Sorry for the late post about the article in the spec……..but we all know about it but also shouldn’t take the three month extension as a win by any means, they have a long way to go………… here’s the article…
–> Paul Morse
The Hamilton Spectator
(Apr 5, 2010)Hamilton’s downtown Sky Dragon Centre has won a three-month mortgage reprieve that the nonprofit group says is crucial to its survival.
“We are really relieved because the Teachers Credit Union has agreed to extend the deadline to July 18,” said Sky Dragon director Kevin MacKay.
“That will give us enough time to complete our building appraisal and get our refinancing deal together.”
The credit union told the downtown grassroots nonprofit sustainability co-operative in February that it would not renew a $187,000 first mortgage and $30,000 line of credit on April 18.
Sky Dragon says it is now studying several mortgage offers and debt restructuring plans. It has also launched a bond drive, and is selling co-op memberships.
People can buy a $1,000 bond as an investment, or join the co-op as a member for a minimum $30.
MacKay said the co-op will also restructure its governance structure to a multiple stakeholder model. Currently, there are only six directors.
“That will expand to 15, with elected representatives from co-op managers, staff, community membership holders, bondholders and partnership organizations.”
A key issue for the co-op is to restructure financing to drive down monthly debt servicing costs, he said.
“We think this will put us in the black, and the overwhelming consensus is that we have to be in the black to go forward.”