The City of Polson hosted two full-capacity meetings on Tuesday, Feb. 17, to discuss the draft proposal from MIXT Industries to lease the Polson Bay Golf Course. Both received pushback and criticism from the community.
The draft proposal to lease the golf course for 99 years was brought to the Polson City Commission’s attention during the city manager’s comments at the Feb. 2 meeting. Meetings were scheduled to discuss the draft proposal with Dallas Tanner, the managing partner of MIXT Industries, when he was in Polson last week.
According to previous Leader reporting, the proposal suggested a $500,000 upfront payment to the city and annual payments of $50,000 for the next 10 years. It included taking the “economic risk” from the city and improving multiple aspects of the golf course.
The first meeting last Tuesday was held with the Golf Advisory Board, and the second was a workshop with the city commission.
Both meetings were hosted in the commission chambers, which presented a problem when residents filled the room and attempted to stand in the back. Meece said during both meetings that they were at capacity and had to have people stand in the hall to comply with the fire code.
During both meetings, Tanner had Ric Smith, a real estate agent and manager of the Century 21 Big Sky office, introduce him. Smith said he has known Tanner for 11 years and helped him acquire property off Finley Point and more property this summer.
Smith noted that Tanner has made substantial donations to Providence St. Joseph’s new clinic and to the Boys and Girls Clubs in Ronan and Polson. Smith said the draft proposal is something “beneficial to our community.”
“Dallas has very good intentions to help make our community better, and I’ve seen that over and over, over a long period of time,” Smith said.
As Tanner introduced himself next, he explained that he has spent a lot of time here since 1993 and has played the course since he was 13 years old. His parents have owned property in Polson since 1993, and he and his family spend May through September in the community.
Tanner was born in Phoenix, Ariz., and currently lives in Dallas, Texas. He plans to move here full-time over the next five to seven years.
After introductions during the first meeting, Tanner addressed questions from the advisory board.
Multiple topics came up, such as his intentions and for-profit business. Larry Ashcraft, a board member, made the point that most people in the room live here and have to hold each other accountable.
“We try to do the best we can, because this is our golf course. We have a passion for it,” Ashcraft said. “Versus you, an out-of-the-area person who comes up a little bit during the year, we have to look at each other in the face every day.”
It was brought up several times that Tanner is not from the area, and he attempted to counter by explaining his connection and passion for this community. Even pointing out that he spent last week in Washington, D.C., lobbying for affordable housing, and it’s “more nerve-wracking to get in front of your neighbors” than to be a lobbyist.
Tanner did not present his draft proposal fully because he thinks “by now everyone’s printed it,” he said. However, he did elaborate on the many capital expenses he plans to make, including improvements to Bunkers Bar & Grill and to course equipment and resources.
“At the end of the day, the golf course is doing a great job. I think Cameron (Milton, director of golf) and his team do a wonderful job in the pro shop. I think Pat (Nowlen, the golf superintendent) does a really good job with the resources he has on the golf course,” Tanner said. “But I also think that with a little bit of creative thinking and maybe perhaps an advisory board around a new group of ownership, you can make what’s already good, really great.”
At the advisory meeting, Tanner was also questioned about his expectations for a return on his investment. Tanner said, “very little at the end of the day,” because golf courses don’t make a ton of money.
“You buy it because you’re passionate about it, and you want to reinvest that capital over and over,” Tanner said.
A few people spoke in support of Tanner’s proposal, including Guy Boss, who said “I’ve known the Tanner family for a long time, and they do what they said they’re going to do.”
Boss advocated for not excluding people who can bring in capital and noted he would like to see the communication lines stay open between the city and Tanner.
However, as both meetings progressed, questions arose about why the lease was transferable, and many pointed out that a 99-year lease is essentially a purchase. When Commissioner Lisa Rehard again addressed the lease as a purchase during the second meeting, Tanner suggested creating a system that required any changes to the course to be approved by the city.
“I think it’s a little unfair to act like a 99-year lease is the end-all be-all when you can write whatever terms in the lease that you want,” Tanner said.
David Cottington, the advisory board chair, also asked Tanner about his legal issues with the Federal Trade Commission. Tanner is the chief executive officer of Invitation Homes, which is a leasing company.
The FTC pursued punitive action against Invitation Homes for unlawful practices, according to a Multi Family Dive article. This was a three-year FTC investigation that resulted in a $48 million settlement with no admission of any wrongdoing.
Tanner said during the meeting that “it became very popular” during President Joe Biden’s administration to “sort of pick on housing groups.” He explained that the company was one of the largest in the sector and he “can’t speak publicly about things like that.”
How the proposal reached the city
Tanner had discussed this proposal with the previous mayor, Eric Huffine, and City Manager Ed Meece a couple of years ago, before the draft was recently provided to Meece, Tanner said during the advisory board meeting.
City Commissioner Carolyn Pardini made a public comment after that clarification and asked if she had missed the discussion at previous commission meetings. Meece explained that she did not miss that conversation because he didn’t have the proposal until the Feb. 2 meeting.
Dave Rittenhouse, a member of the Polson Local Government Review Study Commission, also made a public comment during the last city commission meeting. He said that Meece handing out the draft proposal during the city manager’s comments “didn’t seem like a very good way to introduce the whole proposal.”
The golf advisory board also questioned Tanner’s efforts to speak with the individuals who help operate the course. Tanner explained that he hasn’t spoken to them in depth, and the board asked why he would bring the proposal to the city first before those conversations.
Tanner said that he thought they were doing the correct and respectful thing by bringing it before the public and the commission.
“I want to be really careful that we don’t get ahead of ourselves here. I feel like this is the appropriate format to sort of talk about this as a concept out loud,” Tanner said.
Two proposals for the golf course
Many public comments were made in support of the city accepting the proposal submitted by the Polson Bay Golf Association, due to the organization’s investment in the local course and community.
During the commission meeting, Mayor Laura Dever said that the city did not solicit proposals and that the course is not up for sale. She added that they have been working with the golf association for about 18 months. The president of the Polson Bay Golf Course, Josh Maki, said during the meeting that the association is now a non-profit, which Dever noted changes things “a little bit.”
Dr. Dan Rausch, a resident of Polson, supported the association’s proposal during the meeting and noted that “the reality is, government entities are not good managers of businesses.” He explained that the city needs to do something different to move the course forward.
“Sounds like a great opportunity, but I think it needs to be explored more,” Rausch said, referring to the association’s proposal. “You’re not good managers of businesses, nor should you be competing against local businesses.”
The advisory board also asked whether the city could hold a community referendum — a citizen vote on direct laws, ordinances or public funding — and Meece said he was unsure.
Rehard explained that the City of Kalispell held referendums on its leases of the Buffalo Hill Golf course. Both she and Meece said they would have to consult with the city’s attorney before moving forward with that option.
During the commission meeting, both Pardini and Rehard strongly expressed that they cannot support Tanner’s proposal. Rehard noted that portions of the course were donated to the city, and she believes city code wouldn’t allow them to privately lease the property.
“I have some philosophical problems with taking gift property that came to the city for public purposes and turning it over to a private enterprise for profit generation for the private enterprise,” Rehard said. “To me, that is ethically challenging. I can’t get there, and it feels like a breach of the public trust.”
She explained that she has heard from many constituents and has received “no positive feedback” on Tanner’s proposal.
“There’s no way I’m going to support the transfer of public ownership of any city property to anybody else,” Pardini said. “That’s my intention. I made it known early, and I’ll stick to it.”