Amid budget crisis, San Diego is foregoing millions in potential revenue from its golf courses, audit finds

A new audit finds San Diego is missing out on millions that could help close budget deficits by not aggressively updating leases for Fairbanks Ranch Country Club and seven other golf facilities the city owns but doesn’t operate.

Those properties include Tecolote Canyon Golf Course, where a planned full closure starting this Sunday has prompted speculation about the course’s future.

The 47-page audit criticizes city officials for allowing expired leases to remain in place at below-market rates despite golf’s sharp increase in popularity since the COVID-19 pandemic began.

In fiscal year 2024, the city earned only $3.7 million in lease revenue despite the eight properties — seven courses and the Lake Hodges driving range — generating $34 million in revenue.

The audit says Fairbanks Ranch, which generated $16.7 million in revenue that year, has particular potential to be a cash cow for the city. The existing lease pays the city less than $1 million a year.

The audit also recommends the city aim to boost the value of its golf properties by strengthening its evaluations of course operators, studying revenue trends, inspecting courses more frequently and requiring operators to pay for renovations.

“Reporting on performance and lease terms is essential to identify performance trends...