At their work session on March 17, the City Council will consider options on renewing the Ballinger Lake Golf Course Lease Agreement with Hardy Golf for 2011 to 2015. Hardy Golf exercised their five (5) year lease option to continue operating the golf course in July 2009.
In 2006, the city signed a five-year lease with Hardy Golf to operate the Ballinger Lake Golf Course. Between 2006 and 2007, revenues increased by over $45,000. Since 2008, rounds of golf and revenues have declined due primarily to the economic recession and wet weather conditions. In 2008 and 2009, the City Council approved amendments at the request of Hardy Golf that kept the lease payments at 2007 levels.
Currently, golf rounds played continue to decline resulting in operational costs at the golf course outpacing revenues. An audit of Hardy Golf’s revenues and expenses from 2006 through 2010 found the financial records in order.
The City Council will be reviewing its options including modifying the lease agreement by adjusting the annual lease payment and timing, and providing an incentive for increased rounds over 20,000 yearly.