Town removes oversight of Golf Society

Masha Scheele
Local Journalism Initiative

Council and Town of Hinton administrative oversight has been removed from the Hinton Golf Society for the 2020-2021 Golf Course Operating Agreement.

“The original intention of council and administration oversight to the Golf Society was in regard to the loan amount,” stated CAO Emily Olsen, during the Oct. 20 special meeting of council.

The Town of Hinton entered into a Loan Agreement with the Hinton Golfing Society in June of 2017, which included a condition of the transfer of all Golf Course assets to the Town in the event of default on the loan payments. Due to the society defaulting on their payment and the asset being transferred to Town ownership, the oversight requirement is no longer needed, Olsen explained.

Coun. Dewly Nelson clarified that the Town owns the asset while it is operated by the Hinton Golfing Society.

“I really respect the work the society has done. I really look forward to what they’re doing in the coming years. This year has been a glimpse of what is possible for the golf course,” said Nelson.

Olsen added that the Hinton Golfing Society and the Town of Hinton have agreed on a one year operating agreement and there will be a chance to review that next year.

Council also approved a 100 per cent cost recovery plan for maintenance and operations of the golf course lands, buildings, and operating equipment, and charges related to insurance and utilities within the 2020/2021 Golf Course Operating Agreement.

“It’s the cost to do the business of golf. It has been budgeted by the Hinton Golfing Society in the budget for next year,” said Coun. Trevor Haas.

Those costs include a $15,000 monthly debenture payment, up to $2,000 in monthly utilities, a $22,000 annual insurance payment, a $40 monthly payment for the security system, and up to $15,000 each month in asset maintenance. These will all be recuperated by charging them back to the operator in the form of an operating agreement and are taken on by the operator as business costs. 

Council also approved 100 per cent cost recovery based on a fee for service with respect to golf course road and building maintenance, where road clearing does not take precedence over the clearing of other Town roads.

“This is just one other way to de-risk this project for both parties,” added Nelson.

Council approved the Asset Acquisition between the Town of Hinton and the Hinton Golf Society on Oct. 6, 2020, which will take effect on Oct. 31, 2020. The one-year Operating Agreement will also start on Oct. 31.

With the asset acquisition process completed, and matters related to the 2017 Loan Agreement settled, Council and Administrative oversight is now removed.