Hurley seeks overdue golf course payment

By TOM LAVENTURE

tlaventure@yourdailyglobe.com

Hurley — Eagle Bluff Golf Club was placed on the Hurley City Council agenda on Monday to discuss the lack of response regarding its overdue annual lease payment, according to Mayor Jay Aijala at the meeting.

Aijala said the club was late with the $10,000 payment for 2020 for use of the city-owned golf course, and there had been no communication from the nonprofit Eagle Bluff board of directors. The council has worked with the golf club on lease issues in past years that have been financially challenging but the said lack of response this year is a concern.

Jim Sain, Eagle Bluff general manager, said he attended Monday’s meeting to answer questions of the council and noted there were no golf club board members present. Sain said that he is not authorized to write checks of that amount without board approval.

“As general manager, I work well with the chamber (Hurley Area Chamber of Commerce) and I want to work well with the city,” Sain said.

The golf course board presents many questions upon review of the annual lease, he said. One in particular is if there is a lease with the city, he said.

“One question every year is if there’s a lease in writing? We don’t have a copy,” Sain said.

Aijala said that the city council approved a renewed lease agreement on March 14, 2017, and is due to expire in 2022. He asked that the city administrative staff make a copy of the lease for Sain, who said he would pick it up when he pays his water bill.

The operating expenses of a municipal golf course are considerable, to include 12 employees, ongoing maintenance and replacement of equipment, and unexpected repairs, Sain said. At the same time, the golf course greens fees are much lower than the industry standard and there has been a loss of tournament revenue during the pandemic in addition to challenges with recruiting membership.

Sain asked that the city council consider the benefit the golf course provides the city. He said the lease could be renegotiated.

“A $10,000 lease is very reasonable,” said Robert Lanctoe, city alderman.

The purpose of the lease was also in part to clarify ownership of property, he said. The golf club board runs the golf course, and the city owns the land, along with the clubhouse and other structures. 

Aijala said the city wants Eagle Bluff to remain operating as it is and that he does not want to be the mayor who would change that status. The concern is purely about the lack of response concerning the lease, he said.

“We just wanted somebody to come here and ask if they need help and not to ignore us,” Aijala said.

The council unanimously approved a Police, Fire and License Committee recommendation to elevate a part-time police officer to a full-time position that is being vacated by a departing officer. The action also approved the city to start advertising for a part-time police officer.

In the finance committee report from a March 8 meeting, Joanne Bruneau said the city’s Public Works Department acquired a previously owned 2013 dump truck for $88,000, that together with a backhoe totaled $169,500. The two vehicles were purchased under the $200,000 budget.

The council approved an offer from AMKO Advisors, a Fargo, North Dakota-based registered municipal advisor with the Municipal Securities Rule Board and the U.S. Securities and Exchange Commission, to provide refinancing scenarios for the council to consider at its April meeting. Harold Lance, an AMKO account executive with the Minneapolis office, presented on the potential for the city to save approximately $2 million on the water and sewer project bonds that were financed when interest rates were at 4.25% in 2008 and 2009.

The city could refinance at current rates as low as 1.75% to 2.25% and still pay off the loans with the same or lower monthly payments, Lance said. However, he noted that interest rates fluctuate a great deal, but costs as presented, including closing and issuing costs, would be net costs to the city.

Ray O’Dea, city attorney, asked that one scenario provide the same terms with reduced payments through the original 2049 payoff term.

Aijala announced to the board that Daniel Soine, the city’s building inspector and assessor, is retiring at the end of 2021. The board discussed setting a succession timeline to include asking Soine to recommend potential qualified candidates to replace him and to consider his offer to remain as the zoning and building inspector, if needed.

The city council convened a closed session regarding pending litigation with Elan credit. There was no action taken upon return to open session, according to Stacey Wiercinski, clerk and treasurer on Monday.