June 25, 2014 - 1:25 PM
PENTICTON - The PenMar Community Arts Society was chosen by Council to receive city funds to help with the construction of the theatre’s extension.
The society can receive a loan up to $125,000 from the City’s Amenity Fund for improvements made during construction of the PenMar Theatre’s addition.
Different organizations submitted applicants to receive the funds, however, Mayor Garry Litke said the PenMar Society won because it had the best, most well-rounded business plan.
In order to ensure the funds are used to create a long term benefit, the society signed a lease term with the city for a minimum of 15 years, with the option of renewal.
The society will “draw” from the funds as equipment is needed, as will not be given the full amount straight up. The funds must be full repaid to the city within seven years after the first amount is drawn from the fund. There will be a two per cent interest rate after the fifth year.
Once the debt is paid off, any improvements made then belong to the society, and not the landlord (the city). The returned money will then go towards funding other arts and community projects.
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News from © InfoTel News Ltd, 2014