Harbourfront Centre needs to find new sources of revenue if it is to continue fulfilling its mandate as Toronto鈥檚 waterfront destination for arts and culture, according to a federal government report released this week.
鈥淗颁 does not yet have a sustainable operating foundation. It also does not have adequate revenues to support much needed capital improvements which will in turn help to attract revenues including sponsorships and other sources of funding,鈥 according to the report, which reviewed Harbourfront Centre operations from 2018-2023.
鈥淪ecuring sources of capital investments is an outstanding need.鈥
The review聽鈥 by the Department of Canadian Heritage, which provides Harbourfront Centre with its single largest source of funding聽鈥 recommends that the waterfront arts, culture and recreation venue come up with a 鈥渞evenue diversification strategy,” to be implemented this year.
Harbourfront Centre board president Tenio Evangelista said Tuesday the report doesn’t capture recent efforts undertaken by the centre to diversify revenue sources.聽
He said the centre is setting more specific ticketing revenue and sponsorship targets, has secured a new tenant for a building at 245 Queens Quay West聽that has been empty for years, and is looking into ways to leverage the shop storefront on the site.聽
“Our efforts to attract longer-term corporate sponsors have yielded promising discussions,” said Evangelista, adding that Harbourfront Centre is engaged in a deep review of the findings.聽
“As the report acknowledges, a stronger and more stable funding foundation is necessary for our continued success.”
He said Harbourfront Centre is facing a $30-million capital backlog over the next five years, including repairs to aging mechanical equipment like HVAC systems.聽
“Any capital grants received must be allocated to address the most urgent needs, prioritizing areas such as accessibility, public washrooms, safety measures, lighting enhancements and general repair requirements,” he said.聽
Over the five-year period covered by the review, Canadian Heritage聽gave Harbourfront Centre nearly $57 million, including about $29.3 million in operational funding and $27.5 million in capital funding.聽
The report notes that the city reduced its funding to Harbourfront Centre from $1.3 million in 2021 to $1 million in 2022, and that other revenues聽鈥 from ticket sales, parking fees, sponsorships and individual donations聽鈥 also declined during the period.
As a result, Harbourfront Centre has had to cut programming, lay off staff, freeze salaries and delay state-of-good-repair projects. In 2023, officials confirmed that the popular waterfront skating rink, closed for repairs in 2020, would be permanently shuttered because it was too expensive to fix, even with $20 million in federal grants.聽
Several buildings on the 10-acre site along the central waterfront, west of York Street, are currently closed, including a caf茅, gift shop and 245 Queens Quay West, which has not had a tenant since 2017.聽
Harbourfront Centre estimates it will need approximately $106 million to update and maintain its facilities over the next 20 years. Those facilities include four theatres, an outdoor amphitheatre, the Power Plant Art Gallery, craft studios, marinas, piers, restaurants, and indoor and outdoor spaces for cultural programming.聽
The report notes that Harbourfront Centre was supposed to be funded by an endowment that never came through, but concludes that the centre has to take more initiative to diversify its revenue sources, including “setting targets that support its long-term financial sustainability.”
鈥淗颁 must find ways to remain relevant in an area where other arts, cultural projects and offerings have also received government funding in recent years,鈥 according to the report.
鈥淲ith increased competition within Toronto鈥檚 arts and culture sector, some stakeholders interviewed noted that HC has struggled to remain competitive, particularly due to inadequate maintenance of their campus.鈥
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