Gurnee golf course declared financial winner so far
Gurnee officials received a positive report about the financial performance of village-owned Bittersweet Golf Club.
As evidence of what he called a strong bottom line, Bittersweet general manager Dirk Skelly presented a $50,000 profit distribution check to Gurnee Mayor Kristina Kovarik at a meeting Monday night.
Kovarik said Bittersweet has gone from “an albatross around our neck” to a community amenity.
“You turned me around,” Kovarik told Skelly. “I actually enjoy the course now.”
About $525,000 in public money went toward village government taking over Bittersweet two years after it fell into foreclosure in 2009. Bittersweet is on a 240-acre site near Almond Road and Grand Avenue, west of Gurnee Mills.
Village trustees in November 2012 awarded a five-year contract to operate the course to Mundelein-based GolfVisions, which employs Skelly. Gurnee paid $33,000 to GolfVisions in each of the first two years, with $36,000 annually for the last three years.
In addition, GolfVisions will receive 15 percent of the gross revenue if it eclipses $1 million annually for the last three years of the contract. Gurnee will pay the incentive fee only if there's a profit, according to GolfVisions' deal with the village.
Skelly said Bittersweet's total operating profit this year stand at $118,000, above a projected $110,000. He said while poor spring weather curtailed play, there have been 13,900 total rounds and the course is on pace for about 25,000, similar to 2014.
National Golf Foundation's current industry overview shows roughly 25 million players nationwide hit the links for at least one round in 2014.
“Golf continued its macro trend toward stabilization in 2014, in contrast with the sensational negative perceptions of the game and business portrayed by many in the mainstream media,” according to the foundation's report.
Gurnee formally took possession of the long-struggling links April 15, 2011. 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.
Starbird Links Golf Management of Chicago, led by real estate turnaround expert Samuel M. Ekstein, had operated Bittersweet in 2011 and 2012. GolfVisions topped Starbird in the bidding to run Bittersweet.