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HomeMy WebLinkAboutADMIN-19-94 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT Meeting: File# (' 1 1 . c- 14 Date: Council Res. # Q - (a Y9 --'14 Report#: #4e #: By-Law# Subject: ADMIN.19-94 Interest Free Loan - Rotary and Kinsmen Clubs of Bowmanville Recommendations: It is respectfully recommended that Council approve the following: 1. THAT Report ADMIN. 19 - 94 be received; 2. THAT an interest free loan in the amount of$33,000 be approved jointly for the Rotary Club of Bowmanville and the Kinsmen Club of Bowmanville, to be repaid within a term of two years from the date of issue; 3. THAT the Rotary Club of Bowmanville, and the Kinsmen Club of Bowmanville provide the Municipality with a letter confirming their joint responsibility to repay the interest free loan within a two year period from the date of issue of the loan; 4. THAT the Municipality accept as collateral for the interest free loan, documented ownership of a set of bleachers purchased by the Rotary and Kinsmen Clubs of Bowmanville; 5. THAT the bleachers be stored on the Orono Fairgrounds for their use during the term of the loan and be available for use by the Durham Central Agricultural Fair Board; 6. THAT the maintenance of the bleachers, at a standard acceptable and approved by the Municipality, be the responsibility of the Rotary and Kinsmen Clubs for a term of the loan, or until the Durham Central Agricultural Society takes possession; i 7. TfIAT the insurance for the bleachers be included on the Municipal property insurance policy until such time as the ownership has been transferred out of the Municipality's name; 8. THAT upon completion of the loan obligation by the Rotary and Kinsmen Clubs, the Municipality will donate the bleachers to the Durham Central Agricultural Society for their use at the Agricultural Society Fairgrounds at Orono, at which time the maintenance and insurance will become their responsibility; i RELYCIED PAVED RECYCLE PAP ER TILS 6 PRt QV RECYCLED PAPER 9. THAT the required funds be drawn from the Unclassified Administration Contingency Account #7007-X-298; 10. THAT Municipality will honour any existing and future agreements made between the Rotary and Kinsmen Clubs of Bowmanville and the Durham Central Agricultural Society regarding responsibility for rental of advertisement space, and associated revenue earned from the advertisement space on the bleachers; 11. THAT the Durham Central Agricultural Society, the Rotary Club of Bowmanville, and the Kinsmen Club of Bowmanville, be notified of Council's decision. Background: 1. The Durham Central Agricultural Society, through report Admin-11-94, received a grant in the amount of $21,000 for improvements to the Durham Central Agricultural Society Fairgrounds. These funds, together with the Rotary and Kinsmen contributions in kind and a tremendous amount of volunteer work, resulted in a real value improvement of approximately $280,000 to the Fairgrounds. These efforts made it possible for the Ontario Rodeo Association to hold the 1994 finals at this site. 1.1 The event was a financial success not only for the Rotary Club, who sponsored the Rodeo event, but also for many of the local business operations. 2.0 The improvements to the infrastructure will allow large scale events such as the Rodeo Association finals, etc. to be held on the property on an ongoing basis, provided that the Fairgrounds has sufficient seating capacity. In order to accommodate this requirement, the Rotary Club of Bowmanville, together with the Kinsmen Club of Bowmanville purchased bleachers which have a seating capacity of 1,500 to 1,700 people. The cost of these bleachers was $33,000. 2.1 By virtue of their Charter, neither the Rotary Club or the Kinsmen Club are able to own assets, and as such, they wish to sell the asset to the Durham Central Agricultural Society. The Agricultural Society is not in a financial position to purchase the asset. The Rotary Club has used previously committed funds to purchase the bleachers, and would replenish these earmarked funds with the loan from the Municipality. The financial contribution made by the Kinsmen Club was not financially significant to the purchase of the bleachers.The Rotary and Kinsmen Club have agreed to transfer full ownership of the bleachers to the Municipality immediately. 3.0 The Municipal Act Section 113 allows the Municipality, if it is deemed to be in the best interest of the Municipality, make a loan to a non business enterprise, (see copy of Section 113 attached as Schedule #1). The Rotary Club is a registered charitable organization and the Kinsmen Club is a not for profit organization, and as such both would qualify for the loan under the municipal criteria. I I 4.0 In recognition of the significant economic advantage provided to the community by way of the contribution through improvements made to the Durham Central Agricultural Society Fairgrounds by the Rotary Club of Bowmanville and the Kinsmen Club of Bowmanville, it is respectfully recommended that the Municipality interim finance the purchase of the bleachers for use at the Durham Central Agricultural Society Fairgrounds. 4.1 The funds are recommended to be drawn from the Unclassified Administration Contingency account, which has a balance of approximately $60,000 uncommitted, prior to this draw. 5.0 Upon completion of the loan obligation, it is recommended that the ownership of the bleachers be transferred to the Durham Central Agricultural Society for use at the Durham Central Agricultural Society Fairgrounds. 6.0 The Durham Central Agricultural Society Fairgrounds are considered by all to be a significant and unique asset to the community and the enhancement of the Fairgrounds combined with the appropriate seating capacity provided by the bleachers will help to ensure continued expansion of the events at the Fairgrounds and ultimately continued economic advantages throughout the Municipality. Respectfully submitted, q �F W. H. Stockwell, Chief Administrative Officer MM/WHS/nof I I I Attachment #1 to Report ADMIN. 19 - 94 148 Chap, 302 MUNICIPAL Sec. 112a (7) S. The power, right, authority and privilege of the council e raise money by the issue of debentures or otherwise for the acquisition of lands or construe- tion of buildings shall not be transferred to the local board. 9. Upon the repeal of the by-law establishing the local board, the local board ceases to exist and its under- taking, documents, assets and liabilities shall be assumed by the municipality, Regulations (8) The Lieutenant Governor in Council may make regu- lations, (a) prescribing maximum amounts that may be expended by municipalities or any particular mu- nicipality under a program referred to in subsection (2); (b) defining "small business" for the purposes of this section. Definitions (9) In this section, "eligible small business" means a small business included in a program referred to in subsection (2) that is in occupation of premises leased to it under this section; ("petite entre- prise admissible") "municipality" includes a metropolitan, regional and district municipality and the County of Oxford. ("municipalite") 1986, c. 24, s. 1,part. y Generto al 113.--{1) Notwithstanding an specialprovision �C mr akeg ants Act or in any other general or sp ciaPAct re atedto the maks ing of grants or granting of aid by the council of a municipal- ity, the council of every municipality may, subject to section 112, make grants, on such terms and conditions as to security and otherwise as the council may consider expedient, to any person, institution, association, group or body of any kind, including a fund, within or outside the boundaries of the municipality for any purpose that, in the opinion of the coun- cil, is in the interests of the municipality. Loans, P guarantees, (2) The ower to make a grant includes, etc. i 150 Chap. 302 MUNICIPAL Sec. 113 (2) (a) the power to guarantee a loan and to make a grant by way of loan and to charge interest on the loan; (b) the power to sell or lease land for nominal consider- ation or to make a grant of land, where the land being sold, ]eased or granted is owned by the municipality but is no longer,required for its pur- poses, and includes the power to provide for the use by any person of land owned or occupied by the municipality upon such terms and conditions as may be fixed by the council; AI to (c) the power to sell, lease or otherwise dispose of, ata E nominal price, or to make a grant of, any furniture, equipment, machinery, vehicles or other personal property of the municipality or to provide for the use thereof by any person on such conditions as ; - may be fixed by the council; and (d) the power to make donations of foodstuffs and mer- a chandise purchased by the municipality for such ? purpose. Application (3) A guarantee of loan made under this section shall be 4 deemed to be a debt for the purposes of section 149 and where the term of the loan in respect of which such guarantee is made may extend beyond the current year, such guarantee J shall be deemed to be an act, the cost of which is to be raised in a subsequent year and shall be subject to the provisions of R.S.O. 1980, � s �. 347 section 64 of the Ontario Municipal Board Act. ° Definitions (4) In this section, e; (a) "land" includes a building or structure or a part thereof; ("bien-fonds") R.S.O. 1980, (b) "person" includes a municipality as defined in the c. 303 Municipal Affairs Act and includes a metropolitan, regional and district municipality and the County of Oxford. ("personne") R.S.O. 1980, c. 302, s. 113. Awards and competitions 114. The council of every municipality may provide for, (a) offering awards and gifts to persons whose actions or achievements are, in the opinion of council, wor- thy of note; and a a I I I