River Bend could get extension to pay off often-deferred $ 1.7 million loan – Red Deer Advocate
It’s a great golf season, but the River Bend Golf and Recreation Society could still get an extra year to pay off a long-standing loan from the city.
In 2004, River Bend received a loan of $ 1.7 million from the city for a clubhouse renovation / expansion project.
The Council learned this week that only three payments had been made so far. After more than 15 years, approximately $ 125,000 of the loan has been repaid, and $ 1.544 million is still owed.
Some of the reasons cited for the delay are the fluctuating popularity of golf, the declining provincial economy, some rainy and cool summers, and past road construction.
Red Deer City Council previously ordered a financial and operational review of the River Bend Golf and Recreation Area due to fluctuating golf course use and the outstanding loan.
But the pandemic shutdowns have interrupted Deloitte LLP’s review of sustainability, service delivery and governance issues.
To allow the study to be finalized, the town hall decided in June to extend its contract with the operator of the installation for one year.
This week, the council was also asked to extend the loan repayment term by one year, until December 2022.
Several advisers have asked if this is necessary, given the great year of golf that the pandemic has created by taking so many other activities off the table.
Sarah Tittemore, the city’s general manager of community services, confirmed that River Bend is having an ‘exceptional’ year of golf, but she said it followed significant challenges to the course caused by the COVID-19 lockdown last spring. .
It is not yet clear whether higher golf revenues received later in the summer will fully alleviate a slow start to the season, she said.
The Board heard that the loan repayment extension goes hand in hand with the one-year extension granted for the financial and operational review of River Bend.
All except Con. Buck Buchanan finally gave the first reading on the extended loan repayment terms. Final approval will be discussed by council on November 9th.
Public comments will be accepted by the City until that date.
Red Deer City Council