Alano Club – Update

Recommendation:
That the July 11, 2005, Community Services Department report 2005CSW037 be received for information.

Report Summary

This report provides an update on the Alano Club’s efforts to procure $105,000 to complete building upgrades and as a follow-up to Administration’s report 2005CSW028 and discussions at the Community Services Committee meeting on June 13, 2005.

Previous Council/Committee Action

At the June 13, 2005, Community Services Committee meeting the following motion was passed:

That Administration explore other revenue sources and whether there are any other precedents where City funding has been provided to organizations in similar circumstances.

At the April 11, 2005, Community Services Committee meeting the following motion was passed:

  1. That the March 18, 2005, Community Services report 2005CSW022 be referred back to Administration to review current operations and to explore options to procure $105,000 to complete building upgrades and report back to the June 13, 2005, Community Services Committee meeting.
  2. That the report include implications if the City of Edmonton were to provide funding to Alano Club as requested.

At the March 1, 2005, City Council meeting Councillor M.Phair made the following inquiry:

“I have attached a recent letter from the Alano Club for a special renovation grant. I would like information from Administration as to any support that the City might have provided to this organization and if the City has money available for such renovations.

I would like this inquiry to return to the March 21, 2005, Community Services Committee meeting.”

Report

  • The Alano Club is a not-for-profit organization that has been based in the Edmontondowntown core since 1953. The purpose of the Alano Club is to provide a safe place for those in recovery from alcohol and/or drug addictions; family members, friends and the general public are also welcome.
  • The Alano Club’s need to relocate to a different facility was initiated due to a change in their lease agreement with the Province (from $1.00/year to minimally $2,500/month). A facility has since been purchased by the Alano Club, and although smaller in size than their previous site, the 10728 - 124 Street location has potential to draw more clientele to the Alano Club’s programs and services (due to transit accessibility, more parking space, free parking, etc.).
  • The relocation to a new facility was unanticipated and therefore the Alano Club has been impacted by short timelines for finding a building, moving, and fundraising.
  • Funding of $250,000 from three Alberta Lottery Fund sources has been accessed (Community Facility Enhancement Program, Community Initiative Program, Wild Rose Foundation) for this new facility. The Province has indicated to the Alano Club they will not be eligible to apply for more funding under these programs again until 2007.
  • The Alano Club is requesting a one-time only grant of $85,000 from City Council in order to complete the facility enhancements needed to deliver programs and services.

Other Revenue Sources

  • Since the April 11, 2005,Community Services Committee meeting,the Alano Club has been very responsive and diligent in their efforts to obtain the $105,000. The Alano Club received a $20,000 grant from the Edmonton Community Foundation on July 7, 2005. This $20,000 is dedicated to the roof component of the Alano Club’s request (Attachment 1).
  • Administration,in conjunction with the Alano Club, has researched numerous potential funders and identified compatible ones. The Alano Clubhasindicated that applications for funding have been submittedtoH W Siebens Charitable Foundation, Trust Under Will of RobertTegler, and Edmonton Community Foundation. An initial query to the Hunter Family Foundation was made in April 2005; however, the Foundation indicated it was at its quota for applications for the year. The Alberta Sports Recreation Parks and Wildlife Foundation was also contacted and the Alano Club was advised to submit an application for the Games Room equipment after the renovations are complete.
  • An application has also been made to the Muttart Foundation for Operating Funding. On July 11, 2005, the Alano Club received notification that they would not be receiving funding via this program.
  • The other applications have also been denied funding. The foundations indicated the rejection did not reflect on the merit of the Alano Club’s request but rather it was a case of too many applications and not enough funding.
  • Bank loans are a potential source of revenue; however,incurring debt is not a desirable, or feasible, option for the Alano Club.
  • The Alano Club’s annual fundraising events (golf tournament, appreciation dinner) and casino revenues are utilized to offset monthly expenses and currently the organization does not have the volunteer capability to initiate and implement more events.

Other Precedents Where City Funding Has Been Provided

  • The new Alano Club facility is not in the City inventory, nor on City-owned land, therefore no lease or licence agreement exists with this organization.
  • A similar situation,existed with the Westend Seniors Activity Centre (WSAC), formerly known as the Edmonton Self-Starters Seniors Organization (ESSO), located in the Terra Losa neighbourhood.
  • At the December 2002 Special City Council meeting, a motion was passed whereby the WSAC project was added to the funded capital plan for $250,000 with funding to come from the Utility Dividend in 2003.
  • When the Terra Losa subdivision was built the various developers built a community facility and turned it over to a newly created Terra Losa Community Association. This land is privately owned and is not in the City inventory, thus no lease or licence agreement will exist with WSAC when they relocate to this site. If for some reason the Terra Losa Community Association or now the WSAC becomes insolvent, the City will receive what land or building remains after creditors have been paid.
  • A related City grant that exists to fund capital projects is the Community League Maintenance/Renovation Grant Program. This program provides capital assistance to registered community leagues for maintenance and/or renovation of community league buildings or related projects. This grant may cover up to 50% of the cost of a project to a maximum of $10,000 in one year and to a maximum of $23,000 over the lifetime of a community league. The majority of these community league projects are preventative maintenance or address safety issues. The approved budget for the 2005 Community League Maintenance/Renovation Grant Program is $87,900.

Budget/Financial Implications

  • There is no budget in place to accommodate requests for capital funding for privately owned property.
  • As of June 30, 2005, there was $633,000 remaining in Council’s Contingency Fund.

Background Information Attached

  1. The Alano Club – Project Costs

Background Information Available on Request

  1. Report 2004CSW028 – Alano Club
    (M.Phair) - Inclusive of attachments
  2. Report 2004CSW022 – Alano Club
    (M.Phair) - Inclusive of attachments

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