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AGENDA
ORO VALLEY TOWN COUNCIL
SPECIAL / STUDY SESSION
July 12, 2017
ORO VALLEY COUNCIL CHAMBERS
11000 N. LA CAÑADA DRIVE
SPECIAL SESSION AT OR AFTER 4:00 PM
CALL TO ORDER
ROLL CALL
SPECIAL SESSION AGENDA
1. Request for approval of Conceptual Architecture for the existing McDonald’s restaurant located at the
northeast corner of Oracle and Magee Road
ADJOURNMENT
STUDY SESSION AT OR AFTER 4:00 PM
CALL TO ORDER
ROLL CALL
STUDY SESSION AGENDA
1. Presentation and discussion regarding consultant report for Town golf and restaurant operations
ADJOURNMENT
POSTED: 7/7/2017 at 5:00 p.m. by pp
When possible, a packet of agenda materials as listed above is available for public inspection at least 24 hours prior
to the Council meeting in the office of the Town Clerk between the hours of 8:00 a.m. – 5:00 p.m.
The Town of Oro Valley complies with the Americans with Disabilities Act (ADA). If any person with a disability needs
any type of accommodation, please notify the Town Clerk’s Office at least five days prior to the Council meeting at
229-4700.
CC-2332 Item # 1.
Town Council Study Session
Meeting Date:07/12/2017
Requested by: Bayer Vella
Submitted By:Patty Hayes, Community Development & Public Works
Department:Community Development & Public Works
Information
SUBJECT:
Request for approval of Conceptual Architecture for the existing McDonald’s
restaurant located at the northeast corner of Oracle and Magee Road
RECOMMENDATION:
The Conceptual Design Review Board (CDRB) will consider the proposed architecture at
their July 11, 2017 meeting. Staff has recommended approval of the applicant's request
to CDRB and will provide an update regarding the board's recommendation during the
meeting.
EXECUTIVE SUMMARY:
The purpose of this request is to consider Conceptual Architecture regarding the
remodel of an existing McDonald’s restaurant (Attachment 1) located at Oracle Road
and Magee Road (Attachment 2).
The proposed remodel of the restaurant would result in a contemporary design that
includes the following:
Repainting stucco walls in earth tones with a contrasting entryway feature
Retain brick wainscoting
Replace the existing red roof with a corrugated metal parapet style roof
New metal windows and door overhangs
A judicious use of yellow as an accent on the building
The request is in conformance with the Town’s Design Principles and applicable Design
Standards (Attachment 3).
The CDRB will consider the applicant's request during the July 11, 2017 meeting. An
update regarding the board's recommendation will be provided during the meeting.
BACKGROUND OR DETAILED INFORMATION:
The proposed development is located in an area where many of the buildings are 20
to 30 years old. Each business was built as an independent development resulting in few
cohesive design elements in the area. McDonalds' proposed remodel will not only
enhance the existing architecture of the restaurant, but also improve the architectural
theme for the entire corner.
Existing Site Conditions:
Zoning: C-2
Lot size: 1 acre
Approvals to Date
Restaurant built in 1990
Annexed into Oro Valley 2003
Conceptual Architecture Design Principles and Design Standards review
The Zoning Code establishes Design Principles and Design Standards to evaluate
architectural projects. A brief summary of the projects conformance with each is provided
below and a more extensive analysis is provided in Attachment 3.
Design: The proposed remodel of the restaurant would remove the red roof and install
new parapet walls, a main entry feature and window and door overhangs with an
updated color palette.
Scale, height and mass: The mass of the building will be broken up by providing a new
contrasting entry feature and varied colors along with the original design that provides
varied roof heights on the building.
This design review is for a building that has been located on the site since 1990. There
is no expansion of the building size or parking with the proposed remodel. The overall
height of the building will not increase.
Facade Articulation: The proposed remodel utilizes metal window and door overhangs
along with contrasting colors to provide variety to the existing building and create
additional visual interest. The character of the building will be enhanced by incorporating
stucco, metal and brick materials.
Screening: The roof top mechanical equipment will be screened from view by the
corrugated metal parapet style roof. The location of the refuse containers and drive-thru
will not change with this remodel but all exterior elements will be updated with new paint
colors.
The request is in conformance with the Town’s Design Principles and applicable Design
Standards.
Public Participation: A neighborhood meeting is not required by the Zoning Code. Public
notice has been provided as follows:
Posting at Town Hall
Posting on the Town’s website
All affected HOA’s
The CDRB will consider the applicant's request during the July 11, 2017 meeting. An
update regarding the Board's recommendation will be provided during the meeting. The
CDRB staff report has been provided in Attachment 4.
FISCAL IMPACT:
N/A
SUGGESTED MOTION:
I MOVE to approve the McDonald’s Conceptual Architecture based on the finding it is in
conformance with the Zoning Code.
OR
I MOVE to deny the McDonald’s Conceptual Architecture based on the finding that
_____________________.
Attachments
Attachment 1 Applicants Submittal
Attachment 2 Location Map
Attachment 3 Design Principles & Design Standards
Attachment 4 CDRB Report and Attachments
Attachment 1
Attachment 1
Attachment 1
McDonald’s Conceptual Architecture
Location Map (OV1701209)
Attachment 2
Linda Vista (not a thru street)La Canada DriveCalle ConcordiaCalle El MilagroCalle Buena VistaMagee Road
ATTACHMENT 3
McDonald’s Restaurant Remodel
DESIGN PRINCIPLES AND STANDARDS ANALYSIS
Conceptual Architectural Design Principles, Section 22.9.D.5.b
The Zoning Code establishes Design Principles to evaluate architectural projects. An
evaluation of the applicant’s proposal with these Design Principles (in italics) is provided
below:
Design: Building architectural design shall be appropriate for the climate and
characteristics of the Sonoran Desert, including indigenous and traditional textures,
colors, and shapes found in and around Oro Valley. All development shall maintain
and strengthen the high quality of design exemplified in Oro Valley through project
creativity and design excellence.
This remodeling project will include shapes, textures and colors found in Oro Valley
by incorporating:
• Stucco walls painted earth tone colors
• An entry feature with contrasting colors
• Removal of outdated red roofing
• New parapet style roofing in the form of corrugated metal
• Varied roof lines
• Metal window and door overhangs
The project introduces a new contemporary design into an area where many
buildings have not been architecturally updated in many years.
Scale, height and mass: building scale, height and mass shall be consistent with
town-approved intensity of the site, designated scenic corridors and valued mountain
views. Building shall be designed to respect the scale of adjoining areas and should
mitigate the negative and functional impacts that arise from scale, bulk and mass.
• Height: The height of the building does not significantly change with
the proposed remodel. No additional height is added therefore not
increasing the scale of the existing building.
• Mass:
The building mass is broken up by the use if different textures and
materials and overhangs along with a new entry feature. The size of
the existing building is not increased with this remodel, therefore there
will be no increase in overall mass of the building.
Facade Articulation: All building facades shall be fully articulated, including variation
in building massing, roof planes, wall planes, and surface articulation. Architectural
elements including, but not limited to, overhangs, trellises, projections, awnings,
insets, material, and texture shall be used to create visual interest that contributes to
a building’s character.
The proposed architecture creates visual interest through the use of varying roof
lines created by the existing height variations of the building along with a new entry
feature and overhangs.
Screening: building design and screening strategies shall be implemented to conceal
the view of loading areas, refuse enclosures, mechanical equipment, appurtenances
and utilities from adjacent public streets and neighborhoods.
The location of loading zones and refuse containers will not change with this
remodel other than new paint in earth tone colors. The mechanical equipment will
continue to be screened from view by the parapet walls .
Addendum “A” Design Standards
The proposed Conceptual Architecture is in conformance with the Design Standards by
providing facade articulation, an updated color palette and a varied material palette. The
design is consistent with a contemporary architectural style.
Attachment 1
Attachment 1
Attachment 1
McDonald’s Conceptual Architecture
Location Map (OV1701209)
Attachment 2
Linda Vista (not a thru street)La Canada DriveCalle ConcordiaCalle El MilagroCalle Buena VistaMagee Road
McDonald’s Conceptual Architecture
Site Photos (OV1701209)
Attachment 3
Linda Vista (not a thru street)La Canada DriveCalle ConcordiaCalle El MilagroExisting McDonald’s
Surrounding
buildings on
same corner
Recently remodeled building across the street
CC-2330 Item # 1.
Town Council Study Session
Meeting Date:07/12/2017
Requested by: Kristy Diaz-Trahan
Submitted By:Kristy Diaz-Trahan, Parks and Recreation
Department:Parks and Recreation
Information
SUBJECT:
Presentation and discussion regarding consultant report for Town golf and restaurant
operations
RECOMMENDATION:
Representatives from the consultant team of WLB, National Golf Foundation (NGF) and
Forest Richardson & Associates will give a presentation summarizing their
recommendations as a result of conducting a feasibility study on the golf and food &
beverage operations at the Town's Community Center.
EXECUTIVE SUMMARY:
In January 2017, the Town published a request for proposals (RFP) for Land Planning
and Economic Viability Consulting Services for the Town of Oro Valley El Conquistador
Golf & Restaurant operations. The WLB Group, in partnership with National Golf
Foundation (NGF) Consulting and Forest Richardson & Associates, were awarded the
contract.
The consultants' report and recommendations are included in Attachment A.
BACKGROUND OR DETAILED INFORMATION:
An RFP for Land Planning and Economic Viability Consulting Services for the Town of
Oro Valley El Conquistador Golf and Restaurant operations was published January 30,
2017. This feasibility study was intended to provide policy makers with sufficient
information to allow them to consider continuation of current food and beverage
operations, as well as the merits of continuing the current golf operations compared to
re-purposing the land (or portions of the land) for alternative recreation uses.
The project focused on the economic viability of two primary considerations: (1) land use
planning and (2) food and beverage operations.
Alternative land use options to be considered were as follows:
Maintain the existing 45-holes of golf course1.
Reduce the number of holes from 45 to 362.
Reduce the number of holes from 45 to 273.
Reduce the number of holes from 45 to 184.
Food and beverage operation considerations were as follows:
Maintain current operational arrangement1.
Restructure the existing operations2.
The WLB Group, in partnership with NGF Consulting and Forest Richardson &
Associates, were awarded the contract. Their work included research and analysis of
background materials to include financial performance reports for the food and beverage
operations, golf operations, acquisition and management agreements, bond covenants,
maps, facility or structural assessments, site plans, Town ordinances, and other relevant
information.
In addition, they conducted multiple interviews with Town representatives and key
external stakeholders, which include the Troon management team. Furthermore, they
met with current golf members, homeowners who live within the El Conquistador and
Pusch X9 golf course communities, and other area golf courses.
As a result of their extensive analysis and outreach feedback, the consultant team has
compiled an in-depth report with their findings and recommendations. Highlights include:
La Cañada Golf Courses
Transition from 36 to 27 holes of golf
Food and beverage operations
Competitively bid the operations to a third-party vendor
Pusch Ridge Golf Course
"Dirty Dozen" Concept
Reconfigure the current 9-hole course to a 12-hole, par 3 golf course
The full report is included as Attachment A.
FISCAL IMPACT:
This consultant study was funded in the Community Center Fund in the amount
of $50,000.
SUGGESTED MOTION:
N/A
Attachments
Oro Valley Final Report
El Conquistador Golf & Tennis
Assessment & Recommendations
for the
Town of Oro Valley
Golf Program
Prepared for
The Town of Oro Valley, Arizona
Prepare by
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report
July 5, 2017
Table of Contents
INTRODUCTION AND EXECUTIVE SUMMARY........................................................................... 1
Purpose................................................................................................................................... 1
Background ............................................................................................................................. 1
NGF Review –2017 ................................................................................................................2
Summary of Key Findings ....................................................................................................... 3
Key Findings on El Conquistador Golf & Tennis................................................................................3
Key Findings on Market and External Factors...................................................................................4
NGF Recommendations .......................................................................................................... 5
Basic Oversight and Structure............................................................................................................5
Physical Improvement Recommendations.........................................................................................5
Pusch Ridge Considerations..............................................................................................................6
Basic Operational Recommendations................................................................................................6
Alternate Use Considerations.................................................................................................. 7
Financial Overview Summary.................................................................................................. 7
Summary Discussion – NGF Projections...........................................................................................7
Summary Matrix of NGF/FRA Projections .........................................................................................9
Summary Conclusion .............................................................................................................10
EXTERNAL FACTORS AFFECTING THE OPERATION OF PUBLIC GOLF COURSES ............11
Demographics, Economy and Weather ..................................................................................11
Demographic Analysis – Local Permanent Residents.....................................................................11
Key Economic Factors .....................................................................................................................12
Golf Market Supply and Demand Indicators ...........................................................................14
Golf Industry Overview - 2016..........................................................................................................14
Comparative Market Data ................................................................................................................15
Visitor Golf Demand .........................................................................................................................16
Latent Demand.................................................................................................................................16
Local Golf Supply .............................................................................................................................17
Golf Course Market Supply / Demand Summary.............................................................................17
Local Competitive Golf Market................................................................................................18
Competitive Public Access Golf Facilities Map................................................................................18
Summary Information.......................................................................................................................19
Key Findings – Competitive Golf Market..........................................................................................22
City of Tucson Municipal Golf System .............................................................................................23
External Factors Summary.....................................................................................................24
SUBJECT FACILITY – EL CONQUISTADOR GOLF & TENNIS..................................................25
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report
July 5, 2017
Inventory of Facilities – El Conquistador Golf & Tennis ..........................................................26
El Conquistador G&T Site Overview.......................................................................................26
Site Positives....................................................................................................................................27
Site Negatives ..................................................................................................................................27
Aerial View – El Conquistador G&T .................................................................................................28
Aerial View – Pusch Ridge GC.........................................................................................................28
Review of Physical Plant – El Conquistador Golf & Tennis.....................................................29
Golf Courses.....................................................................................................................................29
Clubhouse Review ...........................................................................................................................30
Driving Range/Practice Areas..........................................................................................................31
Community Center Review...............................................................................................................31
Other Structures and Facilities.........................................................................................................32
Review of Golf Course Condition at ECGT.............................................................................33
Global Review of General Golf Course Conditions..........................................................................33
Irrigation and Water Issues ..............................................................................................................34
Safety Issues....................................................................................................................................34
Maintenance Staffing and Budget....................................................................................................35
Review of Pusch Ridge Golf Course Conditions .....................................................................36
Design ..............................................................................................................................................36
Conditions and Safety......................................................................................................................36
Irrigation & Water Issues..................................................................................................................37
Review of Golf Operations......................................................................................................38
Organizational Structure...................................................................................................................38
Staffing .............................................................................................................................................38
Marketing and Technology...............................................................................................................40
Golf Playing Fees.............................................................................................................................41
Concession Operations (The Overlook and Pro Shop)....................................................................43
Golf Cart Operations ........................................................................................................................44
Driving Range Operations................................................................................................................44
Player Development Programming ..................................................................................................45
Organized Golf Activities..................................................................................................................45
Other Operational Issues .................................................................................................................46
System-Wide Operational Performance .................................................................................47
Rounds.............................................................................................................................................47
Total Facility Revenue......................................................................................................................48
On-Site Operating Expenses............................................................................................................50
Pusch Ridge Revenue and Expense Review...................................................................................51
Food and Beverage Operation (The Overlook)................................................................................52
Combined Facility Summary and Discussion...................................................................................53
Summary – El Conquistador Golf & Tennis ............................................................................54
NGF RECOMMENDATIONS FOR EL CONQUISTADOR G&T AND ORO VALLEY....................56
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report
July 5, 2017
NGF Observations on El Conquistador Golf & Tennis ............................................................56
Basic Oversight and Structure................................................................................................57
Structure Options .............................................................................................................................57
Structure Considerations..................................................................................................................58
NGF Recommendation.....................................................................................................................58
Physical Upgrade Recommendations .....................................................................................59
El Conquistador Reconfiguration Options (Conquistador & Cañada Courses) ...............................59
Summary of El Conquistador Renovation Options...........................................................................63
Pusch Ridge Renovation – The “Dirty Dozen” Course ....................................................................63
Basic Operational Recommendations.....................................................................................65
Recommendations to Better Employ Technology............................................................................65
Recommendations for Increased Participation from Less-Traditional Segments............................66
ALTERNATE USE CONSIDERATIONS FOR GOLF COURSE PROPERTY................................67
Course Closure Options.........................................................................................................67
Closure of all 36-holes at El Conquistador.......................................................................................67
Closure of the Entire Pusch Ridge Facility:......................................................................................68
Parcel Repurpose Options .....................................................................................................69
Scale of Repurposing Options..........................................................................................................69
Cost –vs- Revenue Impacts of Repurposing Options......................................................................70
Development Repurposing...............................................................................................................71
Specific Repurposing Considerations at El Conquistador G&T.......................................................71
Specific Repurposing Considerations at Pusch Ridge GC..............................................................72
FINANCIAL ANALYSIS OF EXPECTED EL CONQUISTADOR GOLF & TENNIS
PERFORMANCE..........................................................................................................................75
Summary of Oro Valley Golf Projections.................................................................................75
“As-Is” Base Scenario – Full 45 Hole Operation..............................................................................75
Option A – ECGT Renovation w/ 36 Holes & New Pusch Ridge Concept ......................................78
Option B – ECGT Renovation w/ 27 Holes & New Pusch Ridge Concept ......................................80
Option C – ECGT Renovation w/ 18 Holes & New Pusch Ridge Concept ......................................82
Pusch Ridge – Projected Performance............................................................................................84
Summary Discussion – NGF/FRA Projections........................................................................87
Summary Matrix of NGF/FRA Projections .......................................................................................88
SUMMARY STATEMENT.............................................................................................................89
APPENDICES...............................................................................................................................90
Appendix A – Golf Course Life Cycle......................................................................................91
Appendix B – Local Demographic, Demand and Supply Data................................................92
El Conquistador G&T Local Demographics .....................................................................................92
El Conquistador G&T Golf Demand and Supply Data .....................................................................93
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report
July 5, 2017
Appendix C – Summary of Conceptual Reconfiguration Plan Options ....................................95
El Conquistador Reconfiguration Option A ......................................................................................95
El Conquistador Reconfiguration Option B ......................................................................................99
El Conquistador Reconfiguration Option C....................................................................................103
“Dirty Dozen” 12-hole, Par-3 Pusch Ridge Golf Facility.................................................................107
Appendix D – National Rounds Played Report .....................................................................110
APPENDIX E – Before and After Photo Simulations .............................................................112
APPENDIX F – Irrigation System Evaluation and Recommendations Report .......................113
APPENDIX G – Existing Conditions Report..........................................................................114
APPENDIX H – Parcel Repurposing.....................................................................................115
APPENDIX I – Community Meeting Notes............................................................................116
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 1
July 5, 2017
Introduction and Executive Summary
PURPOSE
WLB Group, Inc. along with the National Golf Foundation Consulting, Inc. (“NGF”) and Forrest
Richardson & Associates (“FRA”) were retained by the Town of Oro Valley, Arizona (“Town”) to
assist in evaluating the operational and economic performance of the Town’s public-access golf
system. This three-course, 45-hole golf system is known collectively as the “El Conquistador Golf
& Tennis” (“El Conquistador G&T” or “ECGT”), and includes the Cañada and Conquistador 18-hole
golf courses, plus a separate 9-hole Pusch Ridge Golf Course. The Town is seeking to have a
strategic review of the golf facilities, along with the adjacent community center, and evaluate the
long-term potential and review options to enhance economic performance. The following report
details findings and recommendations on the ECGT, with analysis of the physical and economic
condition of the facility and the market environment within which it operates. The NGF has
provided a set of recommendations to the Town that will improve overall operations and economics
of the golf facility under the assumption that the property will continue to operate as a golf course.
BACKGROUND
The Town owns and operates a 45-hole golf facility located on two separate sites in Oro Valley.
The facility includes a main 36-hole campus at El Conquistador Golf & Tennis, and a separate 9-
hole course located approximately 3.0 miles away at the El Conquistador resort. The courses are
all located within Oro Valley and are fully integrated within master-planned communities with
considerable home frontage on the golf courses. The golf facility is part of the Town of Oro Valley
community offering, and includes a considerable amenity footprint with services ranging from
tennis, swimming and fitness in addition to golf. The ECGT is operated by the Town via contract
with Troon Golf Management (“Troon”), a nationally recognized golf management entity that was in
place to manage ECGT under its previous owner, and has considerable experience in managing
high quality golf facilities nationwide, including other clubs in the Tucson market area.
As a whole, the El Conquistador G&T and Pusch Ridge golf facilities combined to produce total
top-line revenue of just over $2.9 million in 2016, the vast majority of which comes from golf fees,
member dues and F&B sales. The on-site operating expenses at the facility totaled around $5.2
million (including cost of sales), resulting in a roughly ($2.3 million)loss on operations (excluding
other necessary costs such as capital upgrades and new investment in infrastructure). The current
financial condition is worse than most public sector golf operations in the U.S, where 67% of
municipal golf course operations are able to cover on-site expenses, but not able to cover both on-
site expenses and capital improvement costs (only about 33% can cover both).
The Town’s golf facility has declined in performance for a number of reasons, some of which are
not controllable by the Town or Troon. Factors such as the recent recession, the declining interest
in golf, growth in the number of competing golf courses and even ECGT conditions have all
contributed to the recent decline. One key aspect that the NGF has reviewed is the sheer size of
this facility, 45 holes, at a time when golf demand is on the decline and the cost to maintain
premium conditions is on the rise. The NGF has also documented a divided customer base for this
facility, with long-tenured golf members, many of whom live in the adjacent residential community,
and a more transient, daily fee golfer seeking high quality at an affordable rate. The review and
recommendations contained in this report from NGF are designed to help the Town understand
what actions it can take to help maximize the performance of the facility, in light of market realities
and facility limitations.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 2
July 5, 2017
NGF REVIEW – 2017
In 2017, WLB Group, Inc. along with the NGF and FRA were retained by the Town of Oro Valley to
assist with evaluating the golf club, and to make recommendations to help ensure the long-term
viability of the facility. This includes a thorough review of ECGT on an ‘as-is’ basis, as well as an
examination of the facility’s capital needs and effects of deferred maintenance. It is expected that
the results of this NGF study will be used by the Town as a guide for the future of golf, and to help
prepare a more formal strategic plan that may include a reduction in the size of the facility (number
of holes) and/or a change in operation and maintenance. The review includes an evaluation of the
system as it is presently operated and assumes continued operation as a golf facility. The Town
can always consider outright closure of the golf courses, although this would create a separate set
of issues and pitfalls to be reviewed, and are not analyzed in this report.
The findings and recommendations presented by NGF in this report are based on NGF and FRA
experience, knowledge of golf industry best practices, and a review of the El Conquistador G&T
facility. WLB provided base mapping and general land planning input on behalf of the team. NGF
and FRA completed tours, meetings with key personnel and stakeholder groups, and collected
insights and opinions during the Spring of 2017.
NGF/FRA activities completed to date include meetings with Town staff, golf course staff, staff at
other area golf courses and two public meetings to solicit community input. The WLB/NGF/FRA
team also completed a comprehensive tour of the facility and all its components, and complete
interviews of the on-site manager and golf superintendent.
The key components and issues of this report include:
x Overall condition and operating efficiencies of El Conquistador G&T and Pusch Ridge.
x A review of golf industry standards and norms of operation.
x Status of the broader Oro Valley / southeast Arizona market area, with focus on
external issues that can affect public golf operations, including the balance between
demand and supply.
x A comprehensive review of the subject ECGT and Pusch Ridge’s present physical
condition and capital needs.
x An estimate of the cost of upgrades that may be needed at ECGT and Pusch Ridge.
x Benchmarking El Conquistador G&T golf operations with industry standards and norms.
x Provide recommendations on the appropriate mix of facilities in relation to facility size,
number of holes, amenities offered, quality of services and pricing.
x Review of economic projections under a variety of configurations and number of holes,
ultimately leading to a NGF/FRA recommendation for ECGT’s optimal configuration.
The NGF consulting engagement was managed by Richard B. Singer, Senior Director of
Consulting Services, with assistance from Forrest Richardson, ASGCA, Golf Course Architect; Ed
Getherall, Director of Consulting Services; and Jodi Reilly, Consulting Administrator. In addition to
meetings with Town officials and golf course personnel, the NGF consultants collected materials to
aid in understanding the local market area, weather data, other regional municipal golf operations,
and golf operations in general. NGF also collects considerable information and data on the golf
industry as a regular part of our organization’s work, and much of this information and data is
presented throughout this report.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 3
July 5, 2017
SUMMARY OF KEY FINDINGS
Town of Oro Valley is operating a popular golf facility with a mix of amenities that is marketable in
the local area. However, this facility has a history of operation as a semi-private club with a mix of
members and daily fee play, and even though it is owned by the Town and intended to be a
community public facility, it still has a perception in the market as a private club. The operating and
service profile in place at the facility is also more commensurate with a private club, where service
to members is first and foremost, with daily fee customers having a much lower focus. This is also
shown in the economics of the club, where members account for more than 50% of the revenue,
but also contribute to a much higher operating expense.
This executive summary provides an “at-a-glance” summarization of the NGF review, detailing the
main findings and NGF recommendations for the Town golf facility. Additional details and support
data can be found in the full body of our report and its appendix.
Key Findings on El Conquistador Golf & Tennis
El Conquistador G&T is well located in Oro Valley, but has limited appeal for customers beyond
the local Oro Valley area. With an offering of multiple golf courses, ECGT can provide service to a
wide range of golf customers, but the club is having difficulty filling up all 45 holes of golf. The
adjacent community center and recreation facilities add greatly to the appeal of the club and its
economic potential. The 9-hole Pusch Ridge GC is generating a very low level of activity and
revenue, and is declining in condition. Other findings from NGF’s review of ECGT:
1. The overall condition of the facility is good, reflecting well on the Town’s contracted
operator (Troon). NGF has estimated a total of $5.1 million in required repairs over the
next few years, in addition to the $6.0 million estimated by the Town for clubhouse and
community center improvements. This investment also includes upwards of
$170,000+/- in annual recurring items.
2. The NGF does not believe the facility is being mismanaged in any way, and
uncontrollable factors (economy, competition, etc.) are more impactful to this operation
than its management. Transitioning from a private golf club located inside a residential
community with homes on the golf courses to a Town-owned community public golf
course is always a challenge and will take time to fully implement. Of particular concern
to NGF is:
a. The golf course facility that is spread out over a wide area with multiple
tracts of property all separated by residences and roadways adds to the cost
of maintenance and operations.
b. The ECGT clubhouse is aging with space allocation problems, plus ADA-
related deficiencies that must be addressed in any renovation.
c. The total of 45 holes is a lot of golf to maintain and manage effectively. The
Town will likely find that some reduction in golf holes at ECGT could lead to
the facility becoming more manageable and more appealing to golfers.
3. The uncertainty surrounding the future of ECGT is impacting the facility’s ability to
market effectively. The ECGT would benefit from improvements to its technology and
marketing, with enhanced focus on daily fee golfers, tournaments and outings.
4. The playing fees and concession prices at ECGT are generally appropriate for the
market and the overall quality of the facility offering. However, the pricing program for
daily fee golf at ECGT is somewhat confusing for the average golfers and may impact
demand at certain times of the year, day of week or time of day.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 4
July 5, 2017
5. ECGT produces strong ancillary revenue in merchandise and F&B. The strong F&B
revenue is somewhat mitigated by a very high F&B operating expense leading to an
almost ($260,000)loss on the Overlook. The revenue from the Overlook is higher than
standard, showing the support from non-golf business and banquets helping to enhance
revenue above and beyond the service of golfers.
6. The total on-site Town operating loss was about ($2.2 million)in 2016, before
depreciation or capital improvements. This loss is off-set by the City’s program of
dedicating a portion of Town sales tax to the golf operation, totaling just over $2.0
million in 2016. While losses on operations are common in municipal golf, the depth of
this loss is less common. In 2016, the loss on operations in the Town’s golf system
exceeded the revenue produced by a dedicated ½-cent sales tax.
7. The operating metrics for ECGT are generally lower then industry norms, with the NGF
review showing lower rounds activity, higher average revenue per round and much
higher total operating expenses. The higher expenses are mostly a result of a very high
utilities expense showing the challenges in this operation.
8. The NGF and FRA hosted an open meeting with interested ECGT members and Oro
Valley residents. The feedback from these groups showed very little tolerance for
change and lack of concern for the troubled facility economics. However, NGF/FRA
does expect that changes to ECGT would be accepted by both groups if completed
properly and with effective communication to affected parties.
Key Findings on Market and External Factors
The NGF market analysis shows that golf is an important component in the greater Tucson and
Oro Valley offering. While there is strong demonstrated demand for golf in the local market, there
are also a lot of golf courses available to service the demand. As such, the NGF has a reasonable
expectation that while the market will provide support for continued operation of a public golf facility
in Oro Valley, the full complement of 45 holes may be too much to sustain in an economically
efficient way. Other key findings from NGF’s market analysis include:
x The overriding trends in the golf industry are not favorable for facility operators. The
total number of golfers has declined and the number of golf courses had expanded in
previous decades, leading to a decline in per-course rounds and income. NGF has also
documented rapid inflation in expenses to operate golf facilities in this market,
especially related to the cost of water for irrigation.
x The Oro Valley and greater Tucson area economy is driven by many traditional
industries, but also has a strong and thriving tourist economy. There were an estimated
4.0 million visitors to Tucson in 2016, which NGF estimates could include 300,000+
golfers demanding daily fee golf. Generating golf from these visitors will be key to
sustaining golf operations at ECGT and providing adequate facilities a key factor in their
attraction, as local resident demand may not be enough to sustain operations.
x The overall demand/supply balance for golf in the greater Tucson market is very
unfavorable to golf courses. There are far fewer permanent households and resident
golfers available to support each 18 holes of golf in the market, and as a result the golf
courses in this area tend to host fewer rounds than average. The most active golf
course in this market area is the City of Tucson’s Randolph GC hosting close to 37,000
rounds per 18 holes, compared to ECGT hosting fewer than 21,000 rounds per 18 on
the El Cañada and Conquistador courses.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 5
July 5, 2017
x Other competitive golf courses in the market area have felt reduced demand and
increasing competition. The City of Tucson’s public golf courses are down 25% in
rounds and 19% in revenue since 2008, and other public golf courses report similar
reductions. There is a short peak season in the fall and spring during which demand is
strongest and the highest fees can be charged.
x The golf courses in the local competitive market are operating within a varied range,
with the subject ECGT in the upper middle range for public golf courses and on the very
lower range for private memberships. ECGT is most competitive in its membership
offering, in that the facility is priced closer to the pre-paid green fee arrangements at
public courses but has an amenity offering more in line with local private clubs (golf,
tennis, pool, fitness, etc.).
NGF RECOMMENDATIONS
The NGF has prepared a comprehensive list of recommendations designed to help improve the
ECGT and make the facility more efficient and profitable. The recommendations contained in this
review include: (1) considerations on operating structure of the system; (2) changes and/or
improvements that could be made to the physical plant so as to best match demand and supply;
and (3) specific ideas for improving the operation, growing the game and thus rounds and
revenues. The NGF recommendations are summarized here, with full detail on specific action
steps detailed in the body of this report.
Basic Oversight and Structure
The Town of Oro Valley has chosen to operate its golf facility through a fee-for-service
management agreement with Troon Golf, and direct oversight by the Parks and Recreation
Director and Town Manager. It has been assumed by NGF that this form of operation is in place for
several reasons, including the desire to retain professional management and to fulfill contractual
obligations related to the Town acquisition of the golf courses. As another form of operation could
be considered by the Town, NGF prepared a review of alternative options that are available to
public sector agencies. However, upon review of the pros and cons of each option, the NGF
recommends that the Town continue with its existing management agreement with Troon, but also
seek to attract a separate (possibly Troon under separate agreement) operator for the F&B /
Overlook operation as the best option for the short and intermediate term as golf club
improvements are contemplated and enacted.
Physical Improvement Recommendations
In recommending upgrades to the physical plant at El Conquistador G&T, NGF has divided our
suggestions into three options related to the ultimate number of holes at ECGT, plus a fourth
consideration on Pusch Ridge that could be viewed separately from the other ECGT options. The
data presented in this analysis suggests strongly that 45 holes of golf may not be market
supportable for the long term at this location. As such, the NGF/FRA team has prepared analysis
of what the ECGT facility and economics would look like considering an improved 36 holes (Option
A), 27 holes (Option B) and only 18 holes at ECGT (Option C). An alternative program for
continuing golf at Pusch Ridge GC was also reviewed by the NGF/FRA team.
A full analysis of each option was presented in the body of this consulting report, including a
detailed review of all proposed changes, site plan renderings and cost to complete estimates (all
presented in Appendix C of this report) and summarized in the table below:
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 6
July 5, 2017
El Conquistador Golf & Tennis
Summary of Renovation Options
Option No. of Golf
Holes
Total
Investment
Potential Acreage
for Alternate Use
Expected
Savings
Option A 36 $5,115,775 21.2 20%
Option B 27 $4,639,115 32.0* 35%
Option C 18 $4,200,795 83.2* 45%
Pusch Ridge 12 $3,013,120 14.9 70%
*Includes only Town owned property and does not include additional HOA-owned parcels.
Pusch Ridge Considerations
The 9-hole golf course at Pusch Ridge presents unique challenges to the Town of Oro Valley. This
facility is clearly challenged economically, with very low activity and revenue due to a variety of
factors including difficult layout, lack of walkability, declining maintenance and generally low
interest for stand-alone 9-hole golf among golfers. Still, despite the challenge, the overall loss on
Pusch Ridge was estimated at $175,000 in 2016 with a reduced operation, a small fraction of the
over $2.1 million loss on overall Town golf operations.
There are several courses of action that the Town can consider for the future of Pusch Ridge,
including outright closure, which is always an option but has pitfalls (more below). This consulting
team was tasked with evaluating options for continued operation as a golf course and developed a
concept that can improve the economics of Pusch Ridge GC. The consulting team’s idea was to
create a 12-hole par-3 golf course to be called the “Dirty Dozen” that reduces the maintained turf to
only 11.9 acres and frees up about 15 acres for potential repurposing. The cost to complete this
concept would be $3.1 million, but financing options can be explored as well as responsible
repurposing of the newly available property.
The NGF review of the economics of the proposed new “Dirty Dozen” shows that even with a
minimal operation and modest rounds activity (7,500), the new 12-hole course could cover all its
expenses. If the Town and Troon were to significantly enhance the marketing and promotion of the
facility, and gain full buy-in from the adjacent resort (possibly through pre-purchase of rounds), the
“Dirty Dozen” course could add as much as $112,000 in profit to the golf system.
Basic Operational Recommendations
Additional recommendations regarding basic operations that apply regardless of “big picture”
changes that may occur are provided and detailed in the NGF report. Key suggestions include:
x Enhancing Technology:The Town must continue to maximize its use of technology in
areas such as POS, email, databases, financial reporting and, of course, its website.
x Enhance Marketing:This recommendation is widespread and covers many items, but
could be postponed until physical improvements are complete. Ultimately, the future
success of ECGT will be the ability to attract daily fee golfers and tournaments/outings.
x Attracting Less-Traditional Segments:The NGF has documented the changing
demographics and the fact that the Tucson has large populations that do not have
strong tradition in golf. The NGF has offered ideas for helping ECGT bring new
segments into golf, focusing on younger adults (18-35), minorities and women.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 7
July 5, 2017
ALTERNATE USE CONSIDERATIONS
The consulting team has completed this review under the assumption of continued operation of
some golf by the Town of Oro Valley at one or both of ECGT and Pusch Ridge. It is always an
option for public-sector owners of golf facilities to close or reduce golf courses and consider
alternate uses of golf course property. As such, the consulting team has completed a preliminary
review of basic options to be considered by the Town, including:
1. Outright closure of one or both Town golf facilities.
2. Repurposing portions of golf course property that may become available due to
proposed changes in size and space of golf facilities.
The analysis completed by the consulting team and presented in this report outlined several
options for the Town to consider, but a few key findings were clear:
x Outright closure, although perhaps the most economically beneficial decision, is not
necessarily a “cheap” option, as there are costs to prepare the property appropriately
and there may be additional contemporaneous impacts that have to be considered
(property values, tax base, resort relations, etc.). Further study is recommended.
x There are parcels being removed from golf in the consulting team program, including
up to 32+ acres at ECGT (27 hole option) and 15 acres at Pusch Ridge GC. These
parcels could be used as naturalized space, passive recreation, intense recreation or
repurposing/development. The consulting team notes that all but the last concept
(development) will result in additional cost to the Town, while some form of
responsible repurposing could lead to new revenues for the Town.
x Any new revenue accrued to the Town from responsible development could be used
to fund the renovation and upgrade program proposed for ECGT and Pusch Ridge.
FINANCIAL OVERVIEW SUMMARY
As part of this NGF study effort, the consultants have prepared an economic evaluation to show
the potential economic performance of the El Conquistador G&T under certain scenarios of facility
size and operational performance, and considering specific assumptions identified in this report.
The NGF projections have been prepared under four separate scenarios of ECGT operation, along
with a separate estimate for Pusch Ridge. The four ECGT scenarios considered include: (1)
Continue “as-is” with no major changes but only repairs and minor improvements; (2) completion of
a golf course renovation resulting in the retention of 36 holes (Option A); (3) a renovation resulting
in 27 holes (Option B); and (4) a renovation resulting in 18 holes at ECGT (Option C).
Summary Discussion – NGF Projections
The results of the NGF financial projection analysis show that all of the options analyzed by
NGF/FRA will improve the economic position of ECGT, largely through reduced maintenance
expenses (fewer maintained acres) and shifting the F&B operation to a third-party vendor. Still,
even with NGF recommendations and the modest growth of rounds and revenues, we still expect
ECGT to see challenges in the next few years. Continued operation with rounds at or near current
levels (under 50,000 total) will not lead to profitability for ECGT, and severe losses will continue,
but become more manageable for the Town under any of the renovation options presented.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 8
July 5, 2017
The analysis also shows that the 27-hole option (Option B) at ECGT will most likely result in the
strongest net performance for the Town. This is due to the 27-hole option allowing ECGT to retain
a strong share of members and still service a comparable amount of daily fee play to what is
serviced today. The 27-hole design provides flexibility to still allow for certain “member blocks” to
be accommodated and even a select timing of shotgun starts. The 36-hole option is still providing
too much golf and higher maintenance costs, while the 18-hole option will likely chase away all but
the most die-hard resident members with private carts, thus resulting in revenue that is much lower
than the savings in maintenance expense. The NGF/FRA team also notes that the 27-hole option
provides the Town with some flexibility if the golf market were to recover or if the operator is
successful in growing activity, the capacity is still there to accommodate the increase.
Other findings from financial projections:
x If ECGT is to continue “as-is,” without facility enhancement, there will not be any
driver to reduce expenses or produce increased rounds or revenue. The result will be
even larger losses on operations in the coming years as expense inflation out-paces
revenue increases. Losses on operations could grow as large as ($2.2 million), even if
rounds increase to over 54,300 after five years (9.3% increase in rounds).
x If the ECGT is renovated to reduce maintained acreage, provide a new and modern
irrigation system, and a modernized clubhouse, the facility would see improvement in
economic performance regardless of the number of holes. If the concept of a new,
third-party vendor to operate and absorb the risk in the F&B operation is included in
the facility changes, the economic performance should improve with immediate
elimination of the large loss on F&B operations.
x While continued operation of Pusch Ridge is problematic for the Town, the NGF/FRA
plan shows that a new dynamic change to the facility could help significantly reduce
the maintenance on that golf course. With only 11.5 acres to maintain and irrigate, the
new Pusch Ridge (“Dirty Dozen”) will be able to achieve profitability with as little as
7,500+ rounds annually, assuming an operating concept comparable to today.
x If the club is upgraded and reduced to 27 holes, the NGF projects better economic
performance, but still a loss on operations. The net income will improve because the
revenue drivers derived from enhanced facilities noted above would still be present,
but the total golf maintenance expense for a “premium” facility with only 27 holes of
golf would help close the gap on operations. Combined with the Town’s approximately
$2.0 million sales tax earmark, the NGF projects as much as $1.0 million+ per year
could be available for other capital projects. The capacity is so high on a 36-hole
operation, that ECGT is not likely to experience capacity issues on 27 holes, except
for the four or five busiest days of the year.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 9
July 5, 2017
Summary Matrix of NGF/FRA Projections
The table below provides a summary of the analysis of three renovation options along with a base
scenario assuming ECGT continues “as-is.” The information provided includes the total investment
for ECGT required under each option (excluding Pusch Ridge) and an estimate of total land
acreage that could become available for alternate (non-golf) use. This information, combined with
the projected rounds, revenue and expenses estimated by NGF in this analysis, provides the Town
with a clear insight into the economic implications of each option. Moving forward, it is likely that
the Town’s ultimate use of the newly available acreage will be the key to the success of any of
these options, particularly if the land can be used to provide a source of capital to the Town for use
in capital projects at ECGT and Pusch Ridge. The summary table is presented below:
El Conquistador Golf & Tennis
Review of Scenarios – Year 5
Base Option A Option B Option C
Initial Investment $0 $5,115,775 $4,639,115 $4,200,795
New Acreage Made
Available 0.0 21.2 32.0*83.2*
Summary in Year 5
Total ECGT Rounds 50,300 50,300 40,600 32,400
Pusch Ridge Rounds 4,000 7,500 7,500 7,500
Total Facility Revenue $3,407,200 $2,827,200 $2,430,300 $1,828,400
Total COS $635,300 $380,200 $330,900 $252,400
Net F&B Revenue ($267,500)73,400 73,400 73,400
Total Operating Expense $4,852,700 $3,738,800 $3,006,000 $2,753,000
Total Labor Expense $2,304,300 $1,614,400 $1,234,900 $1,096,900
Total Utilities Exp. 1,402,000 1,087,400 883,100 761,600
Net Income ($2,080,800)($1,291,800)($906,600)($1,177,000)
Management Fee $144,000 $144,000 $144,000 $144,000
Net Before Other ($2,224,800)($1,435,800)($1,050,600)($1,321,000)
Sales Tax $2,000,000 $2,000,000 $2,000,000 $2,000,000
Net Net ($224,800)$564,200 $949,400 $679,000
*Includes only Town owned property and does not include additional HOA-owned parcels.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 10
July 5, 2017
SUMMARY CONCLUSION
The Town of Oro Valley has been operating the popular 45-hole El Conquistador facility for only
two full years. This facility is aging and has seen declines in activity and is now operating at a
deficit, up to ($2.1 million+).The loss on operations is a result of several influences, some of
which are not controllable by the town or Troon Golf. Factors such as a recent recession,
increasing competition, declining physical condition and declining interest in golf have contributed
to the loss on operations. The last factor is particularly important as the Town must now consider
the optimal mix of amenities and golf course sizes, and whether 45 holes of golf remain
supportable by the Town of Oro Valley.
The ECGT facility has several amenities with potential for strong appeal to a wide variety of golf
and club consumers. However, this facility has a history of operation as a semi-private club and
even though it is owned by the Town and intended to be a community public facility, it still has a
perception in the market as a “private” club. The local golf market has changed dramatically in the
last decade and as we look to the future of golf in Oro Valley, there is genuine concern that the full
45-hole allotment may not be a good match for the current state of golf demand. The cost to
properly maintain a complement of 45 holes of golf is large and growing. The NGF review in 2017
shows that the cost to maintain the ECGT is much higher than any standard, mostly a result of
high utilities expense that is caused, in part, by an antiquated irrigation system.Given this and
the change in demand, the NGF sees a 27-hole golf facility at ECGT and a modified par-3
golf course (possibly 12 holes) at Pusch Ridge as a much better option for Oro Valley to
provide a more sustainable golf facility for the longer term going forward.
ECGT has a mix of customers, with long-tenured golf members, many of whom live in the adjacent
residential community, and a more transient, daily fee golfer seeking high quality at an affordable
rate. The direct feedback gained from frequent club users and local Oro Valley residents as part of
this study effort shows that any change to this facility is going to be controversial. However,
NGF/FRA does expect that changes to the facility will be accepted by the community, provided the
changes are not too severe, still allow for an active club membership and do not result in intense
development in narrow hole-corridors. The changes recommended by the consultants in a 27-hole
operation at ECGT (Option B) along with a new “Dirty Dozen” concept at Pusch Ridge, should
provide a more economically sustainable golf operation that should receive strong public support.
Given the above-noted findings, it is clear that the Town will not be able to continue the operation
“as-is,” and changes will be required. In summary, the most important and actionable
recommendations made by NGF are listed below, noted in priority order:
1. Improve the physical condition of the ECGT, including clubhouse enhancements.
2. Take action to reduce the amount of irrigated turf on all golf courses.
3. Upgrade the irrigation system to include new controls and in-ground piping.
4. Reduce to 27 holes at ECGT, with three 9-hole courses of equal quality and appeal.
5. Lease out (or concession) the F&B operation at ECGT to a third party.
6. Implement the plan to renovate Pusch Ridge into a “Dirty Dozen” concept as proposed
by NGF/FRA.
7. Enhance marketing (mostly through improved technology) and embrace and implement
new activities that appeal to less traditional golfer segments, especially female golfers.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 11
July 5, 2017
External Factors Affecting the Operation of
Public Golf Courses
In this section of the report, NGF will provide a summary of important external factors that have
direct effect on the operation of El Conquistador Golf & Tennis. This includes a review of local
demographics and the economy, national golf industry trends, and a specific estimate of golf
demand on Oro Valley. NGF will also provide a review of other golf courses in the market area that
compete with ECGT for market share. We will then provide a summary of these factors and how
they relate to the continued operation of the ECGT.
DEMOGRAPHICS, ECONOMY AND WEATHER
The ECGT and Pusch Ridge facilities are key amenities for residents and visitors to Oro Valley,
both in terms of recreation and support for adjacent real estate. The Oro Valley area is a growing
suburb of Tucson that has developed its own separate industry and resort profile, but is very much
dependent on the influx of seasonal residents and visitors to its hotels or for day-trips. As such, the
NGF expects that the continued support of any golf facility in Oro Valley will rely on participation
from the large visitor market to the Tucson area, in addition to the permanent resident population.
Demographic Analysis – Local Permanent Residents
The table in Appendix B provides detailed demographic data on selected market definitions,
including 5-mile, 10-mile and 15-mile market rings from the ECGC site. For comparison, the NGF
also shows the Tucson MSA (Pima County), State of Arizona and total U.S. A summary of key
findings on local resident demographics is shown below:
x Population in the area around the subject ECGC is growing rapidly, with population
increasing at 5-times the U.S. average from 1990-200 and almost 2-times the national
average from 2000-2020.
x Total population around ECGC in 2016 was just over 270,000 within 10 miles and over
558,000 within 15 miles. Data shows the overall greater Tucson MSA population now at
just over 1.02 million, with 1.5% annual growth expected through 2021.
x Consistent with a seasonal market, the permanent population in Oro Valley and greater
Tucson is older with much higher incomes than the State of Arizona and the nation as a
whole.
x Median Income in the local market rings is 25% higher than the State of Arizona and
22% higher than the total U.S. In general, higher income residents are more likely to
actively participate in golf than lower income residents.
x Median Age in the market area is considerably older than the state and national
medians. In general, golf participation and frequency tends to increase with age.
x The basic demographic profile of the local permanent population is generally consistent
with strong golf participation. The NGF expects that this population will have higher golf
participation rates and stronger demand for golf service. The NGF would also expect
that golf demand from these local residents would be at a green fee (or membership
fee) rate that is on the higher end of established rates for this market area.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 12
July 5, 2017
Key Economic Factors
Oro Valley is a smaller town on the northern edge of the Tucson metro area, with a growing
permanent population and a local economy in part supported by tourists and seasonal residents.
Below, the NGF provides observations on the key economic drivers of the area and the potential
impact on golf activity at ECGT.
Climate
As with any outdoor recreation, weather will have impact on golf participation. NGF data estimates
that almost all golf is played with temperatures between 50 and 90 degrees Fahrenheit.
Understanding local weather patterns helps determine the number of golf playable days. The data
suggests that golf is a year-round activity in Oro Valley, but time-of-day is a significant issue. In the
peak of summer, temperatures routinely exceed 90 degrees in the middle of the day, leaving a
smaller window for early morning demand that can limit activity. The following table presents a
summary of monthly weather data for Oro Valley area based on 50-year recorded trends:
Climatological Data – Oro Valley, AZ
Month
Temperatures
Precipitation
Inches
Average
Length of
Day
(Hours)Average High Low
Annual 65.4 83.5 47.3 11.4 12.6
January 50.2 66.3 34 0.9 10.8
February 51.1 68.2 33.9 0.9 11.5
March 54.7 73.5 35.8 0.7 12.4
April 62.4 82.1 42.7 0.3 13.4
May 70 90.9 49.7 0.2 14.3
June 79.7 100.6 58.8 0.2 14.7
July 85 100.3 69.6 2.2 14.5
August 82.3 97.4 67.2 2.4 13.7
September 78 95.5 60.4 1.3 12.7
October 66.7 85.9 47.5 0.8 11.8
November 56 75.9 36 0.5 10.9
December 48.4 65.1 31.6 1.0 10.5
Source: Weatherbase.com, Oro Valley, AZ
Oro Valley Economy
The Oro Valley economy is driven by its proximity to Tucson, the attraction of tourists and seasonal
residents, and some growth in High Tech employment. A summary of key findings and data related
to the Oro Valley Economy that have direct impact on the golf club is noted below:
x High Tech and Employment - Oro Valley is home to over 10 high tech firms and has a
median household income nearly 50% higher than the U.S. median. Oro Valley is also a
regional center for the biotech industry. Innovation Park is the high-tech center of Oro
Valley, featuring a number of medical and biotech campuses. High-tech and biomedical
employment tends to coincide with higher-than-average participation in golf and can be
a source for corporate activity and memberships at golf courses. Primary employers in
Oro Valley include:
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 13
July 5, 2017
Sanofi-Aventis:world’s third largest pharmaceutical company has a facility in
Innovation Park.
Ventana Medical Systems:international headquarters in Innovation Park.
Northwest Medical Center:medical office building in Innovation Park.
Honeywell:facility in unincorporated Pima County, surrounded by Oro Valley.
x Golf and Resorts –The economy of Oro Valley is also fueled by the resort industry,
and the Town features several resorts and country clubs. Hotel/Resort Inventory in Oro
Valley includes:
Hilton Tucson El Conquistador Golf and Tennis Resort (428 rooms)
Fairfield Marriott Inn and Suites (88 rooms)
Holiday Inn Express (105 rooms)
Red Lion Inn & Suites Tucson North Foothills (155 rooms)
Others close to Oro Valley include the Omni Tucson National Golf Resort & Spa,
Westward Look Resort and The Westin La Paloma Resort & Spa.
AXBEX reports that investors are planning to add a new “boutique” hotel (under
100 rooms) adjacent to Stone Canyon Oro Valley to be opened after 2019-2020.
x Transportation –The primary access to Oro Valley is through automobile
transportation, with two main highways providing access from Tucson – Interstate -10
and Highway 77. Highway 77 provides the most direct route, but this roadway is a major
arterial and not a controlled access freeway. As such, commute times to Oro Valley to
and from Tucson can be lengthy despite the 12 mile distance. This can have impact on
golf demand and activity for commuters to Tucson and/or attracting Tucson residents,
visitors or businesses to Oro Valley for golf.
Greater Tucson / Southeast Arizona Area Economy
Oro Valley is part of the Tucson, Arizona MSA, which is the major urban and economic center of
southern Arizona, and is the second-largest urban area in Arizona after Phoenix. The greater
Tucson market area has a substantial economy and specific economic drivers that could impact
demand for golf at the ECGT, specifically aerospace, technology and tourism. Some general
findings on the broader Tucson area include:
x Population – The Tucson MSA has a population of around 980,000+ in its primary
urban area. The recent trends are for growth in population at levels that exceed the
national average and are comparable to the overall state average.
x Tucson Employment –Tucson supports a progressive economy, with three primary
centers of employment – healthcare, mining and military. The MSA is home to 12
individual employers with over 5,000 employees, including the two largest employers in
the MSA (University of Arizona and Raytheon). These large employers provide support
for the area economy, including public golf courses.
x Tourism - In addition to Oro Valley, tourism is also an important component in other
parts of the Tucson region. The Arizona Office of Tourism notes that “Arizona’s warm
weather and natural beauty” make tourism one of the State’s top industries. Key
aspects of the Tucson area tourism economy are noted below. Each point of data tends
to back the expectation that tourism will continue to support golf demand in this region.
Pima County generated $2.8 billion in direct spending in 2015 and $197.3
million in direct tax revenue collection. Over 24,000 jobs are generated by
tourism in the region, and more than 4.0 million people visit the area annually.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 14
July 5, 2017
The recent recession has impacted Tucson area tourism. Total bed tax collected
by local municipalities and Pima County declined from an all-time high of $10.5
million in 2007 to $6.6 million in 2015. The County is reporting a significant
upswing in tourism in FY2015/16. Based on Smith Travel Research predictions,
Pima County’s bed tax collections are expected to grow approximately 4 percent
in FY2016/17.
The Tucson area is home to an active calendar of festivals, events and
attractions that help to support tourist demand in the area and feed visitors to
hotels and add demand for public golf service.
Municipalities and agencies (“Visit Tucson”) are putting additional resources into
efforts to expand the region’s tourist appeal. Projects to expand sports
attractions (primarily in amateur sports), provide investment in new facilities &
infrastructure, and add focus to the area as a “tourist destination are ongoing.
Hotel occupancy generally peaks in the fall and spring, with October-November
and March-April as the peak four months. The hottest months of June-Sept.
tend to support the lowest occupancy and is considered the off-season.
x Transportation –The key areas of transportation in the Tucson region that can impact
golf demand in Oro Valley include the roadway infrastructure and the airport:
There are two interstate highways in the metro area. I-10 runs southeast from
Phoenix through Marana, passes west of downtown Tucson, and continues east
toward El Paso. I-19 leaves I-10 south of downtown and heads south to the
Mexican border. Tucson does not have a beltway system, and as noted
previously, there is no direct interstate route from central Tucson to Oro Valley,
thus limiting the convenience of ECGT.
Tucson International Airport (TUS) is the second busiest airport in Arizona after
Phoenix, and provides nonstop flights to 15 U.S. destinations. Although TUS is
not a hub or focus city for any airline, the airport is categorized by the FAA as a
Primary Commercial Service airport with nearly 1.8 million enplanements in
2015 and 2016. The top service destinations out of TUS include Phoenix, Las
Vegas, Atlanta, Houston and Chicago.
GOLF MARKET SUPPLY AND DEMAND INDICATORS
Golf Industry Overview - 2016
Despite significant negative press, the golf industry remains healthy and golf continues its macro
trend toward stabilization in 2016. Considering the severity of the most recent recession and its
lingering effects on discretionary income and time, golf has held up rather well. Multiple NGF
studies of golfers since 2008 attribute the gradual decline in golfers and rounds since peak
participation primarily to the impact of lower job security and concern over personal finances, not
waning appeal for the game. Total spending on golf and club memberships will always be
vulnerable to outside forces such as the economy, but the game remains popular and is fortunate
to have a deep well of interested prospects. Some findings from NGF:
x Participation - The national golfer number (participation) appears to be continuing a
stabilization trend in 2016 after nearly a decade of decline. The total golfer population
now stands at 23.8 million, down from a peak of 30 million in 2005 (20.7% decline).
Total rounds volume has also declined a comparable amount over the same period.
Over 2.5 million people took up golf for the first time in 2016, the highest annual total in
more than 16 years.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 15
July 5, 2017
x Golf Course Supply - The correction in golf course supply continued in 2016 at a level
comparable with the previous three years. According to NGF data, since the market
correction in golf course supply began in 2006, there has been a cumulative net
reduction of 679.5 golf courses (18HEQ), which represents a drop of about 5% off the
peak supply year of 2005. For perspective, golf supply grew by 40% in the previous 20
years (1985-2005). This much-needed move toward supply/demand equilibrium is
expected to continue for the next several years.
x “Millennials” - Also, despite reports to the contrary, interest in the game remains
strong among 18-34 year-old “Millennials,” but not at the levels of previous generations.
More than 28 million Americans who don’t play are “very” or “somewhat” interested in
playing golf now. More than 12 million of those are of Millennial age. Millennials make
up 25% of all golfers (6.2 million) and spend more than $5 billion annually on playing
fees, equipment and apparel.
Comparative Market Data
The table below details basic demographic and golf market data indicating the magnitude of the
local golf demand (additional support data in Appendix B). We note that much of this data is
based on the permanent resident population, and is not reflective of the retiree, seasonal resident
and visitor populations in the market area (more later in this section).
Summary of Market Indicators
5-Mile
Ring
10-Mile
Ring
15-Mile
Ring
Tucson
MSA Arizona Total U.S.
Demographics
Population 2010 Census 85,513 258,918 533,351 980,263 6,392,017 308,745,538
Population Estimate 2016 87,469 271,210 558,296 1,027,379 6,861,737 322,736,220
Population 2021 Projected 93,618 291,152 600,570 1,106,490 7,346,245 335,779,240
CAGR 2016-2021 1.37% 1.43% 1.47% 1.49% 1.37% 0.80%
Median HH Income (2015 Estimate) $68,324 $56,167 $47,456 $48,046 $51,887 $56,106
Median Age (2015 Estimate) 45.2 42.3 39.7 $38 $37 38.0
Golfers
Number of Golfing Households 8,680 24,232 42,018 69,007 407,846 17,094,500
Seasonal Golfing Households 429 1,216 1,792 3,233 30,968 737,636
Rounds Potential (resident golfers) 257,365 719,525 1,190,539 2,012,194 11,809,889 465,791,320
Estimated Rounds (in-market supply) 419,332 984,308 1,367,423 1,947,628 14,854,984 465,791,320
Latent Demand/Interested Non-Golfers 11,724 38,759 80,758 130,619 837,729 37,346,480
Golf Indices
Golf Participation Index 171 147 125 121 113 100
Golf Rounds Activity Index 186 160 130 130 120 100
Source: Tactician, Inc. and NGF Consulting. CAGR = Compound Annual Growth Rate.
x The permanent population in the ECGT market areas is relatively small, but with higher
median age and median household income. These figures tend to coincide with higher-
than-average participation in golf.
x The local ECGT market has a strong proportion of higher income households than the
greater Tucson market. An estimated 30.6% of households in the 5-mile ring show
incomes over $100,000 annually, while 7.0% show income in excess of $200,000, both
a key “sweet spot” for high golf participation and activity:
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 16
July 5, 2017
Higher Income Households 5-Mile Ring 10-Mile Ring Tucson MSA
No. Pct. No. Pct. No. Pct.
No. of Households over $100,000 Income 11,182 30.6%
29,063 24.9%73,320 18.9%
No. of Households over $200,000 Income 2,588 7.0% 7,640 6.5% 16,339 3.9%
x The NGF estimates about 24,000 golfing households, plus an additional 1,200 seasonal
households, in the 10-mile market around ECGT. Further, the NGF estimates a total of
over 69,000+ golfing households and 3,200+ seasonal golfing households in the greater
Tucson market area. This is a large market of permanent and seasonal golfers capable
of supporting a large market of golf facilities, and this does not include the even larger
market of transient / visiting golfers who come to the area each year.
x NGF estimates the residents in the 10-mile ring could demand upwards of 719,500
rounds of golf annually, but the golf courses in this market ring are hosting over 984,000
rounds annually, indicating a strong demand from non-residents at area golf courses.
The 2.0 million rounds played in the Tucson MSA represent about 17% of all golf
rounds played in Arizona, further documenting the strength and importance of this golf
market and helping to confirm the expectation that there is demonstrated demand for
golf service in the Oro Valley market.
x Overall golf demand is higher per household in the ECGT market when compared to
the rest of the State and nation overall. The area also shows a high level of latent
demand, with almost 38,000 non-golfers expressing interest in becoming golfers in the
10-mile ring.
x As population growth is expected to exceed the national and State average by 2021,
the change in number of golfers is also expected to increase by 2021.
Visitor Golf Demand
Earlier we noted about 4.0 million visitors to the Tucson MSA in 2016. These visitors are
contributing to the golf course activity in the region. NGF research shows that roughly one-third of
all golfers participate in the activity while traveling, playing 0.557 rounds per day of travel. Based
on current golf participation rates, the estimate for potential tourist golf rounds that are coming to
Tucson is 70,000 to 80,000 rounds annually. Given its location and appeal of area resorts, it is
reasonable to expect the subject course to capture a significant share of this visiting golf activity
that is generated from Tucson area tourists. As such, it is important for ECGT to maintain a strong
marketing presence, especially through digital/website channels, as a couple of thousand visitor
rounds could make a big difference in the bottom line.
Latent Demand
People who express an interest in playing golf but have not yet started include former golfers and
those who have never tried. The demographic profile of latent demand tends to be more female
and younger than the population as a whole. Surveys show these golf-interested non-golfers cite
several barriers to entry in golf, including the cost and social aspects (no one to play with). The
latent demand population is comparable to the golfer population, and NGF estimates as many as
38,000 interested non-golfers within 10 miles of ECGT. Given golf’s tenuous participation situation,
all golf courses should have active programming aimed at inviting and “onboarding” prospective
new golfers.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 17
July 5, 2017
Local Golf Supply
The following are some summary NGF observations regarding key golf supply measures for the
local golf market. Please see the supporting tables in Appendix B.
x There are 18 total golf facilities (14 public access), totaling 405 holes, within 10 miles of
ECGT. There are a total of 39 golf facilities (30 public) within the Tucson MSA. Ratio
analysis based on national benchmarks shows that all three market rings are vastly
over-supplied, as there are about 25% fewer households available (unfavorable) to
support each 18 holes of golf than the nation overall. This weakness is particularly
acute in the immediate 5-mile market, where the eight total golf facilities represent an
over-supply of 56% (there are 56%fewer households per 18 holes compared to the
national benchmark).
x There was a lot of new construction of golf courses in the last 20 years, with 11 of the
25 golf facilities within 15 miles constructed between 1995 and 2007. This rapid
increase in supply included local facilities such as Saddlebrook Ranch (2007) and the
Golf Club at Dove Mountain (2009), the two newest facilities in the Tucson market.
x The NGF estimates that a net of 18 holes were closed in the greater Tucson market
since 2011, the equivalent of one 18-hole golf course (Canoa Hills GC and Challenge at
Santa Rita GC closed in 2012-13). This is consistent with broader national trend of golf
course contraction as a reaction to declining national demand for golf.
x The NGF database shows one other new golf course in planning in the Tucson market
area, the Rocking K Ranch project that is part of a master planned community set to
open in late 2018. We also note several golf facility competitors that have undergone or
are planning renovation.
Golf Course Market Supply / Demand Summary
Using the most basic measures of golf demand and supply, we note four possible combinations for
any given market area: (1) favorable demand and favorable supply (“potential growth market”); (2)
favorable demand and unfavorable supply (“competitive”); (3) unfavorable demand and favorable
supply (“inactive”); and (4) unfavorable demand and unfavorable supply (“saturated”). The review
of data for the greater Tucson area suggests a “competitive” market for golf, with relatively strong
demand from resident households and a very unfavorable household/supply ratio. It is clear that
the influx of visiting golfers is key to sustaining golf course operations in this market, especially for
a remotely-located club like El Conquistador G&T.
Golfers per 18 holes
NGF has also evaluated the relative strength of the market with a comparison to a national
“threshold” of golfers per golf course within 10 miles of a facility. In its 2009 publication “The Future
of Public Golf in America,” NGF hypothesized that the best predictor of a public golf course’s
success was the number of golfers per 18 holes within a 10-mile radius, with 4,000 identified as
the key number for projected financial stability. The NGF has estimated that there are only
about 1,400 golfers per 18-hole course in the ECGT market, thus lowering chances for
successful golf operations, all other factors being equal. The importance of this metric is mitigated
somewhat in markets with a high annual influx of visiting golfers, but further stresses the
importance of continued support from non-resident golfers.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 18
July 5, 2017
LOCAL COMPETITIVE GOLF MARKET
NGF has analyzed the public access golf market in the Oro Valley / Tucson Arizona market area,
with particular emphasis on determining the current position of ECGT as a municipally-owned
public-access golf course, and prospects for sustaining and/or building market share in the future.
On the following pages, we list operating information for a group of selected competitive golf
facilities. This list was not meant to be totally exhaustive or to account for all of the potential public
golf competition to ECGT, but rather, to offer a frame of reference in evaluating actual performance
of the subject as compared to other golf facilities noted by ECGT staff and golfers in the NGF
survey as key competition.
Competitive Public Access Golf Facilities Map
The map below shows the relative locations of the facilities selected as comparable to the ECGT.
The list of facilities is intended to be representative, but not exhaustive.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 19July 5, 2017Summary InformationThe following tables provide summary information for ECGT and a selection of other comparable / Competitive golf facilities.Facility Summary Information - Expected Primary Competitors to El Conquistador Golf & Tennis ClubGolf Facility Location TypeYear OpenPar / SlopeFront Tee/ Back TeeLocation Relative ECGTArchitectRange StationsEl Conquistador Golf & Tennis ClubOro ValleyMU-36-35Cañada Course 18 1982 72 / 135 5,093 / 6,636 -Greg H. Nash/Jeff D. HardinConquistador Course 18 1985 71 / 129 5,265 / 6,720 -Greg H. Nash/Jeff D. HardinPusch Ridge 9 1982 35 / 110 2,788 3.0Jeff D. Hardin0Oro Valley Country Club Oro Valley PR-18 1960 72 / 132 6,170 / 7,032 1.6 milesArthur Hills12Omni Tucson Nat’l. Golf Resort & Spa Tucson DF-36 3.2 miles 20Catalina Course 18 1963 73 / 138 5,414 / 7,262Robert B. HarrisRemodel: Bryce Devlin/Robert Von HaggeSonoran Course 18 1982 70 / 127 4,579 / 6,552Bruce Devlin/Robert Von HaggeCrooked Tree Golf Course Tucson DF-18 1975 72 / 132 5,008 / 7,065 3.5 milesLee Trevino/Dave Bennett50The Golf Club at Vistoso Oro Valley DF-18 1995 72 / 133 5,093 / 6,954 4.1 milesTom Weiskopf30The Views Golf Club At Oro Valley Oro Valley DF-18 1986 72 / 133 4,775 / 6,715 5.2 milesGreg H. Nash/Jeff D. Hardin20The Golf Club At Dove Mountain1Marana DF-27 2009 72 5,283 / 7,494 5.4 milesJack Nicklaus50The Highlands At Dove Mountain Marana DF-18 1997 72 / 136 4,716 / 6,904 5.7 milesArthur Hills20Quail Canyon Golf Course TucsonPar 3DF-181964 54 /87 2,236 / 2,311 5.9 milesGil Kammert0The Gallery Golf Club Marana DF-36 6.6 miles 50North Course 18 1998 72 / 139 5,256 / 7,384John FoughtSouth Course 18 2003 72 137 5,215 / 7,468John FoughtQuarry Pines Golf Club Tucson DF-18 1997 71 / 123 4,893 / 6,318 6.9 milesBrian Huntley/Gilmore Graves Arch. Firm25Silverbell Golf Course Tucson MU-18 2005 70 / 123 5,235 / 6,936 8.7 milesArthur Jack SnyderRemodel: Kenneth M. Kavanaugh 251. An additional 9-hole course project was cancelled in early 2015. The land is now being used for housing. *Air miles from subject site, rounded to half-mile; actual driving distances will likely be greater.Type: DF – Daily Fee; MU – Municipal
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 20July 5, 2017Summary Fee & Rounds Data – Expected Primary CompetitorsGolf Facility18-Hole Prime Time Green Fees & Carts Mon-Thurs / Fri &WE18-Hole Midday Green Fee & Carts Mon-Thurs / Fri / WE18-Hole TwilightGreen Fee & CartsMon-Thurs / Fri / WE18-Hole Junior Green Fee OnlyMon-Thurs / Fri / WEEl Conquistador Golf & Tennis Club8am-10am $49 / $5510:01am-12pm $45 / $49After 12pm$39 / $45After 2pm$29 / $39$25 / $25Oro Valley Country Club Private Club - ClubCorp owns and manages: Peak Green and Cart Guest Fees = $80 per personOmni Tucson National Golf Resort & SpaOutside Guest Fee $200Resort Guest Fee $150N/AOutside Guest Fee $120Resort Guest Fee $100N/ACrooked Tree Golf Course $49 / $49After 12pm $40 / $40N/A After 3pm $5 / $5 / $5The Golf Club at Vistoso1$42 / $42After 12pm $33 / $33After 2pm $22 / $22 / $22N/AThe Views Golf Club At Oro ValleyNon-Resident $59 / $59Resident $49 $49After 1pm Non-Resident $47 / $47Resident $37 / $37After 2pm Non-Resident $33 / $33 / $33Resident $25 / $25 / $25N/AThe Golf Club At Dove Mountain2$109 /$119 After 12pm $59 / $89 $59 / $79 / $79 N/AThe Highlands At Dove MountainNon-Resident $99 / $99Resident $67 / $67N/AAfter 3pmNon-Resident N/AResident $29/ $29 / $29N/AQuail Canyon Golf Course $19 / $19 N/A N/Awalking $10 with cart $12The Gallery Golf Club $185/$225 $60/$100 N/A N/AQuarry Pines Golf Club2$29.99 / $39After 12pm $22.99 /Fri $22.99 / Sat-Sun $25.99 After 2pm $22.99 / $22.99$25 / $25Silverbell Golf Course2Non-Resident $43 / $43Resident $39 / $39City Card $35 / $35After 12 pmNon-Resident $33 / $43Resident $25 / $39City Card $20 / $35After 2 pmNon-Resident $31 / $36Resident $23 / $32City Card $18 /$28N/A1. Current online published pricing. Peak rate from 10/1-12/31 is $60, Loyalty Discount $49.2. Use online pricing. No rack rate fees listed.N/A = Program not available
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 21July 5, 2017Annual Memberships / Loyalty Programs– Primary CompetitorsAnnual MembershipLoyalty ProgramGolf Facility Single / Couple or FamilyEl Conquistador Golf & Tennis ClubExplorer (Single) / Conqueror(Family)/ Discovery DJH Adventurer DJH Non-Resident $3,900 / $5,820 / $4,200 / $720Resident $3,540 / $5,280 / $3,840 / $600Rates do not include cart feesWeekend Warrior Membership(unlimited on Fridays after 2pm, Sat-Sun, Holidays, birthday)Single / Couple / Family$1,200 / $1,920 / $2,880Summer Sizzler Golf Pass $299(unlimited golf w/ cart after 12noon, for 4 months; includes F&B & merchandise discounts)Troon Golf Rewards:Earn 1point for every dollar you spend. Redeem for complimentary round of golf, reach elite status levels and receive additional discounts on golf and merchandise, receive special offers, invitations to exclusive events and Callaway® promotions.Troon Card:Up to 50% off golf fees; book any ONLINE RATE and receive 15% off that rate at check; 2 for 1 golf offers; 25% off Troon Card rate on the day of your birthday; replay rates from $25; 25% off club rental fees at participating courses; access to TroonCardTickets.com; 10% off golf shop merchandise and restaurants; monthly digital E-News; Troon Card Text Club; customized experience packages; exclusive twilight and 9-Hole rates; single player & twosome booking engines; Book Tee Times 24/7/365; complimentary introductory & skills clinics; Troon Cards Facebook Group.Oro Valley Country Club Single $6,108; Full Family $7,380 Afternoon-only package - $3,720/$4,980 + $1,500 initiationOmni Tucson National Golf Resort & SpaOffer Executive, Traditional, Premier and Athletic/Social Memberships: Call for pricingN/ACrooked Tree Golf CourseN/AN/AThe Golf Club at VistosoMountain Club Annual Pass (Arizona National Club and The Golf Club of Vistoso)$2,300 / $3,000 (+$15 cart fee per person, per rnd)Catalina Card $49Discounted rounds (save $7-$11 per round)The Views Golf Club At Oro ValleyNon Resident $3,535 / $6,245Resident $3,125 / $5,820N/AThe Golf Club At Dove MountainCall for pricingN/AThe Highlands At Dove MountainNon-Resident $4,429 / $8,137Resident $3,782 / $6,769Play Cards40 Play: $2,193; 20 Play: $1,148; 10 Play: $627Quail Canyon Golf CourseN/AN/AThe Gallery Golf Club$9,900Sports plus = $5,700Quarry Pines Golf Club$1,599 / $2,599 + tax, carts not includedJr. membership $499 + taxFee round for every 5 rounds playedSilverbell Golf CourseMega Pass(includes all 5 City courses: Fred Enke, El Rio, Silverbell & Randolph)Weekday $2,499 + tax / NAEveryday $3,249 + tax / NABonus Points: earn 1 point for every dollar spent on Green Fees. Redemption= Peak times need 330 points, afternoon 200 points.N/A = Program not available
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 22
July 5, 2017
Key Findings – Competitive Golf Market
A summary of general findings regarding the competitive market for ECGT:
x Based on discussions with club staff and supported by the NGF market review, the
NGF has identified two separate sets of competitive facilities for ECGT, including
both public-access golf courses and private clubs. The most significant competition
from each category includes:
Key ECGT Competitors
Public Courses Private Clubs
The Golf Club at Vistoso Oro Valley Country Club
Crooked Tree Golf Course The Highlands At Dove Mountain
The Views Golf Club at Oro Valley Omni Tucson National
Silverbell Golf Course
x Total rounds activity among golf courses in this market has declined since a recent
peak around 2008, and the long term peak around 1999-2000. Rounds activity is
now around 30,000 to 35,000 rounds per 18 holes at public courses, down from the
40,000 to 45,000 rounds observed in 2008. The market leader in the area for rounds
activity remains the City of Tucson’s Randolph Golf Complex that reported
approximately 75,000 total rounds on 36 holes. Other City of Tucson public courses
hosted between 29,900 and 33,700 rounds on 18 holes. Immediate competitors GC.
x For the private member clubs, the total number of golf memberships reported was
about 325 for Oro Valley CC, 340 for Highlands at Dove Mountain and 350 at Omni
Tucson. This compared to the 240+/- for the subject ECGT.
x Green fees among the competitive set we profiled were highly varied, with ECGT
running at the higher end of its immediate competitive set, with rack green fees
higher than Crooked Tree, Vistoso and Silverbell, but lower than The Views. All of
the market competitors are offering various forms of discounting for day of week,
time of day, juniors and seniors. Considering its various discounts, the subject ECGT
is priced appropriately for this market and the $29/$29 weekday fees are competitive
in this market.
x Pre-paid green fee arrangements (memberships) are common at public golf courses
in the market, but ECGT pricing is the highest among this competitive set. However,
ECGT membership pricing is on the lower end when compared to the local private
courses Like Oro Valley CC, Dove Mountain and Omni Tucson. When considering
the full amenity package at ECGT, the cost of membership is very affordable, with
the off-set being that the course is not fully private and public golf is allowed.
x The competitive nature of the regional golf market places constraints on the ability to
raise fees. This is evident in the fee structures of the primary competitors; despite
some high quality and well maintained golf courses, the majority of courses keep
their peak weekend rates at or below $60. There is a large gap between the mid-
level courses and the high-end resorts. Premium facilities like Omni Tucson ($200 in
season), and The Gallery ($225 guest fee) have much higher price points.
x None of the area’s public access golf facilities have undergone recent renovations or
major capital investments, other than irrigation and/or other minor upgrades and
improved maintenance conditions (City of Tucson courses). As a result, ECGT is
providing a high quality of golf service for a public course in this market.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 23
July 5, 2017
City of Tucson Municipal Golf System
The only other municipal golf courses in the Oro Valley market area are four golf facilities owned
by the City of Tucson, and currently operated via contract with OB Sports. The four facilities:
x Randolph Golf Complex – two 18-hole golf courses (North and Dell Urich) +
extensive driving range and large clubhouse
x El Rio Golf Course – Shorter 18-hole golf course from the 1930s + small range and
clubhouse
x Fred Enke Golf Course – 18-hole regulation-length golf course with driving range
and clubhouse
x Silverbell Golf Course – 18-hole par-70 golf course with driving range and modest
clubhouse (closest to Oro Valley)
Together the four City courses represent a varied offering of public golf in Tucson, with fees
ranging from $18 to $49 for an 18-hole round of golf. The Randolph golf courses tend to be the
highest fees, ranging down to the mostly lower fees at El Rio GC. The golf facilities were full
self-operated by the City of Tucson through its Parks and Recreation department through 2011,
with a food and beverage contract beginning in 2012 and a full four-course management
agreement (lease) beginning in 2015. A summary of key NGF findings in review of this
municipal golf system are shown below:
x Rounds Activity:
Total rounds played in 2016 were around 168,900+/-, down from over
225,000 rounds in 2008 (25% decline).
The highest activity is reported at the Randolph Golf Complex with 74,300
rounds on 36 holes (37,150 per 18); followed by 33,700 at Silverbell, 31,000
at El Rio and 29,900 at Fred Enke. Overall, the Tucson City golf system is
hosting approximately 33,800 rounds per 18 holes.
x Economic Performance:
Total golf revenue at the four facilities was just over $7.5 million in 2016,
down from the $9.28 million reported in 2008 (19% decline). However, the
$7.5 million in 2016 represents a 23% increase over the $6.1 million
generated in each of the 2012-2014 years. Since the addition of OB Sports
management in 2015, revenues have increased in 2015 and 2016.
Total operating expenses were $7.53 million in 2016, resulting in a +/-
($30,000)loss on operations (before depreciation and overhead).
System-wide, the City is earning an average of $29.17 per round of golf on
green and cart fees and $4.61 per round on merchandise sales. Income from
driving range and F&B operations vary by facility with a peak of $5.31 per
round on the range at Fred Enke and $7.20 per round on F&B at Randolph.
x Other:
In 2008-2012, the City employed a total of 154 staff at the four courses (31
per 18 holes), and had reduced this number to 68 by the end of 2014 (13.6
per 18 holes) before switching to a lease beginning in 2015.
The Tucson courses are offering aggressive frequent player programs with a
“Mega-Pass” (pre-paid green fee) from $949-$3,249, Summer City Card,
Summer 7-play pass and a junior card.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 24
July 5, 2017
EXTERNAL FACTORS SUMMARY
The NGF market analysis shows that golf is an important component in the greater Tucson and
Oro Valley offering. While there is strong demonstrated demand for golf in the local market,
there are also a lot of golf courses available to service the demand. As such, the NGF has a
reasonable expectation that while the market will provide support for continued operation of a
public golf facility in Oro Valley, the full complement of 45 holes may be too much to sustain in
an economically efficient way. Other key findings from NGF’s market analysis include:
x The overriding trends in the golf industry will present challenges to the Town of Oro
Valley in continuing golf course operations. The total number of “core” golfers is
declining and total spending on golf is declining along with them. Similarly, the total
number of golf courses had expanded in previous decades, leading to a decline in
per-course rounds and revenues collected. NGF has also documented rapid
inflation in expenses to operate golf facilities in this market, especially related to
the cost of water for irrigation.
x The Oro Valley and greater Tucson area economy is driven by many sub-industries
related to high-tech and healthcare, but also a strong and thriving tourist economy.
There were an estimated 4.0 million visitors to Tucson in 2016, which NGF
estimates could include 300,000+ golfers demanding 70,000+ rounds annually.
Generating golf from these visitors will be key to sustaining golf operations at
ECGT and providing adequate facilities a key factor in their attraction, as local
resident demand may not be enough to sustain operations.
x The overall demand/supply balance for golf in the greater Tucson market is very
unfavorable to golf courses. There are far fewer permanent households and
resident golfers available to support each 18 holes of golf in the market, and as a
result the golf courses in this area tend to host fewer rounds than average. The
most active golf course in this broad market area is the City of Tucson’s Randolph
GC hosting close to 37,000 rounds per 18 holes. The fewest rounds per 18 holes
are at the subject El Conquistador G&T, which is hosting fewer than 21,000 rounds
per 18 on the El Cañada and Conquistador courses.
x Other competitive golf courses in the market area have felt a reduced demand and
increasing competition. The City of Tucson’s public golf courses are down 25% in
rounds and 19% in revenue since 2008, and other public golf courses report similar
reductions. There is a short peak season in the fall and spring during which
demand is strongest and the highest fees can be charged. Hotel facilities are an
important factor for feeding golfers to the ECGT, and ECGT will have to do more to
accommodate hotel operators in the hopes of attracting a greater share of play.
x The golf courses in the local competitive market are operating within a varied
range, with the subject ECGT in the upper middle range for public golf courses and
on the very lower range for private memberships. ECGT is most competitive in its
membership offering, in that the facility is priced closer to the pre-paid green fee
arrangements at public courses but has an amenity offering more in line with local
private clubs (golf, tennis, pool, fitness, etc.).
x Finally, all golf facilities face a couple of other factors beyond their control: First, a
high fixed expense structure and operating expenses that tend to rise more rapidly
than revenues (e.g., ability to raise fees is constrained); this dynamic appears to be
particularly acute with rising water costs. Second, while golf is more popular than
ever with younger children, the activity is losing appeal with younger adults and this
will provide a continuing challenge for golf courses to attract younger players.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 25
July 5, 2017
Subject Facility – El Conquistador Golf &
Tennis
The subject property is the El Conquistador Golf & Tennis, a 45-hole golf facility located on two
separate sites and owned by the Town of Oro Valley, Arizona. The facility includes a main
campus at the El Conquistador Golf & Tennis, with two 18-hole golf courses – The Conquistador
and Cañada, and a separate 9-hole course located approximately 3.0 miles away at the El
Conquistador resort. The courses are all located within Oro Valley and are fully integrated within
master-planned communities with considerable home frontage on the golf courses. The golf
facility is part of the Town of Oro Valley community offering, and includes a considerable
amenity footprint with services ranging from tennis, swimming and fitness in addition to golf.
The club and adjacent community center were acquired by the Town via acquisition from the
HSL Resort, with commencement on May 1, 2015. To provide day-to-day operations, the Town
hired Troon Golf Management, a nationally recognized golf management entity that was
previously in place to manage ECGT under its previous owner, and has considerable
experience in managing high quality golf facilities nationwide, including other clubs in the
Tucson market area. The El Conquistador G&T is now operated as an affordable, high-quality
public golf facility that serves year-round and seasonal residents of Oro Valley, as well as a
large number of area visitors on a daily fee basis.
As a whole, the El Conquistador G&T and Pusch Ridge golf facilities combined to produce total
top-line revenue of just over $2.9 million in 2016, the vast majority of which comes from golf
fees, member dues and F&B sales. The on-site operating expenses at the facility totaled around
$5.2 million (including cost of sales), resulting in a roughly ($2.3 million)loss on operations
(excluding other necessary costs such as capital upgrades and new investment in
infrastructure). The Current financial condition is worse than most public sector golf operations
in the U.S, where 67% of municipal golf course operations are able to cover on-site expenses,
but not able to cover both on-site expenses and capital improvement costs (only about 33% can
cover both).
In our review of the ECGT, the NGF found a well-located and affordable resort-style golf facility
that includes the basic design and amenities that correlates with success in in public golf, but
the facility may be too large and operated too much like a private club to achieve its maximum
economic potential as a Town-owned golf facility. For many years the ECGT relied on the
support of club members, many of whom lived within the adjacent residential community, for
economic support, but as the membership has declined, the challenge for the Town going
forward is to generate new levels of public golf activity to produce green fee income to off-set
lost member revenue.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 26
July 5, 2017
INVENTORY OF FACILITIES – EL CONQUISTADOR GOLF & TENNIS
The El Conquistador Golf & Tennis facility includes the following elements:
x 18-Hole regulation par-72 Cañada Golf Course
x 18-Hole regulation par-72 Conquistador Golf Course
x 18,000 square foot (sf) clubhouse on two levels, with food service (The Overlook) on
the upper level and pro shop and locker rooms on a lower level (no elevator).
x Separate 33,000 sf community center with various fitness and recreational amenities
and the Town Parks and Recreation offices.
x 15 lighted tennis courts and 4 pickleball courts
x Two (2) swimming pools (1 lap pool + 1 rec. pool)
x 1.5 acre maintenance compound on east side of La Cañada Dr. with equipment
storage and maintenance offices
x 20-station driving range with 300+ yards of depth and separate “member” area on
back end (northwest side)
x Three practice greens, including one practice chipping area
The Pusch Ridge GC facility includes (at a separate location):
x 9-Hole regulation par-35 Pusch 9 Golf Course
x 16 lighted tennis courts
x 6,000sf support building (most used as storage for resort)
x 6,500+/- sf maintenance area
The above mix of elements offers a good variety for a resort golf facility, allowing for appeal to
all segments of golfers from beginners to seasoned players and is marketable in this local area.
The separation between the main ECGT campus and Pusch Ridge creates some challenges in
efficient operation. In addition, several key components of the adjacent community center at
ECGT are not part of the golf operation (notable recreation, fitness and swimming), but are on
site at ECGT and adjacent to the golf and tennis operations that are under the golf management
umbrella (more later in this report).
EL CONQUISTADOR G&T SITE OVERVIEW
The El Conquistador Golf & Tennis is located in central of Oro Valley, immediately proximate to
the Town administration center along La Cañada Drive. The main entrance to the facility is via
La Cañada Dr., less than ¼-mile south of the Town Hall. La Cañada Dr. is a primary north-south
thoroughfare through Oro Valley that runs south all the way to the northern part of Tucson and
Interstate-10. This road also has several key east-west connector intersections making the
entrance to the golf facility easily findable and convenient, even for patrons who may be less
familiar with the area. At present, there is no traffic light to protect turns in and out of the ECGT
but the Town reports a new traffic signal will be added within the next year. Pusch Ridge is
located along the N. Oracle Rd. (Highway 77) corridor with direct access to the adjacent resort
and golf course via El Conquistador Way. Highway 77 is a major north-south arterial running
from Tucson to areas well north of Oro Valley. This mostly divided highway is a primary access
corridor for all traffic coming from Tucson into Oro Valley.
While the location of both ECGT and Pusch Ridge is generally accessible from the local area,
the lack of a nearby controlled-access freeway makes the golf courses less convenient for a
wider geographic area and may limit potential demand from areas closer to Tucson. ECGT staff
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 27
July 5, 2017
and several club members noted that even though downtown Tucson is only 11 miles from the
club, commute time can often be 45 minutes or longer. This makes the continued attraction of
local Oro Valley area golfers a key to the long term success of ECGT and the support of the
residences immediately adjacent to the golf courses extremely important for economic support.
The primary ECGT is operating out of an extended single structure encompassing the
community center and golf clubhouse. The entrance and parking configuration comprise a 5.5-
acre entrance and parking area that includes about 190+ primary parking spaces. The typical
public golf course requires about 140 parking spaces per 18-holes, so with 36 holes ECGT may
be low on parking, especially when the additional recreation amenities are considered. There is
some additional property (reported to be separate and privately owned) that is adjacent to the
parking lot and often used on busy days for parking, although the area is not formally marked as
parking. On other busy days, the entrance road shoulder is used for overflow parking, although
this area is not marked for parking either. In all, the basic logistics and way flow of the entrance
and bag drop is good for a public golf course, but may not fit for a full 36-hole golf operation and
additional recreation amenities like tennis, pool and the community center.
Site Positives
x Location:The positive aspect of ECGTs’ location is the presence of large-scale
adjacent development to provide potential golfer support for the facility. Pusch Ridge
also has adjacent development and the 428-room Hilton Tucson El Conquistador
Golf and Tennis Resort.
x Access:Both facilities are convenient for area residents and other locals. The ECGT
site will be especially appealing when the new traffic light is added to the entrance on
La Cañada Drive.
x Aesthetics:The three golf courses have a wide variety of features and amenities to
add aesthetics, with abundant natural foliage, wildlife and pleasant views. The El
Conquistador courses include a wide variety of golf experiences, and Pusch Ridge
offers a more unique golf offering for the area with variable topography and views of
the resort and nearby mountains.
Site Negatives
x Location: The location of both facilities suggests to the public at large that the
facilities may be private or not open to the public. The ECGT location within a large
residential community conveys a private club operation. The Pusch Ridge proximity
with the Hilton Tucson El Conquistador Resort leads most to believe the course is
only available for use by hotel guests. The NGF notes the importance of the Town
working to convey a clear and unambiguous message to the public that both courses
are “open and available for public use.”
x Spread Out:The configuration of the ECGT property is wide and physically diverse,
leading to challenges in managing the full 36-hole property. There are four separate
parcels separated by major roadways and require golf cart crossings at several
points. Many of the golf holes are not visible from the pro shop, clubhouse or starter
shack. Thus the ECGT will always require a strong management presence and
larger-than-standard operating staff.
x Water Use Concerns:The golf club occupies a very dry space and extensive
irrigation will always be required. Given the cost for water, it is expected that there
will always be a higher-than-standard maintenance expense at ECGT and Pusch
Ridge, even if the total irrigated acreage can be reduced (more later in this report).
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 28
July 5, 2017
Aerial View – El Conquistador G&T
Google Earth image showing ECGT and immediate surroundings. This view shows how golf is intertwined with residential
communities, but also shows the convenience to roadways. This location has advantages for continued operation with close
proximity to golfer-rich neighborhoods and easy access to the property. The view also shows the reason for neighborhood
concern as any change in land use of golf course playing area will clearly impact local residents and property values.
Aerial View – Pusch Ridge GC
Google Earth image showing the Pusch Ridge 9-hole course surrounding the El Conquistador resort. Several sections of the
golf course have homesites with direct golf frontage, leading to neighborhood concerns to changes of golf land use.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 29
July 5, 2017
REVIEW OF PHYSICAL PLANT – EL CONQUISTADOR GOLF & TENNIS
Golf Courses
ECGT includes three separate golf courses in two locations, with 36 holes (Conquistador and
Cañada) at ECGT and 9 holes at Pusch Ridge and the El Conquistador Resort. These courses
were originally developed to be an amenity to sell residential lots, and have a somewhat
convoluted construction history. According to the original architect Jeff Hardin, numerous
changes to land ownership, development plans and golf corridors contributed to the awkward
routing of the courses. In several locations, the distance between holes is significant and it is
often difficult for players to know where to go next. Further, this awkward routing mandates cart
use, and also contributes to extra management and maintenance challenges, convoluted
starting for tournaments, and prevents efficient flexible uses, such as 9-hole rounds.
Design
The 36-hole facility today is comprised of two 18-hole, regulation courses: the “Conquistador”
and “Cañada” Courses. The Conquistador is generally across natural desert terrain with several
holes along washes and drainage areas. Single family homes border most of the golf course
with only one area where golf holes are parallel to one another. Corridors are tight and it is
observed that many homes are protected against errant balls with poles and netting. A small
portion of the course abuts commercial development. The Cañada is on more dramatic land,
with golf holes playing along desert washes and across ridges. Single family homes border
nearly all holes with a few holes bordered by a multi-family development. Commercial
development borders a few areas of the course.
The design by Hardin and Nash has not had much done to it over the years. Bunkering is still in
their 1980s-90s style with some bunkers added for curb appeal as opposed to strategy. Forced
carries over desert areas are infrequent, at least to the point of being too demanding. Among
the biggest drawbacks is the lack of more forward tees to allow yardages much less than 5,000-
yards on either course. Greens and approaches are good and varied. Greens are generally
large with undulations significant, yet playable.
Cañada plays 6,636 yards from its longest tee and to a par of 72. The course has a total of four
tee positions, but can play from six positions using combinations (Blue-White or White-Red),
allowing for play from 6,636 yards to 5,093 yards from the most forward regulation tee (not
counting “family” tees). The course has a USGA slope rating of 135 from its Blue tee, which
represents that the golf course is 15% “harder” than the standard slope of 117. The other
shorter-length tees are also higher than the “standard” for difficulty, meaning that the Cañada
Course is considered harder to play and thus appropriate for skilled golfers and golf
competitions and may be less appealing to beginners and less-skilled players.
The Conquistador Course plays 6,720 yards from its longest tee and to a par of 72.
Conquistador also has four tee positions, but can play from six positions using combinations
(Gold-Silver or Turquoise-Red), allowing for play from 6,720 yards to 4,773 yards from the most
forward regulation tee (not counting “family” tees). This course has a USGA slope rating of 129
from its Black tee, indicating the course is “easier” than Cañada, but still more challenging than
the standard slope of 117. The other shorter-length tees are comparable to the “standard” for
difficulty, and the mix of yardages give a nice selection for all players.
Among the most detrimental aspects of the courses is the lack of continuity between the starting
and finishing holes. The Conquistador Course begins at the clubhouse with its 9th hole remote
by approximately 1/2 mile. To access the 10th hole, players must drive along the practice range
and/or through neighborhoods. The 18th hole then finishes against the clubhouse. The Cañada
Course begins at the clubhouse and has long journeys between holes, and a 10th hole more
than a mile from the clubhouse. The 18th hole of Cañada also finishes against the clubhouse.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 30
July 5, 2017
Clubhouse Review
The support structures at ECGT include the approximately 18,000 sf clubhouse facility that is
generally divided into three levels, and separate from the attached community center (more
below). All elements appear to be generally functional, but the facility is deteriorating and has
certain space allocations that could be improved to provide better appeal. The building is not
compliant with the Americans with Disabilities Act (ADA), and thus any changes to the facility
will have to include achieving ADA compliance. The NGF believes that improving the physical
condition of the ECGT clubhouse is key for improving economic performance of the facility, as
the clubhouse is important for creating the initial impression and a match to other Town facilities
would be ideal. Key NGF observations regarding the El Conquistador G&T clubhouse include:
Level 1
x Pro Shop – The pro shop area includes adequate retail space, offices and storage.
The pro shop location is good, with proximity to the main entrance, locker room
areas and rear entrance to the golf courses. There is some visibility to control key
golf areas such as the cart staging area and the driving range.
x Locker Rooms - The ECGT has a men’s and ladies’ locker room/restroom, located
in the hallway past the pro shop and close to the rear entrance. These areas include
newer refurbished restrooms and approximately 250+/- ½ lockers in each locker
room. The Men’s locker room includes some space for card tables and a billiard
table. Staff reports that the lockers are mostly unused and thus the locker room
space could be re-purposed to other uses without much objection from customers.
x Outside Space – ECGT has outdoor spaces on the lower level of the clubhouse that
could be used for outdoor F&B service or additional gathering space. The small
tented area for about 30-35 patrons, located proximate to the south end of the
community center close to the attachment with the golf clubhouse and the Garden
Café that is now closed (more in F&B review).
Level 2
x Food and Beverage Service Area -The service area for F&B is of modest size,
with seating for about 140+/- patrons inside the Overlook Restaurant. This space is
divided by an attractive center fireplace and has the bar and casual seating area for
about 60-70 to the left, and a more formal area with seating for 60-70 to the right and
center. The area includes only full tableside wait service, with no walk-up snack bar
area that is popular with golf courses.
x Kitchen Space - The ECGT clubhouse has a large kitchen with enough space to
adequately service the Overlook Grill and the upstairs banquet area for most days
except only the largest events and banquets. Still, the kitchen and banquet space
available limits the size of parties that can be adequately served at the ECGT.
x Sunset Room Area – The ECGT also includes a second level meeting room with
capacity of up to 120 patrons. This setup is ideal for a public golf course and can
help maximize F & B revenue with increased appeal for both golf events
(tournaments) and non-golf activity such as meetings and gatherings.
Basement Level
x Bag and Cart Storage Area - The clubhouse at ECGT has a basement level for cart
storage, adequate to store and charge up to 120 electric carts and additional
beverage carts. The space also includes work areas for staff and some storage.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 31
July 5, 2017
Driving Range/Practice Areas
The driving range could be an outstanding feature at ECGT, but the facility may not be large
enough to accommodate the demand from golfers at the 36-hole ECGT. The range is only 70
yards wide, thus allowing for only about 20 hitting stations to be used at any one time. When the
two courses are full (or during larger events) this size is not adequate to accommodate the
demand from all golfers. The range has good depth at 280+ yards and there is a separate
member area on the back end (northwest side) of the range that can be accessed via W.
Cañada Hills Dr. and via cart paths currently on either side of the range. Good driving ranges
provide at least 30 separate tee line positions so each line is used only one day per month to
ensure turf health. Many courses with smaller range tee depth have gone to adding a line of
artificial turf for use 1-2 days per week to let the other turf heal and recover (more later in this
report). In addition to the range, ECGT offers three practice greens and one practice chipping
area. These amenities are generally consistent with high quality golf facilities, but may be a little
small for a 36-hole facility.
While the range is proximate to the clubhouse and Overlook Restaurant, F&B service to range
users is not convenient since the Garden Café closure. A growing trend in golf is to make
concessions convenient and available, including beer and alcohol, to range users in an effort to
“liven up” range activity and add appeal.
Community Center Review
In addition to, and immediately adjacent to, the ECGT golf clubhouse is the 33,000+/- sf Oro
Valley community center with various fitness and recreational amenities, as well as the Town’s
Parks and Recreation office. This community center is the key recreation amenity for the Town
and has a divided operation, with the Town responsible for basic recreation and programming,
while the golf operator (Troon) is responsible for the tennis operation. All full members of the
ECGT have access to the recreation facilities, and the Town also offers a separate recreation
membership that is separate from golf. The basic amenity package included with the community
center comprises:
Community Center Interior
x Entrance Lobby and Offices – The center includes a welcome desk and a large
amount of information on recreation programs and the community center. The offices
for the Town’s Park and Recreation Department are included in this space. This
space may not be effectively utilized and some renovation to provide better
separation of functions may be warranted.
x Fitness – There is considerable space for various fitness activities, including both
free weights and exercise machines. Machines include treadmills, exercise bikes and
weightlifting machines. This equipment looked to be newer and in good condition.
The space for fitness is a combination of former racquetball courts and the hallway
entrance for racquetball. Some improvement to this area could improve access and
add more space for fitness.
x Day Care Area - The community center has a small “Kids Korner” area for children
to use while parents are working out or engaging in recreation. This space is for
younger children and there is no teen room for older kids activities.
x Racquetball Courts – The community center has six racquetball courts, although
some are currently used for other activities, such as aerobics or exercise bikes. The
Town is considering reducing the number of courts and opening the space for
increased fitness activities.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 32
July 5, 2017
x Garden Café – The center has a small snack bar area with kitchen (grill, fryer and
oven) and a pass-through window for easy service. This area was closed in 2016 to
reduce expense, as the space was not heavily used. However, this space is the only
walk-up casual dining area for ECGT and this type of service is popular with golfers.
x Locker Rooms – This center has smaller men’s and ladies’ locker rooms, which are
essentially changing areas and restrooms for fitness and tennis patrons.
x Meeting Room (Arizona Room) – The center has a small meeting room for up to 10
with conference table and seating. Improved audio/visual (A/V) capabilities and new
furniture would help to make the room more appealing for private use.
Community Center Exterior
x Tennis – The town has a total of 15 lighted tennis courts and 4 pickleball courts in
the exterior and on the community center grounds. The courts are concrete and are
showing some wear and could be improved. There is limited services for the tennis
patrons (restrooms or F&B), and tennis players must come into the community
center or clubhouse for these services.
x Swimming Pool - The town is operating Two (2) swimming pools (1 lap pool + 1 rec.
pool) at the community center. There is also a little pool and Jacuzzi that gets very
limited use and could be re-purposed (Town is considering a splash pad).
Other Structures and Facilities
ECGT Maintenance Compound
The maintenance facilities at ECGT include a 1.5 acre compound on east side of La Cañada Dr.
with equipment storage and maintenance offices. It appeared to NGF that the maintenance
compound included all of the basics required for adequate golf course maintenance, including
appropriate chemical storage, employee areas and equipment repair areas. The golf
maintenance facility is adequate and appears to have ample space. Troon estimates that an
investment of $150,000 needs to be made to bring certain aspects of the facility up to date. This
investment would be largely corrective in nature.
Pusch Ridge Pro Shop and Maintenance
Pusch Ridge includes a separate 6,500sf support building that is now primarily used for a tennis
pro shop and storage for the resort in areas that were originally designed as racquetball courts.
This space was very small, and appeared to be in declining condition and may ultimately have
to be removed and replaced. Pusch Ridge has a separate small maintenance area with
equipment storage and maintenance facilities. It is expected that this facility can serve the
continued maintenance needs of Pusch Ridge into the foreseeable future.
Pusch Ridge Tennis Courts
In addition to the 15 courts at ECGT community center, there are 16 additional lighted courts
with grandstands at Pusch Ridge and the El Conquistador resort. These courts appeared to be
in much better condition than the ECGT and staff reports heavy use from both the Oro Valley
community and resort guests. There are several tennis events held each year that attract
patrons and help the resort fill rooms.
On Course Facilities
Each of the ECGT 18-hole golf courses includes comfort stations with restrooms and drinking
fountains. These facilities appeared to be in good working order with a good appearance, and
are providing the basic restroom and water drinking stations typically associated with better
quality golf courses.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 33
July 5, 2017
REVIEW OF GOLF COURSE CONDITION AT ECGT
The NGF review of ECGT documented the general condition of the golf courses and the inputs
required (staffing, budget, equipment, etc.) for maintenance. The turf care and setup of the golf
courses has a great deal to do with the satisfaction of golfers/customers. Conditions of the two
courses were evaluated by touring the facilities and discussing concerns and procedures with
the Troon maintenance staff. While no in-depth agronomic, soils, water or maintenance practice
overview was conducted, we believe the reporting here to reflect a good overview of conditions.
Global Review of General Golf Course Conditions
The primary issues at both courses have to do with deferred maintenance. As noted, no
significant improvements have been made, at least none that amount to a major renovation or
remodeling, during the 30 or more years the courses have been opened. Over the years small
projects here and there have been implemented, yet no work has outright replaced any
complete infrastructure system since the Conquistador was opened in 1982, and Cañada in
1985. Review of key infrastructure conditions at ECGT:
x Greens:Most recently Troon has resurfaced greens on the Conquistador Course.
Resurfacing involved removing the upper layer of turfgrass, replacing sand and
seeding with T-1 Bentgrass. Rootzones at these greens are still 35 years old. Greens
at the Cañada Course are reported by Troon to be in need of a similar resurfacing.
These greens are currently planted with TifDwarf and have significant infestation of
Poa Annua. Overall, greens are currently holding up with the noted resurfacing a
major capital item yet to be funded and scheduled on the Cañada Course.
x Tees:The tees are in many cases crowned and in need of releveling. The most
pressing issues with tees are size (many are too small to support play) and the lack
of intermediate and forward tees on nearly all golf holes. Having tee flexibility for
varying yardages to accommodate players of wider skill ability is an extremely
important goal for the courses.
x Bunkers:All bunkers need to be rebuilt. Many should be eliminated. Bunkers are in
many cases too large and making them smaller as part of rebuilding is
recommended. Bunkers are also of varying styles, which may be attributed to having
some exist solely as curb appeal. Jeff Hardin noted that some bunkers were simply
added by the developer without the golf course architects knowledge.
x Turf:Turf conditions in roughs and fairways are adequate. Drainage is a problem in
some areas, especially where water is focused into swales that are within landing
and high traffic areas. Poor irrigation coverage contributes to drainage issues.
x Cart Paths:Cart paths are in need of significant repair and/or replacement. Extruded
curb has been used to form edges and these are a tripping hazard, unsightly and
also prevent adequate and required ADA access to some tees and greens.
x Trees:Trees have been allowed to grow uncontrolled in some areas. Dense
vegetation has cropped up along fairways in washes. Some plants are invasive and
need to be removed. Overall, a major investment in arbor care is required to remove
dying trees, overgrown trees and trees that may pose a hazard from falling limbs
(e.g., Eucalyptus varieties), and to prune trees to remain that are desired.
x Ponds: The irrigation ponds have concrete edges and are reported to be lined with a
soil sealant (not verified). Troon reports that the Town has conducted leakage tests,
but these were not necessarily conclusive. The Town has indicated to us that more
accurate tests will be conducted to verify whether or not the ponds leak. Leakage is
of paramount concern considering the cost of the effluent water to the Town.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 34
July 5, 2017
Irrigation and Water Issues
Overall, irrigation remains the greatest area of maintenance concern and has shown
considerable decline since the original development. The aging system is a mismatch of
controls, heads and inefficient pipe sizes that have been patched together over the years. The
irrigation system condition is directly affecting turf quality; contributing to wet spots and poor
drainage; and is costing the Town considerably in terms of inefficient irrigation, by volume,
manpower and energy consumption. Troon Golf reports an average of 300,000 gallons of water
per course per day costing over $740,000 in 2016 (35.5% of total golf maintenance budget).
The conclusion of the team is that a major investment in irrigation replacement must be made
regardless of how the courses are to be reconfigured.
There are two pump stations in use for the 36-holes. The upper station (located near the No. 3
Hole of the Conquistador Course) was recently re-built and is operating well. The lower station
(located adjacent to the maintenance facility) is settling into the wet well and has other serious
signs of aging and decline. It is likely that this station needs to be fully replaced in lieu of repair,
motor replacement, etc.
The 36-hole El Conquistador Facility reports a total turf area of 146 acres, or an average of four
acres per golf hole (although the range and practice areas are included within the 146 acre). For
a desert “target” style golf facility the average per hole is high. Many areas can be removed from
turf, but this must be handled so it does not adversely affect playability or strategy. Turf
reduction is discussed further in subsequent sections.
The irrigation systems are well past their useful life cycle, but have been patched together over
the years to remain in operable condition. Many improvements have been made by Troon and
there is a history of replacing components and control systems when they “absolutely have to
be replaced,” but no more frequently. The system, by now, is in total need of replacement with
the exception of some main lines may be suitable to be left intact in a few areas (please see
separate report by Coates Irrigation Consultants).
Safety Issues
Troon did not report any incidents of injury from errant balls, cart accidents or falls associated
with the golf course areas. This may be because they have only been managing the courses for
a few years and do not have a complete history of incidents.
Although no in-depth safety evaluation was made by the NGF/FRA consulting team, consultants
did note the presence of poles and nets to protect homes. In considering reconfiguration
options, it is recommended that the issue of errant balls be weighed in selecting what parcels
and areas to consider for removal from golf uses. Among the safety issues that should be
addressed further by the Town include:
x Errant balls (specifically those to adjacent property, ROWs and public spaces)
x Cart path gradients, curves and widths
x Access from paths to tees and greens
x Curbs along paths that may pose a tripping hazard
x Dense vegetation that prevents players from seeing one another on nearby holes
x Path access to and from the practice range and distant starting holes with
inadequate fencing/netting along paths
x Practice greens at the end of the range that may not be situated ideally (e.g., are too
close to areas of active range use)
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 35
July 5, 2017
It is noted that corridor widths of golf holes, while in some locations too narrow, are generally
consistent with a course of this age. Design guidelines and golf use widths have increased over
time, so it cannot be expected that older courses will have widths of golf corridors that match
what would be required in recent times.
Consideration was given to the options to reconfigure the golf courses that took into account
removing certain holes from golf use, as well as relocating tees, fairways and non-turf areas to
better address issues of corridor width. Reconfiguration options, where practical, are shown to
improve safety and yield better courses from the perspective of errant balls to outside parcels.
Maintenance Staffing and Budget
The NGF has reviewed the staffing and budget for maintaining the 45-hole ECGT in 2016.
Documentation provided by the Club and the Town show a total golf course maintenance
budget of $2.34 million in FY2016 with a total of 20 golf maintenance staff, all full-time
employees. Of this amount, $2.09 million is on the 36 holes at ECGT and about $250,000 is for
maintaining Pusch Ridge. When compared to industry standards the NGF finds the ECGT to be
well above expectations in budget and in-line on staffing. This can be expected given the large
water cost that is common in this part of the country. Better quality public golf courses spend
between $650,000 and $800,000 per 18 holes on maintenance with a staff of 8 to 12 employees
per 18 holes (maintenance only and excludes capital upgrades). When adjusted for size, we see
that ECGT is spending around $1.0 million per 18 holes on maintenance at ECGT with 8.0
employees per 18 holes.
Golf Maintenance Budget
As noted, the NGF data shows golf course maintenance budgets between $650,000 and
$800,000 per 18 holes for better quality golf courses nationwide, but NGF has an expectation of
higher maintenance expense in Arizona due to the climate and direct cost for irrigation water.
The traditional mix of expense proportions are shown in the table below derived from NGF
research. It is important to realize that so many components can impact the final appearance of
the course. Utilization of the facility, weather patterns, grass types, design characteristics,
infrastructure limitations are all part of the variables affecting the maintenance costs. A
summary of maintenance expense proportions for the ECGT main 36-hole course, along with
NGF-estimated “standard” proportions is shown below:
ECGT Golf Maintenance Expense
Function ECGT Expense
in FY16
% of Total ECGT
Maint. Budget
US Industry
Standard %
Arizona Standard
(NGF Estimate)
Labor/ Benefits $722,206 35% 50% 40%
Repairs & Maint. 414,740 20% 25% 25%
Operations 92,315 4% 15% 15%
Utilities 860,535 41% 10% 20%
Total ECGT $2,090,963 100%
Golf Maintenance Staffing
ECGT is operating with a large golf maintenance staff to account for a 45-hole operation. Staff
reports there is no formal assignee to the Pusch Ridge course, and maintenance activity at that
separate 9-hole course is on an as-need basis from existing staff. The basic staffing for ECGT
includes the positions shown in the table below. The NGF estimates a comparative total of 20
full-time equivalent (FTE) positions, an amount equal to * FTEs per 18 holes:
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 36
July 5, 2017
Golf Maintenance Positions (all FT)
Grounds Superintendent
Asst. Superintendent
Foreman (3)
Irrigation Specialists (2)
Mechanic
Asst. Mechanic
Greenkeepers (11)
Total Staff = 20
Equivalent – 8 FTE per 18 holes
REVIEW OF PUSCH RIDGE GOLF COURSE CONDITIONS
Originally conceived as an 18-hole course to serve the destination resort, legal battles and
property disputes soon resulted in only nine holes being built. According to Jeff Hardin, the co-
designer of the course, Pusch Ridge became an “orphaned” golf layout with no land on which to
build a second nine holes. The resulting decision was to build an entirely new course further
down on the slopes of the mountain, now the home to the El Conquistador 36-hole layout.
Opened in the early 1980s, the course winds around the Hilton El Conquistador Resort and
between patio homes. Distant views are dramatic, and even more so are views up to the Santa
Catalina Mountains and the prominent Pusch Ridge feature, so named for George Pusch
(1847–1921), who came to Arizona from Europe in the 1870s and settled in the Oro Valley area.
Design
Pusch Ridge is an unusual 9-hole course in that it is generally a difficult layout with very tight
and demanding holes. Most stand-alone 9-hole courses across the U.S. are typically easier
layouts with many being well less than regulation par-36 designs. The par-35 design of Pusch
Ridge is not for the faint at heart. Fairways are very narrow, lined with dense desert brush and
are undulating. Elevated greens occur at five of the nine holes.
The course plays to about 2,800 yards with some yardage flexibility from forward tees.
Bunkering is sparse, but formidable - bunkers are deep and many require high recovery shots to
reach the green. The course has dramatic views and, while technically walkable, is made
difficult by the severe slopes and a few long spans between holes. Aside from a small practice
putting green, there are no practice facilities at the course.
Conditions and Safety
Conditions of the course were evaluated by touring the facilities and discussing concerns and
procedures with the Troon maintenance staff. While no in-depth agronomic, soils, water or
maintenance practice overview was conducted, we believe the reporting here to reflect a good
overview of conditions that may be used to form next steps by the Town. Team findings:
x As with the El Conquistador Courses, the primary issue has to do with deferred
maintenance. No improvements have been made in recent years and there is no
specific golf feature or infrastructure that could not be fully replaced, rebuilt or
renovated to attain an above average level of quality.
x The Town has opted to approve closure of the course during the off-season (summer
months) in order to save operating costs. Water is applied to the course, but
sparingly during the summer. Maintenance during the closure period is minimal with
weekly mowing and regular greens maintenance.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 37
July 5, 2017
x Turf conditions in roughs and fairways appear adequate. Drainage is not seen as an
issue, although some flatter areas are reportedly problematic after heavy rains. In
large part, the course is a very simply design that was built minimally to take
advantage of natural terrain and gradients.
x Cart paths are in need of repair, replacement or completion in some areas. There are
specific locations where cart paths are problematic to ADA access guidelines, such
as tees and some green areas.
x Underbrush of natural desert areas along fairways has been allowed to grow
uncontrolled. Some areas have invasive species that should be removed by hand to
prevent spreading of unwanted plants in the naturalized desert areas in the area.
Some trees are dead, dying or in need of pruning and care.
Safety Issues
Troon did not report any incidents of injury from errant balls, cart accidents or falls associated
with the golf course areas at Pusch Ridge, although NGF/FRA noted the same narrow corridor
issues as with ECGT. In the context of transforming Pusch Ridge (to be presented later in this
report), safety issues could be mitigated through shortening the holes to an all par-3 format.
x Among the safety issues noted that should be addressed further by the Town are:
x Errant balls (specifically those to adjacent property, ROWs and public spaces)
x Cart path gradients, curves and widths
x Access from paths to tees and greens
x Curbs along paths that may pose a tripping hazard
It is noted that corridor widths of holes, while in some locations too narrow, are consistent with a
course of this age. Design guidelines and golf use widths have increased over time, so it cannot
be expected that older courses will have widths of golf corridors that match what would be
required in recent times.
Irrigation & Water Issues
The Pusch Ridge course is irrigated with potable water as there is no available supply of effluent
water. Even though a site exists to build a small water treatment plant, this parcel was excluded
in the sale of the courses to the Town from HSL Properties. As a result, the cost of water to
irrigate the golf course is very high at Pusch Ridge, totaling some $122,000 in 2016 (50% of the
total golf maintenance budget). The 9-hole course reports a total turf area of 40 acres. The
NGF/FRA team expects that some areas can be removed from turf, although remodeling the
course as a 9-hole regulation length course is not recommended (more later in this report).
The irrigation system is old and simple, and should be fully replaced regardless of whether the
Town opts to transform the course into a new golf experience or simply bring it up to par in its
current 9-hole regulation format. These options are discussed in subsequent sections. Water is
pumped uphill from a small pond trough a booster pump within the system. Heads and controls
are also older, and accuracy and coverage of irrigated areas is well below industry standards.
Water is being wasted through the old and inadequate system.
The single irrigation pond is reported to be soil sealed with no formal edge treatment although
the pond condition was not verified by consultants). Troon reports that the Town has conducted
some leakage tests, but these were not necessarily conclusive. The Town has indicated to us
that more accurate tests will be conducted to verify whether or not the pond leaks. Leakage is of
paramount concern considering the cost of the potable water the Town uses at Pusch Ridge.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 38
July 5, 2017
REVIEW OF GOLF OPERATIONS
In the following section, the NGF provides a review of key areas of the ECGT operation,
including staffing, technology, fees, ancillary centers, organized activities, marketing and other
issues key to the future of the operation.
Organizational Structure
The golf system is part of a Community Center Fund that also includes Town-operated elements
such as the recreation programs and swimming pools (located on property at ECGT). As noted,
the El Conquistador Golf & Tennis facility is operated by the Town of Oro Valley through a
management contract agreement with Troon Golf, LLC (“Troon”), and all staff at the facility is
employed directly by Troon. It was reported to NGF that the agreement to turn over ECGT to the
Town of Oro Valley included a requirement that a third-party management company must
operate ECGT.
The basic structure of the golf operation is comparable to a growing number of municipal golf
courses nationwide, of which approximately 56% are fully self-operated, 15% are managed by a
third party and the remainder are managed by a mix of various lease and/or concession
components. The most common concession component is in the food and beverage area,
where growing majority of municipal golf courses employ a private F&B vendor via contract.
Troon Golf Management Agreement
The Troon management contract dates back to December 2014, executed in advance of the
formal Town take-over of ECGT in May 2015. Troon’s general responsibilities include
supervising the daily operations designated by the Owner (Town), and include all elements
commonly associated with golf facility operations (golf, maintenance, F&B, merchandise, etc.),
but also includes additional items like tennis courts and swimming pools. The basic terms of the
management agreement include:
x Management Fee:From May 1, 2015 and after, a base management fee for each
Fiscal Year is equal to $144,000, equitably prorated for any partial Fiscal Year. This
equates to $12,000 per month and is exactly 4.9% of the total revenue earned in
2016. Financial data presented to NGF shows total management fee paid to Troon
as only $108,000 (3.7% of gross revenue).
x Incentive:From January 1, 2016 and after, an incentive management fee equal to
$20,000 payable by Owner to Troon in the event the gross margin for the applicable
Fiscal Year exceeds $5.0 million. With actual Gross margin in FY2016 close to $2.35
million five million dollars, it would seem to NGF that this is not a real “incentive” as
the target is generally not achievable under the current status and structure.
Staffing
All staff at ECGT (including The Overlook) is employed directly by Troon, as part of the golf
budget ultimately approved by, and supported by, the Town of Oro Valley (pass through). ECGT
has a total of 32 full-time positions and upwards of 44+ additional part-time positions, with some
seasonal variation. The current senior management positions at ECGT include:
x Facility General Manager (GM):Responsible for the entire facility operation and
oversees all departments.
x Grounds Superintendent:Maintenance for all three golf courses is overseen by the
GCSAA Class-A Golf Superintendent, who has been with ECGT for less than 2
years. This position is also full-time with benefits.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 39
July 5, 2017
x Head Golf Professional:Responsible for managing the golf course operations and
is staffed by a Class-A PGA golf professional, as is customary in golf operations.
x Food and Beverage Manager:Manages the F&B operation at ECGT, with focus on
“front of house” operations and customer service.
x Head Chef:Oversees the kitchen at ECGT, and all “back of house” F&B operations.
The basic staffing for ECGT includes the positions shown in the table below. Full-time (FT)
positions include salary and benefits. There are fewer part-time (PT) positions at ECGT, but the
PT staff tends to work more hours than is typical in golf, and are more like full-time hourly
positions. The NGF estimates a comparative total of 54+/- full-time equivalent (FTE) positions in
golf system staffing, equating to 21.6 FTE’s per 18 holes, including Pusch Ridge (PR):
General & Admin. Positions Pro Shop / Operations Positions
General Manager (FT) Head Golf Professional (FT)
Staff Accountant (FT) Assistant Professionals (2 – FT)
Membership Director (FT) Pro Shop Attendants (2 – PT)
Membership Coordinator (PT)
Tennis Operations Golf Course Maintenance (Incl. PR)
Tennis Director (FT) Grounds Superintendent (FT)
Tennis Professionals (3 – PT) Asst. Superintendent (FT)
Tennis Shop Attendants (3-PT) Foreman (3 - FT)
Guest Services Irrigation Specialists (2 - FT)
GS Supervisor (.5 – PT) Mechanic (FT)
Starters / Rangers (1.5 PT) Asst. Mechanic (FT)
GS Staff (10 – PT) Greenkeepers (11 - FT)
Food & Beverage / Concessions
F&B Front of House F&B Back of House
F&B Manager (FT) Head Chef (FT)
F&B Supervisor (FT) Sous Chef (FT)
Lead Server (FT) Line Cook (4 – PT)
Servers (9-PT) Staff (2 – PT)
Bussers (2.5 PT)
Greeter (.5 – PT)
Bartender (3-PT)
Beverage Cart (2 – PT)
Staffing Summary
The staffing for ECGT appears to have more employees than is “typical” for public golf courses
in the U.S., even when part-time employees are considered. The staffing model at ECGT seems
more in line with private club averages from NGF. There are no industry standards that can be
referenced to determine the appropriate staffing levels for a golf operation. The number of staff
needed for a particular golf operation depends on several factors, not the least of which is
budget considerations. Personnel costs typically represent the largest single expense item in a
golf course operation, as is the case for ECGT (labor cost = 49.9% of total operating expense in
2016). The NGF data on both public and private golf operations in 2016 show averages for full-
time staffing at 18-hole golf courses nationwide (table below). This level of staffing represents a
reduction from 2009 figures as a result of declining income and the need to reduce expense.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 40
July 5, 2017
El Conquistador Golf & Tennis
Total Facility Staffing – 2017
Facility Operations Staff
(FT / PT)*
Maintenance
Staff (FT / PT)
F&B Staff
(FT / PT)
Total Staff
(FT / PT)
El Conquistador G&T 7.0 / 21 20.0 / 0 5.0 / 24 32.0 / 45
Avg. per 18-H 2.8 / 8.4 8.0 / 0.0 2.5 / 12.0**12.8 / 18.0
Industry “Standards” (per 18 holes)
Public Golf Courses per 18 Holes 2.0 / 9.0 4.0 / 9.0 1.0 / 2.0 7.0 / 24.0
Total FTE – Public 18 6.5 8.5 2.0 17.0
Private Clubs per 18 Holes 4.5 / 12.0 6.0 / 18.0 1.5 / 5.0 12.0 / 35.0
Total FTE – Private 18 10.5 15.0
4.0 29.5
*Includes G&A, tennis and guest services staff. ** F&B staff is for the 36 holes at ECGT only – no F&B at PR.
Marketing and Technology
Review of the ECGT financial history shows $83,385 was spent in FY2016 on advertising and
promotion, with an equal amount expected in FY2017 ($77,210 through 10 months). In addition,
Troon (the Town) employs a full-time marketing and membership coordinator to advertise and
promote the facility and membership. Staff reports to NGF that the responsibilities in these
positions are to serve members first, and then concentrate on marketing.
Traditionally, NGF recommends marketing budgets for golf courses of 1-2% of total gross facility
revenue, or between $29,000 and $48,000 for ECGT in 2016. A review of the marketing
initiatives and materials show strong efforts to draw activity to ECGT, through print, mail, web
and other efforts. The key areas of focus for increasing activity and revenue at ECGT include:
x Membership Promotions – The club is active in promoting various membership
plans as a primary focus of marketing.
x Daily Fee – various cross promotions with other golf businesses and lodging
facilities, as well as targeted green fee specials.
x Email – using the EZ Links database to target promotions via email, and is active in
using the platform for marketing and advertising events and specials. This is a key
“best industry practice” for public golf in 2017 and is very effective.
x Events and Tournaments – The marketing staff is active in promoting and selling to
organizations, clubs and corporations to try and attract events and tournaments to
ECGT. This is another key “best industry practice” for public golf in 2017.
x Activities – ECGT is promoting club activities and events, targeted at both members
and the public (e.g. Mother’s Day Brunch, etc.).
Technology and Systems
ECGT is presently using a modern Point-of-Sale (POS) system that includes all modules
commonly associated with successful golf operations. Our review shows ECGT staff is using its
software systems to provide assistance in marketing and customer tracking with:
x Loyalty program modules
x Customer database segmentation through enhanced reporting
x Direct email-to-the-consumer marketing and integration with social media
x Web site remodeling to become the central focus of the golf marketing
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 41
July 5, 2017
Concerns of Marketing Staff
The marketing staff at ECGT expressed various concerns to NGF about specific issues that
inhibit the ability to market the club effectively. The most significant of these concerns included:
x Political Discourse – The internal Town debates about the future of the club is
creating uncertainty and impacting demand for both memberships and daily fee golf.
x Technology – ECGT should improve its tech platform and improve the mobile app.
x Clubhouse – The current clubhouse does not show well and needs a facelift – it is
the first thing prospects see and it does not make a good first impression.
Golf Playing Fees
ECGT offers a complex golf fee program, with a set rate for 18-holes based on time of year,
time of day and day of the week. There are also discounts for various multi-play programs and
internet specials. Based on our market review, the fees seem generally appropriate, but some of
the rates may be confusing to customers less familiar with the program. Fees are set with time
of play discounts that is in line with the convention in this market. There is also no distribution
between the courses, which may not be the most ideal given the premium demand for
Conquistador over Cañada due to newer greens. A summary of the fees at ECGT:
El Conquistador 2017 Daily Golf Fees
Time of
Day
Jan 1-Apr 30
Non-Prime/Prime
Time of
Day
May 1-May31
Non-Prime/Prime
Time of
Day
June 1-Sept 30
Non-Prime/Prime
First Block BB 8:00-10:00 $49 / $55 6:30-10:00 $35 / $39 6:30-10:00
$29 / $35
Second Block BB 10:01-
12:00 $45 / $49 10:01-
12:00 $29 / $35 10:01-
12:00 $25 / $29
Third Block BB 12:01-2:00 $39 / $45 12:01-3:00 $25 / $32 12:01-5:00 $20 / $25
Fourth Block BB 2:01-5:00 $29 / $39 3:01-5:00 $22 / $29 12:01-5:00 $20 / $25
Troon Card $39 / $45 $22 / $29 $20 / $25
Troon Advantage $35 / $45 $39 / $45 $25 / $29
Wholesale $60am - $40pm $30am - $20pm $20
Replay $35 $20 $15
Junior $25 $20 $15
Time of
Day
Oct 1-Oct 31
Non-Prime/Prime
Time of
Day
Nov 1-Nov 30
Non-Prime/Prime
Time of
Day
Dec 1-Dec 31
Non-Prime/Prime
First Block BB 7:00-10:00 $39 / $49 7:30-10:30 $49 / $55 8:00-10:00 $49 / $55
Second Block BB 10:01-
12:00 $35 / $45 10:31-
12:00 $45 / $49 10:01-
12:00 $45 / $49
Third Block BB 12:01-2:00 $29 / $39 12:01-2:00 $39 / $45 12:01-2:00 $39 / $45
Fourth Block BB 2:01-5:00 $25 / $35 2:01-5:00 $29 / $39 2:01-5:00 $29 / $39
Troon Card $29 / $39 $39 / $45 $39 / $45
Troon Advantage $35 / $45 $45 / $49 $45 / $49
Wholesale $30am - $20pm $55am - $35pm $55am - $35pm
Replay $20 $35 $35
Junior $20 $25 $25
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 42
July 5, 2017
Membership
ECGT offers an annual membership program that is mostly a holdover from the days before
Town acquisition. The premium membership sells for $440/month for a Town resident family
and $485 per month for a non-resident family. Cart fees and trail fees for private carts are in
addition. The club reports a total of 241 members in early 2017, up from around 230+/- in 2016,
but down from its pre-Town semi-private club days in 2008 when there were over 350 members.
The ECGT members are a very active group and comprise a lot of activity in local associations
(more later in this section). New categories of membership have been added in the last year in
an effort to stimulate demand. Updated 2017 pricing is shown below:
El Conquistador 2017 Membership Fees
Resident
Monthly/Yearly
Non-Resident
Monthly/Yearly
Trail Fee Annually
Individual/ Family
Club Cart Annually
Individual/ Family
CONQUEROR MEMBERSHIP1
(Formerly "Family" Membership)$440/$5,280 $485/$5,820 $1,200 $1,800
EXPLORER MEMBERSHIP
(Formerly "Individual" Membership)$295/$3,540 $325/$3,900 $850 $1,200
DISCOVERY2
(Formerly "Junior Executive"
Membership)
$320/$3,840 $350/$4,200 $850/$1,200 $1,200/$1,800
ADVENTURER MEMBERSHIP3 $50/$600 $60/$720 n/a n/a
WEEKEND WARRIOR4
Single $100/$1,200
Couple $160/$1,920
Family $240/$2,880
Single $50 Monthly
Couple $80
Monthly
Family $145
Monthly
Single $75 Monthly
Couple $130 Monthly
Family $195 Monthly
1. Four family member maximum
2. Ages 45 and under; four (4) family member maximum
3. Ages 18 and under; one (1) junior maximum
4. Access to 36 holes of unlimited golf on Fridays after 2 p.m., Sat-Sun, holidays and your birthday.
The presence of memberships at public courses is common nationwide, but they usually come
in the form of pre-paid green fee arrangements or season passes, rather than “memberships.”
The very concept of membership includes a connotation of privilege and exclusivity that is
common with private golf clubs. The memberships at ECGT have been affordable when
compared to other private clubs in the area and very affordable when the additional community
center amenities are included. Review of data shows that the 240 members at ECGT are
producing 25,280 rounds and $876,134 in dues revenue (30% of total ECGT revenue). This
produces an estimated $34.66 per member round in revenue to ECGT. The resulting rounds
and activity from memberships is summarized below:
El Conquistador G&T
Membership Analysis
2016 2017
Total Members 240 241
Total Member Dues $876,134 $607,040
Member Rounds 25,280 17,634
Avg. rounds per member 105 73
Avg. revenue / member $3,651 $2,519
Avg. Dues per member round $34.66 $34.42
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 43
July 5, 2017
Concession Operations (The Overlook and Pro Shop)
Food and Beverage Operations
The food and beverage operation at ECGT consists of The Overlook, the banquet room and on-
course beverage cart service. The Grill is operated by Troon as a separate department and has
a high staff and service profile. The Overlook is a full-service restaurant operation with full-liquor
bar service, all supported by a wait service staff. The Overlook serves golf customers, but has
also attracting a considerable non-golf lunch business. Overall, this is a full menu operation with
pricing that is appropriate for a public golf course in this market area.
The Overlook is open for lunch seven days a week from 10:00 am to 3:00 pm, followed by a
“happy hour” from 3:00 pm to 6:00 pm. Dinner service is limited to Thursday and Friday, but
weekly specials are on Tuesday (Taco Night), Thursday (Pasta Night) and Friday (Fish Fry).
These hours of operation are a concern for golfers, as the hours are reported to be inconsistent
(sometimes close early) and there are many golfers out on the course well past 3:00 PM. Golf
course F&B concessions work best when the hours of operation closely match the hours of
operation for the golf course, both in the morning and afternoon. The Overlook provides
beverage cart service, but this too is inconsistent, with most service only on weekend and
during tournaments.
The Overlook is also providing full service for all F&B on property, including all of the community
center activities and tennis. NGF observed a “Garden Café” located in the community center
building that used to provide F&B service to community center patrons. This café has been
closed due to inactivity, but included a small kitchen area with grill and small areas for seating
(indoor and outdoor). At present, there is no F&B service in the immediate vicinity of the 15
tennis courts or swimming pools.
The Overlook is also responsible for managing the banquet space available in the upstairs area
of the clubhouse. The facility offers flexible event space to accommodate groups from 10 to 120
people. The golf club is just one of many available event spaces in Oro Valley, including hotels,
outdoor pavilions and the golf club. As the condition of the golf clubhouse has deteriorated, the
event space at The Overlook has become much less popular, especially when compared to
space available at the other venues as noted.
Merchandise Operations
NGF Consulting sees strong performance in the merchandising operation at ECGT. Pro shop
sales were over $212,000 in 2016, or around $4.13 per round. This is compared to the industry
standard of $2.48 per round for merchandise. The items that tend to sell best at facilities like the
ECGT are the obvious “impulse” items (balls, gloves, hats, towels, socks, etc.), but also logoed
merchandise like shirts and outerwear. The El Conquistador logo is very marketable on shirts
and jackets.
The direct cost of merchandise sold has been in the range of the industry “standard” of 70%
cost of sales on merchandise, with ECGT recording around 77% in 2016. A key to improving
sales may be increasing the volume of outing, event and tournament rounds and doing more to
promote key soft items that feature the El Conquistador logo. However, as the total margin on
merchandise is only around 30%, the total net to the Town will never be significant in
merchandise sales. Rather, this is a service to golfers to make the round more enjoyable and
help to bring them back for more.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 44
July 5, 2017
Summary of ECGT Concessions
The pro shop and F&B concession operations at ECGT represents approximately 29% of total
gross revenue at the facility, a figure which is just slightly higher than the Industry standard of
25%. A summary of Concessions at ECGT in 2016 is shown below:
El Conquistador Golf & Tennis
Pro Shop / F&B Concession Operations
Course Basic Features
2016 Total
Gross
Revenue
2016
Revenue/
Round
U.S. Std.
Rev./
Round*
Direct
Cost of
Sales
COS %
of
Revenue
U.S. Std.
COS*
Food & Bev.The Overlook, banquet area and beverage
cart $606,271 $11.79 $6.10* $213,704 35.2% 40%
Merchandise Large and modern retail space with a wide
selection of golf merchandise and apparel.$212,593 $4.13 $2.48* $162,818 76.6% 70%
Total System $818,864 $15.92 $8.58*$376,522 46.0%50%
*U.S. Standard for 18-hole courses.
Golf Cart Operations
ECGT is operating a fleet of 100 carts, with 80 located at ECGT and stored on the lower level of
the clubhouse, and 20 additional carts at Pusch Ridge. In addition, the club reports upwards of
120+/- carts that are privately-owned by members living within the community. The total lease
for the carts is $90,000 per year (4 year lease), which equates to about $900 per cart per year
or very well within the industry standard of $1,000 per cart per year.
The total operating fleet of 80 carts for the two 18-hole courses equates to 40 golf carts per 18
holes, which is below the industry standard of 72 golf carts per 18 holes. However, ECGT does
allow private carts to serve a large portion of regular-play members. Staff reported to NGF that
the lack of carts available for golfer use is a common complaint at ECGT, and the addition of at
least 10-12 carts to the fleet would help to ease some of the availability concerns. If activity
were to increase in the coming years, the number of carts will certainly be inadequate to fully
serve the club on its busiest days. The cart lease also included two beverage carts, which
should be adequate to serve this club given current activity, and NGF typically recommends one
beverage cart per 18-hole course.
Driving Range Operations
Driving range operations represent a minor part of ECGT income, with only $36,600 in income
reported for 2016 ($0.71 per round), increasing to $43,800 in the first 10 months of 2017 ($1.13
per round). The ECGT range is smaller, with a narrow hitting area that leads to a small tee line
and does not allow turf to recover fast enough for the next time of use. This may contribute to
the generally low range revenue at ECGT. As golfers appreciate good quality turf to hit from,
improvement in this area should help range activity and revenue. Driving ranges are important
amenities to golf courses for two reasons:
x Direct Revenue – Driving ranges are a profit center with low associated costs and
realistic revenue levels approaching $2.00 per round of golf. Total range revenue at
ECGT could be as high as $100,000+ if you apply this industry target.
x Indirect Revenue – The presence of a good range at a golf course can also improve
revenue indirectly by improving merchandise and F & B sales (golfers stay longer),
and ranges can help attract more rounds of golf, group events and tournaments.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 45
July 5, 2017
As the driving range segment at ECGT is very small, the NGF recommendations related to
range operations center around ways to expand the amenity and improve use and revenue
(more in recommendations section), possibly with a new artificial turf tee line. NGF also sees
the driving range as a potential catalyst for growing golf activity and developing new golfers that
can then consume and support other golf rounds income.
Player Development Programming
Cultivating new golfers is not only key to the future of golf, it has also proven to be an immediate
generator of revenues for facilities and it is in both the Town’s and Troon’s interest to continue
to be aggressive in player development program and maintain activity in key “grow-the-game”
initiatives. Player development activity at ECGT is provided by golf professionals who have
hosted over 500+ lessons during the last full year. The top two golf professional positions at
ECGT are staffed by PGA golf professionals who are active in player development programs,
camps and lessons for all ages. The club hosts free Saturday golf clinics and a summer junior
golf series. Despite being a “vacation destination,” ECGT is very active in junior golf, with a
Troon branded junior club (Troon Junior Club).
Player development programs at golf courses are important for generating interest in golf and
creating new future customers, and thus total revenue derived from the programs is much less
important (more in recommendations). Still, the PGA of America has estimated that actively
engaging in new player development programs can develop as many as 200 to 350 new golfers
per year for a golf course. The PGA goes on to estimate that if each new golfer produced 10
rounds of golf per year, it could add upwards of 2,000 to 3,500 new rounds of golf per facility, or
as much as $70,000 to $122,500 in new revenue per year at an average of $35 per round of
golfer spending.
Pusch Ridge Player Development
The 9-hole facility at Pusch Ridge could be a positive facility to support player development
programming, and 9-hole facilities in general tend to support this function. However, the
location, difficulty of the course and difficult walking conditions make Pusch Ridge a poor fit for
player development purposes as currently configured. With changes, it may be possible for the
Town to add significant player development and junior programming up to Pusch Ridge, as the
course can become an “intermediate” step between the driving range and a full-length golf
course that can be popular with beginners.
Organized Golf Activities
One of the keys to successful public golf operations and generating green fee revenue is the
continued promotion and hosting of group activities such as leagues, outings and tournaments.
These activities are a key to maximizing rounds activity at public golf courses and NGF has
shown strong correlation between an active calendar of organized events with strong economic
performance. These events tend to stimulate activity and encourage repeat play, generating
more rounds per golfer than without the event calendar.
Tournaments and Outings
ECGT does emphasize the league and group business, most notably to members. The club is
increasing its marketing to attract larger tournaments, and this venue is particularly appealing
for very large events and tournaments as ECGT has two golf courses to accommodate bigger
groups. Also, having a second golf course allows for more modest tournaments to be held while
still servicing regular golfers and members.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 46
July 5, 2017
Records show about 2,240 tournament rounds hosted in 2016, spread out over around 40+/-
tournament events. There are also three major “member” tournament events in the January-
April season, including a club championship for men, women and seniors. ECGT also hosts
several 20-30 player outings that are not recorded as tournament rounds.
Leagues
ECGT appears to be a leader in planning, promoting and organizing group activities and
leagues, providing a high level of service (scorecards, prizes, etc.) to two primary league
participants:
x ECGT Men’s Golf Association – 111 members play three events per week with 40+/-
active players per event.
x ECGT Ladies’ Golf Association – 64 members play two events per week with about
25-28+/- players per event.
Other Operational Issues
Other key issues related to the ECGT operation observed by NGF Consulting:
x Shotgun Starts – In an effort to effectively manage its limited inventory of golf
rounds available for sale, ECGT hosts a large volume of “shotgun” rounds,
whereby all golfers in a defined set start at the same time and on different holes.
Staff reports a very high volume of shotgun starts, with most of the member and club
activity events run this way. It is common for one of the two courses at ECGT to offer
shotgun starts, while the other will take ordinary tee times. This program has
advantages and disadvantages. The benefit to ECGT is the ability to sell more of the
more expensive premium rounds earlier in the day (but only for non-members), while
the disadvantage is that non-members can have a difficult time knowing when the
course may be available to them.
x Club Rentals -One key to increasing the volume of visitor and corporate golf rounds
is to have high quality rental golf club sets available, and communicating this fact to
potential customers. Many better quality golf courses in tourist markets are showing
success by purchasing newer, brand name rental sets and renting them for 1 to 2
years and then selling them in the pro shop. The funds gained upon sale can be
used to purchase newer rental sets and keep the cycle going. As the key revenue
source for the ECGT is green + cart fees, rental sets can help the facility to sell more
rounds and the rental sets are not viewed as a strong profit center.
x Hotel Affiliation –The El Conquistador resort has direct affiliation with both the
ECGT and 9-hole Pusch Ridge. Town and club staff report certain requirements that
at least one golf course at both locations be open and available for the resort guests.
However, in recent years, Troon reports that the total volume of rounds generated
from the resort has been in decline, although the resort still maintains requirements
on the operation structure, quality and offering. In the coming years, this agreement
may have to be spelled out more clearly with a requirement of a certain number of
rounds for the golf courses to be provided by the resort, all via contract.
x Signage -The signage (directional and informational) for ECGT could be improved
to help golfers less familiar with the property find the golf club (in and out of Oro
Valley), and find their way around at the golf course (directional signage and hole
markers). Additional signage can help improve access for golfers from various points
within the region and for golfers in carts once at the golf course.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 47
July 5, 2017
SYSTEM-WIDE OPERATIONAL PERFORMANCE
NGF has completed a review of the recent performance of the El Conquistador and Pusch
Ridge facilities summarized in the paragraphs that follow with comparison to golf industry
“Standards and Norms.” In summary, it appears that ECGT is performing with activity that is well
below industry standards, but with revenues that slightly exceed and expenses that significantly
exceed those same standards. This is significant given the size of the ECGT operation and the
wide variety of amenities and services provided. NGF has observed a large economic loss on
operations that is related to the high-end service profile more akin to a private country club than
a municipal golf facility. The review below covers rounds activity, revenues and operating
expenses over the last two years, corresponding to the period of ownership by the Town.
Rounds
The tables below show total rounds by type and by month from FY2016 through April of FY2017
(10 months). We note that over this timeframe, ECGT has shown a level of rounds activity that
is well below expected industry standards and other local competition. The total of 45,478
rounds on 36 holes in FY2016 equates to about 22,700 per 18-hole course, and the 9-hole
course at Pusch Ridge only produced 5,938 rounds. The total U.S. average rounds (“starts”) per
18 holes now stand at 31,527 for public golf courses, with a figure closer to 35,000 for Arizona
golf courses. This shows the Conquistador and Cañada golf courses are well below the
U.S. Standard.
Rounds by Type
The review of rounds played by type shows the importance of members at ECGT – 55.6% of all
rounds played. Of the 20,200 non-member rounds, about 31% are through some form of
discount or special, showing the challenge in a competitive market. The tournament rounds at
4.9% in 2016 show good performance in this area, as the NGF standard for a public golf course
is 5.0%. Rounds identified as “Complimentary” are rounds with no green fee charged, and are
for employees and “courtesy” rounds used for hotels and marketing. These “comp” rounds
account for a very small amount that is not significant. The NGF typically sees public golf
courses have around 3.0% of rounds as complimentary (mostly for marketing).
El Conquistador Golf & Tennis
Total Rounds Played by Type and by Course (2016 – 2017*)
Rounds by Type FY2016 FY2017*
FY16 % of Total
Member Rounds 25,280 17,634 55.6%
Specials 6,173 5,812 13.6%
Public 11,431 9,845 25.1%
Tournament/Event 2,240 935 4.9%
Comps 354 289 0.8%
Total 45,478 34,515 100.0%
Pusch Ridge 5,938 4,347
Grand Total Rounds 51,416 38,862
Rounds by Course FY 16 FY 17
FY16 % of Total
Conquistador 23,630 12,507 46.0%
Cañada 21,848 22,008 42.5%
Pusch Ridge 5,938 4,347 11.5%
Grand Total Rounds 51,416 38,862 100.0%
*Partial year through April 30 (10 months)
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 48
July 5, 2017
Rounds by Month
The rounds-by-month data shows the strong seasonality of the ECGT operation. About 42.4%
of all rounds occur in the four months between January and April, and about 62% of all play is
played between November and April. Strong seasonal golf facilities like this tend to be more
challenged economically due to the compaction of rounds and the limited time available to earn
necessary revenue. If something happens to limit demand in these periods (bad weather,
economic downturn), the course will suffer more than if the demand was spread more evenly
around the year.
The monthly review also shows some variation in rounds by type during the year. While the
peak winter-spring season is the strongest for both member and daily fee play, the daily fee play
drops of more significantly in the off season and member support still remains somewhat strong
through the summer months and into the fall. This shows some difference in play patterns
between the members and daily fee golfers.
El Conquistador Golf & Tennis
Total Rounds Played by Month (2016 – 2017*)
Conquistador and Cañada Only
Monthly Total FY2016 FY2017*
FY16 % of
Total
July 2,698 2,072 5.9%
August 2,580 2,080 5.7%
September 3,565 2,882 7.8%
October 3,119 3,405 6.9%
November 5,128 3,390 11.3%
December 3,650 3,272 8.0%
January 4,630 3,450 10.2%
February 4,849 4,745 10.7%
March 5,157 5,094 11.3%
April 4,651 4,125 10.2%
May 3,410 0 7.5%
June 2,041 0 4.5%
Total 45,478 34,515 100.0%
Jan-April 42.4%
Jun - Sep 23.9%
*Partial year through April 30 (10 months)
Total Facility Revenue
The tables below show the total revenue derived from all sources at El Conquistador Golf &
Tennis. The total revenue of just over $2.9 million for 2.5 golf courses is close to the industry
standard of $1.1 million per 18 holes. Average revenue for ‘standard’ courses (between $30 and
$65 green + cart fee) is estimated at $1.1 million per 18-hole course per year. However, when
considering the overall service profile, size of the facility and potential “resort-type” operation,
the Town may find that using NGF private club data will provide a better comparison. Average
revenue for private clubs (across all types) is estimated at $3.2 million per 18-hole course per
year, indicating that ECGT is operating with revenues that closely approximate a public golf
facility, built with amenities and services that more closely approximate a private club operation.
A summary of ECGT revenues:
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 49
July 5, 2017
El Conquistador Golf & Tennis (Incl. Pusch Ridge)
Total Revenue by Category (2016 – 2017*)
Operating Revenue FY2016 FY2017*
FY16 % of
Total
Golf Fees $892,716 $822,124 30.6%
Member Dues 876,134 607,040 30.1%
Merchandise Sales 212,593 167,691 7.3%
Food & Beverage 606,271 594,309 20.8%
Swim & Tennis Service 272,570 274,853 9.4%
Range Rental & Other 36,556 43,828 1.3%
Golf Lessons & School 6,877 11,065 0.2%
Other 10,017 11,335 0.3%
Total Operating Revenue $2,913,734 $2,532,245 100.0%
Less: Direct Cost of Sales (COS)
Merchandise 162,818 112,443
Food & Beverage 213,704 232,082
Service Commissions 184,818 189,886
Lessons / Golf School 6,627 10,529
Total COS $567,967 $544,940
Gross Margin 2,345,767 1,987,305
*Partial year through April 30 (10 months)
Average Revenue Analysis
The total facility-wide average revenue per round of golf was $61.75 in FY2016 (excluding
Pusch Ridge), higher than the overall public golf course industry average of $34.59 per round.
As total revenue per round at ECGT is above the standard, all of the other departments exceed
the standard as well, with the lone exception of driving range revenue. ECGT earned $36.67 on
golf fees and memberships in 2016, with $38.60 reported for the first 10 months of FY2017
(5.3% increase). The average for standard public golf courses in the U.S. was $24.51 for total
golf revenue per round (green, cart, membership), plus an additional $10.08 in ancillary
spending for a total of $34.59 per round. In general, the ECGT is hosting a lower total volume of
rounds per 18-holes than the standard, but earning a higher level of per-round income
compared to the total U.S. standard.
El Conquistador Golf & Tennis (ECGT Only)
Total Revenue by Category (2016 – 2017*)
Average Revenue per Round FY2016 FY2017*
U.S.
Industry
Standard
Golf Fees $17.41 $21.02
Member Dues $19.27 $17.59
Sub-Total Golf Only (GF, Carts, Memb.)$36.67 $38.60 $24.51
Merchandise Sales $4.65 $4.86 $2.48
Food & Beverage $13.33 $17.22 $6.10
Swim & Tennis Service $5.99 $7.96 N/A
Range Rental & Other $0.80 $1.27 $1.00
Golf Lessons & School $0.15 $0.32 N/A
Other $0.15 $0.26 $0.50
Total Average Revenue per Round $61.75 $70.49 $34.59
*Partial year through April 30 (10 months)
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 50
July 5, 2017
On-Site Operating Expenses
The table below shows the total on-site operating expenses by category for FY2016 and the first
10 months of FY2017 (excluding cost of goods sold - not an operating expense). These costs
are in the process of being reduced in 2017 in effort to bring the system into balance, especially
in total payroll and benefits, where Troon has made every effort to reduce staff and improve
efficiency. The overall expenses to operate ECGT facilities are considerably higher than
expense averages for standard public golf courses in the nation of $1.03 million per 18 holes
(including F&B). By comparison, ECGT is spending approximately $1.8 million per 18 holes
(excluding management fee), or about 1.75 times the standard. The NGF notes the extremely
high utilities expense as a key catalyst for the high expense, in additional to personnel costs.
El Conquistador Golf & Tennis (Incl. Pusch Ridge)
Total Revenue by Category (2016 – 2017*)
Operating Revenue FY2016 FY2017*
FY16 % of Total
Payroll $1,806,178 $1,365,347 39.9%
Benefits + Other EE Related 451,981 357,913 10.0%
Repairs & Maintenance 527,442 330,796 11.6%
Operating Expenses 284,738 247,063 6.3%
Utilities 1,234,450 1,140,030 27.3%
Leases 133,150 292,900 2.9%
Marketing 83,385 77,210 1.8%
Taxes, Licenses, Insurance 6,843 2,241 0.2%
Total Operating Expenses $4,528,167 $3,813,500 100.0%
*Partial year through April 30 (10 months)
Expense by Department
Direct expenses divided by department are shown below. The figures show 46.2% of total
expenses is for golf course maintenance, which is within the range of industry standards.
However, the $2.09 million in golf maintenance equates to around $1.0 million per 18 holes for
golf course for maintenance, which is well above the industry standard noted previously.
El Conquistador Golf & Tennis
Total Expenses by Department (2016)
Function 2016 Pct. Of Total
ECGT Golf Maintenance $2,090,963 46.2%
ECGT Golf Operations $473,699 10.5%
Building Maintenance $289,621 6.4%
ECGT Member Services $131,592 2.9%
Food & Beverage $648,036 14.3%
General & Admin $348,855 7.7%
ECGT Tennis $165,783 3.7%
Sports Fitness $101,479 2.2%
Pusch Ridge Golf Operations $4,669 0.1%
Pusch Ridge Tennis $27,260 0.6%
Pusch Ridge Golf Maintenance $246,210 5.4%
Operating Expenses $4,528,167 100.0%
Management Fee $108,000
Total Expenses $4,636,167
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 51
July 5, 2017
Expense by Function
Direct expenses for personnel are the largest for golf facility operations, as is the case with the
Town of Oro Valley. The standard threshold for the ratio of personnel expenses to total
expenses is between 50% and 60%, excluding cost of sales and management fee. For
comparison, ECGT personnel expenses are at the lower range of this standard, but as NGF has
previously noted, total facility expenses are much higher than standard, especially the utilities
expense that is impacting these ratios.
El Conquistador Golf & Tennis
Total Expenses by Function (2016)
Function 2016
Pct. Of
Total
Industry
Standard
Payroll & Benefits $2,255,116 49.8%
50%
Repairs & Maintenance 525,278 11.6%
18%
Operating Expenses 334,433 7.4%
20%
Utilities 1,234,239 27.3%
5%
Marketing 80,903 1.8%
2%
Other 98,198 2.2%
5%
Operating Expenses $4,528,167 100.0%100.0%
Management Fee $108,000
Total Expenses $4,636,167
Pusch Ridge Revenue and Expense Review
The table below shows a summary of Pusch Ridge as a separate stand-alone operation:
Pusch Ridge GC
Summary of Revenue and Expense (2016-2017*)
2016 2017* 2016 Pct
Rounds 5,938 4,347
Operating Revenue
Golf Fees $101,031 $96,784 95.9%
Merchandise Sales 1,339 0 1.3%
Other 3,000 2,350 2.8%
Total Operating Revenue $105,370 $99,134 100.0%
Total Rev/Rnd $17.75 $22.81
Direct Cost of Sales (COS) $2,635 $0
Expenses
Payroll & Benefits $95,182 $65,070 34.2%
Repairs & Maintenance 49,889 10,794 17.9%
Operating Expenses 8,328 3,475 3.0%
Utilities 122,350 161,774 44.0%
Marketing 1,375 0 0.5%
Other 1,015 0 0.4%
Total Operating Expenses $278,139 $241,113 100.0%
Pusch Ridge Net Operating Inc.($175,404)($141,979)$0
*Partial year through April 30 (10 months)
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 52
July 5, 2017
This review shows the challenges in operating the shorter 9-hole Pusch Ridge Golf Course. The
low activity and low revenue show the limited market appeal of the facility, and if support from
the adjacent resort is not strong this course will continue to struggle. The numbers also show a
genuine attempt by Troon to reduce operating expenses, with reductions in maintenance and
pro shop operations. The cost for utilities remains high just like the main ECGT, and the Town
would benefit from new investment in Pusch Ridge that would lead to reduced water usage,
especially considering that this course is using City water for irrigation (as opposed to re-use at
ECGT). Overall, the numbers show the limited appeal of Pusch Ridge and the difficulty in
maintaining and operating this facility given its location. Still, while the NGF estimates a
($175,000)loss on operations at Pusch Ridge, this is only a small fraction of the much larger
losses shown on ECGT and the system as a whole.
Food and Beverage Operation (The Overlook)
The food and beverage operation at El Conquistador G&T includes the Overlook operation, the
banquet room and on-course beverage cart service. Troon Golf is recording The Overlook as a
separate department, so the revenue and expense for the F&B can be reviewed as a separate
cost center. As noted above, the NGF has included the operation into the revenue and expense
totals so as to make appropriate industry comparisons.
Food and beverage operations at golf facilities tend to achieve two goals: (1) provide direct
revenue; and (2) help increase the overall volume of rounds and other revenues at the facility.
The primary focus of public golf course F & B service is to serve the needs of the golfers, with
an occasional non-golf customer. The typical 18-hole public golf course will earn about $6.10
per round in food and beverage, less direct costs. The industry standard for direct cost of sales
at golf course F & B operations is around 40%. A summary of the food and beverage revenue
and expense performance at ECGT:
The Overlook at El Conquistador Golf & Tennis
Summary of Revenue and Expense (2016 – 2017*)
2016 2017*
Revenue
Gross Revenue $606,271 $594,309
Less Cost of Sales: (COS)
Food/Bev. $213,704 $232,082
COS % 35.2% 39.1%
Gross Margin $392,567 $362,227
Operating Expenses
Wages & Benefits $553,753 $391,130
Marketing $15,066 $9,912
R&M $20,027 $4,217
Operating $59,190 $57,387
Total Expenses $648,036 $462,646
F & B Net ($255,469)($100,419)
*Partial year through April 30 (10 months)
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 53
July 5, 2017
Combined Facility Summary and Discussion
The table at the end of this page shows the full summary of the ECGT golf operation, including
The Overlook. A summary of NGF findings related to the revenue and expense performance of
the El Conquistador Golf & Tennis follows below.
Overall Performance
The overall review of ECGT shows total revenue in 2016 of around $2.91 million, with a modest
decline anticipated for FY2017. The total on-site operating expenses total $5.1 million (including
cost of sales), for a net operating loss of ($2,182,400)before depreciation or capital
improvements. While losses on operations are common in municipal golf nationwide, the depth
of this loss is not common and speaks to the seriousness of the economic problem at ECGT.In
2016, the loss on operation at ECGT and The Overlook exceeded the revenue produced
by a dedicated ½-cent sales tax.
Further, the losses are on operations only. The figures reviewed do not include other key items
in a golf operation such as reserve for replacement, depreciation or direct Town expenses in
administering the golf / grill operation. In total, the NGF sees both total activity (rounds) and total
revenue as being more commensurate with an 18 or 27-hole golf operation, as opposed to a 45-
hole operation. It is clear that this level of economic performance is not sustainable for the long
term and change in performance is going to be necessary to keep this club open and operating.
The NGF sees increases in revenue as the best opportunity to improve economic performance,
although a reduction in facility size (number of holes) would likely improve the bottom line if
completed in an efficient manner (more in NGF projections).
Performance Summary
The table below shows a summary of the ECGT golf operation, including all expenses as
reported by Troon Golf and the Town of Oro Valley. As shown, even with the influx of over $2.0
million in sales tax revenue earmarked for this golf facility operation, the ECGT operation still
falls short of break-even. The NGF notes that this economic performance does not include any
capital left over for needed upgrades and other investments that are common in golf facility
operations. The NGF had previously documented nearly $6.0 million in upgrades and
improvements that will be required at the facility in the next decade.
El Conquistador Golf & Tennis
Summary of Revenue and Expense (2016-2017*)
2016 2017*
Rounds 51,416 38,862
Total Operating Revenue $2,913,734 $2,532,245
Less:
Direct Cost of Sales (COS) $567,967 $544,940
Total Operating Expenses $4,528,167 $3,813,500
EC G&T Operating Net Income ($2,182,400)($1,826,195)
Other Items
Base management Fee $108,000 $120,000
Local Sales Tax Revenue $2,030,750 $1,611,667
EC G&T Net Income After Mgt. Fee
and Sales Tax ($259,650)($334,528)
*Partial year through April 30 (10 months)
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 54
July 5, 2017
SUMMARY – EL CONQUISTADOR GOLF & TENNIS
El Conquistador G&T is a high quality golf facility with an outstanding mix of amenity offerings
that should be very attractive to golf and club consumers in the Oro Valley area. The club is well
located along a main roadway in Oro Valley, but the very nature of roadway infrastructure in this
park of the Tucson market will serve to limit the appeal of ECGT to customers who reside close
to the facility in Oro Valley. With an offering of multiple golf courses, ECGT can provide service
to a wide range of golf customers by providing a variety of golf layouts, but the club is having
difficulty filling up all 45 holes of golf. The adjacent community center and numerous recreation
facilities and programs add greatly to the appeal of the club and its economic potential. The 9-
hole Pusch Ridge GC is generating a very low level of activity and revenue, and is declining in
condition. Other findings from NGF’s review of El Conquistador G&T:
x ECGT offers a mix of amenities that is marketable in the local area. However, this
facility has a history of operation as a semi-private club and even though it is owned
by the Town and intended to be a community public facility, it still has a perception in
the market as a “private” facility. The operating and service profile in place at the
facility is also more commensurate with a private club, where service to members is
first and foremost, with daily fee customers having a much lower focus. This is also
shown in the economics of the club, where members account for more than 50% of
the revenue, but also contribute to a much higher operating expense.
x The overall condition of the facility is good, reflecting well on the Town’s contracted
operator (Troon). The NGF finds the ECGT to be well-run, with strong and competent
management and staff. The NGF does not believe the facility is being mismanaged
in any way, and uncontrollable factors such as increased competition, changes in the
economy and declining demand for golf are more impactful to this operation than its
management. Transitioning from a private golf club located inside a residential
community with homes on the golf courses to a Town-owned community public golf
course is always a challenge and will take time to fully implement.
x Although in good maintenance condition, the basic design of the facility is leading to
challenges in operation and maintenance, thus increasing the cost to the Town. This
facility is spread out over a wide area with multiple tracts of property all separated by
residences and roadways. The NGF team has estimated that the main 36 holes
facility at ECGT will require over $5.1 million (Option A) in new investment to keep
the facility relevant in this market. The 9-hole Pusch Ridge GC will also require $3.0
million in upgrades to help make that facility desirable and less expensive to operate.
x The main golf clubhouse at ECGT is aging and has condition and space allocation
issues that could be improved to make a better impression on potential golf and non-
golf customers. The primary deficiencies that must be addressed by the Town are
ADA-related issues for a multi-level building that does not have an elevator.
x The total of 45 holes is a lot of golf to maintain and manage effectively. Coupled with
the market analysis findings, the Town may find that some reduction in golf holes at
the ECGT would make the remaining operation more manageable and more
appealing and attractive to golfers, especially non-regular transient golfers.
x The uncertainty surrounding the future of ECGT is impacting the facility’s ability to
market effectively. The ECGT would benefit from improvements to its technology and
marketing, with enhanced focus on daily fee golfers, tournaments and outings.
However, the NGF agrees that extensive marketing and promotion should be
deferred until the long-term plan for the facility is clearly established.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 55
July 5, 2017
x The playing fees and concession prices at ECGT are generally appropriate for the
market and the overall quality of the facility offering. However, the pricing program for
daily fee golf at ECGT is somewhat confusing for the average golfers and may
impact demand at certain times of the year, day of week or time of day.
x ECGT produces strong ancillary revenue in merchandise and F&B. The strong F&B
revenue is somewhat mitigated by a very high F&B operating expense leading to an
almost ($260,000)loss on the Overlook. It appears that the food service concept in
place at ECGT is too focused on a restaurant atmosphere that does not include the
easy access, snack bar / sports pub atmosphere that more directly correlates with
success in golf facility operation. The revenue from The Overlook is higher than
standard, showing the support from non-golf business and banquets helping to
enhance revenue above and beyond the service of golfers.
x The total on-site TOWN operating loss was about ($2.2 million)in 2016, before
depreciation or capital improvements. This loss is off-set by the City’s program of
dedicating a portion of Town sales tax to the golf operation, totaling just over $2.0
million in 2016. While losses on operations are common in municipal golf, the depth
of this loss is less common. At present, all other revenue sources within the
Town are used to support the operation at ECGT and Pusch Ridge.It is clear
that this level of economic performance is not sustainable for the long term and
change in performance is going to be necessary to keep this club open and
operating properly and with proper maintenance and capital investment.
x The operating metrics for ECGT economics are generally higher then industry
norms, but with much lower rounds activity. A summary of key metrics with
comparison to ECGT:
Matrix of Key Operating Metrics
El Conquistador Golf & Tennis (2016)
Metric ECGT in 2016
Industry
Target NGF Comments
Rounds per 18 Holes* 22,739*31,527
Total rounds are well below the standard. This is especially
concerning given the Arizona climate. Activity is also highly
seasonal, with 62% of play coming in the 4-month winter season.
Total Facility Revenue /18H** $1,165,200 $1,000,000
Revenue is comparable to the standard, but PR is counted as a 0.5
golf course, affecting the estimate. NGF still expects this to be much
higher than standard if PR is excluded from the calculation.
Total Facility Expense/18H** $2,081,600 $1,000,000 Expenses well above standard and closer to the private club
standard, with sub-categories well above standard (utilities, labor).
Golf Maintenance
Expense/18H*$1,045,000 At least
$800,000
Maintenance expenses are actually comparable to the standard and
this is reflected in good playing conditions. Total utilities expense is
severe (41% of total) and should be reduced.
Total Facility Revenue/Round $61.75 $34.59
Total revenue per round is above standard, partly a reflection of
enhanced ancillary revenue from merchandise and F & B.
Golf Revenue/Round $36.67 $24.51
Golf revenue per round is above the standard, which is good
considering the high volume of member play. An increase in daily
fee rounds will help to improve overall revenue.
F&B Revenue/Round* $13.33 $6.10
F&B revenue is higher than standard. The Overlook does a lot of
non-golf business and banquets helping to skew this figure away
from the industry norm.
Merchandise Revenue/Round $4.65 $2.48 The high quality shop and high quality merchandise selection has
led to improved sales, now higher than the standard.
*Rounds, F&B revenue and golf maintenance expense for Cañada and Conquistador only. **Includes The Overlook + expenses exclude COS.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 56
July 5, 2017
NGF Recommendations for El Conquistador
G&T and Oro Valley
Based on our evaluation of El Conquistador G&T, our review of operations and market
analysis, NGF has formulated recommendations that the Town can implement to enhance or
supplement its existing business and physical plan for its golf facility. The goal of this phase of
the study was to help the Town identify the physical configuration and operating structure that
will maximize the activity to capacity ratio and net revenues for the golf club, while maintaining
or enhancing the golfer experience at the El Conquistador G&T and Pusch Ridge. Many of
NGF Consulting’s recommendations involve the basic alteration of the ECGT golf courses so
as to maximize maintenance efficiency and reduce utilities expense, some of which would be
accomplished through a reduction in the number of golf holes to be offered at this golf facility.
The NGF recommendations for Town of Oro Valley include: (1) considerations on operating
structure of the system; (2) changes and/or improvements that could be made to the physical
plant so as to best match demand and supply; and (3) specific ideas for improving the
operation, growing the game and thus rounds and revenues within the system.
NGF OBSERVATIONS ON EL CONQUISTADOR GOLF & TENNIS
The NGF team offers a quick summary review of the most important findings and observations on
the ECGT that form the basis for NGF recommendations:
x The ECGT offers a mix of amenities that is consistent with successful golf facilities, but
some upgrade to the golf courses and ancillary facilities is needed. The facility hosts a
combination of regular-play, mostly resident members plus supplemental support from
daily fee patrons who are seeking a high quality and affordable golf experience.
x Data shows a facility that has experienced a significant recent decline in rounds, with
only 22,000 rounds per 18-holes hosted at ECGT in 2016. A decline in rounds is
consistent with national trends, and has been exacerbated at ECGT due to a recent
recession, increased competition, declining interest in golf and the change from a
privately-owned club facility with members to a Town-owned public golf course.
x The club is earning high average revenue-per-round on golf, with an estimated $36.67
earned per round in membership, green fees and carts. This is coupled with a low total
rounds figure to result in revenue that is comparable to industry standards. The
revenue earned per round from both golf and ancillary sources strongly suggest that
any increase in rounds activity will result in significant improvement in revenue.
x The total expense to maintain and operate ECGT is vastly higher than any industry
standard for public golf, and is much closer to standards established for private golf
clubs. The high level of service provided to members in golf and F&B has resulted in a
large club support staff that is contributing to high expenses.
x While the ECGT maintenance budget is comparable to industry standards, the total
cost for utilities is much higher than standard and reduction in utilities expense,
particularly water use, is highest on the list of improvements proposed for ECGT.
x The external market environment is not favorable for strong economic performance of
golf facilities. The basic ratio of golfers to golf courses is unfavorable and this is
reflected in rounds activity at ECGT. The Town may find that the full 45-holes of golf at
ECGT are not market supportable for the long term.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 57
July 5, 2017
BASIC OVERSIGHT AND STRUCTURE
Town of Oro Valley has chosen to operate its golf facility through a fee-for-service management
agreement with Troon Golf, and direct oversight by the Parks and Recreation Director and Town
Manager. It has been assumed by NGF that this form of operation is in place for several reasons,
including the desire to retain professional management and to fulfill contractual obligations related
to the Town acquisition of the golf courses. As another form of operation could be considered by
the Town, NGF has prepared a review of options that are available to Oro Valley should it decide
to alter the operation. A general discussion of the common structures, along with advantages and
disadvantages, is presented.
Structure Options
Below are descriptions of the most typical management/operational options for public agency golf
courses. In our experience, there is no ideal operating scenario that fits all situations, and each
public entity must arrive at its own unique approach to operation and maintenance. The most
common management options are shown below (these are not intended to be exhaustive, as
there are hybrids and variations thereof), presented in order from most direct Town involvement to
the least direct Town involvement:
1.Self-Operation.This would involve the Town taking over the operation and using all
Town employees for staffing the facility. A key challenge in this option is finding and
retaining qualified personnel, especially in key management positions such as
manager and superintendent. Another advantage to this structure is direct Town
control of the operation for maximum benefit to the Community, while the disadvantage
is mostly economic, as the facility may become subject to Town employment policies.
2.Concession Agreements: These are similar to lease agreements and can come in
several types or combinations. The advantage is shifting some risk and payroll to a
private entity. The key areas of operation include Pro Shop, Food and Beverage,
and/or Maintenance, and involve the Town contracting for one, some, or all of these
services. One subset of this concept includes multiple concessions, a system in which
Town creates multiple contract agreements with separate entities for each facet of the
operation. The most common concession agreements for municipal golf include:
a)Contract for Food / Beverage Services involves hiring a separate operator for
the F&B, either through direct concession or exchange for capital investment.
b)Contract for Maintenance Services involves contracting with a private entity to
provide golf course maintenance services in exchange for a pre-determined fee.
c)Multiple Concessions involves creating multiple agreements for separate entities
for each facet of the golf operation (pro shop, F&B, and maintenance).
3.Full-Service Management Contract. This is the “status-quo” for Oro Valley. The
Town has hired Troon to manage the facilities, but Oro Valley still owns all revenues
and is responsible for all expenses, plus a management fee paid to the operator.
Some advantages to this strategy are a shifting of labor expense from a public to a
private structure, and the expected benefit of professional management, including
access to purchasing and marketing programs. The main disadvantages are some
loss of Town control, the fixed fee for service (regardless of performance) and the City
still responsible for all capital investment and upgrades.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 58
July 5, 2017
4.Hybrid Contract. A hybrid contract combines some of the advantages of a lease with
those of a management contract. The most common difference from the management
contract is that a variable management fee is included, allowing the operator and Town
to share in the risk of the operation. The current Troon agreement has some elements
in common with a hybrid in that there is an incentive program in place, but no real risk
is shared with the operator. The most successful hybrids are ones that include both a
fixed payment to the operator along with some sharing of risk with the Town.
5.Operating Lease(s). The Town could lease the golf facility to a private operator in
exchange for an annual (or monthly / quarterly) lease payment. The lease could be
established to include certain requirements, including capital investment in facility
improvements, maintenance standards and/or restrictions on green fees. The
advantage of this option is a total privatization of the golf operation, assuming a lease
partner can be found, and the theoretical shifting of economic risk away from Oro
Valley and onto the private operator. The disadvantage is the nearly complete loss of
Town control on not just the operation, but likely policies, procedures and fees as well.
Structure Considerations
The NGF review of the various operational considerations for Town of Oro Valley golf leads to a
few key findings on several options. In consideration of the options presented, we note:
x Self-Operation.The NGF review shows this option has appeal, but would be very
difficult to implement in the near-term given uncertainties about the future of the
physical plant of ECGT (more below). This option would also require the Town to
obtain golf management expertise through direct hire of Town employees. A key
consideration in self-operation is the Town’s ability to find and attract qualified
personnel, but also offer competitive compensation with incentives.
x Traditional Concession.This option will likely produce too many “working parts” that
require attention and shift the Town from managing golf courses to managing multiple
contracts. The Town will likely still be responsible for capital expenditures and thus not
much different that the management agreement in place at present. One form of
concession that could be considered would be in the F&B operation, where a separate
restaurant vendor could be retained to operate the Overlook and free the Town and
Troon from that responsibility and more than ($250,000)loss.
x Lease.An outright lease of the facility would be an attractive option if the Town’s
objectives in municipal golf were purely financial, and if a suitable partner could be
found that would be willing to take on all operational risk. However, NGF notes that if
the Town opts to pursue a lease agreement for the golf course, it should be pursued
only if the new lease partner will bring capital to the agreement and complete some (or
all) of the upgrades identified by NGF, and absorb all the risk in the operation.
NGF Recommendation
In light of operational and physical recommendations that NGF believes will improve the economic
performance of the golf facility, the Town is likely to find that continued operation via management
contract (as-is) is the most viable operating structure, at least for the short term. ECGT is in need
of physical upgrade in order to increase its revenue potential, and changing management or
operations while this is being planned or underway would not be ideal.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 59
July 5, 2017
The NGF team recommends that the Town of Oro Valley continue with its existing
management agreement with Troon, but also seek to attract a separate (possible Troon
under separate agreement) operator for the F&B / Overlook operation as the best option for
the short and intermediate term as golf club improvements are contemplated and enacted.
This structure will offer Town the greatest chance for success in the operation and provide a level
of hands-on control so as to maximize the implementation of the physical and program changes
that will be required for the Town to succeed in golf.
PHYSICAL UPGRADE RECOMMENDATIONS
The NGF team has identified the following key areas of recommended physical plant
improvement (investment) at ECGT and Pusch Ridge that can be completed over the next several
years. NGF ideas to improve the ECGT stem from the Town’s desire to provide a high level of
service while reducing maintenance expense, especially utilities expense. If the ECGT is to
significantly alter the economic performance of the golf system, some reduction in maintained turf
will be required, possibly even a reduction in the number of golf holes.
The NGF has also considered more substantial changes to the physical plant at El Conquistador
G&T in consideration of key findings noted above, most importantly the reality that 45 holes of golf
may not be market supportable for the long term at this location. In recommending changes to the
physical plant at El Conquistador Golf & Tennis, NGF has divided our suggestions into three
options at ECGT, plus an additional option for Pusch Ridge. A summary of the improvements
identified by NGF are summarized below:
El Conquistador Reconfiguration Options (Conquistador & Cañada Courses)
The Town of Oro Valley requested that the consulting team complete review and analysis of three
specific reconfiguration options for the 36-hole ECGT site - configurations involving 18 holes, 27
holes and 36 total holes of golf.
The consultant team went further to look into options that might consider a combination of a
regulation course (i.e., 18-hole equivalents with a par of 70 to 72 and a yardage of 6,000 yards or
JUHDWHU 6XFKRSWLRQVORRNHGDWDQH[HFXWLYHOHQJWKFRXUVH LHSDU-DQG-yards). We
also considered 9-hole formats including a par-3 layout and other “alternative” course options
such as 6-hole and even 12-hole layouts.
Overall, we do not consider such non-regulation combinations to become successful at El
Conquistador. A driving force to this conclusion is the cost of reconfiguration (completely changing
greens, fairways, etc.) combined with what we see as an expectation that the facility continue its
legacy as a regulation format golf experience. El Conquistador, both physically and by way of its
history, is most suited to continue as a regulation golf experience, regardless of the number of golf
holes.
Some of the public comments about reconfiguration (during public meetings) had to do with
softening long walks between holes and also working to find a walkable 9-holes or 18-holes that
could be played within the facility as opposed to a mandate of taking a golf cart. Loops of holes
that could be played (i.e., fewer than 9-hole loops) was also a suggestion. The consultant team
worked to satisfy these comments as part of our recommended reconfiguration.
El Conquistador Reconfiguration Option A
Option A represents a 36-hoOHUHFRQ¿JXUDWLRQRIWKH&RQTXLVWDGRU &DxDGD&RXUVHVUHWDLQLQJ
two 18-hole courses. The plan removes some parcels from golf use, but retains nearly all of the
existing Conquistador Course with the exception of existing Hole No. 12. This option will allow the
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 60
July 5, 2017
Town some re-use of parcels removed from the new golf courses. A summary of the changes
proposed and a site plan rendering of this option appears in Appendix C to this report.
In summary, Option A allows ECGT to remain as a 36-hole facility with two 18-hole courses. The
reconfiguration requires six new greens and one expanded green. New paths, plus some fairway
and approach areas will be created to form new holes and reconfigured holes. The conceptual
plan shows 77 bunkers retained and/or remodeled. Overall, bunkers are reduced by 19%.
Significant turf reduction is achieved through reconfiguring some holes and making parcels
available for non-golf uses. Parcels removed for non-golf uses total 21.2± acres in land area, and
managed turf of Option A is 74.2%± of existing, or a 25.8% reduction (based on reported
managed turf footprint of 140 acres).
El Conquistador G&T
Option A – Parcels Removed / Turf Reduction
Notes
Acres
Removed
Parcel 1 Existing Nos. 12 & 13 Conquistador 6.0 Acres+
Parcel 2 Existing No. 1 Cañada 7.3 Acres+
Parcel 3 Existing Nos. 2 & 16 Cañada 5.1 Acres+
Parcel 4 Existing No. 17 (portion) Cañada 2.8 Acres+
Total Acres Removed 21.2 Acres+
Turf Reduction Summary
Turf Reduction (removed holes): 11.0 Acres+
Turf Reduction (retained holes): 26.7 Acres+
Total for Option A (incl. practice areas)37.7 Acres+
Probable Cost Estimate - El Conquistador Reconfiguration Option A
The probable cost estimate for Option A is estimated at $5,115,775, including soft costs
(engineering, design, etc.). The cost breakdown detail is displayed in Appendix C to this report.
Option A includes the following improvements to the ECGT golf courses:
Turf reduction for all retained golf holes Bunker renovation for all retained bunkers
Facility-wide tee leveling (all retained tees) New bunkers (as shown)
Facility-wide tee additions for new back and
forward tees (as shown)
New tees, paths, approach and fairways areas to
accommodate reconfiguration work
Irrigation replacement (all holes, per conditions) Facility-wide path repair and ADA access work
Irrigation retrofit (turf reduction areas)Course-wide tree removal, addition and pruning
work (allowance)
Irrigation pump station replacement (south) Maintenance facility upgrades (allowance)
New greens (6) Removal of holes for non-golf parcels
Expanded green (1)Re-vegetation of existing turf areas on removed
holes to be used for non-golf purposes
El Conquistador Reconfiguration Option B
Option B represents a 27-KROHUHFRQ¿JXUDWLRQRIWKH&RQTXLVWDGRU &DxDGD&RXUVHVUHWDLQLQJ
three 9-hole loops. The conceptual plan shows these as the “Silver Nine”, “Gold Nine” and
“Turquoise Nine”. The plan removes some parcels from golf use, allowing the Town re-use of
some of these parcels. A summary of the changes proposed and a site plan rendering of this
option appears in Appendix C to this report.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 61
July 5, 2017
In summary, Option B allows a 27-hole facility to remain with three separate, yet integrated, 9-
hole loops. These three loops are termed the “Silver”, “Gold” and “Turquoise” nines. The
reconfiguration requires three new greens and one expanded green. New paths, plus some
fairway and approach areas will be created to form new holes and reconfigured holes. The
conceptual plan shows 59 bunkers retained and/or remodeled. Overall, bunkers are reduced by
38%. Turf reduction is significant by reconfiguring several holes and making some of these
parcels available for non-golf uses. Parcels removed for non-golf uses total 32.0± acres in land
area for land areas owned by the Town. An additional 28.9± acres is removed from parcels that
would revert to an HOA upon being removed from golf use. Total managed turf of Option B is
62%± of existing, or a 38% reduction (based on reported managed turf footprint of 140 acres):
El Conquistador G&T
Option B – Parcels Removed / Turf Reduction
Notes
Acres
Removed
Parcel 1 Existing Nos. 12 & 13 Conquistador 6.0 Acres+
Parcel 2 Existing No. 1 Cañada 7.3 Acres+
Parcel 3 Existing Nos. 2 & 16 Cañada 5.1 Acres+
Parcel 4 Existing No. 4 Cañada 5.2 Acres+
Parcel 5 Existing No. 5 Cañada 5.6 Acres+
Parcel 6 Existing No. 17 (portion) Cañada 2.8 Acres+
Total Acres Removed (Town Owned)32.0 Acres+
Parcel 7 Existing No. 10 Cañada 7.1 Acres+
Parcel 8 Existing No. 11 Cañada 6.3 Acres+
Parcel 9 Existing Nos. 12 & 13 Cañada 10.6 Acres+
Parcel 10 Existing No. 14 Cañada 4.9 Acres+
Total Acres Removed (HOA Owned)28.9 Acres+
Total Acres Removed 60.9 Acres+
Turf Reduction Summary
Turf Reduction (removed holes): 32.8 Acres+
Turf Reduction (retained holes): 25.3 Acres+
Total for Option B (incl. practice areas)87.9 Acres+
Probable Cost Estimate - El Conquistador Reconfiguration Option B
The probable cost estimate for Option B is estimated at $4,639,115, including soft costs
(engineering, design, etc.). The cost breakdown detail is displayed in Appendix C to this report.
Option B includes the following improvements to the ECGT golf courses:
Turf reduction for all retained golf holes Bunker renovation for all retained bunkers
Facility-wide tee leveling (all retained tees) New bunkers (as shown)
Facility-wide tee additions for new back and
forward tees (as shown)
New tees, paths, approach and fairways areas to
accommodate reconfiguration work
Irrigation replacement (all holes, per conditions) Facility-wide path repair and ADA access work
Irrigation retrofit (turf reduction areas)Course-wide tree removal, addition and pruning
work (allowance)
Irrigation pump station replacement (south) Maintenance facility upgrades (allowance)
New greens (3) Removal of holes for non-golf parcels
Expanded green (1)Re-vegetation of existing turf areas on removed
holes to be used for non-golf purposes
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 62
July 5, 2017
El Conquistador Reconfiguration Option C
Option C represents an 18-KROHUHFRQ¿JXUDWLRQRIWKH&RQTXLVWDGRU &DxDGD&RXUVHVUHWDLQLQJ
one 9-hole regulation length course. The plan removes several parcels from golf use, allowing the
Town re-use of some of these parcels. A summary of the changes proposed and a site plan
rendering of this option appears in Appendix C to this report.
Option C allows an 18-hole facility to remain in a regulation length format. The reconfiguration
requires one new green. New paths, plus some fairway and approach areas will be created to
form new holes and reconfigured holes. The conceptual plan shows 40 bunkers retained and/or
remodeled. Overall, bunkers are reduced by 58%. Turf reduction is significant by reconfiguring
several holes and making some of these parcels available for non-golf uses. Parcels removed for
non-golf uses total 83.2.0± acres in land area for land areas owned by the Town. An additional
28.9± acres is removed from parcels that would revert to an HOA upon being removed from golf
use. Total managed turf of Option B is 45%± of existing, or a 65% reduction (based on reported
managed turf footprint of 140 acres):
El Conquistador G&T
Option C – Parcels Removed / Turf Reduction
Notes
Acres
Removed
Parcel 1 Existing No 2 Conquistador 4.4 Acres+
Parcel 2 Existing No. 4 Conquistador 6.3 Acres+
Parcel 3 Existing Nos. 3 & 5 Conquistador 12.2 Acres+
Parcel 4 Existing No. 6 Conquistador 6.9 Acres+
Parcel 5 Existing No. 8 (tee area) Conquistador 1.7 Acres+
Parcel 6 Existing Nos. 12 & 13 Conquistador 11.4 Acres+
Parcel 7 Existing No. 10 Conquistador 6.8 Acres+
Parcel 8 Existing No. 9 Conquistador 7.5 Acres+
Parcel 9 Existing No. 1 Cañada 7.3 Acres+
Parcel 10 Existing Nos. 2 & 16 Cañada 5.1 Acres+
Parcel 11 Existing No. 4 Cañada 5.2 Acres+
Parcel 12 Existing No. 5 Cañada 5.6 Acres+
Parcel 13 Existing No. 17 (portion) Cañada 2.8 Acres+
Total Acres Removed (Town Owned)83.2 Acres+
Parcel 7 Existing No. 10 Cañada 7.1 Acres+
Parcel 8 Existing No. 11 Cañada 6.3 Acres+
Parcel 9 Existing Nos. 12 & 13 Cañada 10.6 Acres+
Parcel 10 Existing No. 14 Cañada 4.9 Acres+
Total Acres Removed (HOA Owned)28.9 Acres+
Total Acres Removed 112.1 Acres+
Turf Reduction Summary
Turf Reduction (removed holes): 59.1 Acres+
Turf Reduction (retained holes): 21.6 Acres+
Total for Option C (incl. practice areas)65.3 Acres+
Probable Cost Estimate - El Conquistador Reconfiguration Option C
The probable cost estimate for Option C is estimated at $4,200,795, including soft costs
(engineering, design, etc.). The cost breakdown detail is displayed in Appendix C to this report.
Option C includes the following improvements to the ECGT golf courses:
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 63
July 5, 2017
Turf reduction for all retained golf holes New bunkers (as shown)
Facility-wide tee leveling (all retained tees)New tees, paths, approach and fairways areas to
accommodate reconfiguration work
Facility-wide tee additions for new back and
forward tees (as shown)Facility-wide path repair and ADA access work
Irrigation replacement (all holes, per conditions) Course-wide tree work (allowance)
Irrigation retrofit (turf reduction areas) Maintenance facility upgrades (allowance)
New greens (1) Removal of holes for non-golf parcels
Bunker renovation for all retained bunkers Re-vegetation of existing turf areas
Summary of El Conquistador Renovation Options
A summary of the options reviewed by NGF/FRA is shown in the table below. We note that while
each option has considerable investment, the expected savings in maintenance is not relational,
as many of the expenses in a golf operation are fixed, regardless of the number of holes.
El Conquistador Golf & Tennis
Summary of Renovation Options
Option No. of Golf
Holes
Total
Investment
Potential Acreage
for Alternate Use
Expected
Savings
Option A 36 $5,115,775 21.2 20%
Option B 27 $4,639,115 32.0* 35%
Option C 18 $4,200,795 83.2* 45%
*Includes only Town owned property and does not include additional HOA-owned parcels.
Pusch Ridge Renovation – The “Dirty Dozen” Course
In reviewing the Town’s choices for the future of Pusch Ridge GC, NGF/FRA identifies three
options for the troubled 9-hole facility:
I. Close the golf facility, repurposing the land into non-golf uses.
II. Renovate the facility in its current configuration, bringing all golf features and areas
back to an acceptable condition.
III. Transform the facility into a new golf experience, different from the existing.
While there are potential options that are variations of the above, these options represent the
baseline considered by the consultant team. Examples of variations could include closing the
predominant acreage of the facility and leaving smaller golf amenities, such as putting greens that
could be used for golf practice and general use. This approach, however, would not produce
revenue and would likely be a burden to the Town. Another hybrid example would be to follow
option (ii) but with a smaller turf footprint. This approach, while conserving water, is not likely to
render a viable golf course given that the existing course has difficult terrain and holes, is not
conducive to beginners, casual players and a resort audience.
The team recommends that, should preservation of the golf course be the selected path, that the
Town considers transformation to a new and sustainable format (iii). In this approach, the golf
experience becomes compatible with the El Conquistador Resort, and also the terrain and
neighborhoods. In developing the concept, the design takes into account these needs as well as
those to attract new players, serve needs not offered by the El Conquistador facility and any of its
three options; 18-holes, 27-holes or 36-holes.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 64
July 5, 2017
The new concept proposed for Pusch Ridge involves rebuilding the golf course using a majority of
the exiting land area for a new “alternative” golf experience. Removed from the current golf area
are existing Hole Nos. 5 and 6, which could be repurposed into non-golf uses. Other existing golf
corridors are used to create a new 12-hole golf course that has been coined “The Dirty Dozen.”
The “Dirty Dozen” is shown on the conceptual land plan (Appendix C) as a 12-hole course of all
par-3 holes between 100 yards to 200 yards in length. Tee and green areas are planned to be
“islands” of turf with all other areas transformed into a Sonoran Desert landscape. The footprint of
the golf course is reduced by more than 70% to just 11.5 acres of managed turf. Water use would
be reduced significantly. The course begins in the same location of the existing course, continuing
clockwise in a routing that utilizes the same corridors as the existing 9-hole course, except Holes
No. 5 and 6 that are removed from the routing. Total acres removed from golf to be available for
possible alternate use would be 14.9 acres.
The “Dirty Dozen” Plan provides a 12-hole “alternative golf facility” that is similar to several
successful new and innovating golf course concepts in the U.S. Examples include the following:
x Bandon Dunes Resort (Oregon) — Bandon Trails 13-hole Course (all par-3)
x Mountain Shadows (Arizona) — The Short Course, 18-holes (all-par-3)
x Terranea Resort (California) — The Links at Terranea 12-hole Course (all par-3)
x Monarch Dunes (California) —The 12-hole Challenge Course (all par-3)
x Wickenburg Ranch (Arizona) — The Lil’ Wick 9-hole (all par-3)
x Prairie Club (Nebraska) — The Horse Course 10-hole (all-par3)
This trend (e.g., to build alternative, less-time and highly playable and enjoyable formats) has
been widely accepted throughout golf with numerous projects recently constructed and many in
planning stages. The conventional 18-hole, regulation length format, while still highly accepted
and viable, is augmented by such smaller courses where players of all skill levels can enjoy the
game without having to endure 4-5 hours of time and the demands of longer holes.
For Oro Valley, the concept would not only integrate well to the El Conquistador Resort
experience, but would complement the El Conquistador’s larger (and longer) golf facility, whether
in an 18-hole, 27-hole or 36-hole retained format. HSL Properties, owner of the El Conquistador
Resort, has indicated strong enthusiasm for the “Dirty Dozen Concept” as a way to transform the
existing course into something the resort can leverage as a “must-play” golf experience that will
take less time, provide a truly unique “one-of-a-kind” golf experience in the region, and will fit a
model where less resources and turf coverage are required to sustain the golf operation.
Probable Cost Estimate – “Dirty Dozen” Concept at Pusch Ridge
The probable cost estimate for Option C is estimated at $3,013,120, including soft costs
(engineering, design, etc.). The cost breakdown detail is displayed in Appendix C to this report.
The reconfigured course required nine new greens, all new tee complexes and fill-in and/or
replacement of cart paths. Transformation of existing turf areas to non-turf is a significant part of
the scope. The rebuilt course would feature most features to be rebuilt, with all greens either
being reconstructed or resurfaced. This program includes all of the improvements identified in the
previous three ECGT options, with the following additions:
Irrigation system reservoir and pumping Maintenance facility replacement (allowance)
New greens (9) Maintenance Facility Demo
Resurfaced/restored greens (4) Removal of holes for non-golf parcels
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 65
July 5, 2017
BASIC OPERATIONAL RECOMMENDATIONS
The NGF has documented a very strong operational program put in place by Troon Golf that
includes all of the “industry best practices” commonly associated with success in golf facility
operations. As such, the NGF does not have much in the way of operational recommendations,
except for a few additional items including ideas for improving technology capabilities and
marketing, and improving the appeal of golf to less traditional segments.
Recommendations to Better Employ Technology
Technology is one of the most important tools available to a golf course management team to
create incremental revenue, and proper deployment of technology is critical in golf operations in
2017 and beyond. Technology defines and guides the marketing strategy to build a larger
customer database, create customer loyalty and boost revenue. The ECGT golf operation would
benefit from maximizing the POS technology that is in use at the course today. Better golf
systems can become a large part of improved marketing activities. In general, the Town should
work with Troon Golf to maximize technology by:
x Allow customers to secure on-line tee times as per ECGT policy.
x Using the POS system to identify specific customers and spending patterns to help
maximize effective targeted email marketing campaign (i.e. data mining).
x Allowing for increased purchases from the online portal. Items such as gift cards and
memberships can be purchased directly from the website and would expand revenue.
x Allowing for social media tools to be integrated into email marketing. This can be done
automatically through delivery tools that automatically integrate to the leading social
media forums, i.e. Facebook, Twitter, Instagram, etc.
x Expand and use the smartphone application to include yardage guides and allow
golfers to receive text alerts broadcast from the email system. Having a mobile
application facilitates connecting with the customer.
E-mail – E-mail databases are essential in today’s golf market place, as a means of staying in
touch with the golfer customer base. E-mail marketing, with the exception of word-of-mouth and
free advertising, is the most cost-effective advertising possible. Augmenting this database should
be a top priority of management, possibly working in conjunction with hotel operators, so that
email marketing can be optimally implemented.
Website and Internet – We noted that the Internet is the most cost-effective form of advertising
for golf facilities. The www.elconquistadorcc.com website for ECGT is consistent with success in
golf facility marketing, but could be enhanced slightly to include:
x Ability to book tee-times and make purchases online
x More pictures of the golf courses.
x A scorecard for each course.
x More information on the banquet room and its availability.
x Email Club / Email Specials section to capture customer emails, possibly using periodic
deals on rounds or other specials.
x Notes on progress and pictures of upgrades as they are being completed (future).
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 66
July 5, 2017
Social Networking -Social networking is the fastest growing marketing tool in golf. ECGT should
become more active with Facebook and Twitter, which should be used to communicate “what’s
going on” type of messages (who won a tournament, who had a hole-in-one, etc.). This tends to
help build loyalty and repeat activity.
You Tube -You Tube is the second most utilized search engine on the internet. El Conquistador
G&T could develop a presence, including informational videos of the facility and golf course, as
well as activities such as league play, tournaments, & instruction.
Recommendations for Increased Participation from Less-Traditional Segments
Increasing participation among less traditional golfer populations is generally about three groups –
younger adults, women and minorities. We know that 50% of the population is female. We also
know that about 18% of the Town’s population is considered minority, and the median age in the
metro region is younger than the local Oro Valley market. As a result, the longer-term future of
public golf in this part of Arizona will be dependent on the ability of this golf system to engage and
grow these less traditional golfer segments.
Player Development
We note that new player development will be one of the critical elements to the long-term viability
of ECGT, and this should be a point of emphasis at the facility, especially a strong Junior Program
(Troon has documented growth in this area). Also, because of today’s difficult climate for golf
operations, tapping latent demand among groups that traditionally have shown relatively low golf
participation – such as women and minorities – is more important than ever. PGA data shows
every new golfer developed could be worth as much as $500 per year (10 rounds at $50), and the
common successful player development program produces at least 200 new golfers per facility.
Key recommendations for player development programming include:
x Work directly with the PGA for specific descriptions of programs that work, and how to
properly implement and promote these programs (i.e. “Get Golf Ready,” “Hook a Kid
on Golf,” “Drive Chip & Putt,” “PGA Junior League,” and LPGA’s “Teaching Her”
program). Add focus on transitioning new players from learning to playing golf.
x Expand and improve the practice / golf learning amenities at ECGT and Pusch Ridge,
as noted in NGF’s physical recommendations.
x Encourage and provide incentives for staff to provide golf lessons during off hours.
x Create programs to provide older, used golf equipment to always be available free of
charge for beginners, and possibly for other needy prospects via donation or at a deep
price discount.
Increased Women’s Participation -This represents a major “industry best practice” and is
recommended by NGF to every golf course we review. At present, women account for about 20%
of golf participants, but 40% of beginners. There are many reasons why female golf participation
is low, but increasing participation from women is one of the keys to maximizing revenue. The
most common issues relate to golf course difficulty (could be an issues for ECGT and Pusch
Ridge), retail selection, on-course services (restrooms, drinking fountains), food / beverage
selection, and customer service.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 67
July 5, 2017
Alternate Use Considerations for Golf Course
Property
The consulting team has completed this review under the assumption of continued operation of
some golf by the Town of Oro Valley at one or both of ECGT and Pusch Ridge. It is always an
option for public-sector owners of golf courses to close or reduce golf courses and consider
alternate uses of golf course property. As such, the consulting team has completed a preliminary
review of basic options to be considered by the Town, including:
3. Outright closure of one or both Town golf courses
4. Repurposing portions of golf course property that may become available due to
proposed changes in size and space of golf facilities.
The consulting team offers a base review of each of these options in the section that follows:
COURSE CLOSURE OPTIONS
The consultant team was tasked with review of specific options for the reconfiguration of the two
18-hole courses at ECGT and the 9-hole golf course at Pusch Ridge. As noted previously, full
closure of either or both of the golf facilities (36-hole El Conquistador and/or 9-hole Pusch Ridge)
is always an option for the Town, although this option has not been analyzed by the consultant
team. The option of fully closing one, two or all of the golf courses in this instance does require an
understanding of the potential impact together with baseline costs associated with converting
existing turfgrass to a suitable groundcover.
While this specific option was not part of the scope assigned to the consultant team, the team did
provide a general overview of full closure options along with considerations that the Town would
need to address as part of such a decision.
Closure of all 36-holes at El Conquistador
Full closure of the El Conquistador 36-hole operation would involve significant costs to remove
managed turf areas and, at minimum, plant and establish revegetation desert varieties to the
areas removed from turf. Work required to remove turf involves stripping the upper layers of
existing turf, re-shaping certain golf features to allow for natural surface drainage (to prevent
stagnate water and waterborne insects), preservation of some irrigation infrastructure to be used
to establish seed, and, finally, applying a hydroseed mix of native desert seed and a bonding
agent (tackifier) that will help prevent erosion and allow the seed to germinate.
Based on 146± acres of existing managed turf, we estimate approximately $2.5 million for turf
conversion and establishment at El Conquistador using a per-acre cost of 17,000 (slightly less per
acre than shown for specific options A, B and C; based on volume). Added to this cost would be
approximately 20% for soft costs (design, engineering, etc.) and a reasonable contingency. Our
opinion of probable cost is approximately $3 million.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 68
July 5, 2017
Closure of all 36-holes at El Conquistador would need to take into account the following elements
that have not been evaluated by the consulting team and would need additional study and review:
x Maintenance and upkeep of the removed parcels (arbor care, etc.)
x Security and access to removed parcels
x Cost and upkeep of existing ponds (or removal costs)
x Cost to remove fencing and range netting
x Securing existing underpasses, paths, restrooms, etc.
x Installing signage (no trespassing, etc.)
x Disposition of the practice facilities (retained as golf use, or not)
x Effluent water use; any established requirements for use and/or discharge
x Affect to neighborhood property values, especially as related to property tax valuations
and property tax income to the Town
Closure of the Entire Pusch Ridge Facility:
This specific option is noted within the report and may be considered by the Town as one
approach to eliminating the current losses associated with the 9-hole Pusch Ridge facility. The
data reviewed show current losses to be $175,000 per year at Pusch Ridge. This relatively low
amount is primarily a result of Troon reducing its staff and effort at Pusch Ridge to the absolute
minimum, and closing the course completely during the summer months. Despite some public
sentiment that “closing Pusch Ridge is a path to eliminating loses for all the golf operations…” we
note that the current losses at Pusch Ridge, if eliminated, would reduce overall losses at the
combined 45-hole operation by just 7.5% of the current total golf losses.
In order to fully close the Pusch Ridge facility we estimate that an average cost of $20,000 per
acre be applied to calculate removal of existing managed turf with reestablishment to native
desert vegetation. This slightly higher amount per acre is recommended due to significant slopes
involved in the Pusch Ridge terrain combined with more intricate access than at El Conquistador.
Hydroseed tackifier agents would need to be stronger to help prevent erosion. The sequence and
work required to remove turf is basically the same as at El Conquistador (see above).
Based on a total turf footprint of 40± acres, we estimate full conversion of existing turf areas to be
approximately $800,000 plus soft costs and contingency of about 20%, rendering an estimated
probable cost of near $1.0 million. Additional costs to fully close the Pusch Ridge facility would
need to account for razing the existing (old, now abandoned) maintenance facility (estimated at
$40,000) and disposition of the existing irrigation storage pond, which has not been estimated.
Closure of the full Pusch Ridge golf facility would need to take into account the following elements
that have not been evaluated by the consulting team and would need additional study and review:
x Maintenance and upkeep of the removed parcels (arbor care, etc.)
x Security and access to removed parcels
x Cost and upkeep of the existing pond (or removal costs)
x Installing signage (no trespassing, etc.)
x Affect to neighborhood property values, especially as related to property tax valuations
and property tax income to the Town
x Relationship with the adjacent resort and contractual obligations established upon
purchase by the Town
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 69
July 5, 2017
PARCEL REPURPOSE OPTIONS
The scope of work assigned to the consultant team does not include specific recommendations
for parcel repurposing. However, the team is providing considerations to the Town, including
necessary decisions that should be taken into account as parcel repurposing is contemplated.
Scale of Repurposing Options
Parcel repurposing, in general, ranges from converting current golf uses to naturalized open
space (e.g., native desert terrain) to potential uses as residential or commercial development.
This range is shown on the following graphic:
Conversion to “Naturalized Open Space”involves removing existing turfgrass and establishing
native plants via hydroseeding. Work involved includes reshaping some areas to allow for surface
drainage and native plant establishment (temporary irrigation, etc.)
Conversion to “Passive Recreation Uses”might include uses such as trails, dog parks, smaller
picnic areas and similar improvements that would replace portions of existing turfgrass with
remaining areas converted to naturalized open space. It may also be possible, in some areas, to
leave certain golf greens as public-use putting greens that may be accessed by those within and
from outside the immediate neighborhoods.
“Intensive Recreation Uses”would include such new improvements as larger parks, play fields,
sports fields, multi-use grounds and similar recreation amenities.
“Development Uses”cover any of several land uses including appropriate residential uses and
compatible commercial uses. It might be noted that repurposing to development, whether
residential or commercial, does not necessarily need to involve sale of land parcels for such uses.
Development uses could be accommodated by the Town under ground lease situations where the
Town would receive perpetual lease payments for use of land on which development might occur.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 70
July 5, 2017
Cost –vs- Revenue Impacts of Repurposing Options
Parcel repurposing must consider balances associated with compatible neighborhood uses and
whether options are sustainable from a financial standpoint. In most options to convert golf uses
to non-golf uses for recreation amenities, such as open spaces or parks, costs to maintain and
operate those amenities will be present in addition to the cost to convert land from golf as well as
build the new park/recreation structures and infrastructure.
While the consultant team is not providing forecasts and specific costs associated with anything
beyond direct conversion from golf to naturalized open space (desert re-vegetation), we are
providing the following graphic to demonstrate the financial impact of repurposing decisions:
Conversion to “Naturalized Open Space”involves cost as covered within each of the options for
El Conquistador (A, B and C) as well as the Pusch Ridge (“Dirty Dozen”) concept. This cost is
relatively low and renders the land back to its familiar desert terrain and landscape. The scale
above shows graphically this low cost in comparison to more intense recreation conversions.
Conversion to “Passive Recreation”would inherently involve more cost that simply removing turf
and re-vegetation. Regardless of whether trails are repurposed from existing cart paths, details
such as ADA access, restrooms, security, lighting and other necessary additions would escalate
costs more than naturalization.
Conversion to “Intense Recreation Uses”will involve the highest cost to be borne by the Town.
Building new recreation structures, infrastructure and necessary accompaniments such as
parking, access points, etc. would not only be an up-front cost, but maintenance and upkeep of
these new recreation amenities would be ongoing.
Conversion to “Development Uses”would only be prudent for the Town if a lease or sale of
certain lands could be structured to provide the Town a revenue source. As an example, if a
portion of a parcel removed from golf were offered to a private developer to build appropriate
housing or commercial property, a ground lease could be realized by the Town in exchange for
rights that would allow the developer to plan, construct and market the property. In this case the
costs to the Town would be less than conversion from golf to a naturalized area and the outcome
to the Town would be revenue as opposed to a continual maintenance and operation cost.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 71
July 5, 2017
Development Repurposing
Given that appropriate repurposing of some parcels for development use (residential or
commercial) will produce revenue for the Town, the consultant team believes that this direction
deserves further study. In order that the Town and residents understand the impacts of
repurposing in this form, specific plans for parcels will need to be prepared to show how far from
existing lots and neighborhoods such new development would be located. Additional details, such
as visual aesthetics, traffic/access and buffering are important considerations to understanding
new development on former golf parcels. The following points are provided as they relate to
repurposing with development uses:
x Zoning Of Golf Parcels.Current zoning is shown on the exhibits in Appendix C. With
few exceptions, zoning for most existing golf parcels allow residential development subject
to restrictions and site plan approvals. Zoning for a few parcels would allow for
neighborhood commercial development, also subject to specific conditions.
x Compatibility with Current Neighborhoods.This is paramount to repurposing for either
new residential or commercial uses. Factors such as proximity, landscaping, grade
differentiation, noise, lighting, access and architectural aesthetics would need to be
carefully considered.
x Land Values.Conversion from golf to non-golf uses for residential or commercial is likely
to have an effect on land values. A qualified real estate appraiser, working in tandem to
plan and design parcels or portions thereof, would be a means to understanding land
value impacts. New residential lots and homes, as one example, may have a positive
effect on land values. While a particularly intense commercial presence may have the
opposite effect.
x Sale of Land Versus Leasing Of Land. As discussed above, repurposing land from golf
uses for residential or commercial uses may not need to be sold. Rather, the Town could
retain the land as “owner” and lease the rights to development to a third party. Examples
of such lease arrangements exist on publically held lands, tribal lands, Federal lands
(national parks, etc.).
x Earmarking of Revenue for Recreation Purposes. Earmarking of revenue when
converting land to development use does not necessarily mean that the land is no longer
“recreation land” per se. If, for example, revenue generated on a portion of a parcel
removed from golf and converted to development was designated specifically for use to
sustain and grow recreation programs, then the land would remain “recreation land” with
that specific purpose mandated.
x Sales Tax Revenue. Residential and commercial developments have certain tax
revenues that return to the Town. These impacts are part of the equation in determining
the overall revenue associated with development conversion/repurposing.
Specific Repurposing Considerations at El Conquistador G&T
Parcels shown on Options A, B and C for El Conquistador need to be further evaluated for their
appropriateness for certain repurposing alternatives. The following general factors and concepts
need to be weighed in this process.
Parcel size (width) Long term financial sustainability Partial retention of golf uses
Parcel location and terrain Revenue generation potential Blending natural space with new use
Parcel access Zoning / entitlements on parcels
Revenue-generating public
recreation
Cost to repurpose Proximity to private homes, buffers Potential partnering with HOAs
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 72
July 5, 2017
Cost to maintain new uses Land banking options for LT future Leasing land with revenues to Town
El Conquistador Non-golf Parcel Summary
Parcels shown on Options A, B and C that are removed from golf uses under the specific plans
fall into three primary categories. These are:
1. Narrower parcels, such as existing fairways with residential lots to either side.
2. Wider parcels, such as those where golf holes oppose one another or where there are
not existing residential lots in close proximity to parcel edges.
3. Parcels with direct access to major roadways, such as those along La Cañada Drive.
In evaluating parcels for their suitability to repurpose, these categories become important when
considering appropriate non-golf uses. For example, more intense recreation uses may be
suitable for parcels falling into category “2” but may not be ideal for those in category “1.” New
residential lots may be appropriate in category “3” while they may not be in category “1.” These
are just examples and may be proven otherwise after appropriate planning and study.
Specific Repurposing Considerations at Pusch Ridge GC
Parcels shown in the Pusch Ridge Transformation Concept Plan need to be further evaluated for
their appropriateness for certain repurposing alternatives. The following factors and concepts
need to be weighed in this process.
Parcel size (width) Long term financial sustainability Partial retention of golf uses
Parcel location and terrain Revenue generation potential Blending natural space with new use
Parcel access Zoning / entitlements on parcels Revenue-generating public recreation
Cost to repurpose Proximity to private homes, buffers Potential partnering with HOAs
Cost to maintain new uses Land banking options for LT future Leasing land with revenues to Town
Integration of recreation uses and potential synergy with the El Conquistador Resort
Pusch Ridge Non-golf Parcel Summary
Parcels that are removed from golf as shown on the Pusch Ridge Transformation Plan, and also
that may be realized in the event that the Pusch Ridge facility is fully closed and turned into all
non-golf uses, fall into three primary categories. These are:
1. Narrower parcels, such as existing fairways with residential lots to either side. (Not
shown on the transformation plan, but would occur at existing Hole Nos. 3 and 8 as
examples if the facility were fully closed.)
2. Wider parcels, such as “Parcel 1” and “Parcel 2” on the transformation plan.
3. Parcels with access, yet are smaller and more isolated, such as “Parcel 3,” “Parcel 4”
and “Parcel 5.”
In evaluating parcels for their suitability to repurposing, these categories become important when
considering appropriate non-golf uses. For example, more intense recreation uses may be
suitable for parcels falling into category “2” but may not be ideal for those in category “1” or “3.”
New residential lots may be appropriate in category “2” and “3” while they may not be in category
“1.” These are just examples and may be proven otherwise after appropriate planning and study.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 73
July 5, 2017
El Conquistador Resort Compatibility & Considerations
Specific consideration should be given to the adjacent El Conquistador resort operation and its
impact to the Town. El Conquistador Resort represents a travel and hospitality destination for the
Town of Oro Valley. The Pusch Ridge GC, while plagued with maintenance and configuration
drawbacks as previously explained, is none-the-less the golf amenity for the resort. In essence,
the current Pusch Ridge Golf Course provides the “front door” to the resort and also serves the
resort neighborhood as a “Central Park” of sorts.
If the existing golf facility is closed fully the impact to the resort may be dramatic. This outcome is
dependent on what repurposing is ultimately offered and how those plans are implemented. With
no golf the resort will forever be required to send guests off property for golf events and bookings.
Typically, this is not ideal in hospitality operations, especially where an on-property golf course
may be available right out the resort’s front door.
As noted, HSL Properties (owner of the resort) has expressed enthusiasm for a transformation
concept such as that shown in our accompanying plan. The consultant team understands that the
resort would embrace this transformation for obvious reasons, namely that it would yield a new
and exciting golf experience for the resort to market and drive play. In the absence of more
specific plans for non-golf uses on all of the existing golf parcels, it is difficult to judge the resort
owner’s enthusiasm. This is to be expected as it is difficult to envision what is not yet rendered,
even in schematic form.
The dynamic of the resort’s enthusiasm brings into focus the relationship between the Town and
the resort. It must not be discounted how this relationship can to be balanced for the benefit of
both parties. Further, the neighborhoods surrounding the resort are part of the overall dynamic. In
the end, the best solution for all parties is to balance repurposing so that the new use becomes a
win-win solution for the Town, the resort and the neighborhoods.
Should the Town select the option to close the Pusch Ridge facility outright, it is not only likely to
affect the resort, but will bring up the question of whether a transformed golf course (as an option)
would have had a greater benefit to both the Town and resort in contrast to other, 100% non-golf,
uses. As the resort prospers it generally follows that the Town will also prosper. Conversely,
should the Town select the option to transform the existing golf into the 12-hole concept with
certain parcels open for other uses, it may be questioned why the Town is expected to bear this
investment cost when it has the appearance of primarily furthering the resort’s interests. The
question may become even more entangled when public sentiment is expressed that compares
the investment at Pusch Ridge with decisions at El Conquistador.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 74
July 5, 2017
Concepts for Consideration
The answers to the above questions are complex and will require further study above and beyond
this consultant engagement. Again, it remains the “win-win-win” outcome that should ultimately
prevail to benefit the Town, resort and neighborhoods. In reaching this goal, we have organized
the following considerations and concepts that may be helpful to make decisions at Pusch Ridge:
x Partial Repurposing.As shown on the proposed Transformation Concept Plan, golf can
be retained with certain parcels made available for repurposing.
x Revenue Earmarked For Golf Re-Investment. As noted above, ground lease options
can provide for the Town to offer certain parcels (or portions of parcels) to qualified
developers with revenue returning to sustain golf and other recreation operations.
x Resort Commitment.Having a high-quality golf experience “on” property for the resort
may be correlated to a guarantee of tee times at the golf facility by the resort entity. This is
typical in public-private situations where the public sector maintains a golf property for
partial use by a resort operation. The resort guarantees a certain number of tee times to
the golf entity and is given in return, access and limited privileges.
x Resort Participation with Golf Pro Shop.It may be practical to work with HSL Properties
on developing a small, stand-alone pro shop as part of the resort’s current “Western Town”
experience. This space could serve the golf by transacting tee times, offering food and
beverage and generally anchoring the golf starting point. This concept would eliminate the
need for a fully staffed pro shop/clubhouse.
x Neighborhood Commitment.Currently there is no subsidy of the golf open space by the
neighborhoods. In some situations, neighborhoods have been asked to participate in order
to maintain golf assets. This may be realized by nominal amounts earmarked for the golf
to remain in years when the golf does not produce ample revenue to be financially self-
sustaining. As a means to offset such contributions, residential owners can be provided
discounts and limited “memberships” that provide access and privileges that run with the
property in perpetuity.
x Transaction Funds.As individual lots or resort units are sold it may be advantageous to
consider a transaction fee to be collected that would grow a fund to help sustain the golf
amenity. This is used throughout Arizona and other states by HOAs as a means to offset
operational losses of recreation assets, such as golf, during times when revenues fall short
of costs.
x Effluent Water Conversion.Currently the Pusch Ridge facility operates on potable water
as no close-by effluent source is available. Consideration may be given to potentially
working with the resort to eventually install a localized water treatment plant for the
purpose of treating resort and community sewage and making it available for golf/parks
use.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 75
July 5, 2017
Financial Analysis of Expected El
Conquistador Golf & Tennis Performance
As part of this NGF study effort, the consultants have prepared an economic evaluation to show
the potential economic performance of the El Conquistador G&T under certain scenarios of facility
size and operational performance. In this section of our report, the ECGT’s economic potential is
evaluated and summarized. All NGF projections are based on a set of assumptions that may or
may not become reality. We feel that these estimates represent the best effort to create a “fair
estimate of performance” for this facility based on our complete review of the operation and
market environment.
The NGF projections have been prepared under four separate scenarios of ECGT operation,
along with a separate estimate for Pusch Ridge. The projections are based on the NGF’s
preliminary recommendations to the Town on future changes that may (or may not) occur at the
facility. The four ECGT scenarios considered include: (1) Continue “as-is” with no major changes
but only repairs and minor improvements; (2) completion of a golf course renovation resulting in
the retention of 36 holes; (3) a renovation resulting in 27 holes; and (4) a renovation resulting in
18 holes at ECGT.
All four scenarios generally assume that ECGT will adopt other recommendations related to
improved marketing, enhancing event and banquet operations and actively seeking to grow non-
resident and non-regular-play golf activity. With many golf facilities competing at the similar
‘standard’ price points, revenue growth based on increasing average rates cannot be relied upon,
so most growth must be derived from increases in rounds activity. Market conditions and other
factors likely dictate that ECGT will remain a modest volume producer for the foreseeable future,
but rounds activity and other revenues can be enhanced with strategic marketing, increased
awareness of the excellent value these courses offer, and improved amenities to make the
facilities more competitive for larger outings, banquets, etc.
SUMMARY OF ORO VALLEY GOLF PROJECTIONS
NGFC has made projections for each of the four scenarios based on expected performance in a
“normal” environment and the implementation of NGF recommendations. In the tables that follow,
NGF has summarized the projections for ECGT under each scenario with estimates of
performance by revenue and expense line items. The NGF has not reviewed or projected any
direct capital cost to complete the enhancements, as this is assumed to be provided separately
from the golf operation, and that no additional cost such as debt service will be applied to the golf
enterprise. We note that these projections are based on NGF estimates for future performance in
consideration of recommendations made for ECGT under the four scenarios as noted above.
“As-Is” Base Scenario – Full 45 Hole Operation
The projections we have made assume the ECGT operation will continue “as is,” but with some
improvement to marketing, technology and operating efficiencies. The number of holes remains
intact, including the existing 9 holes at Pusch Ridge. The existing agreement between the Town
and Troon is assumed to remain in force with continued Troon operation of the Overlook
restaurant. The Town’s projected capital plan to enhance the community center and clubhouse is
also assumed to proceed as planned.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 76
July 5, 2017
Basic Assumptions – “As-Is” Operation
Other key assumptions in the NGF projections:
x The overall economic condition remains stable, without any sizable increase or
decrease in the Oro Valley area economy, employment, or visitation.
x The basic pricing structure will remain in place and memberships will continue to be
offered at the same rate and privilege as today.
x The decline in rounds observed is assumed to recover and stabilize at around
50,000 total rounds on 36 holes at ECGT. Pusch Ridge rounds continue to decline
slightly, falling to 4,000 by Year 5. The rounds and membership activity projected by
NGF assume a new “stable” level of activity, with some years falling below and some
years rising above this expected ‘average’ figure. The projected activity by type
through Year 5:
El Conquistador G&T Year 1 Year 2 Year 3 Year 4 Year 5
No. of Members 240 250 250 250 250
Member Rounds 25,200 26,300 26,300 26,300 26,300
Daily Fee Rounds 20,000 22,000 23,000 24,000 24,000
Total ECGT Rounds 45,200 48,300 49,300 50,300 50,300
Pusch Ridge Rounds 4,500 4,300 4,200 4,100 4,000
Total Rounds 49,700 52,600 53,500 54,400 54,300
x The average revenue per round for green fees is projected at FY2017 levels for Year 1
of the ECGT projection, with 1.5% annual increases through Year 5. This is reflective
of a program to retain basic fee levels and retain the membership component at ECGT
through Year 5. Average revenue for carts, merchandise, F&B, swim/tennis, and other
revenues are projected at 2017 levels for Year 1. Direct cost of sales for merchandise
is held at 75%. Average revenue for The Overlook is projected at 2017 levels for Year
1. Total cost of sales on F & B is estimated at the historical 35%.
Blended Average Fees Year 1 Year 2 Year 3 Year 4 Year 5
Average Member Rate $3,650 $3,705 $3,760 $3,817 $3,874
Average Rate for 18h Courses $38.00 $38.57 $39.15 $39.74 $40.33
Average Pusch rate $21.00 $21.32 $21.63 $21.96 $22.29
Average Pro Shop $4.65 $4.72 $4.79 $4.86 $4.94
Average F&B $13.75 $13.96 $14.17 $14.38 $14.59
Average Swim/Tennis $6.00 $6.09 $6.18 $6.27 $6.37
Average Driving Range $0.90 $0.91 $0.93 $0.94 $0.96
Average Lessons $0.25 $0.25 $0.26 $0.26 $0.27
Average Other $0.25 $0.25 $0.26 $0.26 $0.27
x Operating expenses in Year 1 are retained at 2017 levels, including additional cost of
sales for service commissions and lessons. All labor-related and other expenses are
projected to grow annually at 2.5% based on historical records and recent trends.
Economic Performance Projections – “As-Is” Scenario
NGF Consulting has utilized the previously mentioned assumptions to create the cash flow
statement in the following exhibit. Each category of revenue has been listed separately, and an
estimate of the total facility average revenue per round has been provided. All figures have been
rounded to the nearest $100 for simplicity.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 77
July 5, 2017
Projected Cash Flow Analysis
El Conquistador Golf & Tennis (Incl. Pusch Ridge)
“As-Is” 45-Hole Operation
Golf Revenue Year 1 Year 2 Year 3 Year 4 Year 5
Golf Fees $854,500 $940,200 $991,300 $1,043,700 $1,057,200
Member Dues 876,000 926,200 940,100 954,200 968,500
Merchandise Sales 213,600 231,300 239,400 247,800 251,400
Food & Beverage 621,500 674,100 698,400 723,200 734,100
Swim & Tennis Service 271,200 294,100 304,700 315,600 320,300
Range Rental & Other 40,700 44,100 45,700 47,300 48,000
Golf Lessons & School 11,300 12,300 12,700 13,100 13,300
Other 12,400 13,400 13,800 14,200 14,400
Total ECGT Revenue $2,901,200 $3,135,700 $3,246,100 $3,359,100 $3,407,200
Less Cost of Sales: (COS)
Merchandise $160,000 $173,200 $179,400 $185,700 $188,400
Food/Bev. $217,500 $235,900 $244,400 $253,100 $256,900
Svc. Commissions/Lessons $190,000 $190,000 $190,000 $190,000 $190,000
Total COS $567,500 $599,100 $613,800 $628,800 $635,300
Combined Facility
Gross Margin
$2,333,700 $2,536,600 $2,632,300 $2,730,300 $2,771,900
Operating Expenses
Payroll $1,670,000 $1,711,800 $1,754,600 $1,798,400 $1,843,400
Benefits + Other EE Related 417,500 428,000 438,700 449,600 460,900
Repairs & Maintenance 410,000 420,300 430,900 441,700 452,800
Operating Expenses 254,000 260,400 266,900 273,600 280,400
Utilities 1,270,000 1,301,800 1,334,400 1,367,800 1,402,000
Leases 290,000 297,300 304,700 312,300 320,100
Marketing 79,500 81,500 83,500 85,600 87,700
Taxes, Licenses, Insurance 5,000 5,100 5,200 5,300 5,400
Total Operating Expense $4,396,000 $4,506,200 $4,618,900 $4,734,300 $4,852,700
Net Income Before Other ($2,062,300)($1,969,600)($1,986,600)($2,004,000)($2,080,800)
Management Fee $144,000 $144,000 $144,000 $144,000 $144,000
Net Income After Mgt. Fee ($2,206,300)($2,113,600)($2,130,600)($2,148,000)($2,224,800)
Local Sales Tax $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000
Facility Net after All Items ($206,300)($113,600)($130,600)($148,000)($224,800)
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 78
July 5, 2017
Option A – ECGT Renovation w/ 36 Holes & New Pusch Ridge Concept
The projections made for the upgrade scenario assume all of the base assumptions in the “as-is”
scenario, with the following exceptions:
Basic Assumptions – Option A
x The full 36-hole ECGT golf facility is renovated and enhanced as proposed by FRA
and presented as “Option A” (Appendix C), with total new investment of $5.1 million.
This renovation will remove 21.2 acres of turf from maintenance (approximately 11% of
turf) for potential re-purposing.
x All ECGT activity and revenue inputs remain constant from the base scenario.
x As the Pusch Ridge facility is upgraded to the “Dirty Dozen” 12-hole concept, rounds
and revenue for Pusch Ridge are adjusted according to the estimate below:
Year 1 Year 2 Year 3 Year 4 Year 5
Pusch Ridge (“Dirty Dozen”) Rounds 4,500 6,000 7,000 7,500 7,500
x The Overlook Restaurant is leased to a 3rd-party operator under a separate agreement
for 10% of total revenue. As such, total revenue to the Town would be 10% of gross on
F&B, plus all direct expenses for the F&B operation (COS, labor and operations) would
be eliminated from the ECGT projections.
x Total operating expenses are adjusted as follows:
F&B expenses are eliminated as noted above
ECGT golf course maintenance expenses for payroll, repairs & maint. And
operations are reduced by 20% to reflect reduced maintained acreage.
Total ECGT utilities expense is reduced by 20% to reflect reduced irrigated
acreage and efficiencies in new irrigation system.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 79
July 5, 2017
Economic Performance Projections – Option A ECGT Renovation w/ 36 Holes & New Pusch
Ridge Concept
NGF Consulting has utilized the previously mentioned assumptions to create the cash flow model
for the ECGT upgrade scenario in the table below - all figures have been rounded to $100.
Projected Cash Flow Analysis
El Conquistador Golf & Tennis (incl. Pusch Ridge)
“Enhanced” 45-Hole Operation
Golf Revenue Year 1 Year 2 Year 3 Year 4 Year 5
Golf Fees $854,500 $976,400 $1,051,800 $1,118,400 $1,135,200
Member Dues 876,000 926,200 940,100 954,200 968,500
Merchandise Sales 213,600 232,600 241,600 250,500 254,200
Food & Beverage 62,200 67,400 69,800 72,300 73,400
Swim & Tennis Service 271,200 294,100 304,700 315,600 320,300
Range Rental & Other 40,700 44,100 45,700 47,300 48,000
Golf Lessons & School 11,300 12,300 12,700 13,100 13,300
Other 12,300 13,300 13,700 14,100 14,300
Total ECGT Revenue $2,341,800 $2,566,400 $2,680,100 $2,785,500 $2,827,200
Less Cost of Sales: (COS)
Merchandise $160,000 $174,100 $180,800 $187,500 $190,200
Food/Bev. $0 $0 $0 $0 $0
Svc. Commissions/Lessons $190,000 $190,000 $190,000 $190,000 $190,000
Total COS $350,000 $364,100 $370,800 $377,500 $380,200
Combined Facility
Gross Margin $1,991,800 $2,202,300 $2,309,300 $2,408,000 $2,447,000
Operating Expenses
Payroll $1,170,000 $1,199,300 $1,229,300 $1,260,000 $1,291,500
Benefits + Other EE Related 292,500 299,800 307,300 315,000 322,900
Repairs & Maintenance 360,000 369,100 378,400 387,900 397,600
Operating Expenses 204,000 209,100 214,300 219,700 225,200
Utilities 985,000 1,009,700 1,035,000 1,060,900 1,087,400
Leases 290,000 297,300 304,700 312,300 320,100
Marketing 79,500 81,500 83,500 85,600 87,700
Taxes, Licenses, Insurance 6,000 6,100 6,200 6,300 6,400
Total Operating Expense $3,387,000 $3,471,900 $3,558,700 $3,647,700 $3,738,800
Net Income Before Other ($1,395,200)($1,269,600)($1,249,400)($1,239,700)($1,291,800)
Management Fee $144,000 $144,000 $144,000 $144,000 $144,000
Net Income After Mgt. Fee ($1,539,200)($1,413,600)($1,393,400)($1,383,700)($1,435,800)
Local Sales Tax $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000
Facility Net after All Items $460,800 $586,400 $606,600 $616,300 $564,200
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 80
July 5, 2017
Option B – ECGT Renovation w/ 27 Holes & New Pusch Ridge Concept
NGF has prepared a projection for the El Conquistador G&T under the assumption that a
complete renovation and reduction to 27 holes at ECGT is completed as proposed by FRA and
presented as “Option B” (Appendix C). This renovation will remove 32 acres of turf from
maintenance (approximately 16% of turf) for potential re-purposing. The program also assumes
implementation of the new “Dirty Dozen” 12-hole concept for Pusch Ridge. The total investment
proposed under “Option B” was previously identified as $4.64 million. The projections made for
the new 27-hole (plus 12 at Pusch Ridge) scenario assumes all of the base assumptions in the
“as-is” scenario, except:
Basic Assumptions – Option B
x With a change to 27 holes at ECGT, the activity production is expected to change.
NGF assumes the core of 120+/- members who reside within the adjacent community
and have private carts are likely to remain, and may become the only members. Some
of the lost activity will be picked up by additional daily fee play. The new activity
schedule projected by NGF is shown below:
El Conquistador G&T Year 1 Year 2 Year 3 Year 4 Year 5
No. of Members 180 160 130 120 120
Member Rounds 18,900 16,800 13,700 12,600 12,600
Daily Fee Rounds 20,000 23,800 26,900 28,000 28,000
Total ECGT Rounds 38,900 40,600 40,600 40,600 40,600
Pusch Ridge Rounds 4,500 6,000 7,000 7,500 7,500
Total Rounds 43,400 46,600 47,600 48,100 48,100
x All ECGT revenue inputs remain constant from the base scenario.
x The Overlook Restaurant is leased to a 3rd-party operator under a separate agreement
for 10% of total revenue. As such, total revenue to the Town would be 10% of gross on
F&B, plus all direct expenses for the F&B operation (COS, labor and operations) would
be eliminated from the ECGT projections.
x Total operating expenses are adjusted as follows:
F&B expenses are eliminated as noted above
ECGT golf course maintenance expenses for payroll, repairs & maint. And
operations are reduced by 35% to reflect reduced maintained acreage.
Total ECGT utilities expense is reduced by 35% to reflect reduced irrigated
acreage and efficiencies in new irrigation system.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 81
July 5, 2017
Economic Performance Projections – Option B ECGT Renovation w/ 27 Holes & New Pusch
Ridge Concept
NGF Consulting has utilized the previously mentioned assumptions to create the cash flow model
for the ECGT upgrade scenario in the table below - all figures have been rounded to $100.
Projected Cash Flow Analysis
El Conquistador Golf & Tennis (incl. Pusch Ridge)
“Enhanced” 39-Hole Operation (27@ECGT + 12@PR)
Golf Revenue Year 1 Year 2 Year 3 Year 4 Year 5
Golf Fees $854,500 $1,045,900 $1,204,500 $1,277,300 $1,296,500
Member Dues $657,000 $592,800 $488,800 $458,000 $464,900
Merchandise Sales 184,300 196,200 199,900 203,300 206,400
Food & Beverage 62,200 67,400 69,800 72,300 73,400
Swim & Tennis Service 271,200 294,100 304,700 315,600 320,300
Range Rental & Other 40,800 43,300 43,900 44,600 45,200
Golf Lessons & School 9,700 10,300 10,500 10,600 10,800
Other 10,800 11,800 12,300 12,600 12,800
Total ECGT Revenue $2,090,500 $2,261,800 $2,334,400 $2,394,300 $2,430,300
Less Cost of Sales: (COS)
Merchandise $138,000 $146,800 $149,500 $152,100 $154,300
Food/Bev. $0 $0 $0 $0 $0
Svc. Commissions/Lessons $160,000 $164,000 $168,100 $172,300 $176,600
Total COS $298,000 $310,800 $317,600 $324,400 $330,900
Combined Facility
Gross Margin $1,792,500 $1,951,000 $2,016,800 $2,069,900 $2,099,400
Operating Expenses
Payroll $895,000 $917,400 $940,300 $963,800 $987,900
Benefits + Other EE Related 223,800 229,400 235,100 241,000 247,000
Repairs & Maintenance 250,000 256,300 262,800 269,400 276,200
Operating Expenses 179,000 183,500 188,100 192,800 197,600
Utilities 800,000 820,100 840,600 861,600 883,100
Leases 290,000 297,300 304,700 312,300 320,100
Marketing 79,500 81,500 83,500 85,600 87,700
Taxes, Licenses, Insurance 6,000 6,100 6,200 6,300 6,400
Total Operating Expense $2,723,300 $2,791,600 $2,861,300 $2,932,800 $3,006,000
Net Income Before Other ($930,800)($840,600)($844,500)($862,900)($906,600)
Management Fee $144,000 $144,000 $144,000 $144,000 $144,000
Net Income After Mgt. Fee ($1,074,800)($984,600)($988,500)($1,006,900)($1,050,600)
Local Sales Tax $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000
Facility Net after All Items $925,200 $1,015,400 $1,011,500 $993,100 $949,400
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 82
July 5, 2017
Option C – ECGT Renovation w/ 18 Holes & New Pusch Ridge Concept
NGF has prepared a projection for the El Conquistador G&T under the assumption that a
complete renovation and reduction to only 18 holes is completed at ECGT as proposed by FRA
and presented as “Option C” (Appendix C). This renovation will remove 83.2 acres of turf from
maintenance (approximately 43% of turf) for potential re-purposing. The program also assumes
implementation of the new “Dirty Dozen” 12-hole concept for Pusch Ridge. The total investment
proposed under “Option C” was previously identified as $4.2 million. The projections made for the
new 18-hole (plus 12 at Pusch Ridge) scenario assume all of the base assumptions in the “as-is”
scenario, except:
Basic Assumptions – Option C
x With a change to 18 holes at ECGT, the activity production is expected to change and
be more commensurate with 18-hole courses in the market area. NGF assumes the
membership would ultimately fall to about 80+/- of the core adjacent residents with
private carts. Some of the lost activity will be picked up by additional daily fee play.
The new activity schedule projected by NGF is shown below:
El Conquistador G&T Year 1 Year 2 Year 3 Year 4 Year 5
No of Members 120 100 80 80 80
Member Rounds 12,600 10,500 8,400 8,400 8,400
Daily Fee Rounds 20,000 21,000 22,000 23,000 24,000
Total ECGT Rounds 32,600 31,500 30,400 31,400 32,400
Pusch Ridge Rounds 4,500 6,000 7,000 7,500 7,500
Total Rounds 37,100 37,500 37,400 38,900 39,900
x All ECGT revenue inputs remain constant from the base scenario.
x The Overlook Restaurant is leased to a 3rd-party operator under a separate agreement
for 10% of total revenue. As such, total revenue to the Town would be 10% of gross on
F&B, plus all direct expenses for the F&B operation (COS, labor and operations) would
be eliminated from the ECGT projections.
x Total operating expenses are adjusted as follows:
F&B expenses are eliminated as noted above
ECGT golf course maintenance expenses for payroll, repairs & maint. and
operations, are reduced by 45% to reflect reduced maintained acreage.
Total ECGT utilities expense is reduced by 45% to reflect reduced irrigated
acreage and efficiencies in new irrigation system.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 83
July 5, 2017
Economic Performance Projections – Option C ECGT Renovation w/ 18 Holes & New Pusch
Ridge Concept
NGF Consulting has utilized the previously mentioned assumptions to create the cash flow model
for the ECGT upgrade scenario in the table below - all figures have been rounded to $100.
Projected Cash Flow Analysis
El Conquistador Golf & Tennis (incl. Pusch Ridge)
“Enhanced” 30-Hole Operation (18@ECGT + 12@PR)
Golf Revenue Year 1 Year 2 Year 3 Year 4 Year 5
Golf Fees $854,500 $937,900 $1,012,700 $1,078,600 $1,135,200
Member Dues $438,000 $328,500 $236,500 $212,900 $191,600
Merchandise Sales 155,000 153,300 151,000 158,600 165,900
Food & Beverage 62,200 67,400 69,800 72,300 73,400
Swim & Tennis Service 195,600 191,800 187,900 197,000 206,300
Range Rental & Other 35,900 35,200 34,500 36,100 37,800
Golf Lessons & School 8,200 8,000 7,800 8,200 8,600
Other 9,200 9,000 8,800 9,200 9,600
Total ECGT Revenue $1,758,600 $1,731,100 $1,709,000 $1,772,900 $1,828,400
Less Cost of Sales: (COS)
Merchandise $113,700 $111,500 $109,200 $114,500 $119,900
Food/Bev. $0 $0 $0 $0 $0
Svc. Commissions/Lessons $120,000 $123,000 $126,100 $129,300 $132,500
Total COS $233,700 $234,500 $235,300 $243,800 $252,400
Combined Facility
Gross Margin $1,524,900 $1,496,600 $1,473,700 $1,529,100 $1,576,000
Operating Expenses
Payroll $795,000 $814,900 $835,300 $856,100 $877,500
Benefits + Other EE Related 198,800 203,700 208,800 214,000 219,400
Repairs & Maintenance 240,000 246,100 252,300 258,600 265,100
Operating Expenses 194,000 198,900 203,900 209,000 214,200
Utilities 690,000 707,300 725,000 743,100 761,600
Leases 290,000 297,300 304,700 312,300 320,100
Marketing 79,500 81,500 83,500 85,600 87,700
Taxes, Licenses, Insurance 6,100 6,600 7,000 7,300 7,400
Total Operating Expense $2,493,400 $2,556,300 $2,620,500 $2,686,000 $2,753,000
Net Income Before Other ($968,500)($1,059,700)($1,146,800)($1,156,900)($1,177,000)
Management Fee $144,000 $144,000 $144,000 $144,000 $144,000
Net Income After Mgt. Fee ($1,112,500)($1,203,700)($1,290,800)($1,300,900)($1,321,000)
Local Sales Tax $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000
Facility Net after All Items $887,500 $796,300 $709,200 $699,100 $679,000
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 84
July 5, 2017
Pusch Ridge – Projected Performance
NGF has documented the declines in rounds and revenue at Pusch Ridge GC and the consulting
team fully expects these reductions to continue into the intermediate and long-term future. Put
simply, Pusch Ridge does not have market appeal as it is in 2017, and the economic losses on
the operation are likely to get worse as time goes on. In our review of the Town’s overall golf
system, NGF and FRA have reviewed the two options that Town has in continuing operations at
Pusch Ridge – continue as a 9-hole facility (‘as-is”) or modify in to something more unique and
marketable. There is always a third option of closing the course entirely that was not analyzed by
the consulting team. A review of each option follows below:
Continue as 9-Hole Course - “As-Is”
The projections made for continuing Pusch Ridge as 9-hole course with no modifications are
shown below. Key assumptions in developing the projections include:
x Continued declines in activity, falling to around 4,000+/- total rounds by Year 5. Pusch
Ridge would continue as a 6-month operation, closing each summer as at present.
x The course would continue to operate without a formal pro shop or food and beverage
operation. The only ancillary sales would be minor merchandise (balls, tees, hats, etc.)
and vending snack items.
x Revenues assume an average of approximately $21.00 per round for all golf fees,
services and charges at Pusch Ridge GC, with 1.5% inflation through Year 5.
x Expenses are assumed to reflect the current reduced operation, with minimal staff and
utilities as the largest expense item.
x A summary of expected performance is shown below:
Projected Cash Flow Analysis
Pusch Ridge GC
9-Hole “As-Is” Operation
Rounds 4,500 4,300 4,200 4,100 4,000
Golf Revenue Year 1 Year 2 Year 3 Year 4 Year 5
Golf Fees $94,500 $91,700 $90,900 $90,000 $89,200
Merchandise / Snacks 3,400 3,300 3,200 3,200 3,200
Other 1,100 1,100 1,100 1,100 1,100
Total Golf Revenue $99,000 $96,100 $95,200 $94,300 $93,500
Total COS $2,300 $2,200 $2,200 $2,200 $2,200
Operating Expenses
Total Personnel $70,000 $71,800 $73,600 $75,400 $77,300
Repairs & Maintenance 10,000 10,300 10,600 10,900 11,200
Operations 4,000 4,100 4,200 4,300 4,400
Utilities 120,000 123,000 126,100 129,300 132,500
Marketing 1,500 1,500 1,500 1,500 1,500
Other 1,000 1,000 1,000 1,000 1,000
Total Expense $206,500 $211,700 $217,000 $222,400 $227,900
Facility Net ($109,800)($117,800)($124,000)($130,300)($136,600)
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 85
July 5, 2017
Enhance Pusch Ridge w/ “Dirty Dozen” Concept
NGF has prepared a projection for Pusch Ridge under the assumption that the golf course would
remain open with a complete renovation of the facility into a 12-hole concept and a “Dirty Dozen”
branding as proposed by FRA and presented as “Pusch Ridge Option” (Appendix C). This
renovation will remove 14.9 acres of turf from the facility, mostly along the interior of holes
bordering directly on the El; Conquistador entry roadway. The total investment proposed for this
Pusch Ridge Concept was previously identified as $3.0 million. The projections made for the new
12-hole concept assume all of the base assumptions in the “as-is” scenario, except:
x The new concept is marketed and gains support from the adjacent resort. Rounds
improve to 7,500 by the fourth year of operation. Pusch Ridge would continue as a 6-
month operation, closing each summer as at present.
x The course would continue to operate without a formal pro shop or food and beverage
operation. The only ancillary sales would be minor merchandise (balls, tees, hats, etc.)
and vending snack items.
x Revenues assume an average of approximately $21.00 per round for all golf fees,
services and charges at Pusch Ridge GC, with 1.5% inflation through Year 5.
x Expenses are assumed to reflect the current reduced operation, with minimal staff and
utilities as the largest expense item. Other changes in expenses from turf reduction:
Total ECGT utilities expense is reduced by 65% to reflect reduced irrigated
acreage and efficiencies in new irrigation system.
x A summary of expected performance is shown below:
Projected Cash Flow Analysis
Pusch Ridge GC
12-Hole “Dirty Dozen” Operation
Rounds 4,500 6,000 7,000 7,500 7,500
Golf Revenue Year 1 Year 2 Year 3 Year 4 Year 5
Golf Fees $94,500 $127,900 $151,400 $164,700 $167,200
Merchandise / Snacks 3,400 4,600 5,400 5,900 6,000
Other 1,100 1,500 1,800 2,000 2,000
Total Golf Revenue $99,000 $134,000 $158,600 $172,600 $175,200
Total COS $2,300 $3,100 $3,600 $4,000 $4,000
Operating Expenses
Total Personnel $70,000 $71,800 $73,600 $75,400 $77,300
Repairs & Maintenance 10,000 10,300 10,600 10,900 11,200
Operations 4,000 4,100 4,200 4,300 4,400
Utilities 50,000 51,300 52,600 53,900 55,200
Marketing 1,500 1,500 1,500 1,500 1,500
Other 1,000 1,000 1,000 1,000 1,000
Total Expense $136,500 $140,000 $143,500 $147,000 $150,600
Facility Net ($39,800)($9,100)$11,500 $21,600 $20,600
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 86
July 5, 2017
“Dirty Dozen” Concept Revenue Potential
The base level projection shows the expected performance of Pusch Ridge under the assumption
of continued operation with limited staff, minimal marketing and six-month closure during the
summer. If the new and exciting concept added to this site were to be aggressively marketed and
the adjacent resort was to funnel golfers to the new “Dirty Dozen” golf course, the economic
performance of the facility would be improved considerable. In considering this possibility, NGF
shows a realistic estimate of potential under a number of different scenarios, all of which assume
lower personnel expense without a traditional pro shop staff, deferring to a resort-Town program
to collect green fees, etc. These estimates are based on several assumptions as noted, and also
consider the actual performance of other par-3 golf courses in comparable resort settings:
x The “Base” projection assumes a modest improvement to 7,500 rounds by Year 4, and
matches the Year 4 projection noted above. Pusch Ridge would continue as a 6-month
operation, closing each summer as at present.
x A second projection is prepared under the assumption of enhanced marketing and
promotion of the new concept, plus enhancements to staff and year-round operation.
Expenses are adjusted to account for the year-round operation and additional on-site
staff presence.
x The third projection is prepared under the assumption of both enhanced marketing and
full buy-in from the adjacent resort, possibly through advance purchase of 4,000+
rounds per year. Expenses are adjusted to account for the year-round operation and
additional on-site staff presence:
x A summary of projected income under each scenario is shown below:
Year 4 Cash Flow Projection
12-Hole “Dirty Dozen” Operation
Summary of Income Potential
Base
Enhanced
Marketing
Full
Commitment
from Resort
Rounds 7,500 12,000 16,000
Golf Revenue
Golf Fees $164,700 $263,500 $351,300
Merchandise / Snacks 5,900 9,400 12,500
Other 2,000 3,100 4,200
Total Golf Revenue $172,600 $276,000 $368,000
Total COS $4,000 $6,300 $8,400
Operating Expenses
Total Personnel $75,400 $125,000 $150,000
Repairs & Maintenance 10,900 20,000 30,000
Operations 4,300 10,000 10,000
Utilities 53,900 60,000 60,000
Marketing 1,500 3,000 4,000
Other 1,000 2,000 3,000
Total Expense $147,000 $220,000 $257,000
Facility Net $21,600 $49,700 $102,600
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 87
July 5, 2017
SUMMARY DISCUSSION – NGF/FRA PROJECTIONS
The results of the NGF financial projection analysis show that all of the options analyzed by
NGF/FRA will improve the economic position of ECGT, largely through reduced maintenance
expenses (fewer maintained acres) and shifting the F&B operation to a third-party vendor. Still,
even with NGF recommendations and the modest growth of rounds and revenues, we still expect
ECGT to see challenges in the next few years. Continued operation with rounds at or near current
levels (under 50,000 total) will not lead to profitability for ECGT, and severe losses will continue,
but become more manageable for the Town under any of the renovation options presented.
The analysis also shows that the 27-hole option (Option B) at ECGT will most likely result in the
strongest net performance for the Town. This is due to the 27-hole option allowing ECGT to retain
a strong share of members and still service a comparable amount of daily fee play to what is
serviced today. The 27-hole design provides flexibility to still allow for certain “member blocks” to
be accommodated and even a select timing of shotgun starts. The 36-hole option is still providing
too much golf and higher maintenance costs, while the 18-hole option will likely chase away all
but the most die-hard resident members with private carts, thus resulting in revenue that is much
lower than the savings in maintenance expense. The NGF/FRA team also notes that the 27-hole
option provides the Town with some flexibility if the golf market were to recover or if the operator
is successful in growing activity, the capacity is still there to accommodate the increase.
Other findings from financial projections:
x If ECGT is to continue “as-is,” without facility enhancement, there will not be any
driver to reduce expenses or produce increased rounds or revenue. The result will be
even larger losses on operations in the coming years as expense inflation out-paces
revenue increases. Losses on operations could grow as large as ($2.2 million), even
if rounds increase to over 54,300 after five years (9.3% increase in rounds).
x If the ECGT is renovated to reduce maintained acreage, provide a new and modern
irrigation system, and a modernized clubhouse, the facility would see improvement in
economic performance regardless of the number of holes. If the concept of a new,
third-party vendor to operate and absorb the risk in the F&B operation is included in
the facility changes, the economic performance should improve with immediate
elimination of the large loss on F&B operations.
x While continued operation of Pusch Ridge is problematic for the Town, the NGF/FRA
plan shows that a new dynamic change to the facility could help significantly reduce
the maintenance on that golf course. With only 11.5 acres to maintain and irrigate,
the new Pusch Ridge (“Dirty Dozen”) will be able to achieve profitability with as little
as 7,500+ rounds annually, assuming an operating concept comparable to today.
With enhanced marketing and full buy-in from the resort (pre-paid rounds) the new
Pusch Ridge facility could contribute as much as $112,000+ in profit to the operation.
x If the club is upgraded and reduced to 27 holes, the NGF projects better economic
performance, but still a loss on operations. The net income will improve because the
revenue drivers derived from enhanced facilities noted above would still be present,
but the total golf maintenance expense for a “premium” facility with only 27 holes of
golf would help close the gap on operations. Combined with the Town’s
approximately $2.0 million sales tax earmark, the NGF projects as much as $1.0
million+ per year could be available for other capital projects. The capacity is so high
on a 36-hole operation, that ECGT is not likely to experience capacity issues on 27
holes, except for the four or five busiest days of the year.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 88
July 5, 2017
Summary Matrix of NGF/FRA Projections
The table below provides a summary of the analysis of three renovation options along with a base
scenario assuming ECGT continues “as-is.” The information provided includes the total
investment for ECGT required under each option (excluding Pusch Ridge) and an estimate of total
land acreage that could become available for alternate (non-golf) use. This information, combined
with the projected rounds, revenue and expenses estimated by NGF in this analysis, provides the
Town with a clear insight into the economic implications of each option. Moving forward, it is likely
that the Town’s ultimate use of the newly available acreage will be the key to the success of any
of these options, particularly if the land can be used to provide a source of capital to the Town for
use in capital projects at ECGT and Pusch Ridge. The summary table is presented below:
El Conquistador Golf & Tennis
Review of Scenarios – Year 5
Base Option A Option B Option C
Initial Investment $0 $5,115,775 $4,639,115 $4,200,795
New Acreage Made
Available 0.0 21.2 32.0*83.2*
Summary in Year 5
Total ECGT Rounds 50,300 50,300 40,600 32,400
Pusch Ridge Rounds 4,000 7,500 7,500 7,500
Total Facility Revenue $3,407,200 $2,827,200 $2,430,300 $1,828,400
Total COS $635,300 $380,200 $330,900 $252,400
Net F&B Revenue ($267,500)73,400 73,400 73,400
Total Operating Expense $4,852,700 $3,738,800 $3,006,000 $2,753,000
Total Labor Expense $2,304,300 $1,614,400 $1,234,900 $1,096,900
Total Utilities Exp. 1,402,000 1,087,400 883,100 761,600
Net Income ($2,080,800)($1,291,800)($906,600)($1,177,000)
Management Fee $144,000 $144,000 $144,000 $144,000
Net Before Other ($2,224,800)($1,435,800)($1,050,600)($1,321,000)
Sales Tax $2,000,000 $2,000,000 $2,000,000 $2,000,000
Net Net ($224,800)$564,200 $949,400 $679,000
*Includes only Town owned property and does not include additional HOA-owned parcels.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 89
July 5, 2017
Summary Statement
The Town of Oro Valley has been operating the popular 45-hole El Conquistador facility for only
two full years. This facility is aging and has seen declines in activity and is now operating at a
deficit of ($2.1 million+)that must be funded by other Town activities – adding stress to Oro Valley
taxpayers. The loss on operations is a result of several influences, some of which are not
controllable by the town or Troon Golf. Factors such as a recent recession, increasing
competition, declining physical condition and declining interest in golf have contributed to the loss
on operations. The last factor is particularly important as the Town must now consider the optimal
mix of amenities and golf course sizes, and whether 45 holes of golf remain supportable by the
Town of Oro Valley.
The ECGT facility has several amenities with potential for strong appeal to a wide variety of golf
and club consumers. However, this facility has a history of operation as a semi-private club and
even though it is owned by the Town and intended to be a community public facility, it still has a
perception in the market as a “private” facility. The local golf market has changed dramatically in
the last decade and as we look to the future of golf in Oro Valley, there is genuine concern that
the full 45-hole allotment may not be a good match for the current state of golf demand. The cost
to properly maintain a complement of 45 holes of golf is large and growing. The NGF review in
2017 shows that the cost to maintain the ECGT is much higher than any standard, mostly a result
of high utilities expense that is caused, in part, by an antiquated irrigation system. Given this and
the change in demand, the NGF sees a 27-hole golf facility at ECGT and a modified par-3
golf course (possibly 12 holes) at Pusch Ridge as a much better option for Oro Valley to
provide a more sustainable golf facility for the longer term going forward.
ECGT has a mix of customers, with long-tenured golf members, many of whom live in the
adjacent residential community, and a more transient, daily fee golfer seeking high quality at an
affordable rate. The direct feedback gained from stakeholders as part of this study effort shows
that any change to this facility is going to be controversial. However, NGF/FRA does expect that
changes to the facility will be accepted by the community, provided the changes are not too
severe, still allow for an active club membership and do not result in intense development in
narrow hole-corridors. The changes recommended by the consultants in a 27-hole operation at
ECGT (Option B) along with a new “Dirty Dozen” concept at Pusch Ridge, should provide a more
economically sustainable golf operation that should garner strong public support.
Given the above-noted findings, it is clear that the Town will not be able to continue the operation
“as-is,” and changes will be required. In summary, the most important and actionable
recommendations made by NGF are listed below, noted in priority order:
1. Improve the physical condition of the ECGT, including clubhouse enhancements.
2. Take action to reduce the amount of irrigated turf on all golf courses.
3. Upgrade the irrigation system to include new controls and in-ground piping.
4. Reduce to 27 holes at ECGT, with three 9-hole courses of equal quality and appeal.
5. Lease out (or concession) the F&B operation at ECGT to a third party.
6. Implement the plan to renovate Pusch Ridge into a “Dirty Dozen” concept as proposed
by NGF/FRA.
7. Enhance marketing (mostly through improved technology) and embrace and
implement new activities that appeal to less traditional golfer segments, especially
female golfers.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 90
July 5, 2017
Appendices
Appendix A – Golf Course Life Cycle Information
Appendix B – Golf Demand and Supply Data
Appendix C – Summary of Conceptual Reconfiguration Plan Options
Appendix D – National Rounds Played Report
Appendix E – Before and After Photo Simulations
Appendix F – Irrigation System Evaluation and Recommendations Report
Appendix G – Existing Conditions Exhibits
Appendix H – Parcel Repurposing
Appendix I – Community Meeting Notes
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 91
July 5, 2017
APPENDIX A – GOLF COURSE LIFE CYCLE
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 92
July 5, 2017
APPENDIX B – LOCAL DEMOGRAPHIC, DEMAND AND SUPPLY DATA
El Conquistador G&T Local Demographics
El Conquistador Golf & Tennis Club 5 mile 10 mile 15 mile County State U.S.
Summary Demographics
Population 1990 Census 42,616 159,497 385,917 666,883 3,663,266 248,584,652
Population 2000 Census 75,075 225,897 484,743 843,744 5,130,674 281,399,034
CAGR 1990-2000 5.83% 3.54% 2.31% 2.38% 3.43% 1.25%
Population 2010 Census 85,513 258,918 533,351 980,263 6,392,017 308,745,538
CAGR 2000-2010 1.31% 1.37% 0.96% 1.51% 2.22% 0.93%
Population Estimate 2016 87,469 271,210 558,296 1,027,379 6,861,737 322,736,220
Population 2021 Projected 93,618 291,152 600,570 1,106,490 7,346,245 335,779,240
CAGR 2016-2021 1.37% 1.43% 1.47% 1.49% 1.37% 0.80%
CAGR 2010-2021 0.83% 1.07% 1.08% 1.11% 1.27% 0.77%
Median HH Income (2016) $68,324 $56,167 $47,456 $48,046 $51,887 $56,106
Median Age (2016) 45.2 42.3 39.7 $38 $37 38.0
Ethnicity
White 85.5% 80.1% 76.0% 72.6% 71.3% 70.7%
African American 2.2% 2.9% 4.0% 4.1% 4.8% 13.3%
Asian 3.5% 4.1% 4.0% 3.2% 3.4% 5.6%
All Other 8.8% 12.8% 16.1% 20.1% 20.5% 10.5%
Hispanic Population
Hispanic 18.4% 24.9% 30.0% 36.2% 30.6% 17.3%
Not Hispanic 81.6% 75.1% 70.0% 63.8% 69.4% 82.7%
CAGR = Compound Annual Growth Rate
El Conquistador Golf & Tennis Club 5 mile 10 mile 15 mile County State U.S.
Golf Demand Indicators
Total Households 36,751 119,413 242,899 412,435 2,621,507 123,896,538
Number of Golfing Households 8,680 24,232 42,018 69,007 407,846 17,094,500
Projected Golfing Households (2021) 9,065 25,310 43,629 72,205 431,710 17,802,020
Projected Annual Growth Rate 0.90% 0.90% 0.80% 0.90% 0 0.8%
Seasonal Golfing Households 429 1,216 1,792 3,233 30,968 737,636
Latent Demand/Interested Non-Golfers 11,724 38,759 80,758 130,619 837,729 37,346,480
Household Participation Rate 23.60% 20.30% 17.30% 16.70% 0 13.8%
Number of Golfers 11,691 31,618 53,795 93,106 603,301 24,130,710
Rounds Potential (resident golfers) 257,365 719,525 1,190,539 2,012,194 11,809,889 465,791,320
Estimated Course Rounds (in-market supply) 419,332 984,308 1,367,423 1,947,628 14,854,984 465,791,320
Demand Indices
Golfing Household Participation Rate 171 147 125 121 113 100
Seasonal Golfing Households 198 172 125 133 200 100
Latent Demand/Interested Non-Golfers 115 121 124 110 106 100
Rounds Potential per Household (resident golfers) 186 160 130 130 120 100
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 93
July 5, 2017
El Conquistador G&T Golf Demand and Supply Data
El Conquistador Golf & Tennis Club 5 mile 10 mile 15 mile County State U.S.
Golf Supply
Golf Facilities
Total 8 18 25 39 314 15,204
Public 6 14 19 30 246 11,388
Public: Daily Fee 4 11 14 24 215 8,906
Public: Municipal 2 3 5 6 31 2,482
Private 2 4 6 9 68 3,816
Public Golf Facilities by Price Point
Premium (>$70) 4 8 9 12 90 1,363
Standard ($40-$70) 2 5 8 14 102 4,013
Value (<$40) 0 1 2 4 54 6,012
Golf Holes
Total 171 405 567 801 6,066 257,193
Public 135 324 441 630 4,734 187,614
Public: Daily Fee 90 261 324 495 4,167 146,124
Public: Municipal 45 63 117 135 567 41,490
Private 36 81 126 171 1,332 69,579
Non-Regulation (Executive & Par-3) 0 18 36 81 927 21,348
Net Change
Net Change in Holes past 5 years 0 18 0 -18 -171 -9,045
Percentage Total Holes Past 5 Yrs 0.00% 4.70% 0.00% -2.20% -2.70% -3.4%
Net Change in Holes past 10 Years 0 45 27 27 -126 -12,231
Percentage Total Holes Past 10 Yrs 0.00% 12.50% 5.00% 3.50% -2.00% -4.5%
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 94
July 5, 2017
El Conquistador Golf & Tennis Club 5 mile 10 mile 15 mile County State U.S.
Supply-Demand Ratios
Households per 18 Holes
Total 3,869 5,307 7,711 9,268 7,779 8,671
Public 4,900 6,634 9,914 11,784 9,968 11,887
Public: Daily Fee 7,350 8,235 13,494 14,998 11,324 15,262
Public: Municipal 14,700 34,118 37,369 54,991 83,222 53,751
Private 18,376 26,536 34,700 43,414 35,426 32,052
Premium (>$70) 6,125 9,553 17,350 24,261 22,502 74,930
Standard ($40-$70) 24,501 26,536 28,576 27,496 24,051 28,982
Value (<$40) 0 119,413 121,450 137,478 69,907 27,566
Golfing Households per 18 Holes
Total 914 1,077 1,334 1,551 1,210 1,196
Public 1,157 1,346 1,715 1,972 1,551 1,640
Public: Daily Fee 1,736 1,671 2,334 2,509 1,762 2,106
Public: Municipal 3,472 6,923 6,464 9,201 12,947 7,416
Private 4,340 5,385 6,003 7,264 5,511 4,422
Premium (>$70) 1,447 1,939 3,001 4,059 3,501 10,338
Standard ($40-$70) 5,787 5,385 4,943 4,600 3,742 3,999
Value (<$40) 0 24,232 21,009 23,002 10,876 3,803
Household Indices
Total 44 61 88 106 89 100
Public 41 55 83 98 83 100
Private 57 82 107 134 109 100
Premium (>$70) 8 13 24 33 31 100
Standard ($40-$70) 85 92 99 96 84 100
Value (<$40) 0 417 424 480 244 100
Golfing Household Indices
Total 76 89 110 128 100 100
Public 70 81 104 119 94 100
Private 97 120 134 162 123 100
Premium (>$70) 14 19 30 40 34 100
Standard ($40-$70) 146 136 125 116 94 100
Value (<$40) 0 613 532 582 275 100
Rounds per 18 Holes
Rounds Potential (resident golfers) 27,091 31,979 37,795 45,218 35,044 32,599
Estimated Course Rounds (in-market supply) 44,140 43,747 43,410 43,767 44,080 32,599
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 95
July 5, 2017
APPENDIX C – SUMMARY OF CONCEPTUAL RECONFIGURATION PLAN OPTIONS
El Conquistador Reconfiguration Option A
Option A represents a 36-KROHUHFRQ¿JXUDWLRQRIWKH&RQTXLVWDGRU &DxDGD&RXUVHVUHWDLQLQJWZR-
hole courses. The plan removes some parcels from golf use, but retains nearly all of the existing
Conquistador Course with the exception of existing Hole No. 12. Details include:
A. A new cart path is proposed at the right side of existing Hole No. 1 (Conquistador) to remove
carts from the edge of the practice range area where errant balls may be a hazard. The access
path to the west end of the practice range from the clubhouse area is eliminated with path
access transferred to the opposite side of the practice area. These adjustments mitigate safety
issues.
B. The existing par-4 Hole No. 1 (Conquistador) is converted to a par-5 by extending the approach
and building a new green and surrounds. Tees for existing Hole No. 6 (Conquistador) are
shifted (see “E”) to permit this adjustment. The new green will be at the edge of a natural wash.
This adjustment adds one stroke to par and allows other holes to be shortened for the purpose
of reducing turf while retaining a regulation length layout.
C. Existing hole No. 5 (Conquistador) is converted into a par-4 by building a new green and
surrounds. This adjustment facilitates a new par-3 to play to the existing green now used for
Hole No. 4 (Conquistador).
D. A new par-3 hole is created (new Hole No. 6), playing to the existing green of Hole No. 4
(Conquistador). A new set of tees at the edge of the existing pond facilitates this new hole.
E. Existing Hole No. 7 (Conquistador) is retained with new tees set higher and to the right of the
existing tees. This adjustment permits “B” as described above. The par-3 is now Hole No. 8 of
the new Conquistador 18-hole Course.
F. Existing Hole No. 7 (Conquistador) is converted to a par-5 with a new tee and an expanded
green. This adjustment facilitates more length for the conversion of the hole to a par-5.
G. Existing Hole No. 13 (Conquistador) is converted into a par-3 by adding a new set of tees.
These adjustments make available “Parcel 1” for non-golf use(s). New Hole No. 13 of the
Conquistador Course plays to the existing No. 13 green.
H. Existing Hole No. 12 (Conquistador) is eliminated entirely. This adjustment is integral to “G” and
“Parcel 1” as described above.
I. A new two-way cart path is proposed to offer better and safer access to and from the west end
of the practice area, and also to access the 10th tee (and other holes) of the Conquistador
Course. New practice area protection fencing (poles and nets) are shown to border this new
path.
J. Existing Hole No. 1 (Cañada) is eliminated. Combined with “T” (below) this adjustment facilitates
“Parcel 2” to be utilized by the Town for non-golf use(s). Access to the new No. 1 hole of the
Cañada Course will be along the entry drive and by using the existing underpass at La Cañada
Drive. New Hole No. 1 (Cañada) is the former Cañada Hole No. 3.
K. Existing Hole No. 2 (Cañada) is eliminated. Combined with “S” (below) this adjustment
facilitates “Parcel 3” to be utilized by the Town for non-golf use(s). Access to the new No. 1 hole
of the Cañada Course will be along the northern edge of the non-golf parcel.
L. The new Hole No. 1 of the reconfigured Cañada Course is a shortened version of existing Hole
No. 3 (Cañada). This is facilitated by building a new green and surrounds. A new path will
access this new green and then connect to a new par-3 hole added north of the existing green
area.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 96
July 5, 2017
M. A new par-3 hole is created on the ridge behind the new Cañada Course Hole No. 1. This
becomes new Hole No. 2 (Cañada). This adjustment is facilitated by a new set of tees, path and
green. New tees are also created for the subsequent hole, new Hole No. 3 (Cañada). The
slightly shortened Hole No. 3 is essentially existing Hole No. 4 (Cañada).
N. A new par-3 hole is created by using and expanding tees at what is existing Hole No. 6
(Cañada) tee complex area. This new par-3 becomes new Hole No. 5 (Cañada) and plays to a
new green (see “O” below)
O. The new green for new Hole No. 5 is located at what is now the first portion of fairway for the
existing Hole No. 6 (Cañada). The new par-3 is facilitated by a new path, tee expansions and a
new green and surrounds accommodated by both “N” and “O” as described.
P. New tees and a new path are proposed to retain the existing par-5 (now Hole No. 6 of the
Cañada Course). With the addition of two par-3 holes (“M”, “N” and “O” above) the slightly
reconfigured Hole No. 6 remains new Hole No. 6 (Cañada). The new par-5 plays across the
natural wash, adding strategy and a heroic tee shot.
Q. Existing Hole No. 12 (Cañada) is converted into a par-5 by building a new green, expanding the
approach and adding path to access the new green. Tees are adjusted on the subsequent hole,
No. 13 (Cañada).
R. Existing Hole No. 16 (Cañada) is converted into a par-4 by building a new green short of the
wash/drainage crossing that now crosses the existing fairway. This reconfiguration facilitates
Parcel 3 in combination with “S” and “K”.
S. The approach and green for existing Hole No. 16 (Cañada) is removed for non-golf use(s) to
create Parcel 3 in combination with “R” and “K”.
T. Existing tees and a portion of the current Hole No. 17 (Cañada) is removed for non-golf use(s)
to create Parcel 4. The new Hole No. 17 becomes a par-3 with new tees playing to the existing
green.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 98
July 5, 2017
El Conquistador Reconfiguration Option A – Estimated Probable Cost
Option A – Conceptual Reconfiguration Plan (36 Holes)
I. BASE RECONFIGURATION Qty Unit Unit Cost Item Total Notes
Mobilization 1 LS $ 15,000 $ 15,000 Use of Maint. Facility assumed
Staking 1 LS $ 10,000 $ 10,000 GPS from plans (no RLS)
(A) New Path/Remove Path 1 LS $ 35,000 $ 35,000 Bury old concrete on site
(B) New Green/Approach 1 LS $ 80,000 $ 80,000 Modified USGA
(C) New Green/Surrounds 1 LS $ 65,000 $ 65,000 Modified USGA
(D) New Tees/Surrounds 1 LS $ 40,000 $ 40,000 4-in. Sand plated/re-work surrounds at pond edge
(E) New Tees 1 LS $ 15,000 $ 15,000 4-in. Sand plated
(F) New Tees/Green Exp. 1 LS $ 40,000 $ 40,000 4-in. Sand plated/Modified USGA (expansion)
(G) New Tees/Surrounds 1 LS $ 40,000 $ 40,000 4-in. Sand plated
(H) Remove Holes/Re-veg. 2.6 AC $ 18,000 $ 46,800 Rem. upper layer, re-shape, bury, hydroseed
(I) New Paths/Range Fence 1 LS $ 150,000 $ 150,000 60-ft. height assumed
(J) Remove Hole/Re-veg. 2.4 AC $ 18,000 $ 43,200 Rem. upper layer, re-shape, bury, hydroseed
(K) Remove Hole/Re-veg. 1.7 AC $ 18,000 $ 30,600 Rem. upper layer, re-shape, bury, hydroseed
(L) New Path 1 LS $ 25,000 $ 25,000 Concrete, 7-ft. width
(M) New Tees 1 LS $ 20,000 $ 20,000 4-in. Sand plated
(N) New Tees/Path 1 LS $ 30,000 $ 30,000 4-in. Sand plated/concrete, 7-ft. width
(O) New Green/Fairway 1 LS $ 80,000 $ 80,000 Modified USGA
(P) New Tees/Path 1 LS $ 30,000 $ 30,000 4-in. Sand plated/concrete, 7-ft. width
(Q) New Green/Approach/Path 1 LS $ 80,000 $ 80,000 Modified USGA
(R) New Green/Surrounds 1 LS $ 65,000 $ 65,000 Modified USGA
(S) Remove Hole/Re-veg. 2.6 AC $ 18,000 $ 46,800 Rem. upper layer, re-shape, bury, hydroseed
(T) New Tees 1 LS $ 20,000 $ 20,000 4-in. Sand plated
Sub Total $1,007,400
II. TURF REDUCTION (Additional) Qty Unit Unit Cost Item Total Notes
Turf Conversion/Retained Holes 26.7 AC $ 20,000 $ 534,000 Turf removal for retained holes only
Irrigation Retrofit 26.7 AC $ 4,000 $ 106,800 Allowance amount
Sub Total $ 640,800
III. DEFERRED MAINTENANCE (Essential) Qty Unit Unit Cost Item Total Notes
Bunker (Removal) 34 EA $ 2,000 $ 68,000 Removed from retained holes only
Bunkers (remodeled, added) 77 EA $ 5,500 $ 423,500 1,100 s.f. Avg.; BBB System
Greens Resurfacing 78,000 SF $ 4 $ 312,000 (13) Greens at 6,000 s.f. per green (average)
Tee Additions 21 EA $ 3,000 $ 63,000 4-in Sand plated
Tee Leveling/Resurfacing 40 EA $ 1,500 $ 60,000 Allowance
Irrigation Work (Coursewide) 108.3 AC $ 8,500 $ 920,550 New control Sys./heads for areas retained
Path Repair/ADA Access 1 AL $ 250,000 $ 250,000 Allowance; curb removal/replacement
Landscape 1 AL $ 60,000 $ 60,000 Pruning, removal (allowance)
Irrigation Pump Station (lower) 1 AL $ 250,000 $ 250,000 Replacement (allowance)
Golf Maint. Facility Upgrades 1 AL $ 150,000 $ 150,000 Allowance
Sub Total $2,557,050
IV. PROJECT COSTS Qty Unit Unit Cost Item Total Notes
Engineering/Design 1 AL $ 325,000 $ 325,000 Allowance
Permits/Fees 1 AL $ 15,000 $ 15,000 Allowance
Grow-in/Maturation 1 AL $ 150,000 $ 150,000 Water, labor (project allowance for planted areas)
Contingency (10% I, II & III) $ 420,525
Sub Total $ 910,525
TOTAL ESTIMATED PROBABLE COST (golf course work)$5,115,775
Notes: (1) Probable cost estimates based on conceptual plan dated 6-1-17; (2) Environmental remediation and similar unforeseen conditions may be required and are not included; (3) All quantities
are estimates based on the conceptual planning work prepared to date; (4) Non-prevailing wage work requirements have been assumed for the purposes of the estimates; (5) Statements of Probable
Costs represent the Golf Course Architect's best judgment of the probable construction cost as a design professional given that neither the Golf Course Architect nor Owner has control over the cost of
labor, materials, or equipment; or over a contractor’s methods of determining bid prices; or over competitive bidding, market or negotiating conditions; (6) Construction management services are not
included; (7) Facility down time is not included within these estimates; (8) Irrigation work is limited to replacing control system, heads and laterals with main line preservation in selected areas.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 99
July 5, 2017
El Conquistador Reconfiguration Option B
Option B retains all but a few existing holes of the Conquistador Course. Hole No. 12 and a portion of Hole
No. 13 are removed. Nine full holes and portions of two other holes are removed from the Cañada Course.
Specific reconfiguration and improvement work is as follows:
A. A new cart path is proposed at the right side of existing Hole No. 1 (Conquistador) to remove
carts from the edge of the practice range area where errant balls may be a hazard. The access
path to the west end of the practice range from the clubhouse area is eliminated with path
access transferred to the opposite side of the practice area. These adjustments mitigate safety
issues.
B. The existing par-4 Hole No. 1 (Conquistador) is converted to a par-5 by extending the approach
and building a new green and surrounds. Tees for existing Hole No. 6 (Conquistador) are
shifted (see “E”) to permit this adjustment. The new green will be at the edge of a natural wash.
This adjustment adds one stroke to par and allows other holes to be shortened for the purpose
of reducing turf while retaining a regulation length layout. This hole becomes No. 1 of the Silver
Nine.
C. Existing hole No. 5 (Conquistador) is converted into a par-4 by building a new green and
surrounds. This adjustment facilitates a new par-3 to play to the existing green now used for
Hole No. 4 of the Silver Nine.
D. A new par-3 hole is created (new Hole No. 6 of the Silver Nine), playing to the existing green of
Hole No. 4 (Conquistador). This new par-3 is conceptually shown on the accompanying
“before/after” exhibit. A new set of tees at the edge of the existing pond facilitates this new hole.
E. Existing Hole No. 7 (Conquistador) is retained with new tees set higher and to the right of the
existing tees. This adjustment permits “B” as described above. The par-3 is now Hole No. 8 of
the Silver Nine.
F. Existing Hole No. 7 (Conquistador) is converted to a par-5 with a new tee and an expand green.
This adjustment facilitates more length for the conversion of the hole to a par-5, which is No. 7
of the Silver Nine.
G. Existing Hole No. 13 (Conquistador) is converted into a par-3 by adding a new set of tees.
These adjustments make available “Parcel 1” for non-golf use(s) (see above). New Hole No. 4
of the Gold Nine plays to the existing No. 13 green (Conquistador).
H. Existing Hole No. 12 (Conquistador) is eliminated entirely. This adjustment is integral to “G” and
Parcel 1 as described above.
I. A new two-way cart path is proposed to offer better and safer access to and from the west end
of the practice area, and also to access the 10th tee (and other holes) of the Conquistador
Course. New practice area protection fencing (poles and nets) are shown to border this new
path.
J. Existing Hole No. 1 (Cañada) is eliminated. Combined with “T” (below) this adjustment facilitates
“Parcel 2” to be utilized by the Town for non-golf use(s). Access to the new No. 1 hole of the
Turquoise Nine will be along the entry drive and by using the existing underpass at La Cañada
Drive. New Hole No. 1 (Turquoise) is the former Cañada Hole No. 3.
K. Existing Hole No. 2 (Cañada) is eliminated. Combined with “S” (below) this adjustment
facilitates “Parcel 3” to be utilized by the Town for non-golf use(s). Access to the new No. 1 hole
of the Cañada Course will be along the northern edge of the non-golf parcel.
L. A new path is proposed to connect to existing Hole No. 6 (Cañada). This hole, a par-5, becomes
the 3rd hole of the reconfigured “Turquoise Nine”.
M. Existing Hole No. 4 of the Cañada Course is removed to allow for “Parcel 4” to be made
available for non-golf use(s).
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 100
July 5, 2017
N. Existing Hole No. 5 of the Cañada Course is removed to allow for “Parcel 5” to be made
available for non-golf use(s).
O. Existing Hole No. 10 of the Cañada Course is removed to allow for “Parcel 7” to be made
available for non-golf use(s), although this parcel would revert to the HOA.
P. Existing Hole No. 11 of the Cañada Course is removed to allow for “Parcel 8” to be made
available for non-golf use(s), although this parcel would revert to the HOA.
Q. Existing Hole Nos. 12 and 13 of the Cañada Course are removed to allow for “Parcel 9” to be
made available for non-golf use(s), although this parcel would revert to the HOA.
R. Existing Hole No, 14 of the Cañada Course is removed to allow for “Parcel 10” to be made
available for non-golf use(s), although this parcel would revert to the HOA.
S. Existing Hole No. 16 (Cañada) is converted into a par-4 by building a new green short of the
wash/drainage crossing that now crosses the existing fairway. This reconfigured hole becomes
No. 7 of the “Turquoise Nine”. This reconfiguration facilitates Parcel 3 in combination with “T”
and “K”.
T. The approach and green for existing Hole No. 16 (Cañada) is removed for non-golf use(s) to
create “Parcel 3” in combination with “S” and “K”.
U. Existing tees and a portion of the current Hole No. 17 (Cañada) is removed for non-golf use(s)
to create “Parcel 6.” The new Hole No. 8 of the Turquoise Nine becomes a par-3 with new tees
playing to the existing green.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 102
July 5, 2017
El Conquistador Reconfiguration Option B – Estimated Probable Cost
Option B – Conceptual Reconfiguration Plan (27 Holes)
I. BASE RECONFIGURATION Qty Unit Unit Cost Item Total Notes
Mobilization 1 LS $ 15,000 $ 15,000 Use of Maint. Facility assumed
Staking 1 LS $ 5,000 $ 5,000 GPS from plans (no RLS)
(A) New Path/Remove Path 1 LS $ 35,000 $ 35,000 Bury old concrete on site
(B) New Green/Approach 1 LS $ 80,000 $ 80,000 Modified USGA
(C) New Green/Surrounds 1 LS $ 65,000 $ 65,000 Modified USGA
(D) New Tees/Surrounds 1 LS $ 40,000 $ 40,000 4-in. Sand plated/re-work surrounds at pond edge
(E) New Tees 1 LS $ 15,000 $ 15,000 4-in. Sand plated
(F) New Tees/Green Exp. 1 LS $ 40,000 $ 40,000 4-in. Sand plated/Modified USGA (expansion)
(G) New Tees/Surrounds 1 LS $ 40,000 $ 40,000 4-in. Sand plated
(H) Remove Holes/Re-veg. 2.6 AC $ 18,000 $ 46,800 Rem. upper layer, re-shape, bury, hydroseed
(I) New Paths/Range Fence 1 LS $ 150,000 $ 150,000 60-ft. height assumed
(J) Remove Hole/Re-veg. 2.4 AC $ 18,000 $ 43,200 Rem. upper layer, re-shape, bury, hydroseed
(K) Remove Hole/Re-veg. 1.7 AC $ 18,000 $ 30,600 Rem. upper layer, re-shape, bury, hydroseed
(L) New Path 1 LS $ 18,000 $ 18,000 Concrete, 7-ft. width
(M) Remove Hole/Re-veg. 2.1 AC $ 18,000 $ 37,800 Rem. upper layer, re-shape, bury, hydroseed
(N) Remove Hole/Re-veg. 2.2 AC $ 18,000 $ 39,600 Rem. upper layer, re-shape, bury, hydroseed
(O) Remove Hole/Re-veg. 4.9 AC $ 18,000 $ 88,200 Rem. upper layer, re-shape, bury, hydroseed
(P) Remove Hole/Re-veg. 3.4 AC $ 18,000 $ 61,200 Rem. upper layer, re-shape, bury, hydroseed
(Q) Remove Hole/Re-veg. 6.2 AC $ 18,000 $ 111,600 Rem. upper layer, re-shape, bury, hydroseed
(R) Remove Hole/Re-veg. 3 AC $ 18,000 $ 54,000 Rem. upper layer, re-shape, bury, hydroseed
(S) New Green/Surrounds 1 LS $ 65,000 $ 65,000 Modified USGA
(T) Remove Hole/Re-veg. 2.6 AC $ 18,000 $ 46,800 Rem. upper layer, re-shape, bury, hydroseed
(U) New Tees 1 LS $ 20,000 $ 20,000 4-in. Sand plated
Sub Total $ 1,147,800
II. TURF REDUCTION (Additional) Qty Unit Unit Cost Item Total Notes
Turf Conversion/Retained Holes 25.3 AC $ 20,000 $ 506,000 Turf removal for retained holes only
Irrigation Retrofit 25.3 AC $ 4,000 $ 101,200 Allowance amount
Sub Total $607,200
III. DEFERRED MAINTENANCE (Essential) Qty Unit Unit Cost Item Total Notes
Bunker (Removal) 29 EA $ 2,000 $ 58,000 Removed from retained holes only
Bunkers (remodeled, added) 59 EA $ 5,500 $ 324,500 1,100 s.f. Avg.; BBB System
Greens Resurfacing 48,000 SF $ 4 $ 192,000 (8) Greens at 6,000 s.f. per green (average)
Tee Additions 21 EA $ 3,000 $ 63,000 4-in Sand plated
Tee Leveling/Resurfacing 30 EA $ 1,500 $ 45,000 Allowance
Irrigation Work (Coursewide) 87.9 AC $ 8,500 $ 747,150 New control Sys./heads for areas retained
Path Repair/ADA Access 1 AL $ 150,000 $ 150,000 Allowance; curb removal/replacement
Landscape 1 AL $ 60,000 $ 60,000 Pruning, removal (allowance)
Irrigation Pump Station (lower) 1 AL $ 250,000 $ 250,000 Replacement (allowance)
Golf Maint. Facility Upgrades 1 AL $ 150,000 $ 150,000 Allowance
Sub Total $ 2,039,650
IV. PROJECT COSTS Qty Unit Unit Cost Item Total Notes
Engineering/Design 1 AL $ 300,000 $ 300,000 Allowance
Permits/Fees 1 AL $ 15,000 $ 15,000 Allowance
Grow-in/Maturation 1 AL $ 150,000 $ 150,000 Water, labor (project allowance for planted areas)
Contingency (10% I, II & III) $ 379,465
Sub Total $844,465
TOTAL ESTIMATED PROBABLE COST (golf course work)$ 4,639,115
Notes: (1) Probable cost estimates based on conceptual plan dated 6-1-17; (2) Environmental remediation and similar unforeseen conditions may be required and are not included; (3) All
quantities are estimates based on the conceptual planning work prepared to date; (4) Non-prevailing wage work requirements have been assumed for the purposes of the estimates; (5)
Statements of Probable Costs represent the Golf Course Architect's best judgment of the probable construction cost as a design professional given that neither the Golf Course Architect nor
Owner has control over the cost of labor, materials, or equipment; or over a contractor’s methods of determining bid prices; or over competitive bidding, market or negotiating conditions; (6)
Construction management services are not included; (7) Facility down time is not included within these estimates; (8) Irrigation work is limited to replacing control system, heads and laterals
with main line preservation in selected areas.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 103
July 5, 2017
El Conquistador Reconfiguration Option C
Option C retains 18-holes of the existing two courses, Conquistador and Cañada. Approximately
nine holes of the existing Conquistador Course and approximately nine holes from the existing
Cañada Course are removed from golf use. The residual holes form the front none of the 18-
hole course that is configured as a result of the plan. Specific reconfiguration and improvement
work is as follows:
A. A new cart path is proposed at the right side of existing Hole No. 1 (Conquistador) to
remove carts from the edge of the practice range area where errant balls may be a
hazard. The access path to the west end of the practice range from the clubhouse
area is eliminated with path access transferred to the opposite side of the practice
area. These adjustments mitigate safety issues.
B. Existing Hole No. 2 (Conquistador) is eliminated entirely. This adjustment allows
“Parcel 1” to be removed from golf use.
C. Existing Hole No. 4 (Conquistador) is eliminated entirely. This adjustment allows
“Parcel 2” to be removed from golf use.
D. Existing Holes No. 3 and 5 (Conquistador) are eliminated entirely. This adjustment
allows “Parcel 3” to be removed from golf use.
E. Existing Hole No. 6 (Conquistador) is eliminated entirely. This adjustment allows
“Parcel 4” to be removed from golf use.
F. Existing Hole No. 7 (Conquistador) is adjusted to remove the existing tee areas and
shorten the hole. New tees are added for this change. This adjustment allows “Parcel
5” to be removed from golf use.
G. Existing Hole Nos. 12 and 13 (Conquistador) are eliminated entirely. This adjustment
allows “Parcel 6” to be removed from golf use.
H. Existing Hole No. 10 (Conquistador) is eliminated entirely. This adjustment allows
“Parcel 7” to be removed from golf use.
I. Existing Hole No. 9 (Conquistador) is eliminated entirely. This adjustment allows
“Parcel 8” to be removed from golf use.
J. A new two-way cart path is proposed to offer better and safer access to and from the
west end of the practice area, and also to access the 10th tee (and other holes) of
the Conquistador Course. New practice area protection fencing (poles and nets) are
shown to border this new path.
K. Existing Hole No. 1 (Cañada) is eliminated. This adjustment facilitates Parcel 9 to be
utilized by the Town for non-golf use. Access to the new No. 10 hole of the 18-hole
course will be along the entry drive and by using the existing underpass at La
Cañada Drive. New Hole No. 10 is the former Cañada Hole No. 3.
L. Existing Hole No. 2 (Cañada) is eliminated. Combined with “T” (below) this
adjustment facilitates “Parcel 10” to be utilized by the Town for non-golf use(s).
M. Existing Hole No. 4 of the Cañada Course is removed to allow for “Parcel 11” to be
made available for non-golf use(s).
N. Existing Hole No. 5 of the Cañada Course is removed to allow for “Parcel 12” to be
made available for non-golf use(s).
O. Existing Hole No. 10 of the Cañada Course is removed to allow for “Parcel 14” to be
made available for non-golf use(s), although this parcel would revert to the HOA.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 104
July 5, 2017
P. Existing Hole No. 11 of the Cañada Course is removed to allow for “Parcel 15” to be
made available for non-golf use(s), although this parcel would revert to the HOA.
Q. Existing Hole Nos. 12 and 13 of the Cañada Course are removed to allow for “Parcel
16” to be made available for non-golf use(s), although this parcel would revert to the
HOA.
R. Existing Hole No, 14 of the Cañada Course is removed to allow for “Parcel 17” to be
made available for non-golf use(s), although this parcel would revert to the HOA.
S. Existing Hole No. 16 (Cañada) is converted into a par-4 by building a new green
short of the wash/drainage crossing that now crosses the existing fairway. This
reconfigured hole becomes No. 16 of the resulting 18-hole course. This
reconfiguration facilitates “Parcel 10” in combination with “L” and “T”.
T. The approach and green for existing Hole No. 16 (Cañada) is removed for non-golf
use(s) to create “Parcel 10” in combination with “L” and “T”.
U. Existing tees and a portion of the current Hole No. 17 (Cañada) is removed for non-
golf use(s) to create “Parcel 13.” The new Hole No. 17 becomes a par-3 with new
tees playing to the existing green.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 106
July 5, 2017
El Conquistador Reconfiguration Option C – Estimated Probable Cost
Option C – Conceptual Reconfiguration Plan (18 Holes)
I. BASE RECONFIGURATION Qty Unit Unit Cost Item Total Notes
Mobilization 1 LS $ 15,000 $ 15,000 Use of Maint. Facility assumed
Staking 1 LS $ 5,000 $ 5,000 GPS from plans (no RLS)
(A) New Path/Remove Path 1 LS $ 35,000 $ 35,000 Bury old concrete on site
(B) Remove Hole/Re-veg. 2.2 AC $ 18,000 $ 39,600 Rem. upper layer, re-shape, bury, hydroseed
(C) Remove Hole/Re-veg. 2 AC $ 18,000 $ 36,000 Rem. upper layer, re-shape, bury, hydroseed
(D) Remove Hole/Re-veg. 7.2 AC $ 18,000 $ 129,600 Rem. upper layer, re-shape, bury, hydroseed
(E) Remove Hole/Re-veg. 4 AC $ 18,000 $ 72,000 Rem. upper layer, re-shape, bury, hydroseed
(F) New Tees/Surrounds 0.5 AC $ 18,000 $ 9,000 Rem. upper layer, re-shape, bury, hydroseed
(G) Remove Holes/Re-veg. 4.8 AC $ 18,000 $ 86,400 Rem. upper layer, re-shape, bury, hydroseed
(H) Remove Holes/Re-veg. 3.7 AC $ 18,000 $ 66,600 Rem. upper layer, re-shape, bury, hydroseed
(I) Remove Hole/Re-veg. 4.6 AC $ 18,000 $ 82,800 Rem. upper layer, re-shape, bury, hydroseed
(J) New Paths/Range Fence 1 LS $ 150,000 $ 150,000 60-ft. height assumed
(K) Remove Holes/Re-veg. 2.4 AC $ 18,000 $ 43,200 Rem. upper layer, re-shape, bury, hydroseed
(L) Remove Hole/Re-veg. 1.7 AC $ 18,000 $ 30,600 Rem. upper layer, re-shape, bury, hydroseed
(M) Remove Hole/Re-veg. 2.1 AC $ 18,000 $ 37,800 Rem. upper layer, re-shape, bury, hydroseed
(N) Remove Hole/Re-veg. 2.2 AC $ 18,000 $ 39,600 Rem. upper layer, re-shape, bury, hydroseed
(O) Remove Hole/Re-veg. 4.9 AC $ 18,000 $ 88,200 Rem. upper layer, re-shape, bury, hydroseed
(P) Remove Hole/Re-veg. 3.4 AC $ 18,000 $ 61,200 Rem. upper layer, re-shape, bury, hydroseed
(Q) Remove Hole/Re-veg. 6.2 AC $ 18,000 $ 111,600 Rem. upper layer, re-shape, bury, hydroseed
(R) Remove Hole/Re-veg. 3 AC $ 18,000 $ 54,000 Rem. upper layer, re-shape, bury, hydroseed
(S) New Green/Surrounds 1 LS $ 65,000 $ 65,000 Modified USGA
(T) Remove Hole/Re-veg. 2.6 AC $ 18,000 $ 46,800 Rem. upper layer, re-shape, bury, hydroseed
(U) New Tees 1 LS $ 20,000 $ 20,000 4-in. Sand plated
Irrigation Pump Station(s) 1 AL $ 150,000 $ 150,000 Retrofit upper station to serve all holes
Sub Total $ 1,475,000
II. TURF REDUCTION (Additional) Qty Unit Unit Cost Item Total Notes
Turf Conversion/Retained Holes 21.6 AC $ 20,000 $ 432,000 Turf removal for retained holes only
Irrigation Retrofit 21.6 AC $ 4,000 $ 86,400 Allowance amount
Sub Total $518,400
III. DEFERRED MAINTENANCE (Essential) Qty Unit Unit Cost Item Total Notes
Bunker (Removal) 24 EA $ 2,000 $ 48,000 Removed from retained holes only
Bunkers (remodeled, added) 40 EA $ 5,500 $ 220,000 1,100 s.f. Avg.; BBB System
Greens Resurfacing 48,000 SF $ 4 $ 192,000 (8) Greens at 6,000 s.f. per green (average)
Tee Additions 15 EA $ 3,000 $ 45,000 4-in Sand plated
Tee Leveling/Resurfacing 20 EA $ 1,500 $ 30,000 Allowance
Irrigation Work (Coursewide) 65.3 AC $ 8,500 $ 555,050 New control Sys./heads for areas retained
Path Repair/ADA Access 1 AL $ 100,000 $ 100,000 Allowance; curb removal/replacement
Landscape 1 AL $ 40,000 $ 40,000 Pruning, removal (allowance)
Golf Maint. Facility Upgrades 1 AL $ 150,000 $ 150,000 Allowance
Sub Total $ 1,380,050
IV. PROJECT COSTS Qty Unit Unit Cost Item Total Notes
Engineering/Design 1 AL $ 275,000 $ 275,000 Allowance
Permits/Fees 1 AL $ 15,000 $ 15,000 Allowance
Grow-in/Maturation 1 AL $ 200,000 $ 200,000 Water, labor (project allowance for planted areas)
Contingency (10% I, II & III) $ 337,345
Sub Total $827,345
TOTAL ESTIMATED PROBABLE COST (golf course work)$4,200,795
Notes: (1) Probable cost estimates based on conceptual plan dated 6-1-17; (2) Environmental remediation and similar unforeseen conditions may be required and are not included; (3) All
quantities are estimates based on the conceptual planning work prepared to date; (4) Non-prevailing wage work requirements have been assumed for the purposes of the estimates; (5)
Statements of Probable Costs represent the Golf Course Architect's best judgment of the probable construction cost as a design professional given that neither the Golf Course Architect nor
Owner has control over the cost of labor, materials, or equipment; or over a contractor’s methods of determining bid prices; or over competitive bidding, market or negotiating conditions; (6)
Construction management services are not included; (7) Facility down time is not included within these estimates; (8) Irrigation work is limited to replacing control system, heads and laterals with
main line preservation in selected areas.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 107
July 5, 2017
“Dirty Dozen” 12-hole, Par-3 Pusch Ridge Golf Facility
The Pusch Ridge Transformation work is outlined as follows:
A. Creation of a new 18-hole Putting Course & Short Game Practice Area
B. New Tees, Green & Surrounds for new Hole No. 1
C. New Tees, Green & Surrounds (grades lowered for entry drive views) for new Hole
No. 2
D. New Tees, Green & Surrounds for new Hole No. 3
E. New Tees, Green & Surrounds for new Hole No. 5
F. New Tees, Green & Surrounds for new Hole No. 6
G. New Tee Complex & Path Access for new Hole No. 9
H. New Tees, Greens & Surrounds for new Hole No. 10
I. New Tees, Greens & Surrounds for new Hole. No. 11
J. New Tees, Greens & Surrounds for new Hole No. 12
K. An optional Starter Shack & Pub Location is shown to replace the existing clubhouse
and facilities should these be deemed unusable and/or too costly to renovate and
bring up to standards.
In addition to the above details, new tees, desert restoration and other related work is required
for the transformation. The conceptual plan exhibit shows this work regardless of whether it is
listed above.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 109
July 5, 2017
“Dirty Dozen” Course Plan – Estimated Probable Cost
Pusch Ridge Conceptual Reconfiguration Plan (12 Holes)
I. BASE RECONFIGURATION Qty Unit Unit Cost Item Total Notes
Mobilization 1 LS $ 15,000 $ 15,000 Use of Maint. Facility assumed
Staking 1 LS $ 5,000 $ 5,000 GPS from plans (no RLS)
(A) New Putting/Short Game 1 LS $ 95,000 $ 95,000 Modified USGA
(B) New Hole (green, tees, path) 1 LS $ 75,000 $ 75,000 Modified USGA
(C) New Hole (green, tees, path) 1 LS $ 75,000 $ 75,000 Modified USGA
(D) New Hole (green, tees, path) 1 LS $ 65,000 $ 65,000 Modified USGA
Hole No. 4 (tees, path) 1 LS $ 30,000 $ 30,000 4-in. Sand plated/Concrete, 7-ft width
(E) New Hole (green, tees, path) 1 LS $ 75,000 $ 75,000 Modified USGA
(F) New Hole (green, tees, path) 1 LS $ 75,000 $ 75,000 Modified USGA
Hole No. 7 (tees, path) 1 LS $ 30,000 $ 30,000 4-in. Sand plated/Concrete, 7-ft width
(G) New Tees/Path/Bridge 1 LS $ 65,000 $ 65,000 4-in. Sand plated/Concrete, 7-ft width
(H) New Hole (green, tees, path) 1 LS $ 75,000 $ 75,000 Modified USGA
(I) New Hole (green, tees, path) 1 LS $ 65,000 $ 65,000 Modified USGA
(J) New Hole (green, tees, path) 1 LS $ 75,000 $ 75,000 Modified USGA
Remove Holes/Re-veg. (Parcel 1) 3.6 AC $ 18,000 $ 64,800 Rem. upper layer, re-shape, bury, hydroseed
Remove Holes/Re-veg. (Parcel 2) 3.8 AC $ 18,000 $ 68,400 Rem. upper layer, re-shape, bury, hydroseed
Irrigation Reservoir Tank 1 AL $ 120,000 $ 120,000 Allowance (Incl. new Svc, gravity w/ booster)
Sub Total $1,073,200
II. TURF REDUCTION (Additional) Qty Unit Unit Cost Item Total Notes
Turf Conversion/Retained Holes 28.5 AC $ 18,000 $ 513,000 Rem. upper layer, plate w/ DG
Sub Total $513,000
III. DEFERRED MAINTENANCE (Essential) Qty Unit Unit Cost Item Total Notes
Bunker (Removal) 5 EA $ - $ - Incl. in base work
Bunkers (remodeled, added) 15 EA $ - $ - Incl. in base work
Greens Resurfacing 18,000 SF $ 4 $ 72,000 (3) Greens at 6,000 s.f. per green (average)
Tee Leveling/Resurfacing 4 EA $ 1,500 $ 6,000 Allowance
Irrigation Work (Coursewide) 11.5 AC $ 40,000 $ 460,000 New control Sys./heads (see notes below)
Path Repair/ADA Access 1 AL $ 150,000 $ 150,000 Allowance
Landscape 1 AL $ 50,000 $ 50,000 Pruning, removal (allowance)
Exist. Golf Maint. Facility Demo 1 AL $ 40,000 $ 40,000 Allowance
Golf Maint. Facility Upgrades 1 AL $ 75,000 $ 75,000 Allowance (new shed and covered storage)
Sub Total $853,000
IV. PROJECT COSTS Qty Unit Unit Cost Item Total Notes
Engineering/Design 1 AL $ 275,000 $ 275,000 Allowance
Permits/Fees 1 AL $ 5,000 $ 5,000 Allowance
Grow-in/Maturation 1 AL $ 50,000 $ 50,000
Water, labor (project allowance for planted
areas)
Contingency (10% I, II & III) $ 243,920
Sub Total $573,920
TOTAL ESTIMATED PROBABLE COST (golf course work)$ 3,013,120
Notes: (1) Probable cost estimates based on conceptual plan dated 6-1-17; (2) Environmental remediation and similar unforeseen conditions may be required and are not included; (3) All
quantities are estimates based on the conceptual planning work prepared to date; (4) Non-prevailing wage work requirements have been assumed for the purposes of the estimates; (5)
Statements of Probable Costs represent the Golf Course Architect's best judgment of the probable construction cost as a design professional given that neither the Golf Course Architect
nor Owner has control over the cost of labor, materials, or equipment; or over a contractor’s methods of determining bid prices; or over competitive bidding, market or negotiating
conditions; (6) Construction management services are not included; (7) Facility down time is not included within these estimates; (8) Irrigation work is estimated at full system replacement
with selected main line spans to remain.
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 110July 5, 2017APPENDIX D – NATIONAL ROUNDS PLAYED REPORT
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 111July 5, 2017
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 112
July 5, 2017
APPENDIX E – BEFORE AND AFTER PHOTO SIMULATIONS
Oro Valley
El Conquistador Facility
Hole No. 6 (new)
Before
After
Oro Valley
Pusch Ridge Facility
Hole No. 5 (new)
After
Before
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 113
July 5, 2017
APPENDIX F – IRRIGATION SYSTEM EVALUATION AND
RECOMMENDATIONS REPORT
Coates Irrigation Consultants, Inc.
1420 North Greenfield Road | Suite 103 | Gilbert, Arizona 85234
Phone 480-481-0682 | Fax 480-481-0939
May 3, 2017
Mr. Forrest Richardson
FORREST RICHARDSON AND ASSOCIATES
2337 East Orangewood Avenue
Phoenix, Arizona 85020
RE: EL CONQUISTADOR GOLF COURSES
Irrigation System Evaluation and Recommendations Report
Dear Forrest:
We visited the project site today to evaluate the irrigation systems at the
three El Conquistador Golf Courses, and make recommendations for
improvement. We met with Tyler Rasmussen (superintendent); Tom
Meade of Troon Golf (General Manager); Richard Singer of the National
Golf Foundation; and yourself. During the meeting we discussed areas of
concern and potential golf course improvements, including irrigation
components that desperately need to be replaced. Tom stated that he
will provide a lab test for the reclaimed water for the El Conquistador and
La Canada golf courses, as well as water quantity and cost. We walked
and toured the areas of the golf course.
We also reviewed CICI Plans (from 2003); and Reports (from 2001, 2006
and 2008 which accompany this Report) prior to our visit and with Tyler for
coordination. We obtained computer irrigation data from Tyler as well for
the La Canada and El Conquistador golf courses.
A. PUSCH RIDGE GOLF COURSE (9 Holes):
1. We began at the Flowtronex pump station (photos included). The
pump station currently includes two (2) 75-HP horizontal centrifugal pumps
and motors, with spaces for two (2) future pumps that have not been
installed. One of the 75-HP pumps has not been working (we believe it
El Conquistador Golf Courses Irrigation System Evaluation Report
2 of 12
burned up). So Tyler has only one 75-HP pump to irrigate the golf course,
which is insufficient. He schedules the irrigation system for minimal
watering. The pressure is set at 130 psi on the pump station discharge.
2. As we recall, the pump station was designed for 18 holes, but there are
currently only 9 holes. That appears why the blank spaces are included
on the pump station for the two future pumps and motors. The water
supply for this golf course is potable.
3. There is a Flowtronex booster pump above the main pump station, also
set at 130 psi. We believe CICI designed both of these pump station a
number of years ago.
4. We photographed one of the Toro Osmac RDR satellite controllers,
inside a traditional cabinet. The enclosure keeps the components
weather-resistant, so the circuits won’t break down so quickly.
5. Pusch Ridge has its own central (a Toro Lynx system) computer at the
maintenance facility. This is separate from the La Canada and El
Conquistador golf courses. All equipment including sprinklers appears to
be Toro.
6. The irrigation system waters approximately 40 acres of turf. There is a lot
of rough area (more than half of the golf course in comparison with
fairways, tees, and greens surfaces). The irrigation system is not
completely separated in terms of roughs being on different zones /
schedules from fairways, etc. They are integrated due to the fashion of
the golf course, mowing patterns, and the like. It may be possible to
reduce pressure at the pump stations and in the system with a redesign,
and irrigation only the tees, greens, and fairway close-cut areas as the
priority.
Pusch Ridge Golf Course Recommendations:
1. The 75-HP motor at the pump station must be repaired and
replaced immediately.
2. This golf course lends itself to tremendous turf reduction
possibilities. Money would need to be invested into it to design and
install a new irrigation system which separates the roughs from the
fairways, etc. It is possible that many parts of the existing irrigation
system could be utilized in the new system design. CICI will need to
GPS-map the existing the features (tees, greens, fairway mowing
lines, etc.) and the irrigation system in order to create a base file
El Conquistador Golf Courses Irrigation System Evaluation Report
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and study what parts of the existing system could be kept in place.
There are currently no electronic records of the golf course or
irrigation system. CICI will use the information to create a turf
reduction irrigation plan in working with your office and according
to your direction.
3. The potable water could easily be cut in half by turf reduction in
the new irrigation design concept. The best outcome of this
particular area of the golf course would be to save overall cost
after the initial capital expenditures. After the design and
installation changes, Pusch Ridge may lend itself to the expansion
to a redesign resulting in 18 holes of golf. We don’t know the
marketability.
B. LA CANADA GOLF COURSE (18 Holes):
1. We drove the golf course with Tyler and reviewed the condition of the
irrigation system. This golf course is located on the east side of the
property, where the maintenance facility is situated.
2. A Toro Lynx central computer operates Osmac RDR field satellite
controllers. Approximately 100 field units exist on the La Canada and El
Conquistador golf courses. These satellite controller cabinets have aged
and are not weatherproof anymore, so leaks have occurred on a regular
basis which has damaged the circuit boards. These boards must be
replaced in order for the RDR units to function, and cost at least $500
each (or more). The controllers are out of date and must be replaced on
both La Canada and El Conquistador. Tyler has had to steal parts from
other controllers to make them work for some time.
3. A wiring problem also is prevalent on the golf course. 24-volt and 120-
volt wires have been cut so many times through the years, and poor
connections have resulted in many shorts in the wiring network. Electrical
current does not hold properly, so some sprinklers have been linked
together so as many as four (4) heads operate together on a station. We
recall this situation as far back as 2001, when the previous superintendent
had us provide an evaluation at that time. This linking of sprinklers causes
erratic flow issues, since the demand is significantly higher for stations with
4 sprinklers (150 to 200 gpm) than those with one head (50 gpm). The flow
demand is not equal throughout the golf course, and the overall run time
is affected. Wiring has been make-shifted over the years, and needs a lot
of help.
El Conquistador Golf Courses Irrigation System Evaluation Report
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4. The La Canada Rain Bird pump station was found to be corroded and
in a bad state. It is many years old and has many issues, including broken
scanner motors on the Amiad filters for which Tyler is awaiting parts. The
filter screens therefore don’t get cleaned properly, so he has to put the
filters in by-pass mode and debris from the reclaimed sewage treated
water in the lake gets into the irrigation system. This has caused further
issues within the irrigation sprinklers, valves, and pipes which must be
cleaned out. It appears that three 100-HP motors exist on the station.
5. The pump station pad was observed to be “tilting,” and is shown in
photos. This is a big problem that must be fixed right away. This work must
be scheduled carefully so the pump station is inoperable for as short a
time as is possible. The irrigation system’s needs must be the priority when
making this change.
6. Holes 4 and 5 were an afterthought that were added later going north.
Those holes are at a deficit, with no air-relief valves to dissipate air that
travels through the pipes to that far north end location.
7. At the far south end, there are two (2) pressure regulators at one of the
road crossings. These have recently been installed in order to reduce
pressure in the mainline from 190 psi (where surges had been blowing out
pipes) to proper water pressures to protect the pipes. The pipes had been
weakened due to all the high-pressure surges. These pressure regulators
had been recommended by CICI as many as 15 years ago, but were
installed only recently.
8. Also at the far south end, four holes were added by the original
developer over-and-above what the capacity of the mainline pipes and
pumps are capable of supplying. Velocity in the pipes is therefore
extremely high (as high as 15 fps, where 5.0 is normal as recommended by
the PVC pipe manufacturers). Pipe damage has occurred; these
problems must be corrected by a new design.
La Canada Golf Course Recommendations:
1. Pump station must be repaired, including replacement of the
filter scanner motors. Also, the pump station concrete slab is tilting
and is in bad trouble. It must be repaired or replaced soon, before
the pumps stop working due to the angle and movement of the
slab.
El Conquistador Golf Courses Irrigation System Evaluation Report
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2. The Osmac RDR field controller units should be replaced with
new Toro satellite controllers which are compatible with the Lynx
central computer.
3. Sprinkler spacing issues exist on this golf course. Heads are not
spaced correctly. The entire irrigation system and features need to
be GPS-mapped in order to study the situation and find ways to
remove turf in certain places (in coordination with your office).
Once we know the locations of the sprinklers on an electronic map,
we can advise on where turf may be removed. Sprinklers and
valves have been added or moved over the years; the map is the
only accurate way to know what is existing, what may be saved,
and what must be replaced.
C. EL CONQUISTADOR GOLF COURSE (18 Holes):
1. The pump station is a newer Rain Bird unit (about 9 months old). This
pump station includes three (3) 75-HP pumps and motors, and operates at
130 psi discharge pressure. It appears to be operating effectively.
2. Irrigation issues on this course are very similar to the La Canada course.
RDR Osmac failures due to circuit board breakage, wiring issues due to
shorts and cuts in the wires which leads to inconsistent operation so large
areas don’t even irrigated. Controller cabinets need to be replaced or
new controllers installed since the old RDR units are out-of-date, and the
like.
3. Air-relief valves need to be added to the system. Tyler stated that only
two (2) air-relief valves are currently operating. Due to the elevation
changes and high points in the irrigation pipe network where air collects
and causes surges, many more air-relief valves are necessary. Air will then
be able to dissipate out of the piping system to minimize damage. More
air-relief valves must be installed in the system at high elevation points or
dead ends of the pipe network where air tends to collect.
4. Sprinkler spacing is again a problem. We found sprinklers everywhere
from 99 feet to 60 feet apart. Spacing needs to be consistent for proper
distribution uniformity, so heads need to be relocated and re-spaced for
coverage to be correct. Also, part-circle and full-circle sprinklers have
been wired together on the same station due to wiring failures over the
years. This is inappropriate, since full-circles must operate twice as long as
part-circles. When they operate for the same length of time, the turf is
either starved or super-saturated which causes other problems due to
runoff. This must be corrected so the hydraulic flow chart and water
El Conquistador Golf Courses Irrigation System Evaluation Report
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window are efficient. It is currently not as efficient as it could be, which
also affects electric pumping costs.
El Conquistador Golf Course Recommendations:
1. Replace Osmac RDR controller cabinets with new controllers.
2. Add air-relief valves in locations designed by CICI.
3. GPS-Mapping of the existing irrigation system should be
accomplished by CICI to be utilized for a turf reduction program, to
save water and cost.
4. A number of irrigation components need to be replaced, and
new equipment installed following a new irrigation design. The key
is to realize which holes or areas will be taken out of play in order to
reduce turf. What the staff has done to date is to turn off some
sprinkler heads between holes to reduce irrigation, but due to their
location sometimes this is not the best alternative because areas
desired to continue irrigation have received too little precipitation
and have suffered. You (Forrest) and your staff will need to advise
us regarding the best locations for turf removal.
5. A great deal of reclaimed water is being consumed each day. It
is quite expensive; Tyler or Tom will send the cost. Tyler has been
given a water budget of 307,000 gallons per peak day for 18 holes
of golf. The La Canada and El Conquistador courses are basically
65 and 60 acres of turf, and some of that could be reduced in
rough and fairway areas. This subject must be coordinated with an
irrigation plan concept and replacement schedule.
D. SUMMARY:
The recommendations above are issues that must be corrected in order
to improve irrigation system efficiency. We estimate that 25-30% of water
is currently being wasted; not because of the operator, but because:
x Sprinklers have different nozzles
x Sprinklers have different pressure regulators
x Varying sprinkler spacing
This all results in inefficient irrigation operation and difficulty in
management. The improvements will require capital expenditure as
discussed above.
El Conquistador Golf Courses Irrigation System Evaluation Report
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We trust that this information is helpful. We will be happy to provide a
proposal for the next step of irrigation mapping and design when the
client is ready to move forward. Call with questions or concerns.
Sincerely,
Gaylon L. Coates, President
COATES IRRIGATION CONSULTANTS INC.
Cost for GPS-Mapping of Irrigation System & Golf Course Features:
Tees, Greens, Bunkers, Lakes, Pump Stations, Sprinkler heads, Valves,
Mainline routing, Controllers, Quick-couplers; converted into an
AutoCadd file at 100-scale:
Pusch Ridge Golf Course: $ 7,000.00
La Canada Golf Course: $ 12,000.00
El Conquistador Golf Course: $ 12,000.00
Total: $ 31,000.00
Plus expenses
Photos follow on the next pages
El Conquistador Golf Courses Irrigation System Evaluation Report
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Pusch Ridge Golf Course Photos:
El Conquistador Golf Courses Irrigation System Evaluation Report
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La Canada Golf Course Photos:
El Conquistador Golf Courses Irrigation System Evaluation Report
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El Conquistador Golf Courses Irrigation System Evaluation Report
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El Conquistador Golf Course Photos:
El Conquistador Golf Courses Irrigation System Evaluation Report
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National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 114
July 5, 2017
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National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 115
July 5, 2017
APPENDIX H – PARCEL REPURPOSING
Parcel Repurposing
The scope of work of the consultant team does not include specific recommendations for
parcel repurposing. However, the team is providing considerations to the Town, including
necessary decisions to take into account the balances associated with compatible
neighborhood uses and whether options are sustainable from a financial standpoint.
Considerations Affecting Use
• Parcel size (width) affects the decision
• Parcel location and terrain affects the decision
• Parcel access affects the decision
• Cost to repurpose is a major factor
• Cost to maintain is a major factor
• Long term sustainability is a major factor
• Revenue generation potential needs to be a major factor
Potential Parcel Uses (for parcels removed from golf uses)
• Retention of partial golf uses — “public putting greens”
• Blending natural open space with responsible development
• Avoiding uses against private homes — establishing buffers
• Land banking
• Developing public recreation uses that have potential for generating revenue
• Potential partnering with individual HOAs
• Leasing land with revenues returned for public recreation use
The graphic chart on the following page shows a range of land re-purposing options. At
the left naturalized Open Space is shown with relatively low cost to yield, but still with
costs, including on-going maintenance costs. Passive Recreation Uses, such as small
parks, dog parks, etc., involve more cost and also more on-going maintenance. Intense
Recreation Uses involve inherently more initial cost as well as potentially high costs to
maintain. Converting some land to Development Uses (e.g., residential and/or
commercial) would likely save revegetation costs to restore land, and would produce a
revenue. Under the scenario where land may be repurposed for development, the
assumption is that it may be leased by the Town for development purposes with lease
payments returned to the Town to be used to further recreation or other appropriate uses.
PreliminaryDraft PresentationJune 6th, 2017PARCELREPURPOSINGDECISIONSLeave asopen space“naturalize”PassiveRecreationUsesDevelopmentUsesIntensiveRecreationUses
National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis Report – 116
July 5, 2017
APPENDIX I – COMMUNITY MEETING NOTES
5/04 Meeting Notes
Member Meeting (Afternoon)
Likes
Ɣ Having two courses (36 holes)
Ɣ Having a dedicated members’ side (separation between members/non-members is
important)
Ɣ Having two ends to the driving range
Ɣ Mats on the driving range
Ɣ Strong men’s and women’s golf associations
Ɣ Shotgun starts
Ɣ Great playing conditions under Troon’s management
Ɣ T1 bentgrass on the Conquistador course
Ɣ Ease of finding a group to play with as a new member, welcoming/supportive member
community
Ɣ Support for junior golfers
Ɣ Trees in the fairways (mixed reactions)
Ɣ Choice of multiple tee boxes
Ɣ Courses are challenging but reasonable in length
Ɣ Great views on the course: Cañada 2, 7, 8, 9, 16 | Conquistador 16
Ɣ Cleaned up brush/overgrown areas, leading to improved pace of play
Ɣ High value of membership relative to dues paid
Ɣ Full service country club amenities (pool, fitness center, etc.)
Ɣ Dramatically improved food/fitness/tennis under Troon
Ɣ Increasing support for pickleball
Ɣ Troon privé perks on other courses
Ɣ Spectacular views from the Overlook
Ɣ Accommodating golf club/restaurant staff
Ɣ No food minimum
Ɣ Pro shop discounts
Ɣ Central location within the town
Ɣ Peaceful environment for a golf course
Dislikes
Ɣ Awkward shots on Conquistador 4 due to slopes
Ɣ Domed tees on Conquistador 7, 17
Ɣ Conquistador 15: Difficult Par 4, too long/difficult green
Ɣ Cañada 3: massive bunker to the right of the green
Ɣ Cañada 4: dangerous and slow to retrieve balls in the wash
Ɣ Cañada 15 (steep slope, dangerous areas with rocks and pebbles)
Ɣ Cañada 16: sand traps
Ɣ Cañada 16: awkward routing, must double back around the water
Ɣ Pusch Ridge (unimportant to the members, viewed as a financial drain)
Ɣ Inconsistent yardage markers on the driving range
Ɣ Difficult to get in touch with maintenance staff (e.g. when a sprinkler runs unexpectedly)
Ɣ Curbs, overall poor cart path conditions
Ɣ Inconsistent conditions of sand traps
Ɣ Some sand traps are difficult to maintain and dangerous to enter/exit (e.g. Canada 8)
Ɣ Out-of-bounds markers typically too close to fairways, too punitive, removing a key
element of a desert course
Ɣ Greens don’t hold, balls roll too much
Ɣ Too many non-golfers on the property
Ɣ No walkable 18-hole layout
Ɣ No ice on course
Ɣ No course marshall
Ɣ Inability to make tee times online
Ɣ Lack of a premiere wedding venue
Ɣ F&B hours are too short, need for a snack bar or more beverage carts
Ɣ Complex organizational structure, Town Manager does not appear to be actively involved
Ɣ No patio on the Overlook
Ɣ Terrible acoustics in the Overlook
Ɣ Very rule-oriented club, changed culture after Town acquisition
Ɣ F&B asking for member number before greeting
Ɣ Difficulty making restaurant reservations, ambiguous hours
Ɣ Small pool never open or used
Concerns
Ɣ Uncertain direction for the future
Ɣ The club has historically attracted residents to the area, drastic changes could cause
members to leave the town entirely
Ɣ Never want to see a fairway turn into a road with residential development
Ɣ Fear of eliminating holes, would rather move to a new course
Ɣ Uncomfortable with the language of the RFP (perceived focus on removing golf rather
than improving the existing asset
Ɣ Focusing on Pusch Ridge is a problem
Ɣ Unnecessary turf in some areas
Ɣ High water costs despite municipal operation
Ɣ Non-members play slowly and take poor care of the course
Town Meeting (Evening)
1. A citizen who was not present at the earlier afternoon member meeting. Asks the team to
recapitulate some of the discussion/concerns voiced by members.
2. Residents along Pusch Ridge “feel like orphans” and believe that the importance of their
course has not been represented in discussions. Asked whether Pusch Ridge had any
representation at the member meeting.
3. Cited another golf course in Tucson that had closed and become a park, resulting in
problems such as litter and a homeless presence. Asked whether these concerns were
being addressed by the team.
4. Lives on the 18th fairway of El Conquistador. Appreciates the concern given to real
estate values. Recommends the team to consider leasing out the Overlook restaurant
facility to increase revenue. Also asks whether pickleball courts would be implemented
as part of the community center.
5. Resident of Pusch Ridge. Describes the course as the perfect environment for a fast,
challenging, and scenic game at an affordable price. Stated that a “large group of ladies”
enjoys playing the course together every Tuesday.
6. Previous resident of Pusch Ridge, now living in Cañada Hills along the Conquistador
course. Suggests leasing out the restaurant, citing Tucson as an up-and-coming location
for restaurateurs.
7. Resident along the 8th Hole of Pusch Ridge. Curious about how the course could be
reconfigured to accommodate alternative recreational uses, such as ballfields and hiking
trails. Believes supervision will be necessary and retired police/military in the community
could provide useful oversight. Would also like to see a snack bar and miniature golf
course, making the area more family-oriented.
8. Previously a member at El Conquistador for 6 years but no longer. Asks how the group
the group will attract new golfers to the course (receives applause from the audience).
9. Resident who moved to the area to live along Pusch Ridge predominantly due to the
presence of the golf course. Notes that both courses are missing good driving ranges
despite clear demand in the area.
10. Resident on the 4th Hole of the Conquistador course. Believes the fairways would make
perfect open spaces if opened to non-golfers in the evening.
11. Hopes to see demand for pickleball addressed in the plan.
12. Resident along the 3rd fairway of Pusch Ridge. Afraid developers will build on the
course. Asks for experience/reassurance from the team.
13. Resident along the 3rd hole of Pusch Ridge. Believes the course had been mis-managed
by the resort. Closing for the summer hurts the community perception of its accessibility.
Clear need for marketing. Could attract school golf teams by offering discounts, but may
need to raise prices first to make this financially feasible. Describes the course as too
much of a hidden gem – a great course but underutilized because it is under-marketed.
Asked if it could be possible to drill a well to reduce water costs. Urges the team to save
the property by increasing revenue through quality improvements, not reducing the
course to cut costs.
14. Concerned that reconfiguration will disrupt private streets in the communities.
15. Resident along the 8th fairway of Pusch Ridge. Wants to see more discussion regarding a
possible driving range. States that the course needs a better warm-up area, particularly to
cater to an older demographic (e.g. practice sand/chipping area like the course previously
had). Raises the possibility of just having a practice net in lieu of a full driving range.
States that the houses on Pusch Ridge were marketed as “patio homes,” which would
grant residents special discounts on golf (e.g. 20% off on weekdays) – feels that this
aspect has been ignored since the Hilton took over the property.
16. Urges the team to focus on the millennial segment of golf. Asks if a partnership with
Topgolf could be possible.
17. Does not live along the golf course and asks if another meeting will be hosted specifically
to hear from community members who do not reside along the courses. Believes this is
particularly important since the purpose is a community center accessible by all.
18. Asks whether the team has considered converting the courses into an executive format.
19. Resident along the 12th fairway of the Conquistador course. Believes the Overlook
occupies an amazing location but could be more successful if subleased out. States that
Troon has done a great job managing the course, reflected in excellent playing
conditions. Believes opening the driving range in the evening would make it more
accessible and popular.
20. Believes the X-9 concept for Pusch Ridge was not successfully marketed/executed.
21. Curious about the dirt parking lot at the entrance of El Conquistador, specifically its
ownership status and whether or not it will be incorporated into the plan.
22. F&B Manager at El Conquistador when it was owned by the Sheraton. Believes that
although the operation is supported by golfers during the day, there is little to no evening
activity due to poor marketing of the facility. The team needs to make it clear that the
public is welcome at the new community center.
23. Resident of Pusch Ridge for 30 years. Concerned about the lack of ADA compliance in
the facilities. Cites the use of the tennis shop to run golf as a major problem. Clear need
for a dedicated golf shop on the premises.
24. Asks whether the team has considered converting Pusch Ridge into a Par 3 course.
25. Cites Mesa Verde in Southern California as a precedent for turning around a poorly run
club by catering to millennials and improving F&B services.
26. Former Town Council member. Asserts that it will be troublesome if the Town attempts
to act as a real estate developer, particularly because expenditures over $500,000 require
citizen approval. Asks what role discounts/pricing controls could play in capturing
market demand (e.g. GolfNow).
27. Resident along the 14
th fairway of the Cañada course. Concerned that closing the course
over the summer will be ineffective and harmful due to high fixed costs.
28. Resident along the 8
th hole of Pusch Ridge. States that although the course was closed
from May through October for alleged “improvements,” none were actually seen on the
course, furthering its poor public perception.
29. Resident of Pusch Ridge who is curious about the fate of the X-9 concept. Asks how the
team will engage the Hilton to market the course despite no longer having an ownership
stake in the property.
30. A relatively new resident who lives just north of El Conquistador. Believes the facility is
crucial in attracting new residents and urges the team to develop a long-term vision for
the courses. Believes it is currently an outstanding facility but still has room for
improvement. Cites the core problem as marketing, leading to an identity crisis amidst
the transition from private to public. Asserts that there is clear upside potential for growth
at Pusch Ridge. Asks whether the character of the courses could become more distinct,
offers reducing water and turning Cañada into a links-style course as an example.
Another idea is to pre-sell rounds as punch-passes – this will be attractive to seasonal
residents in particular.
31. Resident of the Villages of La Cañada. Believes the team will need to capture millennial
interest to make the courses successful. States that the courses are currently unattractive
due to their strange configuration and deferred maintenance issues (e.g. piles of sand
along Cañada 11).
32. Head of a local HOA. Believes that collaboration between the golf courses and the Hilton
resort will be essential to their mutual success. The course has historically been
mismanaged, leading to its increasingly weak identity in the community. States that the
mountain backdrop to Pusch Ridge is iconic and unique. However, the reality is that the
supply of golf in the area exceeds reasonable demand. Asserts that FEMA restrictions at
Pusch Ridge may make conversion into non-golf uses problematic.