Loan to come from Town to finish Strathcona Resources Theatre, public hearing required

Instead of guaranteeing $800,000 in a loan from Lakeland Credit Union, the Town of Bonnyville has approached the issue from a different angle, drafting a bylaw that would loan the cash themselves.

Images: Brent Mattice. A recent look at the new theatre with the improvements made to the seating areas. 

A public hearing will be held as Town council passed first reading of a loan guarantee bylaw, to help the Clayton Bellamy Foundation for the Arts get the needed cash flow to finish the theatre project. 

The Town of Bonnyville heard the delegation from the foundation on Jan. 28, sharing their current financial status to complete the Strathcona Resources Performing Arts Centre, and their ask of guaranteeing a $800,000 loan from Lakeland Credit Union. 

At Tuesday night’s meeting, Councillor Byron Johnson made an impassioned speech to his fellow councillors, driving home how important the former Lyle Victor Albert Centre was to the community, and how this project carries that spirit forward. 

“We have Mike Plume, Ernie Basiliadis, who was in the band with him since high school, Clayton Bellamy, Brett Kissel, all shared that stage. Local guys, Juno winners, nominees, all of that. They were inspired by that stage, and they proudly carried they were from the Lakeland. They’re from Bonnyville,” Johnson said. 

“For the youth that got to use that stage, myself included, it gave you the confidence to get up there in front of people and for public speaking.

“All of that is not measurable in dollars. It is measurable in the confidence in what people have given back to our communities, which a lot of these people are very familiar names, so I’m in support of this.” 

Loan idea

Council returned Tuesday night with a different idea than the one asked – they would loan the money themselves. 

The timelines are ticking, and with no formal answer yet to their provincial grant (CFEP for $500,000) the Bellamy Foundation has gone back to the municipalities to push it over the line.  

The question is about the unsecured aspect of the loan agreement, which could leave the Town at risk. Due to the Bellamy Foundation’s lease agreements with Northern Lights Public Schools, who are also providing $300,000, there is no security.

“We did ask if they would be willing to do a personal guarantee on the loan,” said acting CAO Renee Stoyles.

“The response back was that, due to the time commitment that they put into the project already, the board members, as well as some of the financial implications that they’ve had on their personal finances, because of those time commitments, they were unwilling at this time to provide a personal guarantee.”

Councillor Neil Langridge was in favour of passing first reading, adding that by the time the public hearing would be held (two weeks later), they could have an answer on the CFEP grant, which would make the loan in effect only $300,000.

“The finish line is so close. And my thought process on this is, I do believe that the foundation has done a good job of surrounding themselves with some business minded people,” he said.

“Seeing some of our community leaders that are now on their board, that are helping them try to get to the finish line on this, as well. I know there’s a large risk as far as the unsecured nature of the loan, but I think, my opinion, I’d like to see us pass first reading, and by the time second reading would be coming about, we would know the nature of that CFEP loan.”

The language reads that the authorized loan is to be repayable to the Town of Bonnyville in monthly installments of interest, the annual interest rate not to exceed five percent (5.00%).

The Clayton Bellamy Foundation for the Arts may repay all or part of the loan prior to the expiry of the term, and the balance outstanding is due upon the expiry of the term.

The next regular meeting is Tuesday, Feb. 25.