CITY ASKED TO HELP BACK GOLF COURSE; DEVELOPER SEEKING BOND TO PARE COSTS.

Byline: Sylvia L. Oliande Staff Writer

The developer of a new public golf course in Simi Valley has asked the city to consider putting its name to a bond sale to help cut costs.

At the request of Golden Tee Inc., the City Council is considering several financing options that would enable the developer to use the city's name to secure a lower interest rate than those privately offered to finance the $16 million project.

But the council is being cautious, even though most believe there is little risk that the new The Summit Golf Course, once known as the Arroyo Simi Golf Course, would fail.

The council on Monday asked city staffers and GTI to determine what the monetary advantages would be for the city before making a decision.

``If you're going to risk even putting a little bit of stain on the city's name - if something drastic happened - I certainly wouldn't want to even think about taking a risk for $50,000,'' said Mayor Bill Davis, referring to the additional revenues the city could receive at the end of the lease. ``I might think of it at $100,000 or $150,000. What's the advantage to the city?''

The issue is expected to go back to the council in about one month.

Paul Amann, president and CEO of GTI, said the proposal presented to the council Monday night was not a direct representation of what his company was asking.

The report spelled out the risks of entering into an agreement, including having to use general fund money to help pay off the bond debt if the golf course revenues fall short.

The City Council rejected that idea, and Amann said he understood the city's position. ``We have committed to the city that we will not put them in jeopardy in any way,'' he said.

``(But) we need to keep our costs at a minimum, and one of our biggest costs is financing,'' he added. ``This is a $16 million complex, and financing costs on that amount of money gets to be an extreme number by itself . . . If you can reduce that down, that's a viable consideration.''

The city often enters into financing agreements like this with developers, but typically it is done in exchange for affordable housing units. Officials said it would be unique to use the city's name to help finance a golf course.

GTI, which also built a practice complex at Moorpark College, hopes to be able to begin construction on the Summit in early fall, for a summer 2000 opening.

The course is to be built on a portion of 235 acres west of the wastewater treatment plant property that was once used as a sludge dumping ground. The complex will include an 18- and a nine-hole course, an 18-hole putting course, a driving range and a short-game practice area.