Monday at Swift Current's city council meeting, a motion was passed to move Elmwood Golf Course's construction line of credit to long-term financing.
Elmwood leases their land for $1 a year from the city. While the $2.9 million for the construction project is officially on the city's books, in essence, it's a loan from the city to be paid back over time.
Initially the project was slated to cost about $2.4 million. The city's chief administrative officer, Tim Marcus, said the increase from $2.4 to $2.9 million for the project was due to higher delivery costs for sand and design changes, and the construction process being expediated.
Now the city will be shopping interest rates.
"Now basically we'll go out with an RFP (request for proposal) with proposals from various financial institutions to provide us with the debt, and then they'll quote an interest rate and a term of 25-30 years, and then whoever has the best proposal will come back to council essentially to be approved," said Marcus. "Then once that's done and it's placed, the payments will start after that."
Marcus said the debt will be finalized and placed after September.
There are 81 lots being built and sold as part of the Cypress Point residential community within Elmwood. None of the renovations are coming from the $2.9 million.
With all the renovations being paid for by the golf course, and no tax dollars (once things are paid back) Swift Current Mayor Denis Perrault said it's "one of the most interesting partnerships [he's] been part of."
From each lot sold, $20,000 will be paid back to the city. There are 21 three-plexes, eight duplexes and the rest are single-family homes.
At this point Perrault said all the duplexes and seven single-family homes have been sold.