Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Nonprofit Funding topic
No spam. Unsubscribe anytime.
Council allows Paradise Arts to use building as security for capital-improvement debt with conditions
Summary
Council approved amendments to the Paradise Arts agreement and loan agreement to allow the building to be used to secure debt for capital improvements; staff emphasized that any other uses would require separate council approval and some council members expressed concern about future requests.
The Faribault City Council on Jan. 27 approved two amendments to the Paradise Arts agreement: one amending the agreement itself and one amending the related loan agreement to clarify when the building may be used to secure debt.
City Administrator Jessica Kzer told the council the amended language would allow the building to be used to secure debt for capital improvements while making clear that any use not directly tied to capital improvements would still require council approval. The proposed changes were discussed at a Jan. 6 work session and staff recommended approval of the two amendments as presented.
Council member Joe raised a concern that allowing the building to be used as security could invite requests for handouts in the future. Jessica Kzer and staff responded that the language is limited to capital improvements and that other proposals would come back to the council for review.
The council moved, seconded and approved Resolution 2026-1019 to adopt the amendments. Staff said they would proceed with necessary documentation.
