Simon Hornby | President, Crozier Fine Arts and... · 2019. 10. 30. · CROZIER OVERVIEW —...

transcript

Simon Hornby | President, Crozier Fine Arts

Jesse Reichenberger | Specialty Product Manager, Jewelers Mutual Ins. Group

Tim Moreland | Director of Compliance and Government Affairs, Kiva Confections

COMPANY PROFILE

• CROZIER

CROZIER OVERVIEW— Founded in 1976; acquired by Iron

Mountain in 2015

— Acquired and merged with Artex in 2018

— Largest full-service art storage and logistics company in the United States with a worldwide network of agents

— Projects managed in +53 countries

— Over 1.3 million square feet of specialized storage across 21 facilities in North America and Europe

— Team of 700+

LOCATIONSHEADQUARTERS

New York City / Chelsea

EAST COAST

Boston Connecticut DelawareHamptonsMiami / Fort LauderdaleNew York City / Long Island CityNew York City / WilliamsburgNewark / IrvineNewark / JohnsonNewark / Star Ledger PlazaWashington, DC

WEST COAST

Los Angeles / 305 North OakLos Angeles / Culver CityLos Angeles / InglewoodLos Angeles / Vernon

EUROPE

ZürichGenevaLondon

INDUSTRY PROFILE

WHO WE SERVE

MUSEUMS & INSTITUTIONSGALLERIESPRIVATE COLLECTORSARTISTSAUCTION HOUSESTRUSTS & ESTATESLIBRARIESARCHITECTSCORPORATE COLLECTIONSCOMMERCIAL ARCHIVESFASHION & INTERIOR DESIGNERS Image Courtesy of Tom Powel Imaging. Anthony Caro, Metropolitan

Museum of Art, New York, 2011. Mitchell-Innes & Nash.

SERVICES

SPECIALIZED STORAGECOLLECTIONS & PROJECT MANAGEMENTINSTALLATION & RIGGINGTRANSPORTATIONINTERNATIONAL SHIPPINGCRATINGVIEWING GALLERIESFABRICATIONENGINEERING & DESIGNEDUCATION & TRAINING

Image Courtesy of Tom Powel Imaging. Jeff Koons, David Zwirner Gallery, 2013.

STORAGE SOLUTIONSMuseum-standard HVAC systems for climate and temperature control / relative humidity

Secure, multi-client managed storage

Bespoke private rooms

Oversized property accommodation

Multiple loading docks

State-of-the-art, 24-hour security systems

Fire-resistant buildings, compliant with the highest National Fire Protection Association standards

Daily monitoring of controls by in-house engineering department

PACKING & CRATINGTailored, well-constructed packing solutions engineered to preserve an object’s unique characteristics

Museum-quality crates with built-in hardware to protect against the effects of shock and climate

Multi-use travel crates, slat crates and foam-core, plywood or cardboard boxes for soft-packing

SHIPPING

• DOMESTIC TRANSPORTATION

— Specialized vehicles operating across major US cities, local and national trucking network

— Art shuttle system, with transport in and around the Northeast, mid-Atlantic, Southeast and West Coast, as well as cross-country shuttles

— Oversized transport options as well as air-ride, climate-control, courier, GPS tracking and alarm systems

• INTERNATIONAL SHIPPING

— Global network allows for detailed oversight from origin to destination in an unbroken chain of custody, overseen by experienced account management team

— Security screening in TSA Certified Cargo Screening Facilities; Carnet, Fish & Wildlife and CITES documentation; courier services; and plane-side security

VIEWING GALLERIES● Purpose-built viewing galleries● Each equipped with advanced lighting

and specifications● Ideal for private exhibitions and

installations, specialized photography, conducting appraisals, conservation projects and condition reporting requirements

● Art handlers available on-hand to install artwork and create an impactful viewing experience, with the highest degrees of privacy and discretion observed

BLOCKCHAIN & ARTIFICIAL INTELLIGENCE

• Art ‘passport’ for new and authenticated art

• Chain of custody

• Condition reports

• Appraisal reports

• Conservation reports

• Collating and maintaining digital support for provenance

• Fractional ownership

• Tokenized ownership

• Insurance

• Cryptocurrencies

• Authentication

CASE STUDIES

I. JEFF KOONS, PLAY-DOH –CHRISTIE’S

A decades-long trusted partner to the Jeff Koons studio, Crozier worked to exclusively handle the installation of Koons’s monumental sculpture Play-Doh (1994-2012), one of the largest and most complex works from the artist’s Celebration series, in preparation for Christie’s contemporary art evening sale in spring 2018.

PROJECT OVERVIEW CHALLENGES SOLUTION

The quick pace with which the auction house operates provided for a particular challenge on this project, as did the access and structural limitations of the building. We had to operate on a very tight timeline and deal with obstruction of traffic outside Rockefeller Center in New York City.

Through careful and

meticulous planning,

Crozier engineered an

innovative solution to get

the work safely installed in

the viewing gallery. A team

of experienced art handlers

operated a specialist crane

to assist with the task.

II. NATIONAL AIR AND SPACE MUSEUM

The National Air and Space Museum in Washington, D.C. is undergoing a $650 million, seven-year renovation to revitalize the building’s exterior and infrastructure as well as 23 exhibition and presentation spaces. Every artifact in the museum needs to be catalogued, packed and moved offsite for storage. This project represents one of the largest museum moves in American history.

The art objects being moved here are not conventional whatsoever, though their value exceeds many traditional works of fine art. As a government-sponsored project, this move is heavily monitored and controlled, and there are a number of safety regulations that must be met. It requires a level of expertise and specialized knowledge that is hard to come by.

Crozier’s museum division, formerly Artex, has held a long, trusted relationship with the Smithsonian and other major museums in the DC area. The company proposed a multi-year bid to manage the packing, relocation and temporary storage of the museum’s irreplaceable artifacts, initiating work in October 2018. Crozier’s Special Projects team, one of the most advanced in the field, is dedicated to ensuring the success of the move.

III. JEAN-MICHEL BASQUIAT –THE BRANT FOUNDATION

Jean-Michel Basquiat was the inaugural exhibition of the Brant Foundation’s New York space, a century-old building in the historic East Village and the former studio of artist Walter de Maria. The high-profile exhibition included loans from a number of the world’s top collectors with a combined insured value of $1.5B. As the preferred shipping partner, Crozier was entrusted with transporting many and installing all of the works on view.

PROJECT OVERVIEW CHALLENGESSOLUTION

The value of the works made this installation particularly sensitive. The Brant Foundation is one of the most regarded private museums in the United States, and the opening of its NYC branch was highly publicized. It required a large number of handlers to be on-site for an extended period of time with dedicated account and project managers providing consistent oversight.

Like its other partners, Crozier has a long-standing relationship with the Brant Foundation, and our revered reputation as an industry leader aided in our ability to secure the bid. Throughout the duration of the installation, members of Crozier’s leadership team were on-site and provided constant feedback to ensure the job was completed to satisfaction.

PACKING BASQUIAT

https://vimeo.com/303549164

IV. FLAG OF REMEMBRANCE –9/11 MEMORIAL & MUSEUM

Installation Time-Lapse

IV. FLAG OF REMEMBRANCE –9/11 MEMORIAL & MUSEUM

The Flag of Remembrance, created by Mindy Kombert and Sherry Kronenfield in tribute to the victims of September 11, was acquired by the 9/11 Museum in 2006. In 2017, the museum entrusted Crozier to install the 20 x 27’ work, which involved transporting the flag from an off-site conservation studio and strategically hanging it inside the museum.

The exhibition was emotionally charged and contained sensitive content. Though it was painstaking put together, it was done so by “non-professionals.” There were a number of conservation issues that had to be addressed before the work could be installed. Furthermore, work on the flag had to be done during the night hours under various confines and restrictions in order to accommodate the larger needs to the museum and its public.

The work was first transported from upstate New York to the museum’s conservation facility in New Jersey, where contract conservators meticulously humidified and then flattened each crease they could access. Eight Crozier team members and several other museum staff installed the work once it arrived back to the museum. After the flag was fully unrolled, humidification and flattening was completed. Scaffolding was constructed to assist with the installation.

V. PAULA CROWN, JOKESTER 2.0 –MIAMI DESIGN DISTRICT

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V. PAULA CROWN, JOKESTER 2.0 –MIAMI DESIGN DISTRICT

V. PAULA CROWN, JOKESTER 2.0 –MIAMI ART WEEK

Crozier was charged with overseeing the fabrication and installation of two editions of a massive outdoor sculpture by Paula Crown. The work measures 89 x 103 x 116.5” and weighs 1,500 pounds. The project required that the works be painted, packed and transported to Miami, FL and Aspen, CO, respectively.

The scale of this work provided its biggest challenge. The doorway to the paint shop was only 94” jamb-to-jamb, and the piece was being painted with a high-gloss finish that could not be touched directly. Moreover, the work would need to be rotated 90 degrees in order to enter and leave the space.

Crozier designed an armature to accommodate the specific doorway with only 0.5” to spare. The construction of the armature provided a fabrication system that allowed for the artist to produce multiple works in the series. To date, Crown has created Jokester and Jokester 2.0. The later was on view as part of Miami Art Week in December 2018.

JM’s Shipping Solution

Jesse Reichenberger

Specialty Product ManagerJewelers Mutual Insurance Company

Jewelers Mutual Overview

• Founded in 1913 by jewelers for jewelers

• Largest insurer of jewelers in the U.S.

• Acquired TransGuardian in 2018

• Team of 300+

Who We Insure● Jewelers● Pawnbrokers● Individuals (personal jewelry)● Non-jewelers (their shipments)

What We Insure● Jewelers’ inventory/stock

○ On and off premises○ While traveling○ In transit

● Building and business personal property● Business income● Liability● Personal jewelry

What We Insure

• Small parcels valued up to $250,000

• Consisting primarily of:

- Jewelry

- Handbags

- Numismatics

- Collectibles

- Currency

- Firearms

Cannabis Transportation

About Kiva

• Founded In 2014 by Kristi Knoblich and Scott Palmer• Started out as cannabis cultivators and realized quickly they were

not that great at growing, quickly moved into edibles• Kiva is now the largest cannabis edible brand in the United States

and therefore the world • Six states: California, Nevada, Arizona, Hawaii, Illinois and

Massachusetts• Revenue: Roughly 100 million in Annual revenues

Camino

Kiva Bar

Regulatory Framework for Distribution in California• Distributor is responsible for collecting and remitting cannabis

excise taxes and cultivation taxes• Distributor is responsible for quarantine all cannabis and cannabis

products it purchases for state certified testing• Once products pass testing, distributor performs a quality assurance

review • After a successful quality assurance review cannabis products can

be sold to retailers

SB 94 Medical and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA)

• Merged Medical and Adult Use Program into one regulatory structure

• Set personal possession limits• Dictates rules governing cannabis distribution, testing, cultivation,

manufacturing and retail• http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=2

01720180SB94

THE ART OF ART LOGISTICS

45Planes, Trains & Automobiles, dir. John Hughes, 1987

ART LOGISTICS: WHAT IS IT?● An industry comprised of all of the commercial companies that

provide:○ specialist storage○ transport ○ installation and handling

● Relatively small market that protects extremely high value and sensitive property

● Fragmented industry with many family-owned businesses● Lack of scale and access to capital● Behind other industries with similar profiles have achieved in terms of

supply chain, chain of custody and compliance ● To achieve scale, reduce friction/cost industry needs consolidation

ART STORAGE, HANDLING & TRANSPORT

INDUSTRY PROFILE• No International Standards

• Lack of standards framework

• Global Risk Assessment Platform (GRASP)• AXA’s risk assessment program for evaluating warehouse and museum facilities

• International Convention of Exhibition and Fine Art Transporters (ICEFAT)• Global trade organization comprised of various art logistics companies

• ARTIM• Loose collaboration of international art logistics companies by invitation

• Insurance or Declared Value Liability (DVL)• Coverage for artworks while under the care of a logistics firm in the event of loss or damage

• Freeports • Storage facilities that provide a tax suspension environment similar to Bonded warehouses

• Tax• Different tax regimes encourage market distortions

Tate Britain Tate Modern

Leonardo da Vinci (attributed), Salvator

Mundi, ca. 1500, oil on canvas. Image courtesy of Christie’s Images Ltd.

SHIPPING DIAMONDS AND PEARLS

How Jewelry Is Shipped

• Most shipped via USPS, UPS or FedEx

- Higher values will utilize an armored service

• Faster is better

How Jewelry Is Shipped

• Layered

- Double packaged

• Disguised

- Contents and value not revealed

• Signature

• No dropboxes

Key Insurance Conditions

• Jewelers Block

- Coverage starts at carrier acceptance and ends upon delivery

- Excludes loss caused by or resulting from insufficient or defective packaging

- Limit generally applies on a per package, per addressee, per day basis

- Loss valued at dealer cost unless endorsed otherwise

Key Insurance Conditions

• Ocean Cargo

- Loss valued at invoice, packing slip, or memo/consignment amount

- Insurance does not apply to loss of market value

- Consequential Reduction in Value

- Expediting Expense

- Packaging Conditions

Logistics in the Cannabis Industry

Transportation

• On a daily basis 20 drivers distribute product statewide to cannabis retailers and pick up cannabis and cannabis products from cultivators and manufacturers

• At any given time drivers are carrying tens of thousands of dollars of cash and product in delivery vehicles

• Vehicles equipped with cameras, safes, industrial locks and Teletrac GPS systems

• Manifests are carried on all vehicles and downloaded into the statewide Track and Trace System (METRC)

Transportation Problems With Cash And Product

• Distribution Vehicles are constantly transporting large sums of cash from Dispensaries and Suppliers to KSS

• Two deposits centers statewide

• Taxes are paid in cash

• Vendors and suppliers paid with cash

• We have a banking relationship but we are limited in our monthly deposits

• Heists are happening in California, just going unreported

• Its Dangerous out there

Accidental Crossover Into Mexico

• Driver missed last exit in San Diego and ended up in Mexico

• Tried to cross back over but was seized by Mexican Government and held for two days in a Tijuana jail

• Product seized

• Truck seized

• Product lost and still trying to recover the van

Wild Rivers Transport Case

• Fed stopped and seized over $250,000 of cash from a legal cannabis distributor

• Distributors legal counsel was able recoup money his client

• Ruling based on the Rohrabacher-Farr Federal budget amendment which prevents Feds from using federal dollars to enforce medical cannabis laws in States with legalized medical use

https://mjbizdaily.com/federal-agents-return-250k-seized-from-licensed-california-marijuana-distributor/

BEST PRACTICES AND RISK MITIGATION

Solutions for the Cannabis Industry

• SAFE Banking ACT

• Armored car services entering the legalized cannabis market

• Credit services for the legal market (Visa, Mastercard)

• More stringent regulations for distribution and delivery vehicles

• Banks working with regulators

QUESTIONS?

5 October 2019

THANK YOU

5 October 2019

Simon Hornby | President, Crozier Fine Arts and... · 2019. 10. 30. · CROZIER OVERVIEW —...

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