AMOA, Arthouse to start merger talks

Signaling a possible major shift in the cultural landscape, the Austin Museum of Art and Arthouse are to begin discussions of merging, leaders from both institutions announced Thursday.

Lynn Sherman, board president of the Austin Museum of Art, said that a task force involving board members from both institutions has been formed but that discussions have not yet begun. Sherman said no timetable has been set for any decisions.

"We're not going to do anything rash, but we're committed to moving discussions along," he said. "We've gotten enthusiastic response from both boards to move ahead with the task force."

Both AMOA and Arthouse are private nonprofit organizations funded by a combination of private, foundation and corporate donations as well as public grants.

Artistically, the two institutions have missions that could be compatible. And each organization has something the other wants.

AMOA presents exhibits that essentially span the past century of art, and it has a modest permanent collection. It also operates Laguna Gloria, a historic home that shows small exhibits and has a 12-acre site in West Austin. But after October, it will leave its temporary downtown space at 823 Congress Ave.

Arthouse has a permanent downtown home and presents strictly contemporary art, but does not maintain a permanent collection.

Issues that would need to be addressed might include how the two organizations would financially merge and what name such an institution would bear.

The possibility of a merger has the support of one major Austin philanthropist and world-recognized art collector.

"I think it's a natural," said Mickey Klein, who sits on the board of Arthouse and, with his wife, Jeanne, has amassed one of the best private contemporary art collections in the country. "We're in a small city with a limited base of donors for the arts, and we're all after the same dollar, which is diminishing. We don't need competition. We need collaboration."

Late last year, AMOA became arguably the most cash-rich arts institution in Austin when it ended its nearly three-decade bid to build a museum of its own downtown and sold its vacant lot adjacent to Republic Square Park to Travis County for $21.75 million. AMOA also has an endowment of $3.5 million.

The contemporary arts center Arthouse, in turn, recently emerged as a trendy downtown cultural destination after a $6.6 million architecturally sophisticated renovation of its historic building at Congress Avenue and Seventh Street.

But each organization has had its share of problems recently.

The sale of its lot in December capped AMOA's expansion efforts that since the early 1980s included scrapping designs by two prominent architects and spending more than $16 million in two lengthy attempts to build downtown, leaving arts supporters cautious about the museum's ambition. In January, museum officials announced that Dana Friis-Hansen had left as executive director. And in February, AMOA decided that it would not renew its lease at 823 Congress Ave., a gallery space it has rented since 1995 in order to have a downtown presence.

Arthouse, meanwhile, reopened its Congress Avenue building in October after a much-celebrated renovation. The new facility expanded Arthouse's galleries by nearly threefold, and the organization's programs were ramped up. On reopening, Arthouse also doubled its staff and its budget.

But when the building opened, Arthouse leaders reported that they had raised only $5.4 million toward a $6.6 million goal, and rumors of financial difficulties swelled. It has since reduced its budget to $1.1 million and eliminated staff positions.

In April, the organization's artistic credibility came under the art world's scrutiny when it was revealed that Arthouse leaders had allowed Warner Music Group to modify British artist Graham Hudson's installation "Rehearsal at the Astoria" for a promotional event during the South by Southwest Music Festival. Arthouse officials did not seek Hudson's permission, which raised the specter that the organization was in violation of the Visual Artists Rights Act of 1990, which grants artists the right to prevent modification to their work.

Several board members, including prominent Texas artist Dario Robleto, resigned in the wake of the dustup.

Any merger between AMOA and Arthouse would follow a recent national trend as museums try to sustain their operations amid an economic downturn.