Wednesday, May 21, 2003 | 11:22 a.m.
Building Henderson's first municipal golf course over an old city landfill could cost up to $11.3 million, according to a consultant's report made public Tuesday, which also tentatively named the proposed course "Lava Mountain."
The cost of constructing the course would be on top of another $14 million to $15 million city officials expect to spend to properly cover and close the old landfill located about a mile northwest of the intersection of Lake Mead Parkway and Olsen Street, City Manager Phil Speight said.
Closing the landfill, which hasn't been used as city dump since 1975, will probably take another two or three years. Building a golf course there would take two to three years as well, which means if a golf course is built on the property it wouldn't be ready for play for five or six years, Speight said.
The City Council on Tuesday voted 4-1 to accept a study done by Golf Group Ltd. of Phoenix, which looked at putting a golf course on the old landfill property. Voting to accept the study does not mean the council has approved the project, just accepted the study, Speight said.
Councilman Jack Clark voted against accepting the study.
The council did not comment on the study during the Tuesday meeting, but after the meeting Clark said city leaders need to make sure the old landfill is the proper site for a city golf course. Perhaps a city course would be better in Whitney Ranch, which is east of Green Valley, he said.
Whitney Ranch has been discussed as possible location for a municipal course in the past, and Clark said city officials have been talking with developers about building a course there.
But a golf course has also been the most frequent use mentioned for the old city landfill.
The proposed Henderson Lava Mountain Public Golf Course, would be an 18-hole, par 72 course on 185 acres. The old landfill property covers about 145 acres, and another 40 acres adjacent to that property are owned by the city and would be used for the course.
The course would cost $9.8 million to $11.3 million to build, according to the study. Land at the course would also be set aside for a future school and park.
Las Vegas has four municipal golf courses, and the newest, Durango Hills, an 18-hole executive course, cost about $14 million, officials said.
North Las Vegas has one golf course, and Boulder City has two.
The Boulder Creek Golf Club in Boulder City has a $22.3 million pricetag. It has been open for six months and is in the process of being expanded from 18 to 27 holes.
Speight said Lava Mountain was chosen as the working title for the proposed Henderson course so people will be able to distinguish it from other projects. The name could change, he said.
The study also included financial projections for the first five years of the course, showing forecasts for scenarios in which the city ran the course, a private company operated the course, and equipment for the course was either leased or purchased.
When including annual debt payments of about $948,000 on a possible loan taken to build the course, the course was projected to run a deficit for its first five years in every scenario except one. If a management company ran the course and the equipment was purchased rather than leased, the course would turn a $76,863 profit in its fifth year of operation, according to the study. In its first year open under that scenario, the course would lose about $771,000.
The most expensive five-year projection involves the city running the course with leased equipment. Under that scenario, the course would lose almost $1.4 million its first year, with loses steadily decreasing to about $635,000 in its fifth year.
In all the study's projections, the annual deficits steadily decreased each year.
The study based its projections on a steady increase of play at the course over its first five years, beginning with 42,500 rounds in the first year and 60,000 rounds played during its fifth year.
Green fees for the first five years of operations were projected to range from $22 to $38 for Henderson residents; $24.50 to $42 for Clark County residents; and $65 to $78 for others. Fees varied based on time of play and increased slightly over the first five years.
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