Three courses owned by the city will look to boost revenue with a pair of golf professionals now overseeing all three pro shops to provide continuity. Rent for the pro shops is also being raised and the pros are being required to take over more course-maintenance duties.
City officials hope a new model for pro shop management will reduce growing losses in Waterloo, Iowa’s municipal golf course budget, the Waterloo-Cedar Falls Courier reported.
According to The Courier’s report, City Council members voted 6-0 December 17 to approve a five-year contract with ML Golf Inc. to run the pro shops at the Irv Warren, Gates Park and South Hills golf courses.
The city owns the three golf courses and the pro shops, The Courier reported. The golf pros collect green fees for the city and generate their revenue from food and merchandise sales, golf cart rentals and lessons.
ML Golf Inc. is a partnership between South Hills pro Monte Meyer and Gates pro Nate Lubs, The Courier reported. Irv Warren pro Andy Devine decided not to renew his contract, which prompted Meyer, Lubs and city staff to evaluate options to move forward
J.B. Bolger, who oversees golf operations for Waterloo’s Leisure Services Commission, told The Courier the new partnership should provide more continuity between all three courses, which could help boost what has been declining play.
The new contract also increases the city’s revenue from the pros, which could cut a more than $250,000 annual property tax subsidy for golf operations, The Courier reported.
“It’s no secret that golf in this area, actually nationwide, is not maybe trending the way we would like it to,” Bolger said. “The pros are stepping up in a number of ways to cover some of the costs that were previously the city’s.”
The contract will raise the rent the pros pay at the city-owned pro shops from $51,000 this year to $66,000 by the end of the contract. It also requires the pros to take over a number of maintenance items the city had been funding in the buildings, The Courier reported.
Councilwoman Margaret Klein supported the contract and asked, “Will this put us in the black?”
Bolger said the city had already taken other steps, such as moving from paid to volunteer starters, to help reduce the city subsidy to the golf courses, The Courier reported.
“Those changes along with new marketing initiatives should go a long way to getting us at a break even,” Bolger said. “I can’t say for sure. If you can tell me what the weather is going to be for the next five years, you’d get a better forecast.”
According to The Courier’s report, Councilman Steve Schmitt also was wary of the golf deficits but praised the new pro shop arrangement.
“As we have talked on council for a number of years, golf in general is a money-losing proposition these days,” Schmitt said. “The fact they were able to come together and come up with this plan [means] we’re certainly making headway.”
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