By Leah Murray

City agrees to a loan guarantee for the Medicine Hat Golf and Country Club

May 16, 2017 | 5:00 AM

MEDICINE HAT, AB — City council has voted to approve a loan guarantee for the Medicine Hat Golf and Country Club.

The city says it’s not the one loaning the money, rather it’s acting as a co-signer for the MHGCC to secure a loan from RBC.

In December 2016 the club asked for the loan guarantee of $100,000 to help pay for a portion of the replacement of the greens for the 9th and 10th holes.

“The city is not giving them any money at all, not one cent,” said Councillor Julie Friesen.

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The MHGCC and all of its fixed assets are owned by the city.

The golf course is managed, operated and maintained by the club under a lease agreement, because of this it makes it very difficult and costly for the club to take out a loan without some backing.

Friesen said this is not the city giving the golf course money, it is the city backing the club to secure a loan.

“We’ve had to make some tough financial decisions this year that really impact people,” she said. “I didn’t want anyone thinking that we’re giving $100,000 away at the very same time that we were asking everyone to cut back on their budgets.”

If the club were to default on the payments the city would be on the hook to pay out the remainder of the loan.

In the past the City of Medicine Hat has provided MHGCC other loan guarantees. There was one for $600,000 in 2002, and one for $200,000 in 2010.

Based on the fundraising and financial reports from the golf course, and having made loan guarantees to them in the past, Friesen said she believes this is a safe venture.