Following a profitable 2020 season, the board of the Vulcan Golf and Country Club (VGCC) has agreed to pay more than $40,000 this year towards the loan taken out to build the club’s back nine.
Under an agreement with the club, the Town of Vulcan has been making the annual loan payments on the $1.3 million loan, which was taken out in 2004.
Given the strong, albeit non-normalized, financial performance of the VGCC during the 2020 fiscal year-end, the board of the VGCC would like to make a contribution of $43,370 directly to the Town of Vulcan,” reads a March 11 letter signed by President Jeff Mix, Secretary Tyler Wolfe and Treasurer Turner McKay.
Town council discussed the letter during its March 22 meeting.
The golf club has historically broken even over the past 15-plus years, but during the 2020 golfing season a record number of non-local players golfed at Vulcan’s course, and this, as well as “severe” cost-cutting measures due to COVID-19, resulted in “strong profitability,” reads the letter.
“Our course has suffered from a maintenance perspective for the past 15-plus years given our low historical profitability and resulting lack of funds available to correct same,” the letter reads. “Although we have budgeted a significant portion of our profitability to begin to correct some key areas of our course that have been neglected in the past, we recognize that not all organizations were able to experience a jump in profitability during 2020, especially our partners – the Town of Vulcan.
“We hope that this contribution to the Town serves as a testament to the VGCC’s commitment to the partnership we entered into to construct the new nine holes, and related neighbourhood of Whispering Creek.”
Kim Fath, the Town’s administrator, said the $43,370 is half of the annual payment the Town makes towards the golf course loan.
In the letter, golf club officials asked to meet council to discuss the specifics of the loan guarantee agreement.
Tom Grant, Vulcan’s mayor, told council that the agreement states that the loan is the golf club’s “until the loan is paid off 100 per cent back to the Town.”
“There are some of us, and some people, that believe there should be a change in that philosophy of what that agreement says,” said Grant during the March 22 meeting.
As the loan guarantee agreement is a legal document, council should meet in private with golf club officials to discuss the agreement, said the mayor.
Council agreed, carrying a motion directing administration to invite the Vulcan Golf and Country Club’s executive to attend a special council meeting to discuss the loan guarantee agreement.