Decades-old Toronto non-profit leasing space to artists goes into receivership

A Toronto arts non-profit founded in 1986 to address a growing affordability crisis pricing artists out of the city is being placed in receivership, creating fear among the tenants and artist owners it aimed to help.

Artscape, which manages more than a dozen buildings in the city that include both homes for artists to own or rent and studio spaces for them to work, sent an email to artists in its spaces Monday sharing the news that attempts to resolve increasing financial challenges were not successful. 

The letter, signed by the non-profit developer's chief operating officer Kelly Rintoul, called the outcome "devastating" but said the organization would be working to support a transition to enable creators to continue to thrive.

Tahirih Vejdani, an actor and singer, who owns a space in an Artscape building at Dundas and Jarvis streets, where she lives and works, says the news has sent fear through those living in the buildings as to what it means for them.

"A lot of fears and concerns, because we don't know what that looks like," she told CBC Toronto. "And we don't know what impact that's going to have on the people who are involved with this organization."

News of the receivership has sent artist tenants and owners like Vejdani looking for answers and assurance, which she says are so far are in short supply.

The organization has not yet been able to provide much clarity to tenants or homeowners about how they will be impacted, she said. Nor was it available to answer questions from CBC Toronto Tuesday, instead pointing to a statement on its website.

"While the receivership process will be disruptive to the operation of Artscape facilities, we are working hard with the city in an effort to have facilities remain operational," it said.

"Despite these financial challenges, our commitment to meeting the needs of artists and arts organizations that have relied upon Artscape for space, programming and other services remains strong and, through the receivership process, we will work with partners towards a model with strong oversight and financial stability that remains committed to this mission."

The organization did not answer if owners or those with leases are in danger of losing their homes, why the city's offer of a loan wasn't sufficient or how much debt it is facing. 

Vejdani said she doesn't want to think about where she will end up if she loses her home, noting rents and home sales in the city have skyrocketed since she applied to Artscape eight years ago. 

"It gave a sense of security… being able to afford a place in the heart of Toronto and not feel the risk that I'd have to leave because of rising rents or anything like that," she said. 

Artscape says it commenced a financial restructuring plan several months ago, after a challenging pandemic period for the organization. It attempted to sell its Launchpad property on Queen's Quay East  to repay debts, but was not able to sell the property, its statement said.

The organization sought an extension to its existing line of credit from its primary lender, TD Canada Trust, supported by a loan guarantee by the city in July. But it says the terms between the city and the bank couldn't be met, leaving the organization insolvent.