Beverly Arts Center to Unveil Debt Forgiveness and Fundraising Plan

Faced with about $4.7 million in mortgage debt the Beverly Arts Center has been in tenuous financial straights for the past several years. A new deal with their mortgage lender coupled with a community fundraising campaign could bring the area arts haven back to the financial straight and narrow. 

At a press conference scheduled for late Thursday afternoon the details of the plan are set to be outlined while the BAC kicks off a new fundraising campaign dubbed the BAC Challenge. 

Fifth Third bank currently holds the building's note and years of reduced or missed mortgage payments left BAC with a growing pile of debt. For the past 15 months the BAC board, Ald. Matt O'Shea, the bank and even Mayor Rahm Emanuel have been involved in negotiations over how to rectify the situation. 
 
The mortgage will be divided into two notes. On the first note, for every dollar that the community raises in the next year for the BAC the bank will forgive four dollars, capped at $500,000. In real terms, that means if the fundraising efforts raises $500,000 the bank will forgive $2 million of debt.

O'Shea says they are off to a very quick start with two community families already stepping up to contribute six-figure donations. 

The second note would cover the remainder of the debt.

"If we can execute what I think we can, that will get us to $2.2 million," O'Shea said.

Other officials have also worked to secure funds for the BAC. Rep. Fran Hurley has secured $100,000 from the state, O'Shea said. 

Mayor Rahm Emanuel has also pledged $250,000 of World Business Chicago funds, also known as NATO money. 

"The Beverly Arts Center financial problems didn't start last year, they basically have been there from the get go," O'Shea said. 

Essentially, the troubles were always there. The current building which opened in 2002 was never fully funded and the plan was to first build it, and then raise the money to pay off the mortgage. 

The campaign will set out to put together a mix of various types of fundraisers appealing to different segments of the community, those involved say.

The press conference scheduled for Thursday at 3:30 p.m. will serve not only to detail the debt forgiveness, but will also be the start of a new era of sorts for the BAC as it looks to not only grow fundraising, but appeal to a wider region.