Licensing Deal Gives Lake Bluff Golf Course 5-Year Lease On Life

LAKE BLUFF, IL — The Lake Bluff Golf Club will remain open for at least five more years under an agreement approved Monday by the Lake Bluff Park District Board of Commissioners. The district said the deal will save taxpayers a projected $2.1 million by eliminating the golf course's annual operating losses from the budget.

The licensing agreement with GolfVisions Management means the district will be able to afford needed repairs and improvements throughout the village, according to the park district. The Mundelein-based company currently operates 19 golf facilities, mostly in the greater Chicagoland area.

Park Board President Rob Douglass thanked the community for its help finding a way to keep the 50-year-old course operational.

"This plan keeps an amenity the community has stated is important to them," Douglass said. He said the agreement was a result of months of input from the community, a commitment to financial responsibility by the district and efforts from residents and Lake Bluff Golf Association, which raised more than $118,000 to offset the cost of capital improvements.

"The park district spent months evaluating whether it was financially feasible for the Lake Bluff Golf Club to remain open," Douglass said prior to the unanimous 8-0 vote at the board's Oct. 15 meeting. "We met with companies that said they were interested in our request for proposals sent out last year. We explored different types of partnerships before finding the right agreement that benefits our entire community."

Under the terms of the agreement, GolfVisions will cover all operating expenses and maintenance under $10,000 and receive all revenues from the course and assume all financial risk. If the company makes more than $800,000, the park district will receive 10 percent.

The park district's contract with its previous operations and management company, Billy Casper Golf, expires on Jan. 31, 2019. Under that contract, the district covered the cost of maintenance and paid a monthly fee but received all the revenue from the course.

Commissioner Chris Mosbarger said the agreement could be be renewed after five years if both parties agree. The district would only have to pick up major capital expenses, such as if a $40,000 piece of equipment broke down.

"The risk of the operations falls on their plate," Mosbarger said. "Losses related to weather, losses related to poor performance of the course, that is GolfVision's risk, not the park district's risk anymore."

The golf club had a loss of over $324,000 in 2017 and more than $3 million since 2006, according to the district. Over the next 12 years, the district projected $2.7 million in operating losses and $2.7 million in needed capital spending.

Park Board Treasurer France Pitera said commissioners were impressed with the experience of negotiating with GolfVisions. She said the board had initially hoped for a 10-year agreement.

"We looked at lots of options, this is a really good one. I think we feel comfortable financially," Pitera said. "Right now, we're looking at the next five years and we feel good that our estimates are in line and we can afford to continue to operate without having to ask for extra taxpayer dollars at this time."

Attendees at a 50th anniversary Lake Bluff Community Golf Association fundraiser held in August at the golf club said the village-owned course was originally created to prevent the land being turned into a subdivision, Pioneer Press reported. The board had previously set an Oct. 31 deadline for supporters of the course to raise $132,500 in cash and another $132,500 by January or it risked shutting down next year.

"This has been quite a journey. I think we can all agree to that. There was a lot of ups and downs through the last couple months here, but we are truly a community here and I believe we really all worked hard – in all different ways – but we found a way to make this work, and that's what I'm very proud of here," Douglass said.

"I feel very confident in being able to balance this ship again when it comes to the park district," he said.

The district announced plans to discuss the next steps for the course, including repairs to the clubhouse and how to use the money raised by the Lake Bluff Golf Association, within the next month. It said input from residents would be an important consideration toward as it decides which repairs or improvements to pursue.

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