L.A. Fest’s Deficit Ripples to Center : Arts: The Japanese American Cultural and Community Center suffers minor ‘cash-flow problems’ as L.A. Festival delays payments.

The L.A. Festival’s continuing financial deficit has affected at least one other Los Angeles arts organization--the downtown Japanese American Cultural and Community Center. As a result of the festival’s 9-month-old unpaid bills, JACCC executives said this week that they are experiencing minor “cash-flow problems.”

Gerald Yoshitomi, JACCC executive director, said that an unspecified debt for two JACCC-L.A. Festival co-productions and theater rental fees have forced him to delay some of his own payments.

“It’s not anything drastic, but some people that we normally pay in 30 days we’re now having to pay in 45,” he said. “We have cash-flow problems . . . when people are late in making their payments.”

Yoshitomi said the festival has made one payment to the JACCC--which has earned a reputation for presenting wide-ranging arts and ethnic programs with its $2-million annual budget. But no schedule has been discussed or set with the festival for paying off the debt, he said.

JACCC officials said the festival’s debt is a result from three sets of programs at the 841-seat Japan America Theater during last fall’s arts extravaganza:

* Three performances of the collaborative Japanese musical theater program, “Legend of the Water Flame.”

* Four dance shows by Teshigawara Saburo and his company, Karas.

* Three evenings of jazz performances by various artists including the Buddy Collette Quartet and chamber ensemble XTET.

According to Duane Ebata, JACCC managing director, the “Water Flame” and Karas programs were co-productions and the jazz programs were rentals of the theater.

Ebata said the JACCC could not afford to absorb the amount the festival owes the facility:

“We’re an institution that needs the money and needs to be paid. We are a prominent organization, but we’re trying to survive too, and our cash flow is as difficult as any small organization.”

The Los Angeles Festival, a $5-million-budgeted, 17-day Pacific-themed arts gala held at numerous Southern California locales, has been struggling to pay off its bills since the September, 1990, event. Festival officials have refused to comment on their finances and spokeswoman Maureen Kindel would not return phone calls or respond to faxed questions.

Last May, the festival was able to reduce its deficit to $200,000. Last month, a festival source told The Times that only seven festival accounts remain open. One of them is with the Rod Dyer Group, which produced the arts event’s sprawling color brochure. Jo Sayama, a spokeswoman for the design firm, would not discuss the amount owed, but said the festival has been “making regular payments on time” and is scheduled to have the account paid off “in a few months.”