From Deseret News archives:
Green space, black holes: Subsidized golf courses costing cities, taxpayers
"The course was already there. A private corporation was already doing it," says Joe Watts, president of the Utah Golf Association. "Why would the government bail them out? Why would they take $15 million of taxpayer money?"
In Cedar Hills, Zions Bank officials were also skeptical of the golf course proposal. If the tiny town really wanted to build a course in an already saturated market, it would have to put its public safety building up as collateral.
But Mayor Brad Sears a real estate developer and avid golfer saw the course as a potential cash cow. The city had virtually no business-tax base and badly needed the revenue a golf course would provide, he said.
In fact, a consulting firm told city officials they could expect to make $150,000 a year on the course in its first 10 years. After that, the city would see profits of $400,000 annually.
But who were the experts?
One was the city's financial adviser, Zion Bank. The bank would later lend the city the money to build the course. Another was the course designer.
But the city put the most stock in a study done by a Denver consulting firm called THK, which concluded that there was a "pent-up demand" in Utah County for more courses.
No one seemed to mind that THK was also working for the developer on the project.
"It may have appeared to be a conflict of interest," Sears says now. "But anyone I dealt with in the process dealt with the city earnestly. Mistakes were made, but they were honest mistakes."
The city also hired an independent appraiser, Sears says, who confirmed what THK had told them that the course would make money.
What Sears didn't say in his letter to residents is that the course would initially lose money. Others did, including Fotheringham and Cromar, but the measure passed anyway by a mere 47 votes.
That was May 2001. By August of the next year, property taxes had skyrocketed by 37 percent. Residents were outraged.
"Where are our priorities?" resident Brad Creer asked the City Council. "I love to golf, but I have six kids. My priority in life right now is not to golf."
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