John Click summarized to the Budget & Finance Committee on Sept. 16 a preliminary request from the Auto Restoration Club (ARC) to finish a Phase 3 showroom and related spaces. Click said the club estimates the Phase 3 cost at between $800,000 and $900,000, that the club has a time‑sensitive $150,000 donor pledge for steel fabrication available for roughly 18 months, and that the club seeks a financing arrangement through the association’s operating account rather than reserve funding.

Click reviewed ARC’s earlier project history: Phase 1 (Mechanics Building, delivered Feb. 2016) and Phase 2 (paint and body shop, Feb. 2019) together represented $1.3 million in loans originally extended to ARC; the club has repaid approximately $1,078,000 and the outstanding balance on existing loans is roughly $220,000. Committee members were told ARC has generally paid about $75,000 per year toward the loan in recent years (with a COVID year exception) and that, at that pace, the outstanding balance would be paid off in about three years. The club reported roughly $204,000 in revenue in 2024 and said its pre‑loan bottom line is in the range of $75,000, though the committee requested the full set of financial statements to verify details.

Cliff Swan explained the building is on the association’s fixed‑asset schedule but that the club maintains the structure and equipment. He said funds for any new financing would come from the operating account (which holds roughly $7,000,000 on average) and that a note would be recorded on the books; he emphasized this structure does not use reserve dollars and does not require a dues increase. Committee members requested more detail on the loan terms, ARC’s multi‑year financials, and the club’s payment history. A walkthrough of the facility was scheduled for next Monday at 1:00 p.m. and staff will bring the requested financial detail to follow the committee’s review process prior to the November budget‑timeline recommendation.

No formal motion or vote occurred; committee members emphasized due diligence and suggested repayment terms and project scope be clarified before any loan addendum is drafted.