HomeMy WebLinkAboutCSD-11-030 - Contemporary Art Forum Kitchener & Area - Ontario Cultural Attractions Loan GuaranteeREPORT TO:Community & Infrastructure Services Committee
DATE OF MEETING:
February 7, 2011
SUBMITTED BY:
Keith Baulk, Director of Enterprise, 2393
PREPARED BY:
Jeff Young, Manager of Special Events, 2388
WARD(S) INVOLVED:
All
DATE OF REPORT:
February 1, 2011
REPORT NO.: CSD-11-030
SUBJECT: CONTEMPORARY ART FORUM: KITCHENER AND AREA
– 2011 ONTARIO CULTURAL ATTRACTIONS LOAN
GUARANTEE
RECOMMENDATION:
That the Mayor and Clerk be authorized to execute a Guarantor Agreement with Ontario
Cultural Attractions Fund (‘OCAF’), wherein the City will act as guarantor with respect to
the $24,000 repayable portion of the Ontario Cultural Attractions Fund loan to CAFKA
(Contemporary Art Forum: Kitchener and Area) for the purpose of CAFKA operating the
Three Festivals Project in 2011; said Guarantor Agreement to be to the satisfaction of the
City Solicitor; and further,
That the Mayor and Clerk be authorized to execute an amendment to the City’s Tier 1
Agreement with CAFKA to address the City’s guarantee until such time as the guarantee
is no longer required, said amendment to be to the satisfaction of the City Solicitor.
BACKGROUND:
CAFKA applied for and received a grant and loan from the Ontario Cultural Attraction Fund
(OCAF) for the 2011 Three Festivals Project. The grant approved was $80,000 with a fixed
repayment of 30% or $24,000. The three festivals of contemporary arts are: CAFKA, Open
Ears, and Impact.
REPORT:
CAFKA started in 1996 as a city-run annual visual arts festival held in downtown Kitchener. It
evolved into a larger biennial event with a theme relating to the history or current
preoccupations of the region. Participants of the festivals include artists from across Canada
and around the world. Previous events included 26 installations, performances, projections and
exhibitions involving collaborations with Homer Watson House and Gallery, The Tannery, City of
Kitchener, Wilfrid Laurier University and many other organizations.
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OCAF has indicated that the approval of the $80,000 grant and loan is conditional upon CAFKA
providing a guarantee or a guarantor for the repayment amount of $24,000. Staff are
recommending that the city act as the guarantor and believe that providing this guarantee is a
low risk since the annual Tier 1 grant CAFKA receives could be used as collateral. The City’s
Tier 1 agreement with CAFKA will be amended to acknowledge that, should the City have to
pay OCAF the $24,000, then the City will reduce any future grants to CAFKA by the same
amount until the debt is paid in full.
Council has approved a similar loan guarantee for the Kitchener Blues Community Inc. in May
2010, Report No. CSD-10-034, for $20,000. The Kitchener Blues Community Inc. has repaid
the loan to OCAF.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The festivals held by CAFKA align with Community Priority for Quality of Life and Dynamic
Downtown. Section 3 of Quality of Life states “that the city highlights arts and culture as a factor
critical to the health of the community through supporting goals and objectives of Culture Plan
II”. Section 4 of Dynamic Downtown indicates that “the city supports the goals and objectives in
Culture Plan II and, in so doing, fosters vitality in the core”.
Culture Plan II (CP II) was approved by Council in 2005 and includes 61 recommendations. CP
II recommends maintaining or improving existing city programs, increasing city resources for
cultural development and planning, supporting and monitoring the economic impacts of the arts
and benefits of cultural planning, etc.
FINANCIAL IMPLICATIONS:
There is no financial impact as CAFKA’s 2012 Tier 1 grant, estimated at $33,122 subject to final
budget approval, can be used as collateral in the event CAFKA does not fulfill the obligation to
repay the $24,000 loan amount to OCAF.
COMMUNITY ENGAGEMENT:
Not applicable.
ACKNOWLEDGED BY: Jeff Willmer, Deputy CAO
Community Services Department
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