Cleveland, TN to lease out money-losing Waterville Golf Course

The Cleveland City Council is considering what to do with the money-losing Waterville Golf Course located just south of the city limits.
The Cleveland City Council is considering what to do with the money-losing Waterville Golf Course located just south of the city limits.

CLEVELAND, Tenn. -- A private business will lease the Waterville Golf Course from Cleveland, saving the city from having to close the facility or turn around operational losses that have surpassed $300,000 in each of the past three years.

In a recent meeting, the Cleveland City Council voted 7-0 to approve a 10-year renewable lease with GSP Business Alliance LLC, which will pay $60,000 annually and have use of the facility's equipment, effective March 1.

"It's going to be terrific," Councilman Dale Hughes said. "These people are very knowledgeable, and I think they're going to make it go. It's going to be a great place for Cleveland golfers."

GSP will use HMS Golf, a professional golf management service based in Atlanta, GSP CEO Rocky Morgan said.

The transition in golf course management will not result in a layoff of city employees, City Manager Janice Casteel said.

"We will offer affordable golf membership plans and competitive day rates to encourage the revitalization of the golf course and community participation," Morgan said in the company's proposal.

GSP will "grandfather in" the membership rates for current members and protect the site's spring in accordance with Cleveland Utilities' needs, he said.

The longstanding members are a real asset to Waterville Golf Course, and he wants to keep them, Morgan said.

GSP's plans for the course include golf lessons for beginning and advanced players, event planning and community fundraisers, and golf programs for juniors, seniors and women, according to the company's proposal.

A Municipal Technical Advisory Service study concluded that a number of factors contributed to the operational losses that have amounted to nearly $1.2 million since 2010.

Since 2010, the course often has been reduced to nine holes, owing to the impact of widening nearby Highway 60, construction of an improved irrigation system and a devastating freezing of the greens, said Honna Rogers, a consultant with MTAS, which provides technical advice to cities and towns across the state.

These local factors coincided with marked drops in rounds of golf played at Waterville, following a trend of reduced golf play at courses nationwide.

In 2007, the course hit a high-water mark of 14,700 rounds of golf, compared to 3,500 and 5,000 rounds between 2011 and 2013. Last year saw a significant uptick in numbers, with 8,289 rounds played.

Rogers projected that 12,000 rounds could be achieved in another year if membership drives, incentive programs and increased marketing efforts were effective.

If membership revitalization efforts were successful, the city was projected to reduce Waterville's losses to $100,000 in a year, possibly breaking even the year after that, Casteel said.

Transforming the course into a park was estimated to cost $54,450 annually for upkeep and other expenses, said Shawn McKay, financial director for Cleveland. Completely closing the site would cost $5,700 in annual insurance costs, he said.

Email Paul Leach at paul.leach.press@gmail.com.

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