The course has had it rough - problems with erosion and flooding, repairs and a bank foreclosure.
Still, Allen city officials maintain that Chase Oaks Golf Club is a much-needed amenity in a city that's growing, and they say the course won't be a financial burden.
At a time when golf courses are abundant and the number of rounds played is down, Allen city officials do not seem worried about their recent decision to buy the course for $5 million.
"I have worked in cities where we have worked with golf courses, and in every city ... that golf course broke even," said Allen City Manager Peter Vargas.
Mr. Vargas said the city plans to hire a couple of consultants to look at the erosion problem and structure of the course, which is west of Central Expressway on the Allen-Plano border. Those issues actually helped the city negotiate the selling price.
"We said there's easily $2 [million] to $2.5 million worth of work, so the price is going to have to come down," he said.
The 27-hole course opened in 1986. It was designed by Robert von Hagge and former professional golfer Bruce Devlin, who have designed other courses around the country. The property includes a 10,000-square-foot clubhouse and a lighted driving range.
Maintenance issues aside, Mr. Vargas acknowledged that the market has not been friendly to the golf world. But he said he thinks things will be different in Allen.
In 2001, a study showed demand for a public course. Last year, officials discussed the possibility of including a golf course in a future housing and retail development off State Highway 121. But those plans died after it was determined that adding a course to a market already saturated with such facilities would not be lucrative.
When officials learned last fall that Chase Oaks was for sale, they decided buying an existing course was a better option. The course had been closed for a year and undergoing repairs.
The city is issuing $5.5 million worth of certificates of obligation and has 90 days to close on the property. It has set up an enterprise fund and will use course revenue to pay the debt and operating costs.
Allen officials project a slight operating loss in 2004, followed by years of profits expanding to nearly $550,000 in 2008.
But it's unknown who will oversee daily operations. A decision is expected by the fall.
Municipal courses around the Dallas-Fort Worth area have had mixed results. Some, such as Plano's Pecan Hollow, have been successful, said Don Wendell, Plano's park and recreation director.
The course is not funded by tax dollars. During the last five years, revenue has exceeded expenses, according to numbers released by the city. Some of the revenue now is being used to pay off a loan used to build a new clubhouse.
Other cities, such as Carrollton and Lancaster, have faced financial woes.
During the last three years, Carrollton officials have invested more than $7 million in Indian Creek Golf Club. This year, officials are considering an $800,000 budget request for the course.
They've attributed the need to the increase in local golf competition and the economic downturn.
The number of rounds played has been down in the last three to four years, according to Golfweek magazine. Brad Klein, architecture editor, has called breaking even at a municipal course a "lofty goal." But he said he doesn't necessarily think the courses have to show a profit because they provide a public service.
Mr. Klein said too many courses were built for the wrong reasons - including, in the 1990s, to sell real estate.
As of July 2, there were 2,392 municipal golf facilities in the country, 168 of them in Texas, according to the National Golf Foundation.
Last summer, Lancaster turned over operations of Country View Golf Course to its golf pro at the time, David Royar. At the end of the five-year contract, the city has the option to continue the agreement, in which the city receives $50,000 per year, or accepts a percent of gross revenue.
"We were losing quite a bit of money on it," said Lancaster Mayor Joe Tillotson. "I think primarily because of labor costs."
However, he said every city is different.
"I think ... being city-owned and operated by the city might work in some communities," he said. "It did not in ours."
Rick Herold, Grand Prairie's director of parks and recreation, said his city is subsidizing both of its courses with $500,000.
"The city would like us to get to a point that the user fees pay all of the debt and operational costs, but that's not currently happening," he said.
Despite the costs, Mr. Herold said public golf courses are important amenities in cities.
"I think it's a good opportunity for a city to foster the game of golf to all of its users," he said.
Greg Durante, golf programs manager with the city of Arlington, has four public courses.
Except for the upscale Tierra Verde, the courses generate enough revenue to pay most of the operational costs, he said.
But they're not gold mines.
"It's a great asset to have under your wing," said Mr. Durante.
"If they're looking for it to be a strictly money-making proposition, then I don't know that in today's climate it's going to be that big of a moneymaker."
Mr. Vargas said the key would be marketing the course to nontraditional users such as the school district.
"I think the market is cyclical," he said. "We have several options and we will be evaluating what we think will be in the best interest of our community."
Source: The Dallas Morning News