Article Contributed on: 6/29/2009 9:30:32 AM
Less than rosy financial figures at a city-run golf course in Commerce City is forcing officials to reconsider how it pays off the remainder of its debt.
Declining revenues at Buffalo Run Golf Course, 15700 E. 112th Ave., have made it impossible for the city to meet existing plans for debt retirement, equipment replacement and capital repair projects, according to course manager Paul Hebinck. The city currently is looking at options that include a debt service plan based on multi-year minimum payments.
The option would potentially impact the city's golf enterprise fund and overall budget. The city hopes to avoid other options, such as selling the course, leasing it out to a third party or converting the greens to an open space area.
Councilman Jim Benson, who represents the district in which Buffalo Run is located, feels those options should be taken off the table and maintains it's worth it to subsidize the golf course -- if the deficit doesn't get out of control.
"It's really kind of a jewel in our crown," Benson said. "I think it's just a great showcase for Commerce City."
The course runs a deficit of approximately $100,000 to $200,000 each year, he said, which is minimal given all the development the course has spurred in the nearby area.
"I don't mind subsidizing (that amount) just because of what it means for the image of this city," Benson said. "To me, it's worth it."
The golf course also features one of the few sit-down type restaurants - the Bison Grill - in his district, he said.
Buffalo Run, an 18-hole course that opened in August 1996, is the only city-run course in Commerce City. Construction costs totaled more than $4.2 million when the course first opened and the donated land was estimated at approximately $2.86 million.
In November, the city hired THK Associates - an Aurora-based firm that specializes in golf course feasibility - to analyze the operations at Buffalo Run as well as the golf course market in the area. The overall annual expenses for the course, which are estimated this year at approximately $1.8 million, were deemed "very reasonable and prudent for such a well-maintained facility," according to the report.
Expenditures at the course include everything from salaries and benefits to plant material and fertilizers, said Kim McCarl, public relations manager. Overall revenues at the course this year are estimated at $1.86 million, she said.
A final course of action will be considered during the city's upcoming 2010-11 budget process.