With two weeks to go before a trial concerning the validity of deed covenants restricting the sale of the August Wilson Center for African American Culture, the group of foundations opposed to the sale released a statement outlining why its $7.2 million “standby bid” is superior than the $9.5 million bid by 980 Liberty Partners, which plans to build a hotel above the bankrupt center.
Heinz Endowments President Grant Oliphant reiterated some of the same points while slamming the 980 Liberty Partners’ bid in an op-ed piece published by the Pittsburgh Post-Gazette.
Simultaneously, Heinz separately filed a petition with the court demanding the return of a $500,000 endowment grant it awarded the center in 2007. The filing argues that a requirement for receiving the grant was that it be returned if the center were to cease operations “for any reason.”
Communications Director John Ellis, who like Oliphant recently moved to Heinz from the Pittsburgh Foundation, said Heinz was forced to file the petition because it had previously asked for the grant to be returned and was denied by court appointed receiver Judith Fitzgerald.
“She argues that the center has not stopped operating and has had events there as recently as Aug. 2. But it is not operating in the manner that was conceived when the grant was given,” said Ellis. “Regardless of the outcome of our bid, these funds will always be used to fund African-American art in some respect. It is hoped they will be returned and can be used in conjunction with our bid for the center, should it be successful.”
The Foundations’ statement indicates that if its bid were successful, the AWC would be owned by the Pittsburgh Foundation and operated as an affiliate organization with a new board of directors that includes African-American leadership, and individuals with expertise in building facilities oversight, fiscal management, and arts and culture facilities management.
Secondly, the foundations would contract with the Pittsburgh Cultural Trust to handle the day-to-day operations for the center. The foundations are also working with various people and entities in the African-American arts and culture community on the formation of a new nonprofit entity that “will contribute significantly to future programmatic initiatives at the August Wilson Center.”
The release said the foundations made a proposal to 980 that involved limited access to the center from the proposed Hotel’s lobby that was rejected.
“However they characterizes their plans, the August Wilson Center will cease to exist as we know it,” said Ellis.
The release notes that the foundations; Pittsburgh, Heinz and the Richard King Mellon Foundation, originally put $20 million into the center along with another $15 million from government, corporate and private sources.
The trio’s new bid also includes government funds: $1.2 million from the Pittsburgh Urban Redevelopment Authority and $1 million from Allegheny County. The foundations said they would consider funding the maintenance, operations and management of the center for three to five years.
Oliphant said despite assurances, the Center would be destroyed if 980 were allowed to purchase the building and develop the hotel–the money for which, he added, no one has yet seen.
“The developers have requested two more months to produce evidence that they have the means to execute their proposal…call me crazy, but I come from the ‘I’ll believe it when I see it’ school,” Oliphant wrote.
Molly Beerman, interim CEO at the Pittsburgh Foundation, said if their bid is accepted, the AWC will be debt free.
“We have been deliberate in our strategy to separate the center’s building management from its arts and cultural programming so that the August Wilson Center cannot again become encumbered by debt and possible liability.”
Mortgage holder Dollar Bank’s definition of “debt free” does not include the minimum $2-million loss it would take under the foundation’s plan. It has scheduled the AWC for a Sheriff’s sale Oct. 6.
Common Pleas Judge Lawrence O’Toole has scheduled a trial on Sept. 29 during which the URA will argue deed restrictions that “run with the land” prohibit the proposed sale to 980.
