The City of Yorkton will be shorted just over $25,000 in owed money as result of the closure of Yorkton ReStore in July 2017.
“When Yorkton Restore was opened in 2014, the City provided this non-profit organization with an interest free loan of $100,000. The intent of the Yorkton Restore program was to divert construction materials and other material from the Yorkton landfill. Profits earned by Restore from the sale of these materials were to go towards paying down the loan from the City of Yorkton with $20,000 payments per year for five years, and to provide funds to Yorkton Habitat for Humanity’s cause,” detailed a report circulated to the regular meeting of Yorkton Council Monday.
“To date, $40,000 of the loan from the City was paid by Restore and Habitat for Humanity currently has a cash balance of $34,612. Unfortunately the Restore program did not achieve financial sustainability and Yorkton Restore ceased operations on July 31, 2017, leaving a loan balance of $60,000 owing to the City,” continued the report.
Discussions here held between the City and the Yorkton Habitat for Humanity showing the Restore business was left with $34,612, which they have agreed to pay to the City, explained City Manager Lonnie Kaal.
That left a balance owing to the City of $25,388.
The CEO of Habitat for Humanity – Regina is requesting that the City forgive the balance of the loan. There are really no options available to collect on this debt, said Kaal.
Council was unanimous in approving the write-off.
