Barry Gutteridge, Director of LUI, has requested that the Town agree to an amendment of the 2006 promissory note of $7M with the Town of Cobourg. Most people do not understand this and would rather not read or think about it.
Simply, LUI wants to lower the interest rate on the debt owed to the Town from 7.25% to 3.72%. Everyone understands that if someone agrees to pay you a certain interest rate and now wants to reduce the interest rate, and you agree, you (the Town in this case) will get less money.
Lakefront claims that they want to do this to pay off the loan and use the lower payments to re-invest in infrastructure. The CTA and other members of the public presented other options that are better for Cobourg taxpayers.
Bottom line, agreeing to a lower interest rate is not in the best interests of taxpayers. When you do not fully understand what you are agreeing to or the options being presented, the best decision is to do nothing. Leave things as they are.
Here are the links to the various presentations:
October 15, 2019 Special Committee of the Whole Council Meeting
- CTA Delegation – Choices – Alternatives to the Gutteridge Proposal
- Delegation from Paul Pagnuelo Special COW of Cobourg Council
- Restructuring the LUI $7M Note – Byran Lambert
- Lakefront Presentation re Promissory Note Oct 3, 2019
September 23, 2019 Committee of the Whole (COW) Council meeting
- Staff report re Amendment to Promissory Note – Lakefront Utilities
- CTA Delegation – LUI’s promissory note “Reviving The Dream” Alternative Proposals
Special Council Meeting on LUI loan payments – Cobourg News Blog