Kennedy Center warns it could close today in bankruptcy

The Kennedy Center could be heading for an actual shutdown. The Washington Post reported that the iconic Washington, D.C., performing arts center says it is so financially strained that it could run out of money for payroll and routine maintenance within weeks. According to a reported board resolution, the institution could be forced to close as it undergoes a massive renovation.

Somehow, the fight over putting President Donald Trump’s name on the building is right in the middle of this. A resolution prepared for the Kennedy Center’s board says the institution is facing “certain fiscal collapse within weeks” and that Trump has offered to help raise the money needed to keep it out of bankruptcy. There’s a catch however, as the resolution says Trump is unlikely to provide that financial rescue or oversee the renovation unless his name is added to the building.

So, somehow, the Kennedy Center’s financial survival and the Trump naming battle are now tangled together.

The building is in trouble

Another resolution prepared for Tuesday’s board meeting proposes closing the Kennedy Center while renovations take place for the next two years. The board describes the building as “unsafe for continued occupancy,” citing problems identified by outside consultants.

That claim is already being challenged. Rep. Joyce Beatty, a Democrat from Ohio and Kennedy Center board member, told the court that the construction consultants hired by the board never actually said the building was unsafe.

This comes as a federal court hearing is scheduled for Tuesday morning in Beatty’s lawsuit over Trump’s attempt to rename the center just hours before the board is due to meet. Beatty’s attorneys have asked the court to intervene, arguing that the new closure and naming moves run into an earlier court order.

The Trump name fight is on

The Kennedy Center was created by federal law in 1964 as a living memorial to President John F. Kennedy. In May, U.S. District Judge Christopher Cooper ruled that the center must remain named for Kennedy and said changing the name would require congressional approval. The center eventually removed Trump’s name from its exterior sign in June, although it did so after the court's deadline. A huge tarp was then left covering the facade, hiding the sign from public view.

Now, the board appears to have found another route. Instead of formally changing the Kennedy Center’s name, one proposed resolution would add an inscription recognizing Trump beneath the main exterior sign.

The resolution argues that Trump should receive prominent recognition because he is supposedly the person capable of raising the enormous amount of money needed for the center’s renovation. Commerce Secretary Howard Lutnick has made a similar argument. According to him, the renovation could cost $400 million to $500 million if done conventionally, but potentially $257 million if Trump, who he called “the greatest builder in the world,” oversees the construction. 

The source of the problem

The Kennedy Center’s financial problems did not appear out of thin air. Performing arts institutions typically survive through a mix of ticket sales, donations, and government support. But the center has seen both audiences and artists pull away over the past year as its leadership under Trump has become increasingly politicized. Its event calendar is now much smaller than it once was, while donations have reportedly dried up.

The center has also gone through major leadership changes. Former president Richard Grenell pushed the institution toward performances that generated revenue or at least broke even. Its current president and CEO, Matt Floca, previously ran facilities at the center and does not have a background in artistic direction, fundraising or arts administration.

Now the institution is staring at a potential shutdown while simultaneously trying to convince a federal judge that its building needs to close for renovations.

The Kennedy Center’s board is scheduled to meet Tuesday to vote on the resolutions. So the next chapter could involve bankruptcy, a two-year closure, another court fight or some combination of all three. And, of course, there’s still that tarp.

Sources: WXXI News, Central Oregon Daily