David Boles, who previously served as the course’s golf professional for about six months in 2023, returned three weeks ago to take on the combined role of golf pro and director of operations. He said he and new Frank Glick American Legion Post 46 Commander Troy Underhill are actively working to resolve the situation and move the course and lounge in a more positive direction in the future. After a brief tenure at the Lake Creek Golf Course between Storm Lake and Alta in northwest Iowa, Boles, a Coast Guard veteran and a veteran in the golf industry, agreed to come back with the support of the executive board and the Legion’s members.

Without the sales tax permits, Boles said, they can’t legally sell any goods on the premises.

“That decision by the state had been coming for, I would say, about 18 months, for monthly sales tax (reports) that had not been filed monthly, and the state was using estimated numbers of what that revenue might be. And it inflated into a six-digit number, and I’m questioning that number because it isn’t actually the base number we started with,” Boles said. “In order to have that number, we would have to be a $4.5 million company, and we’re not near that.”

He isn’t arguing that penalties and interest will need to be paid or that taxes weren’t filed, Boles added, but he doesn’t believe the monthly revenue estimate the state used is correct. Once the numbers are clarified, he said, they can refile, pay the taxes owed and reapply for a new sales tax permit.

A sign on the American Legion Post 46 building informs the public that the lounge is closed until further notice.

The goal is to reopen by mid-November, give or take a few days. When asked to summarize what led up to the current conundrum the course faces, Boles said the seven percent sales tax simply wasn’t paid to the state as legally required for years and was instead used for other resources and expenditures.

“I don’t know if it was an affordability issue or just an issue to keep (the money) and use it. I don’t know. We’ll never know,” he said. “That’s where we’re at.”

There was also a separate issue with Marshalltown Water Works, according to Boles, due to the Legion’s leaders believing they had a $40,000 credit for the irrigation system and later learning they owed that amount instead.

“An agreement is now made with the city to pay the water bill for the grounds plus $1,000, and that $1,000 will chip away at that balance. So they were good to work with us and come to an agreement,” he said.

As Boles, Underhill and the board navigate through the messy situation, members and passholders will still be able to golf, and official Legion and Legion Auxiliary meetings will still be held at the post building. And while the rumor mill often tends to run wild in these situations, Boles hopes he can reassure those who frequent the course and the lounge that they will be back.

“We’re correcting a major issue that affected not only the Legion. It affects the community. It affects the patrons that want to come here, and we’re gonna correct it. And we’re gonna reopen, and we’re gonna have a bigger and brighter future,” he said. “We need those members. We’re gonna be open in 2025. By the time we get open, it’s gonna be late in the golf season, so that may go. But the lounge will be open again for booking parties and things through the winter. And we’ll just open up operations and reschedule, make contact with our customers and our vendors and move forward in a proactive manner.”

The sales tax flap was something Boles knew would come to a head at some point, but he chose to take the job regardless and firmly believes in the future of the course and the lounge.

“We are where we are, and we’re gonna face it. We’re gonna work through it. I’m gonna determine what the correct amount is, and we’re gonna settle that issue and file monthly like every business should and do right. That’s the bottom line,” he said.

The Legion previously came under the scrutiny of the Internal Revenue Service (IRS) and the Marshall County Sheriff’s Office (MCSO) almost a decade ago under the leadership of former Golf Pro/Clubhouse Manager John Schrempf. According to a T-R story from Sept. 18, 2015, a search warrant was executed at the clubhouse office, and the Marshalltown Police Department (MPD) passed the investigation off to the MCSO because Randy Kessler, who was an MPD detective at the time, was also serving as the commander of the Legion post.

State and federal records indicate that no criminal charges were filed in connection with the investigation, and Schrempf is now the head golf professional at Short Hills Country Club in East Moline, Ill. Iowa Department of Revenue Spokesman John Fuller said that all of the information related to the Legion’s finances was confidential, and he could not share anything publicly.

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Contact Robert Maharry at 641-753-6611 ext. 255 or rmaharry@timesrepublican.com.