Council looks at golf course options

Yorkton Council was provided a report into options regarding operations of Deer Park Golf Course, but unanimously chose to retain the status quo.

"This report is not intended to discuss the issues of public versus private ownership however the operating models discussed have issues," said Darcy McLeod, Director of Community Development, Parks and Recreation, adding the question of ownership is not the question rather the operating model is the purpose of this report.

"Issues related to public versus private ownership of golf courses are usually linked to taxation. When a private golf course is located within a municipality they have to pay taxes on the land whereas municipally owned courses may not. Some see this as unfair however, when a private golf course is not present within a municipality, the issue of unfair taxation is removed and replaced with one of whether the municipality should be in the golf business."

The City recognizes that it is in the golf course business and therefore the purpose of this report is to recommend "an operating structure that best fits the community of Yorkton," said McLeod.

McLeod said Council had directed Administration to conduct a review of the various golf course operating structures throughout the province.

"This review included municipally operated golf courses, privately operated golf courses, golf courses operated by non-profits and those operated using a combination of methods."

McLeod said the operating models range from municipally operated ones such as Deer Park, to courses leased to non-profit operators, through to those operated by a management board similar to that operating the Gallagher Centre. There are also privately operated courses.

Whichever option is utilized, courses are facing pressure, said McLeod.

"The number of rounds played at Saskatchewan courses has seen a decline of 10 - 15 per cent over the last 10 years," he said.

"It appears that the stress on the economy has had an impact on golf course operation, not only in Saskatchewan but across the country as well. This combined with the wet spring experienced in 2011 across the province has further reduced rounds played and created financial issues for a number of courses."

Ultimately, McLeod said "to determine the appropriate operating model for the golf course, one needs to understand why the City of Yorkton is in the golf course business."

Operation of the Deer Park Golf Course is connected to the City of Yorkton Strategic Plan which is to promote and build a healthy community encouraging healthy lifestyles, personal wellness and quality health care, and to develop and maintain facilities that offer a diverse range of sports and recreational opportunities for youth to seniors, offered McLeod.

McLeod said as a municipal facility Deer Park is supposed to meet certain expectations.

"A municipal golf course is generally viewed as a community facility provided by the municipality with the pro/contractor/operator providing additional services to enhance the public's golf experience," he said.

"Golf can be considered similar to other cultural and recreational facilities provided by a municipality like ice arenas, swimming pools, libraries and art galleries; and therefore it could be argued that the municipality should provide similar investment to ensure golf remains a publicly available recreation activity.

"Municipal courses don't want to lose money on their operation however, generating a profit is not typically the primary purpose of a municipally owned golf course. It is essentially owned by the residents and taxpayers of the municipality with the primary purpose to:

*Provide recreational opportunities to improve the quality of life for people in the community.

*Provide opportunities for tourism.

*Attract industry and business to locate in a community.

"Administration has found that it is common to find municipalities in the golf course business to ensure that golf is publicly available. A golf course can be considered good use of public lands to ensure public green space remains accessible by the public since municipalities are considered stewards of public lands on behalf of the owners (taxpayers and residents). Since municipally owned golf courses are public lands, it is the responsibility of the municipality to ensure:

*That the ownership group's (taxpayers and residents) investment in the land and buildings is maintained.

*That the best interest of the ownership group is maintained (the primary purposes previously stated)

*That the public lands remain public lands and are available for use by the ownership group."

McLeod said in terms of operating options each has its pros and cons.

"There are pros and cons to each of the options presented for managing and operating the Deer Park Golf Course. Council will want the golf course to operate with integrity and be committed to service excellence in a transparent and accountable manner to make certain that the best interest of the ownership group is maintained," he said.

The recommendation unanimously passed Monday stated, "that the City of Yorkton maintain operation and management of the Deer Park Golf Course through the Community Development, Parks and Recreation Department in an effort to maintain control over the quality of the golf experience leading to enhances player loyalty, repeat visitations and increased spending per round so that the course can be financially self-supported and further direct Administration to provide options and a recommendation to Council on course operations that will see cart revenue directed to the City and a review of other revenue streams to determine whether they remain contracted services or are brought in-house."