The URL can be used to link to this page

Home My WebLink AboutPackets - Council Packets (990)Oro Valley Community and Recreation Center and Golf Courses Next Steps 1 Presentation Outline Summary of Acquisition, Agreement Provisions and Major Assumptions Fiscal Year Milestones Summary of Financial Performance and Capital Investments Golf Course Consultant Report Town Manager’s Recommendation 2018 Suggested Next Steps Council Criteria for Reevaluation 2 Initial Acquisition FY 2014/2015 Town Council approved agreement with HSL to purchase former El Conquistador Golf and Tennis Club for $1M Facility included 45 holes of golf, 31 tennis courts, former country club/restaurant and fitness center, 6 racquetball courts and 2 pools Town Council adopted half-cent sales tax dedicated to supporting operations 3 Purchase and Sales Agreement Major Provisions Contractual Obligations Golf courses deed restricted for golf, open space or recreational activities Town must operate at least 18 hole course, or HSL has option to lease and operate, along with facilities to support course operation If Town discontinues golf at Pusch Ridge course, HSL given right to lease and operate Tennis facilities deed restricted for tennis operations with same option to lease if operations discontinued Town must retain qualified national/regional golf management company Resort/Town reservation partnership agreement with priority use by resort “El Conquistador” name must remain 4 Original projections predicted golf courses would break even after 5 years assuming investments made Initial Acquisition FY 2014/2015 5 5-Year Projected Investments — $2.8M Facility Conditions at Purchase — Building 6 Golf Course 10 year projected investments $6.4M 10-year projected capital costs of nearly $9.2 Facility Conditions at Purchase – Golf Courses 7 FY 2014/2015 Operations began in May Town Council amended budget, and Troon operated everything May-June until new fiscal year Previous private club pricing model changed to a public (attainable) pricing model. $37K spent on monument signage and IT-related costs 8 FY 2015/2016 Updates to restaurant and Sunset Room ADA ramp was installed Cart path resurface treatment Replaced pump station Resurfaced tennis courts (note: an annual expense) 9 FY 2016/2017 HVAC units and other energy efficiency projects Roof repairs Lifeguards transitioned from Troon to Town budget Consultant retained to provide recommendations on golf courses. Contract awarded in April 2017. Study completed in July 2017 10 FY 2017/2018 Town Manager recommends retaining 36 holes of golf and improvements at Community Center FY 2018/19 Budget approved with $6M in bond capacity for golf course and Community Center improvements. 11 Financial Performance – Contracted Operations 12 Financial Performance – Town Operations 13 Financial Performance – Overall Fund 14 Major Investments FY15/16 – FY18/19 15 Golf Courses 16 Golf Courses — Consultant Report Options 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 17 Summary of Consultants’ Report & Options 18 FY 2017/2018 Analysis El Conquistador and La Cañada golf courses Lacks natural 27 holes for effective reconfiguration Homes border all 45 holes 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 2/3 of daily play rounds played and 75% of daily play revenue collected during Nov 1 – May 1 peak season 19 FY 2017/2018 Analysis 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 20 FY 2017/18 Conclusions and Recommendations 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 21 Summary of Troon Analysis of Reports FY 2017/2018 22 FY 2017/18 Conclusions and Recommendations Relocate, reconfigure and shrink restaurant Maximize outdoor area with flex space Expand fitness area Add elevator Reconfigure main entry to grade General facelift Community and Recreation Center Building 23 Community and Recreation Center - Recommend Pause Town Council preliminary strategic direction includes community-wide parks and recreation needs assessment Assessment can help inform further engagement for future facility design/investments Council decision on golf courses also needed before new master plan finalized Recommend focus on golf courses first 24 Recommended Next Steps for Golf Course Reevaluation Establish Givens/Criteria with which to reevaluate/analyze options Develop options or range of options for Town Council discussion with pros/cons, financial projections, etc. Present in study session(s) as needed Town Council narrows down options (2-3) Engage community for input on narrowed options Develop robust engagement strategy Bring input to Council in study session(s) for final direction Develop implementation plan and get started 25 Potential Givens/Criteria Minimize sales tax subsidy to golf operation Evaluate one-time investments against long-term ownership/operations costs Broaden general public access to Town-owned acreage Be mindful of potential impacts to adjacent residents and property values Changes should model environmental stewardship Others? 26 Wrap Up and Discussion 27