The Downtown Revolving Loan Committee met on June 8, 2010, and approved loan term modifications to the Venture Theatre loan.

Venture Theatre is requesting deferment of principal payments beginning February 1, 2010, to January 1, 2011. The loan is current through January 1, 2010, with the monthly payments due February 1, 2010, to date being in default. Venture Theatre would like to make regular monthly interest payments during the deferment period. They have also agreed to make the interest payments that are delinquent.  The loan payment period would then be extended by one year with the final payment formerly due March 1, 2015, now due March 1, 2016. The loan maintains a personal guarantee by a third party.

The Council may: Approve the loan modifications; or Not approve the loan modifications.  If Council disapproves the modification, Venture Theater may be determined to be in defalt and the City may pursue the remedies in the original agreement, including executing the personal guarantee or forclosure.

If Council approves the modifications to the Venture Theatre loan, it will result in a reduction of funds available for new loans by approximately $18,000 from January 1, 2010 to January 1, 2011.

Staff and the Downtown Revolving Loan Committee recommends that the City Council approve the loan term modifications to Venture Theatre.