Stowsentry.com - Should Stow sell Fox Den to balance city's budget?

by Mike Lesko

Associate Editor

Stow -- With Stow officials conflicted about the best ways to balance the city's budget by the end of March, Councilman Mike Rasor believes one solution would be to sell Fox Den Golf Course.

Rasor said there would be a stipulation -- that it remain a golf course.

The city purchased the golf course four years ago for $5.5 million and pays about $400,000 a year on the debt from private shareholders. The money comes out of the city's capital improvements fund, according to Finance Director John Baranek.

Baranek said the golf course debt payment for 2010 will be nearly $372,000.

"This amount does vary slightly year to year," Baranek said, adding that the city has 22 years remaining on the debt service.

Revenue generated by the golf course in 2009 was $1,018,284, and course operations cost $1,009,976, said Baranek.

By comparison, the golf course made $1,065,876 in 2008, and expenses were $1,083,499, which included $52,593 in capital improvements.

In both 2008 and 2009, there were five full-time employees at Fox Den and 45 part-time employees.

In 2009, the full-time employees earned a total of $245,577, up from $238,419 in 2008, while part-time employees earned $155,275 in 2009, up from $136,673 in 2008.

Councilman Joe Hicken agreed with Rasor, saying, "If we can't cover the expenses of the golf course, we should consider selling it."

Rasor said if the city can erase the Fox Den debt while maintaining it as a golf course or at least greenspace, then everybody wins.

"Does the average Stow resident want to subsidize a business to the tune of almost $400,000 per year -- when roads aren't paved and we can barely get the snow off the streets?" Rasor said. "I don't think so.

"Taxpayers are paying for a business to lose money," Rasor said. "The city can't pay for its mortgage. The taxpayers are subsidizing these costs of what should be a private business, and they're subsidizing the golf course with money that should be used for fixing up roads and buying snow plows."

Rasor said if the city can sell the golf course, "the nearby homeowners can be assured that there won't be another big development popping up in their backyards."

Councilman Jim Costello, chairman of Council's Finance Committee, does not believe selling the golf course is a good idea.

"If you have a buyer who is willing to pay the fair market value to what we paid for the golf course, bring him on," Costello said.

"You've got to be realistic," Costello said. "I don't look at that as a method to reduce the budget."

Councilwoman Sara Drew agreed, saying, "Selling property in a depressed real estate market, when the sales prices of properties are low, is a mistake.

"Selling assets yields one-time money," Drew said. "What is to stop the sale of other city assets in the future if we have a gap in the budget? I don't believe that is the precedent this Council or this administration should set."

Rasor said since his Feb. 25 proposal to Council, a businessman approached him to say he thinks he could gather some friends to put together a competitive bid.

"The market is out there," Rasor said. "The profit incentive is a powerful thing. A private owner can turn the course around. Not to explore our options is foolish."

"The question is, can we find a buyer at a fair price?" Rasor said. "My proposal is only to seek bids -- not to sell it to anyone who comes before Council.

"This city is in dire financial turmoil," Rasor said. "If we can find someone to take the Fox Den burden away, it would be a good first step toward recovering from some of these bad decisions."

Drew said she believes it is unlikely that a developer would be willing to tie his or her hands for future potential sales in the form of an agreement to maintain Fox Den as a golf course.

"If we sell Fox Den, the city loses the right to have a say in the future of that property," Drew said. "I think it is irresponsible to turn our backs on the long-range plans to maintain open, green space within the city.

"Selling Fox Den ignores the long-range needs of our community," Drew said. "It neglects the essential fact that the consequences of its sale will be felt for generations in this community, while the one-time money we would receive will be enjoyed only in the present."

In addition, Drew said talk about the sale of Fox Den to balance the 2010 budget is "a red herring."

"Since the budget has to be passed by March 31," Drew said, "it would appear unlikely that a sale could be completed by that time, even if the city were to wish it so."

E-mail: mlesko@recordpub.com

Phone: 330-686-3917