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Kincardine council has agreed to forgive a $122,500 loan to
the Friends of the Pavilion, as well as hand over another loan
of $350,000 to help the group pay off its debts.
In committee-of-the-whole Wednesday night (Feb. 18), Barb Fisher
of the Friends of the Pavilion outlined the deficit situation
but emphasized that the group has been successful in obtaining
government grants, and the dance hall pavilion, located by the
lakeshore on Durham Street in Ward 1, is now operational and
licensed.
She said $486,400 has been raised through provincial funding,
plus money for paid staff. The first event, held as a
fund-raiser for the pavilion, was the bridal show last April,
following the final inspection and issuance of the licence for
occupancy. The group also received $15,000 from the Kincardine
Reunion proceeds, she said, which was greatly appreciated and
was used to help furnish the building.
"The volunteer board of directors, comprised of seven members
and a new one joining next month, has been extremely busy with
the preparation and implementation of operating agreements and
practices," said Fisher. "The schedule of events grows monthly
with more regular events being contracted."
The pavilion was open last summer and 15 weddings were held
there. "This year, we have 25 weddings booked, Fridays and
Saturdays from April to October, plus other events," she said.
"And we have four weddings already booked for 2010."
Monthly dances have been held, with some more successful than
others, said Fisher. "May 2nd, we are holding a special
fund-raiser, with all the food, wine and service being donated,
and the Lighthouse Band performing (as a donation). Tickets are
$100 each, with a tax receipt; and 200 tickets are being
printed. We expect a net profit of $20,000 from this event."
She said the Friends have approval for a position being filled
through the Job Creation Project, allowing for one individual
who will be responsible for building a year-round schedule,
assisting in developing more fund-raising events for the
pavilion, and volunteer recruitment.
To date, the municipality has given two loans to the Friends of
the Pavilion - for a total of $125,000, said Fisher. Repayment
of $10,000 was due in the fall, but only $2,500 was repaid,
leaving an outstanding amount of $122,500. Fisher asked that the
municipality forgive that loan, and assist the group in putting
in place a debenture or loan for $350,000 to help pay off all
accounts payable against the building.
"We demonstrate in the annual projects and five-year forecast
our ability to meet the debt repayment over a 10-year period,
assuming an interest rate of eight per cent," she said. "This
would allow us to pay off our full accounts payables list, and
pay for the necessary capital items over the next three years
with cash flow. We need you to finance it and let us do the
work." (next column)
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She stressed that it's a municipal building and through
the hard work of the volunteer group, the structure has risen from a
tear-down expense of $30,000 to a valuable asset worth $1.2 million.
The main capital project this year, said Fisher, is installing
air-conditioning, at a cost of about $22,000. The group would also like
to build an outside patio.
Fisher pointed to generous donations from a number of
local business owners, including Ken Zurbrigg, John Matheson, Ken
Jackson, Alf Rackley and Ken Petrie. And she mentioned several
businesses that have helped out by relieving the interest on outstanding
bills - these include C&M Concrete, Cliff's Plumbing & Heating, Georgian
Bay Fire & Safety, IF Construction, McNeil Engineering, Mel McConnell,
Tim-Br Mart, and Westburne Ruddy Electric.
The majority of council had no problem with writing off the $122,500
since the pavilion is a municipal building. However, there were some
concerns about how to set up the additional loan of $350,000.
"I would prefer to see the extra money as a debenture," said councillor
Guy Anderson. "This whole issue with the pavilion has been agony. It's
been a little more than distressing all the way along for us and for
them (Friends). It has to be finished, but I'm not happy with the way
things were done."
Treasurer Brenda French explained that if the municipality goes with a
debenture, it should work through a large institution and a broker,
rather than sell to the public. "People are used to GICs," she said.
"Many people can't commit for 10 years. I caution against going that
route. Go with a large institution or do it through an existing reserve
account."
Councillor Kenneth Craig agreed with forgiving the $122,500, but
suggested council get a recommendation from treasury for the remaining
amount.
Deputy mayor Laura Haight said the municipality now has an asset (the
pavilion) which is worth more than anything the Friends of the Pavilion
owe to the municipality. "They have worked hard," she said. "But before
we move ahead with a debenture, I want to know what impacts there are
from different options."
"We need to work out whatever is best for the municipality and for the
Friends of the Pavilion," said councillor Mike Leggett. "Do whatever it
takes so they don't have to come back to council again." French said
treasury is very busy with the budget right now so this issue will not
come forward for awhile.
"Do we have the support of council?" asked Fisher.
"You have cautious approval," said Haight.
Committee-of-the-whole agreed, in principle, with the financing of the
pavilion project. Official approval will come forward at the next
council meeting March 4.
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