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The Napa Valley Opera House nonprofit is entering into a new loan agreement with the City of Napa that will release the organization from its debt to the city and associated obligations. The Napa City Council on Tuesday approved the new agreement, which sets terms for what the historic opera house property can be used for and gives the city the right to use the ballroom 20 times each year. In return, the city is set to forgive an outstanding loan balance of $700,000.   Under the agreement, the city will also be reimbursed for expenses related to its use of the property by up to $10,000 annually. The city’s usage term ends on the later of either: Dec. 31, 2030 or whenever the opera house lease to the Blue Note Napa — the jazz club and restaurant that occupies the first floor of the building — is terminated.

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