BAYSWATER Bowling and Recreation Club (BBRC) will not have to pay the total amount of a loan after the Bayswater council voted to waive a portion of it at its October meeting.
The club entered into a self-supporting loan of $300,000 with the City in November 2005 and the loan has a remaining balance of $50,190, including a payment of $10,037 due in November.
Club president Steve Lay requested in a letter sent to the City in September that the council waive the outstanding interest payment because the club had battled to make the repayments.
“The loan of $300,000 entered into between City of Bayswater and BBRC had an interest rate of 5.93 per cent (quarterly compound) which I believe could be seen by many as unfair and inappropriate impost on a small sporting club,” the letter read.
“In fact, this loan has unfortunately been the one big driving factor in pushing this 80-year-old Bayswater sporting club to the brink of insolvency.”
Earlier this year, the club established a Save the Bayswater Bowling Club Facebook page and held fundraisers to secure the club’s future and financial situation.
An officer report stated the City was unable to write off the repayment, but councillors voted 6-4 to write off $40,152 of the balance, with the club to pay $10,038 by November.