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Town-Owned Golf Courses
July 24, 2019
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Initial Acquisition FY 2014/2015
Acquired former El Conquistador Golf and Tennis Club for $1M in December 2014. Began operating May 2015.
Half-cent sales tax adopted to support operations and capital
Facility included 45 holes of golf, 31 tennis courts, former country club/restaurant and fitness center, 6 racquetball courts and 2 pools
Assumed 5-year operating contract with Troon
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Initial Acquisition FY 2014/2015
Initial projections predicted break-even after 5 years
Assumed $2.8M in capital improvements
Assessment projected $9.2M in capital investments over ten years, of which $6.4M for golf courses
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Contractual Obligations
Golf course use restrictions
Golf discontinuation
Golf course operator
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Financial Performance – Contracted Operations
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Golf Courses – 2017 Consultant Options
Conquistador and Cañada 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
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2019 Review Process
January Town Council Study Session
February Town Council Listening Session
Executive Sessions
Staff Analysis and Updated Projections
Community Input, Ideas and Discussion
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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
Towns Discussed Givens/Criteria
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2019 Staff Analysis and Options
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Overall Assumptions for Operations Projections
Based on first full year of operations after investment
Irrigation replaced/course refurbished
Pro shop operations included
Food & beverage and tennis excluded
Pusch Ridge course not included
Cost ranges reflect options and projection margin
Community Center not included
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Capital Investment Assumptions
Golf course irrigation at end of useful life
$1.9M per 18 holes for irrigation, turf reduction and refurbishment. Consultant estimates higher.
Natural open space $14,800 - $20,000 per acre
Public park space $50,000 - $100,000 per acre
Irrigated turf: 64.5 Cañada, 73.5 Conquistador
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Natural Open Space Examples
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Natural Open Space Examples
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Public Park Space Examples
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Public Park Space Examples
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36-Hole Option – Pros and Cons
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36-Hole Option – Projected Sales Tax Support
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27-Hole Option – Pros and Cons
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27-Hole Option – Projected Sales Tax Support
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18-Hole Option – Pros and Cons
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18-Hole Option – Projected Sales Tax Support
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No Golf/Open Space & Recreation – Pros and Cons
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No Golf – Projected Sales Tax Support
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Pusch Ride 9-Hole Course
No dedicated staff
Overhead absorbed
Projected $200,000 - $240,000 annual tax support
Estimated capital investment $900,000
Consultant “Dirty Dozen” option $3.1 M
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