Kincardine to take out bank loan to cover pavilion costs
By Liz Dadson

Kincardine Council

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Kincardine council has directed its treasurer to seek out the best rate for a bank loan to pay off the outstanding debt of the Kincardine Pavilion.

In committee-of-the-whole April 15, treasurer Brenda French outlined ways the municipality could borrow the $350,000, with Kincardine Pavilion Inc. paying back the municipality over a 10-year term.

French said the municipality could go to public debenture but that has not been hugely successful, particularly beyond a five-year period. Other methods include private (institutional) debenture; OSIFA (Ontario Strategic Infrastructure Financing Authority) debenture at 4.26% over 10 years but it takes six to eight weeks to get the funds; or a bank loan, with a quote from CIBC at 4.43% which is slightly more expensive than OSIFA.

Further quotes could be solicited from other banks, said French, noting she checked with CIBC because the municipality currently holds accounts at that institution.

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04/05/2009 09:04 PM

French said she could shop around for a better rate than the 4.43% quote from CIBC.
"If we can get a better rate from OSIFA, why don't we front the interim two months and go with them?" asked councillor Ron Hewitt.

"For the two-tenths of a percentage point (between OSIFA and CIBC), I think we could see about the banks matching that rate if we twist their arms," said deputy mayor Laura Haight.

Council agreed to have the treasurer shop around for additional quotes for bank rates and then make application to the most advantageous source. A bylaw will come to council May 6 for the bank loan and the agreement with Kincardine Pavilion Inc.

French also pointed out to council that the repayment plan, taken on by Kincardine Pavilion Inc., will include a signing fee of $250 and a monthly processing fee of $20