Photo by Joe Olivieri

Grey Rock Golf Club , The club, built in 1992, features an 18-hole course, clubhouse and tennis facilities.

During its March 20 meeting, Austin City Council will consider whether to purchase Grey Rock Golf Club and Circle C Tennis Center for $9.6 million.

If council approved the purchase, the 292-acre property would be the city's second golf course south of Lady Bird Lake.

"When the city first approached us with their desire to purchase the property, we were delighted," wrote the course's owners, The Golf Club at Circle C LP, in news statement. "We were told the city was interested in Grey Rock because it wanted this area to remain green, undeveloped and wanted to add a high-quality golf course to their inventory."

The statement goes on to say that the city has promised to maintain "the same high standards we have tried to employ."

"We expect the conditions and playability to be as good in the future as it has been during our stewardship," the statement reads.

Kevin Gomillion, the city's Golf Division manager, told Community Impact Newspaper that negotiations had been taking place.

In a memo to City Council, Assistant City Manager Bert Lumbreras wrote that Grey Rock's owner approached the city about buying the facility.

The city authorized an appraisal and negotiated a price—$8.5 million to purchase and an additional $1.1 million for related expenses such as an environmental assessment and small capital improvements.

According to the city, the purchase price and the additional funds are below the current fair market value.

Grey Rock's owner had reached an agreement with the city's Park and Recreation Department, but requires the city council's approval, Gomillion said.

The course would be purchased by issuing bonds and the debt would be paid back with course revenue and new debt at no burden to the tax rate, according to city documents.

The 18-hole golf course was built in 1992 as part of the Circle C master plan. The property also includes eight tennis courts, three maintenance facilities, a driving range and a clubhouse.

"The property is situated in a park-deficient area of the city and offers room for future park expansion including trail connectivity, and other park amenities," according to a city staff summary. "The property is under residential development threat and is zoned with no restrictions for development."

The city has not opened or developed a golf course property since 1994, when it opened Roy Kizer Golf Course.

"The pending closure of Lions [Municipal] Golf Course removes a popular public course from Austin and the construction of a new facility is estimated to cost $18 million," Lumbreras wrote.