The Martinsville Redevelopment Commission on a voice vote approved a short-term loan from the wastewater and stormwater funds to complete the closing on the recently purchased downtown theater.

Commission members learned the theater closing happened earlier than planned and that staff had to temporarily draw on utility funds to pay closing costs. A staff memo read into the record explained the loan will be repaid in full when the commission receives its next tax draw in December.

"As you may know, the closing on the theater came up quicker than expected. And to complete the transaction, we had to borrow some money from the wastewater and stormwater funds," a member of staff told the commission. The transcript indicates the total was described as "a little over a million dollars," and staff said the borrowed funds will be repaid from the December tax draw; the transcript did not provide a precise dollar split by fund.

A motion to authorize the short-term interfund loan was made, seconded and approved by voice vote. The motion directs staff to record the loan and to repay the wastewater and stormwater funds when the December tax revenue is received.

City attorney Joe reported that title work for the theater has been completed and staff are preparing documentation to transfer associated properties from the redevelopment commission to the city once final steps are finished.

Members stressed that the loan is temporary and framed it as a bookkeeping measure to complete the purchase ahead of expected cash flows. The commission did not specify a formal repayment schedule beyond the December tax draw cited in the staff message.

The commission did not identify an exact repayment date beyond the December tax draw; members said staff will complete the required paperwork following the vote.