2018-04-10 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                             10 APRIL 2018


Option 3: Council supports Pomona Arts Inc by meeting PAI’s mortgage repayments for
          the next three years.

Option 3 sees the Majestic remain in community ownership but with Council providing emergency
financial support to Pomona Arts Inc giving the organisation the opportunity to reduce its
overdraft and trade out of its financial difficulties.

Depending on how this option was structured, it may also require prior Queensland Treasury
approval for making specific mortgage payments of a non-Council party.

 Pros                                                       Cons
 The organisation should be able to reduce its              Building condition unknown
 overdraft and continue to meet its financial
 commitments
 PAI management committee can increase their                No Conservation Management Plan developed
 focus on managing and activating the building
 Allows time for PAI to implement some identified           Council sets a precedent by assisting a
 measures to improve its financial sustainability           community group to purchase an asset
                                                            (something that it was not prepared to do with a
                                                            recent request from Cooroora Historical Society
                                                            who were seeking Council assistance to purchase
                                                            the Masonic Temple)



Option 4: Council supports Pomona Arts Inc with a one off payment and works with PAI
          to develop and implement a Conservation Management Plan

This option sees Council provide a one off payment to the PAI upon certain conditions to assist
them reduce their overdraft and undertake a condition assessment of the Majestic Theatre with a
view to developing a Conservation Management Plan and a schedule of programmed
maintenance for the building in conjunction with PAI.

 Pros                                                       Cons
 Council’s one off injection of funds will allow the        Funding pressures may be exacerbated should
 organisation to reduce its overdraft and continue to       any reactive building works be required following
 meet its mortgage repayments                               the condition assessment
 The actual condition of the building is known and a        No certainty of increased Council support to PAI
 Conservation Management Plan developed within              after 12 months
 12 months allowing Council to consider the long
 term future of the building
 PAI management committee can increase their
 focus on managing and activating the building
 Allows time for PAI to implement some identified
 measures (i.e. business plan including income
 diversification) to improve its financial sustainability
 Council commits to reviewing its support to the PAI
 in 12 months time with a better understanding of the
 PAI’s long term financial sustainability




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