It’s time to go shopping at Nordstrom. Why? Again, the department store chain is riding to the rescue of the Seattle Art Museum.
To recap: SAM was a big victim of the 2008 economic tsunami, because its new downtown building, finished in 2006, contained eight floors of office space (of 16) meant to be rented. Originally, SAM had leased them to Washington Mutual, whose 42-story headquarters building adjoined the museum’s tower. But when WaMu collapsed into the arms of J.P. Morgan Chase Bank in 2008, there was no longer a need for the space.
Chase gave SAM $10 million in return for backing out of the deal, Nordstrom leased six of the floors, and SAM also got a lifeline last fall when the Gates Foundation gave $5.5 million. But the museum still said it had to borrow $10 million from its endowment to help pay off the bonds it floated to pay for the expansion.
Now that $10 figure has been whittled down to $7 million. According to the Seattle Times, Nordstrom has agreed to lease the remaining two floors — one now, and one in 2014.
Thank you, Nordstrom.
In general, I oppose borrowing from endowments, though sometimes extenuating circumstances demand it. I understand that, as long as the money is paid back. From what I hear, SAM is working hard to close the gap.