The Whalan Lodge Trust asked the council for a loan to help fund a revamp of the Kurow rest-home — budgeted at $1.5million — which would include expanding its capacity from 14 to 19 residents, and improving the bathroom, laundry and kitchen facilities and the front entrance.
The project has been in the pipeline for about three years.
Councillors unanimously voted in favour of the $780,000 loan at Tuesday’s council meeting.
The trust had asked to repay the loan over 30 years, which council finance and corporate development group manager Paul Hope said was ‘‘significantly longer’’ timeframe than for other funding the council had provided.
As a compromise, the council agreed to allow a three-year non-payment period and then a 25-year term, with an interest rate capped at 2.5%.
Councillors asked trustees if they were confident resident numbers would remain high to help pay back the loan.
Mr McCone said that for the past nine months, there had been a six-person waiting list — and there was nothing to suggest the demand would not continue.
He was thrilled to receive the council’s stamp of support.
‘‘This has been a big day for us.
‘‘We’re very fortunate that we’ve got a strong trust with a lot of abilities in there in all different fields.
‘‘We’re very confident we’re going to pull it off,’’ Mr McCone said.
Waitaki Mayor Gary Kircher said he took his hat off to the trust and the Kurow community, which had turned around the lodge’s fortunes. After facing closure due to low numbers in 2014, it was now able to expand.
Mr Kircher said he was proud to support the loan.
‘‘The wellbeing of the community is one of the responsibilities we have under the Local Government Act and I don’t know of any other better examples than this type of project.’’
Councillor Jim Thomson said supporting funding cases, such as Whalan Lodge’s, showed the council cared about its community.
‘‘It’s exceedingly important that we offer the opportunity for people to remain within their own communities, and retain some dignity, and remain part of the community that they’ve supported through their working years,’’ Cr Thomson said.
