The Board of Directors of the Olds Institute for Regional and Economic Development issued a press release this week after signing a forbearance agreement.
The Board of Directors at Olds Institute for Community & Regional Development issued a press release just before 4pm on Monday, June 1st.
It stated that it was with surprise that the Olds Institute for Regional and Economic Development received a news release and legal documentation from the Town's legal solicitor on Friday, May 22nd at 4pm asking the Ol to sign a Forbearance Agreement by Tuesday, May 26th at 4pm.(A Forbearance Agreement is a standard legal form that is used when a borrower defaults under a loan agreement.)
Chairman Bill Hall adds, the Olds Institute has never defaulted on its payments.
OI was formed in 2001 as an independent, public, non-profit community and economic development society that is owned by the community (the citizens, not the Town) and governed by a volunteer board. Its mission is to lead by example, cultivate opportunity, and enhance the quality of life.
The formation of OI was sanctioned by the town of Olds. According to the OI Mandate (2008), "The Town will seek the input and recommendations of the institute on issues of community development. To support the Institute, the Town's CAO will facilitate the provision of relative information and data requested by representatives of the institute as expeditiously as possible.
The press release continues by saying the decision of the Olds Institute Board to sign the forbearance agreement by the deadline of June 1st at 4pm was not made lightly.
Moving forward O-I hopes the Town of Olds Mayor, CAO and council will acknowledge the benefits of having the Olds Institute in the community and will engage in a positive dialogue with the O-I Board and its executive over the next 90 days to insure a win-win outcome.
96.5 CKFM spoke to Mayor Michael Muzychka on Monday, May 25th.
The town of Olds isssued a press release on Friday, May 22nd which stated after significant and lengthy consideration by Olds Town Council, the decision has been made to require the re-organization of the loan financing provided to Olds Institute.
Olds Institute is a non-profit group that oversees Olds Fibre Ltd. and a for-profit business that owns O-NET.
Council has begun the first steps towards this process through legal counsel, which includes the request for repayment of the $14 million dollar loan to Olds Institute and additional process thereafter.
This will mean business as usual for Olds Institute and will not disrupt services/operations offered by O-NET. The Town’s goal is to work collaboratively and cooperatively with Olds Institute towards a mutually agreeable solution.
Olds Town Council has been a strong supporter of O-NET in the past and will continue to do so during this re-organization. By resolution Olds Town Council has made this decision to increase the oversight in the Town’s investment the operations of Olds Institute including O-NET.
As this process unfolds, Town Administration will provide updates from time to time as determined to be necessary or warranted. Olds Town Council looks forward to an efficient and productive process, and a continued operation and services of the organizations in the ordinary course.