A group of supporters of the Matador Ballroom believe the historic night club can be saved yet, and has proposed a community-driven bond purchasing scheme which has helped similar spaces live on in the city.
The Matador, which has lain dormant since it closed eight years ago, was expected to soon re-open its doors following a lengthy bureaucratic odyssey. After finally having its application accepted by the city to be rezoned so as to allow it to host musical performances, it appeared the Matador, once an infamous after-hours bar, was on track to be reborn as a year-round events space and restaurant, starting next spring.
Then in mid-October, co-owner Paul McCaughey announced he was departing the project and the building where the Matador is housed, at 466 Dovercourt Rd., will be put up for sale. It’s since been listed for $4.9 million.
Despite a history in the community dating back more than 100 years, McCaughey admitted ‘investor fatigue’ had played a role in the seemingly untimely end of the Matador, its final fate likely to be the future site of a residential development.
But after hearing the group’s proposal to issue community bonds, McCaughey tells the Bloor West-Parkdale Neighbourhood Voice he’s intrigued to learn more about the idea in the hopes it can be used to purchase the site and run the Matador’s operations as a nonprofit.
Under the terms of the proposal put forth by Ryan Collins-Swartz and Stephanie Pinnington, from the community investment nonprofit organization Tapestry Capital, bonds of varying dollar amounts would be issued for a fixed term to anyone interested in taking part.
McCaughey, who met with both Collins-Swartz and Pinnington last week, estimates he’ll need $7.5 million to purchase 466 Dovercourt, complete renovations and cover staff and opening costs.
Collins-Swartz and Pinnington, who have been on the search for prospective investors, said the use of community bonds have been successfully employed by other community groups in purchasing real estate for their operations.
They mentioned the Centre for Social Innovation (CSI), which has purchased two downtown buildings already making use of community bonds. Toronto Artscape, which builds live and work spaces for artists, has also made use of community bonds in financing site purchases.
While not a product of community bonds, Hugh’s Room, which was also going to close, was eventually saved following intervention from community members and has since been re-christened as a nonprofit.
In the case of the Matador, what makes it an attractive vehicle for community investment is its iconic past, where the likes of Robbie Robertson and Leonard Cohen performed and caroused through the years, leaving their signatures on the Matador’s walls, along with its likely high return of investment since the project has received public support from the mayor’s office, local councillor Ana Bailao and a host of supporters.
“There’s many different ways it can serve a social purpose while serving the community in a positive way, while earning revenues and being able to pay investors back,” said Collins-Swartz.
While McCaughey sees the potential in community bonds, he admits there’s one person he needs to convince that the plan has value: his brother and main investor Gerry.
McCaughey hopes if he can’t delay the sale of the building, then to convince his brother to delay accepting an offer so as to allow for enough time for the community bonds to be issued and fund an eventual purchase.
“We’re at the pinnacle of achieving something that is the epitome of iconic,” he said.