Republic file photo The Otter Creek Golf Course clubhouse is shown.
City officials are clearing up some debt at Otter Creek Golf Course as negotiations continue over the course’s pending sale.
Columbus City Council voted Tuesday to approve an ordinance appropriating $200,000 from the city’s general fund reserves for this purpose, as well as to cover potential closing costs. While ordinances typically have to be voted on at two meetings for full approval, the council voted to suspend the rules and pass both readings on the same night.
The Otter Creek Management Corp. board recommended in early February that the city consider selling Otter Creek, given the financial requirements of maintaining the venue.
A request for proposals (RFP) was issued in April, and the city received a bid from Architerra LLC. Bob Haddad Jr., who is chief operating officer at Harrison Lake Country Club, and is listed as the company’s registered agent.
Mayor Jim Lienhoop said the city has been in negotiations with Haddad since then.
“We’ve met several times,” he said. “We’ve passed the documents back and forth, and I believe that we’re very close to an agreement, but we haven’t gotten there yet. So hopefully we can get there yet this month. And I’m not sure how soon we’ll be able to close, but we are hopeful of being able to announce something specific. But it’ll be later this month.”
He added that while they’ll work to close the transaction as soon as possible, it would be “premature” to estimate when Haddad’s company might take over the course’s operations.
City Director of Finance, Operations and Risk Jamie Brinegar told city council members that the $200,000 appropriation from the city’s general fund reserves will go toward the hopeful sale of the course.
After a difficult summer season in 2019 due to rain, Cummins and the Heritage Fund — the Community Foundation of Bartholomew County each loaned the course $250,000.
According to Brinegar, $175,000 from the appropriation is allocated to help retire the course’s debt to the Heritage Fund, and another $25,000 is being held in reserve for any closing costs that might arise. Funds that are not spent will revert to the city’s general fund reserves.
Brinegar requested that the council pass both readings of the appropriation on Tuesday night.
“That way we would be able to pay the debt off quicker to Heritage Fund and make the property that much more enticing for sale,” he said.
As council members discussed the matter, there was some discussion of the RFP’s list of commitments for potential buyers. These included investing a minimum of $5 million to address deferred capital and maintenance needs related to the clubhouse and golf course within five years of purchase, and maintaining the original 18 holes for at least 15 years “in a manner consistent with the original ‘Robert Trent Jones’ design.”
Lienhoop said at a previous city meeting that these items — while requested by the city — might be subject to change during negotiations.
City attorney Alan Whitted said that once a contract has been finalized, the matter will go to the Columbus Board of Works for approval.
