Source: The Daily Oklahoman (Oklahoma City, Okla.)
Officials hope profits from the city’s mineral rights can help shore up operations at the municipal golf course.
That proposal to fund operations at Crimson Creek Golf Course is scheduled for discussion at tonight’s regular biweekly meeting.
Roughly $54,000 is generated annually from oil and gas profits at wells on city-owned property, some of which is on golf course property adjacent to Lake El Reno, City Clerk/Finance Director Ruth Beal said.
The money now is deposited into the city’s general fund, Beal said.
Use of funds pending
City Manager Doug Henley is unsure whether the council wants to use the money for the golf course or earmark some or all it for other purposes.
The city’s recreational authority oversees operations at the public course. Most of the trustees also are elected council members.
Edmond-based Millennium Golf Properties recently was notified by trustees of a suspected breach of contract. Trustees contend the contract was breached by a company letter in November expressing a desire to pull out of a 5 1/2-year contract that took effect Jan. 1, 2004.
Millennium officials cited lack of ability to profit from the contract. In late December, Millennium officials reversed their decision and asked to continue operating the course.
Henley said trustees might seek to terminate the operational agreement with Millennium. Alternatives include hiring another golf course management company or hiring a course superintendent, whis is waht the city did before making the deal with Millenium.
Henley said the city once paid between $50,000 and $75,000 per year to subsidize course operations.
“My biggest concern, and my financial director’s biggest concern, is additional outlay,” Henley said. “Those are the concerns of the authority, as well — what’s it going to cost?
The (Millennium) agreement was just negotiated about a year ago. We did that to get the city out from under any further obligation. An ‘asset for the community’
Under the terms of its agreement, Millennium Golf operates the course in exchange for an annual lease payment to the city of $2,500. The deal is not set to expire until mid 2009.
The city spent about $3 million to acquire and develop the golf course in 1997 after the El Reno Country Club folded. The course was expanded from nine holes to 18.
Interest on the deb, added another $3 million to the city's bill. The course reopened in July 1998.
"It's a tremendous asset for the community," Henley said. "It's one of finest courses in the state. If we only had a clubhouse, that would be that much better."