Ramapo seeks operator for money-losing Spook Rock golf course

RAMAPO - With the town golf course losses estimated upward of $800,000 annually, town officials are looking to save money by hiring a company to operate and maintain the facility.

The Town Board approved a request for proposals with hopes of drawing an operator for the town-owned 150-acre, par 72 course Spook Rock Golf Course. The request for proposals allows officials to negotiate with firms, as opposed to seeking bidders, acting Supervisor Yitzchok Ullman said Thursday.

"The issue is the town is losing approximately $800,000 annually," Ullman said. "We want to see what's out there."

Ullman knocked down rumors that the town would sell the 18-hole course, which opened in 1970.

SPOOK ROCK: Request for proposal for operator

Ramapo Town Attorney Michael Klein said the golf course is dedicated parkland and can't be sold without state Legislature approval and an appropriate plot of land as replacement.

Ullman said proposals must be received in the next 45 days. He said the Town Board would review the proposals with members of the Ramapo Golf Advisory Committee and get public comments.

"It's parkland and it's staying a golf course," said Ullman, who is running for his Town Board seat on the Democratic Party line and not seeking the supervisor's seat.

Bill Weber, the Republican running for supervisor, said he's wary of the town's ability to negotiate a contract.

Weber said he doesn't think the town got good deals when then-Supervisor Christopher St. Lawrence negotiated long-term contracts for the town's baseball stadium and equestrian center. St. Lawrence was booted from office for his federal conviction on corruption charges in May.

"I pointed out that I am fearful that the town has a bad track record of entering into these lease agreements," Weber said, referring to his comments at a Town Board meeting on Wednesday.

Weber, an accountant, said he also questions some of the financial numbers in the town's request for an operator.

He said there are potentially $200,000 in salary savings from two employees retiring and being transferred from the golf course. He said the town can't lay off union workers under a contract, so those golf workers would have to be shifted to the baseball stadium or other parks.

"If they get rid of employees, it would be workers on the lower end of the union pay scale," he surmised. "One could argue this doesn't save taxpayers money but just shifts the costs to other departments."

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Ullman said the town hopes to see retirements by some employees for cost savings.

Weber, who's a golfer and has friends who golf at Spook Rock, said the town should consider adjusting the fees for residents and non-residents that he called "relatively cheap." adding the town is "leaving money on the table."

Weber predicted the town would eventually consider privatizing other facilities, like the Joseph St. Lawrence Community Health and Sports Center in Western Ramapo's Torne Valley.

If the town chooses an operator from any proposals received, the town would get an annual fee — the core of the proposal. The chosen operator would take the revenues after costs from the golf fees, pro shop and restaurant.

Weber said he fears the town will mess up the lease as an excuse to eventually see the acreage for housing.

Ullman said he spoke with Orangetown officials who hired an operator to oversee losing revenue at that town's 27-hole Blue Hill Golf Course and its nine-hole Broad Acres course in Pearl River.

Orangetown Finance Director Jay Bencik said the town has seen a change in fortunes since contracting with Applied Golf LLC in 2014 to run Broad Acres and in 2016 to run Blue Hill.

He said both courses combined are breaking even in 2016 as the company is paid a total of $1.93 million to run both facilities — $595,000 for Broad Acres and $1.34 million for Blue Hill.

Bencik said Blue Hill saw a profit of $118,000 in in 2016, after losses ranging from $616,000 in 2013 to $450,000 in 2015. Broad Acres' losses ranged from $267,000 in 2013-14 to $120,000 in 2016.

"Blue Hill is looking to be more profitable next year," Bencik said.

Jay Mottola, the former executive director of the Metropolitan Golf Association in Elmsford, said hiring management groups to operate municipal golf courses in not a trend, but it's done. Mottola worked as MGA's head for 30 years and now is a senior adviser.

He said golf course profits have been flat or negative for the past six to seven years, depending on the facility. Courses were hurt by the recession that began in 2008.

"Some of the municipal, state, county and town courses have fared OK because their value is good," he said. "Municipalities looking to reduce the risk of operating a facility have looked to big management groups."

Mottola said Spook Rock remains a highly regarded golf course, noting MGA has held its public links championship at the course.

"At Spook Rock, the play has held up reasonably well and its maintained," Mottola said.

Ullman said evaluating and potentially privatizing the golf course is part of his promise for the town to review all departments for savings.

"We want to keep the golf course but we want to make sure we're not losing a tremendous amount of money," Ullman said.

Ullman said the town will seek to break its lease with the equestrian center operators and then rebid for a replacement.

Ullman noted the town also is reviewing its Local Development Corp. finances with an eye on disbanding the agency.

The LDC holds the $25 million bonds on the baseball stadium, which the town guaranteed in case the agency defaulted. The Town Board now runs the LDC, getting rid of the agency's paid executive director and bookkeeper as well as its unpaid three-member board.

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