AN AFFORDABLE SPACE
Documents lay out business plan for proposed Sydney arts centre.
A business plan for the proposed New Dawn Centre for Arts, Culture and Innovation projects it being three-quarters full in its first year of operation.
The provincial Department of Communities, Culture and Heritage on Thursday publicly released a package of documents under a Freedom of Information and Protection of Privacy application seeking all documentation related to the province’s decision to spend $3.2 million to turn the former Holy Angels convent into an arts and culture centre, between October 2016 and Sept. 25, 2017. It was specifically asked to include information related to the date when money was transferred to New Dawn, the approval process and any stipulations for how the money was to be spent.
Some of the information was removed under sections of the act related to advice by or for a public body or minister; where the information released would have a detrimental financial impact on the province; personal privacy and confidential business information.
The 40,000-square-foot $12-million centre is intended to provide affordable space for artists, social enterprises and not-for-profit organizations in the former Holy Angels convent.
The FOIPOP package includes two versions of the business plan submitted in support of the provincial funding application — one dated October 2016, the second dated February 2017. Financial statements submitted as part of the application have been redacted.
“The business plan assumes that following the renovations of the convent all current tenants in the high school would move to their permanent space in the convent, joined by others who have not yet begun/set-up operations in the high school,” the February 2017document
states.
It also states support for a centre has been garnered through measures including four years of operations experience, a feasibility and future use study.
“The ability to use all rentable space in the convent postrenovations and the ability to bring all tenants together in a single building post-renovation is expected to result in the elimination of an annual operations deficit.”
The plan projects tenancy rates of 75 per cent in its first year of operation, to 90 per cent in year three. It notes that New Dawn has committed to a $50,000 annual subsidy for artist spaces, which will be generated from centre revenues. In the first year, New Dawn will assume responsibility for the deficit.
The plan notes that they had started discussions with CBRM planning about the property’s tax status. It noted that the Sisters
of Notre Dame had paid a residential tax rate for the convent prior to vacating it.
The business plan also includes a breakdown of the project’s anticipated cost.
The $12 million budget included about $900,000 for architects and engineers; $350,000 for consultants; $800,000 for excavation and site preparation; almost $9 million for material and labour; and a $600,000 contingency.
The business plan states that if New Dawn wasn’t able to solidify funding partners it would look to scale back the project to reflect available funding, although noting there is a limit “to which the project can be scaled back and still successfully accomplished.” It could also look to complete the project in stages, enhance fundraising or temporarily pause it until it would be done in a way to ensure it is long-term financially sustainable.
New Dawn bought the Holy
Angels property in 2013.
In a March 16, 2017 letter to New Dawn board chair Steve Lilley from Marcel McKeough, an executive director with the province, it was noted that the organization had recently received notification that its funding application has been approved. Among the stipulations associated with the funding were that the department be advised of any major changes to the project, budget or timeline and that it be notified of any changes to its start and end dates. A report “describing the activity undertaken and results achieved” was also to be completed and submitted to the department within 60 days of the project’s completion.
If the project was cancelled or if the full provincial contribution was not required, funds were to be returned.
Minister Tony Ince formally signed off on the project on March 23.
Federal funding of $5 million
was announced in October.
In December CBRM council denied a request for $1.5 million to help finance the centre but did vote to allow the project some tentative tax concessions and left the door open for a possible future municipal contribution to the project.
During the debate, councillors supported the project in principle, but had dissenting views on what role the CBRM should play in it.
The issue was further complicated when council learned that the federal funding was not, as previously thought, dependent on a municipal contribution. However, New Dawn communications director Erika Shea indicated that $4.5 million of the $5 million in federal funding must be spent by the end of March.
Council voted to move the issue to its budget deliberations.