The organization has been working for more than a decade on getting the historic, downtown theater open for business. But funding problems have made it difficult to keep up with the demands of the project.
On Thursday, Mark Parsons and Molly Young spoke for the organization as they approached the Beeville Economic Improvement Corporation board to follow up on an earlier request for funding.
Young and Parsons were told that a subcommittee of the board had met and had recommended giving the organization $150,000, with half of that to be paid this fiscal year and the other $75,000 to be paid in 2010-2011.
The plan hit a stumbling block, however, when the theater representatives were told that the subcommittee had recommended that the money be considered a loan, to eventually be repaid to the city.
“I have a problem with the word loan,” Young told the board. She said it would make it hard for the association to apply for additional grant funds if it is in debt. Grant organizations balk at donating money to projects if they feel their gifts may be used to pay off loans.
Young asked board members if they could change their wording on an agreement to call the $150,000 a grant. She then offered to accept any requirements to the grant that the EIC board wanted.
“The project has a long history,” said EIC board member Dave Moore. “We’d all like to see it completed.”
Moore then recommended that the grant agreement include a “clawback” stipulation that could require repayment without calling the grant a loan. Moore suggested that the board would want a performance agreement anyway before awarding the funds and the clawback could be part of that agreement.
Board member Jessy T. Garza told Young that the subcommittee studying the request had concerns about the project being completed.
“We went in the direction of a loan simply because we were concerned about throwing away our money,” Garza said. “A clawback could address our concerns.”
When asked about the likelihood that the $150,000 would allow the association to open the facility, Young said, “We’re very optimistic.”
Garza then said the loan stipulation could make “this group look like ogres because we want our money back.”
Young assured that even if the association cannot complete the entire renovation project, “We’ll do all we can.”
New board member Orlando Vasquez asked for an explanation of the intended clawback stipulation to the agreement.
“Are we saying that we will give you $150,000 to get your work done, but if the job isn’t finished, we want our money back?” Vasquez asked.
“Yes,” Garza answered. “We assume they have money.”
Young said the association does have a little more than $170,000 in reserves but that money is committed.
Garza then said the EIC will set “milestones” for the Hall-Rialto organization and fund the project as the work proceeds.
“I’m okay with that,” Vasquez said.
Board members will consider final approval of the agreement at their Aug. 26 meeting. That will give the EIC staff time to prepare a performance agreement that includes a clawback stipulation.
In another agenda item, board members voted to release the final $50,000 of a grant the EIC voted to provide for the theater renovations earlier.
That amount was part of a $150,000 gift to the Hall-Rialto group but $50,000 of that was withheld until later.
Gary Kent is a reporter at the Bee-Picayune and can be reached at 358-2550, ext. 120, or at reporter@mySouTex.com.
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