The Drumheller Golf and Country Club has gone into consented receivership after a last-minute deal for the Club did not materialize.
Shareholders of the Dinosaur Trail Golf Club passed a motion Tuesday evening. January 28, to accept an offer from a private Alberta company, to purchase the assets of the club.
The golf club has experienced financial difficulties over the past number of years and the current lender, ATB Financial, has called the club’s operating loan along with the outstanding line of credit the club has at present.
The group making the offer was to pay $1.25 million by a Friday, January 31 noon deadline, and if not accepted, the club will proceed into consented receivership if conditions of the sale are not met.
According to club president Mike Yavis, the conditions were not met.
“On Tuesday the bank will be hiring a receiver and it will be going through court, and no longer be our golf course,” said Yavis. “They couldn't come up with the money.”
There were at one time a number of other interested parties in buying the course, but no other offer was presented at last Tuesday's meeting.
He explains this doesn't necessarily mean the golf course is no more. While it is out of the board's hands now There is a possibility that the receiver still could find an interested buyer to purchase and operate the course. He is hopeful this will be the scenario.
“The board of directors worked really hard to try and save it. It is kind of heartbreaking in a way,” he said.
One point brought up at the meeting last Tuesday was the question of whether or not the course would stay as a golf course or change to another use. The question was answered by the chair saying the course lies in the flood area of the Red Deer River, and as such it would be unlikely any other use would be possible. Mayor Heather Colberg advised the meeting that there would probably be a re-zoning issue if a new owner wanted to change the use and that there would be some difficulty there as well.
