Elgin forgives almost $162,000 of symphony's debt

The city of Elgin is forgiving nearly $162,000 owed by the Elgin Symphony Orchestra, which in turn will open up some rehearsals to the public and report to the city council at some point in the future about whether the moved helped it obtain more grants.

The symphony's debt stemmed from not paying rent to the city for use of the Hemmens Cultural Center for part of 2011 and until September 2013. That's when the symphony agreed to repay a total debt of $233,920, plus interest, over 15 years in monthly installments, the last one made in August.

City council members voted Wednesday to forgive $161,841 out of the $183,241 remaining debt, or all but $21,400 in labor costs. Symphony CEO David Bearden had asked for that, saying the debt made up most of the symphony's long-term liabilities, a major factor in grant approval.

Debra Nawrocki, the city's chief financial officer, said the debt forgiveness won't have an impact on Elgin's budget because the money is not budgeted as revenue and is accounted for as a loss until payments come in.

Councilwoman Tish Powell asked that the symphony be required to report back "in a couple of years" on which grants it applied for and with what results. Her colleagues agreed to that provision in a 7-2 vote, with council members Rose Martinez and Terry Gavin voting "no."

"That's just some accountability that is fair for us to ask for from the Elgin Symphony Orchestra," Powell said, adding that the city wants the group to be successful.

Councilman Richard Dunne agreed, saying the symphony has righted its financial ship in the last few years. "That would relieve a lot of questions and concerns that our citizens have over the state of the Elgin Symphony Orchestra," he said.

Powell also asked city staff members to work on drafting a policy regarding debt forgiveness for nonprofits so that consistent criteria can be applied in the future.

Gavin pointed out this is not the first time the city council has helped its "important partners" in the community, such as when it agreed in 2014 to lower the rent charged to Grand Victoria Casino from $1.7 million to $1 million.