HomeMy WebLinkAboutCSD-08-016 - Waterloo Regional Boxing Academy Loan Request Through Community Loan Program1
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Community Services
REPORT
Report To: Community Services Committee
Date of Meeting: March 3, 2008
Submitted By: Keith Baulk, Director, Enterprise Division, 2393
Prepared By: Keith Baulk, Director, Enterprise Division, 2393
Ward(s) Involved: all
Date of Report: February 11, 2008
Report No.: CSD-08-016
Subject: WATERLOO REGIONAL BOXING ACADEMY LOAN
REQUEST THROUGH COMMUNITY LOAN PROGRAM
RECOMMENDATION:
That subject to the satisfaction of the City Solicitor, a loan agreement be executed for
$75,000 to the Waterloo Regional Boxing Academy (WRBA} through the Community Loan
Program as outlined in CSD Report #08-016, and;
That WRBA use the funds to purchase weight machines and cardio equipment for the
new Activa Sportsplex, and;
That Council waive the city ownership provision in the Community Loan Program Policy
for this request to allow the WRBA to maintain ownership of the equipment.
BACKGROUND:
The WRBA and the Kitchener Minor Hockey Association are the two tenants of the new Activa
Group Sportsplex. The tenants of the Sportsplex are required to outfit their respective leased
areas within the facility. In the case of the WRBA, there are significant costs associated with the
purchase of weight and cardio equipment, heavy bags, a boxing ring, furnishings and youth
lounge computers. The WRBA is seeking $75,000 from the Community Loan Program to offset
the initial capital cost of the weight machines and cardio equipment.
The Kitchener Ranger Hockey Club has committed a $75,000 grant to the WRBA to assist in
outfitting the Boxing component of the facility. The grant is payable at $15,000 per year over 5
years.
REPORT:
The Kitchener Ranger Hockey Club committed $75,000 in pledges over a 5 year period to assist
the WRBA to purchase weight machines and cardio equipment for the new Activa Group
Sportsplex. Two floor plans showing the proposed layouts of each level of the boxing facility are
attached as Appendix 1 and 2. The equipment layout plan is also incorporated.
CSD-08-016 - 2 -
In order to purchase the equipment in time for the projected facility opening later this summer,
the WRBA is looking for a loan from the Community Loan Program using the Ranger
commitment as loan collateral. The agreement with the boxing club would be contingent on the
City receiving a formal loan guarantee from the Kitchener Rangers by having them become a
third party to the agreement.
WRBA is the City's recognized affiliated organization for the provision of boxing programming
for the youth of our community. It is also anot- for-profit incorporated organization so on both
these accounts it fits the organizational requirements of the Community Loan program.
However, the Community Loan Program Policy states that capital improvements funded under
this program must be retained in city ownership. In this case it is in the City's best interest that
the WRBA retain ownership of the machines and equipment. As a result they will be responsible
for maintaining, repairing and eventually replacing the equipment rather than the City.
This is a great example of community organizations working together to ensure there is
amenities for youth programs. The machines and equipment will be utilized by other sports
users making it accessible to a broad range of citizens in the community. In spite of the
ownership issue, staff feel the spirit of the Community Loan Program is well served by the
request of the WRBA.
FINANCIAL IMPLICATIONS:
There is a balance of $718,000 in the Community Loan Fund. The $75,000 loan would be
repayable at $15,000 per year over 5 years. The Kitchener Rangers Hockey Club have
committed funding over 5 years to support the Boxing Club request. The Kitchener Ranger
Hockey Club record is excellent when it comes to delivering on funding commitments and
meeting loan requirements.
CONCLUSION:
The Waterloo Regional Boxing Academy have developed an excellent financing partnership
with the Kitchener Ranger Hockey Club to support the purchase of weight machines and cardio
equipment for the new Activa Group Sportsplex. The financing commitment is over 5 years, so
funding from the Community Loan Program would support the purchase of the equipment in
time for the facility opening later this summer.
Keith Baulk
Director Enterprise Division, Community Services