THE embattled Millicent and District Community Club has again been thrown a lifeline by Wattle Range Council.
The not-for-profit organisation has received financial support in various guises from local government for over 20 years and Tuesday’s monthly council meeting decided this would continue.
After confidential discussions lasting 30 minutes, council resolved to defer outstanding principal repayments on its loan until March next year.
Council deputy chief executive Paul Duka said the then Millicent District Council had provided an initial loan of $400,000 to the club and the loan had been refinanced in 2002 and 2012.
He said the principal debt of the club currently stood at $202,000 and it was $7600 in arrears in its repayments to council.
Community club honorary operations manager David Walshaw said the current board of management had inherited the financial problems.
According to Mr Walshaw, one of the options under consideration was to sell the freehold of the building to an investor and then lease it back.
“We are working hard to keep the club open and there’s no doubt we’re looking to council to give us a bit of leeway to our current debt,” he said.
“We are looking at a payment holiday.”
He said the opportunities to increase revenue are limited and there was no “silver bullet” to fix the problem.
“We’ve commenced Sunday trading which is proving popular.”
The club’s financial situation prompted a mixed response from councillors after they emerged from their confidential discussions.
Cr Dale Price said he believed there was a degree of optimism.
“I see us supporting other community groups in similar ways and I’d be happy for us to consider a six month moratorium as an act of good faith,” he said.
Cr Kevin McGrath said the coming six months will give the club the busy time of year.
“If they can’t pick up their revenue after the next six months, they’re in dire straits,” he said.
Cr Gwenda Lawlor expressed her doubts.
“I am very sceptical about it,” she said.
Cr John Drew said there was another message in this matter.
“We know many businesses in Millicent are struggling and another one closing doesn’t send a good message,” he said.
“There’s a social issue to this that mustn’t be forgotten.”
Cr Glenn Brown said the club has been an institution which had been around town for a long time.
“We’re giving the club an opportunity for them to be masters of their own destiny,” he said.
“Like Cr Lawlor, I’m not confident they can turn the ship around but we’ll give them a chance.
“We can’t continue to review and we’ve adjusted payments to assist their ability to repay.
“Another six months the writing will be on the wall and I think they will know themselves”.
Meanwhile, the club’s financial situation has prompted a Millicent ratepayer and hospitality industry investor to approach The South Eastern Times.
“The Millicent community needs to question the ongoing viability of the club,” the investor said.
“As a business person, I would like to get that sort of interest rate.
“If I borrow $400,000, I get five years to pay it off to the lending institutions including interest.
“I don’t feel our council should lend the club any more money and repayment of what is already owed needs to be closely monitored”.
