During a special meeting Tuesday, May 7, Baytown City Council voted to keep the golf course on Evergreen Drive operational after Build Baytown I was issued default and subsequent termination notices by Troon for course operations and by the City for the development contract and lease agreement.
Mayor Brandon Capetillo said, “It’s important for all of the facts to be out there as we continue to protect our amenities and assets.”
In April 2022, councilmembers voted to approve a $6 million contract with Build Baytown I to build a golf course. Troon, the company that manages the course, went into agreement with Build Baytown I to manage and operate the course in May 2023. The course opened to the public last December.
City Manager Jason Reynolds said, “We paid for an operational golf course and received that portion of the agreement, but then we started receiving calls about vendors that were not paid for their services to work on the clubhouse and other areas.”
In early April, Troon notified the City that a notice of termination for course operations was issued to Build Baytown I. After those conversations, the City issued a notice of default for the development contract and the lease agreement. The City also took possession of the golf course in order to maintain operations and preserve the options available to the City.
Jason said, “This required an immediate response and we initiated emergency actions to protect our assets and explore all options.”
The City and Troon continued discussions and agreed to a 30-day contingency agreement. During that time, a short-term agreement and two other options were developed for Council consideration.
Ultimately council approved a $1.9 million scenario that allows the City flexibility over the next few months to explore the best options for the future of the course while keeping it operational.
Jason said, “In addition to keeping the golf course open, this solution helps pay for equipment leases that were already in place and allows us to work with vendors necessary for course operations and completion of construction.”
He added, “Does this mean we have the opportunity to negotiate with those creditors? Yes, but we have local businesses that haven’t been paid. One [local] company is owed around $240,000.”
This was the only plan that includes payments to local vendors who have not been paid for their services, but will be involved in ongoing operations. The approved plan also includes around $700,000 to finish construction of the restaurant area and other necessary improvements around the course.
“The clubhouse is the last piece to be finished. Once complete, it is expected to bring in additional revenue,” he said.
During this process, Build Baytown I filed for bankruptcy protection.
Jason said, “We are currently working with our legal advisors to pursue the $6 million investment [the City made]. Bankruptcy opens the door for the court to have all records opened up to track the money movement.”
The City stands by the decision to issue default notices for these contracts along with the termination of the lease agreement with Build Baytown I.
Mayor Capetillo said, “We will not be taken advantage of. These difficult decisions are made to protect the City and to keep developers honest.”
Jason said, “We have learned some lessons through this process, but we are moving forward to do what’s best for Baytown and its residents.”