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City of Tempe News - Proposed Rolling Hills Golf Course Management Change, Improvements Head to Tempe City Council

Government and Politics

February 11, 2023

From: City of Tempe

Proposed Rolling Hills Golf Course management change, property improvements head to Tempe City Council public hearings and vote

The Tempe City Council will consider a proposed public-private partnership for operations and maintenance at the city’s Rolling Hills Golf Course during a public hearing at its Feb. 16 Regular Council Meeting. A second public hearing and Council vote is scheduled for March 2.
 
The proposed lease and development agreements are available here. Community members can attend and offer input virtually or in-person in Council Chambers, 31 E. Fifth St. Visit tempe.gov/clerk for details.
 
The agreements would allow the applicant, Grass Clippings, to assume operations and maintenance for the Rolling Hills Golf Course, pro shop and clubhouse starting July 1. The firm would receive all revenues for the course and pay rent to the city in the amount of $250,000 annually plus an annual 2.3% adjustment. The anticipated payments to the city over the initial 30-year lease term would be $9.7 million.
 
Rolling Hills is located at 1415 N. Mill Ave., near Papago Park.
 
The agreement outlines future improvements to the property, including: lighting the course and practice range; adding a family activity lawn and large video display; constructing a hilltop bar; and improving the practice range, clubhouse, pro shop and patio bar. The existing course footprint and layout will remain, with minor modifications on hole nine to accommodate the new family activity lawn.
 
The city will not pay for operations, maintenance or improvements at the course during the lease term. Grass Clippings would be responsible for all development costs with an anticipated completion by Jan. 1, 2025. The course will remain open throughout the improvement process, with limited impacts to play.
 
The customer service operations at Tempe’s two golf courses have been privately managed through vetted vendors for many years. The proposed agreement for Rolling Hills represents the first time maintenance and capital improvements also would be privately managed. Rolling Hills will remain under city ownership.
 
The agreement outlines discounted golf rates for Tempe residents, veterans, juniors and members of the Rolling Hills Men’s and Women’s associations. Proposed rates include:
 
Tempe Residents & Rolling Hills Men’s and Women’s associations* 

- $35 (Sept. 1 – May 31)

- $20 (June 1 – Aug. 31)

- Rates may be increased each year by CPI or 2.3%

Public rates

- $65 (Sept. 1 – May 31)

- $35 (June 1 – Aug. 31)

- These are currently contemplated rates for the first year of operation and may be adjusted based on market, demand and cost of doing business.

Veterans – 50% discount
Juniors – 75% summer discount; 50% winter discount. Free on Sundays with a paying adult.
 
Background
In 2021, Tempe issued a Request for Proposals for both of Tempe’s municipal golf courses to gauge business interest in funding golf improvements and operations. In March 2022, the City Council unanimously authorized staff to begin negotiating with Grass Clippings, Inc. for Rolling Hills Golf Course and CourseCo for Ken McDonald and/or Rolling Hills golf courses.
 
The goals of the public-private partnerships are to ensure the long-term viability of public golf, address capital improvement needs at the courses, provide revenue to the city, and expand golf and recreational amenities to wide and diverse audiences.
 
A public engagement process to gather community feedback on the Grass Clippings at Rolling Hills plan included two open houses, an online survey and stakeholder meetings. The current draft agreement reflects the feedback received from the community during that process.

For more information, visit tempe.gov/GolfPartnership.