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Time line extended for rink credit payments

November 30, 1997

Time line extended for rink credit payments

By JULIE E. GREENE

Staff Writer

The nonprofit group operating Hagerstown's ice rink has been granted more time to repay a $75,000 line of credit to the City of Hagerstown.

Council members unanimously approved the extension during their Tuesday night regular meeting. The action gives the foundation until March 1 to repay funds used from a line of credit.

The extension was the second requested by the Washington County Sports Foundation since it received the line of credit on Aug. 12. The foundation was to pay back money used through the line of credit, plus 7 percent interest, by Nov. 15.

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The foundation has used all of the credit, City Finance Director Al Martin told the mayor and council during a work session earlier Tuesday.

Martin said the foundation lost money in September and October, but November revenues for the rink at the Hagerstown Fairgrounds were improving.

The line of credit from the city helped pay for expenses the foundation couldn't meet in those months, he said. The foundation has made all rent payments through November on time, he said.

Councilman Bill Breichner, chairman of the foundation's board of directors, said prices at the rink had to be raised to make them more realistic.

Foundation officials asked for the extension, saying they need more time to prepare paperwork to apply for a bank loan.

Martin said the foundation needs a $475,000 loan to repay the city, pay startup costs, pay the balance of the rink construction costs and have two to three months of operating funds as a cushion.

As a condition of the credit extension, foundation officials must give the council a report on the rink's financial situation and detail what they've done to prepare for obtaining a loan, Martin said.

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