To: American Fork
From: Pleasant GroveRE: Golf course offer
Message: Get serious.
That's the reaction of the Pleasant Grove City Council to American Fork's offer to buy its share of the Tri City Golf Course.
In a letter dated April 10, American Fork Mayor B. Kay Hutchings offered Pleasant Grove $226,863 for its share, plus 31.77 percent of accumulated revenue surplus at the end of fiscal year 1991. American Fork gave Pleasant Grove 14 days to respond to the offer.
The Pleasant Grove City Council flatly rejected the offer last week, and it isn't interested in making a counter-offer at this point.
"If we were to make a sale, another price would have to be considered," Councilman Lloyd Ash said. "If American Fork is really serious about it, we could sit right down and establish a value. I don't think the figure they came up with represents the value."
Pleasant Grove Mayor David Holdaway will send a letter to Hutchings declining the offer.
American Fork also sent an offer to Lehi, the third partner in the golf course. The Lehi City Council will discuss the offer Tuesday during a council meeting, Mayor Guy Cash said.
Pleasant Grove invested about $280,000 in the course since it opened in 1973. But fair market value for the city's share of the course also would have to include consideration of a $750,000 federal grant used to construct the course as well as non-monetary contributions of equipment and manpower.
And before a sale is negotiated, Pleasant Grove residents also would have to be assured continued benefit of the course, Ash said.
Holdaway intimated to Hutchings about a month ago his city might be willing to sell its interest in the golf course for the right price. Proceeds of the sale would create an endowment to fund parks and recreation programs in Pleasant Grove, Holdaway said.
"We're always happy to consider anything with American Fork," Ash said. "At this point we're happy with the golf course, with the way it's being run and growing."
After years of being subsidized, the golf course began making a profit of about $100,000 per year several years ago. American Fork has put more money into the course than Pleasant Grove or Lehi over the years.