River Bend Golf and Recreation Area is not a drain on the public purse but a viable jewel in Central Alberta, says the course’s general manager.
Andrew Gilchrist, general manager of the city-owned recreation facility, said people may think short-term when they hear the city may have to re-invest in the property. Gilchrist said the new agreement with the City of Red Deer is a step in the right direction to put the golf course on solid financial ground.
On Monday, the city gave the struggling golf course another helping hand while entering into a new three-year contract with the non-profit society. The city agreed to write off $337,800 in licence fees and to defer payments on the $1.7-million loan for the length of the contract. The society has been unable to make loan payments since 2007. Property taxes will continue to be due.
Gilchrist said the picture is not crystal clear for everyone to understand but the course is a very viable business that had a couple of rough years because there was no long-term planning and because of the global economic recession. He said the new agreement is a medium-range solution because no one can predict the future.
“We are definitely a self-sustaining business as long as we’re not also carrying all the park costs associated with providing a 420-acre park, having done that for 23 years,” said Gilchrist.
In 2012, the golf course underwent an operational audit that directed the development of a longer term sustainability plan. The new agreement stemmed from the audit and ongoing talks.
A key requirement of the new agreement separates the golf and non-golf activities. The society is solely responsible for operation of the golf and non-golf related amenities. The society will retain its own reserve and is responsible for the capital costs related to the golf-related amenities.
The city is responsible for capital costs related to the non-golf amenities and the city-owned assets, including the clubhouse. The city will pay an annual fee for service for the operation of the non-golf activities ($144, 200 in 2014 and $148, 526 in 2015). The new agreement no longer includes an annual licence fee payment. The society will budget for minor capital as part of its operational budget.
Greg Scott, director of Community Services, said the impact on the city’s capital budget is unknown at this time.
“We are exploring that now and will be dealing with it as part of the 10-year capital plan,” said Scott. “This will be discussed as part of the 2014 budget deliberations.”
Coun. Dianne Wyntjes, the council representative on the board, said no one can predict what will happen in the future but the new agreement will allow the board to have a continued focus for the golf course’s sustainability.
Gilchrist said the previous agreement had its purpose in its day but it did not anticipate the changing trends of running golf courses and planning for the future infrastructure needs.
The society took out a loan in 2004 to expand the clubhouse and has not made payments since 2007.
During the planning of Waskasoo Park and the early days of the course, city administration was opposed to expanding the club house because it was felt the operating costs could not be sustained.
crhyno@www.reddeeradvocate.com