As Oro Valley continues to evaluate its options regarding the futures of the three town-owned golf courses, the council may be nearing a decision regarding the fate of one of them.
Ahead of Wednesday’s council meeting, representatives from Oro Valley, including town manager Mary Jacobs, and HSL Properties met to discuss transferring operations of the nine-hole Pusch Ridge course back to the development company.
That came after council members made a motion to direct staff to work with HSL to develop a “mutually acceptable lease for golf operations” for Pusch Ridge during the Sept. 4 council meeting. That motion was withdrawn and instead discussed during a Sept. 11 executive session.
Omar Mireles, president of HSL Properties, confirmed to the Star that his company is interested in re-acquiring the course four years after it was sold to the town, but cautioned that process is in the very early phases.
“We started the discussion, we stopped the discussion,” Mireles said, referring to talks that were held with the previous council prior to the election of a majority of the current town council. “The council gave guidance to the town manager to continue or reengage with those discussions. Those involve some of the neighboring HOAs. We just started with that.”
Even if a new lease isn’t negotiated, HSL would have the option to lease the golf course from the town should Oro Valley opt to discontinue golf and tennis at Pusch Ridge.
As part of the purchase agreement between HSL and the town, which became official in 2015, HSL has up to a year to notify the council that it is interested in leasing back the facilities. HSL can only make the decision once, and only use the space for three purposes — golf, open space and recreation, according to Jacobs.
HSL has a similar option with one of the town’s two 18-hole courses — Cañada. The company can lease back that course for only those three options, as well, according to Jacobs.
“Those are the only three things,” said Jacobs, who disclosed the upcoming meeting with HSL during the Sept. 18 council meeting, but declined to provide further details to the Star.
She acknowledged that HSL does “have some opportunities” regardless of what the town decides.
While there are concerns from some that HSL could redevelop the golf courses and replace them with residences, that would require a separate process that could require state approval, and potentially involve a public auction or a public vote, according to Jacobs.
Mireles said that, as of now, HSL is only looking to keep the Pusch Ridge golf course within the three criteria laid out in the sale agreement.
The council is scheduled to follow-up on a directive from Mayor Joseph Winfield, who offered his support for the 36-hole option should it meet certain criteria, including a maximum $750,000 subsidy from the town.
The golf courses are currently supported by a subsidy from a half-cent sales tax, although finances from the most-recent fiscal year showed good news for community center fund, which encompasses the subsidy along with proceeds from recreational facilities.
The fund exceeded staff budget by about $90,000 and expenses were under by about $325,000, according to town documents.
Jacobs and her staff were ordered to do an analysis of Winfield’s criteria, the results of which were posted online on Friday.
The analysis produced an action plan to keep the 36-hole operation open and meet most of the conditions.
It includes accepting $125,000 in contributions from two HOAs to subsidize the courses, rezoning the golf courses at council direction, relocating and reducing the size of the Overlook restaurant, and reducing the contract with Troon, the property manager, by 5 %.
“Staff will be prepared to review the evaluation and the potential action plans individually, as well at the Oct. 2, 2019, Town Council meeting,” the analysis states.
Winfield did not respond to multiple requests for comment from the Star.
Oro Valley Thrives director Jennifer LeFevre said residents are concerned getting rid of the 18-hole courses would plummet housing prices and remove a key community piece.
But they’re otherwise OK with giving Pusch Ridge back to HSL because it “has a place to go,” she said.
More importantly, they’re just looking for an end to a saga that has extended months and divided some in the community.
“I am hoping that this comes to a calm and reasonable end by protecting the 36 holes,” said LeFevre, who added she’s personally not in favor for a recall election should the council decide against their wishes. “I would love for this to come to a peaceful, reasonable end.”
