'We have nowhere else to go': Toronto artists unsure what lies ahead as Artscape enters receivership

A Toronto not-for-profit organization that has provided affordable housing and studio space for artists over the span of decades has been placed into receivership, potentially threatening the homes and workspaces of hundreds of artists in the city.

In a statement posted to its website on Aug. 28, Artscape said that its post-pandemic financial restructuring had been unsuccessful, due in large part to the organization’s failed attempts to sell off Artscape Daniels Launchpad on Queens Quay East. Without that sale, the organization has said that its primary lender has “taken steps that will lead to Artscape being placed into receivership.”

As a result, Artscape will “wind-down” its management of its spaces, the organization says, though the statement suggests that collaboration with the City of Toronto will allow the facilities to remain operational.

Artscape currently operates a dozen buildings across Toronto.

“We will actively work with the primary lender the appointed receiver, and the city through this transition process,” the statement says.

‘LIKE WHIPLASH’

Artscape was founded in 1986 in response to an affordability crisis that some feared would ultimately price artists out of living and working in the city.

It recent years, the organization dramatically expanded its footprint in Toronto, opening a number of new facilities.

Theatre director Mitchell Cushman resides in an Artscape-managed building on Toronto’s west end, and says the announcement of the receivership “feels like whiplash.” Condo units managed by Artscape ranged from $429,000 - $549,000 in 2019, but the artists living there are only on the hook for a maximum of approximately $310,000, according to a brochure from 2019.

“It felt like winning the lottery when we were one of the folks selected for the Waterworks building in 2019,” he said in an interview. “I’ve lived here basically my whole life, and it feels a little weird that you have to win some sort of lottery to be able to afford to live in your city. But when Artscape came through, it felt like we had something secure and solid.

“This email on Monday night has us contemplating if we really are as secure and solid as we thought,” he continued.

“Most of us are working two, three jobs,” added actor Amy Keating, who resides with Cushman. “But living here, it’s less of a barrier. There’s more breathing room. Artists are able to work and live, and the city is enriched by having artists who can afford to live. It’s important.”

“It’s a hugely valuable initiative,” said entertainment lawyer and theatre producer Derrick Chua in an interview. “I certainly am hopeful it’s not a total loss.”

According to Chua, there may be a few ways forward for Artscape depending on how the receivership plays out.

“It’s hard to tell,” he said. “The receiver might be able to negotiate new terms. The impact could be minimal, or it could be huge. We’re still in the early stages of seeing what this will look like.”

Councillor Shelley Carroll is vice chair of the city’s economic and community development committee. She was the councillor who initiated the request for the City of Toronto to guarantee Artscape’s loan with TD in July.

“We’ve always loved [Artscape’s] vision,” she said in an interview. “These spaces support the quality of life for artists and art organizations, and allow them to create as much as possible…so we’re frustrated that this has happened. To see Artscape’s corporate partner foreclose on them is a heartbreak.”

For Carroll, whose focus is on economic development in Toronto, this possible threat to the city’s cultural output is of huge concern.

“Culture holds the city up,” she said. “The arts are a major part of the city’s success – the health and the mental health of the community. We hope to be a part of the receivership process, and help everyone involved through it.”