Would you trade a defunct golf course for condos? Palm Desert CC residents are torn.

As it weighs the future of one of the oldest golf courses in the city, Palm Desert City Council played the equivalent of a lay-up shot last week: it postponed its decision until April.

The council voted unanimously to continue discussing a plan to build 69 condominiums on the defunct 9-hole golf course at Palm Desert Country Club on April 26, saying it needs to study potential restrictions on what can be built on the property.

The future of the country club's smaller executive fairway has split neighbors for years. Some say they believed the golf course would remain open space and are now fighting to save mountain views and avoid peering into a row of condominiums. Others prefer new homes to having a closed golf course as a neighbor.

And the course's owners argue they have no recourse but to build something new. Moe Sihota, one of the owners, said it's not feasible for Palm Desert Country Club to raise prices, subsidize the course or convert it into a park for soccer golf or Frisbee golf.

“It becomes a drag on the business,” Sihota said.

The condominium proposal is modest, Sihota added, designed to accommodate homeowners and maintain as much open space as it can.

Country club residents like Serena Illk aren't buying that argument. Illk said the owners "destroyed a gold mine" at the executive, failing to properly manage and advertise it.

“The thing that makes me the angriest is how the truth has been manipulated to support applicants' claim that they couldn’t make a profit on this property," she said. "Sure, the golf industry is changing, but the change that is occurring is not total death to the game, but a move away from an expensive full day spent on the golf course to a less expensive option of an hour and a half or shorter round on shorter courses.”

PALM DESERT NEWS: El Paseo's small shops struggle while chain boutiques get all the hype. Local owners want change.

Sihota and a group of Canadian investors bought the Palm Desert Country Club out of bankruptcy in 2011, a sale that included the club's 18-hole and nine-hole golf courses. The new owners reopened both courses a year later.

At first, the new owners sought to raise money to keep the small course open by placing a fee on nearby neighborhoods, but abandoned the proposal in the face of resident push back. By 2014, the owners had shut the smaller executive course, saying it had become a money losing venture. And in its place, the investors floated a new plan: homes.

The suggestion was unwelcome news to some homeowners, a group of which formed a committee to oppose the development. One sent city planners photos of residents holding an 18-foot pole to bolster their argument that condominiums would obstruct mountain vistas.

PREVIOUSLY: Country club doesn’t want 9-hole golf course developed

BACKGROUND: Golf course's future splits Palm Desert community

Meanwhile, the condo proposal has advanced through the city planning process.

Palm Desert Planning Commission in December recommended City Council approve the 69 single-story condominium units. Designs for the new residential project also include recreational spaces with pools, tennis courts, a playground and a walking trail.

But the condominiums cannot move forward unless the city agrees to rezone three parcels currently zoned for open space. The city must also approve a plan, conditional use permit and environmental assessment for the project.

At a public hearing on March 22, Palm Desert Country Club homeowners pointed to documents that they believe require the property to remain open space. Palm Desert City Attorney Robert Hargreaves said he understood that those restrictions had been voided during bankruptcy proceedings.

Residents also raised concerns about the impact of the project if it does move forward, saying it would leave them with a noisy construction site, decreased property values and increased traffic.

A few residents came to the project's defense, reading letters on behalf of neighbors that support it, too.

"I think the project should go forward. It's a lot better situation than what we have right now," said Tim Ollom, a resident on Kentucky Avenue. "I know it's never going to be a course again, so let's move on."

And a few lingered on another point: the owners of the golf course are Canadian.

"This is a human issue, an American issue," said Robert Verde, one resident. "I see the American flag behind you, and I see the owners of this course are from another country. I don’t dislike them because of that, but I do believe that our elected representatives are here to represent the people.”

Mayor Sabby Jonathan responded from the bench later in the hearing.

"This city and this valley embraces diversity, including Canadians, whom we happen to love because they invest here, they live here, part time or otherwise," he said, "and I want you to know that you're always welcome in our city and in our valley."

The council ultimately opted to revisit the discussion in April. It asked staff and legal counsel to review historical covenants that governed development on the property. Staff will also seek additional details on the development proposal.

"Because of the history, because folks have been (inaudible) by past disappointments and expectations in this instance, I would like to see the documentation include clarity about some of the particulars about some of the promised amenities, not as much as refer loosely to exercise equipment," Council Member Kathleen Kelly said.

Reporter Amy DiPierro covers real estate and business news at The Desert Sun in Palm Springs. Reach her at amy.dipierro@desertsun.com.