Horsham Golf Club will use a $300,000 loan from Horsham Rural City Council (HRCC) to restructure its borrowings and strengthen its financial position across the next decade.
Councillors at the June Ordinary Meeting adopted a recommendation to provide the loan for a term of 10 years.
Horsham Golf Club has experienced financial difficulties since bushfires devastated its clubhouse in 2009.
President Leo Delahunty said the loan would provide a much-needed financial injection.
“The support of the Council is greatly appreciated as it has enabled the club to negotiate a settlement with its current funding provider,” Mr Delahunty said.
“The Golf Club board through negotiations with its bank, HRCC and community business leaders with the added funds from our supporter’s fund has been able reduce the clubs debt from $1.4 million in June 2018 to $660,000. This was made possible with the HRCC support.
“The Golf Club is an important community asset that provides national exposure due to its tremendous course rating. The club now has a sustainable bright future under its own control. Thank you to the HRCC and the community,” he said.
Under the formal loan agreement, no repayments will be made in the first five years and no interest will be charged until year six when a two per cent annual interest rate will be applied.
HRCC Chief Executive Officer Sunil Bhalla said the gesture of financial support aligned with the Council Plan 2019-23, specifically the section referring to community and cultural development.
Council has in the past provided loans to other community groups to allow for the development of sports and facilities and this loan will help Horsham Golf Club achieve similar outcomes.
“Horsham Golf Club is an important sport, recreation and tourism asset within the community and is highly regarded as one of regional Victoria’s best golfing experiences,” Mr Bhalla said.
“The clubhouse facilities also serve as an important community function centre for meetings and broader community and social use.”
Mr Bhalla said Council had been in regular contact with Horsham Golf Club during recent months.
“The Club and Directors first presented their situation to Council at a briefing last year,” Mr Bhalla said.
“The risk to Council will be minimised through the holding of security over the facility and establishing a regular reporting relationship with the club,” he said.
HRCC is also providing an events funding grant of $15,000 per year to support the Horsham Pro-am tournament for a three-year period from 2018 to 2020.
