The Ottumwa Courier

Southeast Iowa

June 5, 2014

Bos Landen to open soon

(Continued)

Pella —

One-time Grounds Maintenance Improvements: The City of Pella will be responsible for the following one-time capital improvements to the irrigation system:

  1. Replacement of the central computer system and associated satellite controls.
  2. Replacement of the pumps for the irrigation system.
  3. Replacement of ninety sprinkler heads.

The estimated cost for this improvement is between $300,000 to $350,000 and the City will make its best efforts to complete these improvements before the 2015 golf season.

Transition Subsidy: To help offset the lost revenue associated with the closure of the Bos Landen Golf Course, the ground lease obligates the City of Pella to continue to employ the golf course superintendent through December 31, 2014. In addition, the City of Pella would be obligated to a one-time operational subsidy of $90,000 for calendar year 2015. The estimated cost of these items is $130,000.

Grounds Maintenance Reimbursement: The proposed ground lease provides a reimbursement of the actual cost of chemicals, fertilizers, seed, and bunker sand to Warrior Golf. The maximum reimbursement is up to $95,000 annually for calendar years 2014 thru 2028. It should be noted, the reimbursements are subject to annual Council approval. In addition, this reimbursement is similar to the current ground lease which provided the Lessee potential reimbursements of $90,000 annually through the year 2029.

Default Cure Period: Under the terms of the ground lease, the period of time to cure a default is thirty days. In comparison the current ground lease provides ninety days to cure a default.

Resident Discount: Pella citizens shall be entitled to a twenty-five percent discount off Warrior Golf's published rate for play at the Bos Landen Golf Course

Financing of the Bos Landen Golf Course

The City's financial contributions to the Bos Landen Golf are proposed to be funded from the City's General Fund.

Other Factors to Consider

Warrior Golf is a national firm that has extensive experience in the golf industry. Warrior Golf owns 16 other golf courses spread across the nation and has experience with similar courses such as Bos Landen. Pella City Staff believes Warrior Golf's professional management team and experience would lend itself well to the Bos Landen Golf Course.

There is a significant amount of taxable valuations associated with the Bos Landen development, as it includes approximately 185 housing units and a hotel. If the Bos Landen Golf Course was not operational, Pella City Staff believes there would be some impact to the property values in the Bos Landen Development. Likewise, the Bos Landen Golf Course serves as a tourism draw for the community, and its closure would have an impact in this sector of the local economy. In addition, there also appears to be support from the community's major employers for continuation of the Bos Landen Golf Course.

Pella City Staff does not believe City employees could operate the Bos Landen Golf Course for less funding than the proposed agreement with Warrior Golf. 

According to the City of Pella the course is believed to be open for play some time in mid-June.

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