Nearly two years after the Burbank City Council bailed out the cash-strapped DeBell Golf Club to the tune of $2 million, the club's financial health remains in limbo, leaving it unable to afford the loan payments that were slated to start next January.
Factoring in depreciation and the original loan payments, city officials projected the club's cash flow by the end of fiscal year 2013-14 to be in the red to the tune of $303,000.
On Tuesday, the Burbank City Council unanimously signed off on plans to give the club two extra years to boost its revenue before having to pay up. Loan payments on $1 million are now scheduled to start in January of 2016, as DeBell has not needed the remaining funds.
The council also postponed payments on a separate $2.5 million loan to DeBell — which helped fund the new $9.4 million clubhouse in 2007, wiping out DeBell's reserves — by five years. Some payments have already been made on this loan, but the outstanding debt remains roughly $2.2 million.