(Arnolds Park)– Outstanding debt was the main topic of discussion again at Friday’s meeting of the Iowa Great Lakes Maritime Museum Board of Directors.
The board’s Finance Committee reported they were successful in talks with local bankers to refinance for the upcoming year. But committee chair Bob Schneider told the board they were also strongly warned by the bankers to get the two million dollars in outstanding notes paid off in the upcoming year. Otherwise, Schneider said, they (the bankers) “could invoke some of their rights”.
Committee member Al Maser added the bankers see the debt as a very high risk. And Dick Ramsey, an attorney that sat in on the finance meetings with bankers, told the board they probably wouldn’t hesitate to foreclose on the property if the debt isn’t retired one year from now.
How to retire the debt was the next topic of discussion. Board members agreed their options are very limited. Schneider said the major donors they’ve visited with so far won’t contribute to the operations as they currently stand. Schneider said they want the land separated out, with the land ownership going to another foundation, the state, or other entity. But Schneider said that would also tie the hands of the Maritime Museum Board in that they would no longer have the land to offer as collateral in the event they would have to get another loan sometime in the future. And he said there was concern among the major donors over some of the options under which the land could be held by other entities.
The board is still planning some major fundraising events for the upcoming summer, including one that would be in conjunction with the organization’s annual meeting in August.
Jim Frost, Executive Director of the Maritime Museum, offered some words of encouragement. He said he remains confident the park operations will cash flow once the debt is retired.
