Cabinet View Golf Club Board President explains the board's position

Letter to the Editor,

It is time for a few facts about the Cabinet View Golf Club:

Dated Nov. 18, 2004, Cabinet View Country Club now Cabinet View Golf Club/City of Libby loan agreement was presented. 

CVGC entered into an agreement for $1.541 million by the Economic Development Administration under H.R. 442545 Section 2406. 

These funds were NOT generated by TAXES for the City of Libby. They were funds that were set up for “ECONOMIC DEVELOPMENT.’ They were Federal funds granted to Libby to help us recover by encouraging “Economic Development.”

CVGC has continued to help the economy by developing the new nine holes and bring in many tourists and helping to grow the economy of Libby.  These funds were spent in an appropriate way and have in no way put any pressure on the Libby taxpayer.

CVGC has never said it wouldn’t repay the loan.  In fact we have made every effort to finalize our preliminary plat so we could move forward with the development. 

The City then sent us a letter in 2011 telling us we would be responsible for $500,000 to $750,000  of the cost of the city’s expense for the sewer. COME ON, wouldn’t you get three-quarters of a million dollars commitment in writing! 

I asked for the “documentation,” and they said it was in their minutes in 2007 but they said they can’t understand why no one contacted us!

Then, they said they didn’t have to tell us of the contribution.  However Kristin Smith, the county planner, told the city at the November meeting that in fact they did have to have that in place prior to the beginning of the sewer process. 

Now the city is  saying they don’t want to turn this into litigation, but are citing a “high court precedent” from Kiely Construction vs. City of Red Lodge 2002 “to turn back the clock” this has nothing to do with our situation. 

The City is now asking CVGC for “$581,000, which must be paid to the city prior to filing Phase III or August 31, 2016, whichever comes first.” 

That, in effect, stops the development, which also STOPS any way for CVGC to honor the agreement.

Now the Contract!  Signed by CVGV and the City of Libby:

Payments —

(A)  The Loan will be repaid by BORROWER paying to LENDER at least fifty percent (50%) of the proceeds from the sale of the lots of a subdivision that borrower will create from the real property that is the security for this loan until the loan is paid in full. 

So, if we don’t agree to pay $581,000 for the sewer, which we were told by the city April 30, 2003, that it wouldn’t cost us anything, they will not grant us our Plat extension.

(B)  Payment on the Loan shall commence no later that Jan. 1, 2010, provided, however, at least (50 percent) of the proceeds from any lots that are sold prior to Jan. 1, 2010, be applied to the loan.

Are we in default as the mayor continues to mention?  No, we have made payments on the loan that have not been deposited back into the fund.  Yes there have been two checks one each year for $100 each to satisfy the contract!

The mayor didn’t think it was enough but that isn’t his choice.

(C)  Payment is due on the closing of the sale of any lot covered by this note.

CVGC has made good faith payments to show cause without the sale of any of the lots.

4.  BORROWERS RIGHT TO PREPAY

The borrower will have the right to make payments on the amount owed at anytime.

We have done that, again no amount is mentioned in the loan.

5.  BORROWERS’S FAILURE TO PAY AS REQUIRED

(A)  Default:  If BORROWER does not pay any sum when due BORROWER, will be in default.

Does $100 qualify as “ANY SUM?”  I don’t think that is a hard question. 

In 2006, CVGC had four interested parties in the purchase of the development.  With the delay in the building of the sewer, the economic downturn and the additional $581,085 fee the City added to continue, these parties are not eager to proceed.  If the city tries to force sale in this economy, no one will get their money back.

A few other important facts:

1.  There was not one extra foot of pipe put into the ground for the development.  They had to run the line every foot it was run to service the landowners who are in place.

So, “there was NO extra expense to the taxpayer for this sewer line!”  CVGC is bound by the signed contract for the expense of the sewer line within the development. (no expense to tax payers)

2.  CVGC allowed the city to cross part of the course to save them money, without compensation to CVGC. This will cost CVGC more to access the sewer line for the development in the future.  The building of the sewer was also very costly to the club, with poor access to the clubhouse and a very substandard road until the county helped out.

3.  The city was also allowed to build a pump station on CVGC property without compensation. (again, to help the City )  

4.  The city contends that the sewer was put in for the development.  That is not a fact.  We were told at a meeting April 30, 2003, that environmental concerns made the sewer system a must. (Failure of septic systems)  Annexation must occur for this to happen. 

There was a show of hands at the meeting and the count was 45 for and 2 against.

Cabinet View Golf Club is made up of Libby people.  We did a lot of work to improve Cabinet View. The building of the Wilderness Nine and the remodeling of the Cabinet Nine, required for asbestos removal, was done to give Libby the best golf course we could. 

We are in this together.  The hospital has worked toward a better facility to serve the people of Libby. 

The business people continue to improve the options in Libby.

The schools offer the best education for our youth.

Turner Mountain offers a great ski hill. 

The list of improvements goes on.   If Libby is to be a community that attracts jobs and a great way of life, each part of the community must find a way to cause an attraction.

Cabinet View is just a small part of the success of Libby.  If the City of Libby continues to block the development many businesses will be impacted.

I stand by the written contract and documentation.

The City of Libby stands by “the collective institutional memory of council members and would like to “go back in time” to 2007 and “start over.”

Convenient! 

— Dann Rohrer

CVGC Board President