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Queen Mary’s Chief Donor, Fund-Raiser Quits Board : Finances: Robert Gumbiner, who donated $2 million earlier this year, resigns at critical time. The ship ran up $2.2-million deficit in first four months of operation under free-admission policy.

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TIMES STAFF WRITER

The Queen Mary, plagued by financial troubles for years and losing money since it reopened in February, also has lost its chief fund-raiser.

Dr. Robert Gumbiner, who helped keep the ship afloat earlier this year with a $2-million donation, has resigned as head of the nonprofit RMS Foundation Inc. that runs the attraction.

Gumbiner said his decision was not influenced by the ship’s financial woes. He signed on temporarily as chairman of the foundation’s board of directors to help reopen the ship after it closed briefly earlier this year.

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Now, as chairman of FHP Inc., one of the country’s largest health maintenance organizations, Gumbiner said he wants to spend more time on national health care reform.

“I just don’t want to be tied up in the Queen Mary when I need discretionary time for health care matters,” he said.

City leaders greeted Gumbiner’s departure early this month with mixed reactions. Some questioned whether the foundation can raise enough money to operate the ship without the influence of Gumbiner, a well-known philanthropist.

“It is a very definite setback,” Mayor Ernie Kell said. “He’s a good name, a good fund-raiser.”

Other council members said Gumbiner’s presence on the board of directors will not be missed and expressed confidence that foundation President Joseph F. Prevratil can turn the ship’s fortunes around.

Prevratil said he is negotiating joint-venture agreements to operate the Spruce Goose Dome as an entertainment attraction next door to the ship. It is now leased to a film company. In addition, he hopes to find financial backing for a $12-million private bond issue, which would go to refurbish parts of the ocean liner and to build new rides and attractions on land next to the ship.

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He would not elaborate on the plans, but said the city would not be responsible for repaying investors.

Prevratil will appoint two board members to replace Gumbiner and his son, Burke, who also stepped down. He declined to say who he was considering for the posts.

“Dr. Gumbiner leaves (the ship) in good hands, with valuable assets all around it and a City Council that values it,” said Councilman Warren Harwood. “I think you’re going to see the Queen Mary in Long Beach in 10 years, in 20 years----a permanent fixture.”

Gumbiner’s departure comes at a critical time for the historic ship.

The Walt Disney Co., which took over the Queen Mary in 1988, decided not to renew its operating lease with the city and closed the ship last December after suffering repeated losses--up to $10.8 million annually.

Although the City Council debated whether to sell the vessel, it ultimately chose to lease it to the foundation for five years. With Gumbiner’s help, the ship reopened early this year. A free-admission policy was introduced, but officials began charging a $5 entry fee last summer after revenues were lower than anticipated.

During its initial four months of operation, the ship lost $2.2 million, with most of that due to refurbishing costs and the free-admission policy, Prevratil said. Subsequent deficit figures were not available. City leaders do not plan to put any more general fund money into the ship.

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The city’s semiautonomous Harbor Department is funding $6.5 million in ship repairs. Foundation officials estimate it will cost $5 million a year to operate the ship.

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