Gurnee buys Bittersweet Golf Course for $525,000

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Updated: June 5, 2011 4:47AM

The village is now the sole owner of Bittersweet Golf Course.

Village trustees voted Monday to purchase the 21-year leasehold of the financially troubled course for more than $525,000.

They also approved an agreement with Starbird (Links) Golf Management to oversee its business operations for this year’s golfing season.

Trustees unanimously agreed that the open space near Grand Avenue and Almond Road on the west side of the village “was of great value to the quality of life of the citizens of Gurnee” and worthy of the village’s best interest to save the golf course built in the 1990s and nestled among high-priced homes.

Gurnee has owned the land the golf course is located on, while Starbird Golf personnel have been managing the 18-hole course for the past two years.

Trustees also authorized the unrestricted transfer of $710,000 from the General Corporate Fund to the Golf Course Fund.

The purchase agreement includes a cash payment of $385,000 to F.M. Bogey, LLC, a limited liability corporation created by First Merit Bank for the sole purpose of holding title to the foreclosed leasehold.

The village also will pay about $119,000 in outstanding real estate taxes to the Lake County Treasurer’s Office and would release all outstanding water bills owed to the village.

In addition, the village will also pay some closing costs, including a $21,058 survey fee of the grounds, and some pre-paid green fees and deposits previously collected by the seller.

Terms of the one-year management agreement to Starbird Golf includes:

All employees of the golf course will be employees of Starbird Golf.

All revenues will be deposited into an account designated by the village “to ensure full and accurate accounting.”

The agreement provides for a fixed management fee of $40,000 with the possibility of Starbird Golf earning an additional 10 percent incentive management fee if golf course revenues exceed course expenses. Additionally, 20 percent of any pro shop profits would be payable to the Village.

The agreement also provides for the establishment of a $100,000 Golf Course Operation Fund to repair facilities, and cover other non-employee related expenses that might be incurred this year.