San Antonio Philharmonic Faces Lawsuit as City Funding Secured Amidst Legal Dispute

San Antonio Philharmonic Faces Legal Challenges Amid City Funding

San Antonio – The San Antonio Philharmonic has found itself in a bit of a pickle this month, navigating through the ups and downs of city politics and legal disputes. This nonprofit orchestra, which emerged from the remnants of the San Antonio Symphony back in 2022, has been making waves as it recently secured $411,000 from the City of San Antonio and Bexar County, aimed at uplifting its musical mission. However, things took a dramatic turn just before the city’s budget approval when a former board member and his wife decided to throw a legal wrench into the works.

What’s Going On?

It all started when David Wood, a previous board member, and his wife Colette Holt filed a lawsuit claiming the Philharmonic owes them $180,000 due to defaulted loans. Wood, who played a pivotal role in reviving the philharmonic by purchasing the San Antonio Symphony’s assets during bankruptcy, is now demanding immediate repayment of their loan—a sum that includes interest and attorney’s fees.

During an interview with local media, Roberto Treviño, the Executive Director of the Philharmonic, pushed back against the allegations, stating that they are “completely false” and suggesting that the organization’s attorney will handle the matter accordingly.

Background of the Lawsuit

The lawsuit, filed on Tuesday in Bexar County District Court, brings to light several disputes regarding the management and financial structure of the organization. In emails sent to both Bexar County Commissioners and San Antonio City Council members ahead of crucial budget votes, Wood urged these leaders to hold off on releasing any taxpayer dollars to the Philharmonic until it is “legally structured” and fully audited.

According to Wood, after he lent $45,000 to the philharmonic for the purchase of an orchestra shell—a piece designed to enhance the sound experience—communication with Treviño broke down. “I’ve seen no evidence my money was used for that purpose,” Wood lamented, adding that he felt completely left in the dark.

Details of the Dispute

The lawsuit encompasses a $150,000 forgivable loan from September 2022, secured against the orchestra’s instruments and music library. Wood claims that the Philharmonic has not been operating as a music organization, has halted live concerts, and that the collateral has not been properly insured. With a remaining principal of $135,000 on the loan, Wood insists they’re entitled to 18% interest, which is still accumulating.

In an attempt to mitigate tensions, Holt expressed hope for a “quick and amicable” resolution that would preserve the musicians’ assets for the community. Despite this, she noted ongoing confusion about the Philharmonic’s board and its current governance.

Reassurance from Treviño

Despite the spiraling situation, Treviño maintains that the Philharmonic remains operational and recently hosted a concert. He also asserted that Wood’s complaints stem from being voted off the board. “We’re here in business… We’re planning for a concert,” Treviño assured, also stating that discussions about financial agreements took place publicly during board meetings.

Funding and Support

In the backdrop of the legal drama, the Philharmonic managed to secure substantial funding, including $300,000 from Bexar County’s budget for the upcoming fiscal year and a potential $111,055 from the City of San Antonio. While funding advocates, including six city council members, rallied around the Philharmonic during budget discussions, uncertainties linger due to the pending lawsuit.

City Manager Erik Walsh made it clear that although the money has been allocated, it won’t be automatically provided. The organization must follow procedures to receive the funds. The city’s budget response has yet to be adjusted owing to the legal disputes as stated by spokespeople, hinting that the organization’s challenges are not impacting its financial commitments for the time being.

Looking Ahead

As the dust settles, both the Philharmonic and the concerned parties await the court’s response and hope for a resolution that will not hinder the organization’s musical aspirations. The community seems eager to see their orchestra flourish, and the situation certainly keeps everyone on their toes. For now, music lovers in San Antonio may continue to enjoy live performances while the Philharmonic works through these hurdles.