Here we go again: this time, it’s the Seattle Art Museum that has petitioned the court for permission to “borrow” $10 million from its endowment.
SAM is in a precarious position in part because it allied itself with the defunct Washington Mutual bank, a casualty of the mortgage lending debacle. WaMu had leased eight floors in SAM’s new 16-story building, and then it died, leaving SAM without a tenant. Chase Bank, which bought WaMu, gave the museum $10 million, and some of the space intended for WaMu has been leased, but SAM is still out several million dollars.
According to the Seattle Post-Intelligencer:
Through a petition filed Monday in King County Superior Court, the museum said it does not have “sufficient general operating funds” to pay its debt service on the massive downtown expansion project it undertook several years ago.
The museum must pay $4 million a year in debt service on a $60 million bond.
Though SAM’s lawyer told the P-I that the museum was “being very conservative about its stewardship of its endowment” by asking the court for permission — it doesn’t have to — that’s not the way I see it.
SAM’s endowment totals just $96 million — not that much to borrow from. Once again, a museum has created a nightmare out of big dreams:
SAM’s building…opened to great fanfare in 2007. Museum officials then had big dreams of filling the building’s upper floors. “In coming years, future generations will expand SAM upward and inherit the great legacy of a 450,000-square-foot art museum,” then director Mimi Gates had said.
Then came the recession, with its resulting declines in attendance, donations and membership.
I oppose raiding endowments. On the other hand, I agree with Michael Kaiser — who’s been lecturing (mostly performing arts) institutions against cutting their programs. SAM has already cut staff and hours. Where to get the money? It’s hoping its coming show of Picasso paintings from the Musee Picasso in Paris will create fanfare and be a big draw.
It’s the same old story — a museum dreamed too big, now it’s paying — with the added twist of the WaMu saga.
I do credit SAM for going public, but it’s impossible to raise $10 million extra dollars from exhibits. The petition apparently says SAM will now mount a major fund-raising campaign. But the P-I article does not say when, how, how much, or when it plans to repay the loan from its endowment. Inquiring minds want to know.