The Galesburg City Council will consider a one-time grant of $266,941.14 Monday to help All Stars Sports Academy of Western Illinois buy the building it already uses for youth programming and pay off loans tied to it.
All Stars Sports Academy currently runs youth enrichment programs out of 1855 E. Knox Street, the former Skate Palace. The proposed grant would draw from bond funds set aside under a 2023 ordinance for a community center project.
City officials have discussed a range of ideas for what a community center could look like, including a hub for community engagement, a recreation center, a youth and teen center, a senior center, after-school programming and childcare services, and social services support. The grant to All Stars Sports Academy would let the city fulfill part of that vision using bond funds already set aside, without taking on new long-term debt.
How the money would be used
The grant would cover four transactions: $130,000 toward purchasing the building, $106,462.03 to pay off a loan through Tompkins State Bank, $24,039.67 to pay off a second Tompkins State Bank loan, and $6,439.44 to pay off a loan through CBI Bank & Trust.
What the Academy would commit to
In exchange, All Stars Sports Academy would agree to keep operating the building as a youth community center for at least five years. The agreement requires the Academy to provide free youth enrichment programming averaging at least five days a week, or at least 20 hours a week, throughout that time.
The Academy would be responsible for all ongoing costs at the facility, including staffing, maintenance and operations.
Accountability measures
Because the grant involves public bond funds, the agreement includes several standard accountability measures. It is secured by a mortgage on the property, a promissory note, and a personal guarantee from Academy president Michael Spinks. The Academy must also submit annual reports breaking down its youth programming, including participation numbers and a cost breakdown per participant, along with yearly financial statements prepared by an independent CPA.
If the Academy meets all of its commitments through the five-year term, the city will forgive the debt and release the mortgage on July 21, 2031. A final report covering the full five years is due by that date as well.
What’s next
The grant agreement is on the agenda for Monday’s Galesburg City Council meeting.
