The URL can be used to link to this page

Home My WebLink About02212012 GOLF COURSE PRESENTATIONCity of Virginia Beach Golf Course Operations 2009, 2010, & 2011 Performance Update Kevin Bennington, Golf Course Coordinator February 21, 2012 The Beginning of a New Day in Golf Five Courses -Three Partners 1.Bow Creek, Kempsville Greens and Red Wing lake Golf Courses Parks and Recreation provides contract oversight. ? 2.Stumpy Lake Golf Course Inc. Parks and Recreation provides contract oversight. ? 3.Virginia Beach National Golf Club Virginia Beach Development Authority partnered with ? Virginia Beach Golf Clubs LLC. The Department of Economic Development provides financial oversight. Parks and Recreation provides facility and maintenance assistance. The Benefits of Public/Private Partnerships are Clear In the first 12 months of the three course agreement, ? Virginia Beach Golf Management provided the City of Virginia Beach with $342,152 in revenue based on rental income and usage taxes. In the past three years, Stumpy Lake Golf Course provided ? an average of $131,433 annually to the City of Virginia Beach in lease rent and usage taxes. In the past three years, Virginia Beach National Golf Club ? provided an average of $237,885 annually to the City of Virginia Beach in lease rent and usage taxes. Virginia Beach Golf Management The City of Virginia Beach entered into a lease agreement ? with Virginia Beach Golf Management LLC. for the operation and management of Bow Creek, Kempsville Greens and Red Wing Lake Golf Courses on February 1, 2011. This is a ten year agreement with the possibility of two 5-year renewals. Virginia Beach Golf Management will pay the City of Virginia ? Beach rental of $150,000 or 10% of gross revenue, whichever is greater. Virginia Beach Golf Management Virginia Beach Golf Management committed to investing ? $552,500 to provide improvements to Kempsville Greens and Red Wing Lake Golf Courses Fifty percent of the rental income generated with this ? partnership is placed into a golf course infrastructure and improvement CIP account. City of Virginia Beach and Virginia Beach Golf Management Performance Total Golf Rounds Golf Course200920102011 Bow Creek29,75928,11123,984 Kempsville Greens30,22327,25732,536 Red Wing Lake30,88432,30740,797 Total90,86687,67597,317 City of Virginia BeachGolf Operations Total Gross Revenue GolfCourse200920102011 BowCreek$557,938$532,070$554,242 KempsvilleGreens$492,876$516,769$715,958 Red Wing$878,647$927,792$1,360,547 Total$1,929,461$1,976,631$2,630,747 Profit/Loss GolfCourse200920102011 Bow Creek$35,728$31,008$39,008 Kempsville Greens($128,781)($194,003)$42,339 Red Wing$146,508$271,723$101,552 Total$53,455$108,728$182,899 Virginia Beach Golf Management Course Improvements In the first 11 months of operation VBGM has spent ? $472,000 to improve Kempsville Greens and Red Wing Lake Golf Courses. Kempsville Greens –cart path ? renovation and replacement, tree work, new fence at maintenance facility Red Wing Golf Course –clubhouse ? renovation Stumpy Lake Golf Course Stumpy Lake Golf Course was purchased by the City ? of Virginia Beach in 2001. Parks and Recreation has negotiated a lease ? agreement with Stumpy Lake Golf Course Inc. Stumpy Lake Golf Course cont’d. The current agreement with Stumpy Lake Golf Course began on ? January 1, 2008 and will end December 31, 2017. The agreement includes the possibility of two 5-year ? extensions. The City will receive rental for the lease of the course based on ? 10% of the gross income up to $900,000 and 12% above the $900,000 in a calendar year. Stumpy Lake Golf Course cont’d. Three percent of the first $900,000 is placed in a dedicated ? account reserved for Capital Improvements for the Stumpy Lake Golf Course. Upon entering into the agreement, Stumpy Lake Golf Course LLC. ? agreed to invest $545,000 in course and infrastructure improvements within the first two years. In addition, Stumpy Lake committed to a total of $250,000 in ? improvements by the end of the contract. Stumpy Lake Golf Course 200920102011 GolfRounds33,92734,34040,315 Gross Revenue$1,019,106$1,032,594$1,134,328 Rentpaid to the City$97,155$104,959$116,119 Taxespaid to the City$23,492$24,420$28,155 InfrastructureRe-investment from $656,860$425,710$11,668 Partner Stumpy Lake Golf Course Improvements New Toro Golf Course Irrigation System Stumpy Lake Golf Course Clubhouse Renovation Cart Wash Down Area Virginia Beach National Golf Club Virginia Beach Development Authority entered into ? operational agreement for the Virginia Beach National Golf Club in 2007. The initial term of the Virginia Beach National Golf ? Club agreement was for 4 years and began April 1, 2007. The agreement has been amended to extend through ? December 31, 2015 with the possibility of one 2-year extension. Virginia Beach National Golf Club The Virginia Beach Development Authority will ? receive 10% of the gross revenues as rent for the Virginia Beach National Golf Club: Fifty percent of rental income is • placed in a CIP account for improvements to the Virginia Beach National Golf Club. Profit sharing of 25% of net income • over $100,000 per year. Virginia Beach National Golf Club 200920102011 GolfRounds26,11525,99030,853 Gross Revenue$1,773,690$1,621,586$1,847,923 Rentpaid to City$192,553$155,723$198,355 Taxespaid to City$57,883$49,468$59,674 InfrastructureRe-investment from $19,620$21,920$16,380 Partner Total Amount of Improvements Provided to City of Virginia Beach by Partners Golf Course200920102011 Bow Creek Golf CourseNANA$0 Kempsville Greens Golf CourseNANA$187,342 Red Wing Lake Golf CourseNANA$284,402 Stumpy Lake Golf Course$656,860$425,710$11,668 Virginia Beach National Golf Course$19,620$21,920$16,380 TOTAL OF FIVE COURSES$676,480$447,630$499,792 We are Heading in the Right Direction with Public/Private Partnerships for our Municipal Golf Courses The partnership with Virginia Beach Golf Management has ? increased gross revenue by $650,000 in the first 11 months. The past three years, our partners have provided over $3 ? million in revenue and improvements to the City of Virginia Beach. These public/private partnerships will ensure that self ? sustaining, well maintained golf courses will remain available for the community’s enjoyment. Any Questions?