Chaos Is the Only Constant at Symphony’s Headquarters

The name of the tune at San Diego Symphony Assn. headquarters Tuesday was “Confusion.” Officials spent much of the day fielding phone calls from curious reporters, but answers were hard to come by.

“We don’t have a specific course of direction,” symphony spokeswoman Melissa Smith said one day after the symphony ceased operations by severing relations with its musicians.

Symphony officials conceded that they have little idea of how to accomplish their two primary objectives--revealed Monday--of paying off all creditors and providing “high-quality music” to the community.

“We should have our own orchestra and should be paying back our debts with our own orchestra. That’s what we’re here for,” Smith said. “But that’s not possible.”

Instead, the symphony is now considering a range of options to reduce its operating debt of more than $1.3 million.

Among the options, Smith said, is returning $400,000 in refund requests from season subscribers and renting Symphony Hall to such groups as the La Jolla Chamber Music Society, which is presenting the Chicago Symphony there Feb. 4.

Smith said the symphony could also lease the recently renovated hall “if there are people who would like to lease it.”

“Obviously the last thing we want to do is sell the hall, which is our primary asset. I think we would exhaust all other possibilities before doing that,” Smith said.

Because of its dispute with the musicians and their union, the American Federation of Musicians, the symphony can not offer any union musical acts itself.

“They’re on our unfair list,” said C. Patric Oakley, secretary-treasurer of Local 325 of the American Federation of Musicians. “For them to act as employer of a group, it would not be a union group.” Virtually all professional classical music players are federation members.

In order to maintain its tax-exempt status, the symphony must continue to meet its legal purpose, which, according to its articles of incorporation, is “to promote the cause of musical art and culture in this county and community” but not for pecuniary profit.”

In any event, with its substantial operating and capital debts, it probably will be a long time before the symphony would be in a position to make a profit. Its largest creditor is a consortium of four banks that is owed $3.7 million on a $4.5-million construction loan used to renovate Symphony Hall.

Representatives of the consortium met Monday to consider the implications of the symphony’s action. “Because it’s a consortium, it’s a group decision. They have not yet determined what their position is or what their strategy is,” said Sheree Zizzi, a spokeswoman for Home Federal Savings & Loan, one of the lenders. “We prefer to work with borrowers rather than go into proceedings to recover. It’s time-consuming and costly.”

The lenders are scheduled to meet again later this week, Zizzi said.

The symphony owes $500,000 on an unsecured line of credit to another group of nine banks. “We’re watching very carefully,” said Ken Ulrich, Great American Federal Savings Bank vice president for public relations. Great American extended loans to the symphony through the construction consortium and in the line of credit.

At City Hall, San Diego Mayor Maureen O’Connor said she is “disappointed and dismayed” at the symphony’s action. The symphony does not owe the city money, but it could lose $500,000 of a $1.5-million pledge--the largest single donation--made for Symphony Hall.

“My hope is that we do have music restored to this town,” O’Connor said. “My suggestion to Mr. Solomon and the musicians is to get a facilitator in there with concern for the community. (Herbert Solomon is president of the symphony association’s board.)

“The community is very upset. They put a lot of money into the symphony and thought it was mismanaged. They want to hear music. And they don’t hear music. And they’re not even getting refunds.”

As for the $500,000 due to the symphony next summer, O’Connor said she wants to see the money used to make sure that, at least, the summer pops series continues.

In addition, the symphony could lose more than $200,000 in contributions from COMBO (Combined Arts and Education Council of San Diego County), the city’s private arts-funding group. A COMBO official said its board will probably refer the matter to its allocations committee at a regularly scheduled meeting on Thursday.

Smith, who was the symphony’s marketing director, said that the decision Monday was reached at a special board of directors meeting called after musicians rejected the symphony’s final $17-million three-year contract proposal.

“Every possible alternative was considered. Bankruptcy was rejected strongly,” Smith said.

Asked how the 10 staff members and the symphony’s music director, David Atherton, could be paid, Smith said there is “a small amount” of money left in the bank.

“As for the long term, I don’t know what the staff will be,” she said. “Right now, everybody is taking it a day at a time and not looking beyond that.”

Times staff writer Ralph Frammolino contributed to this story.