10. LOAN AGREEMENT WITH PINEVIEW GOLF COURSE

ACCORD DE PRÊT AVEC LE CLUB DE GOLF MUNICIPAL PINEVIEW

 

 

 

Committee Recommendation

 

That Council provide financing to the Pineview Golf Course for a new maintenance building through the issuance of a loan of up to $200,000 for a ten year period at the rate of 5%.

 

 

Recommandation du comité

 

Que le Conseil accorde des fonds au Club de golf municipal Pine-View pour permettre l'aménagement d'un nouveau bâtiment d'entretien, en consentant au Club un prêt de 200 000 $ payable en 10 ans à un taux d'intérêt de 5 %.

 

 

 

 

 

Documentation

 

1. Corporate Services Department General Manager's report dated 11 September 2003 (ACS2003-CRS-FIN-0035).

 

2. Extract of Draft Minutes, 16 September 2003.

 

Report to/Rapport au :

 

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

 

and Council / et au Conseil

 

11 September 2003 / le 11 septembre 2003

 

Submitted by/Soumis par : Kent Kirkpatrick, General Manager/Directeur général,

Corporate Services/Services généraux 

 

Contact Person/Personne ressource : Lloyd Russell, Director, Financial Services

Financial Services/Services financiers

(613) 580-2424 x21312, Lloyd.Russell@ottawa.ca

 

Ref N°: ACS2003-CRS-FIN-0035

 

 

SUBJECT:

LOAN AGREEMENT WITH PINEVIEW GOLF COURSE

 

 

OBJET :

ACCORD DE PRÊT AVEC LE CLUB DE GOLF MUNICIPAL PINE-VIEW

 

 

REPORT RECOMMENDATION

 

That the Corporate Services and Economic Development Committee recommend Council provide financing to the Pineview Golf Course for a new maintenance building through the issuance of a loan of up to $200,000 for a ten year period at the rate of 5%.

 

 

RECOMMENDATION DU RAPPORT

 

Que le Comité des services organisationnels et du développement économique recommande au Conseil d'accorder des fonds au Club de golf municipal Pine-View pour permettre l'aménagement d'un nouveau bâtiment d'entretien, en consentant au Club un prêt de 200 000 $ payable en 10 ans à un taux d'intérêt de 5 %.

 

 

BACKGROUND

 

The Pineview Golf Course Board of Directors has approved the construction of a replacement maintenance building to replace an existing structure that suffers from a number of structural problems, lacks proper chemical storage facilities, is too small to accommodate the equipment required to maintain the course, and does not meet health and safety and fire code requirements.

 

In looking at the financing of the project, the Board has approached the City regarding the provision of a loan for the project. Since the Pineview Golf Course Board is established as a local board of the City, it is recommended that the City provide a loan arrangement for the project.  Similar financing arrangements have been made successfully in the past. The loan would be fully repaid through revenues from the golf course operations based on the business plan of the facility.

 

The project is estimated to approximately cost $200,000.  The loan would be for a 10-year period with annual principal and interest payments.  It is recommended that the financing be granted at a rate equal to the city's ten-year installment borrowing rate of 5%. 

 

 

CONSULTATION

 

Public consultation was not required.

 

 

FINANCIAL IMPLICATIONS

 

Funds will be advanced to the golf course and recovered over the ten year period with interest.

 

 

SUPPORTING DOCUMENTATION

 

No supporting documentation is attached.

 

 

DISPOSITION

 

Financial Services and Legal Services will prepare the necessary documentation to have the loan  executed and funds provided.

 

 

LOAN AGREEMENT WITH PINEVIEW GOLF COURSE

ACCORD DE PRÊT AVEC LE CLUB DE GOLF MUNICIPAL PINEVIEW

ACS2003-CRS-FIN-0035

 

Moved by Councillor M. Bellemare

 

That the Corporate Services and Economic Development Committee approve the addition of this item for consideration by the committee at today’s meeting, pursuant to section 82(3) of the procedure by-law (being by-law no. 2002-247).

 

CARRIED

 

 

Mayor Chiarelli declared a conflict of interest in this item, noting his association with the Cedarhill Golf and Country Club.  The Mayor did not take part in the discussion or vote on the matter.  Vice Chair Bellemare assumed the chair.

 

Kent Kirkpatrick, General Manager, Corporate Services explained this request had come from the Pineview Golf Course Board.  Their business plan for 2004 involves the construction of an equipment storage shed at a cost of $200,000.  He said given that the golf course is a municipal facility, from a financial perspective it was reasonable that the City would provide the financing as opposed to a commercial institution at a higher rate of interest.

 

Vice Chair Bellemare asked if this type of loan agreement was something the City has arranged in the past for other external boards.  Mr. Kirkpatrick confirmed this was not an unusual practice and noted the Board was currently repaying the City for a loan financed by the former City of Gloucester.

 

The Committee then approved the staff recommendation.

 

That the Corporate Services and Economic Development Committee recommend Council provide financing to the Pineview Golf Course for a new maintenance building through the issuance of a loan of up to $200,000 for a ten year period at the rate of 5%.

 

CARRIED with Councillor A. Munter dissenting.