Best of 2010: Financially strapped Seattle Center is owed more than $1 million in back rent
The Children's Museum, Seattle Children's Theatre, and Intiman Theatre are the Center's largest debtors, and they're working on payment plans as the city-run Center fights its own budget battles.
The Children's Museum
City of Seattle
Editor's note: Here's another of our most important stories of the past year.
The Children's Museum and Seattle Children's Theatre are deeply in debt to Seattle Center, owing rent payments in the six-figure range and putting them among the Center's largest debtors.
The Children's Museum, a 31-year-old attraction in the basement of the Center House, owes $513,340, more than any other tenant or one-time renter of facilities at the expansive, city-run Seattle Center. The Intiman Theatre, whose problems have been reported recently, holds the second-highest debt, $308,942. The Children's Theatre, located in a standalone building near the southwest corner of the site, owes the third most, $167,670.
In total, the Center is owed $1.1 million in back rent, and $836,000 of that is over four months past due. The figures underscore the pressure city administrators are under to find new tenants that are at least self-supporting and, ideally, that could generate revenue for the city. (Note: This paragraph originally said the Center is owed $1.5 million in rent. It has been updated to reflect that $428,012 of that rent is not past due, but part of the current billing cycle.)
That pressure has come up this year as Seattle Center looks for a tenant to replace the financially strapped South Fun Forest carnival. Glass artist Dale Chihuly and the owners of the Space Needle proposed a paid-admission glass museum for the area, at the base of the Needle, but public criticism of the idea early this year led to a review, which is still ongoing.
The overdue rent records, released by the Center late Monday in response to a public-records request, show debts as of Oct. 31. And some organizations' tabs are growing by monthly rent amounts of more than $10,000. Center spokeswoman Deborah Daoust said the agency is working with its tenants to negotiate payment schedules. The full list of debts can be seen here.
The Children's Theatre reached an agreement several months ago, and the museum and Intiman are negotiating payment schedules now, Daoust said. Even so, it could be years before the Center collects what it's owed — if it ever does.
"We don't normally do penalties," Daoust said, adding that in the past the Center has levied late-payment fines that have been excused once a case goes to collections at the central city-government level.
Donna Marie Bertrand, executive director of The Children's Museum, said that like many nonprofits, her group has been hit by decreasing contributions from individuals, corporations, and governments, along with falling ticket revenue, due to the recession. In addition, the museum provides reduced admission to schools and groups that serve disadvantaged kids, a need that has increased.
"It's a real double-whammy," she said.
Bertrand said the museum was already in arrears when she took the head job in July 2009. She immediately began tackling the debt, and the group has been making weekly payments ever since. "We do want to honor our debts and we are making progress on that."
Still, the total amount owed has been increasing because the agency can't keep up with its $16,419 monthly rent. And the total owed by now — over a half-million dollars — represents nearly a third of the group's $1.7 million budget for this year.
Though it could be five years before the museum is caught up, Bertrand said, she is not concerned about its survival. She has seen "ebbs and flows" in business and education during previous jobs, she said. "And the Seattle Center is a huge partner in making sure that we are successful."
The two-page list of accounts receivable released by the Center shows 12 groups owe payments that are more than 120 days late — bills ranging from $7.12 to the museum's half-million-dollar amount. Debtors include the well-known nonprofit arts groups as well as for-profit concessionaires such as the Center House Bistro & Bar, owing $46,865, and the Bubbles Inc. candy store, owing $28,503. Giant Magnet, which puts on the annual International Children's Festival, owes $42,900.
Intiman Theatre, whose Center debt was detailed in this recent article in The Seattle Times, has struggled for years to get out of debt. Its tax filing for the 2008-09 season showed the theater losing $518,000 for that year.
Daoust said the Center had worked out one payment plan with Intiman, but she said, "They weren't able to keep up with those last year." So the city escalated the negotiations and is now working with the finance committee of the group's board.
All of these problems help explain why the Center was quick to warm to the idea of a Chihuly glass museum in place of the kiddie rides have entertained families for decades. The museum's proposal offered $350,000 a year in rent, jumping to $500,000 after five years. Center staff came close to striking a private deal with the museum proponents, but when it became public, there was enough controversy over the idea and the process that the Center ultimately solicited bids.
The Center's Request for Proposals listed six criteria on which the ideas were to be judged, and three of those mentioned money — capital investments and rent income, for example.
An appointed panel reviewed nine proposals and recommended the Chihuly plan. Mayor Mike McGinn is now considering the issue and hopes to make a recommendation to the City Council by the end of December, spokesman Aaron Pickus said. Ultimately, the Council will make the final call. Popular alternatives have included a new studio for alternative-rock station KEXP and a Native American cultural center — or some combination of those with a glass museum.
(Editor's note: Crosscut Publisher David Brewster was behind a proposal to have open space at the Fun Forest area.)
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Comments:
Posted Tue, Dec 7, 6:04 p.m. Inappropriate
The size of the debt smacks of bad management of the Center. Very sad that this situation led to a greedy response to the Chihuly proposal. If the Center were managed better and tenants made their rents (or else) perhaps the Center could become what it needs to be -- an active, green space for Seattle.
Posted Wed, Dec 8, 8:39 a.m. Inappropriate
My family leased a restaurant space in the food court area for many years. I know firsthand what's going on at the Seattle Center. It's the same problem most government agencies have: they are totally out of touch with how to run a profitable business. A good case in point is the recent talk about putting in a Chihuly glass museum. Anybody who visited the Chihuly museum in Tacoma knows what a mistake that turned out to be. They had some nice pieces on display in the beginning and then they were mostly taken away. Another point, this last weekend there were musicians playing on the Food Court stage. Were they playing holiday festive music? No, quite the opposite and it seemed the only people listening were the musicians family members. The Seattle Center started as a center piece of our World's fair back in 1962 and it has slowly eroded ever since. What it needs now is a proper vision for a re-birth and then competent management to run it. How about bids from companies like Disney who will build and manage a modern theme park?
Posted Wed, Dec 8, 10:56 a.m. Inappropriate
No debtors from the athletics, sports, Key Arena hangovers?? And, One Reel is current on a $151,000 amount?? Interesting.
Posted Wed, Dec 8, 1:01 p.m. Inappropriate
It's been clear for some 30 years now that once the "Seattle Center should be a Central Park/Lincoln Center" crowd became the dominant voice that the Center has become largely irrelevant and unvisited by most citizens. Simple observations like allowing the road at the south end of the Center House to become a de-facto parking lot/loading dock or that the food court itself has become a school lunchroom/homeless shelter most of the year seem to elude the present management. This despite the obvious negative impact it has. And with the cultural institutions bleeding money the obvious solution to the Center's financial woes is to add more of them. Sad indeed.
Posted Wed, Dec 8, 1:21 p.m. Inappropriate
So, how is that Century21 plan voted on by the city council 2 years ago doing?
Maybe I should just copy and paste my comments here from two years ago when the rah! rah! about having a 50-year celebration, "will we celebrate urban blight?"
Guess we are.
What I really do not need is another happy UrbanLedgend newsletter from Nick Licata talking about the million dollar arts/theater driveway.
Posted Wed, Dec 8, 3:56 p.m. Inappropriate
The new Master Plan opened up the possibility of setting Seattle Center on a different track than it has been for the last 50 years, towards a big green park in the heart of the city, albeit with some “serious” cultural venues along its northern edge. But there was certainly no broad consensus that this was the best way to go, even long-term. In the meantime, the fact is that the Center has evolved into a successful and varied popular culture venue whose main drawback seems to be chronic revenue shortfalls. A glance at the regular full-page ads that run in the Weekly for upcoming events at the Center gives a good idea of what regular fare at the Center is actually about. Culturally, the Chihuly would not be out of place in the shadow of the Space Needle.
Dolly Parton created her own theme park on private land when she wanted a permanent venue and so, probably, should Chihuly. But given the chronic financial straits of the Center, the offers on the table, and the lack of popular support (not to mention money) for a greening of the Center, the Chihuly looks like a winner. Doubtless a KEXP relocation somewhere at the Center could be included as part of the deal. By such choices and circumstances the city is made for another generation.
Posted Sat, Jan 1, 12:45 p.m. Inappropriate
I agree with MakeSense. Let a private firm have a crack at managing the Seattle Center property. Maybe they'd upgrade the dimly-lit, aging (and that's being charitable) Center House building as well as the grounds. What's been on the grounds over the years - the amusement rides - hasn't been so bad, it's that management has "let it go" without updating it. It's the equivalent of buying a new push-button phone in the early 1980s and still using it as one's only phone ever sense, while the world's been rapidly changing around us.
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