Intermedia Arts, the troubled Twin Cities arts organization that suspended operations last year in the face of crushing debt and cash-flow problems, has signed a purchase agreement for its property near the Lyn-Lake area of Minneapolis, the organization announced Tuesday.
The deal was executed last week with RightSource Compliance, a Twin Cities company that deals with affordable housing. RightSource was one of 16 entities to submit offers for Intermedia’s land and building, located in a trendy neighborhood with plenty of condo development.
Currently located in downtown Minneapolis, RightSource has between 40 and 60 employees, according to Omar Akbar, co-president of Intermedia’s six-member board. RightSource intends to make the Lyn-Lake property its new headquarters.
Terms of the deal were not disclosed.
“It looks like a growing and successful company and we thought it would be a good fit — an additive — to the neighborhood,” said Akbar.
“And it satisfies our criteria,” he added.
The purchase price will cover Intermedia’s debt, which Akbar said was “between $1 and $2 million and growing daily without any income.”
Akbar also suggested there could be leftover funds, allowing the Intermedia board to “figure out the best way to serve the organization’s mission in this next phase.”
During its 44-year history, Intermedia became a haven for underserved artists and populations, including members of the LGBT community, immigrants and people of color. The organization put operations on hold after running out of cash almost a year ago.
The deal is expected to close in August, Akbar said.
“I’ll feel like we’ve turned the corner when this gets done and we have a strong sense of what our proceeds are,” Akbar said.