Art Exchange

Photo by Gisela Merino

Members of the Long Beach arts community appealed to the City Council Tuesday for the termination of the lease between Long Beach Art Exchange and the City, citing what they believe to be several breaches of its contract. Officials with the Art Exchange also showed up to deny the allegations, which they say could not be further from the truth.

The Art Exchange currently operates out of a stretch of City-owned storefronts on the corner of 3rd St. and Elm Ave. in the East Village Arts District. Among the units are art galleries, maker spaces and artist studios in which exhibitions and events are hosted, most notably during Second Saturday Art Walks.

But what is at issue for those who called on the City to terminate Art Exchange’s lease is the nonprofit’s lack of consistent after school programming, which they say was a provision of their lease to begin with. According to the Art Exchange’s lease, signed in December of 2011, the non-profit pays $1 monthly rental fee to the City on the terms that it provides low or no-cost after school and summer arts programs to local disadvantaged youth “in a manner reasonably acceptable by the landlord.”

According to Art Exchange Co-Founder and Co-Chair Steve Elicker, the Art Exchange features a rotation of local artists and art instructors who may provide their own arts and education programs. This summer, the Art Exchange hosted a summer teen art camp, though some say the fees were too high to qualify as “low cost programming.”

Claudio Garzón, co-founder and director of creative affairs of Save Oceans and Seas, argues that the Art Exchange also does not satisfy providing after-school programs as stated in the lease because its programs are not provided on weekdays, directly after school on a regular, reliable basis.

In June 2013, Garzón says that he began organizing an art and science fusion program for Art Exchange’s Summer Art Experience. He says he canceled his plans after learning the cost of studio use would be $350 and that admittance for children per session could range between $325 to $340.

Garzón believes the steep summer workshop fees undermine the organization’s mission of providing an alternative outlet for underserved, disadvantaged communities who could find a safe haven at the Art Exchange. Art Exchange officials say that every student who applied for a scholarship for the summer program, however, received one.

“One of our goals is to provide artists an opportunity to teach,” Elicker said, noting that the artists that rent the spaces dictate the costs. “[The Art Exchange] takes care of liability insurance, we provide space; they in turn help us cover the costs.”

Lisa Hernandez, founder of the nearby Long Beach Depot for Creative ReUse, also believes the Art Exchange should be held accountable for how they cover those costs, specifically the alleged subleasing of their premises at 340, 352 and 356 E. 3rd Street.

The Art Exchange is funded through grants and private donations and its lease forbids any subletting, but several former tenants say they have been charged rent, including the Long Beach Free Store (LBFS), which was charged $350 per month before its cessation from Art Exchange Oct. 5. Other tenants say their monthly “rent” is actually a donation and it has never been forced upon them as rent.

Hernandez believes that the verbal charging of a monthly fee–whether it is framed as a donation or rent–violates section 18 of the Art Exchange’s lease agreement.

Art Exchange2“The Art Exchange has abused the trust given to them to help the community with arts programs and it’s disappointing to see an organization functioning as property managers for city-owned properties,” she told the council Tuesday night.

No paperwork specifying any subleasing terms was ever written for any tenants. Elicker considers the monthly donations a share of cost that everyone understands when they move in.

“I think there’s a misconception that nonprofits have no operating costs,” said Elicker. “We are benefitting from a $1 [property rent] a year, but we still pay the possessor tax, liability insurance, utilities, buy materials and try to hire instructors to run our programming.”

Some local residents and parents, such as Jewell Faamaligi, remain skeptical as to whether the Art Exchange has fully optimized its funds to meet the lease agreement goals.

“When [City Councilwoman ] Suja Lowenthal presented the idea of having a vibrant arts facility, it sounded like a great idea,’ Faamaligi said. “They were supposed to deliver after-school arts programming four days a week… Two years later, that programming has not happened.”

No such “four days a week” requirement is specified in the lease agreement, though that verbiage did appear in the original staff report presented to City Council that allowed the lease to be drawn. Citing these issues, Faamaligi, Hernandez and others appealed for the use of the property be granted to the Arts Council for Long Beach, the City’s official arts advocacy organization.

Elicker, however, believes the allegations against the Art Exchange stem from a misunderstanding of nonprofits perpetuated by sensationalism through social media and a lack of communication.

“We hold monthly public meetings at the Art Exchange… not once were these concerns brought to us,” said Elicker. “City Council heard about it before we did.”

City Management was directed Tuesday to look into the accusations and determine if any part of the contract was breached.

The next Art Exchange board meeting will be held Oct. 23, from 6:00PM to 7:30 PM. For more information on the Art Exchange’s art programs and exhibit visit their website or Facebook page.

Eds. note: A previous version of this story incorrectly listed artist Leah C. Dixon as someone who has been charged rent by the Art Exchange. As a member, she gives a donation to contribute to upkeep of the building that is not rent and has never been described to her as rent.

Art Exchange Lease with the City of Long Beach