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Voters asked to OK new golf-course lease

by NANCY KIMBALL
| October 13, 2009 2:00 AM

Kalispell voters in the Nov. 3 election will decide whether to approve a new 20-year lease for Buffalo Hill Golf Course.

Early voting begins Wednesday for the municipal election.

Eight years remain on the current lease between Kalispell Golf Association and the city of Kalispell, but plans for $1.5 million to $2 million in deferred maintenance and capital improvement projects prompted the golf association to ask for the lease extension in August.

If approved, the new lease would provide the security that lenders request before agreeing to finance improvement projects.

The association is seeking public approval for the golf course to continue operating on 240 acres of city land between U.S. 93 North and Whitefish Stage Road.

Only minor language changes were made in the current lease agreement, mostly to be sure the city's asset at the golf course is preserved - but also to update lease fees.

Kalispell Golf Association will pay the city a minimum $13,000 annual fee or more based on a sliding scale indexed to profits from the golf course operation.

If the rolling average of gross receipts - the average of money collected over the previous three years - exceeds $750,000, the lease payment will be 2 percent of the gross receipts. If it exceeds $850,000, the lease payment will be 2.5 percent.

Since 1992 the golf association has contributed $3.5 million to the city through lease and other payments, according to Steve Dunfee, the association's executive director and the golf course general manager.

Technically a public vote is not required because the golf course is not an official public trust. However, the land was donated to the city specifically to be used as a golf course and generally is perceived as land held in trust for the public benefit.

To clear away any question, the council decided to put the lease issue on the ballot this year.

The last time it went up for a vote was in 1987. That request for a lease extension passed with 80 percent public approval.

Projects on the golf-course list include:

-- Asphalt, about $250,000: overlaying the main parking lot and rebuild cart storage sheds and cart paths.

-- Driving range, upwards of $1 million: replacing poles, netting, turf, tees and targets.

-- Irrigation, $200,000 over five years to replace remaining sprinkler heads and gear drives for a new electronically controlled irrigation system.

-- Equipment, $80,000 a year for new mowers and other capital equipment.

-- Erosion control. The Stillwater River runs through the championship 18 and poses flooding threats. The city of Kalispell requires a river management plan by Dec. 31.

-- Cart storage sheds. About half the 1960s-vintage sheds need replacement. A bank of 10 runs about $30,000.

-- Cart fleet. Last year's cost to replace all 70 carts was $275,000. Regular replacement is a goal.

-- Bunker sand. This season, $20,000 worth of sand barely topped off the bunkers.

-- Tree maintenance. To replace dead and diseased trees could run $50,000 a year. Selective management last year cost $25,000.

-- Clubhouse, $15,000 to $20,000. The kitchen needs commercial-grade equipment and code-compliant flooring.

-- Miscellaneous course equipment such as sand-raking machines, grinders, a ball dispenser for the driving range, and aeration and top-dressing equipment are not funded for replacement now.

Reporter Nancy Kimball can be reached at 758-4483 or by e-mail at nkimball@dailyinterlake.com