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St. Paul Town Council voted to purchase the St. Paul Golf Club’s assets for $120, 305.38. The Town also passed Bylaw 1220 which states the Town will take over the nearly $1 million, mortage and line of credit, debt the club incurred from Servus Credit Union in favor of the St. Paul Golf Club. *The debt from Servus includes the mortage on the Clubhouse, the Town took over ownership of the building. This debt is not the operational debt, the Golf Club is still dealing with that debt. The club was closed in the late fall of 2015 after falling over, what was then believed to be, $300,000 in debt.
There was nearly 30 people in attendance at Tuesday’s Council meeting to hear the passing of the Bylaw; however only two citizens spoke regarding the passing, both in favor of the Town’s handling of the situation.
Chief Administrative Officer for the Town of St. Paul, Harvey Filger read for Council a letter received from the Board of Directors of St. Paul Golf Club. The letter requested that the Town purchase the assets from the club for $120, 305.38. The letter also includes the first right of refusal, for the Town, to purchase the items from the Pro Shop. Council voted all in favour of purchasing the Golf Course’s assets.
The Town also carried second and third readings of Bylaw 1220; which states that the Town will take over the Golf Club debt to Servus Credit Union. Town Council felt that it was in the best interest of the Town to have a successful operation of the golf course, because it is on land owned by the Town. The bylaw makes the Town the guaranteer of the debt of $932, 459.03 owed to Servus Credit Union by the St. Paul Golf Club, further the bank has requested the amount be paid in full.
For the Town to pay this debt the Town has requested to borrow $815, 000 from Servus to ensure that they can make payments on the guarantee. The Town of St. Paul has also requested a $2 million overdraft from the bank, to be used on a as needed basis, for general operations of the Town.
Bylaw 1220 was carried by Council, thus putting it in effect on January 11th, 2016.
