The economic survival of the Lake Wilderness Golf Course has reached a crossroad and the signs are pointing in one direction – close the restaurant and keep the golf balls rolling.

At the Maple Valley City Council study session Monday the staff recommended continuing the golf operation for the city-owned course and close the Lake Wilderness Grill, at least temporarily.

The staff is recommending continued operation of the 19th Hole, an eating area next to the pro shop, as a sports bar with breakfast, lunch and snack menus.

The bar would serve a bar food menu.

The 19th Hole would be open daily from 7 a.m. to 4 p.m. for breakfast and lunch and the bar from 4-10 p.m. Monday through Friday and 11 a.m. to 10 p.m. Saturday and Sunday.

The banquet room downstairs would remain available for larger private and special events with the restaurant space upstairs used for smaller groups.

The staff is also recommending the council members approve a resolution allowing City Manager David Johnston to offer the Seattle firm Premier Golf Center a 12 month extension for management of the course. Premier has managed the course and the restaurant since May 2007.

Early in 2011 the city will send out separate request for proposals looking for firms to manage the course and the restaurant on a long term basis.

The golf course has been financially solvent, but the restaurant has consistently lost money. According to information provided to the Reporter in July, the number of rounds played, cart rental and pro shop revenues had increased each year through 2009 since Premier took over management. The course itself has had a net profit each of the past three years.

That profit, however, has been offset by losses on the food and beverage side. According to Finance Director Tony McCarthy, the food and beverage part of the operation is projected to lose $228,487 this year and $138,483 in 2011.

Because of the difficult economic circumstances, the staff is recommending the golf course operation cannot receive any money from the general fund or subsidies from real estate excise tax beyond 2010.

“We are focusing on the golf experience,” Johnston said. “We have a golf course and if we succeed we can build from that.”

Johnston and Parks and Recreation Director Greg Brown noted the plan to close the restaurant was for the winter season. The staff will assess the financial status each month and at the end of March.

Johnston said the restaurant chef, Chaz Olsen, will have the option to offer special event dinners on Fridays and Saturdays.

Premier will be responsible for setting up and advertising the special event dinners.

The council members expressed a wide range of reactions to the recommendations.

Councilman Layne Barnes said he thought the recommendations were, “an appropriate response through March. I think we are on the right track.”

Councilwoman Linda Johnson disagreed with the plan.

“I think we are strangling the golf course,” Johnson said. “Killing it a little bit at a time. I think we are taking the wrong approach, shutting everything down and just advertising the 19th Hole.”

Councilman Dana Parnello said he supported the idea of the restaurant, “but the reality is retail is a tough business…. This is a last ditch effort to make this viable.”

Deputy Mayor Victoria Laise Jonas said “focusing on liquor, that bothers me as a city.”

The deputy mayor also said she was concerned about the city sending out a request to operate the restaurant after it has been closed.

“I think we are setting ourselves up for failure by closing the restaurant,” Jonas said

The deputy mayor said she was “sad and disappointed” but understood the city needs to make the operation financially sound.