(rdnewsNOW file photo)

By Troy Gillard

$1.5 million still owing

Another year sought for River Bend to resume loan payments

Oct 1, 2020 | 4:57 PM

Another facility-operating society in Red Deer is coming under financial scrutiny.

In 2004, the River Bend Golf and Recreation Society was given a $1.7 million loan by the City of Red Deer for clubhouse renovations and expansion. The loan was to be repaid over a 20-year period.

Sixteen years later, however, only three payments have been made totaling about $125,000, leaving over $1.5 million still outstanding.

This raised the eyebrows of several city councillors on Monday as they discussed first reading of a loan amendment to defer annual payments by another year, until December 2022.

The loan agreement states that payments of $140,000 are to be made each year on Dec. 1 until it is fully paid back.

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Sarah Tittimore, the City’s general manager of community services, told council that while River Bend is experiencing a great golf year in 2020 they are still recovering from “significant challenges” caused by the COVID-19 shutdown at the start of the year. She said it remains to be seen whether golf-related revenue collected later on in the season will offset the early losses.

Council did pass first reading to the amendment on Monday, with Councillor Buck Buchanan casting the lone dissenting vote. The matter will be back before council for final approval on Nov. 9.

In June, council approved a one-year extension of the licensing and operating agreement with the River Bend Golf and Recreation Society as Deloitte LLP conducts a financial and operational review.