Elephant Butte’s recent budget approval came with a warning from the state Department of Finance and Administration that “it needs to do something different” when it comes to the golf course, according to City Council Member Kim Skinner.
The City was already seeking a solution, issuing a Request for Proposals for total management of the golf course, restaurant and pro shop. The responses were to be considered at the Sept. 10 special City Council meeting.
Spirit Golf Management was the only respondent to the RFP. It is unclear if it is a Las Cruces company, which was the address on its response, or the large company with corporate offices in New Jersey and Maryland. The Council took no action on the RFP and has not made the company’s response public.
Skinner pointed out the response didn’t give any expense estimates, only revenue estimates. The RFP asked in particular for companies to explain how they would weather losses if expected revenues were not realized, or if they estimated losses within the first years of operation.
Skinner said “we are losing $25,000 to $30,000 a month” on the golf course operations. The city was given the golf course April 2017 by its prior owners. She also said the state Department of Finance and Administration “admonished” the city it will burn through all its reserve cash “this year” if it continues losing money at the same rate.
Mayor Pro-Tem Edna Trager wants “people with golf experience to look at” Spirit Golf’s proposal, beyond the “legal aspects,” which also need to be considered.
Skinner also wants a financial expert to weigh in on the proposal.