Siloam Springs Country Club asks city to allow alcohol sales

Leasing space for a bar and grill may help club survive financial struggles.

If something doesn't change, the Siloam Springs Country Club won't survive much longer due to financial struggles.

A change in the club's lease agreement with the city could be a start. Club president Bill Adams asked for an amendment to its lease that would allow the sale of alcohol -- beer and wine only -- on the premises. That would help the club be more competitive with other nine-hole public courses in the area that do allow alcohol like Brush Creek Golf Course in Springdale and Flint Ridge Golf Course in Kansas, Okla.

"We know there is not enough items in this one item to right our ship, but it's definitely a step in the right direction," Adams said. "If the trend continues the way it is and we can't get some different revenue options, it doesn't look good that the course will survive. A few years maybe, but it's not a good overall, long-range outlook."

Adams said he was encouraged by the open-mindedness of the city board of directors while speaking to members at a workshop before its Dec. 5 meeting. In the past, directors were not as open to such a venture, but current board members have been pushing more quality of life initiatives. Many said it's imperative to keep a golf course in Siloam Springs.

Board Director Amy Smith said her husband plays regularly at the club and that her daughter was one of 52 participants in this past summer's program put on by The First Tee of Northwest Arkansas at the country club.

"I'm glad you're here," Smith said to Adams. "My husband has been chewing my gluteus maximus up one side and down the other because he's so adamant that the country club must survive and flourish."

Adams outlined the club's financial issues with the board. There's a 15-plus-year-old bank loan of nearly $115,000 the club "pays down some" during its busier summer months, but then its builds back up during the slower winter months. Cart sheds near the road are unsightly and in need of a face-lift and repairs. Equipment -- such as mowers and a tractor that's 35-years-old -- needs regular, costly repairs to keep going and should be replaced.

"Our maintenance cost in order to keep it running and above ground is off the board. And we just don't have the funds to replace it," Adams said. "It's like the guy who's got the old Chevy and he's got to go to work. He cannot afford to get a new car but you're working on it every weekend to try to get there Monday.

"That's where we are with most of our equipment."

Payroll is the biggest expense but has been trimmed to the bare minimum. Adams said three, full-time salaried employees make about $7 per hour because they work an average of 10 hours a day during the 360 days per year the course is open.

"I don't think we can do it any cheaper," Adams said. "I wish we could, but I don't see any way we can cut that expense."

To increase revenue, Adams said the club's board of directors has voted to increase dues for its 66 members and also eliminated its usual winter discounts for playing a round. Sales tax also is now being charged on top of green fees instead of taxes being included in the price, so that will save the club an estimated $10,000-$12,000 a year. Increasing greens fees beyond that likely will lead to fewer golfers playing the course, so that's an option club members do not believe will be beneficial.

Adams said something that would help would be allowing the club to lease a 1,000-square-foot room to a business for a bar and grill. It's a space that's not currently in use and the club could charge a minimum of $750 a month for a business to lease the space. Several parties have shown interest in the past two years, but backed off because alcohol sales were prohibited.

"We don't want to go into the alcohol business ourselves," Adams said. "We're not looking to put up 15 neon signs, and advertising, 'Hey, we've got alcohol now come see us.' We're not looking to put in a 1,000-foot bar out there. We'll have an agreement where they'll serve food out there, too.

"We're not looking to put in a dive or a joint. I want it to be nice out there."

Board Director Carol Smiley said she's visited many courses her brother-in-law designs and doesn't recall any that didn't allow alcohol. She asked Adams if Siloam Springs was one of the few in the area that didn't allow alcohol sales, and Adams said it was the only one in the area that prohibited alcohol.

"Since this is the only course that we have in the community I think it's important that it stay flourishing and I hope we can help you in some way," Smiley said.

Director Bob Coleman wanted assurances alcohol wouldn't mix with youth events, such as the First Tee program or junior tournaments like when the Siloam Springs High School team plays and practices there. Adams said he would have no problem with shutting down alcohol sales during those times if that's what it took to get an amendment approved.

Allowing alcohol would simply be an "added amenity" that would increase revenue and help the course remain competitive with other courses in the area.

"I think play also will increase if we have that amenity to offer," Adams said. "I won't even begin to estimate how much, but I think it would definitely increase play on our course and some tournaments as well.

"There are people who shy away from having a tournament on our course simply because we cannot allow alcohol. They want to play and have a beer afterwards, and we want to be able to fill that void."

Mayor John Mark Turner said he "appreciated" the support Adams had from a large group of its membership that attended the meeting. Turner said because an amendment to allow alcohol on the golf course wasn't on the board agenda, it wouldn't be able to take any action on the request at this time.

Other directors sounded as if they would be in favor of approving an amendment if and when one is placed on the agenda. Director Brad Burns pointed out that the bowling alley allows alcohol sales even though "kids go there," and said he didn't see any reason why the golf course shouldn't be allowed to do the same.

"It's a no-brainer," Burns said. "I think it's common knowledge that when you golf, you would like to have a beer and perhaps even smoke a cigar.

"It's called golfing and relaxing, so I'm buying it."

General News on 12/13/2017