Bracebridge council will soon weigh a proposal to forgive a longstanding municipal loan to Theatre Muskoka as part of a plan aimed at stabilizing and strengthening the community performing arts organization.
A staff report heading to General Committee on March 3 recommends writing off the Town’s remaining loan balance of $862,930 to Theatre Muskoka, which operates the 298-seat Rene M. Caisse Memorial Theatre. The move would apply an existing valuation allowance of $646,000, with the remaining $216,930 recorded as a one-time, non-cash expense in 2026.
The theatre was established through a partnership tied to the construction of Bracebridge and Muskoka Lakes Secondary School and the neighbouring Bracebridge Sportsplex in the early 2000s. In 2005, council approved a capital loan of approximately $2.3 million to help finance the creation of a community theatre within the school facility.
Although an ambitious fundraising campaign secured significant community donations and grants, the organization struggled to meet repayment timelines. Council extended the loan deadline in 2008, and in 2011 replaced the agreement with a letter of understanding requiring ticket surcharges to be directed toward debt repayment.
That arrangement remained in place until 2019, when the theatre was permitted to retain surcharge revenues to address aging technical equipment. The onset of the COVID-19 pandemic in 2020 prompted the Town to suspend the remittance requirement altogether, a measure that remains in effect.
Staff say the theatre’s outstanding debt has become a major obstacle to securing grants and philanthropic support, as many funding bodies are reluctant to finance organizations carrying substantial liabilities. Forgiving the loan, the report states, would more accurately reflect the reality that the debt is unlikely to be repaid while giving the theatre a fresh start under its 2026-2028 business and operating plan.
The report also proposes a three-year memorandum of understanding that would see the Town provide $39,000 annually to support operations from 2026 through 2028. The funding would be repurposed from an existing budget allowance previously used to account for the loan’s declining value, meaning the change would not impact the municipal tax levy.
Staff note that comparable municipally supported venues in nearby communities like Gravenhurst and Orillia receive direct tax funding and in-kind support, while the Bracebridge theatre operates within a school board facility and has historically received limited municipal operating assistance.
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I agree with W Kidd. Take over the theater and make it a town asset like the rink, ballpark, sportsplex etc. Theater Muskoka can rent it from the town when they have a show. They have proven they can’t or won’t make enough money to sustain the building the way it is currently being operated. Or does the town already own the building?
Can the town take ownership of the theater and then lease/rent it out? The town owns the hockey rink, library, ballpark etc. Why not own the theater? If this amount of money is gifted to Theater Muskoka, will it set a precedent and have different groups coming to the town thinking the town is a cash cow? I imagine minor hockey or the gymnastics club wouldn’t mind an $800,000 donation with on ongoing contribution of $39,000. There is no urgent need to pass this resolution. Why not leave it until the next term of council/election and put the question on the ballot?
How much money does this town have to spend? Every week ot seems there’s another $100k there or $1m there. When does it end?