Santa Clara’s municipal golf course will close in October to make way for groundbreaking on Related Companies’ City Place, a $6 billion-plus mixed-use development that has been on the horizon since 2012. The golf course manager, American Golf — which also manages the Tennis Club — was unavailable for comment.
Last month the City sent American Golf a notice of termination that included a six-month extension of the company’s current management contract into October 2019, according to a May 8, 2019 City news release.
The City will also pay American Golf an additional six months fixed management fee as an early contract termination fee, to ensure “a smooth transition for the operator, with an intent to assist employees during this period,” said the release.
Golf course operations will start winding down Oct. 1, and the golf and tennis courts will be closed around Oct. 15. “The City is exploring alternate options for golf and tennis enthusiasts for continued play at nearby public facilities,” said the news release.
Santa Clara’s general fund has received no profit from the golf course since 2015, according to City financial reports. In the current fiscal year golf course operations have shown a small net profit — $1.75 per round. In recent years the City has had to subsidize golf course operations.