The Sans Souci building in downtown Lafayette, built in the mid-1850s, has been home to the Louisiana Crafts Guild for many years.
That could end before 2023 begins, records show. According to records produced by the LPTFA in response to a public records request from KATC Investigates, the lease is ending so that structural issues and maintenance needs that need immediate attention can be addressed.
The records show that the building will be sold by the Lafayette Public Trust Financing Authority back to the Downtown Development Authority, which donated it to LPTFA in the first place almost 10 years ago. The building would be repaired by a local contractor/engineer who specializes in historic buildings, and rented out - but apparently not to the Guild, the documents show.
The documents include correspondence between LPTFA and the Guild going back to Summer 2021 about the issues at the building and the need for those issues to be addressed in order to save it. The initial report raising the flag about the damage to the building came from the person who was director of the Guild at the time, the records show.
In June 2022 the LPTFA's director, Kevin Blanchard, indicated in an email discussing an expensive air conditioning repair that moving the Guild out of the building had been under discussion.
"...You and I have spoken about this some in the past. Have you had any luck finding potential new locations? We are happy to help you with that search, and can talk to the board about helping with moving costs if necessary. But I think today’s A/C scare is a wakeup call for us that we need to re-think our long-term plans for this building," Blanchard wrote. "The trust does not receive any outside funding. We don’t get tax dollars. And so the amount of work we are able to do to benefit the City of Lafayette is dependent solely on the strength of our investments. My preference is that we find a long-term solution that works for both of our organizations."
Andre Juneau, president of the Guild's board and the person to whom Blanchard wrote that email, said in a telephone interview that the Guild didn't realize until this fall that LPTFA was wanting to sell the building. He said he had understood that they were looking for a temporary home if necessary during renovations.
"That was a surprise. We were under the impression that they had the money to fix the building. We had it in our head that we were negotiating on how to get it repaired, and then it turned into we need to get out," Juneau said.
The records show that LPTFA has been renting the building to the Guild for $200 per month plus 2 percent of any sales, which averages about $350 per month rental on the building. LPTFA pays the insurance on the building and handles any repair or maintenance costs, and according to a draft report from the agency's auditor generally breaks even or loses about $1,000 annually. So far in 2022, the Guild has paid $2,945 in rent compared to LPTFA paying $6,165 for expenses, records produced show.
Juneau acknowledges that this was a sweetheart deal, but adds that the Guild was prepared to pay an increase in rent, and even offered a 300 percent increase. Juneau said it was an opening negotiation figure and says it is within the range of fair market rents in downtown. In a telephone interview, Blanchard disagreed.
“The only time Crafts Guild leadership offered to pay increased rent was after we sent them a termination letter, after months of trying unsuccessfully to get them to engage. They did not make a specific offer or name a number. But even a 300% increase is too little, too late. That is still less than half market rate rent and completely inadequate to fund a responsible maintenance reserve," Blanchard said.
The water intrusion problems that are threatening the building need to be addressed immediately, the documents indicate. Right now, without the full extent of the intrusion damage known, the estimate is roughly $150,000. That estimate was provided to the LPTFA and the Guild in July 2022.
In August 2022, the Guild made two proposals, the records show. One that LPTFA donate the building to the Guild and let the Guild take responsibility for repairs and maintenance/upkeep, and the other was to do some fundraising for the repairs, and continue the rental arrangement.
Here's that letter:
Blanchard's response was that the LPTFA didn't think either of those options was in the best interest of the building.
Here's that letter:
"The building may be costly to repair but gifting it to the Crafts Guild would, frankly, be repeating the underlying mistake made when the Downtown Development Authority gifted the building to the LPTFA years ago. lt's less a "donation" or "gift" and more of a transfer of long term liability with real-life financial obligations," Blanchard wrote in response to the option to donate. "While anyone who owned an at-risk asset like this would be tempted to just walk away and have the building be "someone else's problem," the Trust does not have this luxury."
Guild Director Gene Meneray says his group has "a lot of unanswered questions" about the LPTFA's desire to sell the building back to DDA. He said the Guild was not prepared to pay the cost of all the repairs without "an ownership stake," but they were prepared to accept the donation of the building - with its attendant costs - and allow the LPTFA to do just that - walk away.
On Wednesday, the Guild responded to the lease termination letter with an email offering to pay an increase in rent, and to work around any contractor who needed to come in and start repairs on the building. He also noted that the Guild's Lafayette shop is not its only source of income.
"As you know, the holiday season is very important for the artists and patrons of Sans Souci, and our organization. We would like to extend through January 31, 2023," wrote Meneray. "At the same time, in your letter, you reference the financial losses to the property to LTPFA, and we would like to reverse that. We’d like to enter into a new lease and are prepared to pay a significant increase. You referenced our sales in your letter, but please understand the Crafts Guild has several other revenue producers than Sans Souci, whether they be our New Orleans Gallery, our 220 dues paying members, our festival work, and our foundation and private donors."
Blanchard's response was an email stating that the LPTFA board had voted to move forward, and that the contractor is in high demand and was ready to begin work the first week of November.
In a telephone interview, Meneray says the Guild wants to stay in the building and reiterated that they are ready to pay more rent to do so.
"Like many non-profits, we are by no means wealthy. But we have multiple sources of revenue besides that location," he said. "That building is important to us, as is a presence in downtown Lafayette. We have a gallery in New Orleans, and we easily could go to Baton Rouge, but Lafayette is important to us and downtown Lafayette is important to us."
Blanchard said he's been trying to negotiate with the Guild for some time without success, and his position is that the Guild knew what was happening.
“The LPTFA foresaw that the major structural repairs needed could disrupt the Crafts Guild’s operation and we have been communicating that to Crafts Guild leadership for months. We have suggested they find a new location for months. We have offered to help them transition to a new location for months—and that offer stands. Any suggestion that this was a ‘surprise,’ or that the LPTFA has not been accommodating is just not true," he said.
Meneray says the Guild has been trying to find a place to land without success, because there aren't a lot of good options for gallery space. He says the group doesn't want to hurt the endeavor by moving into space just because it is available. Juneau said if anyone has a place they feel could work, please reach out to the Guild because they're actively looking.
Blanchard said the LPTFA's offer to help the Guild find that new home - especially one in downtown Lafayette - and transition into it is still open. He said he's still trying. But at this point, he added, saving a piece of Lafayette history is paramount.
“We are big supporters of the mission of the Crafts Guild, and the decade that we spent heavily subsidizing their operations is evidence of that. Unfortunately, the fact remains that the preservation of that building for the next 150 years has to take priority. This is temporarily uncomfortable but entirely necessary. Ensuring the long-term future of that building is more important," Blanchard said. “The Sans Souci building has served so many purposes over the last 150 years: a post office, a restaurant, a bookstore, and for 20 years, a crafts store. It is our responsibility to ensure that the building is around for another 150 years, so that future generations can add to the building’s rich history.”
By strange coincidence, Festivals Acadiens is the Guild's main fundraiser - it helps support the Sans Souci gallery. So the start of the festival is bittersweet, Juneau said Friday afternoon, from Girard Park.
"Sans Souci loses money, that's the nature of the business. This is the fundraiser to pay for those losses," he said. "We're extremely disappointed. All our members are out at the park right now."
