Artists win city funding for new home
September 22, 2006

Hamilton Artists Inc (HAI) will get $750,000 from the city to purchase and renovate a permanent home for the 31-year-old organization. The decision came this afternoon at a special meeting of committee of the whole, but it wasn't unanimous and could still be overturned next week at city council.

Earlier this year the group applied to the Future Fund for $1.5 million, but was turned down. Many members and supporters of the artists cooperative then descended on an council gathering last month where their executive director, Donna Lee Macdonald, strongly challenged the operating procedures of the Fund.

“Why has it taken a full four years for the public to get accessible information about the Future Fund?” asked Macdonald at the August 9 meeting. “Why is there no easily accessible transparent account of where and how this money has been spent? In direct contrast to the Future Fund's mission statement, why has there been no direct communication or consultation with the public?”

The Fund was established in 2002 with $137 million obtained by the city when it corporatized Hamilton Hydro, converting it to a wholly-owned subsidiary of the city now known as Hamilton Utilities Corporation. A decision was taken to set aside $100 million as a permanent trust fund, and to allocate the other $37 million for community legacy projects, with the expectation that interest on the trust fund would allow for additional grants in future years.

The mission statement of the Fund says it is to provide a “lasting legacy for current and future generations of Hamiltonians to enjoy economic prosperity, enhanced social fabric, and enhanced community life.” It also promises that the management of the Fund will be “transparent and accountable to stakeholders and the community” and “include regular consultation with the community.”

But nearly all the $37 million was spent before the first formal application form was made available this spring, much of it on projects referred to the Fund by city council including servicing of the airport lands and lowering business taxes. In addition, the city has now borrowed the $100 million trust fund to cover shortfalls in the capital budget created by the costs of the Red Hill expressway and the city's compost and recycling infrastructure.

Macdonald spoke to the committee today and reiterated the group's surprise that the Fund had only $3 million left in it when they made their original application for support. “We never would have put in a project proposal of $1.5 million to a budget of $3 million; that just wouldn't have been reasonable and we're much more of a community member than that,” she told councillors.

The city funding will help HAI purchase a building that will house its artistic exhibitions, as well as provide subsidized apartments and commercial units for local artists. The group expects to receive $180,000 each from federal and provincial granting agencies, and to be able to cover ongoing operating costs of the building from the rents on the apartments and commercial units. While a location has not been finalized, Macdonald said it would definitely be in the downtown core and likely on James Street North.

City funding is dependent on HAI securing the federal and provincial funding and providing regular updates on the project to the Future Fund. The city will do an appraisal of the building before the purchase occurs and will retain the right to take control of it if the group folds.

The recommendation to grant the group $750,000 was made by Brian McHattie and seconded by Terry Whitehead. It won the support of Bob Bratina, Phil Bruckler, Maria Pearson and Margaret McCarthy. But Dave Mitchell, Tom Jackson and Chad Collins registered their opposition.

Two other councillors – Sam Merulla and Bernie Morelli – were out of the room at the time of the vote, returning just after it took place. Mayor Di Ianni and councillors Bill Kelly, Dave Braden and Art Samson did not attend today's meeting.

Jackson stressed that he supports local artists, but noted that other requests are before the Future Fund, and felt this wasn't the right time to make a decision. “We're so close to the election that I think – given the significant dollars here, at this time of the year – I think it's something that really should be held over for whoever's on the new council at that time.”

A final judgment on the grant will be made by city council on Wednesday evening. The HAI plans can be viewed on the city's website. It also has it's own website. A history of the Future Fund, as well as it's mission statement have also recently been posted on the city website.