A sticking point is how to handle the negative returns in the first few years it will take to make the golf course, restaurant and pro shop profitable.
According to City Council Member Kim Skinner, the city lost $270,000 on the golf course in fiscal year 2017-2018 and $215,000 in fiscal year 2018-2019. The state Department of Finance and Administration approved Elephant Butte’s 2019-2020 budget for up to a $380,000 loss.
Spirit Golf asked the City to pay $270,000 this year and $100,000 next year to cover losses. The city countered with $300,000 to be paid in $12,500 monthly installments over two years.
Spirit Golf is proposing an eight-year management contract. Partners Richard Holcomb and Todd Barranger formed the company recently to respond to the City’s advertised Request for Proposals, with only Spirit Golf responding.
Holcomb and Barranger are in the process of buying Picacho Hills Country Club in Las Cruces. Their marketing plans include shared membership privileges and competitions among the two golf courses.
The partners are also partial owners of Falcon Golf Club outside of Phoenix, Ariz., which will also share mutual membership with Sierra del Rio, Holcomb said.
Holcomb and the partner’s grounds manager, Ron Mahaffey, said Sierra del Rio’s layout is extraordinary.
“It’s a mountain and mesa course with varied terrain. Sometimes you’re hitting uphill, sometimes downhill, sometimes around a blind corner. It’s a lot of fun to do that,” Holcomb said. “And the views!”
“It’s designed for all types of golfers with risk-reward in mind,” Mahaffey said. “In golf, you play the course, not against people. That and the views should make it one of the top courses in the state.”
During a presentation to the City Council, Barranger said Spirit Golf is expert at rehabilitating bunkers, their current state receiving the most complaints from golfers. He said they would evaluate them within the first 60 days, completing about four bunkers a month after assessment.
Revamping the website would be a top priority, Barranger said. “Marketing hasn’t happened,” noting that busloads from Mexico used to travel to the course in prior years. A drone video of all the holes and a social marketing campaign should also bring in El Paso, Las Cruces and Santa Fe markets, he said.
The partners have been managing Picacho Hills while the sale goes through. Barranger said large events they have turned away there can be brought to Sierra del Rio, which kitchen and restaurant accommodate many more people.