Firm Withdraws Contract Bid on Encino-Balboa Golf Course

One of two golf companies in competition for a controversial contract to run concessions at the Encino-Balboa Golf Course has withdrawn, just as the Los Angeles City Council was preparing to intervene in the contract fracas for the second time.

While continuing to assert it was the best-qualified bidder, the company, American Golf Corp., cited “substantial controversy regarding the selection process” in a letter to the city Recreation and Parks Department announcing its withdrawal.

The 10-year contract to operate the driving range and pro shop and provide lessons at the course is estimated to be worth between $3 million and $5 million yearly.

Controversy erupted when recreation and parks commissioners recommended American Golf over another company, Family Golf Centers. The recommendation was made even though American Golf had been given a lower rating than Family Golf in a staff analysis.

An uproar followed as critics, including golfers, contended the commission had shown favoritism. They persuaded the council to scrap the contract and restart the process. But given a second chance, the commission failed to award even an interim contract, voting instead for a delay.

American Golf’s announcement came just as the council voted to step in and take over the contract process on Tuesday. Family Golf is expected to bid on the contract.