OLDS — Mayor Michael Muzychka says the Olds Institute (OI) board is not irrelevant, despite council’s call "to increase the oversight of the town's investment in the operations of Olds Institute, including O-NET."
In late May, council not only made that call, but also announced a desire to work out with OI the repayment of a $14 million loan as part of a larger effort to have that entity’s loan refinancing to be “reorganized” and "additional process thereafter."
Olds Institute is a non-profit community and economic development organization, an entity founded in 2001 by the town along with Olds College, Olds & District Chamber of Commerce and the Olds Regional Exhibition.
It’s tasked with encouraging the development of Olds as an innovative and entrepreneurial community and improving quality of life for its residents with the help of volunteers.
OI oversees Olds Fibre Ltd., a for-profit business that owns O-NET, a community-owned firm that provides high-speed internet as well as phone and TV service.
Also within that umbrella organization is Mountainview Power.
In an emailed statement, Muzychka said the OI board is still relevant, despite the town’s announcement.
“As mentioned previously the town is looking at greater oversight on its investment in Olds Fibre Ltd./O-NET,” he wrote, noting “Olds Institute is responsible for a number of other areas, such as Mountainview Power.”
In its late May news release, Olds council said it has decided to “require the re-organization of the loan financing” for OI after “significant and lengthy consideration.”
It said the purpose of the decision is “to increase the oversight in the town’s investment in the operations of Olds Institute, including O-NET.”
Several years ago, the town arranged to obtain loans totalling $14 million to help to finance installation of fibre optic lines to homes and businesses throughout Olds to connect customers to O-NET.
“The council has begun the first steps toward this process through legal counsel, which includes the request for repayment of the $14 million loan to Olds Institute and additional process thereafter,” the release said.
Muzychka was asked what the phrase "additional process thereafter" means.
He said it means “the development of any new terms or arrangements under which the loans continue to exist,” adding, “it’s really too early to say what this may involve and the time may be needed to complete it.”
Muzychka said council called for these moves because “the town council determined that it needed to have a more direct understanding of the status of Olds Institute, and the investments made by Olds Institute including subsidiaries like O-NET, to ensure that the town is acting prudently, is fully informed, and is protected with respect to the loans.”
“Ultimately,” he wrote, “town council has to answer to the residents of Olds for these financial transactions, therefore a prudent level of oversight is critical to council.”
Muzychka was asked how long council has been looking at the possibility of reorganizing OI’s loan financing.
“We have been in discussions with Olds Institute Board since the fall of 2018 in addressing OI’s mandate,” he wrote. “However, the town has been studying this situation at greater detail since the fall of 2019.”
Muzychka was asked if he believes there’s a possibility council’s announcement will hurt its relationship with OI and its board, despite a statement that its goal is “to work collaboratively and co-operatively with Olds Institute toward a mutually agreeable solution.”
“No, he wrote, “our aim is to ensure that Olds Institute, and its subsidiary O-NET, remain vibrant and substantial contributors to our community.”
“Olds town council has been a strong supporter of O-NET in the past and will continue to do so during this re-organization,” the release said.
