Cedar Hills mulls future of golf course

CEDAR HILLS — Cedar Hills city officials are working to determine the long-term future of the city's $8 million golf course, which lost more than $200,000 last year.

The City Council will debate the issue at tonight's meeting, which is sure to draw the attention of residents, who have taken a vocal role in determining the course's future.

"It's a little divisive, basically because it's not paying its own way," said Cedar Hills Mayor Mike McGee. "And anything that doesn't pay its own way won't be popular in government."

After the course lost $223,000 in the past fiscal year, and a larger loss was projected for this year, McGee proposed a monthly fee of $11 on every home in Cedar Hills to make up the difference.

The result? If not paying its own way has made the course unpopular in government, asking for help from residents has made it public enemy No. 1.

But city chiefs don't know how else to recover the lost money, which for a city this small is a huge hit.

"We have no business to speak of, and we collected $364,000 in property taxes last year," said City Councilman Jim Perry. "Losing $200,000 is a big deal."

However, a number of options are being considered to avoid future losses.

A bond issuance would significantly lower the city's interest rate and payments — if approved during a June 28 bond election.

Voters will be asked if the city can issue general-obligations bonds up to $7 million to refinance the cost of the golf course.

This year, Cedar Hills owes $570,000 in interest payments alone. And those payments will only grow, until the $6 million final payment comes due in 2007.

Perry said he supports the proposed bond issuance because he believes the city will be forced to default on the loan under the current payment schedule.

"(The bond) refinances a debt we have under much more favorable terms," he said. "It increases our options."

One option supported by some was to default on the loan and allow Zions Bank to take control of the golf course. That suggestion has lost support in recent weeks.

"A lot of these people, after getting more information, came to realize that defaulting is not good for the city," Perry said.

And while Perry supports the bond proposal, he cautions that it is only a short-term solution. For the long term, Perry and others recommend selling the course.