I’m not sure a review of the financing of the proposed RedTail Golf Club was intended to be a major part of last Tuesday’s Board meeting, but it turned out that way.

In in his opening remarks, Village President David Stavropoulos said that attorney Scott Puma would take a look at the ReTail construction contract.

In Public Comment I pointed out that the Clerk’s minutes had been excellent in the beginning, but, more recently, had been less explicit about what constituents said to the Trustees.

I also repeated the question I asked when the financing of the golf course purchase was being considered:

“Will this ever cost me a dime?”

Later in the meeting, Stavropoulos reminded everyone that “a prior Board had approved moving forward.”

Further, that emails had gone back and forth and that the architect had been consulted.

“Methodical” was the word he used to describe the process.

“Time is not on our side anymore,” Stavropoulos continued, because the current structure “is falling apart.”

He asserted the Village had taken a “very conservative approach with the numbers.

“No one was interested in the investor lease to own” option, so a construction manager approach had been adopted.

At this point, he said, “The Village is not committed to anything.”

The decision of the approximately $3.9 million to be spent will be made by the Board.

“The rounds of golf are only one aspect.” [I believe this is where Adminstrator Jean Heckman took over.]

There will be a “limited use of contingency funds.”

“Park impact fees” will help pay a $836,000 down payment.

The legality of the use of this money has been verifieded by attorney Puma.

The break-even point is 18,500 rounds.

In the last sixteen years, that figure has not been met just once.

It was 30,450 in the year just finished.

That’s enough to “cover the mortgage.”

The financial plan counts on new revenue from off-season events like showers, birthday parties and weddings. Additional in-season events were not included in revenue estimates.

The food will not be catered out for the estimated 160 events.

It was pointed out that there was about $200,000 in the reserve fund, which will be up to $300,000 for operations.

The mortgage will be at 4.5% for twenty years and be backed by the full faith and credit of the Village.

The cost will be $220,000 to $224,000 per year.

Attorney Puma explained that that inadequate revenue to pay the annual mortgage would not result in higher real estate taxes.

That’s because of the limit [the rate of inflation or 5%, whichever is lower] imposed by the Property Tax Cap.

If money had to be taken from property taxes to pay part of the mortgage, there “would have to be cuts in other areas of the Village budget,” Puma said.

Village Administrator Heckman, who provided some of the unattibuted information above added, “My husband and I paid that tax [to pay off the golf course purchase General Obligation Bonds] for seventeen years.”