Council votes to acquire Pueblo del Sol golf course

At a special meeting on Monday, the Sierra Vista City Council voted to acquire the Pueblo del Sol Golf Course.

Within the past year, Castle & Cooke informed the City of Sierra Vista that it planned to cease operations in Sierra Vista and to eventually divest all Arizona assets. Although they had found commercial interest in purchasing the Tribute property, Castle & Cooke communicated that there was no private interest in the golf course, and they intended to end operations at the property if no other option became available.

Staff then proceeded to discuss options with Castle & Cooke regarding the golf course property and negotiated a purchase and sale agreement with them. In the agreement, Castle & Cooke agreed to give the golf course property and all its assets to the City in exchange for the forgiveness of an outstanding debt of $609,711.31. A 2020 property appraisal valued the Pueblo Del Sol Country Club at $1.6 million.

Castle & Cooke’s debt stems from a 1999 annexation and development agreement with the City that included construction of a sewer interceptor that the company agreed to reimburse the City for. Although the terms of the development agreement had been completed years ago, Castle & Cooke still owed an outstanding balance from the construction of the interceptor.

After accepting the property and forgiving the debt, the City will reimburse the wastewater fund, which is an enterprise fund. No cash will be exchanged and there will be no added burden to taxpayers for acquisition of this property.

With this vote, the City has now entered into a 30-day feasibility period where staff will complete an assessment and evaluation of the property. The feasibility period ends on Aug. 8, and the closing date will be Sept. 6.

Under Arizona state procurement law, if a city advertises and receives competitive bids for a service and includes cooperative language in its contract with the successful bidder, another city may contract directly with that company without going through the

bidding process itself. Since the City of Mesa competitively bid golf course management services and selected Paradigm Golf Group, the City is able to negotiate with them directly and is currently working on the details of a long-term contract. Paradigm specializes in taking over management of small courses and making them profitable, and has signed a letter of intent with the City to manage all functions of the property, including the course, pro shop, restaurant, meeting rooms, pool, and bar. The contract and management company have the potential to mitigate short-term losses for the City, and Paradigm projects healthy long-term profits.

In the meantime, the City will take direct management of the course. The City will maintain the property using a third-party company for groundskeeping, so there will be no added burden to City Parks staff. The City will also retain all current employees using a hiring agency during negotiations, which are expected to be complete within six months of the closing date.

Both Paradigm Golf Group and the City agree that the property has been underutilized and has great potential for profitability. Paradigm projects turning a long-term profit following a model they’ve already had success implementing at the Dobson Ranch Golf Course in Mesa, Arizona.

The City and Paradigm’s vision is to make it a fun and friendly course with expanded recreational resources that is open to the general public. The course and other facilities are in good shape and have potential for event and conference capabilities, which staff will be evaluating.

In addition to saving an important community asset, this vote fulfills two Strategic Leadership Plan objectives for Fiscal Year 2024-2025: finding opportunities to advance sports tourism and exploring the addition of City-owned conference space.

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Council votes to acquire Pueblo del Sol golf course