The El Paso, Texas course, which is owned by the El Paso International Airport, will now be operated by Spirit Golf Management. Developer Russell Hanson offered to buy and save Butterfield Trail Golf Club in April, but his plan to build housing around the course could have conflicted with Federal Aviation Administration rules, officials said.
El Paso, Texas City Council voted to approve an agreement with Spirit Golf Management to run Butterfield Trail Golf Course, KFOX14 reported. According to the agreement, Spirit Golf Management will pay the city a percentage of sales through Dec. 31, 2021. Following which, Spirit Golf Management will pay the city the greater of the percentage of sales or a minimum annual guarantee of $125,000 per year through Dec. 31, 2023, then an annual payment of $191,000 per year beginning January 1, 2024 and lasting for a 10-year period with the option to extend an additional 10 years.
The percentage of sales to be paid is 10 percent of food, non-alcoholic beverage and pro shop sales; 15 percent of beer, wine and alcoholic beverage sales; and 12 percent of green fees, including membership, driving range fees and golf car rentals, KFOX14 reported.
The El Paso International Airport announced its intention to permanently close Butterfield Trail Golf Course earlier this year, KFOX14 reported. In May, city council voted to terminate the management contract with Kemper Sports Management.
C+RB reported in April that there was new interest in saving the city-owned golf course. Developer Russell Hanson offered to buy and save Butterfield Trail Golf Club in April, but there was a major impediment to the proposal he has made to buy it, the El Paso Inc. business weekly reported. Hanson’s plan to build housing around the course, which was made to the city on April 19, may conflict with Federal Aviation Administration rules, officials said.
According to city officials, the new management contract maintains an important Quality of Life amenity and provides profit potential for the city, KFOX14 reported. The course could re-open as soon as Fall 2020, according to city officials.
“This is a big win for the community and the Airport. Under this agreement, the Airport will no longer be subsidizing the golf course and instead will generate revenue from it,” said Director of Aviation Sam Rodriguez. “We look forward to a successful partnership with Spirit Golf Management who helped us realize this strategic and innovative concession agreement that will maintain a key quality of life amenity and economic driver for El Paso, the region, and its citizens for years to come.”
The company that will operate Butterfield Trail Golf Course also manages the Picacho Hills Country Club in Las Cruces, N.M. and Sierra del Rio Championship Golf in Elephant Butte, N.M., KFOX14 reported.
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