Intiman Theatre's mounting debts are life-and-death financial drama

In recent days, rumors have swirled over the financial stability of Intiman Theatre, a Tony Award winner and one of Seattle's "Big Three" professional regional theaters.

Those rumors only grew more persistent when the board president released a statement talking about recent "management missteps" and lapses in oversight that led to late payments to creditors.

Intiman's exact financial situation isn't clear.

Intiman leaders say "corrective measures" are being taken, that the theater is not in danger of closing and that this season and the next are proceeding as planned.

But they won't disclose, or may not even know, what the theater's exact current financial situation is. Among the questions: How much of a deficit the theater recorded the last fiscal year, what its accumulated debt is, how much it owes to whom, why payments were missed, how much cash it has, and how much it's drawn recently from its line of credit.

This much is known: Intiman recorded a $518,000 deficit in 2008-09, the most recent year for which Intiman's tax records are available. It owes Seattle Center about $285,000 in back rent and utilities. It was late in paying some union dues; its endowment has fallen from $3.6 million about two years ago to about $1 million now; and it's renegotiating its $1 million line of credit.

The theater earlier had requested an extension on its 2010 tax filing and now is requesting another one. And its board and staff are trying to determine the full scope of the financial problems.

In some ways, Intiman's economic woes echo those faced by other cultural organizations, which have been especially hard hit in the recession. There are other groups, for example, that have not been able to pay their full rent at Seattle Center or are behind on union dues.

But Intiman also is facing unique challenges. Earlier this month, Intiman managing director Brian Colburn resigned after less than two years, citing personal reasons. The theater's finance director is on maternity leave. And its new artistic director, Kate Whoriskey, is in her first season in the post held by the Tony-winning Bartlett Sher, who had headed Intiman for about a decade.

The theater has a history of financial challenges.

"Intiman has had, through the years, a difficult time making its operating revenues equal its operating expenses," said James Tune, president and CEO of ArtsFund, which raises money for the arts in Western Washington. "It has run deficits off and on for many years, as a consequence of which, Intiman has periodically had campaigns to eliminate its debt."

From 1998 to 2009, Intiman ended seven years in the red, according to tax records.

That in itself is not unusual for the "Big Three" theaters. Over the same period, Seattle Repertory Theatre and ACT Theatre each ended up with nine years in the red.

But the Rep has a larger endowment to fall back on. And after two years of aggressive cost-cutting, including instituting four-day work weeks, the Rep saw a surplus for the 2009 fiscal year and a balanced budget for 2010.

ACT, which had been on the brink of collapse in 2003, implemented stringent measures and innovative membership programs over the past two years. It ended last year with a surplus and is on track to a balanced budget this year.

Intiman has cut back too, not filling positions when people left and trimming production and other costs, said acting managing director Melaine Bennett, Intiman's former development director.

Intiman leaders would not disclose the size of its operating deficit for the fiscal year that ended March 31, though Bennett said it wouldn't look that different from 2008-09. Its current annual budget is about $5.5 million.

Bennett said the theater drew about $300,000 from its endowment earlier this year.

Intiman earlier had asked for an extension on filing its taxes because the theater is in the process of changing its fiscal year to end on Dec. 31. It's now asking for another extension until February.

Until paperwork has been completed for that, theater leaders say they're not going to disclose exact figures.

"While we understand that there is a desire at this time for information immediately, we are going to take the time to make sure that this information is accurate," Bennett said.

Staff and board are still investigating how much accumulated debt Intiman has, she said.

Among the organizations the theater owes money to is Seattle Center. The theater, which pays a monthly rent of about $9,400, owes $185,000 in back rent dating back several years, along with $100,000 in back utilities.

Intiman had been on a repayment plan but missed several payments over the past six months, said Deborah Daoust, spokeswoman with Seattle Center. Members of Intiman's board have met with Seattle Center staff to work out a repayment plan, Daoust said.

Intiman is not alone in having problems with rent payments to Seattle Center. In 2002, KCTS 9 missed its yearly payment, but it has since paid it back with interest. Seattle Children's Theatre has negotiated a rent-deferment plan. The Children's Museum, Seattle owes back rent dating at least back to 2009 and is negotiating repayment.

Intiman also missed some payments to unions earlier this year.

Since August, it hasn't paid dues to Actors' Equity Association, though there is a now a payment plan in place, said a spokeswoman for the union. The spokeswoman declined to say how much Intiman owed, but said it's not unusual for theaters to miss payments, especially since the economy tanked.

Intiman was late with a couple of payments to International Alliance of Theatrical Stage Employees, but has since paid up. A union representative said it hasn't been unusual lately for theaters to fall behind.

Intiman's board has been meeting to go over finances and plans to move forward, Bennett said.

Board members have committed to giving $1 million over the next five years. They're also working on ways to get donors to give in multiple-year increments.

"I'm very optimistic," Bennett said.

Janet I. Tu: 206-464-2272 or jtu@seattletimes.com