The Honolulu Academy of Arts signed an agreement yesterday with The Contemporary Museum to absorb its art collections and assets.

"A truly memorable happening," said Vi Loo, chairwoman of The Contemporary Museum, which focuses on 20th- and 21st-century art. "We sacrifice independence to come together to serve the community."

The Contemporary Museum, housed in the sprawling former home of Anna Rice Cooke in Makiki Heights, has always had trouble attracting enough visitors, and the recent financial recession hit hard. Loo gave credit to former Honolulu Advertiser Publisher Thurston Twigg-Smith, a founding patron, for helping keep the museum alive. "But, as Twigg always says, i mua," Loo said.

The signing over of assets was officiated by Loo, academy Acting Director Lynne Johnson and new Director Stephan Jost, in his first day on the job. The merger is something of a family affair for Johnson, a direct descendant of Cooke, who also created the academy. "It’s a done deal," she said.

The Makiki Heights "Spalding House" was originally bequested to the academy from Alice Spalding, Cooke’s daughter, in 1968, and the academy operated it as an annex for a decade before selling it. Now it has come back.

"The merger will be judged by how well we serve the public," said Jost, who added that such deals "don’t happen overnight or easily."

The deal is structured so the entire collection and assets of The Contemporary Museum, including the endowment, are gifted to the academy. Memberships in either museum will be honored at the other museum as of today.

The contemporary collection will be transferred when the agreement becomes binding on July 1, and Spalding House will be used for "events" for now.

Staffing is in limbo. "We don’t know yet if there will be any staff cutbacks — or staff growth," Jost said.