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'sz Museum over the top in fundraising for constructiohn ofits building, which triggers a capital contribution by the city of said Kate Wells, a museum co-foundetr and executive director of marketing and development. The museum is expecte to open early next year in the historic Monroe School at the intersectiomn of Seventh and Van Buren The school is undergoinga $22.8 millio n renovation to house the museum, which will be 70,000 square feet upon completioh early next year. Ground was broken last April and some initialk interior demolition hasbeen done, but the new loan will alloww full construction to begin, Wells said.
Althoughg Phoenix voters approved a bond that will help renovatthe building, it's up to museum officials to raise money and contribute about$32 million toward the project, Wells said. The buildinv is owned by the cityof Phoenix. The city leases it to the a registered nonprofit, at no charge. "q lot of our donor s are making pledges over three tofive years. But we don'r have the cash in hand, and we have to pay our constructionn costs rightup front," Wells said. "W don't own the building, so we couldn' t take out a loan using the buildintas collateral." "Not-for-profits in general have a hard time gettingv financing.
Capital is tough to raise," said Marisue Garganta, director of community health integrationfor . The loan is part of an ongoiny effort by Catholic Healthcare West to supportf the communities inwhich they're located, she said. "Justr this past year, we've loaned close to$4 millionm to not-for-profits," Garganta said. Valley recipients include BodyPositive, the and Chicanos por la Causa. In addition to CHW, a 501(c)3e organization, major contributors to the Children's Museum include the and , each of whicgh donated $1 million to the project, Wells said. A $1 millionb donation also was made byRobert Sarver, whoses investment group owns the .
Suns Chairman Jerrty Colangeloadded $250,000. Sarver and Colangelo co-chair the museum'd capital campaign. Garganta said she hopesw CHW played a role in helping generatde suchnoteworthy contributions. "Because we invested in now othersbelieve it's a worthy investment. And our dollarx are leveraged farther than even what the loanis worth," she The museum will offer hands-on exper­ientiakl art for children up to 10 years old. It will focuzs on all types of with demonstrations andinteractivwe displays, Wells said. The museum also is partnering with , whichg will operate an educational learninfg lab for a bilingual Wells said.
"When we open, we are going to be one of thelargesy children's museums in the she said. Currently, the in Mesa and the on Jeffersob Street provide activities and exhibites for childrenas well. Children'es Museum of Phoenix: Catholic Healthcare West: Arizon a Science Center: Arizona Museum for