New management takes over July 1 at Tempe’s Ken McDonald Golf Course

Tempe’s Ken McDonald Golf Course soon will come under the management of a California-based company that oversees more than 40 courses throughout the Southwest.

The Tempe City Council voted May 18 to approve a lease agreement with CourseCo to manage the course, 800 E. Divot Drive, off Rural Road between Guadalupe and Elliott roads. The city will retain ownership of the course.                                                                             

Starting July 1, CourseCo will be responsible for the operations and maintenance of the golf course, pro shop and clubhouse, according to a city release.

The firm will 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 are $10.3 million, officials said.
 
“Ken McDonald is a beloved course for many in the Tempe community, and we look forward to continuing that legacy with this new partnership,” Tempe Community Services Director Craig Hayton said.

“CourseCo has extensive experience in managing public golf courses, and we’re excited to see what they bring to the course for both golfers and non-golfers of all ages.”

The agreement outlines two improvements to the property.

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 clubhouse renovations, up to a maximum amount for the city’s contribution.

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, according to the release.

The city will not be responsible for operations, maintenance or additional improvements other than those already specified.

Tempe officials said CourseCo currently does not propose any changes to the course footprint.

 In addition, CourseCo will continue to honor Golf Tempe Loyal-Tee Cards through the end of 2023 and will maintain current rates through June 2024.

Starting in July 2024, Tempe resident and association rates will be capped at a $2-per-year increase, according to the agreement.

CourseCo was founded in 1989, and the Ken McDonald course is its first in Arizona.

“We look forward to investing in infrastructure and expanding programming all while focusing on providing the best possible golf course conditions and hospitality to Tempe residents and visitors alike,” CourseCo president and CEO Michael Sharp said in the release. 

A public-partnership agreement with Grass Clippings for Tempe’s other course, Rolling Hills, was passed by the council in March.

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