Inside story: HOTA in deep heat as ratepayers billed $1 million for Andy Warhol affair

The HOTA gallery opened in May at a cost of $60.5 million. The fireworks display looked fantastic. Now there are crackers sounding off inside council about $1 million to ship an art collection.

Opinion

THE Home of the Arts (HOTA) gallery opened in May, at a cost of $60.5m. The fireworks display looked fantastic. Now there are crackers sounding off inside council about $1m to ship an art collection.

The first Act of this drama began when Mayor Tom Tate was sent a letter from HOTA board chair Professor Ned Pankhurst seeking more council backing to secure the Contemporary Masters from New York, featuring iconic ’60s artist Andy Warhol.

A council insider told your columnist: “One million dollars for 70 arts pieces to be shipped over. The Mayor hit the roof. An email was sent to all councillors. The view was to not give them a cent.”

But the plot suddenly thickened.

Your columnist was told that if HOTA pulled out of the deal, the contract specified the council – essentially us ratepayers – would have to pay $1m in compensation to the collection’s wealthy owners.

“We were snookered,” the council insider said. “The view was let HOTA find their own $1m. They had stuffed up the contact.”

All of this has been communicated in confidential emails.

HOTA gallery (Home of the Arts), Surfers Paradise.. Picture: Jerad Williams

Then, at Tuesday’s full council meeting, councillors went behind closed doors to discuss and vote on a commercial-in-confidence HOTA item.

When they re-emerged, a recommendation showed a majority of councillors supported “50 per cent of the funding requested by the chairman of HOTA” as outlined in a confidential memo “to be provided to cover unbudgeted additional freight costs”.

Only Deputy Mayor Donna Gates and northern-based councillor Mark Hammel opposed the recommendation. There was no debate about the $500,000 top up.

But it seems our two most northern councillors, overseeing fast-growing suburbs that need bus shelters and sporting fields, were less than impressed.

Acting CEO Joe McCabe was asked to find savings in the 2021-22 September Budget review. The council insider suggests it will be from HOTA’s own budget.

Cr Tate and Mr McCabe would be tasked to undertake a review of contract obligations.

So what will happen in the third Act?

This will be about the political spotlight put on the board members and senior HOTA management.

Andy Warhol American self-portrait – The Andy Warhol Museum, Pittsburgh.

At first glance, HOTA is an extraordinary cultural asset for a city renowned interstate for its beaches, theme parks and Glitter Strip nightclubs and restaurant precinct.

The outdoor stage at HOTA, the packed markets on the weekend and the gallery with its rooftop restaurant, now providing a better priced fare, are among the best places to appreciate the beauty of this city with its waterways and green behind the gold.

None of the councillors have spoken publicly about the Warhol decision, but the Mayor made it clear in a statement that the review will be transparent and ratepayers advised about the contract and costs.

All of this follows Bulletin reporting this year outlining the hidden costs of operating HOTA, amounting to about $20m a year.

To provide balance, councillors are having to tick off on $1m increases due to Covid for waste programs and light rail works.

What you as ratepayers and our councillors need to debate is the bigger picture on whether we want the arts to be a commercially viable operation.

Or are we prepared to pay a bit more for something other than the white sand between our toes on the Gold Coast — and how much?

For just more than $1m, the council can subsidise free bus travel for seniors and veterans on the weekend. Think about it as you hop on board for a trip to the gallery.

Gallery building at HOTA. Picture Glenn Hampson

Revealed: How much ratepayers billed for HOTA cost blowout - August 31

A COST blowout of $500,000 has occurred in the contract negotiated by HOTA to get one of the world’s largest private art exhibitions to the new Gold Coast gallery.

Several council sources suggest many councillors are furious on learning ratepayers face an extra impost in securing the world premiere for the New York masters exhibition — it is to feature iconic artists Andy Warhol and Jean-Michel Basquiat.A source said councillors were confronted with a decision on whether to pay for the extra costs under Covid to transport the collection or back out of the contract which would have incurred a fee.

“It’s quite an expense. There are challenges here in managing public expectations,” a source said.

When announced in November last year, securing the exhibition was considered a major coup for the $60.5 million Home of the Arts and promoted as a blockbuster start to its opening first 12 months.

Hota chief executive Criena Gehrke described the contemporary Masters from New York Exhibit as featuring “one of the best private collections in the world”.

But concerns about the future of the event was first publicly flagged when Mayor Tom Tate at a full council meeting on Tuesday, in a mayoral minute, talked about a support package for HOTA.

A self-portrait by Andy Warhol. Picture: Shari Tagliabue

The Mayor was backed by councillors when he sought to go into closed session to discuss the commercial-in-confidence item.

Before moving to closed, Cr Tate said he had drafted two motions which included “yes” and “no” options.

“I’d like the CEO and myself to review the contract and the obligations, because there will be other touring contracts of artwork coming. I want to understand what happened here. I’m not a lawyer, but at the very least the CEO and I we can tap into appropriate resources to understand further why this has occurred,” he said.

A majority of councillors had voted to support a recommendation which supported “50 per cent of the funding requested by the Chairman of HOTA” as outlined in a confidential memo “to be provided to cover unbudgeted additional freight costs”.

Acting CEO Joe McCabe would be asked to find savings in the 2021-22 September Budget review. Cr Tate and Mr McCabe would be tasked to undertake a review of contract obligations.

The new Gallery building at HOTA just before opening. Picture Glenn Hampson.

Only Deputy Mayor Donna Gates and northern-based councillor Mark Hammel opposed the recommendation.

The cost blow-out remains confidential but council indicates it will be publicly revealed as part of the wide-ranging review.

Several sources indicated the original request was for $1 million. The decision by councillors cut it back to $500,000.

“It is the public’s money and key review outcomes will be brought back to council,’’Mayor Tate said.

In 2020, HOTA announced it had secured the loan of an exhibition from renowned art collector Jose Mugrabi, a billionaire businessman with one of the world’s largest private art collections including around 800 Andy Warhol pieces.

The collection: titled Contemporary Masters from New York will be displayed at HOTA from November 2021 until February 2022.

HOTA chair Professor Ned Pankhurst this week wrote to council seeking additional funding to ensure the safe transport of the collection from New York to the Coast.

HOTA gallery (Home of the Arts), Surfers Paradise. Picture: Jerad Williams

Mr Pankhurst’s advice focused on additional costs associated with the Covid-19 pandemic.

Outside Tuesday’s council meeting, Mayor Tate said the review would look beyond this contract.

“Ratepayers rightly need to know that their funds are being invested wisely. HOTA is the epicentre of our broader cultural precinct so it is timely this review is done now, only a few months after the opening of the gallery (on May 8),” he said.

Pricing for entry to the New York collection is yet to be announced.

Mayor Tate said he hoped the pricing structure ensured all visitors could enjoy the touring exhibition.

The Bulletin in February this year first highlighted concerns about funding the cultural precinct. The gallery has had strong support from most stakeholders and residents who view it as asset to widen the Coast’s appeal from beyond the Glitter Strip.

Gold Coast Mayor Tom Tate points to photos of cruise ship terminal, HOTA Gallery and the hinterland cableway. The gallery remains a key legacy item. IMAGE HAS BEEN MANIPULATED. Picture: Tertius Pickard

Ratepayers would pay $15.07 million and another $5.5m from the sale of council assets to operate the new Home of the Arts this financial year, the report said.

Ms Gehrke, in a response at the time, said: “HOTA has always been committed to a balanced budget and delivering break-even or better results. Revenue through ticket sales particularly in Q1 and 2 of FY21 continued to be impacted by Covid. However, sponsorship, grants and bequests totalled $1.6m, indicating growing recognition of the importance and success of the HOTA precinct.”