MNGL bond extendedThe Red Wing City Council agreed Monday to extend the maturity date of the bond for Mississippi National Golf Links one year.
By: Danielle Killey, The Republican Eagle
The Red Wing City Council agreed Monday to extend the maturity date of the bond for Mississippi National Golf Links one year.
After deciding not to sell the course this fall, council members wondered what would happen when the $1.1 million bond came due in November. But on Monday they agreed to an extension out to Nov. 1, 2012.
The shift doesn’t affect the lease at all, Finance Director Marshall Hallock said. And council members said the extension provides more time to figure out ways to fund maintenance and explore other potential changes at the course.
The extension request came from Pittenger, and all parties involved in the bond had to sign off for it to go through.
Red Wing resident Gary Fridell urged the council to refuse and let the bond mature, arguing that if Pittenger then paid off the money the city would own the course “free and clear” and, if not, the city could terminate the lease that runs through 2038 and wouldn’t be obligated to fund capital improvements.
“The best course is to allow bond to mature as of Nov. 1, 2011,” Fridell said. “The consequences are advantageous to city and citizens.”
But council members disagreed.
“I’m not interested in forcing an unknown on us,” Council member Lisa Bayley said. Changes need to be made, she agreed, but extending the bond would provide time to explore ideas without “throw(ing) a big monkey wrench into this when we don’t know what the outcome is going to be.”
The council will still need to find a way to finance maintenance and improvement projects needed at the course.
“We have pretty creative citizens,” Council member Mike Schultz said. “I’ve got to believe there’s something out there that will work.”
The council unanimously approved the extension.