ORANGE councillors have insisted Duntryleague Golf Club repay its $66,000 loan, and not have the bill wiped clear by declaring it a donation.
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In a closed session last week, councillors decided not to convert the interest-free amount into a donation leaving the guesthouse’s future in limbo.
Instead, the councillors decided the loan must be repaid in monthly instalments of $2129.03 – any default would cancel the repayment plan and require the full amount to be settled.
The council originally loaned $110,000 to the club in November 2011 for fire upgrades to the guesthouse.
In 2013 and 2014, club management applied to convert the loan into a grant, however public pressure meant the loan was retained.
In 2014, the loan term was extended from three years to five years and annual payments reduced to $22,000.
Both previous matters were considered in open council, but the latest item was moved behind closed doors due to “the personal hardship of any resident or ratepayer” under the Local Government Act.
Club president and Duntryleague Mansion Foundation chairman John Cook said council had advised him to apply to have the remaining amount deemed council’s contribution to the foundation.
We want to make sure it doesn’t get away from us.
- Duntryleague Mansion Foundation chairman John Cook
The foundation was a council requirement for the loan, intended to be funded by 10 per cent of accommodation income and community donations.
“I’m frustrated with the process,” Mr Cook said.
“What we need to do now is sit down with the council just to see where we stand with the foundation.”
Mr Cook said the club was solvent and trading well despite the hit it took to business during a wet winter, but it would take up to six years before the club was debt free.
“The club has never defaulted on any loan and we will honour our loans,” he said.
“But there’s $300,000 in work to do in the porte-cochere, painting and the tower, and we made [just] $60,000 last year.
“We want to make sure it doesn’t get away from us.”
Mr Cook said the club intended to contribute $4000 a month to the foundation, but the amount would have to be cut to service the loan, and the amount needed was in the millions of dollars.
“We won’t be able to raise the amount that’s going to be needed to do all that work – we have to start looking at state and federal grants, which generally meet you dollar for dollar,” he said.
“If the community doesn’t want it, the golf club’s got to make a decision.”
Mr Cook emphasised the club and the foundation wanted to work with the council to achieve a solution.
However, mayor John Davis said councillors decided they could not afford to lose ratepayers’ money.
“We appreciate the tourism and income the facility brings into Orange by people looking at the place,” he said.
“But on behalf of the community, we have done what we think is fair.”
He said potential contributions to the foundation would be considered when it was better established.