For the past six years, Savage Art Studios has provided a hub for the city's emerging arts scene. Local artists rent studio space, teach classes, and display and sell their work. The city of Savage has nurtured the enclave by helping pay half the property taxes and charging reduced rent for the studio's downtown storefront. But even with the city's aid, the business lost $10,000 in 2011, said Savage Arts Studios LLC owner Jo Storey. In a letter to the city, Storey said she needed to vacate her lease and would consider closing by March 31 unless they worked together to save the studio. "This year, arts sales are nonexistent." Storey said. "Art is a luxury. People don't buy art in an economic downturn." Now, Storey, the city and the Savage Arts Council are devising a way to keep the studio open by having the nonprofit arts council take over the space."Our charter is to enhance art within the community. We do have an arts studio that is providing service to the community. We feel like it would be beneficial if we could keep it there," said the arts council's acting chairman, Lee Watson.

The arts council, formed in 2006, sponsors a variety of events, including the Scott County Art Crawl and an annual juried art show.

At a work session on Monday, the Savage City Council directed city staff to begin work on a lease agreement with the council. The council also told staff members to work with Storey to keep the studio open during the transition.

"We started something that has been beneficial. How do we continue that?" asked Savage Mayor Janet Williams.

Having a nonprofit take over would eliminate the $13,000 annual property tax burden. Also, the nonprofit would be eligible for more grants.

"It needs to be more community ownership," Storey told the council.

While council members seemed keen on keeping an arts studio downtown, they balked at the notion of offering up additional long-term financial assistance, even if the nonprofit were to take control.

"We are already giving them a break for rent," said Council Member Gene Abbott.

The city charges the studio $6 a square foot, compared to the $10 and $11.50 the other tenants in the building pay, according to city documents. In exchange for the aid from the city, the studio offers classes through Savage Parks and Rec.

Storey and a group of artists looking for studio space opened the studio in 2006.

"We were part of their economic plan to try and attract arts to their downtown. They had the space and we had the need," Storey said.

The business brings in revenue by renting studio space to artists, offering art classes, framing artwork and selling art at a 25 percent commission, she said.

Last year, Storey said, the studio brought in $92,000 in revenue but still lost $10,000.

Storey said she has two part-time employees and has foregone her own salary to try to keep the business afloat. With her son starting college, Storey said she couldn't justify taking from her family's finances to keep the studios open.

"I feel sad this is in jeopardy," Storey said. "I realize this needs a long-term solution."

Shannon Prather is a Roseville freelance writer.