Officials in Cleveland, Tenn., have declared that the golf course’s initial lessee has defaulted on its leasing agreement, which began on March 1. The city will accept bid proposals through noon on Friday, with the intention of leasing the facility for an initial term of five years.
The Cleveland (Tenn.) City Council will consider another round of bids to lease Waterville Golf Course on June 1, the Chattanooga (Tenn.)-based Times Free Press reported.
City officials have declared that the golf course’s initial lessee, GSP Business Alliance, has defaulted on its 10-year $60,000 annual leasing agreement, which began on March 1. The business did not make the first quarterly payment of $15,000, nor did it maintain the greens or even open the golf course for business by a May 25 deadline, the Times Free Press reported.
On Monday, the City Council voted 5-2 to accept bid proposals through noon Friday at the Municipal Building, with the intention of leasing the facility for an initial term of five years, with the option to renew for another five years. The lessee will also have the first refusal to purchase Waterville Golf Course if the City Council decides to sell it, the Times Free Press reported.
“We need to get out of the golf course business,” said Councilman Bill Estes, who joined Councilman Richard Banks in voting against the measure. “The greens are lost.”
Estes described the discussions about Waterville Golf Course as positive and said he was not so much against leasing the facility as he was for jump-starting the process to sell the golf course to interested parties, the Times Free Press reported.
Selling the golf course is an option, but it can take time for the process, which includes declaring the course as surplus property, Cleveland Assistant City Manager Melinda Carroll said. There was no way to have the site ready to sell by the end of May, she said.
Cleveland also will pursue the $15,000 lease payment that it is owed by GSP Business Alliance, Estes said. “We will go through the courts,” he said. “It’s the right thing to do for the city.”
Rocky Morgan, CEO for GSP Business Alliance, could not be reached by the Times Free Press for comment.
In City Council meetings throughout the spring, golf club members and Cleveland officials complained that Morgan never returned their calls. Cleveland Attorney John Kimball said he received communications from GSP’s attorney, who stated that delays in opening the facility were due to insurance hurdles involving the wellheads on the golf course grounds that are used by Cleveland Utilities, the Times Free Press reported.
The Cleveland City Council decided to lease Waterville Golf Course in January after the facility reached an annual deficit surpassing $300,000 for the third year in a row, the Times Free Press reported.
A Municipal Technical Advisory Service study attributed an increased decline in rounds played as the key factor in the golf course’s financial losses. A comprehensive effort to boost membership would be needed for Waterville Golf Course to possibly reverse the trend, according to the study.
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