Council agrees for Golf Authority to defer loan payments

Staff Writer

The Benzinger Township Municipal Golf Course Authority received financial assistance recently as St. Marys City Council unanimously approved their loan deferment payments with Northwest Bank.
On March 18, 2020 Governor Tom Wolf ordered all non-essential businesses closed which included the Bavarian Hill Golf Course, which is operated by the Golf Authority.
It is anticipated it will take several months for the golf course to generate revenues sufficient to meet their loan payments. Due to this Northwest has agreed to defer payments on both their loans for May, June and July. Interest will continue to accrue on the loans during the deferral.
On April 3, 2009 the Golf Authority, also known as the Elk County Golf Association operating the Bavarian Hill Golf Course, took out a loan for $1,140,375. Monthly installment payments of $12,270 are due each month of May, June, July, August, September, and October of each year. The due date of the loan is October 30, 2029.
On July 6, 2012, a second loan of $109,000 was taken out by the Golf Authority with monthly installment payments of $1,504.79, due the same months as above. The due date of this loan is June 30, 2027. The city has guaranteed the payment of the loans.
City Council paid a good portion of the Golf Authority’s monthly loans last year, totaling around $12,000 per month, as they were financially unable to do so.