On March 5 the City Council voted to approve a $1million loan to the Redlands Historical Museum Association (RHMA) for the construction of infrastructure for the Museum of Redlands (MOR). The loan was approved with an interest rate of 4% to be repaid within two years.
MOR President Steve Stockton believes that this loan is the “last financing piece of our puzzle,” and according to his projection, construction will be complete by the end of the year.
The RHMA acquired the property at 700 Brookside Ave. with the vision of establishing a cultural hub that would enrich the Redlands community and contribute to the city’s tourism and economic development goals.
This vision was solidified when the City Council passed a resolution in September 2014 affirming the city’s commitment to take possession of the museum upon completion.
The construction of the Museum of Redlands has progressed through three phases, beginning in January 2021.
Phase 1 involved the renovation of the exterior of the main building, formerly the Redlands Daily Facts building, followed by phase 2, which focused on the interior renovation of the main building.
Welder works on a couple of beams on Feb. 4, 2022. Photos courtesy of the Museum of Redlands
Phase 3 encompassed the development of an event pavilion space adjacent to the main building.
Construction faced financial challenges with a shortfall of $8 million despite fundraising efforts.
Construction workers installing steel frame structure on Feb. 17, 2022. Photos courtesy of the Museum of Redlands
Recent developments have provided a glimmer of hope for the museum: the state approved a $2 million grant for the museum, complementing a $1 million grant agreement approved by the City Council in April 2022.
In addition to grants, RHMA secured a $1 million loan from the A.K. Smiley Public Library Endowment fund and raised $3.3 million through fundraising campaigns.
The combined efforts brought the RHMA within reach of the revised total project cost of $27 million.
The loan proposal outlined will not require RHMA to provide collateral, and does not provide a guarantee for repayment in the event of not being able to repay the loan in full.
A late fee of $5,000 could be assessed if principal and interest are not paid by the maturity date.
While the agreement carries inherent risks for the city including the possibility of litigation in case of default, RHMA plans to continue fundraising over the next two years to fulfill its obligations, with the option to prepay the loan if feasible.
During public comment, Brian Seghers expressed his love for museums, though shared his trepidation regarding the terms of the loan. “It just seems wild to me to be able to give out a million dollars without there being any kind of accountability if it doesn’t work out. I hope it works out,” said Seghers.
Councilwoman Jenna Guzman-Lowery also inquired about RHMA’s accountability to repay the loan, especially without collateral.
Stockton pointed to the association’s track record of raising funds in the past. “When we were doing our budget even our accountant said, ‘Well, you can be a little more aggressive about your future income because look at your record.’ And we even pare that down assuming that things go south a little bit. We don’t anticipate that. But we’ve taken that into account during our final accounting pricing for the whole project,” Stockton said.
Councilman Mario Saucedo commented that the city can initiate litigation if RHMA fails to repay the $1,040,000 (interest included).
The council unanimously approved the loan. Construction is set to begin in April.
Staff Writer Israel J. Carreón Jr. may be reached at icarreon@redlandscommunitynews.com, and messages may be left at 909-891-0817. Connect with him on Instagram, Threads and X (Twitter) @icarreonjr.
