"Continue to own and operate the course and refinance the $6.06 million payment over an extended period of time, sell the golf course at a loss and refinance the remaining part of the loan or default on the loan altogether. Financing the $6.06 million over 20 years at 6 percent interest would require an annual payment of $528,000, more than 100 percent of the city's current property tax revenues," he wrote.

Paul Hammer, a former councilman and currently an alternate for the city planning commission, said, "At this point in time, I'm opposed to defaulting on the loan and would urge the city to expend the necessary resources to live up to the ethical and moral commitments the city made when entering the agreement, similar to the same commitments many on the council made when running for office."

Resident Steve Hansen has set up an Internet blog (greensfees.blogspot.com/) to discuss the situation. Hansen explains that defaulting would blacken the city's name, destroy its credit and make it more costly to do business in the future.

He also said defaulting could send the city into Chapter 9 municipal bankruptcy.

McGee, however, said bankruptcy and default are two entirely separate issues and one is not the natural consequence of the other.

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E-mail: haddoc@desnews.com