The yearly operational grant from the council to the West Coast Theatre Trust will also return to its original $50,000 from the current $38,000, to ensure the theatre can continue to operate.
As part of the deal, reached by councillors last night, the trust retains ownership of the theatre building and will report back to the council every six months.
Presented with various options at long-term plan hearings this week, councillors agreed the theatre was an important asset for the community and it was in everyone’s interests it remained open.
The trust is experiencing "severe cash-flow issues" following a long hot summer that kept patrons away from the theatre, and several equipment failures. It requested "substantial" additional financial support through the long-term plan.
Mayor Tania Gibson said the trust and trustees had been under significant pressure.
"I believe this loan is the noose around their neck and we have access to cheaper loan rates — not that there’s much headroom."
Cr Peter Davy said of all long-term plan topics discussed yesterday, "this is the most important one — the theatre trust does a lot for our community".
His real concern was who would pick up the maintenance cost "which is a huge cost coming". He thought the trust needed to look more closely at the current business model.
Cr Timothy Mora suggested meeting halfway: "Give them the minimal amount possible; we’ll take over the loan — we have no choice because we are bonded to that ... I’d rather give them the best possible chance of succeeding".
Allowing the trust to retain ownership of the building would allow it to access grants and funding for the upkeep.
Cr Jack O’Connor cautioned against burdening any future councils with financial commitments and said he thought the decision should be more short-term, but "if we don’t do something the bank will foreclose".
Ironically, Cr Mora added that the council did not want the Regent looking like History House or the Harbour Board buildings "down the track".
Cr Kate Kennedy said the council got to choose what to invest in.
"I feel comfortable in the library and the Regent. They are significant buildings and have a clear use and a future."
The loan was originally taken out with the Nelson Building Society in 2010, covering a 25-year period. Two years ago, the council accepted a shortened term after the NBS offered to reduce the term to 15 years.
In March 2023, the loan total was $701,588 and it was refinanced that month. — Greymouth Star
By Meg Fulford
