Summerside city council has agreed to guarantee a loan sought by Generation XX for the next phase of its extensive renovations.
Gordie Whitlock, executive director of the Summerside-based youth organization, said the community has been supportive and the organization’s capital campaign is going well. The loan is needed as a backup source of funding. He doesn’t foresee any financial burden on taxpayers.
The city agreeing to be a guarantor is a big vote of support for Generation XX and the people who have worked hard to build the it, he said.
“It shows confidence in our organization and I think that’s well-founded confidence. We’ve been around for 22 years … we’ve got a good track record of paying our bills and being able to step up to challenges when we have to."
Deputy mayor Norma McColeman, who is also chairwoman of the finance committee, echoed Whitlock’s comments.
Generation XX is a valuable asset to the community and the city is happy to support it in this way, said McColeman.
“It’s an engagement and an investment into them to increase the value of their programming and services to the community and the families and the youth,” she said.
Whitlock added that work on Phase 2 of the project is expected to get started later this fall.
Generation XX is a teen-focused organization in the city and home to the province’s only indoor skate park.
It has been undergoing extensive renovations for some time and is now planning to move on the second phase of the work, including expanding the second floor and installing an elevator. The upcoming work is expected to cost $950,000.
The organization has secured most of the funding but will still have to take out an additional loan of $253,000 to cover its share of the costs. It has asked the city to act as a guarantor and has offered up its facility at 328 Notre Dame Street as security.
Council voted unanimously during its monthly meeting Monday night to accept the proposal.
This means that if the loan were to default for some reason, the city would pay for it and take the building as compensation.