Golf club wants 50-year lease with city

The Whitefish City Coun-cil continued its discussion of amending its lease with Whitefish Lake Golf Club at its Sept. 20 meeting.

The organization, which has leased the North Course area from the city for 73 years, and which celebrated its 75th year of operation this year, wants a long-term lease so it can finance construction of a new $750,000 to $1 million maintenance facility.

It would like to move the expiration date of its lease from 2018 to 2061.

WLGC's current 20-year lease calls for a flat $17,000 annual payment and a 3 percent net-profits payment to the city, along with maintenance of both Whitefish Cemetery and Grouse Mountain Park. The proposed 50-year lease would increase the annual payment to $20,000 and provide for an annual payment escalator based on the consumer price index every 10 years.

Board president Paul Johannsen and secretary Terry Nelson said WLGC employs 130 workers, generates about $75,000 per year in resort tax revenues and pays $30,000 in property taxes to the city. WLGC also charges nothing to host Glacier Nordic Club's cross-country ski course every winter, they said.

"We believe this relationship has truly benefited both parties as well as the community in general and will continue to do so far into the foreseeable future," they said.

Councilor Phil MItchell, who once served as WLGC president and made a living building golf courses, said he agreed with the proposed $20,000 annual payment but wanted a 3-year escalator. He also said he preferred a payment based on gross proceeds, not net profits, because WLGC could invest all their net profits in the facilities and pay the city nothing.

Councilor Chris Hyatt wanted to know more about WLGC's two sub-leases to golf pro Tim Olson and Whitefish Lake Restaurant owner Doug Reed.

Noting that the golf course is the "great equalizer" in the Whitefish community, councilor Bill Kahle warned about too much dabbling leading to unintended consequences.

"The golf course has been run really well a very long time," he said. "Let's not mess with this too much. It looks really nice — it's a gem compared to other municipal golf courses."

Mayor Mike Jenson noted that WLGC has "not abused investments in the past" and is "a model for how municipal courses should be operated."

"It benefits more than taxpayers," he said, agreeing to join city staff in negotiating a new lease with WLGC.