Council approves $108,000 golf subsidy

by Anna Jauhola • Daily News
Published/Last Modified on Tuesday, November 18, 2008 10:32 AM CST

The Wahpeton City Council approved five to two a subsidy to help the Bois de Sioux Golf Course with expenses Monday evening. The Wahpeton Economic Development Commission (EDC) made the recommendation, which totals $108,000 — $96,000 will be a subsidy and $12,000 a zero interest short term loan.

The EDC concluded it was in the best interest of all to escrow the subsidy so timely payments can be made. Plus the golf board would then be able to adhere to the conditions determined by the EDC.

The subsidy would only be in effect for one year. The money paid for one year will be, first, $12,000 to provide interim funding of expenses/utilities directly related to clubhouse maintenance. Second, $36,000 would provide funding for long term debt service. This would be paid in $3,000 increments. Third, $15,000 would provide for pay-off of the Revolving Loan Fund Tractor Loan. Fourth, $45,000 would pay off Bank of the West for the 2008 operating loan. Approximately $8,000 is needed for an accountant. The first, third, fourth and fifth amounts were all deemed immediate needs.

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During October, the Golf Board requested the council help pay other bills amounting in $20,000. Some aldermen were not sure about the EDC proposal to pay off more of the Golf Course's debt. Aldermen Lane Wateland and Meryl Hansey voted no on the issue.

Wateland voiced his concern over giving them more money. "It started out with $20,000, which is fine, and now all of a sudden we're up to $128,000 in total and is there an end in sight?" Wateland said. "The people that were responsible for the golf course basically spent ahead of what they had in finances and now they're asking the city basically to do the same. And we' e got other places where tax payer dollars need to be besides at the golf course."

Economic Development Director Jane Priebe said the golf course is a central asset to the city that draws visitors. It is a great amenity that can't be lost.

Meryl Hansey said he was worried the council is paying with money the city doesn't have. "We're not even sure we're going to have it. With the economic situation the way it is our sales tax could go down the tube and we have no money," he said. Hansey stressed he's not against the golf course. "It's a great asset along with out gymnastics program, BW Blades, softball, baseball, etc." Hansey is worried the money appropriated to the golf board Monday will be just another bandaid fix, "just a little bigger and a little more costly, and is it going to solve the problem? I think now."

"This is a risk," Priebe said of the money appropriated. "(The golf course) is truly a community asset."

Fred Strege, volunteer attorney for the golf board, spoke to the council of his experience with the golf club. He was on the board for 12 years and when the 1997 flood hit, that's when the club began having problems. They had to take out large SBA loans which made cash flow tighter, he said, but he didn't observe the decline in golf members because of the financial issues. "I do not attribute all the long term cash flow problems to golfing interest waning in the community or region. I attribute it solely to the climate," Strege said.

Alderman Alisa Mitskog sat in on some meetings, though she is not a member of the finance committee or golf board. "This was tough," she said. "I'm not on the Ad Hoc committed, but I attended a few meetings." Mitskog believes the $108,000 allocated Monday will get the golf board on track. The city is funding this because it is not equipped to "take on the operations of the golf course," Mitskog said. "This will get them back on track and I don't think they'll be back."


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