Museum Deficits

"Hit by the Downturn, Museums Seek Bailouts", is the title of May 20th article by Shelly Banjo published in the WSJ.

"Tottering under years of deficits, accumulated debt and declining donations, several of the country's small and medium-sized museums have been turning to to the art-world equivalent of a bailout. They are partnering with a university or any other academic institution, in some cases handing over artwork and changing locations, in a last ditch effort to keep their doors open and their collections intact and available to the public."

Museums mentioned in the article are located in Portland, Oregon, Berkeley, CA., Fresno, CA. Last year, the Gulf Coast Museum of Art in Largo, Fl., shut its doors and gave its 435-piece collection of contemporary Florida art to St. Petersburg College after seeing its $8 million dollar endowment shrivel to $500,000.

Here in Peoria we have hardly any endowment to shrivel; it appears it have stayed at around $2 million for at least 30 months. Financial experts locally say the Peoria Riverfront Museum needs up to $14 million Endowment.

Still to be raised for this museum project are millions of dollars because all but approximately $2 million of cash raised has already been spent by 12/31/09; out of the somewhere around $14 million in cash raised.

As I look at the financial outlook for this city; don't count your chickens before they are hatched, neither the Marriott nor the Bass Pro have even started construction plus there are no guarantees that their customers will be big museum goers.

Of pledges made to the PRM over several years, financial statements show over $1 million in previous pledges had been cancelled by June 30, 2009.

The recent city-wide fund-raiser held by the museum last month took in $400,000 in pledges, a long, long way from the dollars needed.

One County Board member stated this week that we had progressed "too far" to turn back now. Progressed too far? There is only $2 million in Lakeview's till and sales tax revenue may be suspect. No ground has been broken, no contract with IMAX has been signed, no Endowment to speak of, pledges suspect as they always are and the economy in Peoria lacks sizzle while the certainty of taxes rising is absolute.

It is a also certainty that if the museum is built and the economy normalizes, young people are not going to be going downtown to pay to park in an underground garage to see the history of the Illinois High School Association and the African-American Hall of Fame (which has pledged $10,000 to this $130-40-50 million dollar project) and pay to attend 2nd run IMAX shows. If IMAX executives believe Peoria is a good location for an IMAX Theatre, I will guarantee you it would not be downtown with underground parking. It would be out North and Northwest where Dunlap and Peoria are expanding.

And it would be privately owned with 1st showings. If one is not built, it means that Peoria cannot support an IMAX.

The city, in apology for promoting growth way out north and northwest, is making a renewed efffort to bring back those who are fleeing the City. All talk and no money just like no money for Eagle Point. Same tallk as has been going on for years, just different councilpeople. In the first place, it would take a lot of money while the city will not even be able to meet their budget defcits WITHOUT RAISING TAXES OR FEES next year or sooner.

Another reminder. IF THIS UNPOPULAR MUSEUM IS BUILT IT WILL BE THE RESPONSIBILITY OF PEORIA COUNTY TO MAINTAIN THE BUILDING FOR ITS LIFETIME. County administration may say it is not but don't believe the "movers and shakers" in this community would leave an $80 million building sit empty on the riverfront.

I recently reviewed the economy on the riverfront. I also said their might be more shake-out of businesses on the riverfront in the not too distant future.

Stay tuned.

Start increasing the pressure on the M & S crowd to kill this impending long-term financial disaster. No, neither expansion of hotel rooms, which might put at least two existing hotels out of business, or a Bass Pro, which will no doubt take dollars from existing businesses, maybe more than they presently think, will boost the 240,000 PRM visitors now projected. (Lakeview's Finacial statement showed that 81,000 people visited Lakeview Museum). And that was with free parking. People who visit museum's similar to this one as planned, do not usually come from the outdoor types. The Bass Pro types are more likely to visit the aquariums at.... Bass Pro. Free and free parking.

Or the new zoo. Or the ball park.

The Museum finance people "estimate" it will cost $4.1, 4.2, 4.3 million to operate the PRM the first year with our departing County Financial Officer predicting it will cost over $8 million a year to operate by 2033.

I believe overlooked by all the "experts' that even in a good economy there are only so many discretionary dollars to be spent.

Hmm.