Mayor of Duluth, Minn., to fix courses' flaws

Mayor Bergson wants to get a handle on the city's Golf Enterprise fund before he embarks on what he says could be revenue-producing ventures.

A new clubhouse with a top-notch restaurant at Enger Park Golf course.

New houses lining some of the holes on Lester Park Golf Course's Lake Nine.

A new nine-hole executive par-3 course across the street from Enger's 27-hole municipal course.

Sound far-fetched?

Not to Mayor Herb Bergson, who sees all of the ideas as the future of golf in Duluth.

But first things first.

Bergson wants to get a handle on the city's Golf Enterprise fund before he embarks on what he says could be revenue-producing ventures.

The fund, which accounts for operations at Enger Park and Lester Park golf courses, has shown a $1.26 million deficit from 1994-2003. A part of the total expenses is an annual debt service payment for money borrowed in 1989-90 to expand each course to 27 holes.

With that aside, however, operating expenses have been $173,706 more than operating revenues at the two municipal courses the past two years and Bergson is tired of the city pulling money from the General Fund to offset those losses.

"Whatever the cost of the courses should not be borne on the shoulders of the taxpayers, but should be on the shoulders of the golfers," said Bergson, who was elected in 2003. "We will not operate at a deficit."
 
BERGSON'S VISION AT ENGER

Bergson is so sure he can make golf a profitable entity in Duluth, he's enlisted the help of architect Tom Sunnarborg of Pinehurst, N.C. Sunnarborg, a former Duluthian who played both Enger and Lester as a youth, shares Bergson's vision and is donating his time to develop a plan. Recommendations would be sent to the city's golf committee and then to the city council for approval.

"It's totally on his time," said Bergson, who first met with Sunnarborg on July 12 to discuss his plans and hopes to see written recommendations by fall. "He's a former Duluthian who has some rather large projects around the country and who just wanted to help."

Bergson said he and Sunnarborg recently discussed an executive par-3 course across Skyline Boulevard from the current clubhouse and next to the driving range.

Bergson believes the venture would produce much of the revenue needed to balance the golf enterprise fund.

He also believes the executive course would be a new niche in Duluth, drawing beginners, seniors and those who have limited time to play.

"Right now, those people are playing courses outside the city of Duluth and they're going in masses," Bergson said. "It's a market Duluth has never tried to capture and we should."

Events play a key role in this scenario, according to Bergson. He believes Duluth's municipal courses don't have enough holes to support group events as well as members' rounds.

"If we add a new executive nine, that would be new revenue and that's how you'd pay for it," Bergson said. "It would then give you the ability to hold an event in addition to general play. You'd have 18 holes for each."

Paul Schintz, Duluth's director of golf, likes the executive course idea.

"Herb is doing the right thing. He's looking to increase revenues," said Schintz, who has been either at Enger or Lester since 1996. "For me, it's just a part of what needs to be looked at."

Bergson already has found success with the ideas he'll be pushing in Duluth. As mayor of Superior from 1987-95, those strategies helped Nemadji Golf Course become a revenue-producing venture until two years ago. Once Nemadji grew to 36 holes in 1991, the course could keep the daily golfers happy as well as host events.

"The daily rates are the bulk of golf revenue, so you need to have at least 18 holes to accommodate them," Bergson said. "So, if you can get the person who right now is going to an executive course for a bar event out of the community and bring them into the community ... it's brand new (revenue) because they were going someplace else."

To host such events, Bergson envisions a new clubhouse with banquet facilities, with a local restaurateur in place to host such large events.

"I've suggested that we allow private business to run the clubhouse at Enger Park," Bergson said. "We would get out of the food and beverage business completely."
 
A LOOK AT LESTER

Bergson believes the goal of public golf is to recreate and to put people through the golf course as quickly and painlessly as possible.

The Lake Nine at Lester Park Golf Course doesn't do that, he said.

"People are looking for lost balls, seniors have trouble climbing the hills and the fairways are crowned so the balls are rolling into the rough," Bergson said about the Lake Nine, arguably the toughest nine holes in the Northland.

That's why he's asked Sunnarborg to map a possible new layout with room for home lots overlooking the course and capturing views of Lake Superior.

Sunnarborg's initial recommendation is for the city to sell lots on the crest of the Lake Nine's par-5 second hole, one of the toughest holes on the course.

"I don't think many golfers would be against us making changes to the Lake Nine," Bergson said. "It seems like a perfect place to look at the possibility of housing."
 
PAYING FOR IT ALL

Bergson believes an executive par-3 course at Enger Park and changed to Lester's Lake Nine will lure more golfers.

To fund the new ventures, Bergson offers this plan:

"If we were to borrow additional money and incorporate existing debt, we could borrow as much as $3 million and actually reduce our annual debt (about $370,000 a year) at the golf courses," Bergson said. "It's like refinancing your home and putting some fix-it money in there making it a home equity loan. The annual debt payment would actually decrease, so we'd be saving money, plus making an improvement that would bring in new revenue. That's our goal here."

Duluth City Council President Jim Stauber agrees that the city's golf enterprise fund should be self-supporting. But he has differing ideas on how to get it there.

"As the city faces a $5 million deficit, even a small waste of dollars is alarming," Stauber said about the deficit shown in the golf fund. "When we are so financially strapped, I am unclear how we can be discussing additions to these courses.

"The mayor has proposed raising city property taxes 20 percent in 2005. I will not support raising taxes at all until this issue is properly addressed."

Stauber's proposal to help balance the golf fund books each year would take a look at privatizing the city courses.

"One of my proposals to help balance the budget is to consider a plan similar to what Superior has done," Stauber said. "Either privatize the courses or lease them to a private entity."

In Superior, Mayor Dave Ross is suggesting Nemadji Golf Course should operate under a private management agreement in the wake of recent losses ($70,000 in 2003) at the city-run course. He wants the city to negotiate with head club professional Mark Carlson and superintendent Steve Flagstad, who, under the proposed plan, would lease Nemadji.

Bergson, who opposes privatizing Enger and Lester, hopes city officials give his plan a serious look.

"It took a little while at Nemadji, but we were successful," Bergson said. "I know we helped Nemadji succeed and I know with the same ingredients at Enger and Lester, where the terrain and views beat Nemadji's to death, I can't imagine it not being a success.

"We have the staff now, we've got the ability to generate some money and reduce the debt and make some neat things happen. I just hope the (golf) committee and the council jump on board."

Source: Duluth News - Tribune

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