Fraser-Fort George Regional District directors threw The Exploration Place a lifeline on Thursday in the form of a $500,000 loan to be paid back over five years starting in January 2025.
Brian Skakun (City of Prince George) and Victor Mobley (Electoral Area A Salmon River-Lakes) were the sole directors to vote against.
Skakun questioned why members of the Fraser-Fort George Museum Society were not at the meeting to make a case to directors and expressed skepticism about the reason cited for how The Exploration Place ran into financial trouble.
A delayed reopening following a $1.4-million renovation that began when the pandemic forced closure of the building in March 2020 had been cited as the cause. But Skakun suggested the museum had enough grant money to tide it over.
"I would like to see them here and how urgent is it that they get the money right now as opposed to waiting a month to get some clear answers, not only for us but for the public as well," Skakun said.
Mobley said he has not seen anything that gives him confidence that the museum can dig itself out of its hole and noted the payments will come out of the grant the regional district provides each year.
"They're just taking the loan off further grants, that's the way I see it," Mobley said. "It's not really a loan, it's just us saying 'hey, we're going to kick the can down the road another year or two and hopefully you guys have made enough money to justify where you're at.'"
Under the loan agreement, starting in January 2025, $31,115.44 will be subtracted from the grant money the museum receives from the regional district until the loan has been paid off on April 1, 2029. Interest will have added up to $60,077.88 by that time based on four per cent per year.
According to a February 2024 staff report, the Society is due to receive $881,290 this year less $113,000 in debt service payments or $768,290. Further divided into quarterly payments that works out to $192,072.50 every three months.
Director Cori Ramsay called four per cent "really generous" and worried other non-profits could come flocking in search of similar deals.
"I don't want it to be precedent setting is what I'm saying," Ramsay said.
However, she noted that the loan agreement imposes a declining limit on the Society's line of credit, falling from $225,000 as of the date of the agreement to as low as $50,000 by the end of 2027.
"This loan does have the provision for reducing that and for their exposure to that risk of using that line of credit and getting themselves into that problem again in the future," Ramsay said.
Director Jerrilyn Kirk (Electoral Area G Crooked River-Parsnip) echoed Ramsay's comments.
"One of the things with public buildings such as museums and curling rinks and swimming pools is they are usually not money makers, they usually don't run at a huge profit or at a profit, so I think there has to be some grace given here," Kirk said and added she appreciates the steps staff has taken to protect the FFGRD's assets.
Director Kyle Sampson (City of Prince George) said he would like to see more dialogue from the Society and expressed his opinion on the changes Exploration Place went through during the renovation.
"I think having a wholesale change like we saw during closure during COVID with the renovation, it completely changed models. I think I understand why but I don't think I agree with the speediness of getting there which I think alienated a lot of the customer base," Sampson said.
Speaking in favour of providing the loan director Simon Yu (City of Prince George) said the museum provides an essential cultural service and noted local governments borrow as well.
