CLARENVILLE, N.L. — JONATHAN PARSONS
THE PACKET
CLARENVILLE, N.L. — The Town of Clarenville is loaning money to the Alpine Development Alliance Corporation (ADAC) of White Hills Ski Resort, after the facility posted another year in the red.
At the council meeting on Tuesday, June 25, Coun. Paul Tilley, chair of the finance, administration and planning committee, reported to council ADAC submitted a request for financial assistance for payment of their outstanding balance of accounts payable and loan payments.
According to the committee report, they owe about $33,000 in total in accounts payable, current year loan payments in the amounts of $12,500 and $17,061, in addition to $10,000 for planned summer maintenance.
However, the committee noted ADAC has not yet received all of its grant money allocated for this year by the town in the municipal budget. They released this money to them, in the amount of $18,708.
“These funds should be used to assist with the monies required,” said Tilley at the council meeting.
At the meeting, council also unanimously approved a line of credit for the resort, in the amount of $53,878.
“Repayment of the line of credit will be required by the close of the 2019-2020 ski season,” said Tilley. “These funds shall be used to support the recent request from the ADAC for the accounts payable balance outstanding, approximately $33,000, current year loan payments in the amount of $12,500 and $17,061, as well as $10,000 for summer maintenance.
“The town will provide an update on the 2019-2020 season at a later date.”
Town chief administrative officer David Harris explained to The Packet, as part of the town’s memorandum of understating with ADAC, they’re required to pay all outstanding invoices in the case of a deficit.
“We’re paying it off for them, but we’re deeming it as a repayable loan to ADAC, basically,” he said.
“Hopefully they’ll have a good season and pay it off next year.”
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