Source: St. Cloud (Minn.) Times
An Edina-based company's interest in the Little Falls Country Club could relieve the city of a four-year financial loss.
Representatives of Tradition Golf toured the 18-hole municipal golf course and clubhouse with Mayor Brian Mackinac this month and shared their plans to update the '70s-era pro shop and dining facility, Mackinac said.
Council members learned about the basics of the proposal and agreed to look into the possibility during a planning session Feb. 14.
They will decide Monday whether Granite City Real Estate of Waite Park will broker the deal for the city. If they approve that, representatives of Tradition Golf could present details about their proposal March 7.
The property would need to remain a municipal golf course of at least nine holes, according to the deed signed when R.D. and Sarah Musser donated the land to the city in 1943.
City Attorney Peter Vogel said the city could negotiate a long-term lease, but the deed might not limit the city to that. He will report his findings Monday.
A lease
Dan Tempel, president of Granite City Real Estate, envisions a 99-year lease that would allow Tradition Golf to take over the course just as if the company bought the land.
"They just can't continue to lose money on it," Tempel said. "The private sector is able to operate the facility more efficiently and in a better way with more resources to be able to create a facility that's really going to be a top-notch golf course."
That's a deal Mackinac thinks the city cannot let slip away. He would like a signed agreement by April, before the course opens for the season.
"I see no reason why, if the deal is on the table, why not do it now," he said. "If it is viable, I think we should jump at it."
Not all council members feel the same, City Administrator Rich Carlson said. Carlson and Vogel said a deal might not come until next year.
"This may be controversial, so the council may want input before they act," Vogel said.
Financial troubles
The Little Falls Country Club has been struggling financially for four years. The golf course climbed out of the red only in 2002, when the city sold a piece of land that abutted the golf course for $100,000, said Lori Kasella, the city's finance officer. Last year, the city reported a loss of $51,100, Kasella said.
The city reduced the number of employees and operating hours to reduce costs, Mackinac said.
The council recently discussed hiring a golf professional to assess the operation, but Carlson said Tradition Golf's interest has put that on hold.
Mackinac said the city does not have the money to renovate the course or clubhouse to attract avid golfers like himself, but a business such as Tradition Golf could make the necessary changes.
Tradition
Tradition Golf bought the Fairways Golf Course late last year with plans to invest $250,000 in course and clubhouse renovations. The course, about 41/2 miles east of St. Cloud, opened in 2001.
Tradition Golf has built Arnold Palmer-designed courses in Blaine and Polk City, Iowa, and has plans in three other cities, including the Brainerd area and Grand Forks, N.D. The company also has courses in Prior Lake and Northfield.
Steve Dowling, director of marketing for Tradition Golf, said the lease agreement poses a unique opportunity for the company to use its resources to improve the facility's operation.
"We're totally undecided on what the potential of it is," Dowling said. " ... It's just in the early stages of talks. No decisions have been made."
He does not expect the company to invest significant capital because the city would retain ownership. Dowling said the company sees the agreement as a business investment. Tradition also has development, mortgage, realty, title and wealth management companies.
Leaders have moved forward with the idea, thinking the deed would eliminate sale as a possibility. But Carlson said that may not be the case.
"That's a legal question that will be addressed Monday," Carlson said. "There are ways."
Carlson has asked Vogel to write a letter to the council explaining the options.
In any agreement, Mackinac said, the city would require the company to employ the city's workers for at least a year. Two employees have worked at the golf course in some capacity for more than 20 years; the superintendent joined the staff five years ago, Carlson said.
