Council to administration: Pursue one-year golf course contract

Like a wayward tee shot, the Rhinelander Common Council’s Nov. 11 discussion regarding the future of the city-owned Northwood Golf Club moved in a number of different directions before the alderpersons landed on a motion directing city administration to pursue a one-year contract with Oliphant Golf Management.

With the parties’ current contract due to expire on Dec. 31, the firm previously proposed a new three-year deal. However, city administrator Patrick Reagan told the council there is a possibility that the firm and the city could come to terms on a one-year agreement.

“I'll just tell you the conversation I had with Justin (Fox, Oliphant regional manager) was basically there’s three options here. You can continue to have Oliphant run (the course). You can bring it back in-house. You can sell it. Those are the three options as far as I see doing it,” Reagan said. “Now, one thing that Justin did tell us was this is a three-year agreement, but he can also do a one-year agreement too. So if you want to, if you’re looking to sell it or bring it back in-house, this can be done as a one-year agreement. And basically what it does is it allows for a smoother transition time. So you have options.”

An ad hoc committee of non-council members that spent the last year studying the course recently recommended in-house management and considerable investment in terms of equipment, but the eight alderpersons who set city policy appear far from a clear consensus as to a way forward.

Alderman Tom Barnett was blunt in his assessment of the situation.

“I have yet to see any kind of payback on it,” he said, referring to the course. “I think it used to be a good asset to the city. I do not think it is anymore. We have been putting money out toward that golf course year after year after year after year to not see much in return. If anything, I talked to our finance director and if we were to sell the golf course, it would go back on the tax roll, which would effectively decrease the taxes on our constituents. We would also not have to be borrowing money at this point. And there’s a lot of other benefits that go toward it. If a private owner owns it, then they are going to put the money into a golf course to make it much more spectacular than it is now. And it will bring it back to its former glory, which would not hurt (tourism) any because they would still be coming here to play golf.”

“To bring it in-house, I think would be foolish,” he added. “Now you’re talking about spending more money on finding people to run it and maintain it and paying them. One, we’re sitting here arguing about, city health benefits being put on the backs of our city employees that are going to be going up. We’re talking about all these other budget deficits that we have going on and we’re going to continue to put money out the window toward a golf course that needs a lot more attention than what I feel the city can give it at this point.”

Earlier in the meeting, during public comment, former alderman Al Jozwiak shared his perspective as well as background information about the city’s approach to the development of the course going back approximately 20 years. 

The “game plan” as developed by former city administrator Bill Bell and others, was to turn the course into a multi-purpose recreational destination, Jozwiak said. 

Unfortunately, after Bell left his position as administrator that position became a “revolving door” and with new administrator after new administrator, the plan “lost traction,” he explained. 

Jozwiak said he believes diversification is still the key to success at Northwood.

“My hope for this council is to share in that vision, rather than even think about selling the asset that’s taken 35 years to develop...” he said. “I think the concept that we are coming up with isn’t an original one. It’s basically a very popular concept that many cities have adopted to attract tourism and make their cities, you know, a better, more attractive place for not only people to come and recreate, but also possibly to come and move their families to.”

Alderman David Holt, the most senior member of the counsel, did not oppose the one-year contract proposal but stressed that the council has to keep the ball rolling over the next several months and not “kick that can down the road over and over again...”

“(The course is) still an asset to the city, even if it’s not run by the city. So I think there’s a lot more discussion to be had about which direction we want, but certainly, the one fear that I would have or the one caveat that I want to add to this, because I’m getting a little bit of deja vu here, is that there needs to be follow through with that discussion. Like, yes, I’m happy to vote to extend the contract a year. We need to have it figured out. We can’t kick that can down the road over and over again. That doesn’t mean I’m in favor of selling it. But we want it to be transparent. Subsidizing an asset that’s not profitable or not making money is not something unheard of for municipalities either. But we need to have that conversation and it needs to be transparent...”

After a few clarifying questions were answered, the panel voted unanimously to direct Reagan and the administrative team to pursue a one-year agreement with Oliphant but that was not the end of the discussion.

The agenda also included an item listed as “Northwoods Golf Course Five-Year Plan.”

That part of the discussion began with city attorney Steve Sorenson reminding the group that the golf course property was gifted to the city contingent on it being used a golf course. If it’s not used as a golf course, the property is to revert to the former owner (Wausau Paper or its successor), he continued, adding that company “has changed its identity about four times” since the land was gifted to the city in 1989.

Sorenson went on to explain that he approached representatives of the current iteration of the company approximately five years ago regarding the deed restriction.

“The concept was (the property) was given to the city for the city’s use, which was a charitable deduction on the part of the organization that was giving it because they gave it for a specific purpose,” he explained. “There’s tax law implications. That’s why I’m sure that’s why the language was used at the time. They’d have to waive those restrictions and that’s what we asked them to do the last time. And we never were able to obtain that waiver. And, and again, I’ll repeat myself in the sense that the company has changed hands. We’ve got different players.”

Sorenson also noted that the city also made certain commitments two years ago when it accepted Dr. Lee Swank’s donation of 538 acres adjacent to the golf course. That property, known as Heal Creek, is being developed as a recreational destination. 

After further discussion, city council president Carrie Mikalauski suggested a working group be formed so that progress toward a decision continues.

Alderman Gerald Anderson quickly agreed that a work group of some kind is necessary so momentum isn’t lost.

“I agree with that idea because the only way we’re going to keep our nose to the grindstone and make sure we do something during this additional year is if we have some work being done on it the whole year,” he said. “We can’t be coming up to October, November next year and still not have a plan.”

Ultimately, the group appeared to settle on the idea of holding work sessions focused only on a strategic plan for the golf course. Meetings of the work group would be separate from regular city council meetings, although all of the council members would participate in the sessions. 

As it voted to cancel its planned Dec. 23 meeting, the council has only two meetings scheduled before the contract with Oliphant expires on Dec. 31. The dates for those meetings are Nov. 25 and Dec. 9.

Those interested in the golf course issue are strongly encouraged to watch the full discussion. It is available at www.hodagtv.com.

Heather Schaefer may be reached at [email protected].