$75,000 loan to buy Mt Vernon

Press, 9 November 1984, Page 7

$75,000 loan to buy Mt Vernon

The Heathcote County Council will lend $75,000 to the Christchurch Civic Trust to help in the purchase of the Mount Vernon block, the council’s finance and administration committee decided yesterday. The loan will have an interest rate of 10 per cent and is repayable in three $25,000 instalments on June 30 of 1985, 1986, and 1987.

The County Chairman, Mr O. T. Alpers, said that the trust needed the money by January 31. The money will come from the sale of the former County Clerk’s house. If the house is not sold by the end of January, the money will be taken from the general county fund. Cr F. R. Chapman said the council should not be “fiddling around” with ratepayers’ money. “I feel as if we are doing something wrong.”

The committee’s chairman, Cr J. G. Laurenson, said it was of advantage to the council to purchase the

land. He thought that in many ways it would protect the council’s own investment (Bowenvale). Three letters in support of the council’s making the loan had been sent to the council since last month’s meeting. All were ratepayers who wanted to see the loan given interest-free or with nominal interest.

The Canterbury United Council decided to give $75,000 to the trust over three years. It is from these payments that the Heathcote council hopes to get its money back.

As the United Council’s money will be made up of levies from all other councils, Heathcote will actually pay another $653 a year. Some councillors expressed concern yesterday that a high enough interest rate be charged to recoup this loss.

Cr Alpers proposed a rate of 6 per cent while Cr Chapman said it should be at least 15 per cent. After much discussion, councillors settled on 10 per

cent. This will give a return of $15,000 over the three years. Brevet Club The committee decided to give $lOO to the Brevet Club Spitfire replacement fund. Cr Alpers said he thought, the aircraft should have been insured and said he was not particularly sympathetic with the club for not taking this step. Cr M. C. C. Buchanan said she agreed with Cr Alpers. The club should consider putting a reduced model inside the club where it would be much safer, much cheaper, and protected from “bird droppings.” Cr Laurenson said it was a personal opinion as to whether the aircraft should be there and how much should be given.

“I think the donation should be relatively small and then supported by individual councillors depending on their feelings on the matter," he said. A sum of $lOO was finally settled on by councillors.