City to sell land amid golf course's financial woes
Binder Park Golf Course will bank on selling land, increasing fees and bringing in new revenue streams to stay afloat.
"No one likes to see the numbers that we're projecting but I think you're being proactive," Commissioner Mark Behnke told the facility's officials Tuesday meeting. "Understanding the decision we need to make as a commission, I think it's important that we share this with the public so maybe Ron (General Manager Ron Osborne) will be able to put together plans to get more of our people to spend time at Binder Park Golf Course."
The Battle Creek City Commission on Tuesday unanimously approved the city-owned facility's $1.2 million 2016 spending plan, which risked falling $123,000 short of a balanced budget when officials presented numbers just two weeks ago.
Vice Mayor Susan Baldwin and Commissioner Mike Sherzer were absent Tuesday.
Officials are expected to use up to about $51,000 of contingency funds to make up for this year's shortfall. Next year, they estimate they will make $160,000 from selling land around the golf course, and bring in $19,000 for non-golf revenue — nearly nine times more than it projects to earn in 2015.
Golfers also will see a 3 percent increase in greens, membership and cart fees. Officials expect to bring in about $1.1 million in revenue, about $80,000 less than estimated expenses.
In addition to operating in an oversaturated market and amid the industry's trend of fewer golf rounds and more course closures, the 27-hole facility also is grappling with increasing bond payments. About $3.5 million worth of bonds was issued in 1999, and a plan was approved in 2008 that restructured the debt and lowered payments through 2014. Now, they're increasing by $5,000 annually, and the city is bracing for a $180,000 principal payment by 2019. The bonds won't be repaid until 2025.
Facing deficit, Binder Park golf hits 'critical point'
Binder Park has dealt with financial woes before. In 2003, the City Commission approved a state-mandated debt reduction plan for Binder Park's $125,000 operating deficit. It wasn't until 2011 that the golf course's fund balance got out of the red.
Nearly 600 acres of land was donated to the city in 1957 by Charles Binder, a Battle Creek businessman, under the requirement that it be used for community recreation. The city made additional land purchases in the 1990s that aren't covered under deed restrictions; that land will be sold.
Much of the land donated by Binder is now occupied by Binder Park Zoo after a lease agreement was made in 1985.
Battle Creek Parks and Recreation Director Jeff Hovarter told commissioners during a workshop earlier this month that the city will look to generate additional revenue by marketing the facility for non-golf programming. Binder Park could host wedding receptions, outdoor festivals and other sports in winter, he said.
"This has been a challenge for every golf course in the area," Behnke said Tuesday. "And I think we'll make it. It's going to be difficult. We need to pay off our debt, and that's our goal. I think we've got the best people in place to do it."
Contact Jennifer Bowman at 269-966-0589 or jbowman@battlecreekenquirer.com. Follow her on Twitter: @jenn_bowman
In other business
Also Tuesday, commissioners:
• Adopted an ordinance that would remove an expiration provision for downtown mobile vendors.
• Accepted a $62,621 bid from SC Environmental Services LLC and a $57,460 bid from Smalley Construction to demolish a total of seven commercial and residential properties.
• Accepted a $8,676,593 bid from Waste Management Inc. for a three-year contract beginning in April to handle residential and city parks and buildings waste. They also accepted a $1,974,620 bid from Republic Services of West Michigan for solids and residuals waste hauling. Five-year monthly rates were approved Tuesday, which would result in a 2.5 percent increase during the first two years, and a 3 percent increase afterwards.
• Authorized a management agreement with Chicago-based Fresh Coast Capital that would include the planting of hybrid poplar trees in the spring on a vacant Spring Street property adjacent to the former Wilson school.