Nation’s second-oldest orchestra, St. Louis Symphony Orchestra, investing $140 million in its next act.
“We shape our buildings,” Winston Churchill once said. “Thereafter, they shape us.”
Leaders of the Grammy Award-winning St. Louis Symphony Orchestra (SLSO) would agree. Their belief in the life-enriching power of music is driving the $140 million renovation and expansion program currently underway at Powell Hall, the historic landmark that the SLSO has called home in Grand Center since 1968.
When completed in 2025 — the original building’s 100th anniversary — the construction will have more than doubled the building’s footprint. It will also help shape the future of the orchestra, which aims to reach and serve people of all ages from every corner of the community, according to Marie-Hélène Bernard, SLSO’s President and CEO.
Reimagining a symphony’s role.
“People see St. Louis as a traditional city with a traditional symphony orchestra,” says Bernard. Only one other orchestra in the U.S. — the New York Philharmonic — has been performing longer.
“Yet, we take artistic risks where others may not,” she says. For example, SLSO is one of only a handful of major orchestras with two choruses. One, the Symphony Chorus, performs choral-orchestral music; and the other, the In Unison Chorus, partners with 35 St. Louis African-American churches to focus on a variety of musical styles, with a focus on the interpretation, performance, and preservation of Black American musical expression.
To reach new audiences, SLSO frequently goes out into the community, performing in public spaces like Forest Park, the Gateway Arch and the Jewish Community Center. The orchestra also continues to grow its presence in local schools, according to Bernard.
“Before, we tried to be in every school, pre-K to college,” she explains. “We have since learned that we can serve many more students if we work with teachers and use them as conduits. They know what students need and are willing partners with us.”
But as any music teacher will tell you, developing new skills — musical or otherwise — requires training and practice. And Powell Hall, originally designed as an opulent vaudeville and movie theatre, lacked the backstage space needed to properly serve educators, singers, young musicians and other visitors.
“The current construction program is designed to change that. In addition to upgrading the existing concert hall and lobby, SLSO will add an education and learning center that will serve as a rehearsal venue for its choruses and youth orchestra, as well as a ‘creative lab’ for education programs and distance learning, and a space for musical experimentations, lectures and events,” said Bernard.
Taking artistic and financial risks.
“A willingness to take artistic risks often involves taking on financial risks as well,” says Steven Rosenzweig, the orchestra’s CFO.
“A nonprofit like ours has unique needs,” he explains. “We must operate in the black and have financial reserves, while also reinvesting in ourselves and the community with new and innovative programming.” Add a $140 million construction program to the mix, and the financial challenges grow.
“Having access to capital can be a challenge,” says Rosenzweig. “That is why having a great banking relationship is so important.”
The SLSO’s relationship with Commerce Bank dates more than 25 years. Over that period, the bank and its affiliates have handled everything from merchant processing for ticket sales, to investing SLSO’s excess cash, to supporting its foreign currency needs when the orchestra tours internationally.
The relationship between the SLSO and Commerce also runs much deeper.
“We have always had Commerce representatives on our board and as our advisors, and they are exceptional,” says Bernard. “They have deep knowledge of our region and high credibility within the community. “
“When we seek their advice,” she says, “they don’t respond lightly. We know their guidance comes from deep reflection and thought. They are committed to our mission.”
“I have worked with dozens of banks over my career and have found no greater advocate than Commerce Bank,” adds Rosenzweig. “Any time we have something going on that might trigger a financial need, I don’t hesitate to call Commerce to bounce around ideas and seek guidance,” says Rosenzweig.
One of those phone calls took place in March 2020 when the pandemic forced SLSO to shut down operations overnight. “With no ticket sales and no revenue, we went from being a $32 million nonprofit to an $18 million nonprofit,” he recalls. “It was a tough time, and Commerce was there for us, keeping us afloat by helping us through the PPP (Paycheck Protection Program) application process.”
Philosophical alignment, mutual trust.
Rosenzweig had many more conversations with Commerce as the SLSO’s $140 million construction program took shape. The renovation and expansion are being funded primarily with money raised through a capital campaign, some of which will be paid by donors in installments over the next five to seven years. In the meantime, the SLSO selected a Commerce Bank affiliate to fill the financial gap with a $50 million private placement bond.
Despite SLSO’s decades-long relationship with Commerce, that decision was not automatic, Rosenzweig says. Proposals for the private placement were solicited from multiple banks. “We hired a financial advisor to make sure we got the best deal possible. It turned out that Commerce gave us the most competitive offer.”
“Commerce has a great reputation at all levels,” adds Bernard. “The executive leaders empower their team. When we talk to one of our bankers, we find great alignment between their values and philosophy and ours.”
“I think Commerce is a force as a regional bank. They truly understand non-profit organizations and speak the language of our community.”
— Marie-Hélène Bernard, President and CEO, St. Louis Symphony Orchestra
They show good judgment and creativity when guiding us on how to get from Point A to Point B.”
“It’s great when your financial partner joins you in supporting creative programs,” says Bernard. “Commerce cares about reinvesting in the community because it’s important for their business, too. Commerce works hard to build trust. At the end of the day, they show up for their community.”
