Landlord rejects offer to lease Grand Theater in Calgary

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One of Calgary's oldest theaters could be vacated by the end of the year after a temporary rent reduction deal fell apart in recent weeks.

Calgary's Grand Theater Society said it was “shocked and dismayed” by the landlord's decision, whose offer to lower the rent was rejected in mid-January after negotiations appeared to be going smoothly.

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“I can't tell you how frustrating this is for us,” said Erin Lyster, the society's executive director.

The Grand, one of Calgary's oldest art buildings, is owned by Allied Properties Real Estate Investment Trust, which purchased it from the public in 2021.

Arts Commons was going to take over the Grand Theater Society until Allied Properties rejected the offer, Lyster said. The deal resulted in the society leaving Arts Commons to manage the lease at The Grand.

But Arts Commons can't afford The Grand's current rent, Lister said.

“Once the landlord is off the table, the whole solution dissolves,” Lister said. “If the landlord can't give us some kind of rent reduction, the numbers can't work for any arts organization.”

Lyster did not say how long the rent reduction would last. The community currently pays more than $500,000 a year for the building, he said.

“I still don't know why this proposal was rejected,” Laister said.

“We were at a point where we planned to announce to the community that this was happening.”

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Cecilia Williams, president and CEO of Allied Properties, said the company was not ready to comment publicly on the matter, but said she disagreed with much of the content in a news release sent out by the society on Wednesday.

In a statement, Arts Commons President and CEO Alex Sarian said Canada's arts communities face an uncertain future with “unpredictable partners.”

“Although our involvement is not clear, we have sought to use our experience and expertise in managing, operating and maximizing arts and gathering spaces on behalf of Calgarians to support the community leadership team in their efforts to preserve The Grand as a community art space. space. To say that we are satisfied with this result is an understatement,” Sarian wrote.

In a statement to Postmedia, Arts Commons said its ability to help with the situation depends on the Grand Theater Society and allied properties.

“How we can support the current situation is in the hands of Allied Properties REIT and the Great Theater Society, who have a legal agreement on this beloved space.”

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The Calgary Grand Theater Society owned the building from 2018 to 2020, selling it to Allied Properties in 2020 to remove the responsibility of owning the building, Lyster said.

“It was a financial loss, and with limited resources, it made sense to get away from renovating the building and instead focus on arts and culture.”

The building in Calgary's historic Lougheed Block was built in 1912 and has served as a theater since its inception.

Lyster joined the community after the sale. He then turned his attention to creating a “sustainable path forward,” Lyster said, working with advisers over the past two years to develop a plan. He said Allied Properties is on board. . . and part of the discussions from the beginning,” and said the temporary lease incentives allow the model he developed to prove itself.

The Greater Theater Society's annual operating expenses are about $1.8 million, he added. The company is a registered charitable organization.

“We need help so that I can remain accessible to the arts community that I am trying to serve.”

Society does not know when to release Grand. He is “exploring all avenues at this time,” Lister said.

“We will continue to deal with landlords in good faith. We are carefully paying the rent,” he said.

“We are not shouting that the doors should be closed tomorrow. . . but we are at 11 o'clock.'

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