pages: CityCouncil/2011-01-25.pdf, 5
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CityCouncil | 2011-01-25 | 5 | Councilmember deHaan inquired whether Kemper does not see 36 holes as feasible and is not interested in going in that direction, to which Mr. Blake responded that is correct in terms of Kemper investing the money. Councilmember Tam stated 108 new holes have been added to the region over the last 10 years; inquired whether there was an expectation that golf would be growing when the new courses were built. Mr. Blake responded real estate developers bought large amounts of land, needed open space and elected to build golf courses, which raises property values; building the courses had nothing to do with the economics of golf itself; 3,000 to 4,000 courses could closed [nationwide] to get the equilibrium back. Councilmember Tam inquired whether demand would increase enough to make having 36 holes during the 20 to 30 year period [of the lease]. Mr. Blake responded Kemper does not believe play will get back to peak levels for many, many years, if ever; stated the industry thought the baby boomers were going to play more golf; with the economy, people working more, and people having different interests, statistics show baby boomers are not playing as much as was anticipated; there are many issues, one of which is people think golf takes too much time and does not fit in the active, shorter segment lifestyle. In response to Councilmember Tam's inquiry whether Kemper believes the 2.5% growth assumption is realistic, Mr. Blake stated the location and product could drive that kind of growth with marketing. Councilmember Tam inquired whether the risk is on Kemper, to which Mr. Blake responded in the affirmative. Councilmember Tam stated when the lease with Kemper started in March, the City no longer collected the Return on Investment (ROI) and the reserve was a little more than $612,000; inquired whether depletion [of the reserve] has been due to decline [in play] and maintenance work. The Acting City Manager responded the City is still collecting the cost allocation, Payment in Lieu of Taxes (PILOT) and payment surcharge; stated the ROI was discontinued this fiscal year; the amounts in the current budget are $319,640 for cost allocation, $202,220 for PILOT, and $171,960 for the payment surcharge. The Recreation and Parks Director stated the fund balance varies widely due to the seasonal nature of the game; the amount is higher in spring than in winter, especially due to all the rain this winter; work had to be done on the cart chargers, the driving range fencing, and the retaining wall on Island Drive. Special Meeting Alameda City Council 3 January 25, 2011 | CityCouncil/2011-01-25.pdf |