The City of Warman is foregoing planned rent increases for two non–profit organizations that occupy space in a city-owned building on Klassen Street.
The Prairie Sky Chamber of Commerce (PSCC) and Route 11 Creative Arts Centre are tenants in 101 Klassen Street, a building which used to house the Warman branch of the Wheatland Regional Library.
Warman City Council voted at its meeting on Monday, September 27 to extend the current leases for both organizations at existing rental rates.
The Route 11 Creative Arts Centre lease is due to expire on March 31, 2022. The arts centre pays $440 per month for its space in the building.
The PSCC lease expired on February 1, 2021. The Chamber, which occupies a smaller space, pays a monthly rental rate of $422.40. The PSCC was granted a rental waiver for three months in April, May and June, 2020; but resumed paying rent in July, 2020.
Under normal circumstances, the city would be looking to increase rental rates by 5%, or $20 per month. However, the COVID-19 pandemic has squeezed both organizations financially.
In a report to the September 27 council meeting, Warman Economic Development Officer Brennan Gasmo said the city is looking to balance the needs of the tenants and the interests of taxpayers.
Gasmo noted in his report it costs the city roughly $9,300 annually to cover utilities and maintenance costs of the building. He added that both the PSCC and Route 11 are able under their current budgets to pay existing rates, but would likely find it difficult to cover an increase.
Gasmo recommended extending the PSCC lease at the current rate to expire on March 31, 2022, the same expiry date as the Route 11 lease.
Warman City Councillor Doug Ramage spoke in favour of the recommendation, saying both organizations provide valuable services to residents and businesses, and the city benefits from its partnership with both.
Warman City Councillor Richard Beck expressed concern that the city was absorbing the additional costs of electricity, natural gas and maintenance, but added having both leases expire at the same time next year allows the tenants time to budget accordingly.
Warman Mayor Gary Philipchuk said if the city did not have these organizations already established here, “then we would be trying to attract them.”
He added that both organizations are unlikely to see increases in revenue to pay higher lease rates until the pandemic has receded and the economy returns to more normal levels.