The future of the Strathcona Performing Arts Centre is looking a little brighter as Bonnyville council has given first reading to a loan bylaw.
At the Jan. 28 council meeting, the Clayton Bellamy Foundation for the Arts came as a delegation to guarantee a loan to complete the theatre. The remaining amount to complete the performing arts centre is $1.1 million. The foundation already has a $300,000 loan from the Northern Lights School Division, leaving them $800,000 short.
The foundation requested the remaining shortfall from the Town of Bonnyville, where they discussed the matter.
Since the Jan. 28 meeting, administration has worked to create a bylaw and presented it at the Feb. 11 meeting.
The bylaw states the amount of money to be loaned is up to $800,000 for the purpose of completing the theatre. The term of the loan is three years with five per cent yearly interest.
Coun. Byron Johnson suggested a longer term for the loan.
“I’d like to give them every opportunity for success and maybe move it to four years so they would have three years just in case,” he said.
Johnson also outlined the importance of this project and getting another theatre stage, as Bonnyville has produced a lot of talent from the area, speaking in favour of the bylaw.
Coun. Kayla Blanchette raised some concerns regarding the loan agreement.
“What I didn’t see in the loan agreement was any sort of security on this loan,” she said.
Administration clarified any improvements in the performing arts centre would be under the lease agreement with Bonnyville Centralized High School, as they hold the assets.
It was also noted the Clayton Bellamy Foundation for the Arts was not willing to provide a personal guarantee for the loan. A guarantee is something Coun. David Sharun would like to see, even if it was just a small amount of the overall loan.
He spoke in favour of the project and its impact to the community.
“This is a project we need in our community. It’s so important. I’ve been involved in theatre and the fine arts since I was in high school, to have something like this in our community is a bonus,” said Sharun.
He did have questions regarding the loan default process in the bylaw.
“If they do go into default, what happens then? I couldn’t really see or it’s not clear in there what the next steps would be,” said Sharun.
According to administration, if the loan is defaulted, the next steps would be legal proceedings.
Coun. Neil Langridge acknowledged the work the foundation’s been doing.
“The foundation has done a good job surrounding themselves with business-minded people. Its been a change seeing some of our community leaders on their board helping them try to get to the finish line on this,” he said.
Mayor Elisa Brosseau says the risk in this loan is worth it.
“I do believe this is good risk for the betterment of the community,” she said.
An amendment was made to make the loan to the foundation four years as opposed to three.
Administration will now advertise the bylaw and bring it back to a future council meeting for second and third reading.
Read more: Theatre in Bonnyville nears completion
