See what Shelby-Utica Patch readers are saying about Shelby's latest amendment to Cherry Creek's lease agreement, which defers $1.3 million in rent in exchange for renovations over eight years and a 17-year lease extension.
Cherry Creek, though operated by Golf Facilities, Inc., is owned by Shelby Township, which receives rent from GFI as a tenant.
Shelby Township has agreed to defer $1.3 million in rent from Cherry Creek Golf Club in exchange for Cherry Creek’s commitment to make a minimum of $1.6 million in capital improvements to the property over the next eight years and extend its current lease until 2062. The township board voted 5-1 Tuesday to approve these lease amendments, with Trustee Nick Nightingale casting an opposing vote and Trustee Doug Wozniak absent. Under the amended lease terms, Shelby Township will defer Cherry Creek’s rent for eight years and eliminate the guaranteed monthly rent payments in favor of a quarterly pay schedule. In return, Cherry Creek will invest the monies that would have otherwise been used for rent in a series of renovations. The company has …
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Proposed renovations include additional outdoor dining options, expansion of the white tees and construction of a new building that will make the existing clubhouse "banquets only."
In exchange for an adjustment to its existing lease and rent, the operators of Cherry Creek Golf Course say they will commit to making some $1.6 million in capital improvements to the property over the next eight years. The Shelby Township board is due to consider Cherry Creek’s proposal during its regular meeting at 7 p.m. today in the township municipal building on Van Dyke. Under the proposed terms, Shelby Township would amend its existing lease agreement with Cherry Creek to abate or defer the company’s rent for eight years as well as eliminate the guaranteed monthly rent payments in favor of a quarterly pay schedule. Cherry Creek's side of the bargain would include committing to an eight-year, $1.6 million capital expenditure campaign…
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3:45 pm on Tuesday, February 26, 2013
I don't think it's a great deal for taxpayers but it's not a horrible one either and honestly, we won't know until the future if having a public golf course in Shelby Township was a good idea. I am glad however that Kuka and other businesses within Shelby Township consider a public golf course, close by, as an asset that influenced their decisions to invest in Shelby Township and bring jobs into … more ›
Geoff Hoffman
10:40 pm on Saturday, February 23, 2013
I understand that while some board members wanted the deferral shortened to 5 years the response from the bank was that they "preferred an 8 year deferral". So the board caved and agreed to the 8 years. This doesn't make sense. If the bank said they required an 8 year deferral then I might have agreed but they only "preferred an 8 year deferral". It was really Golf Facility Inc. that wanted the 8… more ›