Halifax buying back historic Khyber building, citing ‘serious concern’ with owner’s plans

Nearly eight years after Halifax sold the historic Khyber building in the hopes it could be revived, the municipality says the site has become a “threat to safety” — and is taking it back.

The Turret Arts Space Society, formerly the 1588 Barrington Street Building Preservation Society, bought the Khyber for $1 from Halifax in May 2018.

The group originally planned to turn it into an arts and culture hub, later adding the goal of becoming the first designated queer heritage site in Canada.

But Halifax council voted during a private in-camera session on Nov. 18 to buy back the building after staff raised multiple concerns about safety and the society’s ability to deliver the project.

The municipality made the report public on Wednesday.

“The main concern is, to me, the state of the building and … to be able to have a future,” area Coun. Laura White said Thursday.

“I'm hoping someone with more money or experience in doing a heritage building comes forward.”

The Khyber has a storied history in Halifax. Erected in 1888 as a Church of England institute, it became a nightclub in the 1970s operated by the Gay Alliance for Equality. In the early 1980s, it was a gallery space before becoming a music venue in the '90s and early 2000s.

The municipality shuttered the building in 2014 due to building code violations and evidence of hazardous materials such as asbestos.

Between 2018 and 2023, the staff report said the society received more than $700,000 in federal and provincial funding for an impact strategy and new architectural plans. Halifax provided $250,000 for asbestos abatement in addition to seven years' property tax relief.

But staff said they do not believe the society can raise the project cost of $18.5 million from government and private funding streams. 

The report said the society has just over $2,000 in cash with over $43,000 in debt to consultants, utilities and insurance. The group does not have property insurance on the building, but does maintain third-party liability, the report said.

“There is serious concern that after 12 years of remaining vacant, the unoccupied building is a threat to safety through continued deterioration and of risk of fire and damage to abutting buildings such as Neptune Theatre,” the report said.

Staff said Halifax's sale agreement allows the city to buy the Khyber back for $1 if the upgrades were not done within two years. The society then extended the agreement to three years.