Loading...
HomeMy WebLinkAboutPackets - Council Packets (681)Oro Valley Community Center Next Steps Mary Jacobs, Town Manager Rob DeMore, President, Troon Prive 1 Brief Background 2015 - Oro Valley began Community Center operations Includes former country club/restaurant, fitness center, 6 racquetball courts, 45 holes of golf, 31 tennis courts at 2 locations, and 2 pools Established fund for operations; dedicated $.005 sales tax 2016 - $2.7 million in capital improvements were made Updated restaurant, Sunset Room and fitness lobby area Replaced pump station HVAC units and other energy efficiency projects Performed roof repairs Resurfaced tennis courts 2017 – Consultant retained to provide options on golf courses and food/beverage 2 Community Investment and Fund Performance 3 Community Investment and Fund Performance 4 Evaluation Process – Goals/Givens Your Voice, Our Future General Plan and Council Strategic Plan provide overarching direction Enhance access and maximize offerings to residents Capital improvements should maximize revenue increases and minimize investments Golf course changes should model environmental stewardship Community Center Fund should cover direct operational costs, striving to free up revenues for future maintenance/improvements Adjacent resident concerns taken into consideration 5 Evaluation Process – Notable Trends Community Center Fund Financial Performance Improved substantially since start of operations in May 2015 Current fiscal year trending to match revenues with expenses Fitness Memberships Fitness memberships increased 30% since November 2015 Facility usage is up 17% in that same timeframe 6 Evaluation Process – Notable Trends Cont. Golf Non-member, outside golf rounds up 25% in last two quarters of 2017 Estimated to reach at least 25,000 by end of fiscal year, up from 23,000 last two fiscal years Nearly 50% of total rounds played are non-members Total rounds expected to exceed FY 2015/16 levels this year 7 Expanded Resident Opportunities Fitness class participation is nearing capacity Fitness memberships and usage have increased Summer camps for children expanded BASIS Oro Valley students Parkinson’s Wellness Recovery gym (PKR!) Community programs/events like Halloween Spooktacular and Drive-In on the Driving Range movies 8 World Class Tennis Community Center courts open to all classic fitness members Premium membership opens access to Pusch courts Non-premium courts nearing capacity Tournaments and Sports Tourism 9 Overlook Restaurant Daily service to all Community Center users Special marketing events Cater external corporate/private events RFI did not result in privatization interest Expenses expected to exceed revenues by $100,000 this fiscal year 10 Community Center - CONCLUSIONS Overlook Restaurant model is no longer viable Food/beverage should be relocated downstairs Repurpose former restaurant Relocate fitness equipment/exercise classrooms upstairs More than doubles fitness space with better layout Reconfigure downstairs Designated/improved community and multi-use space Public access point change to northwest entrance Handicap accessibility improved 11 Community Center - CONCLUSIONS Reconfigure/expand Garden Café downstairs Open kitchen model bar and grill More limited menu Indoor and outdoor seating Limit catering to golf-related needs Private events can select outside caterer (except alcohol) Expect to cover all costs with change in model Improve outdoor performance/gathering space Enhanced cultural/community event programming Remove small pool and repurpose space 12 Golf Courses – Consultant Report El Conquistador and La Cañada Golf Courses Option A: 36-hole reconfiguration Option B: 27-hole reconfiguration Option C: 18-hole reconfiguration Pusch Ridge Option A: “Dirty Dozen” 12-hole Par-3 reconfiguration Option B: Repurpose course 13 Summary of Consultants’ Report & Options 14 Source: National Golf Foundation Consulting, Inc. – El Conquistador Golf & Tennis (ECGT) Report – page 8 Consultants Reports Key Conclusions “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.” “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…” 15 Golf Courses Analysis Process Reviewed the Consultant Report Joint review of the findings with the Town Staff, Troon analysts, civil engineer, design teams Excellent, thorough report Supplemented the analysis with current behavioral, market, and fiscal trends Holistic approach armed with the multiple data points to arrive at this conclusion Primary objectives Improve/preserve the investment of the Town with well-thought-out investment strategy Succinctly lay out a data-based recommendation and its rationale 16 Golf Courses - Analysis El Conquistador and La Cañada golf courses Lacks natural 27 holes for effective reconfiguration Two, 18-hole courses in a single location create a competitive opportunity 36-hole course provides market differentiation to support community, tourism and membership play 17 Golf Courses – Analysis Cont. Pusch Ridge 9-hole course Operates as satellite course with no dedicated staff One consistent weekly league Rounds have been stagnant or decreased Short executive course design not meeting initial goals Only Town-operated course on potable water Irrigation systems on all courses 25-30 years old 18 Summary of Troon Analysis of Reports 19 Golf Courses – CONCLUSIONS Retain both El Conquistador and La Cañada courses Replace both irrigation systems No reconfiguration except maximizing turf reduction Cease operating 9-hole Pusch Ridge course Explore transition of operation to Hilton El Conquistador If not feasible, develop alternate use plan in partnership with HSL, Hilton Resort and input from HOA Continue operating course at existing level of service until plan is finalized 20 Capital Investments Required 21 Expected Outcomes – Two Years 15-20% reduction in water use, est. $150,000 annual savings 15-20% increase in fitness memberships, est. $42,000-$56,000 annual revenue increase 8-10% increase in number of golf rounds played at 36 holes, with estimated $100,000 increase in annual revenue $33,000 annual savings from removal of the small pool $75,000-$160,000 annual savings - Pusch Ridge Opportunities to expand programming for underserved residents, enhance arts and cultural programs Opportunities to increase fees and memberships in future 22 Expected Outcome – Five Years* 23 Wrap Up 24