Leaders of Sunland Golf & Country Club say the 18-hole course and its cafe and pro shop continue to hit hard times.

Bruce Mullikin, board president of the club, wrote in the August club’s newsletter that before the end of the fiscal year, the club will “need to borrow significant funds to meet our payroll and other recurring expenses.”

In an interview at the course, Mullikin said the club is debt-free and not near bankruptcy but that “finances of the club are on shaky ground” and “just uncertain.”

Board members with the SunLand Homeowners Association, SLOA, a 501(c)3 nonprofit, plan to discuss possible options, including the possibility of contracting services with the club, in a special meeting at 5 p.m. Wednesday, Aug. 15, in the club’s ballroom, 109 Hilltop Drive, Sequim.

Mullikin said he’s working on a projection for the club’s year-end finances for the meeting.

He wrote in the club’s July newsletter that golfers investigated numerous options to help the club, such as increasing annual dues, increasing/decreasing existing services and selling the club.

He followed that in August’s newsletter, writing that options remained mostly unchanged with an option to negotiate a “lease option” contract with a buyer, assessing membership fees, “begging for donations from past and current members.”

Fred Smith, Sunland Homeowners Association board president, said the prompt for a homeowners’ special meeting arose once he heard an offer was on the table to sell the course.

“Like a lot of golf courses, they’re financially strapped because of membership,” Smith said. “New membership is growing, but old membership is dying.”

Mullikin said when he joined in 1994, they had nearly 400 members. Since then, however, they’ve lost members despite dropping a $10,000 initiation fee, he said.

“We need players more than initiation fees,” Mullikin said.

Current membership fees range from $1,200-$6,000 a year.

Public golf play on Saturdays and Sundays hasn’t been as big of a draw either, Mullikin said.

Smith said he sees a few options for Sunland’s 920-plus homes and its many homeowners. One of them is to enter into a contract with the club for landscaping and maintenance at about $118 more per member, a year; currently, homeowners pay $232 annually for dues for landscaping, access to Sunland’s pool and other amenities.

“We are not proposing subsidizing the golf course,” Smith said. “It’s a contract with them for services rendered. It could be a limited agreement no longer than five years.”

Mullikin said if that were approved it would bring in about $108,000 more a year for the club through services.

Smith said the purpose of Wednesday’s meeting is to seek input from homeowners for possible options with no call for a vote unless people ask for it.

Some background

Homeowners, however, may not favor a landscaping/maintenance contract.

A new annual due per home of $300 was proposed (up from $195) between 2008-2010 to help the course with maintenance for five years. Residents contested the increase for various reasons — mostly for legality reasons, following lawyers’ advice citing a conflict of interest between the two boards.

Brian Bailey, a former SLOA board and club board member at differing times, said at least 10 percent of homeowners signed a petition asking for a vote on the proposal in a special meeting.

Following legal counsel, Bailey said the SLOA board asked the homeowners to withdraw their petition, and they did. No vote was taken, he said.

Afterward, some Sunland residents said the disagreement continues to be a rift between neighbors.

Lloyd Taylor, a Sunland homeowner but not a golf club member, said any agreement potentially made between the two associations remains a conflict of interest. He said any board members who are golf club members “would benefit more than I and any other member of the homeowners would,” Taylor said.

“Being a member of the golf club, anyone on the homeowners board should be abstaining from it because they have a conflict of interest,” he said.

Taylor said state law prevents a 501(c)3 like SLOA providing funds going to the club because its taxes would change and the homeowners’ board wouldn’t be covered by its insurance any more.

David Babow, a Sunland homeowner and non-golfer, agrees with Taylor that state code prevents the associations from partnering in this capacity.

Babow, a member of The SunLand Facts group opposed to the previous fee increase, said paperwork showed an overwhelming majority of homeowners were against an increase.

“Almost every person (like) widows living on Social Security don’t want to pay extra,” Babow said.

“For me, it’s not the money,” he said. “It’s the principle. It rubs me the wrong way they want me to pay more.”

He said that golf clubs around the world, including Scotland, are struggling and/or closing.

“Not that many people are interested in the sport, even in its native country,” Babow said.

“Why should 900-plus people pay for (the golfers)? It’s not fair and it doesn’t make sense. They wouldn’t put one penny down for me to help fix my boat.”

Mullikin said the current effort to seek support is not the same as the 2010 proposal.

“Instead of dumping something on the people, we’re communicating it,” Mullikin said. “If the golf course is sold or goes under, it’s going to affect everyone adversely.”

Mullikin said home values could drop if the course fails but with help from homeowners he sees it as “win-win for everyone.”

“Any money would go towards the current need, maintaining the beauty of the community,” he said.

Babow disagrees that property values could decline with no golf course, and that the greens could be open green spaces because homeowners are not allowed to walk on the course.

“That’d be a cost I’d be willing to pay to walk on,” Babow said.

Smith said homeowners often ask to walk on the course but for liability reasons they are not allowed.

With a possible contract between the associations, he said the green spaces would be better taken care of.

“We could have a great walking space in the area that’s beneficial to everyone,” Smith said.

Taylor said he doesn’t have anything against the golfers, but maintains there is a conflict of interest.

“I do not want to bring this to a lawsuit,” he said. “The golf course will lose all its options. I’d rather not see that.”

For more information about Sunland Golf & Country Club, visit www.sunlandgolf.com.

In 2010, SunLand Owners Association’s board asked residents to withdraw a petition asking for a vote to raise annual dues to contract with Sunland Golf & Country Club for landscaping/maintenance. This Wednesday, homeowners hear options in a special meeting about the club’s declining financial situation again. Sequim Gazette photo by Matthew Nash

A visitor to the Sunland Golf & Country Club takes a shot on the putting green last week. Non-members can golf on the 18-hole course on Saturdays and Sundays, but club leaders said it hasn’t helped as much as they hoped while the club faces tough choices with its financial future. Sequim Gazette photo by Matthew Nash