MEETING DATES: November 5 and November 13, 2024
STAFF REPORTS PREPARED BY: Karen Dunlop, Chief Administrative Officer
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Overview
The Municipality of North Grenville is deciding whether to help the Ferguson Forest Centre (FFC) with a bridge loan. FFC, a non-profit organization, manages a large tree nursery and recreational spaces like trails and a dog park on leased land from the municipality. Recently, FFC has faced financial troubles due to aging equipment and water quality issues affecting its nursery, which could lead to its closure.
The reports discussed by Council on November 5 and November 13, 2024, explain FFC’s request for financial help, the options available, and the steps that FFC has already taken to improve its financial situation. Importantly, the idea of selling land is now off the table, and other solutions are being explored.
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Key Points
1. Why FFC Needs Help
o FFC has faced financial difficulties due to old equipment and poor water quality, which have affected its ability to grow seedlings.
o To tackle these problems, FFC is updating its water system, which should help improve its financial outlook.
2. Support from Community Futures Grenville (CFG)
o CFG, a local organization that helps businesses, has already approved a $300,000 loan for FFC. This money will go toward improving the greenhouse water system and potentially other repairs if funds remain.
3. The Request for Municipal Help
o FFC has asked the Municipality for an additional $400,000 to cover its operational needs while it upgrades the water system.
o In 2022, Council adjusted FFC’s lease to help reduce costs and explored selling land, but the new reports suggest that financial support can be achieved without selling any municipal land.
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Proposed Loan Terms and Conditions
If the Council approves the bridge loan, the following steps and rules will apply to help ensure that FFC uses the funds responsibly:
• Loan Conditions
o The $400,000 loan would allow for “interest-only” payments for the first two years. After that, FFC would start paying down the principal amount over a 15-year period.
o CFG would hold a first mortgage on FFC’s property at 200 Van Buren Street, while the Municipality would hold a second mortgage on the same property.
o FFC must update its governance (rules and policies) to meet Ontario’s regulations for non-profits, which includes reviewing their board of directors and by-laws.
• FFC’s Financial and Operational Accountability
o FFC must submit audited financial statements to both CFG and the Municipality each year.
o A joint Municipality-FFC committee will oversee FFC’s recreational land uses, ensuring these spaces remain available to the public.
• Additional Municipality Support
o The Municipality will help by providing free lawn mowing and parking lot maintenance at FFC’s recreational spaces.
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Options for Council’s Consideration
1. Approve the Bridge Loan with Conditions
o Pros: This option helps FFC with immediate financial needs while putting rules in place to ensure the funds are used responsibly.
o Cons: The Municipality would be taking on financial risk if FFC is unable to repay the loan.
2. Approve the Bridge Loan with Added Recreational Land Management
o Pros: In addition to the loan conditions, this option includes an agreement that the Municipality manages FFC’s recreational areas. This could help reduce some operational responsibilities for FFC.
o Cons: This option adds extra responsibilities for the Municipality, which would require time and resources.
3. Decline the Loan Request and Plan for FFC Transition
o Pros: The Municipality would avoid financial risk, and funds would be preserved for other uses.
o Cons: Without this help, FFC may not be able to continue operations, and the Municipality may need to take over or find new ways to manage the land.
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Next Steps and Communication
After Council decides, a communication plan will be shared with the community to ensure that everyone understands the outcome. This plan will help keep residents and FFC patrons informed about what changes or supports may be happening.
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Conclusion
The FFC’s financial needs can be met without selling municipal land. The bridge loan, if approved, would allow FFC to address its immediate issues, improve its water quality, and meet governance standards, helping it work toward a sustainable future.
Please refer to Heather's Land Deputation to NG Council on the attached YouTube link, along with the staff report presentation to NG Council on November 5, 2024. The questioning of Ferguson Forest Centre officials by NG Council, as well as the FFC officials’ response, begins at the 1:15 mark.
North Grenville Council Meeting link to FFC Land Disposition Presentation Nov 5 2024
https://pub-northgrenville.escribemeetings.com/filestream.ashx?DocumentId=35301
https://www.northgrenville.ca/things-to-do/nature-parks/ferguson-forest-centre