Canton is the latest government to resolve its golf problem.
The city leased the closed, city-owned Fairways of Canton course to a company that plans to reopen it in the summer of 2011.
The move will save Canton maintenance costs, about $45,000 since the publicly owned but privately operated course closed in August. But it will not bring any money back into the strained city coffers for at least 11 years. The lease agreement allows the Next Generation Golf company use of the financially failed course at no cost until year 11 of the lease, when it must begin profit-sharing with the city. Or the company may buy the $6 million course anytime after year two of the lease at 50 percent of its appraised value.
Next Generation Golf, based in Marietta, will take on costs of improving the course and the clubhouse for the city. Having the course remain open will benefit the city in keeping up property values, which helps stabilizes tax income, city council members said.
"I really do [feel good]," Mayor Gene Hobgood said. "For now, any expenses are not on the city, other than our continued $300,000 a year we are paying."
That payment is for the land, which the city keeps no matter what happens to the course. It owes about $2 million. The public-private partnership was built with a number of developer partners in an expansive Canton subdivision and opened in 2007.
"We were hoping to sell it and see it continue to operate as a golf course," Hobgood said. "However, there was no real market for golf courses. This is about as good as we could do."
It has been a tough year for the local golf industry, with public and private courses failing across metro Atlanta. Several local governments have subsequently been caught in debates over mixing golf and government.
Earlier this month, Gwinnett County approved paying $6,000 a month to CGL of Savannah to manage the county-owned, financially troubled Collins Hill Golf Club.
In Forsyth County, a discussion last summer over whether to buy Lanier Golf Club split the county commission and the decision is still in limbo.
Douglasville's golf course has been in and out of financial trouble and the state's seven golf courses have lost more than $900,000 a year since 2002.
Given the troubled nature of the industry, Canton leaders were satisfied with the lease. Foremost, it will keep the course from going to seed, which would have made it a more difficult sale or lease.
Councilman Bob Rush said keeping the course operating will keep housing values near the facility from falling further and may help attract new construction to the neighborhood. The impact fees generated by new homes is supposed to help pay for the course land, but fees have fallen drastically with the end of the building boom.
"At least with the golf course open, we don't have to worry about maintaining it and two million-dollar buildings and we don't have to worry about vandalism," Rush said.
The community has pitched in to keep the course in decent shape, Rush said. For instance, a retired golf course manager helped the city with maintenance.
Al Yuzzi, who lives near the course, said he and neighbors were very happy to hear about the lease.
D.J. DeVictor, one of the partners of Next Generation Golf, said they plan to make the very tough course friendlier to players by removing more than half of the 68 bunkers and opening up the fairways.
"You can't get the public to come out and lose three balls on the first four holes and have fun," DeVictor said.
City residents will also get a discount for playing and the company will make improvements to the putting and practice areas and the clubhouse, he said. DeVictor hopes to open the course in June after new sod has knitted into the soil.
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