More money is on its way to the Elora Centre for the Arts.
On Jan. 29, Centre Wellington council approved a request for revisions to the centre’s interest-free loan agreement.
In March 2015, council approved an interest-free loan agreement with the Elora Centre for the Arts in the amount of $50,000 to be repaid over a five-year term starting on Oct. 1, 2016 and annually thereafter, with the final payment on March 1, 2020.
In his report to council, CAO Andy Goldie said, “As council is aware we have a five-year $50,000 interest-free loan with the Elora Centre for the Arts (ECFTA). They have made one payment in October 2016.”
The loan outstanding is $40,000, Goldie said.
“We have been working with ECFTA representatives since October 2017. They’ve come into some challenging situations financially – including the boiler, which blew up last fall,” Goldie said.
As such, the second loan payment of $10,000 in October 2017 was not made to the township.
“We’ve been working with them to deal with their short-term financial situation, and to move to a more sustainable operation.”
Goldie said the resolution before council was to work with the group to execute a new interest-free loan agreement with the ECFTA which would extend the term to 10 years and top up the amount of the loan to $50,000.
Loan payments would begin in 2019.
Goldie said if the centre defaults, the township would have the building as an asset and payment would be secured through the property value.
Goldie’s report notes, “The ECFTA is very appreciative of the township’s assistance with the interest-free loan and has advised they have made substantial changes to the centre’s operation and financial plan to ensure its long-term sustainability. They also recognize that their work is not complete.”
Goldie wrote, “Staff recognizes the ECFTA is a unique centre in Centre Wellington and provides many programs and opportunities for arts and culture for our residents, businesses, and visitors and is supportive of discharging the current interest-free loan agreement and developing a new agreement in the amount of $50,000 for a term of 10 years.”
Currently, Centre Wellington has no other interest-free loans with any group or organization.
ECFTA board member Matt Ladner spoke of efforts to make the centre more sustainable.
“It will come as no surprise to anyone here that the centre continues to grapple with its finances,” he said. “To be candid, I know very little about art.”
He stated when the centre was for sale not quite two years ago he chose to get involved, “not because I am an artist, but to me it is clear that art and culture is integral to Elora and also Centre Wellington.”
Ladner thanked council for its support, noting, “What we’ve had is a 15-year track record of slowly bleeding.”
Ladner said the centre has created a new strategic plan.
“We’ve taken good strides in our first part year … and (were) very close to breaking even,” he said.
He added much effort was made last year to repair the boiler system at the centre.
“We did a lot of work based on advice from experts and professionals … but when we went to flick the switch last October when it came time for the heat, the boiler promptly died and we were left facing some very hard decisions … whether to close the centre or to jump back in and move forward,” Ladner said.
He noted the ECFTA has also worked to consolidate its debt.
Councillor Kirk McElwain said he understood the centre was close to raising $20,000 towards the boiler replacement.
Ladner said, “the community has really responded … when there is a direct ask regarding a specific crisis, it is a bit easier than generic fundraising.”
Councillor Steven VanLeeuwen said Centre Wellington wants the ECFTA to remain a part of the community, but the extension of the loan reaches beyond the current policy, which limits loans to five years.
Ladner said, “anything which helps us with the cash flow at this time is critical.”
Councillor Fred Morris asked if it would be beneficial to have monthly rather than annual lump sum payments.
Ladner preferred the concept of monthly payments, noting lump sums are “very difficult for an operation such as the arts centre.”
Councillor Stephen Kitras wondered if the centre might be able to provide monthly updates with payments.
Ladner said, “We’re more than happy to share financial statements each month.”
Goldie clarified the change would not affect the policy as a whole.
“This would be a one-off situation for the ECFTA,” he said.
Council agreed to the loan top-up to $50,000 and extending the repayment period to 10 years.
