The Cleve Sporting Bodies (CSB) has asked the Cleve District Council for a $250,000 loan, because the clubrooms redevelopment is expected to go over budget.
The organisation has requested an overdraft loan for up to $250,000 to be paid back over up to 10 years.
The council has already contributed $250,000 to the project, which assisted the CSB in acquiring the necessary grant funding to get the project off the ground after three years with no usable clubrooms in the town.
In a report for last week's council meeting, the council's chief executive officer Peter Arnold outlining the council's policy on providing loans to community groups and said the project was ineligible for a community loan as work had already started.
However he said the council could decide to go against the policy position.
The report said Cleve Sporting Bodies Trading 5 year rolling Budget indicated the organisation would be able to meet the loan repayments but the CSB has not fully traded for nearly four years, which could affect its ability to prepare an accurate budget.
The report also referenced uncertainty about the viability of Eastern Eyre football and netball in the current structure, which could be viewed as either a risk or an opportunity depending on the view point and what, if any, changes were made in the next 10 years.
The report detailed the community benefit the 200-seat facility would bring to the town but despite this, Mr Arnold recommended the loan request be refused.
The matter was discussed in confidence at the council meeting, with a final decision to be made at a later date.