Mayor Michael R. Bloomberg, New York City Cultural Affairs Commissioner Kate D. Levin and Frank J. Sciame, the Seaport Museum's chairman for the last four years, met at City Hall Thursday to discuss its future, according yesterday by Robin Pogrebin in New York Times.
Over the last three weeks, the article said, "seven of the 21 trustees resigned from the board, and on Monday the museum furloughed 32 employees - half of the staff" and "Future exhibitions have been put on hold, the museum has effectively eliminated its curatorial and development departments."
"In an unusual move for a museum chairman," the article continued, "Mr. Sciame, a real estate developer whose company has projects near the seaport, has lent the museum $3 million since March to cover operating expenses like payroll. Depending on whom you ask, he is either saving the Seaport Museum or sealing its doom."
"There's no question that we are dealing with some significant hurdles," said Peter Gates, who remains on the board, said that "Frank has brought a truly remarkable level of energy, determination and judgment to the museum. These qualities combined with his great generosity have kept the museum going, and we are grateful to him."
But, the article continued, one furloughed employee who did not want to be identified because of fear of reprisal for speaking publicly said that "Frank Sciame is doing incalculable harm to the Seaport Museum," adding that "he has refused overtures from the city to help stabilize the museum and has driven away trustees who resent his high-handed and confrontational manner. It's hard to kill a nonprofit, but Sciame is well on the way to accomplishing just that."
The museum, which was formerly known as the South Street Seaport Museum, explores the city's maritime history through artifacts and a fleet of 11 vessels, including historic ships and service boats.
"In 2004," the article said, "it closed its library building and gave away its collection of two million artifacts excavated in Lower Manhattan. It also eliminated several major staff positions to reduce its budget by $1 million," adding that "for 10 years the museum has been in arrears to the city's Economic Development Corporation for rent and utilities."
"In May," the article continued, "the museum asked the city to buy back its lease on a lot at the corner of John and South Streets for $7 million. This would allow the museum to pay off $1.8 million in back rent and utility payments to the development corporation and would generate an additional $3.2 million, to be paid at the closing in 2012, according to the city. Meanwhile, the museum sought a bank loan of $2.7 million against the city's option to buy back the lease, and the board in December authorized using up to $1.4 million of the loan to pay back Mr. Sciame. When the loan did not come through, Mr. Sciame said, he provided bridge loans, "to keep the museum operating."
The city also objected to funds being used to pay back loans from board members (others beside Mr. Sciame have lent the museum a total of $500,000) and said it would not allow the museum to borrow against the lease buy-back, the article said.
In January the City Department of Cultural Affairs and individuals interested in the museum's future proposed that two new trustees join the board in leadership positions: Doug Kreeger, a business consultant who is married to the sister of the developer Douglas Durst, and Brendan Sexton, a consultant on environmental sustainability and a former sanitation commissioner, the article said.
Mr. Kreeger and Mr. Sexton agreed to help secure a loan to the museum to cover some operating costs, with the understanding that the museum would undertake a major debt-reduction plan. Under that plan, board members would not have preferred status among the museum's creditors.
"We're considering different ways of running the museum," Mr. Sciame said, adding that "there were some good ideas that Doug and Brendan had, and they're under discussion."
Over the last three weeks, the article said, "seven of the 21 trustees resigned from the board, and on Monday the museum furloughed 32 employees - half of the staff" and "Future exhibitions have been put on hold, the museum has effectively eliminated its curatorial and development departments."
"In an unusual move for a museum chairman," the article continued, "Mr. Sciame, a real estate developer whose company has projects near the seaport, has lent the museum $3 million since March to cover operating expenses like payroll. Depending on whom you ask, he is either saving the Seaport Museum or sealing its doom."
"There's no question that we are dealing with some significant hurdles," said Peter Gates, who remains on the board, said that "Frank has brought a truly remarkable level of energy, determination and judgment to the museum. These qualities combined with his great generosity have kept the museum going, and we are grateful to him."
But, the article continued, one furloughed employee who did not want to be identified because of fear of reprisal for speaking publicly said that "Frank Sciame is doing incalculable harm to the Seaport Museum," adding that "he has refused overtures from the city to help stabilize the museum and has driven away trustees who resent his high-handed and confrontational manner. It's hard to kill a nonprofit, but Sciame is well on the way to accomplishing just that."
The museum, which was formerly known as the South Street Seaport Museum, explores the city's maritime history through artifacts and a fleet of 11 vessels, including historic ships and service boats.
"In 2004," the article said, "it closed its library building and gave away its collection of two million artifacts excavated in Lower Manhattan. It also eliminated several major staff positions to reduce its budget by $1 million," adding that "for 10 years the museum has been in arrears to the city's Economic Development Corporation for rent and utilities."
"In May," the article continued, "the museum asked the city to buy back its lease on a lot at the corner of John and South Streets for $7 million. This would allow the museum to pay off $1.8 million in back rent and utility payments to the development corporation and would generate an additional $3.2 million, to be paid at the closing in 2012, according to the city. Meanwhile, the museum sought a bank loan of $2.7 million against the city's option to buy back the lease, and the board in December authorized using up to $1.4 million of the loan to pay back Mr. Sciame. When the loan did not come through, Mr. Sciame said, he provided bridge loans, "to keep the museum operating."
The city also objected to funds being used to pay back loans from board members (others beside Mr. Sciame have lent the museum a total of $500,000) and said it would not allow the museum to borrow against the lease buy-back, the article said.
In January the City Department of Cultural Affairs and individuals interested in the museum's future proposed that two new trustees join the board in leadership positions: Doug Kreeger, a business consultant who is married to the sister of the developer Douglas Durst, and Brendan Sexton, a consultant on environmental sustainability and a former sanitation commissioner, the article said.
Mr. Kreeger and Mr. Sexton agreed to help secure a loan to the museum to cover some operating costs, with the understanding that the museum would undertake a major debt-reduction plan. Under that plan, board members would not have preferred status among the museum's creditors.
"We're considering different ways of running the museum," Mr. Sciame said, adding that "there were some good ideas that Doug and Brendan had, and they're under discussion."
Architecture Critic
Carter Horsley
Since 1997, Carter B. Horsley has been the editorial director of CityRealty. He began his journalistic career at The New York Times in 1961 where he spent 26 years as a reporter specializing in real estate & architectural news. In 1987, he became the architecture critic and real estate editor of The New York Post.
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