City councillors voted to throw the struggling Sudbury Theatre Centre a $200,000 lifeline on Tuesday, as the severity of the centre's financial crisis was made clear.
The city's professional English-language professional theatre company, it was revealed in June, is about $400,000 in debt due to a string of losses over the past three seasons.
STC is now working with a consultant specializing in theatre companies' finances, and the Greater Sudbury Development Corporation is paying for this consultant.
But on Tuesday, Ward 10 Coun. Fern Cormier said the STC believed it had more time to meet certain creditors' demands. However, those creditors are demanding payment by Nov. 1, putting the theatre's future in jeopardy.
“Their situation, as has been expressed publicly, is dire,” Cormier said. “For the first time they are seeking assistance of this magnitude.”
While the city provides an operating subsidy for the STC, he said this is the first time they have come for additional help in the 40 years of operation. Cormier said a “perfect storm” of events went wrong over the last few years, leading to current situation.
“This show of confidence will be, in my opinion, vital to them moving forward with their capital campaign,” he said.
GSDC director Ian Wood said he was confident that the $200,000 would end the crisis and allow the STC to proceed with their recovery plan, as being developed by the consultant.
“They had a significant staffing challenge about three years ago that left them (with) a significant deficit,” Wood said. “They had to bring in a new artistic director, and some of the decisions made subsequently didn't solve the problem and (instead) aggravated it.
“They're at a point now if they don't address outstanding issues with their creditors, and are unable to place deposits for a revenue-producing Christmas show, they will have difficulty continue operating.”
“This isn't a Bombardier,” Cormier added, saying he thought of it as a one-time donation to preserve an important arts organization.
“I would hate to see us lose this valuable asset in our community,” he said. “I'm confident, with this show of support ... the STC will continue to contribute to our wonderful arts commmunity in the City of Greater Sudbury for decades to come.”
Ward 12 Coun. Joscelyn Landry-Altmann was unimpressed that such a large request was coming in at the last minute, without even a staff report behind it.
“You must have seen this coming,” she said, addressing Wood. “I'm extremely disappointed in the GSDC ... There should have been some report associated with this motion.”
Wood said they have been working closely with the STC, but unexpected demands of creditors forced their hand.
“The situation worsened much quickly than we thought it would even a week ago,” he said.
“So in essence, the $200,000 is a bailout,” Landry-Altmann said.
But Mayor Brian Bigger said that a Nov. 1 deadline is looming, something that is not the fault of the GSDC.
“The funds are needed in short order,” Bigger said. “This is not the responsibility of staff ... There is some urgency here.”
While supporting the motion, Ward 7 Coun. Mike Jakubo pointed out that the operating budget is already running a $2.9 million deficit, and this will push it to $3.1 million.
In the end, only Landry-Altmann voted against giving the STC the $200,000.
