The dream turns into a nightmare for the “disillusioned” artists who practice their craft within Ateliers 3333, a building which welcomed its first tenants in 2021 with the promise of offering them affordable long-term rent. However, the building managers, who benefited from significant public subsidies to carry out this project, have since imposed successive rent increases on their tenants which will soon total 35%.
The duty spoke with a dozen artists who rent studios within the seven-story building, which has some 130 tenants. It must be said that the project, carried out in part by the renowned painter Marc Séguin, whose workshop occupies the entire top floor of the former industrial building in the Saint-Michel district of Montreal, caused a sensation in the months which followed the availability of its workshops in the summer of 2021. The following year, the building was full.
“I settled down as if I wanted to be here for twenty years,” says artisan Sarah Longtin, met on Wednesday in her bright workshop on the fourth floor of the building alongside her colleague Josianne Desrochers, who creates ceramic objects by hand. Both were seduced a year and a half ago by the promise of being able to benefit from a workshop sheltered from real estate speculation. “But we were fooled,” deplores M.me Rocks. And now we’re stuck here. »
A feeling of betrayal
The project, the result of a partnership between Mr. Séguin and the Société de développement Angus and the real estate developer Huotco, had the advantage of promising its tenants a very attractive base rent of $12 per square foot, which was initially due increase only at the level of inflation. The initiative also benefited in 2022 from $5 million in subsidies from Quebec and the City of Montreal in order to finance major renovation work in the building.
However, since then, the tenants of the building have suffered a series of increases in their rent, which will reach $16.25 per square foot at the end of the renewal of their contract, by the end of the year. A 35% increase in rent in just over two years, which the managers — who operate behind a nonprofit — attribute to growth in their building’s interest rates and property taxes, including value on the City of Montreal’s property roll has increased by several million dollars in recent years.
“Continuing artist studios in these conditions is not possible,” says Marc Séguin, who claims to also be affected by this rent increase, even if he sits on the board of directors which manages this building. “It has to work in the figures, otherwise, the viability of the project will not be feasible,” argues the artist.
For the many low-income tenants of this building, these repeated increases had the effect of a bomb. A few months ago, they learned that their rent would suddenly increase by 22% at the end of their lease, the terms of which were revised to accommodate the increase in the monthly cost per square foot linked to inflation. Added to that intended to compensate for the increase in tax charges imposed on the building.
“It’s as if my life had turned upside down, literally. I went from deluded to completely disillusioned,” says Sarah Longtin. The latter has since added her name to a letter sent by a majority of the building’s tenants who are calling on property managers to find a way to avoid this anticipated increase in rents. Others plan to leave the premises or welcome more artists into their premises to reduce their financial burden.
“We were deceived,” says Frédérique Laliberté, sighing, who shares her studio with eight other artists. She chose in January 2022 to move into this building because of its affordability, a status that it is in the process of losing, she laments. “We have the impression that they were not honest with us and that they used our cause,” continues M.me Laliberté, who recalls that the idea of offering workshops sheltered from real estate speculation to artists was at the heart of the project put forward by Marc Séguin.
“What we deplore is the lack of transparency. We are asked to adjust, to pay additional costs within a fairly short period of time, but we have no assurance that this will ensure the sustainability of the workshops, says artist Robin Kittel-Ouimet, who regrets that his premises are no longer affordable.
“A hard blow to get through”
“It’s an NPO that owns the building, so the rents charged represent what it costs to operate the building. So, at the end of the year, we have to get to zero. There must be profitability to ensure the sustainability of the project,” retorts Stéphane Ricci, vice-president of development at the Angus Development Corporation. In an interview, he describes the current situation as a “tough blow” for tenants. “We will manage the budget tightly to prevent it from increasing [au-delà de l’inflation] in the future,” he adds.
However, it will be too late for Florence Jacob, who will leave her workshop in the coming months because her rent is now too high. She plans to practice her art in her home while waiting to find an affordable workshop in the metropolis. “It’s a project that seemed so beautiful to us, and now we’re hitting a wall,” says M, sighing.me Joncas, who wonders how “businessmen as seasoned” as those who manage this building could not “see coming” the increase in the value of the building.
“We understand the distress of artists, but we cannot ensure that the company goes bankrupt,” says Stéphane Ricci. We are really in a mode where we understand the distress of artists and we try to find solutions. »
The managers are also in discussions with the City, from which they hope to obtain new subsidies. The City indicates for its part that it is already offering financial support to reimburse the increase in the general property tax for this building “up to a maximum of $130,000 per year”, at least until 2025.