Gurnee golf course future could be debated in late summer

Discussions on what should be done with a golf course now owned by Gurnee are expected in late summer.

Mayor Kristina Kovarik said Thursday the 240 acres that Bittersweet Golf Club sits on must remain for open space and recreation uses under a developer agreement that resulted in the village receiving the land for free in the 1990s.

Kovarik said officials will be open to suggestions for the land when the future of the 18-hole layout is publicly addressed, most likely in August or September. She reiterated it isn’t desirable for village government to stay in the golf course business, in part because of the sport’s downward trend.

“Anything is on the table,” Kovarik said. “It’s an asset for the village and we have to find the highest and best use for the property.”

In a financial projection released this week, Gurnee expects to turn a small profit on Bittersweet Golf Club. However, Kovarik said, the thin profit expectation isn’t impressive considering the village owns the course outright.

For this golf season, Bittersweet is projected to generate a little more than $1 million against total expenses of $978,500. After paying a $40,000 management fee to a company running the 18-hole layout, the village should wind up with a $13,500 surplus.

Village trustees last month amended the 2011-12 budget so $710,000 in reserves could be transferred into an account dedicated to Bittersweet, on Gurnee’s west side near Almond Road and Grand Avenue. More than $525,000 in public money went toward taking over Bittersweet, which fell into foreclosure in 2009.

Chicago-based Starbird Links Golf Management, led by real-estate turnaround expert Samuel M. Ekstein, has been running Bittersweet since it landed in the most recent foreclosure lawsuit. Ekstein said his company’s $40,000 fee is a reason Gurnee should wind up with a profit.

“They are getting an absolutely good deal,” he said. “It’s vastly below market.”

Gurnee formally took possession of the long-struggling links April 15. The village board voted to buy out the remaining 21 years on a lease held by First Merit Bank.

Bittersweet opened as a public-private venture in June 1996. It was supposed to share leftover profits with Gurnee, but officials said that never occurred.

While Gurnee has owned the land the course sits on, a private company was supposed to control the actual operation that includes a clubhouse and pro shop.

Ekstein said Starbird Links has improved the condition of Bittersweet’s layout, service and amenities. That led to more rounds played and profitability, he said.