Little Falls council weighs running golf clubhouse, directs staff to post manager job and pursue liquor license

At a special work session, the Little Falls City Council discussed whether the city should operate the municipal golf clubhouse, reviewed staff projections for startup and operating costs, and directed staff to post a bar-and-restaurant manager job and pursue a liquor license while continuing to seek a private tenant.

The discussion focused on timing, costs and the potential effect on the city’s levy and bond rating. Hannah, finance director, told council staff had applied for a liquor license and prepared a hiring timeline and budget scenarios. Staff recommended a hiring schedule that would post the manager position at the next regular meeting, keep the posting open for one month, make an offer by April 28, appoint a manager May 5 and start the manager June 2; kitchen, bar and event staff appointments would follow in June–July with an early August target to open the clubhouse.

Why it matters: staff projections show startup and staffing costs could create a short-term loss that would affect the municipal levy and could trigger a bond-rating downgrade if performance falls short of expectations. Council members expressed divided views: some urged immediate action to get amenities in place for the golf season, while others warned of passing costs to taxpayers if operations run at a loss.

Staff overview and finances Hannah, finance director, said staff estimates put initial build-out and equipment needs at about $93,940, including smallware (plates, utensils and basic kitchen items) and additional bar and kitchen equipment, and noted an earlier outside estimate of roughly $250,000 for start-up by a previous prospective operator. She reported a liability-insurance estimate of $4,246 and said staff had already applied for the liquor license.

On staffing, staff projected annual wage and benefit costs of roughly $290,000 to operate the clubhouse as a full-service bar, restaurant and event space (including a full-time, salaried manager with benefits and part-time kitchen and bar staff), and estimated food and alcohol revenue of about $253,000 based on rolling 2024 figures. Using those numbers, Hannah said the city’s “projections show a loss” for 2025 and that, under the scenario labeled Option 3, the loss would translate to an approximate 4.2% impact on the levy before considering other departmental needs. She told council that credit-rating provider S&P had indicated a sustained negative operating expectation could result in a downgrade.

Council direction and staffing timeline Several council members urged moving quickly. Council Member Dave argued staff-run operations could produce more revenue than a lease and said his own revenue estimate produced a possible operating profit in his calculations; he told the council, “I think we should go for it.” Other council members said they want to hire a professional manager and get the clubhouse running rather than waiting indefinitely for a tenant.

Council agreed to the following staff actions and agenda items (staff to implement unless otherwise noted): - Add a bar-and-restaurant manager job posting to the council agenda tonight (staff had a posted job description ready). Outcome: added to the agenda for council consideration. - Continue marketing the clubhouse and follow up with a prospective tenant who toured the facility the morning of the meeting; staff said the prospective tenant was checking insurance and financing and would report back. Outcome: marketing to continue; tenant interest not finalized. - Proceed with the liquor-license application (already submitted by staff) and prepare pro-shop alcohol sales as an interim option if full service cannot open immediately. Outcome: staff has applied for the license and will pursue pro-shop sales as feasible. - Add an agenda item authorizing limited purchases of used kitchen and event smallware (staff proposed an initial $10,000 cap for auction purchases to be ratified later by council). Outcome: council directed staff to add this item to the agenda for approval and future ratification.

Discussion points and council concerns Supporters of immediate city operation said a staffed clubhouse and event center would help capture revenue and deliver amenities the community expects. Several council members offered to help source equipment and volunteered to assist with design and operations planning.

Opponents or cautious members emphasized the city’s historical operating deficits for the clubhouse and the risk that a new, city-run operation would require levy increases or cuts elsewhere if revenues fall short. One council member said they were not comfortable with another double-digit levy increase and asked where the money would come from; staff and other council members replied that funding could come from re-prioritizing budget items if necessary and reiterated this was a known risk.

Staff cautioned that even with a strong manager, the restaurant industry carries high failure and staffing risks and that timelines were contingent on finding qualified applicants and on market conditions. Hannah said, “If council wants to move forward with option 3, great. We will work on option 3,” and added staff’s role was to present the risks and projections so council could make an informed choice.

Where things go next Council voted by consensus during the work session to add the manager posting and the smallware auction authorization as agenda items for the next council meeting and instructed staff to continue marketing the building to private operators while preparing to run full service if the council approves.

The meeting record shows staff will return with the formal agenda items, job descriptions and any proposed purchase-authority language for council approval; timing for hiring and an opening date will depend on council action at those agenda items and on hiring results.