Remember all the hoopla and back-slapping when Santa Fe was recognized as the second or third largest art market in the United States? Given the economy, such self-congratulatory gestures now seem pointless. Just getting sales back to a reasonable level would be cause for celebration.

When The New Mexican contacted an assortment of Santa Fe arts professionals for their views about the economic downturn and how it has affected their livelihoods, a few gallery owners cited steady or moderately increased sales compared to a year ago. But most have faced a numbers crunch resulting in layoffs, a reduction in business hours, relocation and even closures.

Christy Walker, managing director of the Santa Fe Gallery Association — an organization representing galleries, dealers and museum professionals — reports that out of 103 members, "none of our (gallery) members has closed since our new membership started in January of 2008." While that is an admittedly short period of time, the mood of her membership is "optimistic but realistic," she said. And based on annual art sale figures across the country, Walker believes Santa Fe is still the third largest art market in the United States after New York and Los Angeles. "I think this is rather impressive when you consider the size of the other two cities," she said.

Contrary to Walker's assessment, Trish and Chip Byrd, publishers and owners of The Essential Guide: Santa Fe & Taos said, "Between Madrid, Santa Fe and Taos, about 12 and a few nonart-related businesses have closed and another small portion are squeaking by waiting for LOCs (lines of credit) to come through or until the summer, when tourism numbers will hopefully increase."

The Byrds do business with more than 175 galleries in Santa Fe. The couple moved to New Mexico from Washington, D.C., 2 1/2 years ago. Trish was a fiscal adviser to corporations, municipalities and nonprofits in the nation's capital.

"A study I did before moving here showed that the average small business in New Mexico was in trouble after 2.3 years. This is when owners who use all their life savings and personal credit to finance their businesses, and are not advised how to use the many programs out there, face closure (and) the ruin of their personal credit. Basically, it's easier to open businesses in New Mexico, but not easy to stay in business," she said.

In business for more than 23 years and representing approximately 40 artists from the United States and Europe, Downey Gallery is one of the larger venues at the west entrance to Canyon Road with a second venue on west San Francisco Street. The gallery features representational art, both painting and sculpture, from master artists in Russia, Spain and Italy. According to owner Dennis Downey, sales are down by as much as 90 percent. Downey disclosed that figure in a public forum — Coffee with Mayor Coss, held in mid-February.

Initially in Albuquerque before setting up shop in Santa Fe, Andrew Smith of Andrew Smith Gallery, seller of historical and contemporary photography, has seen a 40 percent drop in sales. Smith is known for an inventory of work by notable photographers such as Eadweard Muybridge, Ansel Adams, Edward Weston, Paul Strand and Edward Curtis, as well as contemporary work by Paul Caponigro, Lee Friedlander and Annie Leibowitz.

"Our sales went down last year, but are holding steady thus far this year," Smith said. "We have had some big collectors who have held back; but on the other hand, our business in the last six months has been stronger than it was from December 2007 through June of 2008."

Still, Smith laid off three workers a few months ago, two of whom have found work elsewhere, and now has a staff of 10 full- and part-time employees.

He remains optimistic despite the layoffs.

"I think the art market will recover; this is really no different from other downturn cycles. Those of us who have been in the business this long have experienced economic moments that are not precisely like this, but similar. The most vivid time for me was during the Jimmy Carter years when interest rates were 25 percent; and then there was another downturn in the late 1980s that had to do with the junk bonds.

"Basically, right now there is a shaking out of the art market," Smith added. "The most interesting thing we've found with this particular down cycle is that we've seen less good work come into the market in secondary sales than in previous cycles. Private collectors are holding."

For Smith, local sales amount to just 2 percent of his gross. "Our strongest market is people coming to Santa Fe looking for art," he said. "They see Santa Fe as a place that has great art and photography. They also see Santa Fe as a place where they can celebrate great American art, including Native American art and Hispanic art; it's a town where people are knowledgeable about art. And they also come to town for other high-cultural events: the Opera, the museums, and so on."

Another ray of optimism came from Chandra Nelson, co-owner with her husband, Robert, of Manitou Galleries, which deals in Western and Southwestern contemporary art, covering a broad spectrum of media and styles. "I tend to be idealistic, so I view (the current situation) as a bump in the road," she said. "Since I've been in the art and collectibles business for nearly 40 years, I've been through this three times in the past. These times aren't entirely comparable to previous bumps, but reflective of similar downturns in the market. The term 'downturn' is relative to the various galleries, as some are certainly feeling it more than others."

In 1975, the Nelsons opened a gallery in Cheyenne, Wyo., followed by their Santa Fe gallery in 2002. They employ four full-time and three part-time staff at their Palace Avenue location. Thus far, they have not considered layoffs nor cut back hours, but have changed selling tactics.

"More emphasis is being placed on e-marketing as opposed to hard-copy advertising. E-notices and phone calls have increased as opposed to hard-copy mailings for a more personal approach," Nelson said. She also attributes the gallery's steady sales figures to "a skilled and dedicated staff performing more duties and services" to their clients. Nelson cites 20 percent of annual sales as locally based, but sees her strongest market coming from states such as Texas, Colorado and California.

Klaudia Marr, in the art business for 14 years, including eight years as owner and director of Klaudia Marr Gallery on Canyon Road, has responded to the economic situation by closing her doors two days a week. "For the first time ever, we are now closed Sunday and Monday, which we started in October (of last year); that also cut down the workforce," she said. Consequently, her three part-time staff members have seen their hours reduced. Marr deals in contemporary realism with a surrealist twist, as well as art based in narrative and caters to mid-to- high-end buyers.

For her, the year 2008 produced "the best as well as the worst months in the history of my gallery business; sales are erratic," Marr said. "We are extremely grateful for making it through 2008 and are keeping a wary eye on the next few months. To weather the storm, (we need to) stay focused and frugal; desperation attempts do not work with clients. It's not much different than after 9/11, and I learned many lessons then. I will always look at the worst-case scenario and I am at peace with that. If I would lose it all, I'd still be OK; I'd still have a life, whatever form that might take. Everything in between can be maneuvered."

Artist and gallery owner Ke'vin Bowers has permanently closed the doors of Ke'vin's Place in El Centro Mall, which he managed with his wife, Carie. "We are from Idaho and moved to Santa Fe because of the art market," Bowers said. He represented 15 artists including himself, all working primarily in traditional 2-D media given to Southwestern subject matter. After only six months in business, Bowers shut down at the end of February.

"You simply cannot make rent or anything with only a few customers coming in and just looking," he said. "Our rent was reduced 40 percent at the beginning of January, but with the lack of buying customers it's still not enough."

When contacted before his gallery closing, Bowers was assessing his options: "Our next move is to hunker down at the studio and get bills paid, then do the show season with the Santa Fe Society of Artists, in which I have always done well." Bowers also plans to submit teaching proposals to various continuing-education programs, as well as conduct art classes at his studio.

Custom framed

Making doors and custom furniture for residential and business customers for more than 30 years, woodworker Ruben Gonzales — owner of La Compania Antigua Door & Furniture Co. at 2755 Calle Serena — told The New Mexican that "woodworking is my whole life, but I have not had one order since Christmas." Examples of Gonzales' high-end furniture are on display at the Santa Fe Arts Commission Gallery at the Santa Fe Convention Center on Marcy Street; but Gonzales says nothing in the exhibit has sold.

"It's really a mystery to me, the economy and all the money problems. But the whole world is involved, and where it's going is hard to say," he said. "We could all bounce back or end up in the poorhouse."

To better publicize his craft, Gonzales has recently been active with New Mexico Creates, a state-funded initiative through the Museum of New Mexico Foundation, begun in 2003, that promotes locally produced work by artists and artisans. Items are placed in various museum stores that relate to that venue's collection and participants may feature their work on the program's Web site.

Wood and metal workers of another sort have observed the local art market for 36 years: Ken Kirk and Frank Peacock, co-owners of Frontier Frames at the Allegro Center on St. Michael's Drive. "My father started the business in 1973 and I bought him out in 1984," Kirk said, president of the company. According to Kirk, his business services 25 percent to 30 percent of the galleries in Santa Fe and has seen minimal change due to the economy. "We're down 7 percent from a year ago; but then 2007 was a record year, so it's hard to beat a record year," he said.

In respect to what he's hearing from clients, Kirk said, "I think in general, the larger, more established galleries are weathering the storm a lot better, which stands to reason. They have good clientele, full e-mail lists, are working the phones and selling art to past customers versus the new start-up galleries. Those are the ones we see really hurting, the folks who have been in business two years or less and don't have that track record and clients to fall back on.

"I like to think that Santa Fe, although not recession proof, is a little more resistant to the current problems," Kirk said. "I imagine it's tough to be on Canyon Road or downtown and open the doors in the morning and hope people come in. I understand that traffic is definitely down."

Frontier Frames has a workforce of 10 people and layoffs are not expected. "None at all, and don't anticipate it," Kirk said. "The most recently hired staff member was three or four years ago, while one has worked for us for 25 years," he said.

Way out West

Layoffs, and then some, have been the order of the day in numerous art venues, including at SITE Santa Fe in the newly renovated Railyard District. "We've made substantial cuts going into this year," said Anne Wrinkle, director of external affairs. "We've changed our hours, cut back some staff, cut back on salaries and cut exhibition and operating expenses in a very aggressive way." Wrinkle's budget for publicity purposes was slashed 50 percent resulting in, among other things, SITE's newsletter being redesigned and produced on newsprint.

"It has affected us a lot and it has been incredibly painful," said SITE director Laura Steward. Half-time positions in education and facilities have been lost, an executive secretarial position has been frozen, a curatorial position remains unfilled, and housekeeping services have been reduced to once a week, down from three days. Also, volunteers will man the front desk rather than a part-time staff person.

In consultation with SITE's board members, Steward has cut wages and retirement-fund contributions. "The staff has taken a hard hit. We've stopped matching our 403B retirement plan, which was at 3 percent, and there was an across-the-board salary cut of 10 percent for everyone," she said.

Steward believes the recent cuts will benefit SITE in the long term. "We've made more aggressive cuts now and really pulled back to keep us going for the next several years," she said. "The board and staff sat down and thought about our core mission. That includes exhibitions, the education program, and our service in the schools. We serve 1,500 kids every year by sending educators into the schools and each student gets ten visits a year by one of our educators. So those are the three things that have been totally protected. Everything else is gone," said Steward.

On a smaller scale but no less significant, Michelle Ouellette, owner and director of Box Gallery in the Railyard District, has been in business for nine years, including four years at the Railyard. Ouellette has had to endure not only a sour economy, but also recent changes to the area. She has also laid off her only part-time staff member.

"I could not have anticipated the challenge of surviving the Railyard construction these last two years," Ouelette said. "It was particularly difficult to weather the road and sidewalk closings, as well as the presence of massive earth-moving and paving machinery during the Railyard renovation and the construction of the Farmers Market building. We were effectively cut off from foot traffic — both visually and physically — for days and sometimes weeks on end.

"However, I do not regret the move from Baca Street. Even under present circumstances, this is a great space and a far better location for the gallery," Ouellette said. "At this point, I can only express excitement and hopefulness about the Railyard's future. Because Box Gallery collectors are largely out-of-state and 30- to 50-year-olds, I hope Santa Fe can attract more and more of those individuals, couples and families. But that may require the city to project a more contemporary image, which I think it can do without forsaking any of its firmly established historical charm."

According to Andrew Smith, "The downside to the Railyard District will depend on the flightiness of the contemporary-art market. On the other hand, you have a group of dealers there who really understand their market and they have some terrific artists. In general, I think it's a great thing for Santa Fe."

Another Railyard gallery owner, who asked not to be identified, was less hopeful for the district's future: "Things are very, very dire. I have laid off employees, I've seen a terrible downturn in every aspect in what we do here, and we are struggling. Unfortunately, I have nothing positive to say. It's just too personal right now; it's just too raw."

Contact Douglas Fairfield at 986-3048 or dfairfield@sfnewmexican.com.