N.S. government covers costs for stalled fundraising campaign for new art gallery building

The Houston government has reimbursed the Art Gallery of Nova Scotia for the money it laid out to launch a campaign aimed at raising tens of millions for its new home on the Halifax waterfront.

The province shelved those plans indefinitely about a year ago because of the project's hefty and growing price tag. The art gallery was planning to raise $30 million toward the new building, which was expected to cost a total of about $137 million when it was announced in 2019.

Last summer, the premier's office issued a revised estimate, saying inflation has pushed the cost upward to more than $160 million. 

The province's $162,193 one-time payment was included in the gallery's financial statements, released Wednesday at the art gallery's annual meeting.

Helen Hayward, director of finance and operations for the gallery, told reporters although the campaign never officially launched, the gallery had to cover bills associated with building the fundraising effort.

"We had hired capital campaign consultants who were leading the campaign," said Hayward. "So even though we had a director of development, a campaign of $30 million requires a lot of expertise.

"So we have the capital campaign expenses, printing of materials. We were developing our marketing collateral as again we're getting ready to launch a campaign."

In an e-mail to CBC News, the Department of Communities, Culture and Heritage said the province had provided the "one-time contribution to cover costs that were incurred and not anticipated"  by the government's decision to shelve the project.

"When the campaign resumes, the AGNS plans to cover all campaign costs," spokeswoman Susan Mader Zinck wrote.

Although the gallery is not actively pursuing donations for its new home, the gallery did raise $37,149 during 2023 for capital projects. That compares to $1,024,210 raised in 2022.

All told, the gallery has amassed signed commitments worth $10 million in donations toward the new building. Last fall, the gallery's board said a total of $30 million has been pledged, including unsigned commitments.

The future of the project remains unclear but the chair of the capital campaign, developer Jim Spatz, is hopeful the PC government will give the project the go-ahead soon.

"What makes me optimistic about the art gallery is the shovels are heading into the ground, as we speak, to build significant health-care assets," Spatz told CBC News.

"The government has been able to make that milestone happen and I'm hopeful that now that it has that shortly, you know within months, we're going to be able to get our show on the road again with regard to the capital campaign."

Premier Tim Houston announced last December an infrastructure plan to add more hospital beds and operating rooms and expand emergency departments across the Halifax region.

In an email Wednesday to CBC News, Houston's director of communications, Michelle Stevens wrote, "Right now the government is focused on fixing health care."

"The art gallery building on the waterfront remains on hold and there is no timeline to lift the pause," Stevens said.