Rockwall takes legal action against Shores Golf Club

By J.J. Smith. The City of Rockwall has taken legal action against The Shores Golf Club under a lease agreement regarding compliance with lease provisions.

According to a City news release, the City just sent a default letter to the Shores’ operator for failure to comply with certain maintenance and other standards outlined in the lease following a January inspection.

The non-compliance issues were not addressed adequately by the operator and a notice of intent to terminate the Lease Agreement was sent to the operator and the mortgage lender.

The situation centers around upkeep of the golf course under an agreement between the owner of The Shores Country Club and the City of Rockwall in a Lease Agreement entered into in 2001, which includes minimum standards for maintenance of the golf course.

There have been numerous complaints from Shores’ homeowners and golfers concerning condition of the golf course in the last several years, and the City recently held a Town Hall meeting allowing residents to discuss their concerns.

Portions of the golf course – primarily the back nine holes – are on land owned by the City of Dallas, which entered into various agreements with the City of Rockwall and the owner of The Shores Country Club making the land available for use as a golf course.

The lease agreements regulate nine full holes on the course and portions of another four. The remaining course and the club house and other amenities are on private land owned by the owner/operator of The Shores Country Club. As a result, the City of Rockwall has no ownership in the public land and no oversight over the general business practices of the Shores’ owner.

Multiple inspections were made by the City beginning in 2001 to evaluate the condition of the golf course, which were often made by an independent, qualified outside consultant.

In the last five years, the City has issued four formal default notices under the Lease Agreement, and a lawsuit was filed by the City in 2006 regarding the results of one inspection. It was settled in 2007, resulting in the club owner investing more than $250,000 in the course irrigation system.

The revenue the City derives from the golf course is based on a fixed minimum rent and possible percentage rents if revenues from golf operations exceed certain thresholds. The minimum annual rent payment today is $50,000, which was instituted in 2009 with an amendment to the Lease Agreement that was approved by both parties. Prior to that, the payment was approximately $25,000.

According to the news release, it’s the goal of the City to have a professional, well-operated, functional golf course at The Shores. City officials say they want to answer questions concerning this situation and want to provide residents with information about golf course operations as they relate to the City.

For information ,contact:

Mayor Bill Cecil (972-771-3362);

Glen Farris (972-771-1444)

Margo Nielsen (972-754-7729)

Mark Russo (214-793-2923)

Matt Scott (469-371-8016)

Cliff Sevier (214-908-5423)

David Sweet (972-365-1775)

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