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HomeMy WebLinkAboutFCS-13-054 - Community Assistance Loan Application - Kitchener-Waterloo Art Gallery REPORT TO: Finance & Corporate Services Committee DATE OF MEETING: April 22, 2013 SUBMITTED BY: Dan Chapman, Deputy CAO, Finance & Corporate Services PREPARED BY: Dan Chapman WARD(S) INVOLVED: 1 DATE OF REPORT: April 15, 2013 REPORT NO.: FCS-13-054 SUBJECT: Community Assistance Loan Application -KWAG RECOMMENDATION: THAT a Community Assistance Loan be provided to the Kitchener-Waterloo Art Gallery (KWAG) to support the completion of the Community Access Space project, said loan to be in the amount of $15,000 for a three year term, with fixed annual repayments of $5,000 per year commencing in 2014; AND FURTHER THAT the Mayor and Clerk be authorized to execute a loan agreement satisfactory to the City Solicitor. BACKGROUND: The City of Kitchener implemented a Community Assistance Loan Fund in 1997 to provide interim financing to community organizations for the purpose of donating equipment and facilities to the City of Kitchener. The City has received a request from KWAG for a $15,000 community assistance loan to support the timely completion of their Community Access Space project and staff are recommending that Council approve the request. REPORT: report and outlines how a loan for the Community Access Space is attached as the second appendix. Staff is satisfied that the application meets the general intent of the policy. The only area where the application may require a more liberal interpretation of the policy is with respect to clause -time capital/infrastructure purposes, i.e., equipment and facilities, which are donated to the City [emWhile the community access space will not be turned over to the City of Kitchener, KWAG is a tenant of Centre in the Square, which is in turn controlled by the City of Kitchener. As such, the improvements will be made to a facility that is under the C intention of being available for community use.This donation requirement was relaxed on a prior occasion when the weight training equipment at Activa Sportsplex was purchased by, to be owned by, the Waterloo Regional Boxing Academy. In that case, a formal exception to the policy formed part of the Council resolution although that is not likely required in this case. 4 - 1 ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Providing a community assista aligns with do; FINANCIAL IMPLICATIONS: The balance in the Community Assistance Loan Fund is $805,799, meaning there are sufficient funds available to advance a $15,000 loan. There is a high degree of confidence that the loan will be repaid according to the terms of the agreement based on the commitment of a corporate agreement with KWAG will provide a right to offset other grant payments against the loan balance in arrears. COMMUNITY ENGAGEMENT: n/a ACKNOWLEDGED BY: Dan Chapman, Deputy CAO, Finance & Corporate Services 4 - 2 4 - 3 4 - 4 4 - 5 4 - 6 4 - 7 4 - 8 4 - 9 4 - 10 4 - 11 4 - 12 4 - 13 4 - 14 4 - 15 4 - 16 4 - 17 4 - 18 4 - 19 4 - 20 4 - 21 4 - 22