May 19 -  New public-private partnership brings improvements, operations change to Ken McDonald Golf Course

April 28 - Proposed Ken McDonald Golf Course management change heads to Tempe City Council public hearings and vote

March 3 - Improvements coming to Rolling Hills Golf Course as part of new public-private partnership with Grass Clippings

Feb. 10 - Proposed Rolling Hills Golf Course management change, property improvements head to Tempe City Council public hearings and vote

On May 18, Tempe City Council voted to approve the lease agreement for Ken McDonald Golf Course. Starting July 1, CourseCo will be responsible for the operations and maintenance of the golf course, pro shop and clubhouse.  

The firm will share revenues with the city including a $50,000 annual rent payment and a portion of golf, food and beverage revenues. The anticipated payments to the city over the initial 20-year lease term are $10.3 million.

The agreement outlines two future improvements to the property. The city will fund a new irrigation system up to a maximum amount with CourseCo responsible for excess costs. CourseCo and the city will each contribute 50% toward clubhouse renovations, up to a maximum amount for the city’s contribution. CourseCo will also be responsible for other future capital improvement projects and contribute a percentage of annual golf revenues into a dedicated capital improvement account.

On March 2, Tempe City Council voted to approve the lease and development agreement for Rolling Hills Golf Course. Starting July 1, Grass Clippings will be responsible for the operations, maintenance and capital improvements of the golf course, pro shop and clubhouse. 

The agreement outlines $13 million in planned 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 firm will 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 are $9.7 million.

The lease and development agreements are available here. 

In 2021, Tempe issued an RFP for both of Tempe's Municipal Golf Courses. The goal of the RFP was to cultivate business interest in funding golf improvements and operations of Ken McDonald and Rolling Hills.

The City of Tempe invited all qualified and interested parties to submit offers for the capital improvement and operations of Ken McDonald and/or Rolling Hills golf course(s). The City sought creative, feasible proposals from firms that have a proven track record in the development, management and operation of golf courses, food and beverage, and associated amenities.

The goals of the public/private partnership are to:

• Ensure the long-term viability of public golf
• Address capital improvement needs
• Provide revenue to the city of Tempe
• Expand golf and recreational amenities to a wide and diverse audience

Tempe received six proposals. On March 3, 2022, City Council authorized negotiations with CourseCo and Grass Clippings for the management, operations, and capital improvement of Ken McDonald and Rolling Hills golf courses.

Timeline:

Issue Request for Proposal:  Complete
Evaluate Proposals:  Complete
Council Approval: Complete
Negotiations: Complete
Public Outreach:  Complete

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