Cabinet View Golf Club has cleared its debt to the City of Libby.

Mayor Brent Teske announced earlier this week that — as of June 18 — $1.54 million had gone back into city coffers. The repayment ends longstanding financial friction between City Hall and the golf course.

“We can put a lid on that one,” Teske told members of Libby City Council on June 21.

In exchange for repayment, city officials earlier this year agreed to give the club a $541,000 grant for a new clubhouse. The grant money will come from the loan’s repayment, which was funded by the sale of golf club land.

The loan dates back to 2004, when the then-city council was doling out about $8 million in federal economic development funds to local groups and businesses. City Hall gave the golf club the $1.54 million to pay for construction of its back nine.

Under the terms of the agreement, the club was to pay back the money through the development of nearby land. But the planned development never came to fruition.

Earlier this year, club representatives approached City Hall with a potential solution. An unidentified potential developer had expressed interest in buying the land and building housing.

To make the deal palatable, club officials asked city councilors to forgive a portion of the loan. While Libby City Council passed on loan forgiveness, it ultimately voted 3-2 to guarantee the club the $541,000 grant upon repayment of the debt.

“Fantastic,” said City Councilor Brian Zimmerman, who supported the arrangement, upon hearing the news.