EAGLE MOUNTAIN — Eagle Mountain is the proud owner of a golf course, but city officials hope it doesn't last forever.
Last week, the City Council voted 3-2 to accept the donation of The Ranches Golf Club free and clear from a private company. The deal includes the 220-acre golf course, $650,000 cash, equipment and a cell phone tower lease.
Eagle Mountain city administrator John Hendrickson, however, said the city's goal is not to be the long-term owner.
The city owns the golf course, but Vanguard Golf Management Group, which operates the Thanksgiving Point and Sand Hallow golf courses in Lehi and St. George, is taking care of day-to-day operations.
Eagle Mountain Links LLC, which acquired The Ranches Golf Club from the original developer, was seeking a buyer for the course after financial difficulties, Hendrickson said. When a buyer couldn't be found, the group approached Eagle Mountain last year about donating The Ranches without any financial encumbrances. This way, the city will act as a bridge between owners.
At first, city officials were leery of the prospect of getting into the golf course business, Hendrickson said. Even so, officials decided to look into the opportunity with an open mind. He said Vanguard's professional operation of the course will hopefully lead to a drop in losses.
The council showed guarded interest in learning about the proposition, and some members were concerned Eagle Mountain would have some of the same difficulties Cedar Hills is experiencing with its city-owned golf course.
But Hendrickson said the two situations differ, as Cedar Hills' golf course was financed with a bond and Eagle Mountain's is a debt-free donation.
Perhaps the most important key to winning a majority of the council's support was securing the services of Vanguard for operation.
"Unless I felt really good about getting a top-flight management company, I wouldn't recommend the city getting into this," Hendrickson said.
Vanguard will have the opportunity to purchase the course, which is what Hendrickson said the city are hoping for. In the meantime, Vanguard will submit a yearly operating budget like any other department in the city. Additionally, the city will put most of the $650,000 cash into a golf course enterprise fund to be used as reserve and to supplement Vanguard's operations.
"Some people thought we were going to turn around and give (Vanguard) $650,000," Hendrickson said. "Nothing could be further from the truth."
Even though Vanguard has the opportunity to purchase, it isn't forced to. Vanguard can end operation of the course with a year's notice to the city.
While he hasn't received any feedback from the community specific to the golf course, Hendrickson said some council members have reported positive feedback from residents. He said Vanguard is also planning some sort of discount for city residents.
e-mail: jdavis@desnews.com