The Elk River Golf Club will receive a $20,000 loan from the city for costs associated with the startup of the formerly defunct Pinewood Golf Course.
The internal loan from the GRE Reserve Fund will cover expenses for the prepping and maintenance of the course and facilities ahead of the 2017 season. It is anticipated the Elk River Golf Club will repay the loan at the end of 2017.
On March 6, the City Council approved a management agreement with the Elk River Golf Club for the operation of Pinewood through the end of 2018.
The course previously belonged to Pro Football Hall of Famer and former Minnesota Vikings player Paul Krause and his wife, Pamela. The couple sold the course to the city for $1.8 million in 2006, but became entangled in a three-year legal battle when the city missed its final payment of $1.5 million.
The city sought to renegotiate its final payoff in 2013, but the Krauses rejected the request and filed suit to force the final payment. A settlement agreement was reached and the city agreed to pay $1.5 million. In return, the lawsuit was dismissed and the city received the title to the golf course.
The course did not open for the 2014 season and had been closed ever since.