H 36°, L 23° | Tomorrow: 
H 23°, L 9°It should never have come to this.
When philanthropist Jerry Frautschi made his multi-million-dollar donation to create the Overture Center, no one envisioned a series of events that would leave the city pondering a $1 purchase that could cost millions. But here we are.
After the stock market swallowed a critical portion of the Overture trust fund, Frautschi's donation would no longer cover the cost of construction. The city would have to bail them out, either by purchasing Overture for $1 and taking on all future operating costs, or through a refinancing plan that would preserve the trust fund with the city guaranteeing the center's outstanding loans.
Late Tuesday night, the City Council chose the lesser of two evils, opting for the refinancing plan. We applaud the council for taking a sensible, long-term approach, rather than cutting its losses and issuing a blank check for years to come.
Though city ownership may have been the safer option in the short term, refinancing could save the city millions in the long run. The refinancing option preserves the trust fund, which has rebounded considerably after its monumental dip. If the fund continues to grow — which appears likely thanks to a more sensible investment plan — it will be able to cover expenses that would have been left to the city under the other option.
The mayor warns that refinancing is a gamble that will cost the city dearly if the trust plummets again. This is certainly a legitimate concern, but the trust no longer appears to be on the verge of collapse. Rather, the trust now seems to be growing at a reasonable rate, turning what was once a disaster in the making into a sensible investment in the future of the center.
If the city had liquidated the trust and purchased the Overture, it would have faced a tremendous burden in the cost of operating a state-of-the-art center for many years to come. Now those costs can come from trust money.
The City Council was faced with a no-win situation Tuesday, but by limiting the long-term burden on taxpayers, it made the right choice.
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“After the stock market swallowed a critical portion of the Overture trust fund…”
So what idiots had the trust fund asset allocation such that this could happen? Was it malfeasance, misfeasance or just stupidity? Or was it greed for fees?