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Agenda 03/14/2017 Item #11E03/14/2017 EXECUTIVE SUMMARY Recommendation to accept the report by Hunden Strategic Partners on the status of private/public golf courses in Collier County, and provide staff with direction regarding further pursuit of publicly funded golf courses in Collier County. OBJECTIVE: To update the Board on the current status of private/public golf courses in Collier County and considerations regarding the operation of publicly managed golf facilities. CONSIDERATIONS: Collier County and the Naples Area is frequently characterized as being the "Golf Capital of the World" with a reported 80 championship courses and having "more holes per capita" that any other community in the United States. Of these 80 there are both public and private courses available for enthusiasts to play this sport. An overview of the existing golf courses in Collier County is provided in the backup materials to this executive summary. Since the 1980s, the Parks and Recreation Division has reviewed the feasibility of owning, operating, and building a public golf course on several occasions. The concept was never further pursued due to a variety of factors, such as not wanting to compete with existing public and private courses, a business plan that revealed a negative cost/benefit, the purchase of a golf course under County consideration by a different entity, and the decision not to pursue a long-term lease of a public course due to negative cost/benefit. Parks and Recreation staff surveyed existing courses owned or operated by a public parks and recreation agency. Of a representative sample of 17 cities and counties surveyed, 10 managed a public course. Three of the respondents used a concessionaire to operate the course and pro shop, and operating expenses ranged from $2.45M to $9.2M annually with corresponding revenues ranging from $1M to $8.4M. The survey results and a summary of the annual net revenues associated with the cities/counties that operate golf courses are included in the backup materials for this executive summary. To further study national and regional trends for golf courses, Parks contracted with Hunden Strategic Partners to: Identify and document the present condition of golf facilities and infrastructure in Collier County Provide a report of that includes the participation and usage rates, a comparison to other counties of similar size, as well as national standards and trends for resident needs and long -term viability of public golf courses Identify opportunities to optimize current golf courses in Collier County Review and project demographic trends in golf for Florida, with special attention given to the Southwest Florida region Project future space/facility needs for public golf courses in Southwest Florida Provide analysis of the cost/benefits of providing public managed golf course in Collier County FISCAL IMPACT: There is no fiscal impact associated with this item. GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this item. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, raises no legal issue, and requires majority support for Board action. -JAK RECOMMENDATION: To accept the report from Hunden Strategic Partners, and provide staff with 11.E Packet Pg. 289 03/14/2017 direction for further pursuing publicly funded golf courses in Collier County. Prepared by: Barry Williams, Director, Parks and Recreation Department ATTACHMENT(S) 1. Overview of Collier County Golf Courses (DOCX) 2. Golf Course Revenues and Expenses (DOCX) 3. Florida Municipal Golf Course Survey (XLSX) 11.E Packet Pg. 290 03/14/2017 COLLIER COUNTY Board of County Commissioners Item Number: 11.E Doc ID: 2811 Item Summary: Recommendation to accept the report by Hunden Strategic Partners on the status of private/public golf courses in Collier County, and provide staff with direction regarding further pursuit of publicly funded golf courses in Collier County. (Barry Williams, Parks and Recreation Division Director) Meeting Date: 03/14/2017 Prepared by: Title: Administrative Assistant – Parks & Recreation Name: Miguel RojasJr 03/06/2017 1:57 PM Submitted by: Title: Division Director - Parks & Recreation – Parks & Recreation Name: Barry Williams 03/06/2017 1:57 PM Approved By: Review: Public Services Department Joshua Hammond Additional Reviewer Completed 03/06/2017 4:06 PM Public Services Department Amanda O. Townsend Additional Reviewer Completed 03/07/2017 3:56 PM Parks & Recreation Barry Williams Additional Reviewer Completed 03/07/2017 4:17 PM Parks & Recreation Ilonka Washburn Additional Reviewer Completed 03/07/2017 4:30 PM Public Services Department Hailey Margarita Alonso Level 1 Division Reviewer Completed 03/08/2017 8:29 AM Public Services Department Steve Carnell Level 2 Division Administrator Review Completed 03/08/2017 8:35 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 03/08/2017 8:44 AM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 03/08/2017 9:03 AM Budget and Management Office Ed Finn Additional Reviewer Completed 03/08/2017 10:07 AM County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 03/08/2017 1:27 PM Board of County Commissioners MaryJo Brock Meeting Pending 03/14/2017 9:00 AM 11.E Packet Pg. 291 11.E.a Packet Pg. 292 Attachment: Overview of Collier County Golf Courses (2811 : Private/ Public Golf Course Report) Revenues over expenses for select Florida Cities and Counties operating a golf course Municipality Annual Net Revenue Cost Recovery Cape Coral ($231,435) 91% City of Largo $50,000 105% City of Lakeland ($900,000) 64% City of Orlando $100,000 105% City of Pompano Beach ($2.043M) 59% City of Sarasota ($136,022) 95% Miami-Dade County ($800,000) 91% 11.E.b Packet Pg. 293 Attachment: Golf Course Revenues and Expenses (2811 : Private/ Public Golf Course Report) Municipal Golf Course Survey City of Cape Coral City of Ft Myers City of Largo City of Lakeland City of Tallahassee City of Orlando City of Pompano Beach OPERATIONS Operate public Golf Course Yes Yes Yes Yes Yes Yes Yes Who operates the course Parks Vendor Parks Parks Parks Vendor Parks Who operates the Pro Shop Parks Vendor Parks Parks Parks Vendor Parks Who manitains the course Parks Parks/Vendor Parks Parks Parks Vendor Parks Who operates food service Parks Vendor Vendor Vendor Vendor Vendor Vendor Operating Expenses 2,450,043 Would not provide 1,000,000 2,500,000 Will provide 1,800,000 4,861,275 Operation Revenues 2,218,608 Would not provide 1,050,000 1,600,000 Will provide 1,900,000 2,889,311 Net Profit (231,435)Exp higher than Rev 50,000 (900,000)Will provide 100,000 (2,042,930) Long Term Debt Load 0 0 0 0 0 0 0 Annual Capital Project Improvements variable variable variable variable variable variable variable FEES Memberships Available Yes Yes No Yes Yes Yes Yes Membership Fees $1450*$1300*N/A $910*$720*$2199* $1400* Playing Fees $30 - $85**$32 - $75 $17 - $26 $22 - $39**$15 - $24**$22 - $65**$24 - $65** Greens Fees Included Included Included Included mostly Incl Included $10 Cart Fees $20 / Included $19.50 $10 $18 $16 $11 $11 FACILITIES Number of Golf Course Locations 1 2 1 1 2 1 2 Total Number of Courses 1 2 1 3 2 1 2 9 hole 0 0 0 3 1 0 0 18 hole 1 2 1 0 1 1 2 Driving Range 1 0 0 1 2 1 0 Mini Golf Course 0 0 0 0 0 0 0 Club House 1 0 0 1 1 1 2 Pro Shop 1 2 1 1 2 1 2 Restaurant 1 1 1 1 1 1 2 OTHER ACTIVITIES Instructional Services Yes Yes Yes Yes Yes Yes Yes Tournaments Yes Yes Yes Yes Yes Yes Yes Org Activities - Mixers, Leagues,etc Yes Yes Yes Yes Yes Yes Yes Foot Golf No No Yes No No No No * Price is Single Person, other memberships available. **Playing Fees not paid by members Page 1 of 3 11.E.c Packet Pg. 294 Attachment: Florida Municipal Golf Course Survey (2811 : Private/ Public Golf Course Report) Municipal Golf Course Survey OPERATIONS Operate public Golf Course Who operates the course Who operates the Pro Shop Who manitains the course Who operates food service Operating Expenses Operation Revenues Net Profit Long Term Debt Load Annual Capital Project Improvements FEES Memberships Available Membership Fees Playing Fees Greens Fees Cart Fees FACILITIES Number of Golf Course Locations Total Number of Courses 9 hole 18 hole Driving Range Mini Golf Course Club House Pro Shop Restaurant OTHER ACTIVITIES Instructional Services Tournaments Org Activities - Mixers, Leagues,etc Foot Golf City of Sarasota Manatee County Miami Dade County Charlotte County Hillsborough County Lee County Pasco County Yes Yes Yes No No No No Parks Vendor Parks N/A N/A N/A N/A Parks Vendor Parks N/A N/A N/A N/A Vendor Vendor Parks N/A N/A N/A N/A Vendor Vendor Vendor N/A N/A N/A N/A 2,687,492 Would not provide 9,200,000 N/A N/A N/A N/A 2,551,470 Would not provide 8,400,000 N/A N/A N/A N/A (136,022)Rev higher than Exp (800,000)N/A N/A N/A N/A 0 0 (900,000)N/A N/A N/A N/A variable variable variable N/A N/A N/A N/A No No No N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A $17 - $47 $19 - $54 $18 - $225 N/A N/A N/A N/A Included Included Included N/A N/A N/A N/A Included Included $8 - $25 N/A N/A N/A N/A 1 2 5 N/A N/A N/A N/A 3 2 6 N/A N/A N/A N/A 1 0 2 N/A N/A N/A N/A 2 2 4 N/A N/A N/A N/A 1 2 3 N/A N/A N/A N/A 0 0 1 N/A N/A N/A N/A 1 2 4 N/A N/A N/A N/A 1 2 5 N/A N/A N/A N/A 1 2 5 N/A N/A N/A N/A Yes Yes Yes N/A N/A N/A N/A Yes Yes Yes N/A N/A N/A N/A Yes Yes Yes N/A N/A N/A N/A No No Yes N/A N/A N/A N/A Page 2 of 3 11.E.c Packet Pg. 295 Attachment: Florida Municipal Golf Course Survey (2811 : Private/ Public Golf Course Report) Municipal Golf Course Survey OPERATIONS Operate public Golf Course Who operates the course Who operates the Pro Shop Who manitains the course Who operates food service Operating Expenses Operation Revenues Net Profit Long Term Debt Load Annual Capital Project Improvements FEES Memberships Available Membership Fees Playing Fees Greens Fees Cart Fees FACILITIES Number of Golf Course Locations Total Number of Courses 9 hole 18 hole Driving Range Mini Golf Course Club House Pro Shop Restaurant OTHER ACTIVITIES Instructional Services Tournaments Org Activities - Mixers, Leagues,etc Foot Golf Pinellas County Polk County Sarasota County No No No N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Page 3 of 3 11.E.c Packet Pg. 296 Attachment: Florida Municipal Golf Course Survey (2811 : Private/ Public Golf Course Report)