Several Jefferson residents have expressed concern in recent months about the possibility of remodeling the Greenewood Center to serve the dual purposes of a dining site for congregate meals and a clubhouse for the Jefferson municipal golf course. The plan would have allowed the current clubhouse to be razed and that property to be used for affordable housing, with senior residents in mind.
The proposed project is likely put to rest, at least for now. City engineer Jim Leiding at the Dec. 9 city council meeting presented a financial feasibility analysis of the project. “The financial end of the study doesn’t look very positive,” city administrator Scott Peterson said following the presentation.
The study shows total estimated cost of renovating the clubhouse to be $834,000. That includes $40,000 for a golf simulator, which Leiding noted is optional. The cost of site work around the clubhouse was estimated at another $482,845, including outdoor gathering spaces, golf cart access, pedestrian connectivity, and landscaping.
Land development of the proposed residential development was estimated at $1,179,975. The proposal is for seven lots to accommodate 14 residential units (a duplex on each lot), along with streets and utilities. The city would sell the land to a developer should the project move forward, with the developer paying the cost of installing streets and utilities. The feasibility study outlined the steps in that process.
A summary of costs and revenues shows a total estimated public investment for clubhouse renovation and site improvements at $1,316,845. Fourteen residential units would generate estimated annual property tax revenue of $41,680 to $72,940. If tax increment financing is used, that could general $456,386 to $798,676.
One goal of enhancing the golf clubhouse is to bring the golf course to a break-even point. The feasibility study shows that is unlikely, even if a golf simulator were installed to provide more year-round use.
The conclusions of the study state the proposed development “is not financially self-sustaining under current market conditions. Market-supported lot prices fall significantly below the break-even cost, and the golf course is projected to operate at an annual deficit even under optimistic revenue scenarios.”
The conclusion goes on to state, “The project’s viability depends on securing external funding sources, including grants, tax credits, and tax increment financing (TIF) revenue, and implementing operational improvements to reduce ongoing losses. Without these measures, the city of Jefferson would assume substantial financial risk, and the project may not be feasible.”
The full report is posted on the city’s website within the city administrator’s general information memo for the meeting.
