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Management change for Tempe's Ken McDonald GC heads to hearings, vote

Posted 5/1/23

A proposed public-private partnership for the operation and maintenance of Ken McDonald Golf Course will come before the Tempe City Council during two meetings in May.

The city is considering …

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GOLF

Management change for Tempe's Ken McDonald GC heads to hearings, vote

Posted

A proposed public-private partnership for the operation and maintenance of Ken McDonald Golf Course will come before the Tempe City Council during two meetings in May.

The city is considering entering into an arrangement with CourseCo to assume operations and maintenance for the course, pro shop and clubhouse starting July 1. The course is at 800 E. Divot Drive, off Rural Road between Guadalupe and Elliott roads.

Under the agreement, the firm would share revenues with the city including a $50,000 annual rent payment and a portion of golf, food and beverage revenues.

The anticipated payments to the city over the initial 20-year lease term would be $10.3 million, according to a city release.

The first public hearing will be Thursday, May 4, during the council’s regular meeting, and a second hearing and vote is scheduled for May 18.

Community members can attend and offer input virtually or in person. For more: tempe.gov/clerk.

The agreement outlines two future improvements to the property - a new irrigation system and the renovation of the clubhouse.

The city will fund a new irrigation system up to a maximum amount with CourseCo responsible for excess costs. CourseCo and the city will each contribute 50% toward the clubhouse renovation, up to a maximum amount for the city’s contribution, the release stated.

 CourseCo also will be responsible for other future capital improvement projects and contribute a percentage of annual golf revenues into a dedicated capital improvement account, city officials said.

“CourseCo does not currently propose any changes to the course footprint,” the release stated.

The customer service operations at Tempe’s two golf courses have been privately managed through vendors for years.

The course will remain under city ownership.
CourseCo will honor Golf Tempe Loyal-Tee Cards through the end of 2023 and will maintain current rates through June 2024, city officials said.

Starting in July 2024, Tempe resident and association rates will be capped at a $2-per-year increase.
 Founded in 1989, CourseCo currently manages the operations of more than 40 golf courses throughout the Southwest. Ken McDonald would be its first course in Arizona.

We’d like to invite our readers to submit their civil comments, pro or con, on this issue. Email AZOpinions@iniusa.org.