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City Council walks back veto for Lakeview Golf Course improvements, sparking deficit talks - Mitchell Republic

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MITCHELL — About a month after the project was vetoed by Mayor Bob Everson and honored by the Mitchell City Council, the latest bid for Phase II of the Lakeview Golf Course improvement plan received the council’s approval.

The $670,300 bid — the lowest bid of the two that were submitted — for Phase II of the master plan came in roughly $180,000 over the budgeted amount, which played a role in Everson’s decision to veto the project on July 5. On Monday, Aug. 7, golf course board members and project supporters made their case to see Phase II come to fruition.

Golf and Cemetery Board President Jeff McEntee said the city’s 18-hole golf course hasn’t undergone any major renovations in the past 40 years and that it’s time for an upgrade. Phase II will renovate the back nine of the course, eliminating the uphill par-3 11th hole and rebuilding a new par-3 between the current 14th and 15th holes.

“The technology, the equipment and golfers have changed in the last 40 years, but the course really hasn’t. We’re trying to bring it up to date, be more competitive, more playable and a better all-around course,” McEntee said.

Councilman Dan Sabers, the former Lakeview clubhouse manager who has been a leading advocate for the latest portion of the project since it was presented during the fall 2022 budget hearings, said the upgrade is vital for Lakeview to maintain its status as “one of the best” courses in the state.

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“It’s in need, and it’s time to upgrade. The golf course is considered one of the best. The South Dakota Golf Association likes Mitchell with the tournaments they host here,” Sabers said.

Former council member and avid golfer Steve Rice joined the discussion during Monday’s meeting and advocated for the project. Rice pointed to the steady use the course sees each year from surrounding communities and golf programs such as Parkston High School as examples of the impact Lakeview has in the region.

“Lakeview Golf Course is such a unique quality of life amenity that you have all the surrounding high schools and our high school coming to Mitchell to practice and play and even host tournaments. I smile every year when the Parkston High School invitational is held in Mitchell (at Lakeview Golf Course),” Rice said.

Girls golfers warm up at the driving range before the 2016 Class AA state girls golf tournament at Lakeview Golf Course. (File photo)
Girls golfers warm up at the driving range before the 2016 Class AA state girls golf tournament at Lakeview Golf Course.

Mitchell Republic file photo

Opposing the project was Dwight Stadler, a Mitchell resident, who urged the council to consider what its priorities are amid the city staring down a potential $25 million or greater lake dredging.

“We've got an issue with Lake Mitchell. The thing is what has a priority? Lake Mitchell or the golf course? That’s something to think about when you’re prioritizing your expenditures,” Stadler said.

Ahead of the July 5 veto, Everson also penned a letter explaining his decision to veto the first bid, writing there are “more important projects” facing the city at this time, though he didn’t specify another project.

Deficit spending emerges as concern

The golf course is set up as an enterprise fund, which means it’s intended to financially support itself. During the July 5 council meeting, Everson said the city has had to transfer funds to the golf course in excess of $500,000 to make up the deficit.

The golf course isn’t the only city entity that’s an enterprise fund operating in a deficit. The Corn Palace, for example, has operated in a deficit for decades.

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As one of the two council members who voted against approving the project bid, Mike Bathke questioned whether golf course leaders have made the necessary steps to lessen the deficit. Council member John Doescher joined Bathke in voting to reject the bid.

“You are an enterprise fund and you’re supposed to be able to support yourself. If my business couldn’t support itself, either I raise my rates or I close my doors,” Bathke said.

In response to the deficit concerns, McEntee sought to differentiate Lakeview Golf Course’s operations from other sports with city-owned facilities and noted other respective sports like baseball and tennis have associations that raise money to bring facility improvements. With no association-led fundraising mechanisms, McEntee said the only way for the golf course to afford making the improvements would be raising membership fees and other fees to “a rate the average golfer wouldn’t be able to afford.”

“The golf course is its association. You cannot step foot on Lakeview Golf Course without paying a fee — other than putting and practice greens. I felt all along the benefits from that course don’t stop at the parking lot,” McEntee said.

McEntee said the golf course’s rates are similar to other municipal courses throughout the state, which is done by design to keep rates equitable and competitive.

Council member Susan Tjarks previously suggested golf course officials explore potential fundraising opportunities to offset Phase II improvements and covering the new fleet of golf carts Lakeview recently purchased.

McEntee said the board has discussed an annual fundraising tournament for course improvements, but he indicated it would provide minimal benefits of $10,000 to $15,000 because of the costs involved with closing the course for public play.

Sam Fosness joined the Mitchell Republic in May 2018. He was raised in Mitchell, S.D., and graduated from Mitchell High School. He continued his education at the University of South Dakota in Vermillion, where he graduated in 2020 with a bachelor’s degree in journalism and a minor in English. During his time in college, Fosness worked as a news and sports reporter for The Volante newspaper.

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