The buildup of property taxes — which legions are sometimes exempt from paying — together with few tenants and COVID-related challenges pressured the Kensington Legion to promote
![The Royal Canadian Legion #264 located at 1918 Kensington Road NW was taken down on Monday January 16, 2023.](https://smartcdn.gprod.postmedia.digital/calgaryherald/wp-content/uploads/2023/01/0116-kensington-legion.jpg?quality=90&strip=all&w=288&h=216)
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The Kensington legion department will develop into a tenant in its personal constructing after having to promote the six-year-old facility attributable to inadequate funds.
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The Royal Canadian Legion No. 264’s restaurant has closed and the department has accomplished the sale of its constructing at 1918 Kensington Highway. It signed a 50-year lease with the brand new homeowners.
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“We simply actually ran out of cash to run the constructing within the final yr,” stated department treasurer Alan Pentney.
With the lifting of property taxes, few tenants created preliminary challenges
When the constructing opened in 2017, it was hailed as a doable mannequin for Royal Canadian Legions throughout the nation by unlocking a income stream from industrial tenants. Nevertheless, the constructing by no means attracted the tenants it wanted to function with out a deficit.
“It is a lovely constructing with glorious area,” Pentney stated. “The restaurant did very nicely.”
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However the industrial areas meant the legion needed to pay property taxes, an expense that native branches have been usually partially or absolutely exempted from below provincial guidelines.
As property taxes for the constructing mounted in 2019, the realm councilor on the time proposed a tax abatement to keep away from doubtlessly forcing the department to stop operations. The aid was lastly supplied by town council.
Nevertheless, the COVID-19 pandemic unfold to Alberta a number of months later, additional exacerbating the scenario. A lot of Calgary’s legion branches have struggled by the pandemic, as occasions have been canceled and membership has dropped.
The Kensington Legion has seen some tenants transfer in forward of 2020, however the pandemic has continued to trigger issues. Pentney stated one tenant was a marriage venue, which skilled mass cancellations and lack of income in 2020 attributable to pandemic restrictions.
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‘As well as, COVID additionally affected our consequence within the restaurant. So we got here out of COVID actually struggling financially,” Pentney stated.
Tax exemptions weren’t an possibility, council member says
Ward 7 gr. Terry Wong stated town regrets that the legion was unable to make the constructing financially viable.
“We have been participating with the legion over the previous few months speaking in regards to the monetary situation they’re in. We have talked about various issues, together with offering tax aid,” Wong stated.
“Sadly, there was no method to give them a tax exemption, and by way of the tax aid, it could create inequity within the non-residential tax area. There are lots of different companies on the market which have additionally had tough occasions through the COVID interval.”
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Wong stated he’s happy the department will be capable of proceed out of the constructing as a tenant due to its significance to the group.
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Ronmor Holdings Ltd. purchased the constructing for $7.5 million. The Kensington department, which has been in enterprise for 70 years, will proceed to occupy the second ground and the restaurant will likely be leased.
“We’ll get our meals from that restaurant after they open someday in April,” Pentney stated. “The phrases are very beneficiant.”
The legion can even be capable of maintain its memorabilia within the foyer, fly flags outdoors the constructing and accommodate Memorial Day ceremonies, Pentney stated.
“We will focus extra on our members once more. We put loads of emphasis on getting the restaurant and build up and working, and put loads of our volunteer effort into that, and now we are able to focus extra on issues that the members take pleasure in,” he stated.
“With the sale, we now have sufficient funds that we are able to proceed and make investments these funds to function with out a deficit.”
sbabych@postmedia.com