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REPORT: <br />The KW Gymnastics Club approached the City of Kitchener with a request for an interest free <br />loan to assist them with covering the upfront costs of the installation of an air conditioning <br />system. The Club has provided project quotes identifying costs ranging from $110,000 to <br />$150,000. <br />The KW Gymnastics Club currently has $75,000 they can draw from their reserve account to <br />contribute to the air conditioning system and is requesting an interest free loan from the City of <br />Kitchener ranging from $35,000 to $75,000. The final loan amount will be confirmed once the <br />quotes are finalized. The Club is committed to paying back the loan within four (4) years, making <br />monthly payments equalling a repayment to the City of $17,000 to $20,000 annually. To date <br />the Club has collaborated with and provided all the necessary financial information requested <br />them in making the which they annually contribute to the City in the upcoming years <br />Staff from Sport Development, Facilities Management and Financial Planning have reviewed <br />and are supportive of this request. <br />ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: <br />The recommendation of this report supports the achievement of the <br />through the delivery of core service. <br />FINANCIAL IMPLICATIONS: <br />Facilities Management(FM)has a capital account assigned to the Twin City Gymnastics/Judo <br />Training Centre to manage the capital projects the City is responsible for. This capital account <br />receives funding of approximately $25,000 per year and currently has a balance of $40,000. <br />Staff propose loaning the KW Gymnastics Club their requested amount from the FM capital <br />account. Any deficit created by the loan or by required City spending on its capital costs related <br />to the building would be short-lived and would be funded by planned annual funding identified in <br />the capital forecast and by loan repayments from the KW Gymnastics Club. <br />COMMUNITY ENGAGEMENT: <br />INFORM This <br />committee meeting. <br />ACKNOWLEDGED BY: Michael May, GM/DCAO, Community Services <br />4 - 2 <br />