Thursday, Feb. 21, 2002 | 10:06 a.m.
Evergeen Alliance Golf Limited, based in Irving, Texas, will break into the Southern Nevada market as the operator of a golf course that is being built by the city in northwest Las Vegas.
Las Vegas City Council on Wednesday unanimously approved a $22.5 million management contract with Evergreen to operate the Northwest Family Golf Course for 15 years.
Mayor Oscar Goodman said he originally had concerns of whether to approve the contract after hearing the company had pulled out of a deal with the city of Henderson to build a golf course.
But city staff allayed his concerns after explaining the differences in the proposals.
Evergreen executives have said the company determined the risk was too high to finance a golf course in Henderson and dropped the deal after more than a year of negotiations. But in Las Vegas, the company will only manage the course. The city is financing construction of the 78-acre golf course near Gowan Road and Cheyenne Avenue through $12 million in city bonds.
Evergreen's contract is for six years, with three, three-year extensions.
The city estimates it will cost $1.35 million in operating expenses the first year, including a $96,000 management fee paid to Evergeen.
Before the course opens Evergreen will receive a prorated management fee of $23,000, plus allowable costs. Once the course opens, the company will receive a monthly management fee of $8,000 until June 30, 2003, when it will be increased based on the consumer price index.
The city will approve the course's budget each year and set course fees.
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