Bracebridge writes off $862,000 loan

Theatre Muskoka's outstanding balance of $862K loan was forgiven to help the organization achieve long term sustainability

Town of Bracebridge General Committee agreed to forgive the municipal loan from Theatre Muskoka, in the March 3, 2026, meeting.

The decision resulted from the Theatre Muskoka Business and Operating Plan for 2026–2028.

According to the staff report, “In the opinion of Town staff, the Business and Operating Plan presents a realistic roadmap for the Theatre to achieve long-term sustainability in operating a community centred performing arts venue in Bracebridge, provided the fundraising targets are achieved and the Theatre’s Board of Directors maintains the appropriate governance and operational insight.”

The report explains that the Town held an outstanding loan of $862,930 to the Theatre, however, under the approved recommendation, that loan will be written off, and the Theatre will no longer be required to repay the loan to the Town.

An existing valuation allowance of $646,000 had already been recorded in previous budgets, and the remaining $216,930 will now be recorded as a one-time, non-cash expense in 2026.

While members of Committee noted the write-off will not result in an additional tax levy, the action confirms the Town will also not recover the remaining balance of the debt owed to the municipality.

Committee also endorsed a three-year Memorandum of Understanding between the Town and Theatre. Under the agreement, the Town will provide $39,000 annually in 2026, 2027 and 2028 to support operations.

The 2026 contribution will be funded by reallocating an existing $39,000 provision previously included in the budget related to the theatre loan.

Staff indicated that removing the loan from the theatre's balance sheet improves its financial position and may strengthen its eligibility for government grants and other funding opportunities.

The report adds that the Town's financial support is intended to provide greater certainty for the organization while maintaining cultural programming and live performance opportunities in the community.

Mayor, Rick Maloney, said, “At the end of the day, what it does mean is that Theatre Muskoka will now be able to hold its head above the sand and not have that debt.”

Councillor, Andrew Struthers, Council’s representative with the Theatre, referred to it as a “turning point, where the Board has been reenergized,” and the debt forgiveness will help with stabilization because “grant applications were denied because of the debt.”