Amid financial crisis, North Las Vegas takes on golf course

By Aida Ahmed

Friday, Nov. 4, 2011 | 11:42 a.m.

Amid dire financial struggles — now so severe a state takeover of the city’s finances is a possibility — North Las Vegas in 2009 took over a failed golf course.

The reasoning: The city could ill afford to watch property values of 2,000 homes along Aliante Golf Club — and the tax base tied to them — wither as the greens went to seed. Not to mention the city had signed an agreement with the original developer that it would assume responsibility for the course if the project failed.

The cost: Excluding any rescued taxes, the city anticipates it will pay some $400,000 a year out of pocket to keep the course open.

City spokeswoman Juliet Casey said the city has budgeted the club’s expenses at about $2.2 million annually, including $700,000 to water the course. Revenue from greens fees, player cards, merchandise, food and beverages is only expected to be about $1.8 million.

The losses come as the city faces a series of financial difficulties, including a $30.3 million budget deficit at the start of the fiscal year that forced concessions from the police and fire unions. Elected officials have been under fire over the construction of a $127 million new city hall set to open this month. The state’s taxation department is also monitoring the city, which could still be taken over by the state if its financial outlook does not improve.

Acting Finance Director Al Noyola said the city will face a budget shortfall in the coming fiscal year.

City Purchasing Manager Ron Corbett said the golf course deal — the city is committed to tending to it for 50 years — is not an optimal business venture. But, he said, “It’s in our best interest to keep the property values up.”

Corbett said the city is working on a request for proposals, to find a golf course management companies to develop a plan to make the club profitable. Requests will go out in late this month or early in December. Companies will have about a month to send in bids to manage the course.

When the developer who built the course went belly up, it started to become an eyesore.

The city’s parks department took control of the 102-acre club in February 2009, setting aside a portion of the parks budget to create a separate budget for the club.

But when the city began laying off employees, keeping up the golf club was put on the back burner.

“Nobody was taking care of it. A lot of the course was in pretty bad shape,” Corbett said. “With the layoffs, we couldn’t maintain it ourselves. Homeowners were concerned. Players weren’t happy.”

So the city signed an amended contract July 1 with O.B. Sports, a national golf course management company, to manage the restaurant and golf pro shop, and the city put a new focus on maintaining the course.

“Just this past few weeks, we’ve played here a couple times and it’s a huge improvement,” said Larry Sheldon, a Sun City Aliante resident. “The course conditions right now are just night-and-day from what they used to be.”

Sheldon and his wife, Anita, were among dozens of visitors to the golf club’s open house Oct. 20. Among the renovations is a club restaurant and bar, now at a Southern Nevada Health District grade A status. The club’s golf pro shop is fully stocked and the PGA-certified course now boasts green grass.

Jerry Brown, who has played on the course on and off for five years said the fresh grass has made a difference.

“The balls (didn’t) bounce nearly as far because it was dry, but now that they put more water on it, it should be a better golf experience,” he said.