Funding for the new Strathcona Performing Arts Centre in Bonnyville is up in the air as construction to build the theatre continues.
Bonnyville Council received a presentation from the Clayton Bellamy Foundation on a funding request.
Clayton Bellamy and Lise Fielding were presenting on behalf of the theatre as construction to make it a viable theatre continues.
“To request support for a bridge loan for financing to finish the project. Currently we are sitting at three-quarters done the theatre. The seats and the staging, and the lights and sound are all that’s left. And the signage are all that’s left,” said Bellamy.
The theatre already has their first concert booked and tickets are on sale.
“We already have our first concert booked March 21, local boy Mike Plume who is going to be performing. We are in the midst of booking out our 2025/26 seasons,” said Bellamy.
Bellamy says construction is nearing completion and it’s looking like a theatre now.
The delegation gave some background on the funding request before council sat to make a decision on the item.
The foundation has been in the process of negotiating with Lakeland Credit Union with respect to the terms of the loan as they are $1.1 million short on the project. The loan term is for 12 months with an interest rate of prime plus zero per cent.
A security of $300,000 has been provided by the Northern Lights School Division. They’ve also applied for the Community Facility Enhancement Program (CFEP) for $500,000. The plan also includes $400,000 from sponsorships and $200,000 from the fundraising gala in 2025.
“We also had several, three sponsors that are in the wings right now, also waiting. Everyone has a toe in the water waiting for confirmation of the completion of the project before they confirm they’re going to give us money,” said Bellamy.
Without any additional funding from CFEP, or the sponsorships they would be just over $800,000 short to repay the loan.
“Again, that’s not counting sponsors or CFEP at the point where we’re at right now, we don’t have either of those answers. We also need to provide funding for the completion of the project. Without it we’re going to be dead in the water,” said Bellamy.
If they are unable to fund the remainder of the project it would leave them without a finished theatre or a having to rebid the project to finish.
Fielding says if it is not paid off after a year the credit union is willing to revisit. She also gave a breakdown of the money the gala’s have been raising.
“We do have a plan for repayment, because this would be, the credit union is prepared to do this if you guys are willing to secure that loan and back us on that interim loan. We are hoping to get that $500,000 from CFEP. Barring that, we are making approximately $200,000 per gala and that you can be assured will go directly towards this repayment. We have $400,000 that we are earmarking for sponsorship opportunities,” said Fielding.
She says there are three sponsorship opportunities available now.
“There are three main sponsorship opportunities. We are also going to be starting a campaign for friends of the theatre that will go in conjunction with the gala table sales. We’re just trying to figure out an effective way to garner both without causing people to back out,” said Fielding.
If the CFEP grant were to be unsuccessful the foundation would take longer to repay the loan and would be using future money from the fundraising gala.
“Between all three things we would be able to pay that back within a year. If we don’t get CFEP then that might take a couple more years to get that gala money over to you, that’s a worst-case scenario,” said Fielding.
They’d also work with the credit union to review the terms of the loan should the Town of Bonnyville guarantee it.
In the letter addressed to council, there are currently 15 theatre performances booked for 2025 and 2026 with multiple school bookings rounding out the first year.
The ask for the loan is up to $800,000 so council could decide to give less than the full amount.
Bellamy says they have met with Tanya Fir, minister of arts, culture and status of women and who has toured the facility and shown her support. Her staff were also helping with the grant application.
He says there’s been developments over the last month as groups tour the facility.
“We’ve also been meeting with our francophone partners in the community talking about bilingual signage and sponsorship money there as well as Travel Alberta,” said Bellamy.
“We’ve been very busy, and are very committed to bringing this across the finish line.”
According to Fielding, they’ve been working on this project for five years and they’re committed to seeing it through.
For the future, Bellamy and Fielding will be managing the theatre until they can afford to hire other managers. The foundation is anticipating they will make roughly $6,000 per show and $2,000 average rental income at one per month.
Coun. Byron Johnson expressed his worry about the position this loan could put the city in.
“With it being in the school, and if that comes back on us and we’re responsible for the payment of that loan. It’s in a separate building that doesn’t belong to the town, it belongs to the school division. A lot of that construction work, it’s not really stuff that you can recoup from. It’s more like, we have to be careful with this,” he said. “I have no doubt you’re persevering with it, that’s just the part that I’m struggling with.”
Previously the Clayton Bellamy Foundation had made a request for funding to the Municipal District of Bonnyville but were declined as it’s an unsecured loan.
Administration clarified the loan guarantee bylaw would take some time to pass as it would need to be advertised so they are looking at potentially March to get it through if they go that route.
It was also clarified the town’s current borrowing capacity or unused debt limit is $28,241,000.
Mayor Elisa Brosseau said she needs more information to make an informed decision on this item.
“I think for me I need more information on what this looks like, even in the information we’re provided here the question earlier from Councillor (Kayla) Blanchette, what even is our debt servicing limit. What would be those monthly payments, for me I would need to see that full picture,” she said. “It’s hard when it’s just, we don’t have anything on paper from the presenters. I appreciate their financial information they’ve provided. But, what are the terms of the loan exactly? That’s what I would need to see to even entertain making a decision.”
The Clayton Bellamy Foundation request was moved into in-camera under legal to discuss some of the wording of the loan.
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