City poised to take on repair costs for Citadel Theatre

The City of Edmonton could take on hefty costs to maintain and renew the Citadel Theatre if council approves a new 10-year lease for $1 a year later this month.

The theatre has been leasing land from the city since 1974 and the agreement is set to expire in September.

The non-profit can't afford to continue repairs, maintenance, and significant building upgrades by itself, according to a staff report. But covering this will be a substantial investment for the city.

Initially, the building was meant to be transferred to the municipality when the lease expires. This is what will happen if nothing changes, leaving the city on the hook for not only caring for the building but the arts programming as well.

A staff report recommends the city take on more of the building's costs while the Citadel focuses on the arts.

“It is in the (City of Edmonton's) best interest to take on the facility's regular maintenance and capital renewal. The Citadel will remain responsible for the repairs and maintenance of the commercial use spaces and the theatre and other tenant improvements,” a staff report states.

“In turn, the Citadel's focus would be on promoting and creating a vibrant Downtown arts scene while also redirecting its resources to programming and away from facility management.”

Council is expected to vote on whether to proceed with the lease on May 14.

Edmonton will need to pay about $1.36 million annually for repairs and maintenance, plus up to $375,000 for maintaining capital projects.

As well, capital projects are expected to cost about $56.2 million over 10 years, or $131 million over 25 years. The Citadel will introduce a new $2 ticket surcharge to help fund this work, raising about $100,000 per year.

If approved, city staff would look into the full costs and return with estimates when council debates the 2025 budget in the fall.