Thursday, 10 August 2017 09:30

City to amend terms of financial assistance agreement with Elmwood

Written by 
Rate this item
(0 votes)

The terms of the City of Swift Current’s agreement of financial assistance with the Elmwood Golf Club is set to change to allow the club to start with repayments.

Councillors approved a notice of motion at a regular council meeting on July 31 to advise the public of their intention to amend the financing terms for this agreement.
In 2014, the City entered into an agreement with the golf club to provide financial assistance through a construction line of credit for major renovations at the golf course.
That project is nearing completion and the construction line of credit therefore must change to a long-term financing arrangement.
The Elmwood Golf Club will then start to repay the City the amount of $2.9 million plus interest.
“Now that it’s essentially complete and been capped at an amount, it’s time to move it into long-term debt to lock it in at an interest rate so they can make their annual or monthly payments on it as time goes by,” City Chief Administrative Officer Tim Marcus said after the meeting. “In essence, it’s like building a house. You take out a construction loan and then when your house is finalized you get a mortgage and that’s essentially what the golf course is doing.”
The City originally agreed to provide the golf club with $2.4 million in financial assistance, but due to unforeseen expenses during the golf course renovation the agreement was amended in 2016 to add another $500,000 to the line of credit.
At the same time, the repayment terms were amended to allow the golf club to already start the repayment in July 2018 instead of July 2020.
The next step for the City will be to secure a long-term financing arrangement with a financial institution for the repayment amount, which will make it possible for Elmwood Golf Club to start payments.
“Now basically we will go out with a RFP for proposals from various financial institutions to provide us with the debt,” he explained.
“Then they will quote an interest rate and a term of 25-30 years and then whoever has the best proposal will come back to council essentially to be approved. Once that’s done and it’s placed, then the payments will start after that. So it will be after September sometime when the debt will actually be finalized and placed.”
This partnership between the City and the Elmwood Golf Club resulted in the development of the Cypress Point subdivision next to the redesigned golf course.
This residential development consists of 51 single-family lots, 21 multi-family lots, and 8 semi-detached lots.
“We sold seven residential lots for single family homes and then there were four lots for duplexes, which would be eight duplexes because each lot has two,” Marcus said. “So there would be a total of 15 dwellings built there so far.”
He noted that there are ongoing construction activities on the lots within the Cypress Point subdivision.
“There are several single-family homes that are under construction and two of the four duplexes are quite well under way, in fact one is almost complete,” he said. “So it will start to look really good and we’re also going to do some work on the park in the middle of the cul-de-sac.”

Read 455 times
Matthew Liebenberg


More Swift Current News...