It can mean two different things.

(A) ----
A creativity centre for children, students or general public.
It often offers not just art classes, but also technical hobbies (building of aeroplane models, chess, some types of sports...).
You can call it a "creativity centre", "centre of creativity", perhaps also "creative centre".
Or even like this: "[The] Centre for Creative Youth" (http://www.wesleyan.edu/CCY/home.html).

"Youth centre" is another valid and popular name, but that strays away from the original Lithuanian wording and meaning, so "creativity centre" is more precise.

Examples:
"Marijampolės moksleivių kūrybos centras, Gamtos skyrius" (i.e., naturalist section),
"vaikų ir jaunimo kūrybos centras", etc.

(B) ----
A retreat home for artists, writers or composers.
It is often called an "artists residence (residency)" in English.

I think "residence" would be preferable to denote the facilty/institution/building, to counter the synonymity of "residence" and "residency".
MW says that "residency [is] a *period* as an artist in residence"
(http://www.m-w.com/cgi-bin/dictionary?book=Dictionary&va=res...
and Wikipedia entry says that residency is a 'programme' -
http://en.wikipedia.org/wiki/Artist_residency .

Examples:
- "Lietuvos kompozitorių sąjunga, Druskininkų kūrybos namai"
- http://www.europosparkas.lt/English/residency.html
- http://www.bookcouncil.org.nz/events/awards/randellcottage.h...
("[..] Writers' Residency")
- http://www.bloesemhuis.com/home.htm
("Bloesem Huis : Artists Residence and Studios" - the webpage title).

Also see http://www.neilsonparkcreativecentre.com/ .