10 million dollar grant would provide 2 million a year presumably. So the actual shortfall is less than stated. I'm not a plutocrat without basis.
12
@8 - if you're not renting out the space, there are costs involved, even if your tax impact is lower.
No, I was serious.
No, I was serious.
14
Other large property owners use artists to fill their empty spaces, Fnarf. The tax structures in this state, county, and city actually encourage it, since it's an under-market rental, and occupancy tends to increase attractiveness of space in a down market.
You have to make sure they aren't likely to set the place afire, and screen them, but it's a time-honored method of dealing with expensive commercial property in an area with an assumed cachet of art approachability, and actually acts as a form of very inexpensive advertising (parties, word of mouth, and image - sometimes thru print and visual media).
but hey, go ride your fixie in traffic if you must ...
You have to make sure they aren't likely to set the place afire, and screen them, but it's a time-honored method of dealing with expensive commercial property in an area with an assumed cachet of art approachability, and actually acts as a form of very inexpensive advertising (parties, word of mouth, and image - sometimes thru print and visual media).
but hey, go ride your fixie in traffic if you must ...
15
Filling empty space with artists makes financial sense when the property in question is something like a former factory or large warehouse. I implore you to find a single example of this sort of thing in a converted, modern downtown office building.
17
so WAMU bellied up and Chase is supported with bail out cash--- and Chase can give a $10 million gift to an art museum???
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