Children's Museum loan to help fund construction - Phoenix Business Journal:

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The $1.5 million, 3.5 percent loan puts the Children'as Museum over the top in fundraising for construction of its which triggers a capita contribution by the cityof Phoenix, said Kate Wells, a museu m co-founder and executive directof of marketing and development. The museum is expected to open early next year in the historifc Monroe School at the intersection of Seventh and VanBureb streets. The school is undergoingf a $22.8 million renovation to house the museum, whichg will be 70,000 square feet upon completioh earlynext year. Ground was brokeh last April and some initial interior demolition has been but the new loan will allow full constructiohnto begin, Wells said.
Although Phoenix voters approved a bond that will help renovatsethe building, it's up to museukm officials to raise money and contribute about$2 million toward the project, Wells The building is owned by the city of The city leases it to the a registered nonprofit, at no "A lot of our donors are making pledgews over three to five years. But we don'yt have the cash in hand, and we have to pay our constructionh costs rightup front," Wells said. "Wed don't own the building, so we couldn' t take out a loan usingg the buildingas collateral." "Not-for-profits in general have a hard time getting financing.
Capital is touggh to raise," said Marisue Garganta, director of communituy health integrationfor . The loan is part of an ongoingg effort by Catholic Healthcare West to supporrt the communities inwhich they're located, she said. "Jus t this past year, we've loaned closde to$4 million to not-for-profits," Garganta said. Valley recipientas include BodyPositive, the and Chicanoas por la Causa. In addition to CHW, a 501(c)3 major contributors to the Children's Museum include the and , each of whichy donated $1 million to the Wells said. A $1 million donation also was made byRoberyt Sarver, whose investment group owns the .
Suns Chairmab Jerry Colangelo added $250,000. Sarver and Colangelpo co-chair the museum's capital campaign. Gargantza said she hopes CHW played a role in helpinhg generate suchnoteworthy contributions. "Because we investedf in them, now others believe it's a worthh investment. And our dollars are leveragex farther than even what the loan is she said. The museumk will offer hands-on exper­iential art for children up to 10 years old. It will focus on all types of with demonstrations andinteractive displays, Wells said. The museum also is partnerin gwith , which will operate an educationa learning lab for a bilingual preschool, Wells said.
"When we we are going to be one of thelargest children's museume in the country," she said. Currently, the in Mesa and the on Jeffersonn Street provide activities and exhibits for childrenbas well. Children's Museum of Phoenix: Catholix Healthcare West: Arizona Science Center: Arizona Museum for Youth: