Downtown arts venue faces threat of eviction amid cash-flow problems

An Edmonton arts organization is facing possible eviction from a city-owned property after repeatedly failing to make lease payments.

The future of theCO*LAB YEGbuilding remains uncertain as city administration seeks to recover outstanding payments from the operator of the community arts venue in the Boyle Street neighbourhood.

The Quarters Arts Societywas issued a notice of default by the city last month. The group, which for three years has hostedexhibitions, live shows and community workshopsinside the city-owned buildingat 9641 102A Ave., has struggled to pay its bills.

Bartosz Jarocki, the city's branch manager of real estate, said administration has been working with CO*LAB for years to help the group meet the financial terms of its lease.

"The city has issued a notice of default, which could progress to an eviction notice as a last resort,"Jarocki said in a statement Wednesday.

"We've reached this point after a couple of years of payment issues and ongoing efforts to address those issues.

"We're hopeful that CO*LAB can work with us to meet their financial obligations in their lease and will continue our efforts towarda resolution."

Jarocki declined to detail how much, in total,is owed to the city or how much the organization is expected to pay each month under a debt repayment plan offered to the group this spring.

Society president Stewart Burdett said that to stall eviction, the group needs to immediately pay the city nearly $19,000 by Aug. 18.

The group tells CBC it owes a total of nearly $22,000 to the city. It was expected to pay $2500 each month under a new debt repayment scheme which began in April.

The society has launched an online fundraiser, calling on Edmontonians to donate the money needed to pay down its debt with the city.

Downtown arts venue faces threat of eviction amid cash-flow problems

1 year ago

Duration 1:43

An Edmonton arts organization is facing possible eviction from its city-owned property after repeatedly failing to make lease payments . CO*LAB says it's been struggling financially since the non-profit opened in 2020. Now they are asking the community for help in an effort to pay off their debts.

On Tuesday, the society launched a petition calling on city administration to lift the eviction order while a repayment plan is worked out.

'Pressure' to pay

"We need to have that threat removed from the situation," Burdett said. "Negotiating under that pressure is not helpful to what we're trying to do here.

"We want to pay our bills. We're not trying to eschew our responsibilities ... We want to get into a position where we're three months ahead of the game, as opposed to scrambling to pay."

The society moved into the building in July 2020. Burdett said the financial challenges began soon after.

He said the facility's opening was delayed by construction, and it couldn'toperate fully under COVID health restrictions. Maintenance fees have since ballooned, leaving the group unable to catch up, he said.

Struggles with staffing, funding for debt relief and cash flow continue, Burdett said.

"Maintenance of the building itself is about $3,500 a month. It can get up to about $10,000 in the middle of winter when we're when we have our utilities added to that as well," he said.

In April, the city offered CO*LAB a repayment plan to help it pay the debt. But since then, at least three more payments have been missed, Burdett acknowledged.

He said an administrative error was to blame for one missed payment. The other payments were missed due to a shortage of funds. With limited money to paystaff, few events are being held to bring new money in, he said.

The society has hired an auditor and will hand its books over to the city once they are properly formatted, he said.

"We have been struggling from the get-go," he said."We had been working with the city to figure out a fee schedule for us. But as the pandemic lasted, we had a harder and harder time."

'The last step'

Coun. Anne Stevenson said according to a lease agreement, the society is expected to pay the city about $1,300 each month to cover operating costs. In all, payments for at least 24 monthshave been missed, she said.

"City staff are working very closely with CO*LAB right now in order to figure out a way to move forward," Stevenson said in an interview. "This wasn't the first step. This was the last step in a very lengthy process."

The city, however, remains invested in the venue, Stevenson said.

"It's a wonderful community hub and I absolutely want to see it continue," she said. "There is absolute agreement in that there is huge value in seeing them stay."

Maia Mudri, an Edmonton artist who often attends CO*LAB events, said her stomach sank when she heard of the group's financial issues.

She said the venue contributes to neighbourhood revitalization and provides an accessible space for emerging artists to showcase their work.

"It would just be a incredibly large tragedy for the community in Edmonton to lose this space."