Steinbach City Council says its decision to provide a $400,000 loan to the organization operating the Southeast Event Centre is about protecting a city-owned asset while helping the facility overcome the financial challenges that often accompany a major new development. Council unanimously gave second and third reading to By-law 2272, authorizing the interest-free loan to Southeast Events Group Inc., the non-profit organization that operates the Southeast Event Centre on the city's behalf. The loan will provide short-term operating cash flow and will be repaid in four annual installments of $100,000 beginning Sept. 30, 2027. Council says loan supports city-owned facility Deputy Mayor Michael Zwaagstra said the event centre has already become an important asset. "As we know, the Southeast Events Centre has been a fantastic addition to our city and to our region," he said, but noted its delayed opening created financial pressures during its first year. Zwaagstra explained construction and opening delays meant the facility was unable to generate revenue as early as anticipated while some operating costs continued. He stressed the city is providing a loan, not a grant. "They've asked the city to provide a short-term loan of $400,000 to supplement operating cash flows," Zwaagstra said. "Important to note, this is a loan. It is not a grant." Related Stories: Steinbach council approves first reading of $400,000 loan for Southeast Event Centre Pickleball momentum grows at Southeast Event Centre Southeast Event Centre learning from early setbacks, ready for busy season City-owned facility Zwaagstra said council believes helping the facility through its early years is in the city's best interest because the building itself is owned by the municipality. "It is a city-owned facility, and it is obviously in our best interest to ensure that our event centre be on the firmest and strongest financial footing possible," he said. He added that the first few years are often the most challenging for facilities of this size. "We certainly want this facility to succeed," Zwaagstra said. "Providing a short-term loan helps to ensure that there are sufficient operating funds available so that way they are able to proceed with their operations in the most effective way possible." Why can the city make a loan? Councillor Jake Hiebert addressed what he said may be a question many residents have. "People are probably wondering, how can a city make a loan to another organization?" he said. Hiebert explained municipalities are permitted to make loans to non-profit organizations under Manitoba's Municipal Act, provided several conditions are met through a bylaw. He said those requirements include identifying the borrower, the loan amount, the interest provisions and the source of the funds. "The agreement that is written out meets all these stipulations, so it's appropriate to loan the money to this organization," Hiebert said. Final approval follows additional documentation Before council voted, City Manager Troy Warkentin said the proposal itself had not changed since first reading earlier this month, but administration had provided council with the remaining legal documents required to complete the financing arrangement. Those included the loan agreement, a general security agreement and a promissory note. Warkentin also noted the amount being lent falls within the limits municipalities are permitted to loan under provincial legislation. Council then unanimously approved second and third reading of the bylaw, along with the agreements required to finalize the loan.