Carling council has guaranteed their share of the $13.5 million dollar line of credit being obtained to fund the construction of the West Parry Sound Recreation and Cultural Centre.
The five municipalities backing the project are each covering a portion of the loan. Under the agreement, Carling’s share is $1.5 million dollars, while Parry Sound’s $3.9 million, Seguin’s portion is $3.5 million, McDougall is responsible for $2.6 million, and the Township of the Archipelago $1.9 million.
At a meeting on March 25, Carling CAO Kevin McLlwain explained that the loan is bridge financing, which will be repaid when government grants and fundraising dollars are received.
“What it does is it provides a cash flow while we are waiting on grant money to be returned to the Board,” he said. “There is a timing gap of invoices due and the upper levels of government reimbursing the board for those expenses. This covers that differential.”
McLlwain says the loan could lead into long-term financing should fundraising not be successful.
