On Tuesday, WL Council, meeting in Committee of the Whole, will be receiving a report from the City's CAO regarding a financial status update of the Community Arts Council.
A portion of the recommendation going to the Committee leaves me really concerned. For the record, the offending portion is:
"That Council provide direction to staff with respect to recovery of outstanding rent for the occupancy of Heritage House totaling $9163 as of December 31, 2009"
City Staff have suggested in their report that Council could waive the $9,163.00 debt owed to the City, by way of Resolution.
Unfortunately, that would set a precedent that I don't want to see set. Furthermore, I believe that by waiving the debt, it would run afoul of Section 25(1) of the Community Charter, at least in spirit, which prohibits a Council from providing direct financial assistance to business. Now, although the Community Arts Council is, by definition, a "non-profit", the outcome is the same. If the Community Arts Council can not afford to pay its' debt to the City, then the City should pursue actions to collect on the debt including the possibility of imposing a "one strike and you're out" rule on their new home at the former City Fire Hall if the Community Arts Council missed 1 rent payment. Also, waiving the debt would also send a very poor political message to homeowners' who are, at this time, struggling to pay their mortgage.
I hope Council sends a message to the Community Arts Council - you owe us $9,163 and it will be paid. Taxpayers' expect no less.
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