After several months of negotiations, South Shore Arts now is managing the Northwest Indiana Symphony Orchestra.

The boards of the two cultural organizations reached the management agreement, which is retroactive to July 1.

Under the agreement, South Shore Arts will take control of the symphony's daily operations and finances. That includes planning, budgeting, fundraising, marketing, administration, contract negotiations and accounting. The five-member symphony board will monitor the management agreement.

Chris Morrow, president of the symphony orchestra, approached South Shore Arts in March with a proposal to combine the region's two major art organizations under a single management. His proposal was offered with the permission of the symphony board.

The South Shore Arts board offered to take over management of the financially troubled symphony in April. However, tensions grew when the symphony board voted to draft demands in response to the South Shore Arts' conditions. In May, those demands were dropped.

"Our idea was to create an environment where the arts and culture can thrive under a consolidated structure," said Morrow, adding that the effort will "combine resources and synergies, both for the visual and performing arts." The symphony's annual budget of $1.1 million comes primarily through donations from corporations, area foundations and individuals. Only 38 percent of that funding comes from ticket sales.

The Morrow family, longtime patrons of the symphony, offered a $600,000 challenge grant to help shore up finances as South Shore Arts takes on its management role. Matching funds are being sought and will be managed by the Legacy Foundation, said John M. Cain, South Shore Arts executive director.

"We have collaborated for many years with the symphony on educational outreach programs for children," Cain said. "We have a good working history together, so our board was very excited by the prospect of combining the talents of both organizations, believing it would be pleasing to both donors and participants."

For several weeks, the South Shore Arts staff has been working with symphony music director and conductor Kirk Muspratt to finalize the 2008-09 concert season. That season kicks off with "Pavarotti Forever" on Sept. 26 at the Horseshoe Casino in Hammond. The Pops Series returns the symphony to the Star Plaza Theatre in Merrillville in October. Other concerts will be played in Chesterton, Crown Point and Munster.

"We are hoping that this exciting merger of two wonderful arts organizations in our region will prove to be a winning template for many symphonies and arts organizations in North America," Muspratt said.