Henry LukenCLEVELAND, Tenn. -- Chattanooga businessman Henry Luken has agreed to take Waterville Golf Course under his wing in a 10-year lease agreement with Cleveland.
The city relaunched attempts to lease the golf course, located on Dalton Pike, last week after it declared that GSP Business Alliance defaulted on its 10-year $60,000 annual leasing agreement, which began on March 1.
Waterville Golf Course has lost in excess of $300,000 a year over the last three years, a factor in discussions regarding the lease or sale of the facility.
On Monday, the Cleveland City Council voted 6-1 to approve Luken's proposal to lease the golfing facility for $36,000 a year. Luken, who owns Valleybrook Golf and four other area golf courses, won out over bid proposals by James Leeth of Lupton City Golf and Cleveland businesswoman Sonya Merkel.
"It stopped the flow of money going out," said Vice Mayor George Poe, who recommended approval of Luken's proposal.
A number of Waterville golfers balked at Luken's membership packages even before the ink dried on the agreement.
"It's just outrageously too high," said senior golfer George Kyle, comparing the $163.88 monthly cost of a regular golf membership to all of Luken's courses to the $40 monthly fee he has been paying at Waterville.
Councilmen Avery Johnson and Charlie Mckenzie -- who cast the sole vote against awarding the lease to Luken -- voiced support for Leeth's proposal.
Leeth's proposal committed $324,000 in lease payments to the city over the 10-year agreement period, plus a portion of gross revenues for nine of those years. He projected his proposal would bring in $605,000 to Cleveland over the 10 years.
After the voting session, Poe and Councilman Richard Banks expressed hope for the golf course's future and relief over finally addressing problems that they said have run long and deep.
"I think Mr. Luken, owning other golf courses, will be able to bring it back up to par, so to speak," Banks said. "I hope that he will give some senior discounts to seniors."
Ultimately, the problem with Waterville Golf Course was "bad management, period," said Poe, citing complaints that included allegations that the facility's mechanical shop was used for private vehicles.
A 2014 Municipal Technical Advisory Service study concluded a number of factors contributed to Waterville's ongoing operational losses.
Since 2010, the course was often reduced to nine holes, due to the Dalton Pike widening efforts, irrigation system improvements and a catastrophic freezing of the greens, MTAS consultant Honna Rogers said in a presentation in January.
The study recommended a concentrated membership drive campaign as a means to increase the number of rounds of golf played at Waterville.
Paul Leach is based in Cleveland. Email him at paul.leach.press@gmail.com.