Kennedy Center Could Close Tuesday as Leaders Warn It Is Near Bankruptcy
The Kennedy Center could close its main building as early as Tuesday as leaders warn the Washington performing arts institution is nearing bankruptcy and say deteriorating conditions have made the property unsafe for continued occupancy.
A 57-page packet prepared ahead of a Sept. 15 meeting of the center's board of trustees warns that the institution could be unable to make payroll or pay routine maintenance costs within weeks. Trustees are being asked to consider immediately closing the main building as they confront what officials describe as a "certain fiscal collapse."
No bankruptcy case has been filed.
The financial warning comes as the John F. Kennedy Center for the Performing Arts remains locked in a federal court fight over President Donald Trump's name and plans to close the building during a roughly $250 million renovation.
Internal projections previously obtained by The Washington Post showed the center expected about $124 million in revenue during the fiscal year ending Sept. 30, well below the roughly $220 million originally budgeted. Officials projected a deficit of about $23 million even after substantial spending cuts.
Management now says the problem is more urgent. Board materials state that Trump has offered to help raise the money needed to keep the center from bankruptcy during renovations, while arguing that his continued involvement depends on receiving public recognition for the effort.
The proposal again brings the center into a dispute already before U.S. District Judge Christopher Cooper.
Cooper ruled in May that the board lacked authority to rename the institution after Trump because Congress established it as a memorial to President John F. Kennedy. He ordered Trump's name removed from the building and blocked a separate board decision to close the center for about two years during renovations.
The shutdown ruling turned largely on how trustees reached that decision. Cooper found that the board had not adequately considered the consequences of closing the center and had fallen short of its duty to act prudently.
His order still allowed trustees to consider a new closure after weighing their responsibilities more fully.
The board did so in August, again approving a roughly two-year shutdown after reviewing several construction options. Officials said consultants concluded that closing the building would allow renovations to be completed more safely, quickly and at lower cost than keeping it open during phased construction.
Rep. Joyce Beatty, an Ohio Democrat and Kennedy Center trustee who filed the lawsuit challenging the board's actions, is also contesting the new decision.
Tuesday's proposal would go further by closing the main building immediately.
Officials say the need became more urgent after a Sept. 4 storm, when a roughly four-by-five-foot section of ceiling plaster broke loose in the Grand Foyer and fell about 60 feet near the entrance to the Concert Hall. No injuries were reported.
Inspectors later found additional areas showing water-related deterioration. Engineers examining exterior components also reported widespread corrosion beneath an overhang surrounding the building.
Of roughly half of the center's 278 soffit panels examined, officials said 46 showed severe structural corrosion and another 93 had mild to moderate corrosion. Engineers estimated that about one-third may require immediate replacement.
Management has concluded that the building is unsafe for continued occupancy and argues that major repairs cannot safely proceed around audiences and employees because the work would affect structural, electrical and other interconnected systems.
The proposed closure would apply to the Kennedy Center's main building. The Reach, a newer section of the complex, would remain open, while performances and other programming could continue at other venues.
The latest safety findings could also strengthen the board's position if another shutdown is challenged in court. Cooper blocked the earlier closure because of flaws in the board's decision-making process rather than imposing a permanent ban on closing the building.
Trustees are expected to consider both the immediate shutdown and the center's financial future Tuesday, placing the Kennedy Center's cash crisis, renovation plans and continuing legal battle before the board at the same time.
