'We literally ran out of money': Calgary Legion forced to close pub, sell building
It was supposed to be a model for Legions across Canada but, six years after it opened, the Royal Canadian Legion No. 264, known locally as the Kensington Legion, has closed its public restaurant and bar and sold its building, becoming a tenant in the property it once owned.
“It's sad from a couple of points of view,” said Alan Pentney, treasurer of the branch. “We could not generate the revenues we had expected. We wanted to put them back into the community. We had projected possibly a $250,000 in profits if everything had gone well, which would have gone back into the community.
“It’s also sad because we has such an excellent space that we were able to provide service to people.”
Legion No. 264 moved into its digs at 1918 Kensington Road as part of a land swap with Truman Development Corporation in 2017. The deal saw Truman build a four-storey office complex, with a street level pub, and exchange it for the Legion’s large property next door.
Under the new model, the Legion expected three revenue streams: memberships, office space leases and the 1918 Tap and Table Pub.
“The 1918 Tap and Table was very successful. For the first two years, you needed reservations to get in here,” said Pentney, “and then of course, COVID came along, but it still remained very popular.”
While the Tap and Table was profitable, it did not make enough to offset losses in the other revenue streams.
The Kensington Legion was hit hard by Calgary’s rising office vacancies.
“The leasing situation in all of downtown Calgary suffered drastically,” said Pentney. “So it was virtually impossible for us to lease space, especially since we didn't have the revenues to create the improvements to attract people into the space.”
Membership sales also fell. The Kensington Legion once claimed to be Canada’s largest, with over 4.500 members. In 2017, when it moved buildings, that was down to 1,400. Currently there are only 400 members on its roll.
“We have lost roughly 1,000 members over the past three years. combination of COVID and the fact our lounge was shut down and other legions were open,” said Pentney, “so people moved their memberships either didn't take up memberships or moved.”
Pentney said city property taxes were the Legion’s largest expense and the one that eventually forced the sale.
“We literally ran out of money. And so we had to offer the building up for sale,” said Pentney.
The Legion asked council for a break on its property taxes but was turned down. The area councillor told CTV News that council tried to work with the Legion, but eventually had to make a decision that was fair for everyone.
“The critical question for us, of course, is, whatever we do, how does that preserve equity across all other businesses that went through difficult times during COVID?” said Ward 7 Coun. Terry Wong.
“In other words, a tax relief of some sort, that would have introduced inequity, and the potential for others coming forward (to ask for the same break).”
Last week, the Legion completed the sale of its building to Ronmor Holdings Limited for $7.5 million. As a part of the deal, the Legion will lease the second floor of the building for the next 50 years.
Legion members are meeting Monday night to discuss what to do with the money from the sale. They are also looking for ways to bring back some of those members who left and attract new ones to the Legion.
Despite the financial difficulties the Kensington Legion faced, Pentney still believes the model is a good one for Legions in the future.
“At the end of the day, we're coming out ahead anyway, in that we have space – we have a lease for 50 years at a very reasonable terms and a home,” said Pentney.
“So, I still think it's valuable option for Legions to look at – getting rid of old buildings that are getting run down and moving into newer spaces and, perhaps down the road, Legions will need to amalgamate and join each other.”
Pentney says a new pub is expected to open in the spring inside the space previously home to the 1918 Tap and Table. In the meantime, the Legion’s members-only space will be open to the public until the new restaurant and bar is running.
CTVNews.ca Top Stories
Young people 'tortured' if stolen vehicle operations fail, Montreal police tell MPs
One day after a Montreal police officer fired gunshots at a suspect in a stolen vehicle, senior officers were telling parliamentarians that organized crime groups are recruiting people as young as 15 in the city to steal cars so that they can be shipped overseas.
Mandisa, Grammy award-winning 'American Idol' alum, dead at 47
Soulful gospel artist Mandisa, a Grammy-winning singer who got her start as a contestant on 'American Idol' in 2006, has died, according to a statement on her verified social media. She was 47.
Man sets self on fire outside New York court where Trump trial underway
A man set himself on fire on Friday outside the New York courthouse where Donald Trump's historic hush-money trial was taking place as jury selection wrapped up, but officials said he did not appear to have been targeting Trump.
Sask. father found guilty of withholding daughter to prevent her from getting COVID-19 vaccine
Michael Gordon Jackson, a Saskatchewan man accused of abducting his daughter to prevent her from getting a COVID-19 vaccine, has been found guilty for contravention of a custody order.
She set out to find a husband in a year. Then she matched with a guy on a dating app on the other side of the world
Scottish comedian Samantha Hannah was working on a comedy show about finding a husband when Toby Hunter came into her life. What happened next surprised them both.
Shivering for health: The myths and truths of ice baths explained
In a climate of social media-endorsed wellness rituals, plunging into cold water has promised to aid muscle recovery, enhance mental health and support immune system function. But the evidence of such benefits sits on thin ice, according to researchers.
'It could be catastrophic': Woman says natural supplement contained hidden painkiller drug
A Manitoba woman thought she found a miracle natural supplement, but said a hidden ingredient wreaked havoc on her health.
Manitoba mom praises quick-thinking fire department for freeing daughter stuck in playground equipment
A Manitoba mother is praising firefighters for their quick work in helping her daughter who got stuck at a playground in Lorette, Man.
The Body Shop Canada explores sale as demand outpaces inventory: court filing
The Body Shop Canada is exploring a sale as it struggles to get its hands on enough inventory to keep up with "robust" sales after announcing it would file for creditor protection and close 33 stores.