THE FUTURE of the Blue Lake Golf Links is under a cloud after an external review employed by the Queen Elizabeth Park Trust (QEPT) found operational costs are not sustainable based on current visitation.
The current lease for the City Council-owned and controlled site is due to expire in June 2019, with the trust seeking an initial 12-month extension to “explore a new operating model”.
The trust has been the overseer of the Blue Lake Public Golf Links since its official opening in 1980, including grounds and infrastructure management.
In a statement, the trust said all operating expenses – including green keeping – is funded by the trust and is reliant on player fees and rental revenue from the privately-operated on site bistro to cover costs.
However, Trust chairman Colin Martin said the combined income was currently insufficient to cover the operation.
“Unfortunately, escalating operating costs coupled with a steady decline in golf participation rates have resulted in a business model that is no longer viable,” he said.
Mr Martin said an external review found the trusts’ operating costs were not sustainable based on current visitation numbers.
“This is Mount Gambier’s only public golf course and we see it as a community investment that provides valuable social, recreational and tourism benefits for the city,” Mr Martin said.
“The QEPT also acknowledges the popularity of the Linksview Bar & Bistro privately operated by Bill and Wendy Burley, which runs as a successful separate entity to the Golf Links.”
The trust said they were reluctant to hand the site back to council in the short-term “despite the growing financial constraints” and would offer the Blue Lake Golf Club the first option as a subleasee after June 30.
Mr Martin said the trust was prepared to contribute funding over the next three years.
“There are many examples of clubs in Mount Gambier who lease sporting grounds and pay for their upkeep, but also retain all operating profits and we are confident that a similar arrangement could be developed with the golf course in the long-term,” Mr Martin said.
Details of the proposed new operating model are yet to be determined, with the trust starting discussions with Golf Australia – SA, council and the golf course.
It is understood the trust’s proposal has not been formally brought to a city council meeting.
City Council was contacted for comment.
