Group to Study Country Club Agreement with Town
NEWINGTON - A study group will be assembled in order to discuss the restructuring of an agreement between the Town of Newington and the local Indian Hills Country Club.

       The Town Council opted to go in that direction with a 6-3 vote at its last meeting.

       The club has been feeling the impact of golf’s diminishing popularity. Declining membership, consistent with state and national trends, has meant less money for maintenance and a significant decline in the value of the golf course itself. The property is owned by the town, which rents it out to Indian Hills.

       â€"The most significant asset is the golf course itself,” said Town Attorney Peter Boorman during the meeting. â€"We must take the necessary steps to protect that asset as we explore additional options of how to model this [agreement] for the future.”

       What those options will be are unclear, at least for now, but Boorman expects the discussions to take place over the course of a one-year period.

       â€"All alternatives are on the table,” he said. â€"[Indian Hills] certainly want[s] to be part of the solution.”

       Although Indian Hills is currently â€"holding its own” as far as membership goes, at one point its numbers had dropped from 275 to around 200, according to Boorman. Meanwhile, the course’s property value has diminished from it’s 2005 $4 million to $2.5 million, he said.

       In 2011 it was assessed at around 50 percent of its original $4 million value. As of last year it was down to $3.2 million--a figure that was later deemed to be too high, prompting the change to the current value. Boorman and Juda said that they expect that number to drop again next year.

       Its current $2.5 million value brings the rent down to an annual $62,650, or $5,220 per month. The club currently owes the town $22,324 in back rent. That will be reduced by $12,000 through the next year as long as Indian Hills continues conditions under a modified lease agreement that is allowing non-member town residents to golf more frequently while maintaining previous rates.

       Around the country, similar golf courses have seen their values drop to between $1.6 million and $1.9 million, Boorman said.

       When the issue was presented at the Council’s previous meeting, Councilor Maureen Klett asked if a full audit was conducted to determine the value of the property, to which Boorman and Town Assessor Steve Juda said that one was not.

       She raised that concern again at the next meeting.

       â€"It wasn’t an audit, so I don’t know if any other councilmember feels comfortable saying we’re going to forgive this,” Klett said. â€"I don’t think we have a good handle on it.”

       But the auditors the town spoke to recommended an Agreed Upon Procedure, which details factors driving the projected value for a more comprehensive look at what challenges the club faces, Boorman said.

       Councilor Chris Banach asked what the financial impact on the town would be if the course folded.

       Golf course maintenance typically costs around $1 million per year, Boorman said.

       â€"It would include the cost of additional hires, additional equipment and expertise that we just don’t have,” Boorman said.
MORE NEWINGTON NEWS  |  STORY BY MARK DIPAOLA  |  Aug 19 2015  |  COMMENTS?