The taxpayers of Madison could do many things with $250,000. They could start a new downtown organization committed to revitalizing Main Street retail and entertainment. They could buy the Masonic Temple at the center of town, fix it up, and turn it from vacant building to revenue-generating and Main-Street-anchoring community cultural center. They could pave Madison's gravel streets. They could buy snowgates or just hire a bunch of young fellas to follow the plows and clear the windrows from everyone's driveways.
Or they could float the Madison Country Club an interest-free loan.
Madison Country Club board member and Lake Herman neighbor Mark Lee goes before the City Commission Monday night to request a quarter million dollars. In an October 31 letter to Mayor Hexom (included in Monday night's agenda packet, pp. 5&ndash7), Lee argues that the city should provide funding for one-third of a project to demolish a thirty-year-old addition and completely overhaul the "historic" 53-year-old stone clubhouse. Lee laments that the Madison Country Club "is not a regular stop on tours when we are working to entice new economic development to our community."
Lee emphasizes that the Madison Country Club is asking for a loan that it will repay in "about 13&ndash14 years" while other out-of-town projects like the bike path, Prairie Village, and the 1980s dredging of Lake Herman have received grants from the city. The country club sweetens its request with an offer to host a "robust junior golf program for all youth of our community" and discuss "other partnerships."
The city commission will, of course, say no. Last spring, some citizens suggested that the city might want to contribute to the construction of a new gym and renovation of the high school. Supporters of that idea made arguments very similar to Lee's: old building in sad shape, better facilities needed to host bigger events, potential for boosting economic development. But Commissioners Dick Ericsson and Scott Delzer put the hard kibosh on such suggestions, saying the city doesn't have the money for new projects or facilities.
Now if I'm wrong (and you know you love it when I am!), if the city writes the country club a check, we'll want to ask a few questions:
- How did the city go from being "maxed out" to having $250,000 to float interest-free to the country club?
- How do the richest people in town (i.e., those with the resources to dedicate their leisure to golf) not have enough money to build their own darn clubhouse?
- How does the city justify investing in an out-of-town recreation facility that is not practically accessible to all citizens when the downtown core everyone sees and uses is crumbling?
The city commission hears the country club's request Monday night. Madison neighbors, if you can think of something better you could do with a $250,000 interest-free loan from the city, you still have time to submit a competing proposal.
p.s.: Lee ventures merrily into argument by alternative universe:
...[I]t goes without saying that if MCC did not exist, Madison would likely be operating and subsidizing its own public course. It would be hard to imagine a community our size without a golf course at all. As a quality of life asset and economic development lever, a golf course is important [Mark Lee, on behalf of Madison Country Club Board of Directors, letter to Mayor Gene Hexom, 2011.10.31].
I find it hard to imagine a town Madison's size ignoring a vital economic development lever like vibrant downtown retail and cultural activity. Yet Madison does.
I am willing to bet it will be approved........
I visited with Gene a couple of weeks ago as we walked the track at the Community Center for around half an hour. I've known him for a very long time and went to school with his son Lowell. I came away with a better understanding of some issues I was curious about.
It's nice to see improvements being planned around town with some updates downtown too. I am seeing a new attitude in Madison. Even if the city chooses not to give the Country Club a loan, it's a good thing that they are looking at updating their building. Years ago, we used to have our Leader Christmas parties there, but I have not been inside since.
I agree that the country club could be made into a much nicer facility and could draw many more people to enjoy the lakeside. I'm asking whether this project should be a priority for taxpayers.
I was at the candidate forum last spring where it was made very clear that there was no extra money at city hall even for a worthy project such as updating the high school. It would seem that the answer to the request of MCC would be the same-sorry but we couldn't even manage token assistance to the MCSD. The fact that letter of request is on the agenda for Monday night-the answer appears to be in the afirmative.
Cory, I don't think it would be the worst investment if we remember that it is a loan.
The two questions that the city will need to address is:
1. Will the city benefit enough from giving the loan to justify its cost in free interest?
2. Is the financial position of the Country Club good enough to pay off the long term debt that will be incurred by the renovation?
Cost to the city on a per year basis won't be very much, but it will take out $250,000 out of Madison's total debt capacity that could be used to finance other projects.
I guess I don't see why the city could not move forward on the Country Club and start working on improvement plans for downtown at the same time, but I am not aware of what the current resources are or what is already in the works. I guess we will have to see on Monday.
Not all golf fanatics are rich. Many people like to hit that little white ball.
I'm not asking whether it would be the worst investment. I'm asking whether it would be the best investment. The commissioners said they didn't have the money to invest in the school. To turn around now and say they have money to invest in a country club clubhouse would be... well, let's start with embarrassing.
The city can certainly say "no".
Too many people don't ask for what they want (not Cory). If no one starts any conversation, you don't get anywhere.
Has attendance, rentals, and green fees generated enough in revenue in recent years to show repayment capacity for a loan whether sourced through a bank or through the city? If the city provides the loan, will they take first position on real estate to secure the funds provided? What is the risk of the loan becoming an outright grant/gift in the near future?
"If no one starts any conversation, you don't get anywhere"—Michael, you've captured my blog ethos perfectly. Please try to explain that to Mayor Hexom next time you hit the track with him.
Charlie, excellent questions. Lee's letter says the country club expects to see nearly $500K per year "plus some modest growth." He says MCC sold 229 memberships in 2009 and 270 in 2010. (See fees here.)
MCC plans to fund this project in thirds: a third from the city, a third from the bank (they haven't taken that loan conversation to Knuths or Fiegen yet), and a third from private donations. They've just started the fundraising pitch and have secured pledges of $93K from just 11 investors.
I wonder what improvements we could make to transform the current downtown armory, as since now we'll have a new gym complex, so why not look towards re-imaging the purpose and role of this neglected facility, it's actually a really interesting structure, which could use some creative thinking to make into something fresh and exciting, and it comes with its own parking lot. I bet 250k could go a long way towards an honest community planning/development conversation...
I kind of wonder why the prices of electric, water, sewer, etc. keep going up and then the city gets into the loan business. This loan would be on the residents who are again paying more money for utilities, etc. Isn't that what a bank is for. I'm sorry but I can't go to the city for a loan to improve my property.
...and to continue on the positives for the armory structure, it has an existing stage and its own inherent historical presence, and perhaps only to me, it screams culture as it could be an incredible theatre and fine arts complex, and thus, provide the catalyst for a better and culturally richer downtown Madison.
When Erin and I come back to the lake next summer, we'll be asking the city to give us a loan to improve our Lake Herman property. We'll also be requesting a 50% refund on our sales tax, since we will be bringing more revenue to Madison with our resumed grocery purposes.
Chris, don't forget that events at the armory would generate direct sales tax revenue for Madison... unlike events at the country club outside city limits.
Yes it would Cory, excellent point to add to this conversation.
I think we should really look towards the Armory, and a half-dozen other neglected downtown structures, and see what role/purpose they could have in a revitalized downtown plan, and as you so clearly point out, we should be sure to consider the impact of newly created sales tax revenue, need not mention employment opportunities and such other things...
What you guys are talking about is not unlike the Goss Opera House in Watertown. I was given a tour during renovation. Someone is going to need far deeper pockets than you realize.
Non-unique argument, Michael: the same statement could apply to the proposed country club renovation. The question remains: should the city subsidize the country club when lots of at least as valuable downtown projects could be tackled?
If we redid all of downtown, we might be talking well in excess of a $10 million investment.
I guess we find out Monday...
And if we started investing in downtown now, we would see increased sales tax revenues that would help us do that comprehensive renovation. Word of the day: snowball... as in let's get that downtown snowball rolling for everybody instead of subsidizing the country club!
The Country Club is on the agenda. They are the ones asking for a loan. I am sure if you would like to put together a plan to have the city help improve downtown, the commissioners will listen.
Ha ha ha ha ha ha! Chris couldn't even get the commission to let him hold a dance downtown that would have cost the city nothing. The LAIC has reguarly rejected input and offers of volunteer help from Erin, Ashley, and me. Jon Hunter has opined regularly about the need for renovation downtown with no sign of interest or action from the City Commission. This is country club versus regular folks.
But if you would like us to put a proposal on the agenda, then we might be able to get Chris Francis, John Hess, Ashley Allen, and others to put together a competing proposal. Are you fellas interested? I can loan you my three-page proposal for bringing the Masonic temple to life. $250,000 puts us in business by summer 2012.
i would suggest meeting with the owners of the various downtown buildings FIRST to see how much support there is for improvements. As in the case of the Masonic Temple, most of the property is privately held. They may have other ideas to contribute to your cause. Unless you can enlist Madison residents into running with the ball, then I don't think things will move quickly for you or your dream for downtown.
Just look what the arts council can do w/5k a yr from the city, and then imagine what could be accomplished with just a little more support and investment into the promises of creative cultural development, we really do have an opportunity to make something happen w/the arts in Madison, and we're well positioned, but I do fear that opportunity to brand our community as such is fading as we continue to ignore the potential impact and benefits of such pursuits...
...and need I mention that the armory is already city-owned, seems like that first hurdle is already addressed, now let's make something of that opportunity for the economic betterment of the community as a whole.
Chris, will the benefits that arts council provide scale up if more money is invested? What is the point that more money does not provide more ROI?
Michael, I'll bet Chris can give you those answers. I will be curious to see if the city commission subjects the country club board to similarly rigorous interrgoation. Hmm... has the country club enlisted the public and sought their support before going to the city commission?
If you want to get money from anyone, be prepared that there will be questions asked.
You're saying that to Mark Lee and the country club crowd, right? More importantly, the commission will say that to the country club crowd, right?
I am saying that to EVERYONE. There is no such thing as a free lunch.
There has to be a return on investment. That return may be financial or a better quality of life. It's up to the city commissioners or Madison residents (which neither of us are) to determine if the Madison Country Club's project qualifies within the constraints of the budget.
You can argue government's role in development all day. Some will say that free enterprise will solve all problems while others want to see huge investments by government to help establish and expand businesses. Neither is necessarily wrong. The are consequences for either action/inaction.
Some things do very well on a limited budget but do not scale well. Sioux Falls might find that out with their event center.
Why are you trying to cause a rift when none exists?
Rift? Michael, you keep making the mistake of thinking I'm the story. I'm not. The story here is that some of the richest people in town are asking for a quarter-million-dollar no-interest loan for their recreation.
And people everywhere have every right to discuss whether Madison should spend purportedly scarce taxpayer dollars on this project.
Yes, you are trying to cause a rift when you use terms like "Mark Lee and the country club crowd".
So what does that claim have to do with the merits of what Mark Lee and the country club crowd are proposing?
It's really too bad...
Hey, don't try to defuse the question with non-responsiveness. The main question here is the merit of floating a quarter-million-dollar loan to a country club compared to other possible uses of tight taxpayer dollars, not my devious plan to foment Jim Casy's revolution with a few blog posts.
If this thing gets passed by the City Commission, it will be known as the 5-C-Gate. City Commission Country Club Cronyism Gate.
Mark Lee is an acquaintance and I think he is a great guy. I know and like many that use the Country Club members. But, I have a few problems with this request.
1. I have been told that the LAIC is what is used for "economic development" and any money given out for those purposes of economic development by the city is usually done through the LAIC. The city is not in the business of giving direct loans, especially 0% interest loans. With all those millions collected for the first Forward Madison program, you could have had a couple new clubhouses.
2. I have been told by the City Commission that there is no money available, not even to help our School District, which was one of the greater priorities in our community. Now that we are moving forward on fixing MHS, our community must move onto fixing our existing infrastructure and expand our tax base by adding retail options and keeping shoppers in Madison.
3. Madison has many priorities that it should focus on first, like revitalizing downtown, giving its employees raises, fixing streets, pave all of our streets in town (yes, some are still gravel), etc. etc.
4. We were told by some in this community that the School District facility issues were because of "maintenance". How come the Country Club management hasn't been doing their "maintenance"?
5. To even consider something like this, there would need to be rules established. Once you start loaning money to one group, it will unlock the flood gates and everyone will be begging for money. What will be the selection criteria?
This is all around a bad idea. If I were the Mayor, I would tell them to go talk to the LAIC and the other Banks. Do a cost/benefit analysis, business plan, etc. and let those lending institutions decide whether or not the Country Club is in a position to repay this loan. If they can, I am sure the banks will make the investment. It sounds like they are trying to get a 20% down payment and will get the rest from banks and private donations. Well guess what.. the City is NOT private mortgage insurance.
Plus, there are other options for golfing in Lake County. If we donate to one Golf Course, why not the others? And please, don't come back at me with the "its the only 18 hole tournament style course in the county". I still don't care. Show me exactly what you contribute to the local economy, real numbers. Take your economic development issues to the LAIC where they like fuzzy math. We outsource all business development to the LAIC and do not deal with economic issues at City Hall.
If you have enough money to golf, you have enough money to pay higher dues and fix your own clubhouse.
We have real issues to deal with in this town. There are families struggling to find jobs, struggling to buy enough food, and pay their heat bills. Fixing the clubhouse where you "have a few drinks" before going out to hit golf balls IS NOT A PRIORITY. There are plenty of places in town to have a steak and a beer after you are done golfing. Believe it or not, you can have a golf course, without a clubhouse.
I would love to belong to the MCC, but at an estimated rate of $1700 per year for a family living in Lake County, it is a little cost prohibitive for me. For the curious, the costs are: $962.00 for a family living in Lake County, $195.00 for a "User Fee", $495.00 for cart lease, and $50.00 for "Stock Purchase".
Now consider that unless I golf in the Men's league on Mondays, I am limited to being able to use my membership 5 out of 7 days a week, or 71% of the time. Now wait until the tourney season is in full swing. Almost every weekend there is a tourney. I now get to adjust my golf time to when I MIGHT be able to get on the course. I guess it is true, membership has its privileges.
I have many friends that belong to the MCC. More power to them. Re-address your wants by the tune of $250,000. Lower your fees, drop the exclusiveness, and allow more people to enjoy the course, and in turn spend their money there.
If a member of MCC reads this, and would like to correct my numbers, please do. The numbers I used were taken directly from your on-line membership application.
The real issue is that this is a facility that is outside city limits and is not required to pay city sales tax. Economic development is not a few server jobs in the clubhouse. After reading the letter from Mark Lee, I am having a real tough time understanding how this would spur economic development. Is he trying to say that these business owners will not move to or start a business in Madison unless we have a nice Country Club? If that is the case... take them to the Lakes Golf Course by Lake Madison, that is a new and modernized facility.
I don't think any of the commissioners are crazy enough to move forward with this. If they don't vote no, it will come back to haunt any commissioner looking for re-election. There are enough statements on the record regarding the current state of our city budget that any give-away like this will end up being a central issue in the upcoming campaigns.
I really cannot believe this letter talks about the "youth-program". What in that clubhouse teaches or involves helping youth learn to golf?
I have only been in that clubhouse a couple of times, but most of what I see going on is eating, drinking, and socializing. There are plenty of places to get that done in this town.
If we want the city to get involve in a special project consider extending north 14th or 15th(section line)street to hwy 81 as thru street to more safely bring school/college/hospital traffic to NE Madison. 9th street is a tragedy waiting to happen.
If that is a motion, I second it.
The motion is seconded, all those in favor say I,...
The motion passes. Construction on NE 14th and 15th will begin tomorrow.
:)
As long as we are at it, lets extend Division Ave north to NE 15th St. Right now Washington Ave is the only option to go north in that area.
Residents on the east side of town (by the airport) I was told were promised a through street years ago.
I just got home for supper: any word yet on what the commission said tonight?
Ashley, it would be very interesting to hear this issue and economic development in general discussed seriously in the next campaign. Can we find any candidates sufficiently well-read and articulate to lead that discussion beyond a few hasty soundbites in response to the Chamber's canned questions at the broadcast forums?
And those motions: now you're talking, guys! You're conducting the kind of running town hall the Internet can be so good at. Now if we could just get legal recongition and authority, we could get everything done. :-)
Ashley, you bring up a really good point about not needing a fancy clubhouse to golf. The real public benefit is the golf course. We're being asked to fund a bigger place to schmooze and booze. Ah, economic development....
There isn't any logical justification for agreeing to this no-interest loan request. A number of reasons have already been given above. In addition, city coffers would take yet another hit by not earning interest on those funds once they're withdrawn from a reserve account somewhere.
Furthermore, a Madison resident appearing before the commission during one of the sidewalk project discussions a couple of years ago asked, specifically, if the city would be willing to loan him some money to get the sidewalk installed. He was told the city is not in the business of making loans.
If they don't provide loans for neighborhood improvement/safety-oriented concerns such as installing sidewalks, they certainly won't do so to dress up the clubhouse at the Country Club.