AGENDA DATE: 11/1/2017
TITLE:
Title
Lewis and Clark FY 19 Funding Consideration
BODY
SUBJECT/PROPOSAL/REQUEST: Request for donation to apply to outstanding debt
ITEM TYPE: Regular Information Item
STAFF CONTACT(S): Bill Letteri
PRESENTER (S): Bill Letteri
LEGAL REVIEW: Not Required
REVIEWED BY: Choose an item.
BACKGROUND: : In March 2013, the Lewis and Clark Exploratory Center (LCEC) advised the County that its fund raising efforts had fallen short of its goal and requested a total of $260,000 in assistance from both the City and the County to ensure that the Lewis and Clark educational building, an access road and parking area, and a connecting trail network at Darden Towe Park were completed.
On April 3, 2013, the Board of Supervisors approved an appropriation of $130,000.00 in CIP fund balance to the Economic Development Authority (EDA) for the purpose of funding a loan for the Lewis and Clark Exploratory Center, subject to: 1) an agreement between the County and the EDA regarding the EDA’s reimbursement of the funds to the County when the LCEC repaid the loan to the EDA; 2) a note or some other instrument acceptable to the County Attorney by which the LCEC would agree to repay the loan to the EDA with a specific time table; and 3) the City of Charlottesville contributing or committing to contribute the other $130,000 required to make up the $260,000 shortfall.
By previous action, the Board and EDA have extending the due date for the loan on multiple occasions due to the LCEC’s inability to repay the loan.
STRATEGIC PLAN: Goal 2: Prioritize, plan and invest in critical infrastructure that responds to past and future changes and improves the capacity to serve community needs and Goal 5: Provide lifelong learning opportunities for all our citizens.
DISCUSSION: Representatives of the LCEC Board have drafted a request of the Board (Attachment A) to assist them with the repayment of this loan. Sally Thomas, LCEC current President will address the Board at the November 1st meeting. The County could provide a donation in the amount of $130,000 plus any unpaid interest and late fees from the CIP Fund fund balance to the EDA on behalf of the LCEC conditioned upon the donation being used to pay off the loan. This donation would require a Board approved appropriation from the CIP Fund fund balance. Upon the repayment of the loan, pursuant to the agreement between the County and the EDA, the EDA would return the $130,000, as well as all interest and late fees collected to date, back to the County. The Board could then appropriate the proceeds back to the CIP Fund fund balance. An appropriation would be brought to the Board in December to fund this option. Alternatively, the Board could direct LCEC to return to the EDA to renegotiate an extension to the existing loan. In addition to the request letter, the attachments include unaudited financial statements of the LCEC.
BUDGET IMPACT: If the Board decides to make a donation to LCEC and the funds are applied against the outstanding loan, the EDA will then return these funds to the County which will offset the donation and return the funds to fund balance.
RECOMMENDATION:
Recommendation
This item is for the Board’s consideration and is not making a recommendation.
ATTACHMENTS:
Attach A - Lewis and Clark Letter to BOS
Attach B - Report of Visitors and Activities
Attach C - Architects Reflection
Attach D - Lewis & Clark Exploratory Center Major Grants and Recurring Grants 2003-2017
Attach E - Executive Director’s Report 2016-17
Attach F - Profit and Loss
Attach G - Balance Sheet
Attach H - Profit and Loss Budget Overview