pages: CityCouncil/2011-01-25.pdf, 4
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CityCouncil | 2011-01-25 | 4 | conditions are consistently kept, Kemper believes play can come back; clearly, the golf industry is not well. Councilmember Johnson stated things are not going well in the economy; 2.5% growth might be aggressive; inquired what would happen if the increase is not met. Mr. Blake responded Kemper is taking the operating risk; stated location tends to be a big driver; the location is good; Kemper has to get the golf course in top condition and make improvements to compete in the market place. Councilmember Johnson stated increases in green fees should not be relied upon. Councilmember deHaan stated Kemper is proposing $5 million in capital improvements for 27 holes and $8 million for 36 holes; stated the amounts do not equate and he has problems with them. Mr. Blake stated the $8 million was from the NGF study and included major renovations of changing holes and building new greens. Councilmember deHaan inquired what the real capital improvement would be for 36 holes, to which Mr. Blake responded Kemper does not believe that 36 holes work because there is not enough demand; Kemper can only afford to spend around $5 million based on the number of rounds and revenues to make economics work. In response to Councilmember deHaan's inquiry whether the contract would be for 30 years, Mr. Blake stated the deal would be for 20 to 30 years; the number of years has not been negotiated. Councilmember deHaan inquired whether Kemper would invest the $5 million upfront, to which Mr. Blake responded in the affirmative. Councilmember deHaan inquired how long improvements would take, to which Mr. Blake responded hopefully, two years, but possibly 3 years. Councilmember deHaan inquired whether Kemper would spend $5 million for 36 holes, to which Mr. Blake responded Kemper does not believe 36 holes is an option and does not have an interest in doing 36 holes; stated Kemper has an interest in spending $5 million to renovate 27 holes because Kemper believes the course would be better off with 27 good holes; Kemper does not believe $5 million can be spent on 36 holes; the demand for 36 holes is not there; the issue is as much supply and demand as anything else. Councilmember deHaan inquired whether the City has an analysis of the spreadsheets Kemper provided, to which Mr. Blake responded in the affirmative; stated Kemper prepared 6 scenarios and there were numerous meetings [with City staff] on the scenarios. Special Meeting Alameda City Council 2 January 25, 2011 | CityCouncil/2011-01-25.pdf |