"Miami Art Museum donations on pace with building" @Miamiherald

Miami Art Museum officials are more than halfway to their goal of raising millions in private donations for their new waterfront home.

Seeing is believing for donors to the new Miami Art Museum now under construction alongside Biscayne Bay in downtown’s Bicentennial Park.

With elevated platforms resting atop columns, a trellis-like roof, and a grand staircase that opens onto the water’s edge, the MAM building designed by the Swiss firm of Herzog & de Meuron has generated enthusiasm among architectural critics and museum officials alike.

Lately, MAM director Thom Collins said, that sense of excitement has spread to the museum’s benefactors.

As workers give shape to the museum’s Stiltsville-inspired design, donations to the building campaign are on pace to meet the promise made by museum trustees to raise $120 million in private funds to offset the costs of construction and future operations, he said. More than half has already been pledged.

“People don’t get on board until they see things,’’ Collins said during a recent tour of the construction site. “We’re well within $2 million of finishing the bricks and mortar fundraising.’’

Collins said he is much more relaxed these days than he was last December, when it was announced that upon completion of the building in fall 2013, MAM would be renamed the Jorge M. Perez Art Museum of Miami-Dade County, or PAMM for short, in exchange for a donation of $35 million from the Miami real estate developer.

The community response was divided among those who congratulated the museum and Perez on the generosity of his gift, and those who criticized the name change for giving one person all the credit for a museum built largely with public money approved by Miami-Dade voters in 2004.

In fact, MAM will need even more public support when the new building opens because operational costs are projected to more than double from the present $4 million a year to about $10 million. Currently, MAM relies on about $2 million a year in public funds to cover the costs of exhibitions, educational programs and staff.

Many warned that the museum’s name change would hurt future private donations, which help offset those operating costs, by sending the unintended message that the institution is taken care of.

“Bringing money in is going to be harder,’’ said Miami collector Carlos de la Cruz, who along with his wife, Rosa, runs the De la Cruz Collection Contemporary Art Space in the Design District. “I think that’s incontrovertible.’’

But nearly one year since the announcement, said MAM’s board chairman, Aaron Podhurst, the fundraising campaign is riding the momentum of its unmistakable landmark rising from the ground.

“Now we’re getting excitement,’’ he said, “and we’re trying to get some of the big gifts in.’’

Yet the work of fundraising for any cultural nonprofit, he added, “never stops.’’

The guaranteed maximum price for MAM’s new building is $131 million, Collins said, but the total price tag on the project, including an endowment to ensure its future operations, is about $220 million.

Public money from a general obligation bond approved by Miami-Dade voters in 2004 will pay $100 million of that cost. Museum trustees pledged to raise an additional $120 million in private donations, including $31 million to offset construction costs, $70 million for an endowment to ensure future operations, and $19 million for transitional expenses.

Collins said MAM trustees have raised about $70.5million in pledges to date, and about $33.5 million of that sum has already been paid.

The remainder will be raised in the months leading up to the museum’s scheduled opening next year — and beyond, Podhurst said.

With much of the museum’s share of construction costs already raised from private sources, Podhurst said, MAM officials are now focused on building the endowment.

“The key for the next year and a half is to get the endowment as high as we can get it,’’ he said, “so we can really do some great operational programming.’’

Museum trustees made a number of promises to ensure that the new building does not run into the same cost overruns and delays that plagued the Adrienne Arsht Center for the Performing Arts, which cost nearly $500 million to complete and experienced numerous delays before opening in 2006.

“After the performing arts center, I think that this community was really gun shy, as I can understand,’’ said Rose Ellen Meyerhoff Greene, vice president of the museum’s board of trustees.

But Greene said museum trustees — nearly all of whom pledged gifts to the campaign — have taken a personal interest in ensuring that the new building comes in on time and on budget.

“If you’re building your own home, you hire an architect; you hire a contractor; and then you watch every light socket put in the home,’’ she said. “That’s how we’ve treated this project.’’

Among the most important commitments made by MAM trustees was management of the building’s design and construction, which ensures that any cost overruns will be paid for by the museum and not the public.

“Those are written assurances,’’ said Michael Spring, Miami-Dade’s cultural affairs chief and one of the principal public officials overseeing the project.

Spring said museum trustees signed a contract promising to raise $120 million in private donations, though there is no timetable specified for raising the funds.

If MAM fails to meet those fundraising goals, then museum trustees and benefactors will be expected to make up the difference, Spring said.

Miami-Dade and the city of Miami, which contributed about $2.8 million in bond funds to the project plus the land for the building, exercise some oversight of the project. For instance, all project costs are paid first by MAM, then submitted for reimbursement to the county and city.

Public officials also receive updates on the project through monthly meetings with museum officials, and annual reports required for receipt of bond monies.

But much of the responsibility for the project’s success rests with museum trustees.

With their own skin at stake, Collins said, museum officials have hired teams of consultants to help manage construction costs, and to gauge future operational expenses.

“We have spreadsheets, and spreadsheets, and more spreadsheets,’’ Collins said. “We really feel confident we have a handle on it.’’

According to the museum’s projections, operating costs for the new building will more than double from the current $4 million a year to about $11 million annually.

Some of that additional operating cost may be borne by the county, which already contributes about $2 million a year to the institution. But county officials have not yet made a commitment to increase funding of the museum.

“It’s inevitable that the budgets for bigger buildings will be bigger,’’ Spring said. “We understand that, but we can make no guarantees that the county can do anything more than what we’re doing now.’’

Podhurst said MAM trustees have not yet asked the county for increased public support, but he enthuses over the opportunities for generating income in ways the museum’s current home in the Miami-Dade Cultural Center cannot.

“We expect to make a lot of money in our predictions on rentals on weddings and bar mitzvahs and parties, and all that kind of stuff, because they’re beautiful spaces,’’ he said. “It’s one of the most gorgeous spots to be on the water.’’

Still, Collins makes it clear that MAM will be looking to county leaders to increase annual support of the museum, as well.

“We have to grow funding through every revenue stream,’’ he said, “but everything has to grow: government funding, private support, earned income.’’

MAM’s fundraising campaign took an unexpected turn in December when the museum announced Perez’s donation of $35 million in cash and art.

MAM trustees voted to accept Perez’s gift and the museum’s renaming by a 46-4 vote, but the news also triggered a backlash.

Four members of the museum’s board of trustees resigned, including past president Mary Frank., who with her husband Howard Frank, chief operating officer and vice chairman of Carnival Corp., vowed to stop paying on their $1 million pledge. Carnival Corp., which had pledged $5 million to the museum, also reneged.

The Franks paid $417,791 of their pledge, MAM officials said, and Carnival Corp. paid $1.5 million.

The museum does not plan to return those gifts, said Tracy Belcher, a MAM spokeswoman.

Yet while some donors have severed ties with the museum over the change, the renaming also has helped open new doors for MAM.

“The Jorge Effect was really positive and fantastic,’’ said Collins, the museum’s director, “because he’s given us access to people we otherwise wouldn’t have talked to.’’

Ranked the 360th richest person in America by the October issue of Forbes magazine, Perez, 63, has a personal fortune estimated at $1.2 billion — and he travels among a broad circle of influential friends.

His gift to MAM, divided into $20 million cash and $15 million in art, was meant to lead by example, Podhurst said.

Perez has paid $6.5 million of the cash pledge to date, Podhurst said, and he is scheduled to pay an additional $3.5 million in January. The remainder of his cash pledge — $10 million — will be paid in installments by 2022.

The art, however, is already in hand.

Collins and MAM’s chief curator, Tobias Ostrander, recently hand picked the works from Perez’s personal collection. Those works have been appraised by Christie’s, the art auction house, and their value is greater than the pledged amount of $15 million, Podhurst said.

In a video interview posted on Forbes.com, Perez said his commitment to MAM is now closer to $40 million.

But he doesn’t mind.

“I want the best pieces to go to the museum,’’ he told Forbes.

Among the donors whom Perez brought on board for the museum’s campaign is a fellow member of the Forbes 400: Number 83, Stephen Ross, the billionaire owner of the Miami Dolphins.

Though Ross sits on the boards of some of New York’s most prestigious cultural institutions, including the Guggenheim Museum and the Lincoln Center, he had not taken an active role in MAM’s capital campaign until his longtime friend, Perez, asked.

Ross, a real estate developer who is founder and chairman of the Related Companies, said he and Perez are friends and business associates dating back to 1979.

“Knowing that’s important to him, I gave it in his honor,’’ Ross said of his gift to MAM. “Jorge told me how important it was, and asked if I would be interested in giving. It wasn’t a hard sell, if you know what I mean.’’

Trade-Offs in Museum Naming Rights @nytimes #art

WHEN Eli Broad, the art collector and philanthropist, decided to build a museum in downtown Los Angeles, he named it The Broad. That pretty much ruled out asking anybody else for money, said Barry Munitz, a governor of the Broad Foundation. The museum, about to break ground on a Diller Scofidio & Renfro building, will have an initial $200 million endowment and has no plans to seek outside funding, according to Joanne Hyler, who will be its director.

But there’s another Broad museum, this one nearing completion at Michigan State University, in East Lansing. Mr. Broad (pronounced Brode), a Michigan State alumnus, and his wife, Edythe, gave $28 million to that cause — far less than the cost of the museum’s new Zaha Hadid building. And that means the museum’s director, Michael Rush, has to raise money before the museum opens this year. “We still have a few million to go,” he said by phone.

But who will donate to a museum named for one of the wealthiest couples in America? (Its official name is the Eli and Edythe Broad Art Museum.) As Lou Anna K. Simon, the president of Michigan State University, said at an event to publicize the museum, “Some people think Eli can just write another check.” Not only that, but the name on the door suggests that no mater how much a donor contributes, the credit will go to the Broads.

Luckily, Mr. Rush said, the university’s hundreds of thousands of alumni are known for their school spirit. It also helps that the museum is offering naming opportunities; one gallery will bear the name of Edward Minskoff, the New York real estate developer and a Michigan State graduate. Mr. Minskoff wrote in an e-mail that the Broad name, if anything, encouraged him to give. “Eli is one of the most important collectors in the world, and it will only serve to attract other prominent contributors,” he wrote.

Often, though, putting a wealthy donor’s name on the door discourages giving, according to Mr. Munitz and other experts. (He named the Menil Collection in Houston, the Nasher Sculpture Center in Dallas and the Pulitzer Foundation for the Arts in St. Louis as three museums facing that challenge.)

When Mr. Munitz was president of the J. Paul Getty Trust — endowed by the oil company founder — “it was hard to ask for money with a straight face,” he said. But the trust, he said, is not without need; it is wealthy enough “to do anything it wants to do, which is different from being able to do everything it wants to do.” These days, he said, it seeks donors for some purposes.

Fund-raising may be easier for an institution named for a less towering figure than J. Paul Getty or Eli Broad. The Skirball Cultural Center, a Jewish museum in Los Angeles, was named for Jack Skirball and Audrey Skirball-Kenis, wealthy Californians, but its director, Mr. Munitz said, “has always made it clear that the institutionwouldn’t survive and prosper without other major donors.” One such donor, Lloyd Cotsen, the former president of the skin care products company Neutrogena, endowed what is now known as the Cotsen Auditorium at the Skirball Cultural Center. “There wasn’t the sense that other donors would be in the Skirballs’ shadow,” said Mr. Munitz, who is the president of Mr. Cotsen’s foundation.

In Arkansas, the Crystal Bridges Museum was built with a gift from Alice Walton, an heir to the Wal-Mart fortune, and received $800 million in additional funds from the Walton Family Foundation. Don Bacigalupi, the museum’s director, said it had not been difficult to raise additional money. One reason, of course, is that the museum isn’t named Walton.

But even if it had been, Mr. Bacigalupi said, that might not have discouraged donors, because of excitement in the community about the project, which, he said, was fueled by the Walton association.

The museum has signed up 6,000 members, about twice as many as its top executives had expected, since it began its membership program last year. And many of those members gave far more than the $35 minimum — in some cases, thousands of dollars more. Asked if the donors were looking to curry favor with the Waltons — who control much of the economy of this part of Arkansas — Mr. Bacigalupi answered no. After all, being one of thousands of members is akin to being anonymous. Larger donors are not anonymous — the Willard and Pat Walker Charitable Foundation gave $10 million to defray the cost of bringing school groups to the museum (even covering lunch and transportation). But Mr. Walker made his money as a Wal-Mart executive, and the Walkers are part of what Mr. Bacigalupi described as a group of prominent families who pitch in to support each other’ projects. He said the museum was benefiting from a “tradition of generosity” in northwest Arkansas.

 

 

More front page #PAM news. There are interesting challenges in this story, but the notion that in the Miami art world there is a hispanic prejudice overtone seems a bit much to me - the issues go beyond that...

Developer Jorge Pérez is saddened by the controversy surrounding his $35 million naming gift to the MAM 

 

via miamiherald.com

More #PAM Commentary #2 - "All about art" in @miamiherald @miamiartmuseum #art

 I was sorry to read that Carlos and Rosa De La Cruz don’t like the Miami Art Museum’s name change any more than do Mary and Howard Frank. Sadly, I don’t remember seeing a meaningful contribution from the De la Cruzes on the capital campaign roster.

All MAM wants is to build an extraordinary museum and create a world-class collection. By a vast majority, the MAM board voted in support of Jorge Perez’s incredible act of generosity and vision in helping us build a public art museum in downtown Miami.

He has stepped up to provide a level of financial support many of us wish we could. By contributing art and dollars, he reminds us what this museum is all about and the opportunities that await our community when the new museum is complete.

Diane Grob, member,

MAM board of trustees, Miami

Read more: http://www.miamiherald.com/2011/12/14/2546591/all-about-art.html#ixzz1gcIQVZNl

#PAM Makes it to @Bloomberg News! "Lauder Shows Up Miami Developer Museum Deal" - #art #miamiartmuseum

"Mademoiselle Pogany II" (1919) by Constantin Brancusi. The sculpture, made of veined marble on limestone and wood bases, is among the Modern works in the Ronald S. Lauder Collection. Source: Neue Galerie via Bloomberg

By Lance Esplund - Dec 14, 2011 1:38 PM ET

While a distracted art world picked over Art Basel Miami Beach, a real estate developer got the biggest bargain next door.

I mean Jorge M. Perez. For a mere $35 million gift in cash and art he got the Miami Art Museum to change its name to the Jorge M. Perez Art Museum of Miami-Dade County....

Any more thoughts on the new #PAM - "Don’t like the name of new art museum? Move on" - by Michael Putney in @miamiherald #art #bassmuseum

Welcome to the intersection of art, ego, philanthropy and jealousy. It’s where you’ll find the Jorge M. Perez Art Museum of Miami-Dade County.

My initial reaction to renaming the Miami Art Museum for Jorge Perez was negative. Why should our stunning new $225 million civic art museum — with $103 million coming from taxpayers — be named for any individual, no matter how generous his donation? The decision by MAM’s board of trustees to change the name struck me as weak-kneed and wrong-headed. And the requirement by Perez to do so as arrogant and self-aggrandizing. I said as much on TV.

But I’ve reconsidered. After speaking to Perez and looking at how other arts institutions are funded here and across the country, I’ve concluded that Perez should be thanked, not condemned for his $35 million gift to MAM. If the price is for the museum to bear his name, hang his art and be his legacy, well, why not? He’s certainly not the first South Florida art patron to make a deal like this. The Arsht Center? Taxpayers kicked in about $440 million toward the PAC and Adrienne Arsht got her name on it for $30 million, supplanting Carnival Cruise Lines, which had given $20 million.

The new Frost Museum of Science, to be built across from the Perez Art Museum, honors Pat and Phil Frost for their $35 million contribution. There appears to be a $35 million threshold here for naming rights, and Perez has met it, although he’s doing it on the installment plan — $20 million over 10 years and his $15 million art collection. Still, it all adds up to the requisite magic number. You can’t really change the rules in the middle of the game, which is what his critics seem to want.

Like those critics, there’s part of me that rebels against having Miami’s main civic art museum named for anyone except those who mainly paid for it. But we can’t really call it the Taxpayers’ Art Museum of Miami-Dade, can we? Many years ago when the Metropolitan in New York or the Art Institute of Chicago or the Louvre in Paris or Prado in Madrid were created they were paid for by the cities that built them because they were tangible symbols of culture and achievement. Wealthy art lovers contributed money and works of art, but didn’t expect civic museums to carry their names. A wing, a gallery, a plaza, yes. The entire museum, no.

But times have changed. Museums along with other cultural, academic, medical and academic institutions are now more often than not paid for by a major donor who gets his or her name on the edifice. Locally, think of the Miller School of Medicine of the University of Miami ($100 million from the Lennar founder Leonard Miller and family); The Frost Art Museum at Florida International University (Pat and Phil Frost once again), the Lowe Art Museum at UM and the Bass Museum on Miami Beach. Joe Robbie Stadium. There are, of course, exceptions. Lin and the late Ted Arison started and continue to sustain the New World Symphony.

Jorge Perez tells me some of the furor over the MAM renaming may have to do with his Hispanic heritage. “You know, the name Perez is new to Miami’s philanthropic society,” he said. “I think we need names of Latin descent to go hand in hand with great Anglo and Jewish names that have shown generosity in the past.”

It’s possible there could be an anti-Cuban tinge to the criticism, although I don’t see it. Carlos and Rosa de la Cruz, prominent art collectors who’ve been outspoken about the MAM name change, are proudly Cuban American. I suspect some part of the criticism is because of Perez’s role as a major real-estate developer who got very rich by helping overheat the housing market . But as he points out, when it cooled down he lost three-quarters of his wealth. And still ponied up $20 million in cash and art worth $15 million. “That’s art I look at every day,” he says, “art that I have an emotional attachment to.”

He’ll be able to see it, as will we, at the Jorge M. Perez Art Museum of Miami-Dade County. Got a problem with that? I did at first, but I’m OK with it now.

Difficult Situation... "Keep it the ‘Miami Art Museum’" - in @miamiherald @MiamiArtMuseum #art #jorgeperez @bassmuseum

Jorge Pérez has made what appears to be a generous gift to the Miami Art Museum, an act that has been billed as one of the most generous in the city’s philanthropic history. In return, the museum sold him its name. Before we break out the Champagne, let’s do the math on this gift.

The headline gift totals $35 million: $20 million in cash and $15 million in art from his collection. Let’s start with the cash, because that’s what the museum needs immediately to fund construction of its new building. When the project began in 2005, Mr. Pérez made a $5 million pledge, which remains part of the $10 million cash gift he proposes to pay by 2012. He also proposes to pay another $10 million in 2022, 10 years from now, so let’s say the present value is $5 million. That’s a cash total of $15 million. This compares to Miami-Dade giving $100 million of its citizens’ money and the city giving land worth $50 million for a total of $150 million. Mr. Pérez’ gift amounts to 10 percent of Miami’s gift and he gets the name of the museum. And this doesn’t consider the risk of a substantial loss of funding from existing and future donors. Something doesn’t compute.

The $15 million worth of art was added to bring the headline gift to a level commensurate with the Frosts’ and Adrienne Arsht’s recent cash gifts. Until now, MAM’s capital campaign policy was “cash only.” Any professional fund raiser will tell you that a gift of art (which the museum can’t sell for ethical reasons) doesn’t pay for construction costs and doesn’t count towards naming rights.

When the MAM board approved the renaming there was no discussion of the longterm implications of the name change. No one mentioned that the American Association of Museum Directors, which accredits MAM, cannot find a single instance of a civic art museum selling its name to a donor, for any amount of money.

MAM’s leadership and Mr. Pérez have turned a deaf ear to the outpouring of negative responses to the name change, ignoring the constituency they ostensibly serve. The citizens of this great community paid for the museum and it should bear their name. How about a wing, Mr. Pérez? That would compute.

Howard S. Frank, Miami

MIami makes it to the new york times again!

But not everyone is happy that the institution, now known as the Miami Art Museum, will be recast as the Jorge M. Pérez Art Museum of Miami-Dade County to recognize Mr. Pérez’s $35 million gift in cash and art.

Four board members have resigned in protest. Several are threatening to rescind their contributions. Protest e-mails to museum officials have complained that an institution being built on public land and largely financed by taxpayers should not be named for an individual, no matter how generous.

“Name a plaza or a wing or the building,” said Rubén A. Rodríguez, one of the trustees who resigned, “but not the institution.”

The naming and renaming of institutions, arenas, even bridges, after people, to raise money or recognize civic contributions, typically engender little fuss. (Think of the Guggenheim or the Getty, not the former Brendan Byrne Arena.) There was hardly a peep when the New York State Theater at Lincoln Center became the David H. Koch Theater in 2008, after Mr. Koch’s pledge of $100 million.

But in an era when the need for cultural largesse by the wealthy is only expanding, there has been an unusual level of opposition here to the idea of renaming a community resource after an individual patron of the arts.

Is it the timing? The size of the gift? Mr. Pérez’s career as a major developer here? Or perhaps jealousy on the part of others whose own major contributions to the arts have never secured such a high-profile designation?

Museum officials say they’ve been surprised by the community reaction to the name change, though they caution against exaggerating the response. The change, after all, they said, was approved last week by a vote of the museum board; of the 35 members present, only 4 voted against, with 1 abstention.

Thomas Collins, the museum’s director, said the institution was fortunate that Mr. Pérez, a trustee, stepped up to take a lead role in its $220 million capital campaign to bolster its endowment and construct the new building, to be completed in 2013. Mr. Pérez’s $35 million gift includes a pledge of $20 million, along with $15 million worth of Latin American art, which he collects avidly.

“He has been part of the governance and leadership of the institution,” Mr. Collins said. “He has made a major commitment of fine art to the museum. Institutions have been named for people who’ve done just one of those things.”

Many institutions have taken to naming just about anything — hallways, lobbies, staircases — to raise money. In Miami naming has become something of a rage. In 2008 the Carnival Center for the Performing Arts — named for the cruise line — was renamed for the businesswoman and philanthropist Adrienne Arsht after her $30 million gift. When the Miami Science Museum opens its new building in 2014, it will be renamed the Patricia and Phillip Frost Museum of Science. There is also the Frost School of Music at the University of Miami and the Frost Museum of Art at Florida International University.

Naming is often a prickly issue for an institution, since it links it to a person in the public’s mind.

Michael Kaiser, president of the John F. Kennedy Center for the Performing Arts in Washington, said that institutions have to be careful about whom they agree to be associated with. “I’m not sure anyone would want to have the Bonnie and Clyde Opera Company,” he said.

Sometimes property has to be unnamed. The Vilar Grand Tier at the Metropolitan Opera House, for example, went back to being just the Grand Tier after its benefactor, Alberto W. Vilar, failed to come through on his financial commitments.

Developer Jorge M. Pérez gives $35 million naming donation to Miami Art Museum - Miami-Dade

Billionaire condo developer Jorge Perez gave a$35 million naming donation to Miami Art Museum. (Miami Herald file photo)

"Joining the ranks of major givers in Miami, developer Jorge Pérez has pledged to donate $35 million in cash and art from his personal collection to the new Miami Art Museum, which will bear his name when it opens in two years.

The donation includes $5 million that Pérez has already pledged and partially paid; an additional $15 million for the capital campaign and $15 million worth of Latin American art to be chosen by the museum."

Dissent over proposed gift, new name at @MiamiArtMuseum @MiamiHerald @glljunior #Art

 
Interesting Story...

Posted on Friday, 11.18.11 In Miami Herald

A proposed $35 million gift from developer Jorge Perez to the Miami Art Museum, with naming rights, is raising the ire of several board members who say the institution’s name should not be for sale.

 http://www.miamiherald.com/2011/11/17/2507449/dissent-over-proposed-gift-new.html#