“Every dime that we spend on rent is not spent on delivering a service to someone.”
According to McDonald, the rent increase will divert funds and put more pressure on the services the centre provides.
CHC acting president Bo Jiang said negotiations on a rent increase have been ongoing for three years, but “stopped” in November, with the rent increase reflecting the organization’s need to break even with operational costs of the building. “Our partners that partner with us, the expectation from our perspective, is that they will be at break even … because whatever the cost is to run the operation and administer the housing needs, is appropriately charged.”Jiang said the increase will also help cover costs of future repairs that were identified in a recent engineering building condition assessment, in an effort to avoid a “large lump sum cost” to the organization down the road.
That letter outlined limited options for the centre to make up the extra money required for rent including: diverting funding from programming, reduce salaries and staffing at the centre, divert revenues from rental fees at the local community arena, or hand over responsibility of the organization to the City of Calgary.
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