The University of Minnesota Board of Regents approved the $30.5 million sale of the Les Bolstad Golf Course to St. Michael-based Rachel Development on Friday.
The approximately 141-acre property at 2275 Larpenteur Avenue West in Falcon Heights will be used for residential development with supporting commercial and mixed uses.
University administrators plan to set aside $1 million from the sale to the establishment of a philanthropic program to fund facility improvements and support for the University’s Division I men’s and women’s golf programs.
Remaining net proceeds from the sale will go to an endowment to support and upgrade the St. Paul campus. The endowment is forecast to generate approximately $2 million annually in the future, with a total cumulative gain for the U of $200 million.
Regent Doug Huebsch said he is excited about the endowment and the University saving money it would otherwise need to spend on the golf course.
“I’m also excited for the city of Falcon Heights because they’re going to get to redevelop this land at all kinds of different types of housing which we are in desperate need for around St. Paul campus,” Huebsch said.
The John W. Mooty Golf Facility used by the University’s men’s and women’s golf teams, as well as the Elizabeth Lyle Robbie Stadium used by the women’s soccer team and the KUOM radio tower are not included in the sale. The pump house, water tank and golf maintenance facility also are not included.
History
Falcon Heights has called for a mix of housing, including townhomes, duplexes, apartments, single-family homes and patio homes, as well as shops, cafes, office space and light industrial development on the property.
After the University announced its intent to sell the property last year, Ramsey County and Falcon Heights informed them were not interested in purchasing it. As part of its sale process, the University offers surplus property like the golf course to the state, county or city where it is located before it is presented for sale to the general public.
The U then sought proposals in October, receiving five responses. That request included goals and guiding principles put together by a Falcon Heights visioning committee.
It’s not the first time the University has sought a long-term alternative for the golf course: In 2018 and 2019, the University looked into a public-private partnership for a long-term lease and outside management of the course, according to Gregg Goldman, the University’s executive vice president for finance and operations. However, the officials were unable to find a viable partner.
In 2021, a combined year-round operation center was considered but required capital the University did not have, Goldman said at Friday’s meeting.
The U announced its intent to sell the public facility last June, citing financial and infrastructure needs.
“The reality we must face head-on today as a board and as a university community is that the course is up against a financial cliff. While the day-to-day operations are currently covered, the facility faces well over $10 million in capital needs for which there are zero identified funds available,” Goldman said. “The course carries an overall legacy deficit of almost $300,000. If the course were operational, it will require an additional $80,000 annually just to replace failing motors and operating equipment.”
The course’s 50-year-old irrigation system also is at imminent risk of failure and would require closure of the course and $3.2 million for its replacement if it were to break, Goldman added.
Public pushback
Regents acknowledged the course’s significance in the state’s outdoor recreation and public opposition to development plans.
“We know it holds generations of deep memories for our cross-country runners, skiers, golfers and neighbors,” Goldman said. “The real question is whether the University can and should justify continuing dedicated limited public resources towards a non-core mission activity.”
Regent Penny Wheeler said she met with an organizer of a petition opposing the golf course’s sale and development, which has garnered more than 3,000 signatures.
Community members at a regents meeting earlier this month also expressed concern with the sale, including Rachel Development’s receptiveness to community feedback.
Regents Robyn Gulley and Samuel Heins requested more time on the decision. Gulley expressed apprehension with the speed of the sale and said she had heard from Falcon Heights city council members who felt similarly.
Even with the sale, the developer’s planning will take time, including during the diligence period, said Regent Kodi Verhalen.
“Selling this parcel turns an underutilized, cost-heavy space into a vibrant neighborhood development, directly fulfilling the local 2024 Larpenteur Avenue Corridor Study goals in partnership with our host community, the city of Falcon Heights,” Goldman said.