The Albert Lea Art Center will remain on Broadway Avenue because the building’s owner has chosen to appeal a lawsuit that ruled in favor of the art center.

Susanne Crane plans to appeal Judge Steven Schwab’s ruling that granted the art center’s request to terminate its 99-year lease and awarded the art center $458,000 in damages and contractual breaches.

The art center wants to inform its members and supporters that the appeal process could be a long and difficult process, according to Tom Ferleman, the art center’s board president.

“The focus of the art center, is now and has always been, on promoting the arts in Albert Lea and the surrounding areas,” Ferleman said. “Now more than ever we ask our members and the public for their support both financially and by participating in the shows and activities scheduled at the Albert Lea Art Center.”

Because of the appeal, the lease on the current site of the art center remains in effect and the judgment is on hold, according to a press release from the art center.

Calls to Crane went unreturned Friday.

 

The history of the case

The Albert Lea Art Center, a nonprofit organization, was established in 1959. When it was first established, the organization moved from place to place. From 1975 to 1986 it operated out of the small church at 501 W. Main St., now known as Something Special In the Nest.

In 1986 it purchased the building at 224 S. Broadway Ave. in downtown Albert Lea — known to many longtime Albert Leans as the Rivoli Theater.

Though the building was well-suited for the Art Center’s purposes, the operating expenses were higher than what was preferred. Because of this, the organization’s board was interested in selling the building to a third party in exchange for a long-term lease for minimal rent, according to court documents.

In November 2005, Crane — a board member at the time — purchased the building from the Art Center for $40,000 with a down payment of $4,000. The balance of $36,000 would be paid back over 15 years with 6 percent interest. In return, Crane would lease the building back to the Art Center for 99 years at $1 per year.

She also agreed to renovate the building, live there and lease it.

However, shortly after the transaction, the relationship between the two parties began to deteriorate, documents state. The relationship was even described by board members as “toxic.”

Allegations of misconduct from both sides began coming forward.

Crane called the Art Center a “hostile tenant” because of some of the alleged actions of its board members, and she sought to evict the Art Center in 2007. Her efforts were dismissed in April 2008.

The parties disagreed over who had legal ownership of the building and have argued about responsibilities, behavior and proper procedures. They fought over seemingly petty items, such as keys to the restrooms.

The Art Center filed its own lawsuit against Crane in May 2009, alleging breach of lease, refusal of possession, breach of fiduciary duties, among others. Simply stated, the organization sued Crane to get her to honor her initial contract from 2005. The organization also sought damages related to Crane’s “past wrong-doing.”

In his order, Schwab stated Crane limited the Art Center to use of only one bathroom, evicted the Art Center from the basement, removed property from the common area, harassed staff, volunteers and guests, and did not make or pay for repairs to the building. Likewise, documents state Crane barred certain Art Center board members from the building, imposed arbitrary hours the building could be open, failed to pay utilities in a timely fashion and did not allow the Art Center to maintain thermostats in its space.

Of the money Schwab ordered Crane to pay, $7,193 was for Crane’s portion of the utility bills that were paid by the Art Center.

The ruling followed a five-day trial that ended Aug. 17.