Fore-close! Elk River seeks mulligan on golf course deal

  • Article by: PAUL LEVY , Star Tribune
  • Updated: May 17, 2014 - 5:21 AM

The former Vikings star Paul Krause was thrown for a loss when Elk River failed to make the final payment on course he had sold to the city.

hide

Former Vikings great Paul Krause did some maintenance work on the Pinewood Golf Course in Elk River in 1998.

Photo: Star Tribune file photo,

CameraStar Tribune photo galleries

Cameraview larger

Years after he thought he had sold a golf course to the city of Elk River, former Vikings great Paul Krause finds himself trapped between the course’s nine holes and a legal loophole.

The city agreed to buy Pinewood Golf Course from Krause and his wife, Pamela, for $1.8 million in 2006. But when Elk River missed a final payment of $1.5 million a year ago, the city told Krause that state law prohibits it from maintaining a contract for deed for more than five years — and, thus, the course has to be returned to the Krauses. The city affirmed that the Krauses were legally entitled to keep about $900,000 in previous payments that included interest. An attorney representing Elk River likens the situation to a foreclosure.

Now Krause awaits a court decision to see whether he will be awarded damages. At 72, he says he’s too old to manage Pinewood. Nor does he want to have to resell a golf course that, he says, lost value when the city voted two months ago to close what had become a money-losing proposition.

“All I want them to do is live up to the contract,” said Krause, a Pro Football Hall of Famer who is still the NFL’s all-time interception leader. “A million-five is a lot of money. I can’t just let that go.”

Nor can a group of nearly four dozen seniors, who say they love the mostly flat course and have asked to formally make their case before the City Council.

“The city has a legal obligation to Paul Krause, but it has the ethical obligation of keeping its word to its citizens,” said Pete Kimball, 69, of Elk River.

“As taxpayers, we didn’t want to see the city lose money,” said Kimball, a golf instructor who calls the course’s senior supporters the Pinewood Orphans. “But, sorry. A deal’s a deal. The city made a deal and should live up to it.”

Sherburne County Judge Sheridan Hawley ruled in December that the city committed a breach of the representation and warranties clause in the purchase agreement with the Krauses. She will decide within the next couple of months whether the Krauses should be awarded damages. In her legal conclusion, the judge said the Krauses could receive a maximum of $1,494,600 (for the final payment they never received) minus the current fair market value of the property. If Hawley finds that damages are warranted, a hearing on that issue would take place in September.

Tale of the deal

After managing the course himself for 20 years, Krause obtained approval to develop the property. But the city wanted to preserve the course and prevent housing development, according to court documents. Negotiations between the city and Krause began in October of 2005.

Two months later, a memo from then-interim City Administrator Lori Johnson to the City Council hinted at financial challenges to come.

“The purchase of Pinewood will significantly reduce the funds available to the council for other city projects,” Johnson wrote.

But in April 2006, Elk River agreed to buy Pinewood. The city would lease the course for two years. At the end of the period, the parties would enter into a five-year contract for deed, with the purchase price at $1.8 million.

Some $390,000 was paid to Krause in earnest money; the $1.5 million balance would be paid by contract for deed. Krause also received the two years of lease payments totaling $180,000 and four annual interest payments coming to $338,000.

Before April 6 of last year, all the payments were made on time — even though Elk River lost an average of $82,000 operating the course in each of the last three years, said City Administrator Cal Portner.

When the economy went into a downward spiral, municipal courses across the state suffered. Inver Grove Heights lost $576,000 on its municipal course in 2011 and Buffalo lost $560,000 the same year, according to the state auditor’s office.

But unlike other cities that have owned courses for decades, Elk River was a relatively new player, with a legal out: the contract for deed statute.

“It’s very much like a foreclosure,” said attorney Tom Scott, who was assigned by the League of Minnesota Cities to handle Elk River’s case. “When the city elected not to make the payment, Mr. Krause’s remedy is to keep the money we paid him, plus the golf course.”

  • related content

  • Paul Krause

  • get related content delivered to your inbox

  • manage my email subscriptions

ADVERTISEMENT

Philadelphia 21 4th Qtr 10:27
Washington 24
San Diego 7:25 PM
San Francisco
Minnesota 12/21/14 12:00 PM
Miami
Baltimore 12/21/14 12:00 PM
Houston
Detroit 12/21/14 12:00 PM
Chicago
Cleveland 12/21/14 12:00 PM
Carolina
Atlanta 12/21/14 12:00 PM
New Orleans
Green Bay 12/21/14 12:00 PM
Tampa Bay
Kansas City 12/21/14 12:00 PM
Pittsburgh
New England 12/21/14 12:00 PM
NY Jets
NY Giants 12/21/14 3:05 PM
St. Louis
Buffalo 12/21/14 3:25 PM
Oakland
Indianapolis 12/21/14 3:25 PM
Dallas
Seattle 12/21/14 7:30 PM
Arizona
Denver 12/22/14 7:30 PM
Cincinnati
Phoenix 99 FINAL
New York 90
Portland 6:00 PM
New Orleans
Utah 6:00 PM
Charlotte
Atlanta 7:00 PM
Houston
San Antonio 7:30 PM
Dallas
Indiana 8:00 PM
Denver
Milwaukee 9:30 PM
LA Clippers
Arizona 2 FINAL
Los Angeles 4
Colorado 6:00 PM
Buffalo
Philadelphia 6:00 PM
Toronto
Ottawa 6:00 PM
Montreal
Washington 6:00 PM
New Jersey
Tampa Bay 6:00 PM
NY Islanders
Florida 6:00 PM
Pittsburgh
NY Rangers 6:00 PM
Carolina
Chicago 6:00 PM
Columbus
Nashville 7:00 PM
Minnesota
Calgary 9:00 PM
Vancouver
St. Louis 9:30 PM
San Jose
VA Commonwealth 68 FINAL
Cincinnati 47
Charlotte 78 FINAL
Georgetown 81
SMU 62 FINAL
Michigan 51
Louisville 76 FINAL
Western Ky 67
Mount St Marys 45 FINAL
American Univ 46
Abilene Christian 33 FINAL
Boise State 77
UMass Lowell 63 FINAL
Duquesne 79
South Alabama 65 FINAL
IUPUI 71
Ohio State 74 FINAL
North Carolina 82
Massachusetts 65 FINAL
Providence 85
Syracuse 77 FINAL
Villanova 82
Citadel 61 FINAL
Virginia Tech 64
Belmont 73 FINAL
Fairfield 61
St Bonaventure 69 FINAL
Binghamton 51
Montreat 64 FINAL
Campbell 90
Delaware 74 FINAL
Fair-Dickinson 76
South Florida 62 FINAL
Florida State 75
Vanderbilt 60 FINAL
Georgia Tech 65
SC State 71 FINAL
Houston 63
Missouri 59 FINAL
Illinois 62
Truett-McConnell 55 FINAL
Jacksonville 84
Toledo 83 FINAL
McNeese State 69
Elon 71 FINAL
UNC Greensboro 64
Drexel 68 FINAL
Penn State 73
St Francis-PA 73 FINAL
Rutgers 68
Albany 64 FINAL
Yale 60
PSU-Beaver 74 FINAL
Longwood 106
Eastern Ill 60 FINAL
Indiana State 56
Indiana 82 FINAL
Butler 73
Marshall 58 FINAL
Arkansas State 67
Lafayette 69 FINAL
Kansas 96
Oral Roberts 63 FINAL
Memphis 78
Western Mich 61 FINAL
Northwestern 67
Delaware State 70 FINAL
Oregon 83
Fla Atlantic 56 FINAL
St Francis-NY 61
Arkansas Tech 57 FINAL
Stephen F Austin 94
Howard Payne 50 FINAL
Texas-Arlington 89
UMBC 66 FINAL
Kennesaw St 53
St Josephs (IN) 54 FINAL
Chicago State 77
Eastern Mich 77 FINAL
Missouri State 65
UCLA 42 FINAL
Kentucky 83
UC Davis 81 FINAL
Air Force 75
Houston Baptist 67 FINAL
UC Riverside 78
Davidson 80 FINAL
Coll of Charleston 68
USC Upstate 53 FINAL
Miss State 51
NC Central 94 FINAL
Miss Valley St 60
Illinois State 77 FINAL
Murray State 89
Louisiana 85 FINAL
Northwestern St 89
Oakland 77 FINAL
Pittsburgh 81
Detroit 55 FINAL
Rhode Island 69
Presbyterian 60 FINAL
UT Martin 77
Monmouth 74 FINAL
Wagner 66
Southern U 39 FINAL
Wyoming 57
Iowa State 83 FINAL
Drake 54
Wake Forest 49 2nd Half 4:20
Florida 54
High Point 76 2nd Half 0:49
James Madison 67
Texas Southern 55 2nd Half 0:29
Michigan State 54
New Hampshire 60 FINAL
Sacred Heart 73
Northeastern 78 FINAL
Santa Clara 72
Huston-Tillotson 56 2nd Half 0:26
Texas State 90
Purdue 51 2nd Half 10:44
Notre Dame 63
Prairie View 26 2nd Half 12:01
Sam Houston St 45
Xavier 38 2nd Half
Auburn 25
Bluffton 6:00 PM
Akron
NJIT 6:00 PM
Central Conn St
Hofstra 6:00 PM
Columbia
Boston Univ 6:00 PM
Dayton
Iona 6:00 PM
George Mason
Valparaiso 6:00 PM
IUPU-Ft Wayne
Texas A&M 6:00 PM
Kansas State
Morgan State 6:00 PM
Manhattan
Saint Josephs 6:00 PM
Marist
East Carolina 6:00 PM
UNC-Wilmington
Richmond 6:00 PM
Pepperdine
La Salle 6:00 PM
Towson
Incarnate Word 6:05 PM
UMKC
CS-Bakersfield 6:30 PM
Idaho State
Iowa 6:30 PM
Northern Iowa
Milwaukee 6:30 PM
SIU Edwardsville
Long Beach State 7:00 PM
Texas
TX-San Antonio 7:00 PM
TCU
SE Missouri St 7:30 PM
Arkansas
Lehigh 8:00 PM
Arizona State
New Mexico 8:00 PM
New Mexico St
Oklahoma 8:00 PM
Washington
Utah Valley U 8:00 PM
Weber State
Jacksonville St 8:00 PM
Northern Colorado
St Edwards 8:00 PM
Grand Canyon
NC State 8:30 PM
West Virginia
TX A&M-CC 9:00 PM
CS-Northridge
Cal Poly 9:00 PM
Gonzaga
Fresno State 9:00 PM
Pacific
Montana State 9:00 PM
Portland
Ball State 9:00 PM
San Diego St
South Dakota St 9:05 PM
Utah State
Stanford 10:00 PM
BYU
Utah 10:30 PM
UNLV
Nevada 3 FINAL
Louisiana 16
Utah State 21 FINAL
Texas-El Paso 6
(23) Utah 45 4th Qtr 5:45
Colorado State 10
Western Mich 10 2nd Qtr 8:31
Air Force 13
South Alabama 8:15 PM
Bowling Green
BYU 12/22/14 1:00 PM
Memphis
Marshall 12/23/14 5:00 PM
Northern Ill
Navy 12/23/14 8:30 PM
San Diego St
Central Mich 12/24/14 11:00 AM
Western Ky
Fresno State 12/24/14 7:00 PM
Rice
Illinois 12/26/14 12:00 PM
Louisiana Tech
Rutgers 12/26/14 3:30 PM
North Carolina
NC State 12/26/14 7:00 PM
UCF
Cincinnati 12/27/14 12:00 PM
Virginia Tech
Duke 12/27/14 1:10 PM
(15) Arizona State
Miami-Florida 12/27/14 3:00 PM
So Carolina
Boston College 12/27/14 3:30 PM
Penn State
(25) Nebraska 12/27/14 7:00 PM
(24) USC
Livingstone 77 FINAL
UNC Greensboro 81
Loyola-Chicago 58 FINAL
Dartmouth 70
Georgia Tech 65 FINAL
St Francis-NY 59
Auburn 49 FINAL
St Johns 56
East Tenn St 56 FINAL
Jacksonville St 57
Western Mich 71 FINAL
Detroit 57
Cal-Irvine 42 FINAL
Wright State 80
Gardner-Webb 47 FINAL
Kennesaw St 50
(7) Stanford 40 FINAL
(11) Tennessee 59
Alabama A&M 47 FINAL
Ole Miss 71
Central Michigan 45 FINAL
(1) South Carolina 80
Nebraska Omaha 50 FINAL
Creighton 67
FIU 69 FINAL
Western Carolina 83
Houston 65 FINAL
Nicholls 47
St Thomas Aquinas 45 FINAL
Army 70
St Bonaventure 72 FINAL
Niagara 60
Texas State 57 FINAL
Stetson 75
George Mason 65 FINAL
ULM 53
Grambling 38 FINAL
Kansas State 61
Missouri 79 FINAL
Wake Forest 64
Robert Morris 59 FINAL
Cornell 70
Air Force 44 FINAL
Abilene Christian 80
Hampton 53 FINAL
James Madison 85
American Univ 64 FINAL
MD-Eastern Shore 52
Texas Southern 63 FINAL
TX A&M-CC 68
Tenn Tech 49 FINAL
NC A&T 54
Presbyterian 45 FINAL
NC Central 33
Penn 58 FINAL
Drexel 67
Lipscomb 38 FINAL
Xavier 62
Vermont 40 FINAL
Green Bay 60
Charleston Southern 70 FINAL
UNC-Wilmington 80
Ohio Christian 62 FINAL
Akron 97
Jacksonville 62 FINAL
Murray State 80
(17) Rutgers 66 FINAL
Iona 58
Indiana 88 FINAL
Oakland 61
Indiana State 64 FINAL
SMU 55
Denver 51 FINAL
Purdue 65
TX-San Antonio 48 FINAL
Texas Tech 64
UCF 57 FINAL
Middle Tennessee 79
Campbell 66 FINAL
Bethune-Cookman 55
Florida A&M 67 FINAL
SE Louisiana 69
Northwestern St 61 FINAL
Jackson State 62
Lehigh 61 FINAL
Arizona State 81
Valparaiso 65 FINAL
SIU-Edwardsville 77
Liberty 60 FINAL
Minnesota 74
Wofford 60 FINAL
North Florida 68
Montana State 61 FINAL
Washington St 82
Marshall 56 FINAL
(22) West Virginia 69
Morgan State 40 FINAL
Chattanooga 55
Northeastern 65 FINAL
Harvard 67
Furman 51 FINAL
(15) Georgia 58
(18) Michigan State 65 FINAL
(9) Baylor 84
Ohio U 52 FINAL
Massachusetts 59
Prairie View 48 FINAL
Texas-El Paso 86
Toledo 64 FINAL
Southern Ill 48
High Point 57 FINAL
(12) Nebraska 83
Winthrop 20 FINAL
Wichita State 66
William Jewell 59 FINAL
UMKC 51
Louisiana Tech 52 FINAL
Utah 67
Southern Utah 51 FINAL
Gonzaga 70
Saint Peters 49 FINAL
Loyola-Maryland 59
Hawaii 76 2nd Half 1:06
Loyola Marymount 70
San Jose St 62 2nd Half 0:51
San Francisco 77
CS-Northridge 57 2nd Half 2:57
San Diego State 46
Norfolk State 34 2nd Half 1:53
East Carolina 56
Northwestern 44 FINAL
Eastern Illinois 92
Arizona 37 2nd Half 11:07
Stephen F Austin 42
Oral Roberts 27 2nd Half
Wisconsin 38
Florida Atlantic 23 2nd Half 19:05
New Mexico St 34
La Salle 21 1st Half 11:53
Georgia State 12
(16) Oregon State 20 1st Half 12:40
Nevada 12
Sacred Heart 6:00 PM
Villanova
Delaware 6:00 PM
Cincinnati
Troy 6:00 PM
Tennessee St
Saint Louis 6:30 PM
Utah Valley U
Washington 7:00 PM
UC-Riverside
Pacific 7:00 PM
Long Beach St
Old Dominion 7:00 PM
Miami-Ohio
Austin Peay 9:00 PM
Montana
Lewis-Clark State 9:00 PM
Idaho
(21) Miss State 9:30 PM
Illinois-Chicago
Connect with twitterConnect with facebookConnect with Google+Connect with PinterestConnect with PinterestConnect with RssfeedConnect with email newsletters

ADVERTISEMENT

ADVERTISEMENT

Date/Opponent Time W L Score
2014 preseason     
Aug 8 - vs. Oakland 7 pmX10-6
Aug 16 - vs. Arizona 7:30 pmX30-28
Aug 23 - at Kansas City 7 pmX30-12
Aug 28 - at Tennessee 7 pmX19-3
2014 regular season     
Sep 7 - at St. Louis NoonX34-6
Sep 14 - vs. New England NoonX30-7
Sep 21 - at New Orleans NoonX20-9
Sep 28 - vs. Atlanta 3:25 pmX41-28
Oct 2 - at Green Bay 7:25 pmX42-10
Oct 12 - vs. Detroit NoonX17-3
Oct 19 - at. Buffalo NoonX17-16
Oct 26 - at Tampa Bay NoonX19-13 ot
Nov 2 - vs. Washington NoonX29-26
Nov 9 - Bye
Nov 16 - at Chicago NoonX21-13
Nov. 23 - vs. Green Bay NoonX24-21
Nov. 30 - vs. Carolina NoonX31-13
Dec 7 - vs. NY Jets NoonX30-24 ot
Dec 14 - at Detroit 3:25 pmX16-14
Dec 21 - at Miami Noon
Dec 28 - vs. Chicago Noon

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

question of the day

Poll: How will the Vikings do Sunday against Miami?

Weekly Question

ADVERTISEMENT

 
Close