Summary#

Councillor McLean’s notice of motion, co-sponsored by Councillors Kelly, Pantazopoulos, Yule and Clark, asks for an assessment of a possible City loan guarantee for the National Music Centre (NMC). On October 5, the Executive Committee voted 14 to 0 to send the notice to Council’s October 27 meeting; it did not approve a guarantee or direct staff to carry out the assessment. The notice’s stated goal is to support the NMC’s long-term financial sustainability.

• If Council later approves the notice, it would direct City staff to work with the NMC to assess the feasibility, risks, implications and possible benefits of a guarantee of up to $36.5 million for NMC refinancing.
• Staff would then have to report findings, recommendations and possible next steps to the Executive Committee by December 7, 2026.
• Any guarantee would still require further consideration, including any needed policy, bylaw, financing or approval steps.

What it means for you#

• Calgarians and taxpayers: No guarantee has been approved. The committee’s decision only sends the notice to Council for consideration.
• The NMC: The notice proposes an assessment, not a loan, guarantee or change to the NMC’s operations. If Council approves the notice, staff would work with the NMC on the assessment.
• City staff: They have not yet been directed to do this work; that direction is for Council to consider.

Money#

No cost estimate is available in the supplied material.

• The proposed guarantee would be for up to $36.5 million, but it has not been approved. A guarantee is a promise to cover a debt if the borrower cannot meet its obligations; it is not itself a cash payment.
• The notice says the NMC’s debt is about $41 million and that it has met scheduled debt payments. These are statements in the notice, not findings from the committee decision.

What is unclear#

• Whether Council will approve the proposed assessment.
• If approved, what terms, risks or financial exposure a guarantee could involve.
• Whether the NMC would qualify for a guarantee, and what conditions might apply.
• What any further approval steps would require.

Case for#

• The notice says the NMC has reduced its construction debt from about $92 million to $41 million and met scheduled payments. An assessment could examine whether a guarantee would help its long-term finances.
• The notice argues that the guarantee could help protect the City’s original $35-million capital investment and keep the NMC’s cultural assets and activities in Calgary.
• The notice projects that by 2036 the NMC could attract 175,000 to 225,000 visitors a year and generate $18 million to $22 million in annual economic impact. These are projections, not guaranteed results.

Case against#

• A guarantee of up to $36.5 million could expose the City to financial risk if the NMC cannot repay its debt. The notice does not set out the likelihood or size of any loss.
• The notice does not explain what terms or safeguards might limit that risk. The proposed assessment would examine risks, but its findings are not yet available.