The council provided a further $480,000 for operational losses this financial year, but said the funding would end on June 30, 2027.
The council also funds just under $800,000 a year to the Whangārei Art Museum in grants and rent concessions. That support will continue.
Trust chairman Bill Shepherd said both organisations had made changes to save money but a major change was needed to address the $480,000 revenue drop.
“When the council says we’ve got to take nearly half a million dollars of revenue out of the equation, quite clearly small changes around the edges are not going to change that.
“We’re operating a business of under $3m in revenue – if you take half a million out, it’s got to take some serious changes to allow for that.”
The now iconic Hundertwasser Art Centre will soon house three art exhibitions as the it merges with Whangārei Art Museum. Photo / NZME
Shepherd said a new chief executive would be appointed to lead the integration and manage the combined entity.
No changes would be made to other staff roles until the new chief executive started, likely in the new year, he said.
“We’re giving our staff as long a lead-in time as we can. We understand that people have families and mortgages.”
Shepherd said the trust had considered other options, including changing its ownership, because its status as a council-controlled organisation made it ineligible for many grants.
But he said council ownership on behalf remained the appropriate structure.
Whangārei Art Trust chairman Bill Shepherd says the merger of Whangārei Art Museum and the Hundertwasser Art Centre would address a drastic fall in revenue when the council grants end. Photo / NZME
Hundertwasser building will have richer visitor experience
Moving the Whangārei Art Museum exhibitions to the Hundertwasser building would free-up high-value Town Basin real estate worth $230,000 a year in rental income to the council, Shepherd said.
The museum’s art collection would remain in its storage, where special racks and climate control protected the artwork, he said.
Alongside financial benefits, the merger would offer a richer visitor experience in the now-iconic Hundertwasser building, Shepherd said.
The Hundertwasser Art Centre displays artworks by Friedensreich Hundertwasser, on loan from the Hundertwasser Foundation in Vienna, alongside changing exhibitions in the Wairau Māori Art Gallery.
Accommodating the Whangārei Art Museum’s revolving exhibitions would involve considerable rearrangement, to be overseen by the new chief executive, Shepherd said.
Whangārei Art Museum will no longer exhibit in its own space in The Hub in the Town Basin, but behind-the-scenes art storage will remain. Photo / Denise Piper
But it was important the art museum kept its own unique exhibitions, he said.
“Fitting three exhibitions into a space currently occupied by two exhibitions will require careful consideration. We are working very closely with all parties, in particular the Wairau Māori Art Gallery’s staff and board.”
Shepherd said the Hundertwasser Art Centre had attracted more than 200,000 visitors in its first four years despite the challenges posed by Covid lockdowns and state highway closures.
It had become a critical asset to Northland’s economy and culture, with Northland NZ estimating the centre’s ongoing economic impact at $7m a year, he said.
Shepherd said the council had funded just $2.9m of the centre’s $33.5m construction cost, with the rest coming from private donors and the Provincial Growth Fund.
From the centre’s opening in 2022 to September this year, the council had contributed about $1.17m towards operating costs, he said.
Denise Piper is a news reporter for the Northern Advocate, focusing on health and business. She has more than 20 years in journalism and is passionate about covering stories that make a difference.