By Karen Billing
After last month’s meeting left many confused as to the actual terms and implications of the Rancho Santa Fe Association’s loan to the RSF Golf Club, the item came back before the board for clarification on April 5.
The Association approved a loan of up to $1,650,000 at a 2 percent fixed rate for a five-year term. The golf club would pay a fixed monthly payment of $15,182 for five years and the allocation of any surplus debt service funds would be applied at the discretion of the golf club board to retire any of the existing golf club debt.
The changes took out a five-year balloon and allowed the golf club the flexibility to decide where to apply the surplus.
In order to complete the golf club’s clubhouse renovation in 2006, an $11,883,000 project, the club took out two loans.
The first was for $6 million and provided the bulk of the renovation funds. The required monthly amortizing payment on the loan is $31,757 and a balance of $5,462,85 million exists as of Feb. 1.
The second loan covered the balance of the project and was converted to a term loan in 2009 in the amount of $2,148,418. The monthly amortizing payment is $13,516 and $1,646,352 remains on the loan.
The Association will pay off the smaller $1.6 million loan.
The clarified motion passed with six votes—Vice President Dick Doughty did not vote because he felt there was still enough confusion on the matter to send it to a committee first to be straightened out.