Revelstoke Golf Club asks for rent forgiveness

Revelstoke Golf Club asks city to forgive outstanding rent, draft rent-free lease going forward.

Revelstoke city council is being asked to forgive all rent money owed to the city by the Revelstoke Golf Club, and to draft a new lease that eliminates the club’s rent.

A report to council from city finance director Graham Inglis recommends that “all outstanding rent, accrued interest and applicable taxes owed by the golf club to the City of Revelstoke be written off,” and that “staff be directed to draft a new lease with the golf club that eliminates any future rental obligations.”

The Revelstoke Golf Club leases the golf course from the city for an annual amount, however Inglis’ report shows the club has not paid rent for the past three years and owes the city about $43,000, including taxes and interest.

The golf club made the news in December after asking for direct city funding as part of the parks, recreation and culture budget. The club has been working hard to turnaround its finances after a series of losses in recent years.

The request was discussed at the closed-door portion of the Dec. 22 meeting of council.

According to a Dec. 22 report by Inglis to council that has now been made public, the golf club entered into a five year lease with the city starting Nov. 1, 2012.

Under the lease, the club would pay a lease equal to two per cent of gross revenues in the first two years, three per cent in the third year, and five per cent in the third and fourth years of the lease.

The club owes the city $35,858 in rent, not including taxes. Writing off the unpaid rent would impact the city’s bottom line, wrote Inglis.

“The city budgeted a general operating surplus for 2014  of $51,277. A write off of the club’s rent would reduce this budgeted surplus to $15,419.”

The write-off would be the equivalent of raising property taxes by 0.4 per cent, the report states.

The 2015 draft financial plan doesn’t include any rent from the golf club.

The report will be discussed at the Tuesday, Feb. 24, meeting of council.

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