RD271 - The Science Museum of Virginia Report to the Chairmen of the House Appropriations and Senate Finance Committees on the Future of the Virginia Aviation Museum


Executive Summary:
This report has been prepared in response to the following 2009 Appropriation Act provision:

The Virginia Aviation Museum in Richmond, Virginia and the Virginia Air and Space Center in Hampton, Virginia shall jointly report to the Chairmen of the House Appropriations and Senate Finance Committees by October 1, 2009 on the possibility of the merger of the two entities in order to provide greater educational and cultural opportunities for the citizens of Virginia. The report shall include, but not be limited to, (1) the effectiveness and costs of maintaining a satellite facility, (2) the funding requirements of a merged facility, and (3) the disposition of the current assets of the facility to be merged including land, buildings, and exhibits under various merger scenarios.(*1)

The Virginia Aviation Museum (VAM) operates as a division of the Science Museum of Virginia. The Science Museum is a state-agency museum reporting to the Secretary of Education and governed by a Board of Trustees, appointed by the Governor. VAM is located at the Richmond International Airport on a five-acre parcel of property leased to it by the Capital Region Airport Commission. VAM houses 38 historic aircraft, more than 9,000 other items in its collection, the Virginia Aeronautical Historical Society, and the Virginia Aviation Hall of Fame.

Information concerning the actual costs of maintaining the Virginia Aviation Museum is presented herein. Preliminary estimates concerning the disposition of some collection assets are also provided, but resources have not been available to obtain professional appraisals and estimates needed for strategic decision making.

Effectiveness and costs of maintaining a satellite facility

Personnel expenses comprise the largest portion of the VAM budget. VAM has been very successful in securing volunteer support of its operations over the years. Over 5,000 volunteer hours helped support operations during FY09, which equates to 2.5 full-time-equivalent employees and over $100,000 in saved personnel costs. Due to budget cuts in FY08 and FY09, the Science Museum of Virginia (SMV) plans to utilize a greater portion of its available endowment funding to add a part-time educator and curator. Despite the weakened economy, 2009 attendance stood relatively steady at 22,589, which included 4,485 participants in Virginia SOL-based educational programs.

Funding requirements of a merged facility

As stated above, additional time and resources are needed to assess the funding requirements of a merged facility. Merger considerations include (but are not limited to):

* In any relocation scenario, the current lease stipulates that the building that houses VAM would revert to the Capital Region Airport Commission.

* The current VAM collection consists of approximately 9,000 items, which includes 38 aircraft (listed in Appendix C). A professional curatorial assessment is needed to sufficiently catalog all items, as well as determine the value and prepare the collection for any move. Some of the collection’s more notable aircraft are on loan to VAM; therefore, in many instances a merger scenario may necessitate return to the original owner. Also, there are legal questions concerning the covenants on the Shannon Collection (the original core collection of twelve aircraft that was conveyed by the Virginia Aeronautical Historical Society to SMV in 1990), which require research and consultation with the Office of the Attorney General.

* The “Agreement” dated 23 June 1990 by and between the Virginia Aeronautical Historical Society (VAHS) and SMV spells out the terms of the transfer of the building, furnishings, and collection of artifacts between these two organizations, as well as future obligations. Under the terms of the Agreement:

* VAHS assigned its lease with the Capital Region Airport Commission to SMV.

* VAHS granted title and possession of certain tangible personal property, artifacts, memorabilia, and other museum articles to SMV.

* VAHS transferred title and possession of its aircraft collection to SMV.

* VAHS created and donated a $100,000 endowment to support VAM.

* VAHS retained a proprietary right in the name “Virginia Aviation Museum” and granted SMV a license to use that name.

* VAHS reserved a non-assignable lease to use either its current offices and storage space in the current building, or to have SMV provide office and storage space of “equivalent size and amenities” as well as reimbursement to VAHS for any direct or indirect costs attributable to any VAM relocation.

* VAHS reserved the right to hold its annual meeting and its annual Virginia Aviation Hall of Fame event at VAM, at cost.

* SMV granted VAHS members free admission to VAM.

* SMV agreed to seek VAHS counsel regarding the maintenance, disposal, and replacement of any VAHS-donated aircraft.

* The Agreement specified, “To provide a tangible link with the donor [VAHS],” the SMV Board of Trustees agreed to reserve two seats on the Board of Directors of the Science Museum of Virginia Foundation, Inc.

Disposition of current assets

* The current building reverts to Capital Region Airport Commission if VAM relocates.

* The Science Museum of Virginia is accredited by the American Association of Museums. Disposition of any collection assets must follow American Association of Museum policy, SMV collections policies, and state property disposition rules. The total VAM cost to disassemble, crate, transport, and reassemble aircraft is unknown. Verbal, non-binding estimates for moving some of the aircraft range from $30,000 for the Douglas A-4C to $100,000 for the Lockheed SR-71A. SMV would have to solicit formal bids from qualified contractors to reasonably determine costs, depending on the ultimate disposition of each aircraft.

* To dispose of about 9,000 non-aircraft items in its collection, VAM would need additional financial resources to inventory and catalog these items, in order to have adequate information for the appraisal and proper disposition of the collection.

The Science Museum of Virginia is completing a comprehensive strategic planning process involving more than eighty organizations and key stakeholders. One of the institutional outcomes of the new plan is for SMV to align, leverage, and use its satellite facilities to accomplish its statewide mission. A strategic goal of integrating satellite facilities into the new conceptual framework, or spinning them off, is expected to be adopted by the SMV Board of Trustees. However, there are important questions that remain unanswered and that will require additional research and study before they can be resolved.

The Trustees of the Science Museum believe that additional time and funding are needed to complete a detailed examination of whether the Virginia Aviation Museum fits into the new conceptual framework and can play an enhanced role in furthering the science education mission of the SMV, or should be realigned with the Virginia Air & Space Center, another entity, or a combination of partner organizations.
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(*1) 2009 Virginia Acts of Assembly, Chapter 781, § 1-69