Gwinnett County may ask a private company to manage a public golf course that has struggled for years to pay its debts.
On Monday the county announced that CGL of Savannah Inc. is the only company that responded to a request for proposals to lease and manage Collins Hill Golf Club near Lawrenceville. The company operates seven golf courses, including Mystery Valley Golf Club in Lithonia and Sugar Creek Golf Club in Atlanta.
Neither county officials nor the company disclosed details of CGL of Savannah’s proposal. Gwinnett officials say leasing Collins Hill is just one option the county is exploring as it decides what to do with the financially troubled course.
“It’s an option that, if successful, can keep the course open,” said Gwinnett Communications Director Joe Sorenson.
Gwinnett’s decision to seek a private manager for Collins Hill is the latest twist in the county’s long involvement with the course.
The county bought the course -- previously known as Springbrook Country Club -- for $3.4 million in 1988 to provide affordable golf to local residents. County officials borrowed the money to buy Springbrook but vowed it would make enough money from golfers to cover its operating costs and repay the debt.
Though Springbrook did well initially, business gradually declined and repaying the debt became more difficult.
In 2000 the county sold it to the public Springbrook Golf Commission for $3.3 million. The golf commission renamed the course Collins Hill Golf Club and pledged to pay the county over 30 years.
But the commission never paid the principal on the debt and hasn’t made an interest payment in three years. In July the commission also stopped payments on about $1.8 million in bank debt used to make capital improvements.
Commission officials attribute the course's financial problems to the poor economy and damage caused by last year's flooding.
Though it no longer owns the course, the county remains responsible for its debts. When Collins Hill stopped paying the bank debt the county picked up the $9,680 monthly payments and started planning to take possession of the course by the end of this year.
To recover the money it spent buying the course and pay the bank debt, the county would have to sell the course for about $4.1 million. County officials haven’t ruled out a sale.
“We’re in the very early stages of exploring the lease option,” Sorenson said. “We will continue to explore all options.”
One option outlined in county documents is to lease the course to a private company for 20 years, with two 10-year lease renewal options. The company would be responsible for running the course and paying for capital improvements. It would keep golf course revenue but would pay the county annual lease payments.
Gwinnett officials will evaluate CGL of Savannah’s proposal and make a decision about whether to lease the property later this year.
Alan Cale, vice president of CGL of Savannah, said the company is interested in Collins Hill but declined further comment.
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