Reid Park Limited, a local private operator run by Alan Collins and Jim Kincaid, will take over Jan. 15.
RELATED: Springfield wants out of golf business after $1.1M in recent subsidies
City commissioners decided earlier this year they can no longer pay for golf due after spending more than $1.1 million subsidizing its courses between 2012 and 2015. Last year commissioners gave National Trail $150,000 in extra money to cover losses, primarily for golf.
The parks district ended its golf operations at Reid at the end of November, which included two job cuts.
Collins — the son of former Reid golf pro El Collins — is a Springfield attorney and former golf professional while Kincaid is a former National Trail board member and PGA golf professional.
“We really worked out a nice deal,” Collins said. “We take on a lot of potential liability, but we knew that from the very beginning.”
Kincaid will serve as the primary golf professional, running the day-to-day operation with a total of four full-time employees, Collins said. The fee and pass structure won’t change for next season, he said, but adjustments could be made in the future.
MORE: Proposals would keep Springfield golf course open
Springfield City Commissioner Kevin O’Neill said he appreciated Collins and Kincaid stepping up to the plate.
“Golf was going to be gone this year,” he said. “It was going to be over. That wouldn’t have meant anything to some people, but it would’ve meant quite a bit to a lot of people.”
O’Neill isn’t trying to save golf, he said, but create a new beginning for it.
“We’ve always had golf in the city of Springfield,” he said. “It’s an amenity.”
The two-year deal calls for the operator to cover the cost of any losses and pay the city $200 per month in rent, including $100 per month for golf equipment rental.
The managers won’t have to pay water and sewer bills because it remains city property, Bodenmiller said. Currently the property is tax exempt but that could change with a private operator. If it does, the city has agreed to pay up to $50,000 of the property taxes annually for the first two years of the deal and $25,000 each year for the third and fourth years.
The operators will also make a security deposit of $50,000 to lease equipment, Bodenmiller said.
NTPRD board member Shawn Jackson understands the situation with the city’s finances as it looks to cut at least $800,000 next year after an income tax increase failed in November. But he believes the city is subsidizing a private corporation with the $200 per month lease deal, rather than a government entity.
“From what I’ve seen and heard, it looks to me to be a sweetheart of a lease deal,” Jackson said.
National Trail provided a quality golf experience for the community, he said. While other services with budgets don’t break even, the park district was held to a different standard because its golf operation couldn’t break even, Jackson said.
A quality parks amenity can bring people and businesses to invest in the community, he said.
“That was never the intent of a public parks system, to make a profit,” Jackson said. “I understand that we have budgetary issues and we try to do the best we can, but you can’t always make a profit for the services you provide. You have to understand that taxpayers pay tax money and they expect services for those taxes that they pay.”
The top priority for Collins was keeping the course from closing, he said, and he believes the city commission agreed. The new management group won’t have to pay certain fixed costs, such as retirement benefits, Collins said.
The six-year deal isn’t forever, he said.
“They had to give somebody a chance to get going and stabilize it,” Collins said.
The lease puts the management company on the hook for maintaining facilities and equipment, he said.
“If the furnace goes bad, we pay for it,” Collins said. “We’re accepting a great deal of liability and taking it away from the city.”
The deal limits the city’s financial exposure to the golf business, which wasn’t true in the past, Springfield Mayor Warren Copeland said.
“This is also good for our budget,” he said.
Reid opened in 1967. The park district closed Snyder Park Golf Course in January 2014 after years of financial struggles there.
The Reid Park property is valued at about $2.2 million, according to an appraisal completed earlier this year. It includes two, 18-hole courses, service and maintenance facilities and a recreation park with shelter houses, restrooms and woods.
The rounds of golf played on city-owned courses has plummeted — a 65 percent drop in the past 17 years. About 32,000 rounds were played at Reid Park this year, down about 3,500 rounds last year.
City Manager Jim Bodenmiller praised NTPRD for the way it maintained the golf course over the last few years.
“I’ve had so many people who have played the last two years and commented about the condition of the course, the conditions of the greens,” he said. “They’re some of the best greens in the area. There was a time that wasn’t always there and you brought it back.”
The deal is key for keeping golf affordable in the city, City Commissioner Joyce Chilton said.
“Not everybody can belong to a country club,” she said.
National Trail Director Leann Castillo wrote in an e-mail on Dec. 9 that the parks district had planned to keep a number of pieces of maintenance equipment that were leased to the new management company. The value of the equipment is about $260,000, according to the e-mail.
“As it becomes necessary to replace the parks equipment, we would greatly appreciate your consideration in providing funding support for these needs,” Castillo wrote.
Castillo is happy the golf course is staying, but board members were also concerned about turning over some of the equipment it could have used for parks maintenance, such as ball diamonds and manicured areas.
“We think the deal is a positive thing for the golf course,” Castillo said. “It would’ve been nice to have those moving forward.”
In-depth coverage
The Springfield News-Sun provides complete coverage of government spending, including extensive coverage of the city of Springfield’s general fund budget and $800,000 in budget cuts.
By the numbers
$2.2 million: Estimated value of Reid Park Golf Course, according to a real estate appraisal.
$1.1 million: Springfield golf subsidies between 2012 and 2015.
36: Holes at the golf course.
380: Acres at the golf course.
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