Deal expected to clear path for Henderson golf course

Dan Kulin

Monday, Nov. 1, 2004 | 11:10 a.m.

Tee times are filling up in anticipation of Henderson opening its first city-owned golf course on Wednesday.

But there's still one hurdle to clear: Final City Council approval of the land plus cash trade and land zoning changes, which are expected to come during a council meeting Tuesday.

Under the proposed transaction, the city will trade roughly 126 acres of vacant land to Wildhorse Enterprises for the 137.8-acre Wildhorse Golf Course plus $5.8 million. Also, the city would change to residential the zoning designations on the city-owned land included in the deal.

Wildhorse Enterprises is a partnership of The Walters Group, headed by Las Vegas golf course owner Billy Walters, and American Nevada Co., which is owned by the Greenspun family, who are also publishers of the Las Vegas Sun.

The deal appears to be backed by at least a majority of the council members, and Councilwoman Amanda Cyphers said Sunday that she thinks the council is "leaning toward approval" of the transaction.

One factor, she said, is that residents have overwhelmingly supported the deal. One petition with about 350 signatures, plus another with about 100, and dozens of e-mails sent to the council members were all in support of the deal. She was aware of only one resident who contacted the council opposing to the trade, she said.

Also, a month ago the council approved a management contract for the private firm hired to run the course and established a special golf budget fund with enough money to cover the expected losses for the first year and to give the course a financial cushion.

The mayor and other council members have also said that the deal will help the neighborhood around Wildhorse, primarily because it won't have a vacant business in the middle of it. The neighborhoods around the city land involved in the deal will also benefit, they said, because detached single-family homes will be built there and not the apartment buildings or condominiums, plans for which have at times worried neighbors in other areas.

Preliminary development plans for the city-owned land show that 272 homes would be built on 60.1 acres in the Whitney Mesa neighborhood near Sunset Road and Arroyo Grande Boulevard. Another 313 homes would be built on 66.1 acres along Horizon Ridge Parkway east of Gibson Road.

The city land was appraised at $40.2 million.

The firm PricewaterhouseCoopers appraised the Wildhorse Golf Course at $34.4 million. Wildhorse Enterprises purchased the golf course at 2100 W. Warm Springs Road in January for $9.35 million, according to Clark County Assessor's Office records.

The wide gap between the January purchase price and appraised value of the golf course prompted Councilman Andy Hafen to ask that PricewaterhouseCoopers representatives attend the Tuesday council meeting to explain their appraisal.

But Mayor Jim Gibson and Councilmen Steven Kirk and Jack Clark have said the land swap will be good for the city, and any profit the private group will make is thanks to their good timing and willingness to take a risk and buy Wildhorse.

Wildhorse Enterprises representatives have also said they spent millions improving the course -- though they have refused to say exactly how much they invested -- and that the purchase price did not include the cost of equipment, such as golf carts.

Clark pointed out that the city's land has dramatically increased in value over the years.

In 1999 the city paid roughly $90,000 an acre for a large parcel that included the 60 acres off Sunset and Arroyo Grande. The city purchased the other parcel from the federal government in 1969 for about $30,000.

The management contract with Henderson-based Wright Golf Management pays the firm $100,000 a year, plus, if the golf course meets 95 percent of its projected revenue, the firm will receive 25 percent of that money.

Firm owner Andy Wright said the golf course is expected to lose about $176,000 on operations through June 30, then turn a profit of $215,000 during the following 12 months. The city's contract with Wright is for three years, with an option for another three years.

Wright was general manager at the Desert Pines Club from July 1998 until he took over at the Stallion Mountain Country Club in January 2003, where he was for a year. Both golf clubs are operated by the Walters Group.

The Wild Horse course has been closed since February, and with the expected opening on Wednesday, Wright said they already have some tee times reserved.

The golf course, if it is approved Tuesday, will provide Henderson residents with a less expensive option for golf.

The top rate for Henderson residents will be $40, which will be charged during weekends in peak season. Clark County residents will be charged no more than $45 a round.