Ione council approves long-term lease of Castle Oaks Golf Course to SGM Sierra Golf Management

The Ione City Council voted to approve and authorize execution of a lease agreement between the City of Ione and SGM Sierra Golf Management for Castle Oaks Golf Course.

Under the approved terms, SGM will lease the golf course lands, clubhouse and maintenance yard under a long-term lease with an initial 50‑year term and a 50‑year option to extend. Rent is set at $1 annually for the first 25 years, $25,000 for the following 25 years and $40,000 for the thereafter term. The operator committed $800,000 toward capital improvements, with $400,000 required within the first 10 years, and agreed to an annual water payment of $75,000 subject to adjustments every two years. The city retains a right of first refusal on the clubhouse and maintenance yard.

Why it matters: the lease moves Castle Oaks from city ownership and operation to a private operator that promises near‑term investments and local hiring, while reducing the city’s operating burden. Several residents and council members raised concerns about lost revenue, ongoing tertiary plant and irrigation costs, and long-term commitments in exchange for reduced early rent.

Council and staff summary: City staff and the city attorney described the lease as the product of months of negotiation after a short‑term operating agreement. The agreement includes termination provisions and infrastructure-related provisions tied to the course’s irrigation and tertiary system. SGM’s representative, Jeff Christiansen, told the council the company aims to close the purchase around July 14 and reopen the course with improvements within days: “We’re gonna tentatively wanna close on July 14... We’ll reopen on the eighteenth... take a little time to clean it up a little bit,” Christiansen said.

Public comment and concerns: Dozens of residents spoke at the public hearing. Objections and requests included questions about (1) the sharp reduction in annual rent early in the lease compared with previous agreements, (2) whether the lease addresses TRIM termination fees and who will pay them, (3) the long length of the agreement, and (4) ongoing costs to run the tertiary irrigation plant. Resident Marcia Edick said she was concerned the city had given up steady annual revenue, noting the previous lease had included revenue sharing. Resident Elmer Roadie urged the new operator to employ the existing maintenance manager and pressed for tree‑mitigation commitments. Several residents, including others from Castle Oaks, thanked staff and council for completing a deal they said would protect property values and keep the course operating.

Council action and outcome: Following discussion, a council member moved to approve and authorize the mayor to execute the lease; the motion passed and the mayor announced “Ayes have it.” Jack Boyd publicly recused himself from related items earlier in the meeting because his property is within 500 feet of the project; the recusal was noted on the record.

What’s next: The lease calls for capital investment schedules and sets the annual water payment and other operational terms; the city will monitor compliance and exercise its right of first refusal on the clubhouse and maintenance yard if SGM seeks to transfer that property.

Ending: Council members and the mayor thanked staff and legal counsel for negotiations; SGM said it will hold a hiring drive and begin initial improvements immediately.