The Daily News

Three Rivers Arts Council (TRAC) has requested the Wahpeton Economic Development Corporation forgive the $39,000, zero-interest loan the organization took out in late 2009 to begin the restoration of a 1914 bank into a potential non-profit art gallery. The loan would become a grant, which wouldn't have to be repaid.

According to Jane Priebe, economic development director, it is not unusual for a struggling non-profit to request having a loan from the city become a grant.

"I'm not in favor of, at any time, forgiving the loan," said EDC committee member Meryl Hansey.

Advertisement

Other local non-profits, such as the Head of the Read Youth Activities Association, have successfully converted loans from the city into publicly-funded grants in the past. A reason non-profits pursue city loans instead of EDC grants first is because the process is often faster and goes through the city office rather than a public process.

Other options available to TRAC include gifting the art gallery to the city, which would then be managed by the park board, at which point the loan would be forgiven. Or, TRAC could get a 10, 20 or 30 year extension on the loan.

The first payment of the loan was due to the city July 1. Unable to meet the required $3,900 amount, TRAC president Bob Splichal got a two year extension on the loan, to July 2012.

Members of the Finance and Personnel Committee argued against granting TRAC's request at their Thursday afternoon meeting.

Hansey suggested TRAC exploit the 30 year, zero-interest loan to "get on their feet."

"I don't think enough has been done yet... I'm not sure of the urgency," said alderwoman Alisa Mitskog.

Mitskog, who is organizing TRAC's fall gallery fundraiser, argued that revising the conditions of the loan would set an unwise precedent for all local non-profits.

She suggested that TRAC should exhaust all possible fundraising options before taking this request to the EDC. She also advocated providing flexible payment options on the city's part.

Committee member Renelle Bertsch, who is on the arts council board, agreed, saying, "I think Alisa's suggestion to see what the fundraiser brings is a good idea."

The committee tabled the issue having reached a consensus that TRAC should try to clear the debt through fundraisers first.

Comments

John wrote on Jul 31, 2010 10:47 PM:

" Wow they did not even make one payment and the want the whole thing wrote off. If they wanted a grant they should have applied for it before getting the loan.Givig in to them would set a very bad percident. "




Report Abuse