NAC ‘deeply regrets’ The Substation’s closure; explains rejection of its bid to be sole tenant at revamped building

• The Substation announced on Tuesday that it would permanently cease operations in July
• NAC said that it had rejected The Substation’s request to return as sole tenant to 45 Armenian Street after two years of renovation
• NAC said that the venue would be of “greater benefit” to the wider arts community
• It said the centre had turned down its offers for support during the renovation period and beyond

SINGAPORE — The National Arts Council (NAC) said on Tuesday (March 2) that it "deeply regrets" The Substation's decision to turn down its support and close permanently despite “constructive discussions” between them as recently as mid-February.

The NAC said that it had rejected the independent art centre's request to return as sole tenant to its premises at 45 Armenian Street after renovations as “the space would be of greater benefit to the broader arts community”.

While The Substation wanted autonomy over the whole space at 45 Armenian Street so it could generate income from venue hire, this was “neither feasible nor sustainable in the longer term”, the NAC said in a media statement.

NAC added that it had been prepared to work closely with The Substation to review the centre’s artistic and financial strategies, but that the centre turned down its support and decided to discontinue its operations instead.

“It is a missed opportunity,” said NAC in its statement.

CLOSURE COMES AFTER FOUR YEARS OF TALKS

The independent arts centre, set up in 1990 by theatre doyen Kuo Pao Kun, had announced earlier on Tuesday that it would shut its doors permanently after operating for over three decades.

The move came after four years of talks with NAC to find an alternative venue while its current premises are taken back by the council for renovation works later this year.

The centre leases the building from NAC under its Arts Housing Scheme, which provides the arts community with affordable, heavily subsidised spaces.

A former power substation, the 1,630-sqm centre has been a springboard for some of Singapore’s acclaimed artists, including contemporary arts practitioner Amanda Heng and Mr Kok Heng Leun, artistic director of theatre company Drama Box and a former Nominated Member of Parliament.

In a statement on Tuesday, The Substation’s board said it had decided to shut permanently in July because of its inability to return “fully to its place of origin”.

The board said that it disagreed with NAC’s decision to convert the space into a building occupied by multiple tenants after renovation works are completed in 2023.

NOT FEASIBLE FOR SUBSTATION TO RETURN AS SOLE TENANT

In its statement, NAC said that over its several years of “constructive discussion” with The Substation, with the most recent on Feb 15, it had consistently explained to the centre that it would be welcome to return to the building after renovation works.

However, The Substation would return as a co-tenant, along with other arts companies, to allow more art companies to benefit from the enhanced space, said NAC.

It noted that it was “neither feasible nor sustainable” for The Substation to return to its original premises as the sole tenant, given that a substantial proportion of its annual revenue comes from commercial venue hire.

It had pointed out that from the financial years 2017 to 2019, government grants formed about 45 per cent of the centre’s income, while another 41 per cent was from rental income earned from its subsidised space at the building, such as the space it leases to bar and bistro Timbre.

On the other hand, The Substation’s arts programming activity has “reduced significantly” over the years, said NAC, noting that the centre’s expenditure for programming made up 23 per cent of its operational expenses over the same period.

“We had explained that it would not be feasible for any arts company to be sustainable if it relies on almost 90 per cent of its income from government funding, including the commercial tenancy income it derives from leasing out parts of the subsidised premises at 45 Armenian Street allocated by NAC,” said NAC.

Instead, the space would be of greater benefit to the broader arts community when made available to other arts groups especially given the growth in arts organisations, said NAC.

THE SUBSTATION DECLINED NAC’S OFFER FOR SUPPORT

NAC said that it had offered to support The Substation through the renovation period and beyond.

For instance, it had offered several interim premises to The Substation.

The Substation’s general manager Loh Aik Khoon had previously told TODAY that NAC had suggested some venues for relocation, including Goodman Arts Centre in Mountbatten and Aliwal Arts Centre in Kampong Glam.

NAC had also agreed to increase its grant funding to The Substation during the interim period.

The funding would be on top of NAC’s direct grants, such as the annual Major Company Grant which The Substation has been receiving since 1990, and additional support it receives from the Government’s Covid-19 relief measures.

NAC added that it felt that the interim period would be a good time for The Substation’s board to reflect on its operating model, given the maturing arts scene in Singapore.

It thus offered to work with the centre to review its artistic and financial strategies to return to long-term sustainability and contribute to the arts and culture ecosystem.

“In that vein, NAC invited the current board to co-create the vision for the renovated arts centre with us, and welcomed its return as a co-tenant after renovations,” said NAC.

However, The Substation turned down its offer to work closely on coming up with additional funding and venue arrangements and chose to close the centre instead, said NAC.

PREMISES TO REMAIN SPACE FOR ARTISTIC EXPERIMENTATION

Nevertheless, NAC said that it respects the board’s decision to close The Substation.

It assured the arts community that it agrees that 45 Armenian Street must remain a safe space for artistic experimentation and supports the work of young, unproven practitioners.

NAC added that it plans to engage practitioners and stakeholders on the vision for the new space, and called on the community to join in discussions.