Golf club speaks out to address loan criticisms
MH Golf & Country Club reminds public that a $100K loan guarantee from the city won’t cost taxpayers a single cent
The general manager of the Medicine Hat Golf and Country Club is frustrated with criticism his club is receiving for asking for a $100,000 loan guarantee from the city.
Cameron Jacques is reminding those who have criticized the deal the bank loan guarantee is being asked to help with improvements to a city-owned property, and is not costing Medicine Hat taxpayers one cent.
“The golf club is responsible for all capital improvements on the course. We manage the property directly for the city. The city owns all the land. The city owns all the assets, the buildings and maintenance equipment in the clubhouse. However, all capital improvements we are responsible for ... When we try to make major capital improvements, we have to borrow money at times to facilitate them. When you go to the bank, and you don’t have much for security or collateral, it’s difficult to borrow money. That’s why we go to the city to guarantee the loan.”
The golf club is responsible for servicing the bank loan on its own, without any taxpayer money involved.
“The golf course will service the loan 100 per cent on their own,” confirms Todd Sharp, general manager of parks and recreation. “We’re just helping them get a better rate with the bank.”
Sharp says the city has guaranteed loans for the golf club in the past and has never lost money in doing so.
“Everything they build there becomes the property of the city; it’s not a privatelyowned golf course,” he reminds those who have complained about the loan guarantee.
Jacques says the $100,000 Royal Bank loan will go toward replacing the 80-year-old greens on holes 9 and 10 as part of a $200,000 improvement project, the balance of which is being raised by the members themselves. The work will also include improvements to the bunkers and the area immediately surrounding the greens. Jacques says the golf club tallies up to about a $14-million asset for the city, and a $200,000 investment in substantial improvements can only increase that value even more.
“It doesn’t matter which golf course you go to, it’s measured and judged by its greens,” says Jacques. “If the greens are great, people are going to want to be using your golf course and the membership is going to be happy. It helps us generate more revenue and become more sustainable in the future, financially.”