Kincardine approves loan to Friends of the Pavilion
By Liz Dadson
 

Kincardine Council

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Kincardine council has taken out a $350,000 loan over 10 years on behalf of the Friends of the Pavilion.  In committee-of-the-whole Wednesday (Nov. 4), treasurer Brenda French explained that the money would be borrowed from the Canadian Imperial Bank of Commerce (CIBC), at a fixed rate of about 4.27%, with a loan agreement signed between the municipality and the Friends. Also, the current operating agreement with the Friends has been amended, she said.

French said Infrastructure Ontario's long-term rates were lower, at about 3.89%, which could be accessed for this project. However, there would be additional paperwork and a delay in getting the money to the Friends' outstanding creditors, she said, adding that the deadline may also have passed to get a loan through Infrastructure Ontario.
 

"I realize it would cost less with Infrastructure Ontario," said French, "but we need the money now. Plus, the paperwork would take about four days to fill out."

The municipality will be responsible for paying back the bank, and the Friends will fund the payments to the municipality, said French. The operating agreement has been amended so it runs the same term as the loan agreement, she said.

"Well, let's go ahead and do this then," said councillor Ron Hewitt.

Council agreed and later in the meeting gave final approval to the loan.

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Tuesday, November 10, 2009