The Blue Mountains council has approved a new three-year loan agreement with the Marsh Street Centre.
At its committee of the whole meeting on Sept. 25, council gave its thumbs up to the new agreement brought forward in a report from Sam Dinsmore, acting director of finance/treasurer.
For the past couple of years the Marsh Street Centre has had a one-year, $100,000 loan agreement with the town. The agreement functions similarly to a line of credit, with Marsh Street withdrawing money for operating expenses when needed.
The arrangement was particularly important to help the Marsh Street Centre get through the COVID-19 pandemic.
At the meeting, Dinsmore said all outstanding amounts have been repaid in full. Dinsmore said the town charges its borrowing costs, plus one per cent (which comes to six per cent currently) as an interest rate on the loan.
Members of council were supportive of the deal. Coun. Gail Ardiel said it was appropriate to extend the agreement to three years to avoid town staff and the Marsh Street Centre having to renew the agreement annually.
The loan agreement will come to council’s meeting on Oct. 10 for final approval.
