Councillors leery about precedent-setting loan

Two members of Penticton City Council believe a precedent could be set by agreeing to an interestfree loan for the Penticton Curling Club.

“I hope that we don’t start getting in the business of loaning money, which is ironic because that’s what I do for a living,” said Coun. Campbell Watt, a mortgage broker.

Watt used the Penticton Golf and Country Club as a hypothetical example stating they could come and request a $1-million loan for an irrigation system on the city-owned land.

Coun. Helena Konanz shared Watt’s concern.

“I appreciate all of our non-profit organizations. They do some fantastic things,” Konanz said, but she worries a precedent could be set.

Even with the concerns, council voted 6-0 in favour of a $45,000 interest-free loan to the curling club in a 10-minute special meeting, Tuesday. Coun. Max Picton was absent.

The loan will allow the club to repair and upgrade its ice-making equipment, which is 42 years old and failing. The money will be used to purchase a new compressor and repair the club’s second compressor as well as coils on the exterior wall which are used for cooling purposes.

“Are they putting aside any money as a club for when the second compressor breaks down?” Konanz asked.

City land administrator Peter Wallace said the club now has “a better plan in place to improve the profitability of the club.”

The loan will be amortized over five years, with monthly payments of $750. Interest, at a rate of prime (2.95 per cent) plus three per cent, would only be charged on delinquent payments.

The club leases the rink from the City of Penticton for $1 per year under an agreement that calls for the tenant to look after the ice plant. However, council heard it’s not unusual for the city to be asked to help one of its nonprofit tenants.

Coun. Judy Sentes said the club is hosting the World Curling Tour cash spiel Nov. 3-6 — “a highly desirable event” — which is expected to attract to the club 24 of the top men’s rinks from around the globe, including those skipped by the likes of Kevin Koe and Mike McEwen.

“If we do it well there’s a very good chance we (Penticton) could get it on a continued basis,” Sentes said.

The club will also be pressed into service as a practice facility during the Scotties Tournament of Hearts, which will see Canada’s top women’s rinks vie for a national title from Jan. 27 to Feb. 4 at the South Okanagan Events Centre.