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Did you know ...
that North Canton did not need to buy Arrowhead to save green
space?*
*the following
appeared in the Canton Repository as a LETTER TO THE EDITOR on
Thursday, September 4, 2003.
**Click
here to learn more about the
Arrowhead Country Club issue.
As a councilman in North Canton, I would like to comment on
the Repository report of August 27, 2003, titled, “Chippewa Golf
Club will manage Arrowhead.” First, I would like to say that the
city’s decision to lease Arrowhead Golf course to Chippewa
owner, Mr. Kevin Larizza, is a good choice for North Canton.
Second, it is not widely known by the general public, but
this same Chippewa Golf course owner was one of the bidders for
Arrowhead earlier this year.
I think it is highly probable that North Canton’s coffers
would now be $4.2 million dollars richer if North Canton had
simply observed, from the sidelines, the sale of Arrowhead
Country Club earlier this year and let an interested golf
operator continue the golfing tradition.
North Canton has spent millions to secure green space when it
is clear that the green space could have been saved at no cost
to the city with its sale to a golf course operator such as the
lessee who will now operate Arrowhead for the City of North
Canton.
Lastly, the article states that the city expects to get a 3 ˝
percent return on investment (ROI) on its expenditure of $4.2
million to purchase Arrowhead. If North Canton were netting
$145,000 a year after expenses, that would equate to 3.45 per
cent ($145,000/$4,200,000).
But that is not the case. From the lease payments, $50,000
must be deducted for clubhouse improvements, $26,250 deducted
for interest expense on the $2.1 million borrowed funds, and
approximately $44,100 on lost interest income from the remaining
$2.1 million that was taken from the city’s investment
portfolio. The hoped for ROI evaporates to ˝ of one percent.
Information must be accurate and complete to allow for an
informed citizenry.
Chuck Osborne
Councilman at-Large
City of North Canton
**Click
here to learn more about the
Arrowhead Country Club issue.
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