Golf course operator, city officials discuss payment of back taxes, rent
The president of Avalon South Management says filing for bankruptcy is an option hehas considered.
By AMANDA C. DAVIS
VINDICATOR TRUMBULL STAFF
WARREN -- The city and the man operating its golf course are trying to figure out what comes next.
The city is trying to help the financially troubled course, which has missed rental payments and been delinquent with property taxes.
Tony Joy Jr., president of Avalon South Management Inc., is contracted by the city to run the 18-hole course on Warren-Sharon Road, Howland.
The 133-acre course is on a five-year payment plan with Trumbull County because of unpaid real property taxes. Joy agreed in May to the five-year plan after the county threatened foreclosure.
What's owed: The amount owed in current and back taxes is $49,254. The plan calls for $9,149 to be paid every six months toward current taxes, plus $5,472 twice a year toward the back taxes.
Steve Cannata, who works in the treasurer's office, said records show a little more than $7,000 is due in back taxes for a few other parcels that make up the property and a special assessment for sewer system upgrades.
He added that Joy is in good standing for the $49,254, with the next payment due in March.
The city has paid on Joy's behalf in the past, and Joy has skipped a few payments he owes the city for rent.
Joy's $69,636 rental payment for the city was not paid in 1996, and the city has said his 2000 payment, for somewhere between $70,000 and $80,000, has not been made.
Financial woes: Joy said he can't pay his mortgage, rent and county property taxes because he's having trouble making ends meet.
He said he has talked to Mayor Hank Angelo a few times about what comes next.
"I told him, 'Hank, I'm just not making any money out here,'" Joy said. "I don't have a lot of options."
He says he paid himself seven out of 12 months this year.
Although he hasn't made a decision, Joy said, one of his options is to file for bankruptcy.
"I can't continue to stay out here under these circumstances," he added.
Joy contends he was told when he took over management that he would never have to worry about paying property taxes.
The Ohio Department of Taxation ruled in 1994 that the for-profit course is subject to taxation.
Joy said he has put his own money into operations and took a big hit a few years ago when a storm downed several trees on the course.
City-owned since 1917: The land on which the course sits was given to Warren in 1917 by Judith Henn and leased by Warren Chamber of Commerce for 62 years, ending in 1988.
Angelo said the city hopes to keep its asset and recoup outstanding payments from Joy.
"We're going to work with him like we would any business," Angelo said. "Our concern is to keep it as a viable working operation."
Management study: The city had three of its employees do a management evaluation for Avalon South in 1998.
It looks at other municipal golf courses and recommends the city consider taking over management of the course, hiring employees to run it and filing for municipal tax-exempt status.
The study also says that there would be many advantages to selling the property but that renewing Joy's lease under existing or modified terms is not recommended.
Angelo wouldn't say much about his talks with Joy but indicated the city will revisit the 1998 study and update figures.
Joy said negative publicity about Avalon South's finances, along with reports that other companies and entities want to run the course, are hampering efforts to resolve the issue.
Ron Klingle, CEO of Avalon Holdings, which runs Avalon Lakes Golf Course in Howland, and Howland Township have expressed interest in the course.
Earlier in the year the city said it was seeking professional appraisals even though officials maintain it's never a good idea to sell an asset.
davis@vindy.com