Source: The Daily Telegram (Wisconsin)
The Nemadji Golf Course is now under a management agreement with the city of Superior.
On Tuesday, the Superior City Council voted 9-1 to approve a lease agreement between the city and Steve Flagstad, golf superintendent, and Mark Carlson, course manager, to manage the 36-hole course. Councilor Bob Finsland cast the sole no vote.
Supporting the agreement, Councilor Ed Anderson said the city cannot continue to accept the downward slide of city money. He also said with the agreement the city is guaranteed yearly revenue. The city owes $ 1.5 million for the 1990 addition of nine holes; more than $ 200,000 was borrowed from the city's capital improvement fund and a $ 700,000 cash deficit in the course's enterprise fund is still outstanding.
The enterprise fund is in the red, admitted Councilor Kevin Norbie. He cautioned the council saying that if a change is not made the debts will grow.
"I think this is the best way to do it," he said.
The five-year agreement calls for the city receiving either a percentage (10 percent for 2005, 10.5 percent in 2006, 11 percent in 2007 and so on) of all gross revenue or a minimum annual rent payment of $ 109,000 for 2005-2006, $ 140,000 through 2009 and $ 150,000 thereafter.
An additional $ 31,000 will come to the city in 2006 through its contract with Daniel Pendergast to operate the concession stand at the 72-year-old golf course. At the end of the contract, Carlson and Flagstad can decide to either take over the stand or enter into a contract with Pendergast to oversee it.
The lease agreement also stipulates the city be paid 1.5 percent of gross revenue, which will be put into an account to finance improvements for the course. Payments to the account would climb to 2 percent if gross revenues exceed $ 1.8 million.
"It is a very good deal," councilor Dan O'Neill said of the contract, adding it is a "win-win" situation for all parties.
Only two members of the public spoke on the agreement. Superior residents Gilbert Davison and Don Reed thought the city was not receiving enough revenue, especially with all the money taxpayers have paid in through the years. Reed also argued that the question of how the course is run should have been decided in a referendum.
The golf course will remain a public course, membership fees will not be charged to course users and the costs to play are to remain at reasonable rates.
The management agreement is parallel to the one the city has for the operation of Barker's Island Marina. The city owns the property but hires someone else to maintain and manage it.
