Nappanee City Council members approved a Build, Operate, Transfer agreement with Ace Builders to construct a new clubhouse at McCormick Creek Golf Course. Photo from McCormick Creek Golf Course.

News Release

NAPPANEE — Nappanee City Council members approved a Build, Operate, Transfer agreement with Ace Builders to construct a new clubhouse at McCormick Creek Golf Course, advancing a $4.8 million project expected to break ground in mid-September.

Mayor Phil Jenkins told the council the project had cleared several procedural steps, including reimbursement approval in June that allowed construction preparation to begin.

The Board of Public Works and Safety is expected to approve the agreement Monday, Aug. 11, while the Redevelopment Commission and Redevelopment Authority finalized a related lease agreement in late July. Bond closing for the project is slated for October.

Construction is anticipated to begin around the week of the Nappanee Apple Festival and wrap by the summer of 2026.

Pete Yoder of Ace Builders, who attended the meeting, said the building has already been ordered. The clubhouse will be built on the south side of the golf course, overlooking a pond near the sledding hill. The facility will include a commercial kitchen, a pro shop, and indoor golf simulators aimed at boosting winter revenue. The design also accommodates potential future expansion to a full-service restaurant.

City financial advisor Baker Tilly previously reported the clubhouse will need to generate $555,000 annually to cover operating and financing costs. In 2024, the course brought in nearly $697,000, with projected revenue for 2025 estimated at more than $806,000.

City Attorney Brian Hoffer noted the agreement lacked a formal legal description of the project site, though a drawing was included. He indicated that a legal description must be added.

Councilor Ben Leavitt raised questions regarding financial responsibility, noting the Redevelopment Commission had expressed concerns about the potential risk if the golf course failed to meet revenue expectations. Jenkins clarified that, under the lease, the commission would be the lessee and thus technically responsible. Leavitt also confirmed that financial forecasts were based on current revenue levels and asked about how future restaurant revenue might be treated.

Jenkins explained that if a full-service restaurant were introduced later, it would be considered separate revenue. He added that partnering with a for-profit operator would raise legal considerations due to the project’s tax-exempt bond status, and such a move likely couldn’t occur until after the bond was paid off. In the meantime, the clubhouse will expand its current concession offerings.

The agreement passed unanimously among members present. Councilors Dustin Geyer and Austin Yoder were absent.

Following the meeting, Jenkins outlined the BOT method for project delivery. Under this structure, the developer assumes the upfront costs, engineering responsibilities, and project risks, offering a guaranteed maximum price and clear scope of work.

The city takes ownership once construction is complete. Jenkins said this method avoids change orders and cost overruns and has gained popularity in recent years. Nappanee previously used BOT for other capital projects, including a new fire station currently under construction.