After several months of negotiations, a contract for the operation of the Warren Valley Golf Course, which is owned by the City of Dearborn Heights, failed by a 5-1 vote.
Councilwoman Nancy Bryer voted yes, Council Chair Dave Abdallah, and Councilmen Mo Baydoun, Bob Constan,Ray Muscat, and Tom Wencel all voted no.
The contract, which called for a deal for both the Issa Brothers, LLC and Revive Golf Management, LLC to operate both the golf course and the banquet facility, has been under negotiation since March.
As it sat at the end of the meeting, the contract was no longer being considered, but several councilmembers said they would be willing to still consider the Issa Brothers contract with a few small changes. A representative from the Issa Brothers said at the meeting that he wasn’t interested in renegotiating the contract again.
The golf course has been closed all season, due to the conditions that it was left in after flooding last year.
The contract was set to run for ten years, with up to two five-year extensions. The tenant had the sole right to renew the contract or not for each extension.
Under the proposed terms, the rent would be $5,000 a month for all 20 years. The city would also get 10% of gross revenues on the golf course, and 10% of net alcohol sales. The city would not get profits from the banquet facility otherwise.
The previous contractor canceled the deal between the city and them earlier this year, and the course has remained inoperable since then.
The council and residents have been urging the city administration to find a new contractor for months, but as the course sits vacant, the conditions have worsened, causing the contract to be modified several times before it was even brought to the Council.
Revive Golf Management who would be the subcontractors to the Issa Brothers, had offered to volunteer time for the next nine months to help with renovations and fixing the course, despite the contract not starting until April 1, 2023.
City Attorney Gary Miotke clarified that while it would be unpaid work for the next several months, it would not be “volunteering,” but contractual obligations.
Wencel, who has been a staunch supporter of getting the golf course re-opened, disagreed with the contract, partially because the city is responsible for huge sums of money to invest in the course, and banquet facility towards renovations.
Abdallah said the “game changer” was how bad the condition of the property is.
“I know real estate,” he said. “I’m no golfer, but I know real estate. It’s not in good condition.”
Wencel said offering the contract to the Issa Brothers, with it being significantly different from the original Request for Proposal, is unfair to others who may have bid on it.
City Engineer Ali Dibb said the equipment they need to acquire was just as bad in March as it is today, and needs to be replaced before the facility can go back into operation.
The contract called for the Issa Brothers to invest about $3.4 million into the property. The city is expected to spend between $1 million and $1.7 million to get the equipment required to open, and some labor related to renovations.
Chief of Staff Marianna Hernandez said that some of those funds could come from American Rescue Plan funds, which the city has about $24 million to spend, about $12 million of it to spend this year. Those funds are restricted in how they can be spent, but with Warren Valley being a flood plain, should be included in approved spending.
Both Miotke and Abdallah said they respect the owners of Issa Brothers, having looked into their other businesses.
Muscat said he would support funding the golf course through a millage, while Baydoun said he would not support such action.
Designed in 1922 by Scottish golf architect Donald Ross, Warren Valley features two, 18-hole courses and a clubhouse, including a pro shop, the Ross Room Bar & Grille, and a banquet center that can accommodate up to 300 people.
The Warren Valley Golf Course is located at 26116 W. Warren St. in Dearborn Heights. More information can be found at warrenvalleygolf.com.