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Kincardine council has been waiting since February for information
from the Friends of the Pavilion, so it is a little leery about
taking out a loan for $350,000 to help the group pay off its debts.
In committee-of-the-whole June 17, treasurer Brenda French
recommended that the municipality borrow the money from the Canadian
Imperial Bank of Commerce (CIBC), with a blended payment, 10-year
term, 10-year amortization, fixed rate bank loan; and set up a loan
agreement between the municipality and the Friends of the Pavilion
to pay off the loan in 10 years. Also, the operating agreement
between the municipality and the Friends should be amended extended
to 2019 when the loan would be paid off. The bank rate for the loan
would need to be updated, said French. As of June 12, it was
estimated at 4.5 per cent.
Councillor Guy Anderson asked if the renovations to the pavilion are
completed. French said the work is all done and the Friends have
installed two of the air-conditioners with one more to go. "They are
working on approvals for a temporary patio structure on the
lakeside," she said, adding that the $350,000 would pay off the
accounts-payable and private loans used to renovate the building.
She said the Friends have not compiled the required information for
the municipality, so should she proceed with a bylaw for the loan?
"I think we should get a financial report and the building
information from the Friends of the Pavilion before we go through
with a bylaw," said mayor Larry Kraemer.
"Can we get a bank loan rate guaranteed for 30 days?" asked
councillor Ron Hewitt.
French will look into that. (next column)
21/06/2009 10:06 PM
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She cautioned that the Friends were to present information to the
municipality two years ago. They then made a presentation to council
in February and were to have the information ready, but the
municipality still has not received it.
"If they are tardy, that’s not our problem," said Anderson. "If the
bank rates go up, they pay it. What happens if they default?"
"We own the building," said French. "If nobody takes over the
payments, we are stuck with the loan."
Councillor Mike Leggett asked if everything in the building (all
chattels) is included with the building. "We own only what’s ours –
the building and the appliances," said French.
"I would suggest a provision that everything goes with the
building," said Leggett. "If we get a secure rate for 30 days, we
give the Friends of the Pavilion 20 days to get the information to
us. We can’t get a loan for them if they don’t fall in line."
Chief administrative officer John deRosenroll summed up that council
wants the following: a list of what the $350,000 will be spent on;
available loan rates; full information from the Friends of the
Pavilion; and a provision that all chattels in the pavilion are tied
to the loan for default purposes.
Deputy mayor Laura Haight said council should have a regular
reporting mechanism for the Friends of the Pavilion so the
information is always up to date.
Council agreed the Friends should be reporting to the recreation
committee rather than economic development, and on a regular basis.
Council also agreed to have the chattels tied to the loan.
Further discussion was deferred until after council receives a
report from the Friends of the Pavilion.
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