Faced with mounting costs to taxpayers, the town of Bethlehem found itself at a critical juncture three years ago that led to the end of a 70-year legacy tied to the town-owned golf course.

The Bethlehem Country Club was one of three publicly-owned golf courses in the state, the other two being the Derryfield Country Club in Manchester and Beaver Meadow Golf Course in Concord.

Bethlehem’s course struggled to generate enough revenue to cover essential improvements, such as clubhouse repairs like roof replacements and enhancements to the golf course itself.

The funds it generated were barely sufficient for daily operations, leaving the town with a tough choice – let go of the golf course or face its gradual decline.

“The golf course was just making ends meet. It was generating enough revenue to cover operating expenses but not enough to invest in the capital improvements that were required,” said Mary Moritz, Bethlehem’s town administrator. “It wasn’t making any money before. Now, it’s generating tax revenue.”

Concord’s golf course has a similar history of relying on taxpayer funds to pay for its operations, although it did turn a profit the last two years due to a surge in the sport’s popularity during the pandemic.

From fiscal years 2014 to 2019, Beaver Meadow lost an average of about $5,000 per year. Looking ahead, the city is predicting the course will begin operating at a loss starting in 2025.

Similar tensions have surfaced here about taxpayer money being used at the golf course, including a proposal to build a new clubhouse that’s expected to cost more than $10 million.

City councilors are scheduled to vote on a taxpayer-funded bond to pay for the construction of a new 15,000-square-foot building, which is triple the size of the existing clubhouse.

The current clubhouse, built in 1967, is in need of renovations, including door and window replacements, restroom overhauls, sewer line repairs general maintenance and other renovations, city officials have said.

Up in Bethlehem, clubhouse improvements are no longer the public’s concern since the course is now under private ownership. The 137 acres that were once a financial burden for the town have become a source of income, bringing in approximately $30,000 in property taxes annually.

Clubhouse improvements

Before opting to sell the golf course, Bethlehem weighed various choices: selling it outright, retaining ownership after improvements, or entering a long-term lease agreement.

Initially, the town considered leasing the space out. But when golf associations displayed no interest, the town shifted gears and decided to relieve taxpayers of the financial burden and proceed with a sale.

The golf course was sold to a local couple for $450,000, the same price it would have cost to repair the clubhouse and improve the course.

Concord also had options when it came to improving the clubhouse at Beaver Meadow Golf Course. One involved renovating the existing clubhouse, while the other entailed constructing an entirely new clubhouse.

The facility assessment report from the engineering firm H.L. Turner Group projected renovation costs at $914,000 in 2021. Despite this, the city is advocating for the construction of a new clubhouse, a project that would cost ten times more than the renovation costs.

The city has also stopped investing any money into the existing structure, exacerbating its poor condition.

Initially, the new clubhouse was estimated to cost $4.9 million. But that figure was a placeholder until costs were finalized, said Brian LeBrun, the deputy city manager of finance.

Until October, the designs called for a three-story clubhouse that would be about 18,000 square feet. Now, it’s a scaled-back single-floor structure with a $10.8 million price tag after the New Hampshire Golf Association decided against leasing a space in the clubhouse.

Rich history

Like Bethlehem, Beaver Meadow Golf Course boasts a rich history dating back to its establishment in 1896 as a nine-hole course on land owned by the Sewalls Falls Power and Electric Company with a modest investment of $50. This venture was spearheaded by Miss Mabel Hill, Miss Harriet Anderson, Miss Harriet Huntress, and Paul Holden, who played golf on fields east of the Maple Grove Cemetery.

In 1899, a clubhouse was constructed, marking the beginning of a golfing community in Concord.

Beaver Meadow is hailed as the oldest golf course in the state and it’s been owned by the city for generations.

Taking ownership in 1930, the city of Concord maintained the course as a nine-hole layout until its expansion to 18 holes in 1968.

“I find anybody who wants to criticize the construction of the golf house to be a little bit naive and misinformed about the numbers and what the building means to the community,” Ward 7 councilor Keith Nyhan said before the Nov. 7 city election. “The golf course and certainly the clubhouse which is part of that golf course is a city asset and any asset that you don’t invest in or maintain is going to depreciate and that undermines the value of the property.”

Six new council members take office next month, leading to calls for the city to delay the vote. But a delay could put the bond in jeopardy as at least five members of the next council have expressed reservations about the project.

The 15-member council needs 10 votes to pass the bond and only three of the current members have said they oppose the spending, saying it’s not the right time for the city.

With the decision looming over one of the city’s most expensive projects, the Monitor reached out to every sitting member of the Concord City Council to ask a series of questions, including whether they would consider selling the golf course to expand the city’s tax base.

Of the three councilors who responded to the question, Ward 5 Councilor Stacey Brown was the only one who said she would consider any option to increase Concord’s tax base.

Councilor Brent Todd of Ward 1 said the city would want to ensure the golf course remained as open space if it was sold.

“We would need to find a repurpose for the course, but still guarantee open access,” he said.

Ward 6 councilor Paula McLaughlin wrote, “Keep it as the city of Concord.”

Other council members did not directly respond to the question of whether they would consider selling the golf course.

At-large councilor Fred Keach said investments in the golf course are beneficial for the city of Concord.

“These improvements go far beyond that of supporting golf and would serve the community in other very broad ways,” said Keach. “It is important that we continue to invest in a broad range of recreational programs.”

Most councilors did not respond to the questions.

Greens fees

The Derryfield Country Club in Manchester is the state’s only other municipally owned golf course besides Concord’s. While the courses in Loudon, Pembroke, and Canterbury Woods are not municipally owned, they are open to the public.

Canterbury receives nearly $35,000 annually in tax revenue generated by the privately owned golf course. Similarly, Loudon benefits with over $20,000 each year from its privately owned golf course.

Proponents of the Concord bond say investing in a new clubhouse will help the course generate more revenue than it does now. However, if the course earns $100,000 a year, it would take 100 years to pay off, not including interest.

If approved by the city councilors, the tax burden for a Concord resident with a house worth $300,000 ranges between $39 and $6 per year for the 19-year bond. City estimates show taxpayers are expected to pay back the bond, not the golf course.

Opponents say a new clubhouse caters to a small segment of Concord’s population and argue the money would be better directed at other priorities facing the city.

Ward 2 Councilor Erle Pierce said sentiment against building a new clubhouse was coming from a “vocal minority.”

Public correspondence sent to councilors ahead of Monday’s vote revealed 19 letters asking the vote on a new clubhouse to be rejected or delayed, with four letters in support. One letter of support was written by a Hooksett resident.

In addition, an online petition asking for a delay of the vote received more than 500 signatures.

“As for argument that Beaver Meadow benefits for only a select few, what about our library, pools, trails, Keach Park, and skating rink?” Pierce said. “I would guess that only a relatively few individuals use those facilities too. Would you be in support of the City defunding those City recreational properties too?”