The Citadel Theatre in Edmonton has been a cornerstone of the city’s arts scene for almost five decades. But with the expiration of its lease with the City of Edmonton approaching, the future of the theater is uncertain. The current lease agreement between the Citadel and the city dates back to 1976. Under the terms of the lease, the Citadel is responsible for the operation and maintenance of the building, while the city owns the land on which the theater sits. However, the lease expires in September, and the city has yet to decide whether to renew it. If the lease is not renewed, the city will be responsible for the building and its maintenance costs. These costs are expected to be significant, as the theater is in need of major repairs. A report presented to the city’s executive committee in May estimated that the city would need to spend $375,000 on tools and other items to take over operation and maintenance of the theater. Additionally, the report estimated that the city would need to spend $1.36 million each year on operating-funded repair and maintenance. Over the next decade, the city estimates that it will need to spend $56.2 million on capital renewal costs for the theater. Over the next 25 years, that number jumps to $131 million. The city is currently facing a budget shortfall of $4.8 billion in capital renewal investment through 2032. This means that if the city approves the repairs to the Citadel, it could delay repairs to other city-owned facilities, potentially leading to service impacts. Despite the high costs, city councillors have acknowledged that the city would be responsible for the building even without signing a new lease with the Citadel. “Being left with a building without a core tenant like the Citadel would not be a good outcome for anyone,” said Ward Métis Councillor Ashley Salvador. “So this is not about whether we can do or not do it, it is about the best way to do it,” added Mayor Amarjeet Sohi. In recent years, the Citadel has seen an increase in traffic. The theater expects to bring in $14 million in revenue during the 2023-2024 fiscal year, thanks to an estimated 120,000 visitors. “After the pandemic and after a couple of tough years getting people downtown to see shows, we’re seeing that return and that excitement about live theatre,” said artistic director Daryl Cloran. The Citadel currently receives grants from both the federal and provincial governments. Mayor Sohi has raised concerns about whether those grants could be impacted once the city takes over the building. He pointed out that the province’s Bill 18 would require provincial approval for the city to get those grants. “It’s a huge curveball, there’s no question,” interim executive director Alan Nursall told councillors. The proposal for a new lease will require approval from the city council, which could happen later in May, with the new lease being implemented in October.
Edmonton’s Citadel Theatre Lease Expires, City to Take Over Building and Repair Costs
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