MLakes residents upset over changes to golf memberships
Mayor John Aaron argued the city is only following state law, which does not obligate future councils to honor lifetime memberships when a municipality runs a golf course.
That argument did little to pacify listeners, some of whom threatened to take their business to Delaware Springs Golf Course in Burnet unless the city reverses course.
Councilman Joe Summers urged his fellow council members to find a way around state law and to work with the lifetime members, most of whom are Meadowlakes residents.
“Why can’t we sit down and re-look at the ordinance? I believe as a community we need to work this out,” Summers asked his colleagues on the council. “We need to try and honor (lifetime memberships) the best we can. If it is against state law that we honor them — who’s going to turn us in?”
Aaron countered he would never recommend the council try to circumvent state law. When Summers’ motioned to revisit the ordinance, council members Bill Pickard, Laird Landis and Camille Sweigart sided with Aaron.
Meanwhile, tempers flared during the 90-minute meeting, with audience members charging the council violated a contract with lifetime members when the city purchased the course in March for $2.93 million from Mike McClung of MEM Hill Country Land Company Inc.
Resident and club member Pat Armstrong said the contract from the sale indicates the city agreed to honor the memberships.
“We have four basic rights and privileges with our lifetime memberships,” Armstrong said. “We pay no dues to play golf for life. And our survivor doesn’t have to pay dues either. Second, the membership can be transferred to a family member for $1,000 or the current initiation fee. Third, the membership can be sold to anyone for $5,000. And fourth, the lifetime membership will be honored and recertified by any purchaser (of the club).”
The lifetime memberships are already paid for and the city has agreed to honor the lifetime free green fees (year by year as the budget allows).
But according to the ordinance, officials said, the city no longer allows lifetime members to transfer or sell their membership to family members or other people. The ordinance also states “lifetime membership(s) are subject to the legal requirements and shall never be guaranteed to extend beyond a fiscal year. The city reserves the right to terminate or further restrict lifetime membership(s) as part of adopting subsequent budgets.”
Armstrong, however, introduced a sales agreement that said, “Purchaser agrees to re-certify and honor Lifetime memberships disclosed in writing prior to the execution of this Contract provided the Seller tenders certified copies of lifetime membership, including definition of membership rights and services which must be honored by Purchaser.”
“There’s no ambiguity in that sentence,” Armstrong said.
The ordinance spelling out the city’s new relationship with lifetime members was passed March 4 — 11 days before the council finalized the purchase of the country club. Aaron said critics are only citing a portion of the contract.
“You have to read all four corners,” he said.
Because the city is a municipality it must follow state statutes, the mayor said. After the city attorney reviewed the lifetime membership wording and state laws, she recommended the council not allow the transfer of those memberships.
Bill McClung, the father of Mike McClung, stood up and said if his son had known the city would restrict the lifetime memberships, he would not have sold the country club to Meadowlakes.
“I’m willing make this statement in a court of law,” he said. “The city wasn’t forced to buy this club. My son had another purchaser who was willing to buy it for $3.3 million. In the final negotiations (the city attorney) mentioned there was a possibility the lifetime memberships (would be) a roadblock. My son said if it was, he wouldn’t sell it.”
Resident and lifetime member Rob Paul said the most precious asset of the country club are the members. He said they have donated countless hours and spent thousands of dollars above and beyond their initial fees to the club.
“Our memberships infused money into this club when it needed it,” Paul said.
He also predicted many lifetime members would switch loyalties to the Delaware course.
“It would be hard to stay at a course that takes your money,” he said.
Still, Paul wanted the city and lifetime members to solve the impasse.
“I know there are laws. But I also know you can work any problem from any direction,” he said. “It’s time for the council to work this problem from the angle, ‘Let’s make this happen.’”
daniel@thepicayune.com