Centre Wellington has agreed to a $50,000 interest-free loan for the Elora Centre for the Arts.
The recommendation to approve the loan came after a deferral of the issue last month.
On April 9, councillors here heard a presentation by Elora Centre for the Arts co-chair Robbie Keith who outlined the group’s plans for the future.
Prior to the presentation councillor Kirk McElwain declared a conflict of interest because of his involvement with the group and left the table for the discussion.
The loan would essentially provide bridge financing for staff to carry out various programs and fundraising events, plus provide for office staff.
An email received by the township from the ECFTA on April 2 states the centre is in early negotiations with “arts-friendly landlords” and a business plan would evolve once the group is able to identify those partners.
Following a strategic planning exercise last year, the decision was made to bring in more experienced staff capable of fundraising and running a charitable arts organization.
“We had a sense of what needed to change and that’s what we’ve been working on,” Keith said.
The submission focussed on how a “rejuvenated” centre would create “a vibrant and sustainable organization that enhances and grows the creative and artistic character of [the] community.”
He said serious consideration has been given to separating the property from the arts programming.
“Those are two different spheres of interest.”
He said “in the longer term we envision arts and arts programming throughout the community in ways we think would enhance the community of Elora as a genuine destination for artists as well as the public who appreciate the arts.”
He said the group is working to leverage its assets.
“We need to think more imaginatively about revenue generating activities.”
Keith said the group has talked with developers, planners, builders, township staff, granting agencies, other arts centres and galleries.
“And we are speaking with real estate firms as well to bring the best opportunities for the centre going ahead.”
He said the Canadian Revenue Agency audits brought a number of issues to light – including questions about the organization’s status as a charitable organization.
Keith added work is being done to find more occupants for the building.
However, renting the building to other groups is one of the things which has put the charitable status into question.
He said they found too much money was going to money and staff rather than programming.
Council voiced concerns that it appeared the township was the first avenue to seek a loan or funding rather than as the last.
Councillor Steven VanLeeuwen agreed there is value in the land itself but was curious what other steps could have been taken instead.
Keith said other organizations approached sought significant interest on a loan while the township could offer one interest free.
“Quite frankly there is a financial advantage to this.”
As he did in discussion last month, councillor Steve Kitras asked if the centre had a business plan in place.
“We’re not at that stage yet,” Keith responded.
He said the organization is in the process of developing a cash flow process in order to create a 12-month projection.
Mayor Kelly Linton said one of the challenges for him is that he would like to see a more concrete view of the arts centre vision and that it was going to be financially stable.
He agreed the centre met the criteria for the loan however council needs to look at whether this taxpayer money will help make the centre financially viable into the future.
VanLeeuwen said everyone wants to see the centre continue, but “we’re being to act like a bank but with a conscience or with emotion attached.”
He asked what the $50,000 would accomplish.
“Is this going to be enough.”
Keith said “Alone no. But with the other activities planned such as Art in the Yard,” he believed it would get the centre through the season to move forward.
Kitras said there seemed to be a lot of generalized “good feelings” but no numbers.
Keith suggested this year’s budget of $240,000 – almost 25% of which goes to the building itself.
He added the organization is actively pursuing buyers for the building.
“We are pursuing this with some vigour.”
In the end, after much discussion council agreed to endorse the loan.
