Red Deer city council has thrown a lifeline to save a theatre project seen as a vital addition to the city’s downtown.
In a special meeting called on Wednesday afternoon — the first meeting of their new mandate — Red Deer city councillors agreed to provide $75,000 to help Central Alberta Theatre install sprinklers in the former Uptown Cinema Centre, which it plans to renovate as a theatre house and rehearsal centre.
The $125,000 upgrade is required so the building can meet safety codes, with funding to be in place by Tuesday, the final day for CAT to meet its obligations under the lease it has negotiated with the building’s owners.
The city’s funding package includes a grant of $35,000 from a reserve fund that was created for downtown revitalization along with a loan to CAT of $40,000, to be paid back over the next four years.
Final approval of the loan will require a bylaw, which received first reading on Wednesday.
Second and final readings cannot be given until 15 days after the bylaw has been advertised.
That means council will not see it again until its regular meeting on Nov. 29, said city clerk Elaine Vincent.
Chris Stephan, one of three new councillors elected on Oct. 18, was the only one to vote against the funding package. Stephan told council he had a number of concerns about the deal, including a question about why the building owner wasn’t installing the sprinkler system rather than putting the responsibility on its prospective tenant.
CAT executive director William Trefay said that, during negotiations, the landowners said they did not have the financial means to bring the building up to code.
“Had that been the case, that we had insisted that they bring it up to code, the deal would have effectively died on the table,” said Trefay.
In response to another question from Stephan, Trefay said corporate sponsorships are being sought, but could not be put together in time to meet the Tuesday deadline.
Council heard from City Manager Craig Curtis that senior staff support the project because it it will provide an economic and cultural benefit to the city’s downtown at very little cost to the city.
The special meeting was called was due to the urgency of the issue, said Curtis. Council’s first regular meeting is not scheduled until after the deadline for the deal has passed.
After the meeting, Curtis said it is not unusual for city council to hold a special meeting when dealing with an urgent request.
The request did, however, reveal a void in city policy concerning community groups seeking help with capital projects. Following a motion by Councillor Tara Veer, city staff have been directed to develop a policy that can be brought to council by June 30 of next year.
bkossowan@www.reddeeradvocate.com