The project would replace a 1930s-era building at the Covington, Ky., property. Proponents of the project say the city shouldn’t pass up the opportunity to build a clubhouse that would use no city money, while detractors counter that the financially beleaguered city should not take the risk.
A $5 million clubhouse will replace the 1930s-era building at Devou Park Golf Course in Covington, Ky., but not without controversy, the Cincinnati Enquirer reported.
The Covington City Commission on November 10 voted 4-1 to approve a contract to build a new clubhouse, over the objections of Commissioner Steve Frank. Proponents said the city would be crazy to pass up the opportunity to build a clubhouse using no city money. Detractors countered that the financially beleaguered city is crazy to take the risk, the Enquirer reported.
Money from the Drees Pavilion in the park, the Devou Park Trust and golf course revenues will pay for the project, City Manager Larry Klein said. Construction on the clubhouse will begin next month, and will open in spring 2017, Klein said, offering a more affordable option for events compared to the Drees Pavilion, the Enquirer reported.
“It’s an opportunity for someone else to pay for a new clubhouse,” Klein said. “It will bring more people into the city, into the park to spend money here.”
It’s a risk that the city shouldn’t take, said Frank, who is a financial planner by trade and believes the debt on the building could affect the city’s credit rating, increasing interest rates and the cost of of doing business. He also warned there’s no guarantee Drees Pavilion, the golf course and the park trust will hold up their end of the bargain, the Enquirer reported.
Frank said he’s skeptical that golf will cover the expenses. The new clubhouse will have to make money through weddings and events that will compete with the Hotel Covington and other private ventures downtown, the Enquirer reported.
“I don’t believe the purpose of government is to compete with private business, nor do I believe that’s a good use of debt,” Frank said.
Klein said the risk to the city is small. It will allow the golf course to pay for itself, rather than the city having to cover the shortfall, Klein said. The city each year takes $50,000 to $70,000 out of its general fund to cover the golf course operations, Klein said. The added events and revenue from the new facility will cover this, he said.
Commissioner Chuck Eilerman called it a boon to the city. “The city has no financial skin in the game,” Eilerman said. “We’re not taking money from anything else. We’re not taking money from playgrounds and streets. It is not impacting our credit.”
The new facility will feature increased event space, an improved park ranger station, a sandwich shop and bike rentals. The new clubhouse has been in the Devou Park master plan since 2008, the Enquirer reported.
“This is a gift,” Klein said. “It is a smart way for the city to do capital projects.”
Tell Us What You Think!
You must be logged in to post a comment.