BARRHEAD - The Barrhead Exhibition Association and Agricultural Society will have to wait a little longer to learn if the county will grant their request and allow them to borrow $875,000.
County of Barrhead councillors tabled a decision on a motion by deputy reeve Marvin Schatz until after they hold their annual budget priority meeting following an Oct. 3 public hearing.
The motion passed 6-1, with Coun. Bill Lane opposed. Coun. Jared Stoik was absent.
The county's budget priority meeting is scheduled for Oct. 12.
On Sept. 5, councillors gave first reading by a vote of five to two to Bylaw 5-2023, which, if passed, would allow the society to borrow up to a maximum of $875,000 for a term of up to 20 years at an annual interest rate of 5.13 per cent.
Since then, the Local Loans Authority, the provincial government agency which loans money to municipalities, has increased its interest rate to 5.38 per cent.
The society asked the county to consider their loan request via a letter stating they would use the loan to purchase six lots near the organization's existing rodeo grounds for future expansion, including such amenities as (but not limited to) parking, campground facilities, livestock stalls or pens, and changing the access to their existing grounds for improved accessibility and safety.
If council agrees to the loan, finance director Tamara Molzahan said the money would come from existing funds, specifically the community organizational reserve fund.
However, at the Sept. 5 meeting, she stated that currently, the account does not have enough funds to cover the expenditure, so they would have to transfer roughly $770,000 from its $2.5 million unrestricted reserves.
At the Sept. 5 meeting, reeve Doug Drozd, Schatz and Coun. Walter Preugschas expressed their hesitation in granting the request, stating they would be more inclined to do so if the county were the society's last resort.
Society president Jackie Miller, during the public hearing, stated the reason why they requested the loan from the county was because the municipality can offer them a better interest rate than their financial institution.
"[We do have a loan at our financial institution] in the process, but the rate is about two per cent higher, so [by getting a loan from the county] the savings would be huge," she said.
The society said with a municipal loan, their annual payments would be about $10,000 less than that of their bank and over the course of the loan, they estimate savings of roughly $80,000 based on current interest rates.
"If interest rates drop significantly in the next two years, we could consider paying out the county and then go with our bank," Miller said.
Society treasurer Brenda Visser interjected that the Ag society membership approved purchasing the land and the required loan at a special Aug. 30 meeting.
Preugschas asked the Ag society reps why they wanted to buy the land.
"The obvious purpose is to expand our base," Visser replied. "We are using every inch of our property right now, and even then, that is not enough."
She added that during large events like Blue Heron Fair Days, the Ag society used adjacent lands with the owner's permission or things such as parking, camping or storage.
"We are looking ahead," Visser continued. "If we ever want to expand our operation, there is nowhere to go. And the parcels of land we are looking at is the only place we could possibly expand to."
Schatz asked if the society made a similar request from the Town of Barrhead.
Miller said that they had, but the town told them the best that they could do was to be a co-signer on a loan.
"But that is not something we need, as we are able to qualify for the loan on our own merits," she said.
Drozd was curious as to why the society needed or wanted all six parcels and then asked about the zoning of the property.
Visser noted all the lots are zoned as R1-residential, and when they first inquired about the land, they only wanted to purchase one lot, but the owner was unwilling to break up the lots.
"We've also talked to the town about rezoning the property, and they recommended they be rezoned to Urban Reserve and didn't foresee any difficulties in making the switch," she said.
Coun. Ron Kleinfelt said if the society does purchase the property, they are making a long-term commitment.
"I know you have a strong organization right now, but you are taking out a 20-year loan," he said, noting that much of the Ag society's members are older. "But what does your future look like? Do you have many young people that are able to take up the mantle?"
"We are working on it," replied Miller and Visser, readily admitting the Ag society's current membership is on the older side.
"But we do have some young people that have expressed interest of getting more involved in five or 10 years when they are at a different stage of their lives," Visser said.
While Drozd understood that the Ag society would appreciate an answer sooner rather than later, he said he could not foresee himself making a decision until after councillors held their annual budget priority workshop.
"The importance of the workshop cannot be overstated," he said. "We need to step back and get our own financial house in order, see if there are any other projects that are projects that are a higher priority for county residents. Then, at the end of the day, we can make an informed decision."
Lane, who also sits on the Ag society board as a council rep along with Stoik, said the Ag society has been discussing the need for more property for some time and that the organization does a lot for the community, adding he was ready to support their request.
Barry Kerton, TownandCountryToday.com
