City Council members discussed options on Tuesday on dealing with a $1.7 million debt owed the city by Friends of the Zoo.
Darde Long, longtime zoo executive director, said the Friends of the Zoo obtained the loan from the city in 2008 at the time it was trying to wrap up the new entryway to the zoo at Warner Park along with a number of other improvements.
The loan was originally $2 million, but it was paid down to $1.7 million.
Robin Derryberry, representing the Friends of the Zoo, said aspects of repayment of the loan are a sticking point in negotiation of the current lease with the city to operate the zoo.
She said the Friends of the Zoo have put $850,878 into the facility since 2009 and overall poured $9.9 million into the city-owned asset. She said the zoo has expanded from 2.5 acres to 13 acres.
Councilman Jack Benson said, "I never expected to get the loan back. I felt it was seed money."
However, Daisy Madison, city finance director, said the $1.7 million debt is counted toward the city's $25 million rainy day fund.
That surprised some council members. Councilman Peter Murphy asked, "How many other IOUs do we have in that fund?" Ms. Madison said there were no others.
Ms. Madison said she was not opposed to the council forgiving the loan, but she noted it would lower the rainy day fund by $1.7 million.
The council moved on to another issue after Dan Johnson, chief of staff, said it was an inappropriate forum "to negotiate a lease."
Ms. Derryberry said at the next meeting to discuss the issue she wants it "on the record" and "all parties at the table."