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Council approves $5,000 annual grant for McGregor Hall after larger funding bids fail

Henderson City Council · March 1, 2026
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Summary

At its June 3 budget work session, the Henderson City Council voted 5-2 to approve a $5,000 annual grant to McGregor Hall after rejecting motions to fund the venue at $75,000 and $60,000; councilmembers debated debt service, community benefit and financial transparency.

The Henderson City Council voted 5-2 on June 3 to approve a $5,000 annual grant for McGregor Hall, rejecting larger funding proposals that several councilmembers had urged.

Councilmember Sara M. Coffey moved to provide McGregor Hall the $5,000 grant, and Councilmember Geraldine Champion seconded the motion; it passed with votes from Champion, Coffey, Michael Venable, Ola Thorpe-Cooper and Tami Walker. Councilmembers Sam Seifert and Garry D. Daeke voted no.

The vote concluded a prolonged debate over the nonprofit venue’s finances and the city’s role. City Manager Edward T. Blackmon reminded the council that previous sessions had discussed a tax rate of $0.55 and additional property acquisitions; he also said a budget amendment (CAF) would be prepared to finance $275,000 for a separate Falkner Building Supply property purchase. Blackmon reported McGregor Hall Director Mark Hopper told staff the requested funds would be applied to the building’s debt service.

Councilmembers differed on whether a larger appropriation was warranted. Daeke moved to fund McGregor Hall at the originally requested $75,000 (seconded by Seifert); that motion failed 2-5. Daeke then moved to fund $60,000 (seconded by Seifert); that motion also failed 2-5. Seifert read from an economic study describing McGregor Hall as “one of the most identifiable and popular amenities in Henderson,” arguing the arts venue contributes to local economic growth. Opponents, including Coffey, questioned promotional strategies and whether substantial city funds would yield clear municipal benefits. Champion asked staff to obtain the organization’s 990 tax return for review.

Blackmon told the council the mortgage carries a 2.75% interest rate with about 32 years remaining and an annual payment of $124,620; he said the earlier $3 million the City contributed during initial phases was spent on land surveys, excavation and infrastructure and is considered sunk cost.

The council conditioned the $5,000 grant on a City-appointed voting seat on McGregor Hall’s board and on receiving reporting on how the funds are allocated, per a proposal from Councilmember Tami Walker. Blackmon said Director Hopper and the board chair agreed to add a city-appointed voting seat.

The council’s decision leaves unresolved requests for larger operating support; members required additional transparency documentation and debated alternative funding sources, including potential property sales to support arts funding. The council indicated further budget actions will be finalized ahead of the June regular meeting.