Council buys 27 Flags Golf Course land
By Lynn Zerschling Journal staff writer | Posted: Tuesday, April 08, 2008
SIOUX CITY -- As expected, the City Council purchased the former 27 Flags Golf Course south of Sioux Gateway Airport Monday, pledging the city would work with displaced club members.
The council made no promise, however, that the city would operate the golf course. Councilman Jim Rixner said he would not vote to have city taxpayers subsidize continued operation of the course.
"If it won't require the city to subsidize the operation, I certainly would support that."
City Manager Paul Eckert and Jeff Hanson, planning and neighborhood services division manager, said discussions are ongoing with the Green Valley Golf Course board of directors and with some of the 27 Flag members.
"We're bringing in a greens expert (from Green Valley) to evaluate the course," Eckert noted.
He anticipated the staff will report back to the council in two to three weeks.
Rolly Whitsel, a 27 Flags member, said there are 130 members who are out their annual membership fees, which they paid last fall. He asked for the city's assistance in keeping the golf course open, getting their money back or being able to golf at a city course for reduced fees.
Councilman Aaron Rochester asked, "I'm curious. Have you tried to reach the business owners who owe you money?"
Whitsel replied, "They won't return any of our phone calls."
Rixner said, "You have been treated shabbily."
Two weeks ago, the attorney representing the 27 Flags owner said he did not collect the membership fees. Rather, he said, another company that operated the course, called Hoohaa Inc., did. The city is buying the land from 27 Flags for $1.46 million, which is 30 percent below the appraised value of $2.1 million.
Hanson said the building has been valued at $337,000, while other money was invested in the irrigation system and greens. The total cost per acre is $8,000. If the building and other improvements are removed from that figure, the cost per acre is $6,000.
Jerry Moore, who ran unsuccessfully for mayor, said, "I personally don't believe it is worth this much."
Rochester asserted the price is not excessive, given the increasing value of farmland due to all the ethanol and biofuels plants under construction, which will use those crops. Councilman Dave Ferris said land along Singing Hills Boulevard is selling for $35,000 an acre.
Mayor Mike Hobart added, "It's location, location, location. ... Given our topography, you don't have a lot of level ground" for industrial development.
Connie Nelson of 2915 Jackson St. said, "It makes good sense to plan ahead."
About 40 to 50 acres of the tract would be reserved for the new water treatment plant, with the remaining tract used to provide shovel-ready sites for development. The plant will boost water pressure to Morningside, as well as provide service to Sergeant Bluff, which buys water from the city, according to Ricky Mach, water plant supervisor.
"This is very timely" in order to meet the state mandate, he said. The Iowa Department of Natural Resources will require the city to operate a second plant by 2011.
Darlene Schultz of Sergeant Blvd asked why the council did not consider building the plant on land in Bridgeport West. Marty Dougherty, the city's economic development director, pointed out the Siouxland Chamber of Commerce owns that 109-acre site north of the airport. The city provided the infrastructure.
"The exciting news is that we're working with two different prospects, including one in particular, that should result in industrial development with lots of jobs," Eckert said.
Councilman Brent Hoffman was out of town on personal business and missed Monday's meeting.
The council made no promise, however, that the city would operate the golf course. Councilman Jim Rixner said he would not vote to have city taxpayers subsidize continued operation of the course.
"If it won't require the city to subsidize the operation, I certainly would support that."
City Manager Paul Eckert and Jeff Hanson, planning and neighborhood services division manager, said discussions are ongoing with the Green Valley Golf Course board of directors and with some of the 27 Flag members.
"We're bringing in a greens expert (from Green Valley) to evaluate the course," Eckert noted.
He anticipated the staff will report back to the council in two to three weeks.
Rolly Whitsel, a 27 Flags member, said there are 130 members who are out their annual membership fees, which they paid last fall. He asked for the city's assistance in keeping the golf course open, getting their money back or being able to golf at a city course for reduced fees.
Councilman Aaron Rochester asked, "I'm curious. Have you tried to reach the business owners who owe you money?"
Whitsel replied, "They won't return any of our phone calls."
Rixner said, "You have been treated shabbily."
Two weeks ago, the attorney representing the 27 Flags owner said he did not collect the membership fees. Rather, he said, another company that operated the course, called Hoohaa Inc., did. The city is buying the land from 27 Flags for $1.46 million, which is 30 percent below the appraised value of $2.1 million.
Hanson said the building has been valued at $337,000, while other money was invested in the irrigation system and greens. The total cost per acre is $8,000. If the building and other improvements are removed from that figure, the cost per acre is $6,000.
Jerry Moore, who ran unsuccessfully for mayor, said, "I personally don't believe it is worth this much."
Rochester asserted the price is not excessive, given the increasing value of farmland due to all the ethanol and biofuels plants under construction, which will use those crops. Councilman Dave Ferris said land along Singing Hills Boulevard is selling for $35,000 an acre.
Mayor Mike Hobart added, "It's location, location, location. ... Given our topography, you don't have a lot of level ground" for industrial development.
Connie Nelson of 2915 Jackson St. said, "It makes good sense to plan ahead."
About 40 to 50 acres of the tract would be reserved for the new water treatment plant, with the remaining tract used to provide shovel-ready sites for development. The plant will boost water pressure to Morningside, as well as provide service to Sergeant Bluff, which buys water from the city, according to Ricky Mach, water plant supervisor.
"This is very timely" in order to meet the state mandate, he said. The Iowa Department of Natural Resources will require the city to operate a second plant by 2011.
Darlene Schultz of Sergeant Blvd asked why the council did not consider building the plant on land in Bridgeport West. Marty Dougherty, the city's economic development director, pointed out the Siouxland Chamber of Commerce owns that 109-acre site north of the airport. The city provided the infrastructure.
"The exciting news is that we're working with two different prospects, including one in particular, that should result in industrial development with lots of jobs," Eckert said.
Councilman Brent Hoffman was out of town on personal business and missed Monday's meeting.
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