New York's Chelsea art district recovers from Sandy's impact

Even two weeks later, many of the 400 or so galleries crammed into the small neighborhood are struggling to get back on their feet.

Like all of lower Manhattan, Chelsea was blasted by hurricane-strength winds and stripped of electricity during Sandy, but most damage came from flooding.

A neighborhood famous for its minimalist lofts and chic residents now resembles a construction site. Windows that are cracked or lined with safety tape remain a common sight, and shards of glass crunch underfoot.

At the Jim Kempner gallery, large-scale photographs have been laid out to dry. At the influential Larry Gagosian gallery, stylish young women employees greet visitors in protective face masks.

Near 11th Avenue, the high-water mark left by the grimy floods rises to shoulder height.

"I was expecting 20 centimeters of flooding, not a river in the middle of the street," gallery owner Leo Koening, 35, said, adding he was lucky because, while his space was flooded, he'd managed to get all his artworks out in time.

At David Zwirner, "our space was flooded at chest heights, including our offices and storage space," spokeswoman Julia Joern said. Some of the damaged works can be restored, but not the "watercolors, which were too fragile."

Other galleries fared even worse, especially those that stored art in their cellars.

Several, including Sonnabend and Pavel Zoubok, are closed until further notice.

Joern estimated costs to the art scene in the "millions and millions" of dollars.

Axa Art insurers alone say they already face $40 million in claims out of about $1 billion insured in Chelsea. Other insurers, such as Dewitt Stern Fine Art, also have losses, and some galleries are not even insured.

Making matters worse, the natural disaster came right ahead of the big autumn contemporary art auctions at Christie's and Sotheby's.

"A lot of collectors are in town. It's never a good thing to be closed on auction week," Joern said.

LiveAuctioneers LLC (www.LiveAuctioneers.com) is a Chelsea-based company that provides Internet live-bidding services to more than 1,400 antiques and fine art auction houses worldwide. Its IT specialists made the necessary preparations prior to the storm to ensure that auctions could go forward in spite of the disruptions they felt were inevitable.

On Oct. 29, Sandy struck New York City. LiveAuctioneers' 12th Avenue headquarters, which directly face the Hudson River, were pummeled by a powerful storm surge. The offices were rendered uninhabitable, and it would take another 11 days for floodwaters to be pumped out and utilities restored.

"Our staff was well prepared, and as a result, our business continued to function with almost all employees working either from home or from other locations via their laptops," said LiveAuctioneers CEO Julian R. Ellison. "It wasn't exactly business 'as usual,' but the experience proved how adaptable we are. Our team got the job done under conditions that were extremely challenging, both personally and professionally."

The industry group Art Dealers Association of America (ADAA) said it would make emergency grants and loans available to galleries in the flood zone, including Wallspace, Bortolami Gallery and Derek Eller.

"The devastation of Hurricane Sandy is unprecedented," ADAA spokeswoman Linda Blumberg said.

Gallery owner Tanya Bonakdar, who saved her artworks but will have to repair the flooded ground floor, said she hopes the insurers will pay up.

"It is a first time I put out a claim in 20 years," she said. "All Chelsea is affected. Galleries in Chicago or Los Angeles are watching to see if insurers are going to stand by us or not. It will have an impact on the future of this market."

Some galleries, like Mathew Marks or David Zwirner, have reopened, the latter holding its first post-Sandy exhibit focusing on man's role in natural disasters.

"We wanted a positive momentum," Joern said.

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Auction Central News International contributed to this report.