THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Wednesday, February 1, 1995 TAG: 9502010444
SECTION: LOCAL PAGE: B5 EDITION: FINAL
SOURCE: BY TONI WHITT, STAFF WRITER
DATELINE: PORTSMOUTH LENGTH: Medium: 84 lines
The city is close to finalizing a contract to lease Sleepy Hole Golf Course to a private company in exchange for $100,000 annually for rents, a portion of the profits and promises to spend $1.5 million in improvements to the facility over the next 20 years.
The city revealed the preliminary contract Tuesday night. The contract is with J.S. Baar, a partnership involving Jim Armentrout, who manages the course, and Ronnie Rountree, president of Rountree Construction in Suffolk.
The council will invite public comment on the lease on Tuesday at 7 p.m.
The contract would begin April 1. The lease would include the course, Sleepy Hole Park and Obici House, which sits on the 18th hole and is rented for parties, wedding receptions and golf events.
The city, which lost $77,000 on the property last year, stands to gain cash from the lease but would no longer oversee the course.
The operators would be free to set course fees and determine the course's policy on carts. The city has ensured that the course will remain open to the public, and the lease contract prohibits discrimination.
Armentrout said he has not yet decided the golf fees.
``We haven't gotten it completely hammered out,'' Armentrout said. ``They will be a whole lot less than speculation. They'll be comparable to the other facilities in the area; we're not going to price ourselves out of the market.''
Armentrout said golfers would be required to rent golf carts during certain times of the week.
Deputy City Manager H. Timothy Little said he expects the course fees to increase gradually.
``The contract allows for it to operate as a business enterprise,'' Little said. ``The more revenue they receive, the more the city receives.''
Under the contract, Portsmouth residents would receive an 18.5 percent discount on long-term passes to the course.
``I think everyone will be very pleased with the result,'' Armentrout said. ``We're putting $1.5 million in the facility. With that in mind, people can reasonably expect to pay a bit more. Our real intent is to make Sleepy Hole like everybody thought it could be all along.''
The operators would be required to submit plans for all construction improvements to the course.
Last year the city received nine bids to buy or lease Sleepy Hole, Bide-A-Wee or both city-owned golf courses. After Portsmouth citizens inundated the council with calls demanding that the city hold on to Sleepy Hole, the council decided to lease it.
Council members chose to negotiate with J.S. Baar because the company's proposal included extensive plans for renovations to the facilities, including the golf course, Obici House and the adjacent park. Several council members said they were enticed by the increased value to Sleepy Hole in the long term.
The estate, which is located in the Suffolk city limits, once belonged to Amedeo Obici, founder of Planters Peanuts.
According to the preliminary contract, the city would receive a portion of the profits, ranging from 2 percent to 5 percent, on greens fees, golf cart rentals and rentals of Obici House, as well as fees for the park. In addition, J.S. Baar has agreed to pay $100,000 annually to lease the property. Rents will increase to $122,000 after five years, $148,000 for the following five years and $185,000 for the final five years of the contract.
The total estimated benefit to the city over 20 years is $5.6 million.
In addition to the rental income, the city, at the end of the lease, will have a much-improved golf course and park, Little said.
``The city is protecting and enhancing its long-term resources,'' Little said.
He said that he expects work on the golf course to begin immediately and that Armentrout hopes to finish improvements to the greens before April. by CNB