pages: CityCouncil/2012-03-06.pdf, 5
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CityCouncil | 2012-03-06 | 5 | Vice Mayor Bonta inquired whether the capital improvement fund plans for KemperSports and Greenway Golf would be sufficient to avoid problems that the Golf Course faces today, to which the City Manager responded barring any unforeseen, catastrophic event, the cap should be more than enough once the $6 million in improvements have been completed. Councilmember Tam inquired whether with one option [presented in the staff report] Council has a choice in operator and the other option Council does not. The City Manager responded in the affirmative; stated staff recommends negotiating with KemperSports as part of the land exchange option; however, Council has the prerogative to choose differently. Councilmember deHaan stated last weekend's rounds were equal if not better than rounds during the summer; marketability could be hampered by shortening the Jack Clark Course; the future lies in longer courses. Councilmember Johnson inquired whether there would be a minimum Return on Investment (ROI). Mr. Sams responded the ROI was 15%-18% at one time, which is no longer feasible; stated ROI's are in the single digits now; no one is lending for golf courses these days; revenues generated in the first five years would pay for improvements; the City would receive minimum rent of $50,000 to $75,000 per year [during said time]; once improvements are completed, a percentage of rent could be paid up to 12%, which would be $300,000 to $400,000. Councilmember Johnson stated analyzing numbers is critical; stated money spent on the Golf Course would depend upon operating revenue. Councilmember Johnson inquired why both options do not have a choice for two operators. The City Manager responded in April, 2011, Council looked at the exchange as a package with KemperSports and HBIA; stated the proposal was intertwined; Greenway Golf would be starting from scratch; Council would not have to abide by the recommendation. Councilmember Tam left the dais at 8:30 p.m. and returned at 8:35 p.m. Vice Mayor Bonta left the dais at 8:32 p.m. and returned at 8:33 p.m. Opposed to shortening the South Course: Alameda High Women's Golf Team. Provided a history of the course: Glen Van Winkle, Alameda. Regular Meeting Alameda City Council 5 March 6, 2012 | CityCouncil/2012-03-06.pdf |