San Francisco Art Institute is Saved With New Ownership

Last year, The San Francisco Art Institute made headlines as it declared bankruptcy, revealing debts exceeding $10 million while only 41 students were actively enrolled. The dire situation prompted the eventual demise of the beloved art education institution. After its closure, a beacon of hope has emerged – the school has been purchased and will reopen as a nonprofit art institute.

Photo of San Francisco Art Institute sign. Credit: Kenny P

How’d we get here?

SFAI has been around since 1871, making it one of the oldest art schools in the country. So, when the debt and issues started stacking up we started to see the writing on the wall – another thing we know is such a huge legacy in SF could be gone forever. BAS writer Abe had talked about the road to closure way back in 2022. KQED highlighted how SFAI found itself in a financial pitfall that had been growing since 2021 to a staggering $20-million in debt. However, despite talks, concrete plans to steer SFAI back to stability failed to materialize.

And the school did eventually close. In September of 2023, the first glimmer of hope came forward again when reports surfaced of an art group considering the acquisition of the school. Notably, this group included Laurene Powell Jobs, widow of Steve Jobs. Their potential purchase held the promise of safeguarding the school from the necessity of selling off Diego Rivera’s mural, a drastic measure once considered to settle the mounting debt.

CEO David Stull of The Art Institute had spoken to the Chronicle about the potential purchase, “It is in its nascent stage but tremendously exciting. We are working to see that the Art Institute is preserved for aspiring artists to advance their work.”

So, who purchased SF Art Institute?

This week the Chronicle reported that the group who was curious about purchasing The San Francisco Art Institute did, in-fact, follow through. The school was purchased by newly formed BMAI LLC, with an endowment of roughly $30 Million provided by Laurene  Powell Jobs through her Palo Alto venture organization ‘Emerson Collective‘. 

Importantly, the new arts nonprofit’s advisory committee is made up of senior heavy hitters in the SF art arena, Brenda Way, the founder and artistic director of San Francisco’s ODC; David Stull, president of the San Francisco Conservatory of Music; Lynn Feintech, president of the Los Angeles-based Liberty Building Co. and a longtime ODC board member; Stanlee Gatti, a famed event designer and former president of the San Francisco Arts Commission; and Stephen Beal, former president of the California College of the Arts.

The offer is for the Russian Hill Campus only, not the now Fort Mason Center for Arts and Culture campus (formerly owned by SFAI).

This fresco painted by Diego Rivera in 1931 was the gift of William Lewis Gerstle. The fresco is 18’x32′
San Francisco Art Institute (gallery north wall). 

Artist Diego Rivera, sits, back to the viewer, in the middle of the fresco, on the scaffolding supervising the work.
Trompe l’oeil (trick of the eye) is the term used for the technique of using realistic imagery to create an optical illusion of depth.

The new institution is keeping the Diego Rivera mural “The Making of a Fresco Showing the Building of a City,” which was painted on-site in 1931 and is an invaluable city landmark.

What lies ahead for The San Francisco Art Institute?

With an estimated two to four years of construction and essential maintenance ahead, there’s significant work to be done before the school can reopen its doors. Nevertheless, it’s exciting to know that this space is poised for a promising future.

Thankfully, this historic building will remain a campus for arts education with a housing component for emerging artists, and not some luxury condo monstrosity.