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HomeMy WebLinkAboutGolf Board - Minutes - 02/13/1991CITY OF FORT COLLINS CULTURAL, LIBRARY, AND RECREATIONAL SERVICES GOLF BOARD MINUTES: Regular Meeting of February 13, 1991 The meeting was called to order at 7:30 p.m. by Board President Roger Sample. All Board members were present. Agenda Review: There were no additions or changes to the printed agenda. Minutes: On a motion by Terry Gilmore and seconded by Dick Zubradt the minutes from the Regular Meeting of January 16, 1991 were approved unanimously (7:0). Citizen Participation: No citizen participation. Collindale Restroom Protect Jerry P. Brown reviewed the information provided at the last meeting and introduced Civil Engineer Craig Foreman from the Park Planning and Development Division, who brought site drawings to show the Board. If we make the changes suggested (elimination of stalls in restrooms) at last Board meeting the total cost for the project still is around $26,200. Questions were raised as to why handicapped stalls were in a restroom on a golf course, and it was noted that it is the law to have handicap accessibility at public facilities, and that handicapped individuals in special carts do play golf. Craig then presented, for the Board's approval, different styles of cement blocks that could be used in construction. Light, rough face brick was decided on. There was some discussion on the style and types of flooring that could be used and questions were raised on possible vandalism to the structure. There will be a graffiti preventative coating added to the cinder blocks used in constructing the restroom and the floor will have a rougher finish that will work well with spikes on golf shoes. Craig also reported that the project is still on schedule and looks to completion of the project by June 1, 1991. After further discussion, it was then moved by Al Bednarz and seconded by Steve Jouard that acceptance and approval be made of the Restroom Project at Coll indale Golf Course. The motion passed unanimously (7:0). Thanks were expressed to Craig Foreman for his efforts on this project. Review of SouthRidge Sale Information and a Possible Recommendation on the Sale Jerry reviewed the history on the sale of SouthRidge. Various options were discussed early in the process; shifting burden of costs to golfing community, investigate sale of SouthRidge, and running SouthRidge by the City (including pro shop, concessions, food service, etc.). By direction, staff proceeded putting together a bid package which was sent out across the country, also to Japan and Spain. On December 7, 1990, four sealed bids were opened, and none received met bid specifications. Council was asked where to proceed from that point. Council members met with Mike Powers and Jerry. A majority of members said to begin negotiations with the two cash bidders, and a negotiated proposal process was started. Packages were sent to all groups who initially expressed interest with the best offer from negotiations being taken to Council. Golf Board Minutes February 13, 1991 Page 2 On February 7, three proposals were received, opened, and reviewed by staff. After all factors were weighed, it was determined that the best bid was a $3.2 million offer from Accent Resources. This proposal is being recommended by staff to Council. Council then can review and select any option they see fit; they also have the option to not choose any of the proposals. Jerry then reviewed the proposal that will be submitted to Council for their decision (Regular Council Session on February 19, 1991). Included in the sale were conditions that the course has to remain public with the provision that the City can get the course back if it is not kept public. Also, no fee restrictions were included as part of the sale. Future City Council members can end this agreement, and approve other development. Also included in the packet is a letter from Bill Neal, Wheeler Realty, who is representing Accent. (Bill was present for questions on this issue during the discussion period). Roger Sample thanked Jerry for the extremely complete history of the SouthRidge issue. Roger then stated there are two issues the Golf Board should consider. First, if we should really sell SouthRidge, or keep it as an asset of the City. Second, Roger questioned the internal rate of return of 1.1% from 1983 to 2002. Jerry said the $3.2 million cash that the City would receive would be put into a bank escrow account and draw interest, from which payments can be made. Roger expressed that there will be future needs for golf courses. Construction in the future will be much more than the current debt on SouthRidge. Several Board members questioned the deed restrictions and wondered if it is enforceable as it was written now and presented in the bids? Concern was raised on definition of a public golf course, i.e. 51% etc. Jerry stated that the interpretation is open as to how much time would be open to the public and how much could be charged for play by the public. There can be no restrictions by the City on the amount of money charged by the potential purchasers. Dick Zubradt feels the Board can either agree with the staff recommendations or present to Council a different opinion than the staff, and then make our own recommendation. Terry Gilmore suggested we are not selling an asset, rather an area to consider is if the asset is owned by the public. If the sale of the golf course occurs, and having it remain open to the public, he feels it is still an asset and the City has eliminated a debt. However, he needs assurances that the course will remain public. Roger stated that the decisions seem to be made without consultation from the public. Cathy Fromme said she has talked to citizens this past month and their concerns are varied. The City has not had a chance to operate course; there may be an additional burden placed on Collindale; and what if water is unavailable to the purchaser? What would the City's responsibility be? Could Councils in the future vote to change the restrictions? With all these concerns, is this the right time to be doing this? Jerry noted the City Attorney says Councils in the future can change the agreements made. Dan Preble asked what if green fees are raised above what the public can pay? Al Bednarz echoed the previous remarks, and he brought up the community value element, and he would like to know how well the City can operate SouthRidge? Golf Board Minutes February 13, 1991 Page 3 Citizen Kathleen Bohmont (a member of the Golf Board in the early in 1980's) said the City was aware of possible debts when SouthRidge was built. Citizen Fred Friedrick built his home in the SouthRidge area. He was hoping that this course would become part of the City system. He asked why is there such an urgency now to sell at this point and not review everything at a future date? Residents in the area of SouthRidge feel the course is needed by the City. Why sell now when we may have to replace it down the road? SouthRidge is already used by the School District, and he feels it would be wise to keep it. City Park Nine Women's Golf Association President Evelyn Lawrey believes that since City Park Nine and Collindale are taken care of 100%, the precedent has been set. Let the City have a chance at SouthRidge. Citizen George Stager, a SouthRidge resident, compared Loveland (half the size of Fort Collins) has the same number of courses as Fort Collins. He occasionally plays in Loveland. "..When you play in another town you don't just play golf, there is lunch, drinks, shopping, etc. I play with people from Cheyenne, Laramie, and other cities who come down during the winter months. Down the line $3,700,000 is pie - in -the -sky. Realistically we are looking at $6,000,000 to $10,000,000 to construct in the future.." He very strongly recommends to the Golf Board that SouthRidge be kept. Fred Friedrick stated that the job of marketing golf has not been accomplished. Collindale Assistant Superintendent Paul Brauer said we need to look at the City having to buy another course in the future. By then SouthRidge will have mature landscaping and a new course would be starting from square one. Collindale Men's Golf Association President Henry Fry noted that there is a potential at SouthRidge to add 9 more holes and make it a 27 hole course. Land is available to the south. Why sell an asset now that will appreciate over the next few years? George Stager noted that SouthRidge has covered its operating costs. Citizen Fran Howard presented copies of a newspaper story that she sent to Council members showing how golf is on the rise. Cathy Fromme would like to give Bill Neal an opportunity to talk to the Board. Terry Gilmore questioned Bill and stated he would like to hear the plans for the use of SouthRidge by Accent. Bill Neal stated Accent Resources, Inc. of Fort Collins is investment group (Japanese). Private or public is not an issue, it will remain public. He feels the private sector can act faster to community needs. The group he represents is very concerned about how they will be received in the community. Cathy Fromme asked if City Council chooses not to accept the offer, would this group be interested in building a new course? Also, what other courses are they involved with? Bill stated primarily Accent's interests are in Japan. Kent Goodman has agreed to manage the course for an initial 10 years. Roger Sample thanked Bill for being present to answer questions. He wants to be careful in stating that the views presented tonight are not necessarily those of the City of Fort Collins, however the golfers are one part of the community and there are many other parts to consider. He would like to get to a final solution. He again asked do we think disposition of the asset is appropriate? Terry Gilmore stated he has tried to talk to as many people as possible this past Golf Board Minutes February 13, 1991 Page 4 month. He has heard many different opinions (almost as many as the number he talked to). He is having a very hard time deciding which way to go. He feels prices will be regulated by the availability of golf. This is a very difficult issue. He also said we should not be afraid of selling. Al Bednarz feels the City should have an opportunity to operate SouthRidge, then in a couple of years, see what the situation is at that time. The City needs to run this course for a while. Steve Jouard follows the thought process of Terry Gilmore. He also is concerned about a sale, but at what costs? His overriding concern is how it will affect golf in Fort Collins? He is concerned that the course remain public and that we prohibit any type of private membership. He does favor privatization. He feels the full picture of the debt should be looked at, not just from today forward, but expenses incurred prior to today. To summarize, he is not concerned about a sale, but a sale at what cost? What will the City be giving up in the future? Dan Preble said we should keep in mind the students from PR-1 and the play time the district golf program requires. Roger summarized four possible options, as follows: 1) the City sells to Accent, 2) the City sells to someone else, 3) a sale in the future, 4) no sale at all. Steve Jouard then moved that the Golf Board go on record as not being in support of the staff recommendation on the sale of SouthRidge to Accent Resources, but to recommend the null alternative at this time. Al Bednarz seconded. Roger Sample said at this point in time he would not be in favor of a sale. The City needs the opportunity to run and manage it. Dick Zubradt says "no" to a sale. He would like to see the City run SouthRidge first. We have been doing a good job with the money. He realizes the potential liability. Terry Gilmore supports the motion and would still like to see the deed restriction language cleaned up and see additional guarantees. He feels this opens the avenue to build a new course in the future. Steve Jouard will vote a qualified Yes. We need to get into SouthRidge to operate it to see what revenues can be generated. He would not foreclose a sale option in the future. Dan Preble feels the City should have opportunity to run SouthRidge. Cathy Fromme would like to see the private sector build the next course; and Al Bednarz says no sale. After further discussion the Board voted unanimously (7-0) to approve the motion to not sell SouthRidge and recommend the null alternative to City Council at this time. A break was taken at 9:00 p.m. and the meeting reconvened at 9:10 p.m. Approval of 1990 Golf Board Annual Report Jerry P. Brown requested any changes to the 1990 Golf Board Annual Report as sent to Board members earlier. Terry Gilmore moved and Cathy Fromme seconded that the 1990 Golf Board Annual Report be approved as prepared. Carried (7:0). Golf Board Minutes February 13, 1991 Page 5 Board Members and Staff Comments/Reports - Al Bednarz suggested that we make a strong presentation of the Board recommendation on SouthRidge to City Council. - Cathy Fromme appreciates the time and effort everyone put in on the SouthRidge issue. - Steve Jouard asked how does the Covenant Immunity Act affect other areas and City property? Staff will review. - Dick Zubradt will be sending a list of high school students who will be at the courses in the fall. - Congratulations and best wishes to Cathy Fromme for her Council bid. - Jerry P. Brown presented a packet on an easement for the Fort Collins/Loveland Water District at SouthRidge to the Board. He said Council has passed it on first reading and wants to know if the Board objects. There was no objection. - The semi-final 1990 revenue and status reports were submitted to Board members earlier. Basically there was an $86,000 "profit" in revenues. At this time, Jerry feels that there will be no fee changes for 1992. - Terry Gilmore mentioned the letter from Barbara Allison and he is concerned about some of her comments being prejudicial about Japanese. The meeting was adjourned at 9:35 p.m. Respectfully submitted, Alyce Nierman, Golf Division Secretary III Meeting Attendance Board Members Staff Guests Roger Sample Mike Powers Paul Lawrey Al Bednarz Jerry P. Brown Evelyn Lawrey Cathy Fromme Joe Nance Kathleen Bohmont Terry Gilmore Randy Bonneville Bill Neal Steve Jouard Alyce Nierman George Stager Dan Preble Craig Foreman Henry Fry Dick Zubradt Fran Howard Fred Friedrick Jeff Pavlick Barbara Pavlick