Vancouver can't afford to let the Vancouver Art Gallery occupy its prime empty chunk of downtown land by itself - as gallery leaders are insisting they must - because that site has to make a profit to pay back a $48-million debt the city took on four years ago.
If the gallery were to get its way, the city would have to find other strategies to cover that debt - perhaps by turning to taxpayers.
Several city councillors and staff have confirmed that the previous city council agreed in 2006 to cover the cost of the extensive renovations to Queen Elizabeth Theatre and the Playhouse through a loan that would eventually be paid back from the profits of developing what is called the Larwill Park site, an empty block next to the theatre.
That means that if the art gallery goes onto the site alone, instead of sharing the block with an office tower as the city had originally planned, the city would either have to cover that $48-million debt through future property taxes or hope to get it back from the gallery.
The people behind the VAG's push for a new, grand facility are adamant that it not share the space with an office tower.
"Art museums are not generally built in skyscrapers," relocation committee chair Michael Audain said. "And I think that we do need a certain amount of area ... a minimum of three acres in order to interest an architect to produce something on a lower-rise scale which will meet the functional needs of an art museum and at the same time be visually important."
The gallery's executive director, Kathleen Bartels, said she tries to stay away from terms such as "starchitect" and "iconic," but there's no question the building itself is a big part of her vision.
"I think we want a significant museum. Something that displays art in the most wonderful way possible. And certainly we want it to be as strong outside as it is inside."
But Vancouver city manager Penny Ballem said gallery directors may need to consider a compromise. "We have said to them don't assume that you have the full use of that site."
Ms. Ballem also cautioned that in the current economic climate, the VAG may have to have a good, hard look at its ambitious plans for a gallery that is double its current size and estimated to cost $400-million.
Although Ms. Ballem has been referring this week only to "encumbrances" on the site that will make it difficult for the gallery to negotiate, Councillors Raymond Louie, Heather Deal and Suzanne Anton confirmed that the city has agreed that future development profits for the block were committed to paying back the cost of the renovations.
Now councillors are taking different positions on what to do about that situation. Mr. Louie said he intends to look for opportunities for the gallery to relocate, but added that he's concerned about leaving taxpayers holding the bill.
Frances Bula is a freelance writer based in Vancouver.
