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City Council Minutes <br />June 6, 2016 <br />Page 8 <br />Mayor Dietz stated the amount of money already invested in the course is too high <br />and suggested adding an option in a Request for Proposal to sell it. He stated <br />generating revenue is an issue and seniors won't pay higher rates. He noted the <br />greatest expense would be wages. He questioned if there are ways to lower the <br />budget by using volunteers. <br />Mr. Hecker stated other cities don't use volunteers due to the labor intensity needed <br />for some duties. He stated some tasks volunteers could handle are to take in fees or <br />teach other golfers. <br />Councilmember Olsen stated there is a need for golf for kids and seniors in the <br />community because the larger courses have too much pressure and more <br />experienced golfers. He stated the city could increase the training opportunities for <br />the Elk River High School kids. <br />Councilmember Wagner concurred with Mayor Dietz. She stated the city shouldn't <br />run a clinic. She commented the city could possibly rent it out for some additional <br />revenue once in a while if there was a school in the metro area that would be <br />interested. <br />Mayor Dietz stated the city could sell it with the requirement it stay a course for 5 <br />years. He questioned whether the Council could require a new owner to keep it a <br />course for a few years or limit the number of homes on the property when <br />developed. This would relieve the city of capital expenditures. <br />Councilmember Wagner stated it was not unreasonable. <br />Mayor Dietz stated if the course is retained, expenses must come down, which may <br />mean having a large volunteer group. He stated he is not willing to subsidize it. <br />Council consensus stated their least favorable option was to sell it for development. <br />Councilmember Westgaard stated his second least favorable option would be to <br />operate it as it was in the past. <br />Councilmember Olsen stated he doesn't believe the city should be involved with the <br />course but should lease or sell it. <br />Mr. Pormer noted the evolution of golf courses from country clubs, to private pay to <br />play clubs and municipal courses. He stated that municipal courses were intended to <br />provide golf to the community and subsidies were tolerated. The question is what is <br />the Council's tolerance for a subsidy limit. If the decision is to sell and the desire is <br />to put limits on the parcel, the market today may not bring the highest return in this <br />part of town. Also, the unsubsidized golf market is not very strong in the <br />community, which was stated in the 2006 course study and if turned over to a third <br />party to operate it may not stay a course for very long. <br />P0NIA l6 B1 <br />NATURE <br />