To preserve more than 100 acres of open space, the City Council is considering the acquisition of the Casta Del Sol golf course off Marguerite Parkway. On Tuesday, the City Council moved the discussion to October to allow for additional public input.
The vote comes after the Council on July 9 directed staff to evaluate the City’s interest in preserving the Casta Del Sol public golf course for public use by acquisition of the 65-acre facility. The course’s owner, American Golf Corporation (AGC), had recently put the property up for sale and accepted a $15 million offer from Irvine-based real estate firm PRES Companies. The firm then approached the City with an offer to assign rights to the purchase to the City of Mission Viejo before the AGC-PRES escrow terminated due to time limits. AGC then offered to sell the property directly to the City for $13 million.
Before considering the acquisition, City staff expended significant effort to explore the viability of the acquisition by hiring a consultant to perform a feasibility study; preparing three different financial projections; reviewing financial data and property conditions; and preparing analysis on financing options for the issuance of bonds. To fully understand the operations and financial costs, staff also visited other city-owned golf courses and researched water rights and usage at Casta Del Sol. The proposed purchase agreement includes an initial 3-year management agreement with American Golf Corporation to continue operating the Golf Course.
Because the City of Mission Viejo closed out Fiscal Year 18-19 with a $4.5 million surplus, the City can purchase the golf course with City reserves and still maintain a $21 million cash reserve balance.
Designed in 1970, the Casta Del Sol course has long been a significant community-oriented property with an emphasis on benefiting the residents and guests of the Casta Del Sol development as well as the entire Mission Viejo community.
Listen to Tuesday night’s discussion here and read the staff report online. The City Council will continue discussions of the matter beginning at 6 pm on October 8.