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Thursday, October 17, 2024

CITY OF PORT TOWNSEND: City Council OKs 3 More Years Of Golf, But That May Be All

Golf

City Of Port Townsend issued the following announcement on Nov. 6.

The Port Townsend City Council voted unanimously Nov. 2 to authorize staff to negotiate a three-year agreement with a professional golf vendor with those three years to be spent considering alternative uses for the 59-acre property. If the three-year golf contract proves successful, and no other viable alternatives are found (which hinges primarily on money), golfing may or may not be extended.

The City Council was presented with four options to deal with the Port Townsend Municipal Golf Course, with staff recommending Option 3 allowing a three-year golf agreement with those here years spent focused on alternative uses which likely would not include a 9-hole golf course.

“Basically, we would be voting to close the golf course in three years,” Councilor Pam Adams said about Option 3. She said three years is “not going to be an enormous incentive for the vendor to make it super successful.” Adams favored Option 2, when after three years the City could continue with golf or close the course.

After further discussion, it was decided that the Option 3 proposed language of “no option for extension” after three years of golf be changed to at least open the door should golf be successful and/or alternative uses do not pan out. That language change led to a 7-0 Council vote in favor of Option 3.

COURSE NEEDS MORE GOLFERS, REVENUE

The golf course here opened in 1904 and has been a public course since 1927. The City-owned property has functioned under a lease for operations and maintenance model for at least the past 33 years. Since 1987 the lease agreement had been with Mike Early Golf Shops, Inc. but was transferred to Gabriel Tonan Golf Shops, Inc. in 2013. The current lease agreement is in its final year, ending on Dec. 31, 2020, with all contract extension provisions exhausted.

The course needs an estimated $1.2 million in overdue capital improvements – which had been the City’s responsibility, not the vendor’s – should it be continued as a public 9-hole golf course, along with a business plan that would more than double the number of golf rounds played annually. A National Golf Foundation report estimated that annual revenue of $400,000 (equivalent to 18,000 rounds of golf per year) is needed to break even operationally. Port Townsend course revenue in 2018 was $125,000. 

The process led the City to request proposals for continuing golf but with the vendor responsible for capital improvements and irrigation water. Presently, the City subsidizes the water usage, costing between $50,000 and $70,000 a year.

THREE GOLF PROPOSALS

Three proposals were received from Port Townsend-based people interested in continuing golf. At least one of the vendors – AA Complete Solutions, LLC, PT Golf Course Players Club, LLC or Tonan Golf Shops, Inc. is a viable option, said Alex Wisniewski, Parks, Recreation and Community Services, who intentionally did not discuss vendor attributes or business proposals.

Wisniewski said that the three vendors, when interviewed, were “very open, honest and frank with us, which was very welcome,” on the challenge of covering irrigation and capital improvements.

Later in the Nov.  2 City Council meeting, Mayor Michelle Sandoval asked about a well the City had drilled on the golf course property. Wisniewski said that is a public works project, not a parks project, but in 2021 a well head is to be attached and a standpipe reservoir built so the well can provide golf course irrigation and serve as an emergency back-up to the regular City water system.

FOUR OPTIONS

Staff presented City Council with four paths forward regarding the golf course:

--1) Continue golf with a 10-year lease, with the vendor to pay 100% of irrigation and investment for capital improvements. A long-term lease provides incentive for investment cost recovery. The basic challenge is whether golf can generate money to pay for operation and maintenance and capital improvements.

--2) Continue golf with a 3-year lease which, based on the vendor’s success, has a possible 7-year extension.

--3) Continue golf for three years while the City begins a process to explore viability of alternative uses. City staff recommended this option. 

--4) Move toward an alternative use with golf ending and the course closing on Dec. 30, 2020. 

The City Parks and Recreation Advisory Board recommended Oct. 27 that if the property is changed from being a golf course, that portions of open space be retained.

Several councilors asked if Option 3 would allow for a continuation of golf in some form, even as a 3-hole course. That’s possible, Wisniewski, said, cautioning that continuing with short-term agreements does not change the fact of having “an aging facility that we’re trying to keep up on crutches” and without a long-term commitment, it is not viable for a golf vendor to make a big investment.

After Council discussion Nov. 2, it was decided to crack the door open slightly for golf to remain after three years, perhaps as a 3-hole course, or more, depending if no other alternative use is deemed viable.

PUBLIC PROCESS

The City’s review of the golf course planned for 2020 was overtaken by the coronavirus pandemic. Still, the public process generated 150 emails (mostly in support of golf), 90 participants in two virtual meetings and 830 survey responses. From all responses, the top three choices for future use were the same: protecting natural resources and critical areas, creating active and/or passive parks, and addressing community housing needs.

Wisniewski noted that the online survey questions were intentionally crafted but  “wasn’t completed as originally purposed” with questions drawing a “myriad of responses.” Still, the data received remains valid, he said.

In terms of public process, Sandoval said it is “very frustrating in a town that loves to have discussions” to not be able to meet in person.

FUNDING SOURCE?

The City has no dedicated funding to support golf operations and/or capital improvements. 

Moving forward, funding promises to be the biggest hurdle. It was noted creation of a Metropolitan Parks District (MPD) could be an option. An MPD has been talked about to support a new aquatic center; however, a ballot measure for public approval is required and it would create a new government entity – which means the City would relinquish control of the golf course property – that would have property taxing authority. Previous MPD discussions led to debate about the boundary of an MPD: would it be city limits or perhaps the Port Townsend School District boundary? Supporters of the Jefferson County Family YMCA worked in recent years to promote an MPD for the aquatic center, but failed to gain much traction as it meant increased property taxes.

POLITICAL HOT POTATO

Councilor Owen Rowe said voting a three-year cap on golf now is better than the City Council having to vote in three years to end golf during an election year for most of the current councilmembers.

Later in the meeting, regarding Rowe’s comments about trying to avoid a golf course decision in an election year, Mayor Sandoval said, “everything is political today.” 

Sandoval made a point to call out the “really nasty letters” and “major assumptions and misinformation” certain individuals have posted on social media about the golf course and failed to correct after their errors were shown. Specifically, “we didn’t cancel the lease” with Tonan, his lease options had been exhausted.

Sandoval asked people to “cut it out” and focus on how to make the property work. “Frankly, being super nasty to us doesn’t endear us to you,” she said.

“It’s pretty much popular these days to be mean and nasty but your elected officials here are pretty much volunteers and we’re doing our best to stretch the dollars…” Sandoval said.

Sandoval also noted that people who live outside Port Townsend are appreciated for supporting the golf course, “but the City of Port Townsend taxpayers are who actually are paying for the beautiful amenities here and we need to figure out a creative solution that is more sustainable…”

LEARN MORE

City of Port Townsend Golf Course Management RFP 2020

https://cityofpt.us/.../port_townsend_wa_golf_course...

Port Townsend Municipal Golf Course

https://cityofpt.us/parksrec/page/port-townsend-golf-course

Original source can be found here.

Source: City Of Port Townsend

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