The Devine City Council instructed financial advisor Andrew Friedman to move forward with bids for a three-year, $450,000 taxable tax note to pay for renovations to the Devine Golf Course clubhouse.
Friedman presented the idea during the Special meeting held last Tuesday, September 8, framing it as a cost-savings measure for the City, which is paying SG Golf Management $32,530 a month until a turnkey renovation of the clubhouse is completed.
“Once we can turn over a functional clubhouse to them, the annual principle and interest on a $450,000 tax note is just under $160,000 a year,” Friedman said.
The tax note must be done on a taxable basis because the City has a contract in place with SG Golf Management, who will benefit from the construction the note will pay for. A taxable tax note comes with a higher interest rate than a nonprofit note.
“As soon as you can get the money, you can start construction,” Friedman said. “The sooner you can get that turned over and stop paying the manager of the golf course that 30 some-odd thousand dollars a month and start recognizing that savings.”
Friedman pointed out that shopping for bids on the note did not mean the City was locked in to moving forward with it.
“Your direction this evening isn’t committing the City to taking on the financing,” Friedman said. “it’s really just opening the door to allow us to go out and start working on a solution on your behalf.”
A motion by District 5 Councilwoman Debra Randall and District 3 Councilman David Espinosa to instruct Friedman to bring bids on the note to a future meeting passed unanimously with support from District 1 Councilman Rufino Vega, District 2 Councilman Steve Lopez, and District 4 Councilman Chuck Guzman.
By Marly Davis
Staff Writer
