With River Road Golf Course consistently operating in the red, a new report bound for city politicians this week recommends the course's closure.
Compiled by consulting firm KPMG as part of a standard service and program review on behalf of the city, the report notes the east-end greens saw an operating loss of more than $71,000 in 2018. It has also experienced a 37.5 per cent decrease in the number of rounds played since 2012.
The city currently operates three courses - River Road, Thames Valley, and Fanshawe. River Road, which was opened in 1992, is the youngest of the three courses and has found itself on the chopping block before.
In 2011, city staff recommended its closure after the municipal golf system marked its first operating deficit in ten years. However, River Road was spared following community outrage over the idea. Instead, politicians opted to rejig the business plan allowing the three city-owned courses to share revenue. This allowed the more profitable two courses to bail out River Road when it fell into the red.
That system worked well until 2018, when River Road recorded a loss larger than the profit generated by Thames Valley and Fanshawe.
The report goes on to state the city's golf operations are at risk of additional financial losses due to an anticipated $6-million capital funding shortfall over the next ten years. As such, four options are provided in the report aimed at reducing the size of the city's golf system.
- Option 1 - close River Road Golf Course.
- Option 2 - close River Road and the 18-hole Quarry Course at Fanshawe.
- Option 3 - close River Road and the nine-hole Hickory course at Thames Valley
- Option 4 - close River Road and both the Quarry and Hickory courses.
KPMG's report, along with city staff's recommendations, go before the strategic priorities and policy committee on Tuesday.