Blue Mountains Council will loan Springwood Country Club the money to remove asbestos which was dumped on their course early last year.
At the July 28 council meeting, elected councillors unanimously voted to pay the $80,000 bill to remove the fill and clean-up and 'cap' the affected area, following orders by the NSW Environment Protection Authority.
Golf course officials allege the asbestos was dumped on the course by a contractor who delivered fill for landscaping and ground maintenance in February 2019. They are now looking into their legal options to recoup the clean-up costs.
The club has received extensions from the Environment Protection Authority to delay paying for the removal of the contaminated fill (non friable asbestos cement debris). The final date for compliance is August 31.
Council owns the site and leases it to the country club. The club will need to give council a balance statement annually as part of the agreement and also pay the loan back with interest of about 2.75 per cent per year - about $6,345 - each year for just over 15 years.
A council report heard that independent auditors, BDO Audit, found operations of the club are stable as at March 2020 and the "financial position of the club has been steadily improving over the past three periods with 2.7 per cent growth in revenue since financial year 2018 and a growth of earning before tax of 2.1 times". The club was capable of servicing a debt to council.
Former president and now general manager Claire Murray-Fulton said they were "delighted with the reports from the independent auditor, showing that the club is in a strong position moving forward".
"We were also very pleased with the outcome from the council meeting - it will enable the club to remediate the fill finally."
But Ms Murray-Fulton said the club was "very disappointed [it] has cost the club so much money".
"It is terribly unfair on our members. We are still hopeful we can pursue the company in a civil court proceeding to try and recoup some, if not all, of the financial burden that this situation has caused the club."
The club has deferred previously urgent plans for a new clubhouse roof and repairs to the septic system and will monitor their leaking dam over the next 12 months. They had sought a $200,000 loan from council for a new roof, but are now applying for grants for the repairs instead.
Independent Cr Shae Foenander said "the club is viable" and the independent report "removes any optics of bias".
Cr Kerry Brown said the change of heart over the urgent leaking roof, was "a puzzling change but good news".
Cr Daniel Myles said council was determined to link the clubhouse roof to the dam to ensure a full dam for the next fire season.
