HomeMy WebLinkAboutCSD-06-031 - KOR Assets Update
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Community Services
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Report To:
Date of Meeting:
Submitted By:
Prepared By:
Ward(s) Involved:
Date of Report:
Report No.:
Subject:
Mayor Carl Zehr and Members of Council
February 27, 2006
Erina Harris, Facilitator Arts and Culture x 2912
Erina Harris, Facilitator Arts and Culture x 2912
N/A
February 24, 2006
CSD-06-031
KOR ASSETS - UPDATE
RECOMMENDATION:
For Information
BACKGROUND:
As per staff report CSD-06-019 (February 06, 2006), this report provides updated information
pertaining to the three sculptures created by local artist John DeBoer, owned by the KOR
Gallery and Studios and located at 79 Joseph Street in Downtown Kitchener. At the meeting of
Council on February 13, 2006, Council approved staff's recommendation to decline the offer to
purchase the general assets remaining in the KOR Gallery. In addition, Council asked for
information regarding the "value; original purchase price; receipts issued; and, options to retain
the pieces in the public realm." The purpose of this report is to provide a timely update on the
information gathering to date and the situation as it relates to KOR's sale of assets.
REPORT:
Representatives of the KOR Gallery and Studios Board will close bids on the assets for sale at
midnight on Monday February 27th. The list of assets for sale does not currently include the
three sculptures. The outcome of this auction will assist KOR in determining the financial status
of the organization in terms of its ability to repay its unsecured creditors, which currently
includes $6,353.51 owed to the City of Kitchener for outstanding utility bills. A list of creditors
and debts has not been furnished at this time.
It is the hope of KOR representatives and members of the Arts and Culture Advisory Committee
that the sculptures will remain in the public realm, in keeping with the original intention of the
artist. Unfortunately, it has been established that as owners of the artwork, KOR
representatives may be forced to sell the artwork to public or private interests in order to recover
costs, if the sale of assets is not sufficient to enable repayment of creditors.
CSD-06-031
As per the ownership of the artwork, the three sculptures were created for the KOR Gallery and
Studios. They are located on outdoor property owned by the City of Kitchener and include two
gate installations as well as a sculpture entitled "The Rookery" which is attached to a public tree.
To date, no appraised values for any of the artwork have been furnished by KOR. Staff has
received a copy of a tax receipt provided to the artist from KOR Gallery and Studios in
exchange for the work named "The Rookery" for the sum of $4,937.69 as dated on July 6, 2002.
We have not received any further documentation regarding the ownership of the two gate
installations.
With regard to the condition of the donation of The Rookery, City staff has requested but have
not received documentation pertaining to the conditions of the donation at this time. City staff is
exploring all issues pertaining to the installation of the work, including the artist' rights and the
possibility of relocation.
With respect to options to retain the artwork in the public realm, guidelines for the fair and
equitable treatment of all cultural assets and any art acquisition are outlined in the City of
Kitchener's Public Art Policy (1-485) and Percent for Art Policy (1-650).
The City of Kitchener does not purchase individual pieces of art unless the work is specifically
commissioned on the recommendation by the Public Art Working Group as the result of an
independent public jury, as part of the site-specific Percent For Art Program or the Artist- in-
Residence Program.
Any donation of artwork proposed to the City of Kitchener is forwarded to the Public Art Working
Group and staff for consideration and recommendation to the Arts and Cultural Advisory
Committee for final deliberation by Council as outlined in the Terms of Reference for the Public
Art Working Group.
In the specific case of KOR, staff has concluded that the outcome of the sale of assets must be
reviewed by KOR prior to any further discussion of options with the City of Kitchener regarding
the donation of artwork and opportunities for continued public exhibition.
ACAC and PAWG were only able to comment on this subject in principle, due to the lack of
more detailed information including confirmed ownership, conditions of installation and costs
related to maintenance and relocation.
The City of Kitchener currently has no budget for acquiring and maintaining KOR's artwork.
Staff recommends that if KOR proposed donating the works to the City of Kitchener, decisions
related to the artwork's ownership and placement in the public realm would be subject to the
standing policies of review and recommendation, as identified above.
FINANCIAL IMPLICATIONS:
The outstanding utilities bill owed to the City of Kitchener by KOR Gallery and Studios may be
revisited based on the outcome of the sale of assets. At present, the City has not received
information documenting KOR's outstanding debt.
As per report No. CSD-06-019 (February 6, 2006) staff have investigated the costs required for
the KOR representatives to provide more detailed information to Council regarding their balance
sheet and to implement a Trustee-led wind down of operations. Staff was advised that a
professional balance sheet would range from $5000 - $8000; and the services of a Trustee to
perform a complete wind down of operations would range from $10,000 - $15,000 and would
take three - five months. KOR is unable to fund these processes at this time.
CSD-06-031
COMMUNICATIONS:
Communications and updates with City staff, KOR representatives, Council, and members of
the City's culture committees (Arts and Culture Advisory Committee and Public Art Working
Group) are ongoing. Members of both culture committees have contributed laudable input and
volunteer activity to assist with the transition and related issues.
Ultimately, the outcome of KOR's sale of assets will inform KOR's future plans.
Erina Harris
Facilitator, Arts and Culture
AP