Madoff Scandal Hits City Center, But Renovation Not Affected

Bloomberg News reports that in December 2005, New York City Center theater set up planning a roughly $300 million renovation project, after soliciting ideas from the Paul Taylor Dance Foundation and other resident companies.

"They said, ‘dream out loud,' and we did," said John Tomlinson, general manager of Paul Taylor.

City Center told the Bllomberg news team that the top-to-bottom makeover eventually will proceed, even though six members of its 32-person board of directors invested with Bernard L. Madoff, who is alleged to have run a $50 billion Ponzi scheme. The six donated at least $260,000 to City Center last year, according to a program of one of productions of the musical revival series "Encores!"

The renovation "has not been affected by the Madoff situation," City Center President Arlene Shuler said in an e- mail statement in response to questions from Bloomberg News. She said she "doesn't know how her board's Madoff investments will affect fundraising this year" Bloomberg News added.

The large-scale scandal rocked Wall Street as well as Main Street as Bernard Madoff, a successful Wall Street mainstay and investment advisor was arrested for an alleged $50 billion dollar fraud against investors.

His arrest has struck fear in the hearts of investors worldwide, it is starting to be felt in the already bruised and battered world of creative nonprofits.

Time will tell how deep the scandal will be felt as several arts seasons begin.

To read the entire Bloomberg article click here.