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DEPT. HD. AB# 17,405
MTG. 12/09/03
DEPT.REC & FIN
CARLSBAD CITY GOLF COURSE
FINANCING OPTIONS
CITY MGR
RECOMMENDED ACTION:
It is recommended the City Council ADOPT RESOLUTION NO. 2003-324
direction for the proposed Carlsbad City Golf Course Project to:
providing
Proceed with the Carlsbad City Golf Course Project, Development Option 2,
which defers the construction of the permanent clubhouse facility to the future;
Proceed with tax exempt financing for the Carlsbad City Golf Course Project and
the advance of up to $15 million from the General Fund for the construction of the
course;
City Council acknowledges and accepts the General and Special Conditions of
the Coastal Development Permit issued by the California Coastal Commission;
Direct staff to explore development opportunities, including financial partnerships
with private interests, individuals, groups, or companies.
ITEM EXPLANATION:
PROJECT BACKGROUND With the voter approval of Proposition “G” in June of 1989,
the City of Carlsbad has continued to pursue the development of a “championship length”
public, daily-fee golf course within the City. In the very early 199O’s, plans to site the project
around Lake Calavera proved economically and environmentally infeasible. Subsequently
from 1994 through 1996, the City acquired several private properties generally located
northerly of the intersection of Palomar Airport Road and College Boulevard for this project.
Means of acquisition of the various properties included both negotiated sale and a judicial
foreclosure sale on one of the larger properties. In 1996 - 1997, these properties were
combined with a portion of City-owned property south of Faraday Avenue generally referred
to as future Veterans Memorial Park. The resulting land accumulation produced a total of
397 gross acres with which to develop a City-owned public golf course.
Thereafter, the City Council determined that the Golf Course Project would be best
constructed by the City and maintained and managed by a private operator. The City of
Carlsbad then joined with the Carlsbad Municipal Water District and formed the “Carlsbad
Public Financing Authority” as a joint powers authority, hereafter referred to as the “JPA.”
The purpose of the JPA is to assist with financing, construction, management, and
administration of the proposed City Golf Course Project and future City infrastructure
projects that are best developed using the JPA approach.
In June of 2000, the City had completed design of the Golf Course Project, received
construction bids, secured all permits and entitlements from Federal, State, Regional, and
local authorities, and was concurrently in the very final stages of review and approval of its
Habitat Management Plan, hereafter referred to as the “HMP.” The California Coastal
Commission then intervened and exercised its “appeal” authority over the City of Carlsbad
issued Coastal Development Permit for the Golf Course Project which effectively placed the
project on-hold. In addition, the Commission at this time also initiated its own review of the
City’s HMP having declined for several years to participate with other Resource Agencies
PAGE 2 OF AGENDA BILL NO. 17,405
and the City in the original drafting of the HMP. These actions resulted in the City being
forced to reject the June, 2000 golf course construction bids and enter into negotiations with
Coastal Commission staff over extensive Commission proposed modifications to both the
HMP and the Golf Course Project. These negotiations began in late 2000 and continued
through mid-2003.
Thereafter at its regular meeting of August 8, 2003, the California Coastal Commission
unanimously approved the negotiated modifications to the City Golf Course Project that had
been worked out between the staffs of both the Commission and the City over the
intervening 3-year period. The resulting Commission approved Coastal Development
Permit No. A-6-CII-00-087 for the Carlsbad City Golf Course Project, on file in the
Recreation Department, is effective through August, 2005 and subject to several standard
“General” and project specific “Special” Conditions which are enumerated within project
materials previously distributed to the City Council. The negotiated modifications to the City
Golf Course Project required by the California Coastal Commission are extensive, however,
when applied, still result in a quality public facility. The attached Resolution includes, among
other actions, language of formal City acceptance of the Conditions set forth by the
Commission accompanying their approval of the aforementioned permit. With the adoption
of the Resolution, staff recommends the City Council formally approve these Conditions.
CURRENT PROJECT STATUS The City Council appointed Golf Course Steering
Committee has reviewed the proposed modifications to the routing plan and the general .. layout and continues its endorsement of the proposed City Golf Couke Project. At this City
Council meeting, staff will review the required modifications and summarize the features of
the resulting course layout. Staff will also review an action plan for the necessary steps to
restart the project, undertake the design modifications, describe two potential phasing
options, a potential two-phase development schedule, and updated project development
estimates. Attached as Exhibits 3 and 4 are updated estimates of the two possible phasing
options as well as a potential two-phase construction schedule which staff will review at this
City Council meeting.
GOLF COURSE STEERING COMMITTEE RECOMMENDATION The Golf Course
Steering Committee convened on Friday, October 31, 2003 and reviewed the complete
project, the updated project budget for both phasing options, and the financing alternatives.
The Steering Committee’s recommendation to the City Council is to proceed with the
development of the complete project including the permanent clubhouse facility. The
Committee’s rational for this recommendation includes the following concerns:
the permanent clubhouse completes the City Golf Course Project functionally,
architecturally, and operationally;
deferral of the permanent clubhouse to the future will bring with it unavoidable
increased cost for the deferred construction;
costs expended for a temporary clubhouse and cart storage facility are sunken or
lost costs; and
the Committee is concerned for impacts a temporary clubhouse facility will have
upon attracting repeat non-resident play, ability to draw and serve large group
events, and ongoing lost opportunity revenue from the food and beverage
operation, increased size and inventory for retail sales, and the very important
“special event” revenue that would be attracted to the permanent clubhouse
facility.
2
PAGE 3 OF AGENDA BILL NO. 17r405
ENVIRONMENTAL REVIEW:
On June 7, 2000, the Planning Commission adopted Resolution No. 4772 certifying the
Environmental Impact Report for the development of the Carlsbad City Golf Course Project
finding the proposed project in conformance with the Environmental Quality Act, the State
Guidelines, and the Environmental Protection Procedures of the City of Carlsbad.
The California Coastal Commission’s revisions to the golf course design lessen the impacts
to sensitive habitat and there are no new significant impacts. Therefore, an addendum to
the previously certified EIR for the project will be issued by the Planning Director.
FISCAL IMPACT:
Preliminary construction cost estimates have been prepared and range between $24.4
million and $29.4 million depending on whether a permanent or temporary clubhouse is
constructed. Please reference attached Exhibit 3.
The financing for the construction of the course can be accomplished in a number of ways.
The least cost method and the one providing the most control to the City is with the City
building the course and then hiring a management company to operate it. Under this
scenario, the funding for the construction of the course is expected to come, first, from the
issuance of bonds, and then from other funding sources as needed. The bonds will be
repaid from the golf course revenues. Thus, in order to determine the amount of bonds that
can be issued, an estimate of the annual net income from the golf course operations is
needed.
Several years ago, the City hired Economic Research Associates to provide an overview of
the golf market in San Diego and to prepare preliminary pro-forma financial projections for
the City’s proposed golf course. This information was last updated in December 2002 and
is shown in Exhibit 5. The preliminary estimates show stable year net operating income
before debt service to be in the $1 .I to $1.3 million range. This income level assumes that
55,000 rounds are purchased annually with 20,000 of those being resident play. It also
assumes green fees at the following levels:
I Assumed Greens Fee Structure I
This level of operating income will support a bond issue of approximately $15 million at
100% coverage and a 5.1% average coupon. After deducting the amounts needed for a
debt service reserve, capitalized interest and issuance costs, there will be approximately
$12.4 million remaining to use for construction. With construction costs estimated at $24.4
million to $29.4 million, there will be a financing gap of $12 to $17 million. This is shown in
the table below assuming the course is constructed with the temporary clubhouse.
3
17,405 PAGE 4 OF AGENDA BILL NO.
II Golf Course Construction Financing I
INet ODeratina Income $1.100.000l
roximate Bond Issue Size
ss issuance costs, etc.
mount to Project Fund
Estimated Project Cost
$1 5,000,000 I
12,400,000 7
24 400 000 4
The shortfall could be financed in several ways. One option would be to advance funds
from the City’s General fund to be repaid as the revenues from the golf course allow. The
City’s General fund has already advanced $2.7 million to the golf course . An additional
borrowing of $12 million would put the total at $14.7 million. With the current income
estimates, repayment of the advance will take 40+ years, as the bonds would need to be
paid off first. Another option would be to advance funds from the General fund and to repay
the majority of it from the sale of the two remaining industrial pads that will be developed
along with the golf course. It is estimated that approximately $8.5 million may be realized
from the sale of the excess land leaving a balance of $6.2 million to be repaid from golf
course revenues when available. As the lots will not be developed until the course is
constructed, any decision on the sale or use of the lots should be deferred until that time.
If the General fund does advance any money to the golf course, staff recommends that the
advance be approved as an interest-bearing advance so the General fund may eventually
recover all lost earnings on the advance.
Council should be aware that the bond issue under this scenario will require the full faith
and credit of the Citv’s general fund to achieve this type of interest rate and coverage ratio.
Also, if interest rates rise prior to the issuance of the bonds, less money will be available to
use towards construction. This will increase the amount of advance needed from the
general fund. For that reason, staff would recommend authorizing an advance of up to $15
million from the general fund if Council chooses to finance the course under this scenario.
The undesignated General Fund balance is approximately $45 million as of June 30, 2003.
In addition, the revenue potential of the golf course is only an estimate. Council, or the
JPA, will need to set greens fees at a level that will generate sufficient net income to at least
make the payments on the bonds. If there is not sufficient net income for the bond
payments, the only back up revenue source is the General fund.
Staff also investigated financing the course using a ground lease or a facility lease scenario.
A ground lease would lease the land to a private party for 30 or so years and they would
construct and operate the golf course. A facility lease is similar except that the City would
build the course and then lease the entire facility to a private party for an annual lease
payment. Neither of these options was considered feasible on its own given the cost of
constructing the course and the cost of private financing. Although neither of these options
4
PAGE 5 OF AGENDA BILL NO. 17 405
were feasible on their own, there may be opportunities for the City to partner with a private
entity to share some of the risk involved in the construction and operation of the course.
Thus, staff recommends that we continue to investigate partnership opportunities with
private entities to see if there is an achievable public/private financing structure that would
be of benefit to the City.
Adoption of the attached resolution will allow staff to begin to identify the team needed to
provide the financing for the course. This may include a feasibility consultant, bond
counsel, financial consultant, underwriter and trustee. It also authorizes a loan of up to $15
million from the City's general fund, as needed, for construction of the course. Documents
to formalize these actions and approve the contracts will be brought back for Council's
a pp rova I.
EXHIBITS:
I. Resolution No. 2003-324 regarding the Carlsbad City Golf Course Project.
2. Revised Golf Course layout.
3. Updated Project Development Estimates under Two Options.
4. Potential Two-Phase Development Schedule.
5. "Carlsbad Municipal Golf Course Market and Financial Pro Forma," Update
Memorandum from Economic Research Associates, dated December 28,2002.
DEPARTMENT CONTACT: John Cahill, Municipal Projects Manager, at (760) 602-2726,
jcahi@ci.carlsbad.ca.us and Lisa Hildabrand, Finance Director, at (760) 602-2490
I hild@ci .carlsbad .ca. us
RESOLUTION NO. 2003-324
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA, PROVIDING DIRECTION
FOR THE PROPOSED CARLSBAD CITY GOLF COURSE
PROJECT AND POTENTIAL FINANCING OPTIONS
WHEREAS, the Carlsbad City voters approved “Proposition G” in June of
1989 intended to partially finance the development of a wide range of recreation
facilities within the City, including a championship length public golf course; and
WHEREAS, the City Council of the City of Carlsbad, California has
previously assembled by various means sufficient real property to develop a City-
owned, public, daily-fee municipal golf course of championship length, hereafter
referred to as the “Project”; and
WHEREAS, the Project has undergone several revisions culminating in a
final layout that was formally approved by the California Coastal Commission on August
8,2003; and
WHEREAS, the City Council does hereby find it necessary, desirable, and
in the public interest to proceed with the development and financing of the Project.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That the City Council does hereby authorize proceeding with
development of the Carlsbad City Golf Course Project (“Project”) in which the City
builds the Project and utilizes a private operator to maintain and manage the Project on
behalf of the City.
3. That the City Council does hereby defer to the future the construction
of a permanent clubhouse facility for the Project.
4. That the City Council does hereby direct staff to explore opportunities,
including financial partnerships with private interests, individuals, groups, or companies
toward the development and financing of the Project.
5. That the City Council does hereby authorize staff to identify
consultants necessary to accomplish the issuance of tax exempt debt for the Golf
Course Project.
6. That the City Council does hereby authorize a loan from the City’s
General Fund for the construction of the City’s Golf Course Project in an amount to be
determined by staff necessary to fill the financing gap which is presently estimated at
$15 million.
7. That the Golf Course is intended to be financially self supportive, and
that with the exception of a possible pledge of General Fund revenue as a credit
enhancement for a future bond issue, the business plan for the Golf Course should
show no General Fund money will be dedicated to funding operating and maintenance
costs of the Project.
8. That the City Council does hereby acknowledge and accept the
“General and Special Conditions” set forth by the California Coastal Commission’s
August 8, 2003 approval of Coastal Development Permit Application Number A-6-C11-
00-087 for the Project.
9. That the City Council does hereby direct staff to identify consultants
necessary to undertake the redesign and related pre-construction activities for the
proposed Project and to study and report on the ways and means to fund the proposed
Golf Course Clubhouse including restructuring of the proposed greens fees with an eye
toward exploring development opportunities including financial partnerships with private
2
interests, individuals, groups or companies so that the proposed Golf Course
Clubhouse can be developed simultaneously with construction of the Golf Course and
with all necessary and appropriate controls.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City
Council of the City of Carlsbad held on the 9th day of December Y
2003 by the following vote, to wit:
AYES: Council Members Lewis, Finnila, Kulchin, Hall and Packard
NOES: None
ABSENT: None
(SEAL)
3
Golf Course
Clubhouse-
---
- - Maintenance
SITE MAP
CITY OF CARLSBAD
GOLF COURSE
EXHIBIT 2
2
~~ II I I
OFF SITE LAND ACQUISITION
a. Wetlands Property Acquisition 0 0
b. Wetlands Mitigation Project 0 0
c. SMC Property Acquisition 0 0
Subtotal Off Site Land Acquisition: $ 1,377,000 $ 1,377,000
d. County Core 51 Acres Acquisition $ 1,377,000 $ 1 ,377,000
3
I I
OTHER DIRECT PROJECT COSTS
250,000 b. FFE for Maintenance Facility $ 250,000 $
c. Golf Course Start Up Budget $ 450,000 $ 450,000
a. FFE for Club House and Half-Way House $ 500,000 $ 200,000
d. Contingency (5%) $ 60,000 $ 45,000
Subtotal Direct Project Costs: $ 1,060,000 $ 945,000 I
I I
Subtotal Other Indirect Project Costs] $ 2,073,000 I $ 1,837,000 I I I I I
5 ITOTAL PROJECT BUDGET: I$ 29,415,343 I $ 24,414,343
EXHIBIT 3
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EXHIBIT 4
Economics Research Associates
Memorandum
Date: December 28,2002
To: John Cahi ll/Lisa Hildabrand
From: Gene P. Krekorian
Re: Carlsbad Municipal Golf Course Market and Financial Pro Forma
Update
ERA No. 14593
The following memorandum contains an overview of the San Diego
golf market and preliminary pro forma financial projections for the City of
Carlsbad's proposed 1 8-hole golf course. Note that the market data are current
as of mid-2002 and have not been updated since that time.
MARKET CONDITIONS
National Market Trends
In general, golf markets in most parts of the country have softened
considerably over the past two to three years, with the high-end daily fee
segment most affected. This softening has resulted primarily from excessive
expansion, again mostly in the high-end daily fee market segment, exacerbated
by the effects of a sluggish economy and a decline in corporate sponsored
individual and tournament play. At the same time, golf demand over the past
several years has plateaued.
Many golf developers, owners and operators are experiencing financial
difficulty, although much of the problem is the result of excessive amounts of
inexpensive capital available in the late 1990s through the stock market boom
and extraordinary optimism about continued growth in golf demand which
justified overpayment for golf assets.
EXHIBIT 5
1.2 Cos Angeies San Francisco San Diego Chicago Dallas Washington DC London
John Cahill / Lisa Hildabrand
ERA No. 14593
December 28,2002
Page 2
Most national golf markets appear to have bottomed out. and gradual
recovery is expected as the number of new courses under construction and
planned has declined sharply, and growth in golf demand should resume in
response to America's aging, albeit at a very modest pace of 1-2 percent per
year. Golf play propensity increases with age through about 65, and frequency
of play increases sharply after 55.
San Diego Counts Market Conditions
The San Diego County public golf market has fared somewhat better
than most national markets. Attached are a series of data tables (Tables 1-5)
relating to the San Diego County golf market. The following observations are
offered:
There currently are '39 regulation length daily fee golf courses
serving San Diego County. Additions to the daily fee/public
inventory since 1990 are as follows:
Mt. Woodson
Aviara
Steele Canyon
Eastlake
Vineyard Eagle Crest
Twin Oaks
Encinitas Ranch
Meadows Del Mar
Maderas
Auld
Barona Creek
New Course Openings
Public
1991
1991
1991
1991
1993
1993
1993
1998
1999
1999
2000
2001
John Cahill / Lisa Hildabrand
ERANo. 14593
December 28,2002
Page 3
0 With the opening of Encinitas Ranch, Meadows del Mar and
Maderas in 1998-1999, the upper mid- and high-end daily fee golf
market currently is relatively soft, although the well-designed
midmarket courses (e.g. Encinitas Ranch, Vineyard) have performed
very well.
0 Play levels at most courses have remained more or less unchanged
over the past three years. However there are a number of
manifestations of market softness:
- The rate of increase in greens fees has declined and, in some
cases, rates have been reduced.
- Twilight times for many courses have been moved up as an
inducement, and a super twilight rate has been introduced.
Greens/cart fee “specials,” particularly during the week, have
emerged.
Differentiation between county resident and nonresident rates
has been introduced as an inducement for residents. without
sacrificing revenue from the less price sensitive visitor market.
- New golf course construction and planning has slowed
considerably, although there are two North County courses
under construction - Mono Hills in Oceanside and Woods
Valley Ranch in Valley Center. Both are expected to be
positioned in the mid-market ($40-$60 greens fees).
-
-
0 The performance of three courses located in the north coastal region
of San Diego County provide informative perspective relative to
current golf market conditions faced by a new course in Carlsbad.
Encinitas Ranch: Encinitas Ranch continues to perform exceptionally
well, accommodating just over 70,000 annual rounds at an overall average
greens fee of about $40. This level of play is approaching the effective
maximum capacity of the course. About 30 percent of total play derives from
John Cahili / Lisa Hildabrand
ERA No. 14593
December 28,2002
Page 4
city residents at a discounted fee structure of $32 weekdays and $47 weekends,
plus cart. Eighteen-hole greens fees for nonresidents are $48 weekdays and $68
for nonresidents. Net operating income over the past two years has been about
$1.7 million per year.
Aviara: Aviara up until 2001 had consistently generated about 47,000
rounds per year at the highest greens fee structure in the market. In 2001, play
dropped precipitously to about 37,000 rounds. Most of this decline is
attributable to a significant drop in hotel occupancy, with non-hotel public play
declining modestly to about 12,000 rounds. Since rates had increased
substantially in 200 1, gross revenue was down only about 10 percent from 2000
levels. Play for 2002, based on year-to-date activity, is projected at about
42,000 rounds.
The percentage of public play - currently about 30 percent of total - is
projected to decline to less than 10 percent as the Four Seasons Residence Club
approaches buildout in the next several years.
Meadows del Mar: Meadows del Mar is a Fazio designed high-end
daily fee course with current greens fees of $1 10 weekdays and $140 weekends,
including cart, which opened in 1999 and has generated relatively stable play
levels at 36,000-38,000 rounds per year. The average greedcart fee is now in
the range of $120 per round.
The golf course and adjoining resort development site have been on the
market for the past two years, with a sale probable before the end of 2003.
Most likely, the buyer will develop the resort site, substantially limiting golf
capacity available to the general public.
John Cahill / Lisa Hildabrand
ERA No. 14593
December 28,2002
Page 5
KSL Corp. recently acquired the La Costa Resort and is proceeding uith
an extensive renovation plan. One of the golf courses will remain strictly
private, while the second will be available on a first priority to resort guests.
Excess capacity will be made available to visitors and the general public.
although KSL has indicated greens fees for these golfers will likely be in the
$1 50 to $200 range.
CARLSBAD MUNICIPAL GOLF COURSE POTENTIALS
Although the San Diego County public golf market has been stagnant
over the past several years, the outlook for a high-quality daily fee golf course
in Carlsbad remains reasonably favorable at this time. The Carlsbad site,
though costly to develop, offers an outstanding opportunity to create a high-
quality golf experience. Further area demographics are relatively strong and the
locational attributes of the Carlsbad site are Outstanding.
The proposed course will be designed to a quality level to compete with
such courses as Meadows Del Mar, Maderas, and the Talega course in San
Clemente. The absence of any residential development on the Carlsbad course
will result in a pure golf environment, a characteristic which is well regarded in
the marketplace.
Play at the Carlsbad course will consist of discount resident and non-
resident golfers.
Nonresident play will derive from several sources:
0
0
San Diego County residents outside the City of Carlsbad
Visitors to San Diego County
John Cahill / Lisa Hildabrand
ERA No. 14593
December 28,2002
Page 6
0
0
Hotel guests at La Costa, Aviara and other local overnight facilities
Businesses in and near Carlsbad, particularly those affiliated with
golf products
The City is committed to offering preferential rates and/or tee times to City
residents, but a specific program has not been formulated at this time. For
analysis purposes, the following greens fee structure has been adopted:
18 Hole Greens Fee
(including cart)
Resident Non-Resident
Monday-Thursday $45 $ 75 Friday $50 $ 85
Saturday-Sunday $60 $105
The assumed resident rates, including cart, are slightly above current
resident rates at the Vineyard and Encinitas Ranch. These resident rates reflect
a discount of approximately 40 percent off non-resident standard rates
anticipated at the Carlsbad course. Twilight rates also would be offered to both
residents and nonresidents.
While the discounted play reduces greens fee revenue to the course, the
lower fees for this population segment will stimulate additional play, and may
generate additional revenue, particularly if some of this play can be channeled
into times when excess capacity is available.
r There are a number of factors which have been considered in estimating
Carlsbad resident play:
John Cahill /Lisa Hildabrand
ERA No. 14593
December 28,2002
Page 7
The City of Carlsbad population currently is estimated at 88.000.
Income levels are well above average for San Diego County and the
State of California.
0 In general, demand for public golf play at all courses is generated at
a rate of about one round per capita per year. Depending on age and
income characteristics, 10 to 25 percent of public demand typically
relates to high-end daily fee courses.
Encinitas Ranch resident play totals 19,000 annual rounds, equal to
.32 rounds per capita per year. Greens fees, including cart, for
Encinitas residents are $40 weekdays and $55 weekends.
The amount of resident play at the course will depend largely on the
degree of discount. The resident play by Carlsbad residents is
estimated at .2 to .25 annual rounds per capita or about 20,000
rounds per year. This per capita factor is somewhat below that at
Encinitas Ranch, reflecting a slightly more challenging golf course,
somewhat higher greens fee and the mandatory use of carts.
PROJECT ECONOMICS
Based on current and anticipated golf market conditions and the type
and quality course envisioned for the subject Carlsbad site, pro forma financial
operating projections have been prepared. The analysis assumes development
of the course by the City with maintenance, operation, and management by a
private firm under a management contract.
John Cahill /Lisa Hildabrand
ERA No. 14593
December 28,2002
Page 8
A series of operating revenue factors and assumptions have been adopted.
The following rate structure, ancillary revenue potentials, and course utilization
appear to be reasonable and attainable, and reflect the development of a high-
quality, modest-size permanent clubhouse. An alternative analysis is conducted
assuming the course opens with a temporary clubhouse. The values are expressed
in constant 2002 dollars.
Golf Course Utilization
Annual golf play for the subject course, reflecting the greens fees and
other course characteristics indicated below, is projected as follows:
Year
Annual Rounds
Residents Nonresidents Total
1
2
3
18,000 30,000 48,000
19,000 33,000 52,000
20,000 35:OOO 55,000
The distribution of play at stabilization is estimated as follows
(moderate):
Number Average
of Rounds Weight Rounds/Dav
Monday-Thursday
Friday
Saturday-Sunday
Total
18-Hole
Twilight
Total
27,500 50% 135 8,250 15% 165
19,250 3 5% - I75
55,000 100% 160
46,750 . 85% ---
8,250 15% ---
55,000 100%
I
John Cahill / Lisa Hildabrand
ERA No. 14593
December 28,2002
Page 9
GreensKart Fees
Greens Fee
Type of Round (including cart) Weight
Carlsbad Resident
I 8-Hole
Monday-Thursday
Friday
Saturday-Sunday
Twi 1 ight/9-Hol e
Monda y-Thursday
Friday
Saturday-Sunday
Nonresident
18-Hole
Monday-Thursday
Friday
Saturday-Sunday
Twilight/9-Hole
Monday-Thursday
Friday
Saturday-Sunday
Average
Less: ComplimentaryDiscounts
Overall Weighted Average
$ 45.00
50.00
60.00
!$ 30.00
35.00
40.00
$ 75.00
85.00
105.00
$ 45.00
50.00
65.00
$ 68.45
(3.42)
$ 65.03
14.4%
4.3%
10.1%
3.6%
1.1%
2.5%
25.6%
7.7%
17.9%
6.4%
1.9%
4.5%
100.0%
( 5.0%)
95.0%
Other Revenue
Other potential sources of revenue include practice range, pro shop
merchandise sales, food and beverage operations, and other income. Projections
for these are as follows:
John Cahill / Lisa Hildabrand
ER4No. 14593
December 28,2002
Page 10
Practice RanPe (40 tees, niPht lighting)
Gross Revenue - $350,000 annually
Pro Shor,
Gross Revenue - $7.50 per round
Food and Beverape (gross revenue)
Bar/Grill (golfers) - $6.00 per round
Special Events - $500,000 per year
Other Income
Gross Revenue - $50,000 annually
Cost of Sales
Pro Shop - 58% of gross sales
Food and Beverage - 35% of gross sales
Course Maintenance
Payroll and Benefits
Water and Utilities
Service and Supplies
Maintenance Equipment Leasemeserve
Total
Golf Operations
Payroll and Benefits
Cart/GPS Leasing
Cart Maintenance/Staffing
Practice Range
Services and Supplies
Total
$ 550,000
3 50,000
300:OOO
125.000
$1,325,000
$ 275,000
195,000
75,000
75,000
50.000
$ 670,000
21
John Cahill /Lisa Hildabrand
ERA No. 14593
December 28,2002
Page 11
Food and Beveraee Operatinp Expenses
40% of gross sales
Clubhouse Undistributed Expenses
Maintenance, utilities, repairs and other
expenses related to the operation of the
clubhouse which are not allocated to either
the pro shop or food and beverage
operations
General and Administrative
Salaries and Benefits
Insurance
Property Taxes'
Other Services & Supplies
Advertising2
Credit Card Charges
Management Fee3
Total
Capital Replacement Reserve
2.0% of gross revenue
$ 374,000
$ 150,000
$ 175,000
40,000
75,000
150,000
78,000
277.000
$ 795,000
-_-
$ 104,000
Pro Forma Proiections
As shown in Table 6, stable year (year 3) net income, expressed in
constant 2002 dollars, is projected at $1.26 million. Including the effects of 3
percent average annual inflation, stable year net operating income is projected
at $1.45 million.
' Assumes municipal ownership.
I .5% of total gross revenue.
$120,000 base plus 3% of total gross revenue.
John Cahill / Lisa Hildabrand
ERA No. 14593
December 28,2002
Page 12
A five-year pro forma projection for the course is presented in Table 7.
The five-year projection reflects a 3 percent average annual inflation rate
applied equally to operating revenues and expenses. Net operating income is
presented before taxes, depreciation, and debt service. A capital replacement
reserve and professional management fee are deducted.
Sensitivitv Tests
The impact in stable-year net operating income related to variations in
annual play and green fees is presented below:
Nonresident
18-Hole Greens Fees Annual Plav
(Mon-Thrs/Fri/Sat-Sun) 50,000 55,000 58,000
$65/$75/$ 95
$75/$85/$105
$85/$95/S 120
687 982 1,150
943 1,263 1,456
1,248 1,599 1,810
Temporary Clubhouse
Operation of the golf course from a temporary clubhouse is a common
occurrence for new golf courses, clearly reducing the original capital outlay.
Use of a temporary clubhouse would also impact revenue and operating
expenses for the course.
The following assumptions relate to use of a temporary clubhouse:
0 Merchandise revenue is reduced from $7.50 to $5.00 per round.
0 Golfer-generated food and beverage revenue is reduced from $6.00
to $5.00 per round.
23
John Cahill / Lisa Hildabrand
ERA No. 14593
December 28,2002
Page 13
0 Special event food and beverage revenue is reduced from $500,000
to $1 50,000 per year.
Tournament rounds are reduced by 10 percent, or 500 rounds per
year.
Based on these assumptions, stable-year net operating income, expressed in
constant 2002 dollars, is estimated as follows (see Table 8):
Stable-Year
NO1
($000)
Permanent Clubhouse Temporary Clubhouse
Reduction
$1,263
1.1 17
$ 146
A $146,000 reduction in net operating income translates into a decline in value
of approximately $1.5 million. A 5-year operating income pro forma pro-jection
with a temporary clubhouse is presented in Table 9.
GOLF COURSE DEVELOPMENT COSTS
The development costs for selected high-quality golf courses
constructed in Southern California over the past several years is summarized in
Table 10. The total development costs for these courses are segregated into
several major categories for purposes of comparison. Off-siteshtilities costs
relate to those items located off property such as water wells, access roads,
utility trunk extensions, off-site environmental mitigation, and the like. Mass
grading varies according to topography and soil conditions. The mass grading
costs for Talega and Meadows del Mar are not included as these were absorbed
by the adjoining residential development. Golf course costs generally range
John Cahill / Lisa Hildabrand
ERANo. 14593
December 28,2002
Page 14
from $6.0 million to $8.5 million per 1 &hole course. Soft costs which include
architecture, engineering, construction financing, permits and fees, and water
connection fees, range widely based on the golf architect, overhead burden. and
city fee structure. Other costs such as parking, maintenance facility, on-course
restrooms, grow-in, start-up costs and financing are relatively uniform.
Overall, the cost of these high quality courses ranged from $1 7.0 million
to over $25 million per 18 holes. Excluding clubhouse, but adjusting for actual
grading costs, the total costs range from about $18 million to $22 million.
DEVELOPMENT SCENARIO
There are three basic developmentloperating scenarios for the golf
course, with several variations to these regarding City maintenance and resident
discount policies. The three basic scenarios are as follows:
Citv Development with Operation Under a Private Fee - for
Service or Manapement Contract
The City would develop the golf course and contract with a private golf
management firm for operation of the course, typically for a term of about 5
years. The City would receive all revenues and be responsible for all expenses.
The management firm would be compensated by a fixed fee plus incentive-
based performance payment.
The advantage of this option is that it allows the use of low cost (tax-
exempt) public financing and eliminates property tax liability. The City also
captures most of the upside financial potential. The major disadvantage is that
the basic financial risk is borne almost entirely by the City. A reasonable
25
John Cahill / Lisa Hildabrand
ERA No. 14593
December 28,2002
Page 15
management fee, including a guaranteed base plus incentive, would range from
$1 80,000 to $250,000 per year.
Under this scenario, the City could elect to maintain the course while
retaining a golf operations concessionaire (pro shop, carts, reservations/starting,
food and beverage, practice range). The economics associated with this
variation generally would be somewhat inferior to a pure management
agreement, although some risk would be shifted to the golf course
concessionaire.
CiW Develonment with a Facilitv Lease Agreement
The City would develop the golf course and lease the facility on a
turnkey basis to a private professional golf course operator. The lessee
generally would pay the greater of a fixed lease payment or a specified
percentage of gross revenue. The length of the lease term could vary from 5 to
15 years or longer, depending upon the lessee’s capital requirements and type
of financing in place.
The main advantage of this option is that, depending on the credit
worthiness of the lessee, financial risk to the City can be substantially reduced
while still benefiting from professional golf management. There are many
drawbacks, however, including loss of City control over many aspects of the
operation. Further, the annual lease payment, whether fixed or a percentage of
gross revenue, may not be sufficient to cover debt service. Typically, a lessee
can support rent payments equal to about 30 percent of golf related gross
revenue (greens, carts, and range), and 6-8 percent of merchandise and food and
26
ERANo. 14593
December 28,2002
Page 16
John Cahill / Lisa Hildabrand
ring these percentages to stable beverage revenue. Appl tear gross revenue
yields annual rent of about $1.3 million.
Ground Lease of the Site to Golf Course Develo~er/Ouerator
The private developer would construct and operate the golf course,
subject to negotiated policies, terms, and other conditions, paying a ground
lease payment to the City. The payment would consist of a minimum guarantee
versus a percentage of gross revenue. The length of the term would likely
range from 35 to 55 years. Course construction costs could be financed through
taxable municipal or private financing.
This option entails virtually no financial risk to the City, particularly if
the land is not subordinated. The disadvantages related to a ground lease
include loss of City control and minimum financial participation. As well,
depending on the cost of the course and market opportunity, there may be little,
and possibly negative, land value.
In strong markets, ground lease payments equal to 10 percent of total
golf related gross revenue may be expected. In the case of Carlsbad, an
investment level in the $12 to $14 million range appears supportable. Thus, to
the extent that the ground lessee’s cost is below this level, underlying land
value is created and ground lease revenue would be expected.
#I4593
Table 1
SUMMARY OF GREENS FEES AND PLAY LEVELS
2001-2002
l&Hole Greens Fees
(including cart)
Number Annual Monday- Saturday-
Golf Course of Holes Rounds Thursday Friday Sunday
Mount Woodson
Fa1 lbrook
San Luis Rey
Castle Creek
Meadow Lake
San Vicente
Twin Oaks
Pala Mesa
Eagle Crest
Cannel Mountain Ranch
Steele Canyon
Riverwalk
Aviara
Maderas
Meadows del Mar
Rancho Bemardo Inn
Carlton Oaks
Redhawk
Cannel Highland
Encinitas Ranch
Vineyard
Barona Creek
The Auld Course
Torrey Pines
South
North
-_. . -1 Temecula Creek 9
18
18
18
18
18
18
18
18
18
18
27
27
27
18
18
18
18
18
18
18
18
18
18
18
46,000
60,000
60,000
48,000
50,000
65,000
50,000
52,000
50,000
54,000
70,000
68,000
65,000
48,000
38,000
35,000
48,000
48,000
48,000
40,000
70,000
60,000
38,000
36,000
$56
37
42
43
35
49
54
65
38
66
60
65
75
1 551 1 75
85
110
85
55
49
50
603
554
85
75
954
774
$ 76
37
44
45
35
59
60
70
45
76
60
75
85
17511 95'
120
140
85
70
59
60
653
554
85
85
954
774
$8 1
47
62
56
55
59
74
80
65
86-76'
80
85
951 85'
1751195'
140
110
80
69
70
80'
674
85
95
1 174
874
1201 95'
'Saturday/Sunday. 'Hotel guestlpublic. 'Southern California resident. 4Nonresident. a Source: Economics Research Associates.
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4t14.593
Table 5
ENCINITAS RANCH GOLF COURSE
NET OPERATING INCOME
(Thousands of Dollars)
FY 1999-2001
FY 1999 FY 2000 FY 2001
Revenue
Greens Fees
Cart Fees
Range
Merchandise
F&B - Concession
Miscellaneous
Total
$2,430
573
200
32 1
80
108
$3,712
$2,804
608
250
396
94
207
$4,359
$2,769
674
25 1
450
91
21 1
$4,446 I ’.?”
Cost of Sales - Merchandise 216 26 1 295
Gross Profit $3,496 $4,098 $4,151
Less: Operating Expenses* 2,076 2,323 2.457
$1,420 $1,775 Net Operating Income $1,694
Annual Rounds 7 1,600 76,000 70,300
*Excludes depreciation, capital improvements replacement reserve, and incentive management fee.
Source: Economics Research Associates.
35
Table 6
STABLE-YEAR NET OPERATING INCOME
Carlsbad Municipal Golf Course
REVENUE
Greens/Cart Fees
Practice Range
Pro Shop Merchandise
Food & Beverage
Bar/Grill
Special Events
Other Income
Gross Revenue
Less: Cost of Sales
Pro Shop Merchandise
Food & Beverage
Subtotal Cost of Sales
TOTAL REVENUE
OPERATING EXPENSES
Course Maintenance
Salaries & Benefits
Water & Utilities
Services & Supplies
Equipment Lease
Subtotal Course Maintenance
Golf Operations
Pro Shop Staff
Cart Lease
Cart Maintenance/Staff
Practice Range
Miscellaneous
Subtotal Golf Operations
Food & Beverage Op. Expenses
Clubhouse Undistributed
General & Administrative
Salaries & Benefits
Insurance
Property Taxes
Other Services & Supplies
Advertising
Credit Card Charges (’I
Management Fee
Subtotal G&A
Course Replacement Reserve (’)
TOTAL EXPENSES
NET OPERATING INCOME
(I) I .s% of total gross revenue.
(’) $120,000 plus 3.0% of total gross revenue.
(3) 2.0% of total gross revenue.
Source: Economics Research Associates.
Amount
(%OOOs)
$3,577
350
413
330
500
50
$5,219
$248
29 1
$538
$4,68 1
$550
3 50
300
125
$1,325
$275
195
75
75
50
$670
$374
$150
$175
40
75
150
78
277
$795
104
$3,418
$1,263
Table 7
1 121 31 41 5
48,000 52,000 55,000 55,000 55,000
PRO FORMA FINANCIAL ANALYSIS
Carlsbad Municipal Golf Course
(In Current $000~)
Total
ANNUAL ROUNDS
REVENUE
Greedcart Fees @ $ 65.03
Practice Range
Pro Shop Merchandise
Food & Beverage
Bar/Grill
Special Events
Other Income
Gross Revenue
Less: Cost of Sales
Pro Shop Merchandise
Food & Beverage
Subtotal Cost of Sales
TOTAL REVENUE
OPERATING EXPENSES
Course Maintenance
Salaries & Benefits
Water & Utilities
Services & Supplies
Equip. Replacement Reserve
Subtotal Course Maintenance
Golf Operations
Pro Shop Staff
Cart Lease
Cart MaintenanceJStaff
Practice Range
Miscellaneous
Subtotal Golf Operations
F& B Op. Expenses
Clubhouse Undistributed
General & Administrative
Salaries & Benefits
Insurance
Property Taxes
Other Services & Supplies
Advertising/Marketing
Credit Card Charges (I)
Management Fee (2)
Subtotal G&A
Course Replacement Reserve (3)
TOTAL EXPENSES
NET OPERATING INCOME
$4,178 $4,599 $4,966 $5,115 $5,269 $24,126
$3,121 $3,483 $3,794 $3,908 $4,025
350 36 1 371 382 394
360 402 43 8 45 I 464
125 125 125 I25 125
$1,325 $1,361 $1,398 $1,436 $1,476
288 321 3 50 36 1 371
500 515 530 546 563
50 52 53 55 56
$4,669 $5,133 $5,537 $5,703 $5,874
625
$6,996
$I 8,332
1,858
2,114
1,691
2,655
265
$26,9 I6
$216 $241 $263 $270 $279 I $1,269
276 293 308 317 327 1 1,521
$492 $534 $571 $588 $606 I $2.790
$550 $567 $583 $601 $619
350 36 I 371 3 82 3 94
300 309 318 328 338
$2.920
1,858
1,593
$275 $283 $292 $300 $310
195 195 I95 I95 195
75 77 80 82 84
75 77 , 80 82 84
$1,460
975
398
398
50 52 53 55 56 I 265
$670 $684 $699 $714 $730 I $3.497
$355 $376 $396 $408 $420
$150 $155 $159 $164 $169
$175
40
75
150
70
260
$770
93
$180 $186 $191 $197
41 42 44 45
77 80 82 84
155 159 I64 169
77 83 86 88
274 286 29 1 296
$804 $836 $857 $880
103 111 I14 117
-
-,
$1,956
$796
$929
212
398
796
404
1.407
$4, I47
538
$3,363 $3,483 $3,599 $3,694 $3,791 [$17,930
$814 $1.116 $1.367 $1.421 $1.477 I $6.196 Note: Reflects 3.0% average annual inflation rate beginning in Year 2.
(I) I .5% oftotal gross revenue.
(') $120,000 plus 3.0% of total gross revenue.
(3) 2.0% of total gross revenue.
Source: Economics Research Associates.
37
Table 8
STABLE-YEAR NET OPERATING INCOME
Carlsbad Municipal Golf Course With Temporary Clubhouse
Amount
($OOOs)
REVENUE
GreendCart Fees
Practice Range
Pro Shop Merchandise
Food & Beverage
Bar/Grill
Special Events
Other Income
Gross Revenue
Less: Cost of Sales
Pro Shop Merchandise
Food & Beverage
Subtotal Cost of Sales
TOTAL REVENUE
OPERATING EXPENSES
Course Maintenance
Salaries & Benefits
Water & Utilities
Services & Supplies
Equipment Lease
Subtotal Course Maintenance
Golf Operations
Pro Shop Staff
Cart Lease
Cart MaintenanceIStaff
Practice Range
Miscellaneous
Subtotal Golf Operations
Food & Beverage Op. Expenses
Clubhouse Undistributed
General & Administrative
Salaries & Benefits
Insurance
Property Taxes
Other Services & Supplies
Advertising
Credit Card Charges
Management Fee (2)
Subtotal G&A
Course Replacement Reserve (3)
TOTAL EXPENSES
NET OPERATING INCOME
('1 1 .5% oftotal gross revenue.
(2) $120,000 plus 3.0% of total gross revenue.
(3) 2.0% of total gross revenue.
Source: Economics Research Associates.
$3.544
350
273
273
150
35
$4,624
$164
148
$311
$43 13
$550
350
300
125
$1,325
$275
I95
75
75
50
$670
$190
$150
$175
40
75
150
69
259
$768
92
$3, I 96
$1,117
Table 9
1 121 31 41 5
47,500 5 1,500 54,500 54,500 54,500
$3,089 $3,449 $3,760 $3,873 $3,989
350 36 1 371 382 394
238 265 289 298 307
238 265 289 298 307
I50 155 I59 I64 I69
PRO FORMA FINANCIAL ANALYSIS
Carlsbad Municipal Golf Course With Temporary Clubhouse
(In Current $000~)
Total
$18,159
1,858
1,396
1,396
796
ANNUAL ROUNDS
REVENUE
GreensICart Fees @ $65.03
Practice Range
Pro Shop Merchandise
Food & Beverage
BarIGrill
Special Events
Other Income
Gross Revenue
Less: Cost of Sales
Pro Shop Merchandise
Food & Beverage
Subtotal Cost of Sales
TOTAL REVENUE
OPERATING EXPENSES
Course Maintenance
Salaries & Benefits
Water & Utilities
Services & Supplies
Equip. Replacement Reserve
Subtotal Course Maintenance
Golf Operations
Pro Shop Staff
Cart Lease
Cart MaintenanceIStaff
Practice Range
Miscellaneous
Subtotal Golf Operations
F& B Op. Expenses
Clubhouse Undistributed
General & Administrative
Salaries & Benefits
Insurance
Property Taxes
Other Services & Supplies
Advertisinghlarketing
Credit Card Charges (I)
Management Fee (2)
Subtotal G&A
Course Replacement Reserve (3)
TOTAL EXPENSES
NET OPERATING INCOME
Note: Reflects 3.0% average anr
('I I .5% oftotal gross revenue.
35 36 37 38 39
$4,099 $4,531 $4,906 $5,053 $5,204
I86
$23,792
$278 $306 $330 $340 $350
$3,821 $4,225 $4,575 $4,713 $4,854
166
$143 $159 $173 $179
136 I47 157 162
$1,605
$22,187
125 I25 125 125 125
$1,325 $1,361 $1,398 $1,436 $1,476
$550 $567 $583 $601 $619
350 361 371 382 3 94
300 309 318 328 338
625
$6,996
$2,920
1,858
1,593
276
$744 $777 $808 $828 $849
243 256 267 272 1,314
$4,007
$275 $283 $292 $300 $310
195 I95 195 195 195
75 77 80 82 84
75 77 80 82 84
50 52 53 55 56
82 91 98 101 104
$3,146 $3,256 $3,364 $3,451 $3,542
$675 $969 $1.212 $1,261 $1,312
$1,460
975
398
398
265
476
$16,758
$5,429
$670 $684 $699 $714 $730 I $3,497
$174 $189 $202 $208 $214 I $987 I $796
$150 $155 $159 $164
$175 $180 $186 $191 $197
40 41 42 44 45
75 77 80 82 84
150 155 159 164 169
61 68 74 76 78
$929
212
398
796
357
11 inflation rate beginning in Year 2.
$120,000 plus 3.0% of total gross revenue.
('I 2.0% of total gross revenue.
Source: Economics Research Associates.
39
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MAYOR LEWIS AND CITY COUNCIL MEMBERS
It is my understanding that after years of effort by golfers and the city
Council and staff you are now in a position to cast a vote on the
feasibility of adding a golf course to the city’s beautiful park program.
You are in a position to understand all points of view so what can we
Add to what has already been said.
I’m sure you understand the need and costs involved both now for the
future but there is one point I would like to make-building a municipal
Golf course at this time is an investment in the future and should
always remain an asset to Carlsbad.
The site is adjacent to Legoland anb, incredibile park visited by
thousand of guests each month but *he golf course site in its present
condition is a blight to the city---An attractive golf course at that
location will be an asset and would also round out Carlsbad’s Park
Program.
In my opinion, this is our last opportunity to accommodate a growing
Sport. All other sport programs have a home in Carlsbad, Lets not
Forget today’s and tomorrow golfers.
Thanks for listening------Jim Smith
1CITY OF CARLSBAD GOLF COURSECITY OF CARLSBAD GOLF COURSEFinancing AlternativesFinancing Alternatives
2CITY OF CARLSBAD GOLF COURSE
3CITY OF CARLSBAD GOLF COURSEPROJECT GOALSCITY OF CARLSBAD GOLF COURSEPROJECT GOALS“Develop a championship length, City-owned, public, daily fee golf course that is accessible and affordable to Carlsbad residents…a project that is responsibly financed and one that is maintained and operated in an efficient and professional manner.”“Develop a championship length, City-owned, public, daily fee golf course that is accessible and affordable to Carlsbad residents…a project that is responsibly financed and one that is maintained and operated in an efficient and professional manner.”
4PROJECT STRUCTUREPROJECT STRUCTURECity of Carlsbad, a municipal corporationCity of Carlsbad, City of Carlsbad, a municipal a municipal corporationcorporationCarlsbad Municipal Water District, a special districtCarlsbad Municipal Carlsbad Municipal Water District, Water District, a special districta special districtCarlsbad Public Financing Authority, a joint powers authorityCarlsbad Public Carlsbad Public Financing Authority, Financing Authority, a joint powers a joint powers authorityauthority
5GOLF COURSE PROJECT STATUSAS OF JUNE, 2000GOLF COURSE PROJECT STATUSAS OF JUNE, 2000June, 2000• City Habitat Management Plan under final review by Federal and State Resource Agencies;• All Federal, State, and Local Golf Course Project entitlements and permits obtained by City;• Golf Course Project Environmental Impact Report certified;• City of Carlsbad issued Conditional Use Permit and Coastal Development Permit approved;• Golf Course Project final design completed;• Golf Course Project construction bids received;• California Coastal Commission “appeals” City issuance of CDP.June, 2000• City Habitat Management Plan under final review by Federal and State Resource Agencies;• All Federal, State, and Local Golf Course Project entitlements and permits obtained by City;• Golf Course Project Environmental Impact Report certified;• City of Carlsbad issued Conditional Use Permit and Coastal Development Permit approved;• Golf Course Project final design completed;• Golf Course Project construction bids received;• California Coastal Commission “appeals” City issuance of CDP.
6GOLF COURSE MODIFICATIONS RESULTING FROM CALIFORNIA COASTAL COMMISSION APPROVALGOLF COURSE MODIFICATIONS RESULTING FROM CALIFORNIA COASTAL COMMISSION APPROVALCCC Requirements1) Eliminate 100% of wetlands impacts within the Coastal Zone;2) Reduce impacts to dual criteria slopes to less than 10% of total.Effects on Golf Course Plan• Delete industrial pad at Hidden Valley Road and Palomar Airport Road;• Reconfigure industrial pad north side of College Boulevard;• Reroute and/or modify 11 of 18 golf holes and affected cart path routes;• Eliminate bridge structure between holes 11 and 12;• Create bridge structure to “span” wetlands between holes 13 and 14;• Relocate and reconfigure driving range;• Reconfigure irrigation lake, pump house, and support utilities.CCC Requirements1) Eliminate 100% of wetlands impacts within the Coastal Zone;2) Reduce impacts to dual criteria slopes to less than 10% of total.Effects on Golf Course Plan• Delete industrial pad at Hidden Valley Road and Palomar Airport Road;• Reconfigure industrial pad north side of College Boulevard;• Reroute and/or modify 11 of 18 golf holes and affected cart path routes;• Eliminate bridge structure between holes 11 and 12;• Create bridge structure to “span” wetlands between holes 13 and 14;• Relocate and reconfigure driving range;• Reconfigure irrigation lake, pump house, and support utilities.
7SPECIAL CONDITIONS TO COASTAL DEVELOPMENT PERMITSPECIAL CONDITIONS TO COASTAL DEVELOPMENT PERMIT• CCC retains “Permit Authority” including all future amendments;• CDP Permit must be exercised within 2 years (August 8, 2005);• All final plans reviewed by CCC Executive Director (Local AgencyStaff);• Golf Course shall be open to the general public;• Open Space and Conservation Easement over all onsite and offsitehabitat preservation areas;• Gnatcatcher nesting season grading restriction (March 1 to August 15);• Open Space Deed Restriction over entire site imposing this CCC Permit for duration of approved use;• Solicit comments from “Technical Advisory Panel” regarding all final plans and monitoring reports. • CCC retains “Permit Authority” including all future amendments;• CDP Permit must be exercised within 2 years (August 8, 2005);• All final plans reviewed by CCC Executive Director (Local AgencyStaff);• Golf Course shall be open to the general public;• Open Space and Conservation Easement over all onsite and offsitehabitat preservation areas;• Gnatcatcher nesting season grading restriction (March 1 to August 15);• Open Space Deed Restriction over entire site imposing this CCC Permit for duration of approved use;• Solicit comments from “Technical Advisory Panel” regarding all final plans and monitoring reports.
8DESIGN MODIFICATIONS MAPDESIGN MODIFICATIONS MAP
9GOLF COURSE LAYOUTGOLF COURSE LAYOUT
10GOLF SCORECARDGOLF SCORECARDHOLE BACK PAR HOLE BACK PAR1435 410346 42377 411393 43412 412436 44222 313342 45584 514130 36440 415541 57527 516540 58160 317192 39355 418414 4OUT 3512 36 IN 3334 36OUT 3512 36TOTAL 6846 72SCORECARD
11Intersection of Palomar Airport Road & College BoulevardIntersection of Palomar Airport Road & College Boulevard
12COLLEGE BOULEVARDView of 7thHoleCOLLEGE BOULEVARDView of 7thHole11
13Palomar Airport Road MediansPalomar Airport Road Medians
14TURN POCKET at Palomar Airport RoadTURN POCKET at Palomar Airport Road
15Palomar Oaks WayPalomar Oaks Way
16PUBLIC TRAILSPUBLIC TRAILS
17Trail Connectionat Faraday AvenueTrail Connectionat Faraday Avenue
18Electrical TowerElectrical Tower
19Existing CPD Training RangeExisting CPD Training Range
20CART BRIDGEat 14thHoleCART BRIDGEat 14thHole
21WATERFALLat 7thHole GreenWATERFALLat 7thHole Green
22INDUSTRIAL PAD SITESINDUSTRIAL PAD SITES
23INDUSTRIAL SITE NORTHView of 15thHoleINDUSTRIAL SITE NORTHView of 15thHole22
24INDUSTRIAL SITE SOUTHView of 5thHoleINDUSTRIAL SITE SOUTHView of 5thHole
25MAINTENANCE BUILDINGMAINTENANCE BUILDING
26CLUBHOUSECLUBHOUSE
27CLUBHOUSEPlan ViewCLUBHOUSEPlan View
28CLUBHOUSEat 9thHole GreenCLUBHOUSEat 9thHole Green
29GOLF COURSE PROJECT PHASING OPTIONSGOLF COURSE PROJECT PHASING OPTIONSOption 1Construct entire Golf Course Project including all proposed buildings, facilities, and features.Option 2Construct entire Golf Course Project but defer the Clubhouse construction to the future.Note: Option 2 requires construction of a temporary clubhouse including facilities for onsite golf cart storage.Option 1Construct entire Golf Course Project including all proposed buildings, facilities, and features.Option 2Construct entire Golf Course Project but defer the Clubhouse construction to the future.Note: Option 2 requires construction of a temporary clubhouse including facilities for onsite golf cart storage.
30Encinitas Ranch Club HouseEncinitas Ranch Club House
31Encinitas Ranch Club HouseEncinitas Ranch Club House
32Encinitas Ranch Golf Cart BuildingEncinitas Ranch Golf Cart Building
33UPDATED PROJECT BUDGETUPDATED PROJECT BUDGETOPTION 1: COMPLETE PROJECTOPTION 2: DEFER CLUBHOUSE1 CONSTRUCTIONa. Golf Course 15,684,782$ 15,684,782$ b. All Buildings 7,422,115$ 2,422,115$ c. Bridge over College Blvd. 612,478$ 612,478$ d. Construction Contingency (5%) 1,185,968$ 935,968$ e. Temporary Clubhouse & Cart Storage -$ 600,000$ Subtotal Construction: 24,905,343$ 20,255,343$ 2 OFF SITE LAND ACQUISITIONa. Wetlands Property Acquisition 0 0b. Wetlands Mitigation Project 0 0c. SMC Property Acquisition 0 0d. County Core 51 Acres Acquisition 1,377,000$ 1,377,000$ Subtotal Off Site Land Acquisition: 1,377,000$ 1,377,000$ 3 OTHER DIRECT PROJECT COSTSa. FFE for Club House and Half-Way House 500,000$ 200,000$ b. FFE for Maintenance Facility250,000$ 250,000$ c. Golf Course Start Up Budget 450,000$ 450,000$ d. Contingency (5%) 60,000$ 45,000$ Subtotal Direct Project Costs: 1,060,000$ 945,000$ 4 OTHER INDIRECT PROJECT COSTSa. Golf Course Redesign: Architecture 200,000$ 200,000$ b. Golf Course Redesign: Engineering 400,000$ 400,000$ c. Pre-Construction Archeology 250,000$ 250,000$ d. Construction Management 350,000$ 350,000$ e. Construction Geotechnical 150,000$ 150,000$ f. Special Code Inspections 50,000$ 50,000$ g. Environmental Monitoring 200,000$ 200,000$ h. Permits and Fees 50,000$ 50,000$ i. Public Art Component 225,000$ 0j. Golf Course Pre-Opening + Marketing 100,000$ 100,000$ k. Contingency (5%) 98,000$ 87,000$ Subtotal Other Indirect Project Costs: 2,073,000$ 1,837,000$ 5 TOTAL PROJECT BUDGET: 29,415,343$ 24,414,343$
34DEVELOPMENT SCHEDULEDEVELOPMENT SCHEDULETask Description JanGnatcatcher nesting season1 Redesign2 Onsite archeology phase3 Permit renewal and processing4 Offsite mitigation property aquisition5 CCC review of plans and reports6 Bid Period: Phase I: Site Preparation7 Phase I: Site Preparation ConstructionTask Description Jan Gnatcatcher nesting season8 Phase I: Site Preparation Construction9 Bid Period: Phase II: Course Construction10 Phase II: Construction PeriodTask Description Jan Gnatcatcher nesting season11 Construction PeriodTask Description Jan Gnatcatcher nesting season12 Construction Period13 Golf Course OpenJune JulyQIM OFeb Mar Apr May2005DFGH2004BECAprFebASepCITY OF CARLSBAD GOLF COURSE DEVELOPMENT SCHEDULEOct Nov DecJune July AugMayMarAug Sep Oct NovJune July Aug SepFeb Mar Apr MaySep OctDec2007J 2006Feb Mar Apr May June July AugPNLKOct Nov DecNov Dec
35FINANCE STRATEGIESFINANCE STRATEGIES
36Current Market Conditions and TrendsCurrent Market Conditions and Trends• Market has softened in recent years, especially in the high-end, daily fee• Demand flattened; over-supply of new courses• Appears to have bottomed out and gradual recovery anticipated• Demand expected to grow 1-2% per year• Market has softened in recent years, especially in the high-end, daily fee• Demand flattened; over-supply of new courses• Appears to have bottomed out and gradual recovery anticipated• Demand expected to grow 1-2% per year
37Project Economics -Rounds of PlayProject Economics -Rounds of Play55,000*Carlsbad (Assumed)38,000Maderas54,000Carmel Mountain Ranch65,000Riverwalk50,000Twin Oaks60,000Vineyard70,000Encinitas RanchAnnual RoundsCourse* Assumes 20,000 rounds (36%) of resident play* Assumes 20,000 rounds (36%) of resident play
38$105$60Sat – Sun$85$50Friday$75$45Mon - ThursNon-ResidentResidentAssumed Greens Fees* (including cart)Assumed Greens Fees* (including cart)* Per Economic Research Associates Report, dated Dec 2002* Per Economic Research Associates Report, dated Dec 2002* Per Economic Research Associates Report, dated Dec 2002
39Greens Fees ComparisonGreens Fees Comparison$68$58$48Carmel Mountain Ranch$60$50$45Carlsbad (Assumed)$125$125$95Maderas$50$50$45Torrey Pines - North$75$63$55Riverwalk$70$55$50Twin Oaks$58$47$47Vineyard$62$53$47Encinitas RanchGreen Fees*– ResidentM-Th F S&SCourse* Includes cart* Includes cart
40Greens Fees ComparisonGreens Fees Comparison$98$88$78Carmel Mountain Ranch$105$85$75Carlsbad (Assumed)$155$155$120Maderas$150$150$140Torrey Pines - North$98$88$78Riverwalk$75$60$55Twin Oaks$67$55$55Vineyard$88$73$68Encinitas RanchGreen Fees*– Non ResidentM-Th F S&SCourse* Includes cart* Includes cart
41Net Income from OperationsNet Income from Operations$1.117.092.259$1.468With Temp Clubhouse$1.644 Income before mgt fee and reserve.277Management fee.104Capital Reserve$1.263Net Operating IncomeWith FullClubhouseComparison of NOI:Encinitas Ranch: $1.7 million (FY 2001; 70,000 rounds; excludes capital reserve and mgt fee)Black Gold (Yorba Linda): $1.4 million (incl mgt fee, no reserve)Comparison of NOI:Encinitas Ranch: $1.7 million (FY 2001; 70,000 rounds; excludes capital reserve and mgt fee)Black Gold (Yorba Linda): $1.4 million (incl mgt fee, no reserve)
42Financing OptionsFinancing Options1.City contracts for construction and operation (Ground lease)2.City builds, leases total operations (Facility lease)3.City builds, contracts management (Full ownership)4.Partnership1.City contracts for construction and operation (Ground lease)2.City builds, leases total operations (Facility lease)3.City builds, contracts management (Full ownership)4.Partnership
43Ground LeaseGround Lease• Leases land from City for a fee• Vendor constructs and operates– Due to high construction costs, it is unlikely that any private company would be able to make the substantial upfront investment needed to build the course themselves• Leases land from City for a fee• Vendor constructs and operates– Due to high construction costs, it is unlikely that any private company would be able to make the substantial upfront investment needed to build the course themselves
44Facility LeaseFacility Lease•No tax-exempt debt; higher debt service• Property taxes apply; higher operating costs• Lease rate may not cover debt payment• City has less control over operations• If Vendor defaults, operating risk returns to City•City constructs all facilities• Vendor leases all facilities for a fee
45City OwnershipCity Ownership• City constructs• Contracts with private entity for operations• City constructs• Contracts with private entity for operations•City has all risk; construction and operating•Prevailing wages rates required•Use tax-exempt debt•No property taxes•City controlsConsPros
46Tax Exempt Debt RulesTax Exempt Debt Rules• Cannot give private entity ownership or leasehold interest• If contracting for management; cannot base all compensation on netprofits• Cannot give private entity ownership or leasehold interest• If contracting for management; cannot base all compensation on netprofits50% fixed or 100% capitation5 years80% fixed fee10 years95% fixed fee15 yearsCompensationTerm
47Financing OptionsCity OwnershipFinancing OptionsCity OwnershipMethod A• Issue bonds and advance remaining costs from the General fund• Repay from golf course revenues, as available or from the eventual sale or lease of industrial lotsMethod B - Not Recommended• Issue bonds for total project costs• Pay any shortfall from the General fund annually•Long-term burden on General fundMethod A• Issue bonds and advance remaining costs from the General fund• Repay from golf course revenues, as available or from the eventual sale or lease of industrial lotsMethod B -Not Recommended• Issue bonds for total project costs• Pay any shortfall from the General fund annually•Long-term burden on General fund
48!Stabilized net income of $1.1 million per year!Assumes course with temporary clubhouse & capital reserve!Stabilized net income of $1.1 million per year!Assumes course with temporary clubhouse & capital reserve$12.0 millionGap$24.4 millionEstimated Cost$12.4 millionAmount available for project- 2.5 millionReserve/cap interest/issue costs$14.9 millionBond issue(100% coverage, 5.14% coupon)Potential Finance PlanPotential Finance Plan
49Gap FinancingGap Financing•Advance from General Fund– $2.7 million advanced for design work– Up to an additional $15 million recommended– General Fund balance $45 million•Sale/lease of industrial pads•Partnerships•Advance from General Fund– $2.7 million advanced for design work– Up to an additional $15 million recommended– General Fund balance $45 million•Sale/lease of industrial pads•Partnerships
50Industrial LotsIndustrial Lots•Parcel B – 6.7 net acres•Parcel C – 5.4 net acresTotal Value•Parcel B – 6.7 net acres•Parcel C – 5.4 net acresTotal Value$ 4.7 million$ 3.8 million$ 8.5 million$ 4.7 million$ 3.8 million$ 8.5 million"Parcels could be sold or leased after construction of the golf course to partially fill the estimated $12.0 million gap in long-term financing."Parcels could be sold or leased after construction of the golf course to partially fill the estimated $12.0 million gap in long-term financing.
51Private/Public PartnershipPrivate/Public PartnershipExamples:• Partner constructs and operates; City contributes some capital cost • Partner builds and operates clubhouse; City builds and Partner operates golf courseNote:There are many variations on this theme that would need to be explored with the potential partnerExamples:• Partner constructs and operates; City contributes some capital cost • Partner builds and operates clubhouse; City builds and Partner operates golf courseNote:There are many variations on this theme that would need to be explored with the potential partner
52Private/Public PartnershipPrivate/Public Partnership•City contribution would most likely be subordinate to other financing•If Vendor defaults, operating risk returns to City•May not be able to use tax-exempt debt•May be able share or place construction and operating risk onto partner –depends on structureConsPros
53Financial RisksFinancial Risks• Higher construction costs• Higher interest rates on bonds• Lower rounds played / Greens fees not sufficient to cover debt serviceOption requires full faith and credit of the City’s General fund– If golf course can’t pay, General fund will have to advance• Higher construction costs• Higher interest rates on bonds• Lower rounds played / Greens fees not sufficient to cover debt serviceOption requires full faith and credit of the City’s General fund– If golf course can’t pay, General fund will have to advance
54CITY OF CARLSBADGOLF COURSECONCLUSIONCITY OF CARLSBADGOLF COURSECONCLUSION
55Tax-Exempt vs. Taxable DebtTax-Exempt vs. Taxable Debt$14.5$12.4Non Taxable$17.9$10.9TaxableTotal Interest CostAmount Available for ProjectMeasure$ 3.4 mm$ 1.4 mmDifference• Can measure difference in terms of– amount available for the project – total interest cost over life of bondsIn millions
56RECOMMENDATIONRECOMMENDATION1. Proceed with the Carlsbad City Golf Course Project Option 2 deferring construction of the permanent clubhouse and cart storage building.This action will authorize staff to:a. Return with contracts to undertake the redesign;b. Initiate renewal of the project permits and entitlements;c. Initiate off-site mitigation property acquisition.2. Explore development opportunities, including financial partnerships with private interests, individuals, groups, or companies.1. Proceed with the Carlsbad City Golf Course Project Option 2 deferring construction of the permanent clubhouse and cart storage building.This action will authorize staff to:a. Return with contracts to undertake the redesign;b. Initiate renewal of the project permits and entitlements;c. Initiate off-site mitigation property acquisition.2. Explore development opportunities, including financial partnerships with private interests, individuals, groups, or companies.
57RECOMMENDATIONRECOMMENDATION3. Proceed with Financing Option: City builds project and contracts management.This action will authorize:a. City issuance of tax-exempt bonds;b. General fund advancement for “gap” financing;c. Repayment of bonds from golf course revenues;d. General fund repayment from sale of lots and/or eventual golf course revenues;and requires further authorization to:a. Assemble a bond financing team;b. Advance from the General fund an amount not to exceed $15 million.3. Proceed with Financing Option: City builds project and contracts management.This action will authorize:a. City issuance of tax-exempt bonds;b. General fund advancement for “gap” financing;c. Repayment of bonds from golf course revenues;d. General fund repayment from sale of lots and/or eventual golf course revenues;and requires further authorization to:a. Assemble a bond financing team;b. Advance from the General fund an amount not to exceed $15 million.
58APPENDIXAPPENDIX
5912 34City Owns Facility Lease Ground Lease PartnershipDebt:Type Tax-exempt Taxable Taxable Depends OnAmount (based on $1.1m NOI3) $12.4mm $10.9 mm $10.9 mm NegotiationsTotal interest cost ($14.9 mm par) $14.5 mm $17.9 mmProperty taxesNo Yes YesIncome taxesNo Yes YesPrevailing wage ratesYes No NoBidding/ Contracting rules (JPA formed)Best value ok Best value ok NoneControl of feesYes - DirectSomewhat- to be negotiatedLesser degree- to be negotiatedControl of maintenanceCity can do or mgt firm - in contractLess due to longer term of contractLess due to longer term of contractManagement agreement termUp to 15 yearsMost likely > 20 years Most likely >30 yearsManagement Fees/Lease termFrom 50% to 95% fixed depending on term Lease payments Lease paymentsDevelopment/Construction risk1City City ContractorOperations Risk2CityTransfers risk to contractor, degree dependent on their financial strength Transfers risk to contractor, degree dependent on their financial strength 1Development Risk - the risk that costs to construct the course will be greater than projected.2Operations Risk - the risk that the course will not generate the net operating income projected3NOI is before any taxes, interest or debt payments. Includes capital reserve.City of Carlsbad Municipal Golf CourseSummary of Options
60RATE COMPARISON EXAMPLESRATE COMPARISON EXAMPLESPar72SlopeN/AYards6,821RatingN/AMon-ThursFridaysResident Rate45 50Cart RentalTotal w/ Cart45 50Non-Resident75 85Cart RentalTotal w/ Cart75 85IncludedIncluded60105CITY OF CARLSBAD GOLF COURSESat-Sun & Holidays60105Par71Slope131Yards6,296Rating71.9Mon-ThursFridaysResident Rate48 58Cart RentalTotal w/ Cart48 58Non-Resident78 88Cart RentalTotal w/ Cart78 88No Walking98No Walking9868CARMEL MOUNTAIN RANCH (San Diego)Sat-Sun & Holidays68Par72Slope127Yards6,523Rating71.2Mon-ThursFridaysResident Rate35 41Cart Rental12 12Total w/ Cart47 53Non-Resident56 61Cart Rental12 12Total w/ Cart68 73ENCINITAS RANCH GOLF COURSE (Encinitas)Sat-Sun & Holidays501262761288City of Carlsbad Golf Course rates as proposed by ERA Study, dated December 28, 2002All other rates current as of September 28, 2003City of Carlsbad Golf Course rates as proposed by ERA Study, dated December 28, 2002All other rates current as of September 28, 2003Par72Slope145Yards7,115Rating75.6Mon-ThursFridaysResident Rate95 125Cart RentalTotal w/ Cart95 125Non-Resident120 155Cart RentalTotal w/ Cart120 155No WalkingMADERAS GOLF CLUB (Poway)Sat-Sun & Holidays125125155155No Walking
61RATE COMPARISON EXAMPLES (cont.)RATE COMPARISON EXAMPLES (cont.)Par72Slope120Yards6,550Rating71.5Mon-ThursFridaysResident Rate55 65Cart RentalTotal w/ Cart55 63Non-Resident78 88Cart RentalTotal w/ Cart78 88RIVERWALK GOLF CLUB (San Diego)Sat-Sun & Holidays7575Included9898IncludedPar72Slope130Yards6,535Rating71.9Mon-ThursFridaysResident Rate50 55Cart RentalTotal w/ Cart50 55Non-Resident55 60Cart RentalTotal w/ Cart55 60TWIN OAKS GOLF COURSE (San Marcos)Sat-Sun & Holidays7070No Walking7575No WalkingPar70Slope127Yards6,301Rating71.2Mon-ThursFridaysResident Rate34 34Cart Rental13 13Total w/ Cart47 47Non-Resident42 42Cart Rental13 13Total w/ Cart55 55THE VINEYARD GOLF CLUB (Escondido)Sat-Sun & Holidays451358541367City of Carlsbad Golf Course rates as proposed by ERA Study, dated December 28, 2002All other rates current as of September 28, 2003City of Carlsbad Golf Course rates as proposed by ERA Study, dated December 28, 2002All other rates current as of September 28, 2003Par72Slope143Yards7,607Rating78.1Mon-ThursFridaysResident Rate29 34Cart Rental16 16Total w/ Cart45 50Non-Resident124 134Cart Rental16 16Total w/ Cart140 150TORREY PINES GOLF COURSE (San Diego)Sat-Sun & Holidays34165013416150
62ADVANCE ACCESS TO CITY GOLF COURSE BY CARLSBAD RESIDENTSADVANCE ACCESS TO CITY GOLF COURSE BY CARLSBAD RESIDENTS• Generally, tee times are reserved by telephone or Internet between 7 & 30 calendar days in advance;• Many Golf Courses allow City Residents to reserve a tee time by telephone or Internet up to 2 weeks in advance of Non-City Residents;• Generally, after the advance periods have passed, it’s “first come, first serve” for tee time reservations by telephone or Internet;• Many Golf Courses now require advance tee times be made backed by a credit card to guarantee the reservation.• Generally, tee times are reserved by telephone or Internet between 7 & 30 calendar days in advance;• Many Golf Courses allow City Residents to reserve a tee time by telephone or Internet up to 2 weeks in advance of Non-City Residents;• Generally, after the advance periods have passed, it’s “first come, first serve” for tee time reservations by telephone or Internet;• Many Golf Courses now require advance tee times be made backed by a credit card to guarantee the reservation.
63POTENTIAL “SENIORS” DISCOUNTED FEESPOTENTIAL “SENIORS” DISCOUNTED FEES• City retains authority to set all fees;• Generally, all fees are reviewed and adjusted, if needed, on an annual basis;• Cost recovery of entire Golf Course operation is primary goal;• Most public, daily-fee Golf Courses offer a “Seniors” discounted fee;• “Seniors” discounted fees vary. Some factors used in setting a “Seniors” fee:• Generally age 60 and above;• May be limited to weekday play, Monday through Thursday;• May be limited to afternoon play, after 12:00 noon or 2:00 pm onsome courses;• Discount varies from 10% to 50% of the standard daily-fee;• May be limited to Carlsbad resident “Seniors” only; or, can apply to all “Seniors” regardless of residence;• May be limited to “off-season” months, such as November through April.• City retains authority to set all fees;• Generally, all fees are reviewed and adjusted, if needed, on an annual basis;• Cost recovery of entire Golf Course operation is primary goal;• Most public, daily-fee Golf Courses offer a “Seniors” discounted fee;• “Seniors” discounted fees vary. Some factors used in setting a “Seniors” fee:• Generally age 60 and above;• May be limited to weekday play, Monday through Thursday;• May be limited to afternoon play, after 12:00 noon or 2:00 pm onsome courses;• Discount varies from 10% to 50% of the standard daily-fee;• May be limited to Carlsbad resident “Seniors” only; or, can apply to all “Seniors” regardless of residence;• May be limited to “off-season” months, such as November through April.
64RECOMMENDATION FOR SENIOR FEESRECOMMENDATION FOR SENIOR FEES• No decisions by City Council needed now.• City staff will survey local, comparable daily-fee Golf Courses for policies and fee schedules for “Seniors” discounted fees;• Golf Course Steering Committee will provide input regarding “Seniors” fees;• Return to City Council with data and options regarding “Seniors” fees prior to Golf Course opening.• No decisions by City Council needed now.• City staff will survey local, comparable daily-fee Golf Courses for policies and fee schedules for “Seniors” discounted fees;• Golf Course Steering Committee will provide input regarding “Seniors” fees;• Return to City Council with data and options regarding “Seniors” fees prior to Golf Course opening.
65BALLOT MEASURE GJune 6, 1989BALLOT MEASURE GJune 6, 1989PROPOSITION G:Do the voters of the City of Carlsbad approve spending City funds from various sources including the General Fund in an amount over One Million Dollars as determined necessary by the City Council to construct two public golf courses, one regulation and one short course, a multi-court tennis complex, two multi-purpose adult size fields, and an enclosed soccer facility? This measure authorizes but does not require such construction and may include the expenditure of funds for property acquisition.PROPOSITION G:Do the voters of the City of Carlsbad approve spending City funds from various sources including the General Fund in an amount over One Million Dollars as determined necessary by the City Council to construct two public golf courses, one regulation and one short course, a multi-court tennis complex, two multi-purpose adult size fields, and an enclosed soccer facility? This measure authorizes but does not require such construction and may include the expenditure of funds for property acquisition.
66GOLF COURSE STEERING COMMITTEEGOLF COURSE STEERING COMMITTEEIrv Roston, ChairmanEddie SusallaBill HartleyPat KrimianJack SchumakerJim SmithAl SuttonIrv Roston, ChairmanEddie SusallaBill HartleyPat KrimianJack SchumakerJim SmithAl SuttonParks and Recreation Commissioners: Scott Pieratt and Dennis CunninghamParks and Recreation Commissioners: Scott Pieratt and Dennis Cunningham