Final Recommendations of the 2015 Bobby Jones Golf Club Study Committee Presented to the City of Sarasota Commission on December 14, 2015

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1 Final Recommendations of the 2015 Bobby Jones Golf Club Study Committee Presented to the City of Sarasota Commission on December 14, 2015 In accordance with the goals and objectives outlined in the City of Sarasota s November 3, 2014 Resolution #14R- 2452, the 2015 Bobby Jones Golf Course Study Committee has agreed to put forward the following recommendations for the City Commission s consideration and acceptance: 1. The City of Sarasota should expeditiously acquire the services of a professional Golf Course Architect/Master Planning firm to create an actionable plan for renewing the Bobby Jones Golf Complex that will enact the following improvements: a. Reconstruct the British and American courses i. The current footprint of the 18-hole British Course and 18-hole American course shall not be changed. ii. The back nines of each course should be rebuilt with an eye to capturing the spirit of Donald Ross (this is the area where the original Donald Ross course was located). iii. All tees and greens shall be reconstructed. iv. The irrigation system shall be replaced. v. The course-wide drainage shall be improved. vi. The Committee recommends working in partnership with the Southwest Florida Water Management District (SWFWMD), Sarasota County, the Sarasota Bay Estuary Program (SBEP), and any other agencies and stakeholders on a water quality/stormwater improvement project on the Bobby Jones Golf Club property that qualifies for Florida Department of Environmental Protection (FDEP) funding. vii. The courses restroom facilities shall be replaced with new facilities that are connected to City water and sewer services. viii. Any long-range plan should include an assessment of the health and maintenance of the trees. b. Create a Player Development Center i. The Committee recommends that the Player Development Center be constructed on the Gillespie property unless a more suitable site is found. ii. The Center should include a nine-hole course, reconfigured from the existing nine-hole course. iii. The Center should include a full-sized driving range, and a short game practice facility. iv. The existing tennis courts should be permanently removed. v. Programs for the Center can be developed with the help of the PGA; they offer this service complimentary to their members. c. Build a new clubhouse i. A new clubhouse should not be located within the footprint of the original 18-hole course. ii. The clubhouse should be designed to be a green facility. iii. The clubhouse may place cart storage under the main body of the building if it is deemed preferable to creating a separate structure. iv. The clubhouse s restaurant facility may be sized for modest dining options, such as a pub/tavern design rather than a full-sized restaurant and performance space. v. The clubhouse s Pro Shop should be large enough to better serve the needs of customers and staff. vi. The locker rooms should be inside the main clubhouse, rather than in a separate structure. vii. The design of the clubhouse should emphasize scenic views of the course, and allow for outdoor functions. viii. The clubhouse should have adequate office space and community room(s). ix. The clubhouse should reflect the historic character of the course, and interior spaces should accommodate the showcasing of artifacts of Sarasota s history of golf. x. It is preferable that the current clubhouse remain operative during construction of the new clubhouse. 1 of 2 Page 1 of 21

2 Final Recommendations of the 2015 Bobby Jones Golf Club Study Committee cont. Presented to the City of Sarasota Commission on December 14, 2015 d. Other Recommendations i. Marketing: The Committee recommends a professional marketing plan be implemented that highlights the history of the Club, the advantages of a centralized location, and the accessibility and affordability of the club. ii. Cell Tower Annual Income: The Committee recommends that the Bobby Jones Golf Club Fund be the recipient of the revenues collected as a result of an annual lease on the Cell Tower located on Bobby Jones property. iii. Retiree Costs: The Committee recommends that the Bobby Jones Golf Club Fund only be responsible for a pro-rata share of their retirees medical and dental costs when employees spent less than a majority of their career working at the Golf Club. iv. Data Initiative: The Committee recommends that the Club s management improves the Club s ability to capture demographic data that will allow Staff to better respond to client s needs and to help Club management make informed financial decisions regarding course usage and client expectations. v. Dynamic Pricing: The Committee recommends that Golf Club management be given the authorization to institute dynamic pricing when conditions suggest it is beneficial. 2 of 2 Page 2 of 21

3 BJGC STUDY COMMITTEE RECOMMENDATIONS FINAL REPORT December 14, Page 3 of 21

4 Resolution #14R-2452 November 3, 2014 Guiding Principles The City Commission believes that the city should continue to own and operate a reasonably priced municipal golf course The City Commission finds that the formulation of a master plan for the Bobby Jones Golf Club could be beneficial for the continued operations of Bobby Jones Golf Club 2 Page 4 of 21

5 City Commission Directed The City Commission created an ad hoc special purpose advisory committee and they were given the following general assignment: 1. Assess viable options and recommend a course of action for the development of a master plan. 2. Assure that any such master plan is financially feasible. 3. Report their recommendations to the City Commission. 3 Page 5 of 21

6 The Golf Courses The Committee recommends the redesign and rebuilding of the two 18 hole golf courses as hybrids, that maintain the present American and British footprint, with an eye to capturing the spirit of Donald Ross on the back 9s of each course (This is in the area where the original Donald Ross Course was located). The rebuilding of the two courses to include the following: Replacing golf course irrigation, Improve golf course drainage, Re-build new golf course tees and greens. Page 6 of 21 4

7 The Golf Course s Water Quality The Committee recommends working in partnership with SWFWMD and the County on a water quality / storm-water improvement project on the Bobby Jones Golf Club property that qualifies for Florida Department of Environmental Protection funding. The Committee recommends replacing the existing restroom facilities with new facilities that would be connected to the City s water and sewer system. 5 Page 7 of 21

8 Golf Course Operations The Committee believes that due to the deterioration of the facility, and the need to demonstrate to the supporters of the Club that a Capital improvement project is eminent, that time is of the essence. During the construction period, the Committee recommends that the Club have at least one 18 hole golf course operational at all times (unless it is necessary to close the second course for a short time to allow for routine maintenance). 6 Page 8 of 21

9 The Clubhouse The Committee recommends replacing and relocating the Clubhouse as follows: 1. The Clubhouse should be removed from the footprint of the original 18 hole golf course and the Master Planning firm should find a more suitable location that is practical, provides for a scenic view of the property and allows for outdoor functions. 2. Priority should be given to the issue of whether to construct a single building housing both the clubhouse and cart facilities or whether it would be more practical to have a separate cart barn in addition to the main clubhouse. 3. The Master planning firm should consider a period design that reflects the history of the Club and golf in Sarasota. The clubhouse should include secure facilities to house and showcase the many historical pieces representing the history of Golf in Sarasota and Bobby Jones Golf Club. The Committee recommends continuing to use the existing clubhouse until the new clubhouse is open for business. 7 Page 9 of 21

10 Clubhouse Design 1. The Clubhouse should be designed to be a green facility. 2. The Design should meet the needs of the Club, as it should include adequate office space, community rooms and a larger pro shop. 3. The Restaurant facility should be modern, meet the needs of the Restaurant Operator and the end users. Consider a pub/tavern design as opposed to a full sized restaurant. 4. The Locker rooms should be located inside the main clubhouse building. 8 Page 10 of 21

11 The Player Development Center The Committee recommends that a new player development center be constructed on the Gillespie property to include the current 9 hole golf course, which would be reconfigured to make room for the facilities (unless a more suitable site is found). We recommend the Center include a full size driving range and short game practice facility. We recommend the tennis courts be permanently removed from the Gillespie property. The Committee likes the idea of the staff working with the PGA of America to develop the program for the Player Development Center. This is a free service that the PGA offers to its members. 9 Page 11 of 21

12 Other Recommendations: The Committee recommends a professional marketing plan be implemented that focuses on: The history of Bobby Jones Golf Club Bobby Jones Golf Club s centralized location The accessibility and affordability of Bobby Jones Golf Club The Committee supports an initiative to improve the Club s ability to track demographic information and to extract data, to create a financial performance matrix, in order to make informed financial decisions. The Committee recommends Golf Club management be given the authorization to institute dynamic pricing when conditions suggest it is beneficial. 10 Page 12 of 21

13 Estimated Budget for Capital Improvements Golf Course #1 Renovation $ 3,750,000 Golf Course #2 Renovation $ 3,750,000 15,000 Square foot Clubhouse $ 3,500,000 Player Development Center $ 1,500,000 Lost Revenue from closures $ 250,000 Contingencies and other costs $ 1,750,000 Total estimated cost $ 14,500,000 This represents a conservative estimate for the costs of renovation. [Analysis of data provided by Industry Professionals and Trade Associations from Recent Florida golf courses renovations] 11 Page 13 of 21

14 Recommended Funding Sources: Currently Available Funds: 1. One Cent Sales Tax funds $ 1,100, Estimated available Capital funds $ 300,000 Partnership with SWFWMD and Sarasota County on Water quality improvement project: 1. Florida Department of Environmental Protection Grant $ 1,000,000 Other Sources of Funds: Naming Rights $ 500,000 Capital Investment for Restaurant $ 100,000 Revenue Bond $11,500,000 Total $14,500,000 Page 14 of 21 12

15 Conservative Estimate of Additional Revenue to Fund Revenue Bond The additional annual revenue from a $7.50 increase in the average price charged for a round of golf will generate. (based on the current level of 100,000 rounds per year ) $ 750,000 Additional revenue generated from a 5% increase in rounds played (after renovation) based on the current level of play and the new average rate charged of $ $ 143,750 Estimated reduction in maintenance costs annually $ 100,000 Revenue returned to the Club operating fund from the Cellular tower leases $ 30,000 Estimated additional revenue generated from having a full size driving range $ 65,000 Estimated additional revenue from increased merchandise sales and restaurant usage $ 50,000 Estimated cost savings from reclassifying the cost of medical and dental benefits provided to City retirees who were not golf course employees or worked at the golf course for only a portion of their City careers. $ 20,000 Total of Additional Revenues Per Year $ 1,158,750 Page 15 of 21 13

16 Comparison of Estimated Additional Revenue Generated vs Debt Service Total Principal and Additional Anticipated Excess of Additional Revenue Interest Payments Revenue Over Debt Payments 3% Interest Rate $ 15,122, $ 23,175, $ 8,052, % Interest Rate $ 15,424, $ 23,175, $ 7,750, % Interest Rate $ 15,726, $ 23,175, $ 7,448, % Interest Rate $ 16,330, $ 23,175, $ 6,845, % Interest Rate $ 16,933, $ 23,175, $ 6,241, Page 16 of 21

17 Annual Debt Service 3% vs Estimated Additional Revenue Annual Interest Principal Total Annual Additional Amount in Excess Year Payments Bond Balance Payments Payments Payments Revenue of Debt Obligation $ 11,500, $ 575, $ 10,925, $ 345, $ 575, $ 920, $ 1,158, $ 238, $ 575, $ 10,350, $ 327, $ 575, $ 902, $ 1,158, $ 256, $ 575, $ 9,775, $ 310, $ 575, $ 885, $ 1,158, $ 273, $ 575, $ 9,200, $ 293, $ 575, $ 868, $ 1,158, $ 290, $ 575, $ 8,625, $ 276, $ 575, $ 851, $ 1,158, $ 307, $ 575, $ 8,050, $ 258, $ 575, $ 833, $ 1,158, $ 325, $ 575, $ 7,475, $ 241, $ 575, $ 816, $ 1,158, $ 342, $ 575, $ 6,900, $ 224, $ 575, $ 799, $ 1,158, $ 359, $ 575, $ 6,325, $ 207, $ 575, $ 782, $ 1,158, $ 376, $ 575, $ 5,750, $ 189, $ 575, $ 764, $ 1,158, $ 394, $ 575, $ 5,175, $ 172, $ 575, $ 747, $ 1,158, $ 411, $ 575, $ 4,600, $ 155, $ 575, $ 730, $ 1,158, $ 428, $ 575, $ 4,025, $ 138, $ 575, $ 713, $ 1,158, $ 445, $ 575, $ 3,450, $ 120, $ 575, $ 695, $ 1,158, $ 463, $ 575, $ 2,875, $ 103, $ 575, $ 678, $ 1,158, $ 480, $ 575, $ 2,300, $ 86, $ 575, $ 661, $ 1,158, $ 497, $ 575, $ 1,725, $ 69, $ 575, $ 644, $ 1,158, $ 514, $ 575, $ 1,150, $ 51, $ 575, $ 626, $ 1,158, $ 532, $ 575, $ 575, $ 34, $ 575, $ 609, $ 1,158, $ 549, $ 575, $ - $ 17, $ 575, $ 592, $ 1,158, $ 566, Page 17 of 21 $ 3,622, $ 11,500, $ 15,122, $ 23,175, $ 8,052,

18 Annual Debt Service 3.5% vs Estimated Additional Revenue Annual Interest Principal Total Annual Additional Amount in Excess Year Payments Bond Balance Payments Payments Payments Revenue of Debt Obligation $ 11,500, $ 575, $ 10,925, $ 402, $ 575, $ 977, $ 1,158, $ 181, $ 575, $ 10,350, $ 382, $ 575, $ 957, $ 1,158, $ 201, $ 575, $ 9,775, $ 362, $ 575, $ 937, $ 1,158, $ 221, $ 575, $ 9,200, $ 342, $ 575, $ 917, $ 1,158, $ 241, $ 575, $ 8,625, $ 322, $ 575, $ 897, $ 1,158, $ 261, $ 575, $ 8,050, $ 301, $ 575, $ 876, $ 1,158, $ 281, $ 575, $ 7,475, $ 281, $ 575, $ 856, $ 1,158, $ 302, $ 575, $ 6,900, $ 261, $ 575, $ 836, $ 1,158, $ 322, $ 575, $ 6,325, $ 241, $ 575, $ 816, $ 1,158, $ 342, $ 575, $ 5,750, $ 221, $ 575, $ 796, $ 1,158, $ 362, $ 575, $ 5,175, $ 201, $ 575, $ 776, $ 1,158, $ 382, $ 575, $ 4,600, $ 181, $ 575, $ 756, $ 1,158, $ 402, $ 575, $ 4,025, $ 161, $ 575, $ 736, $ 1,158, $ 422, $ 575, $ 3,450, $ 140, $ 575, $ 715, $ 1,158, $ 442, $ 575, $ 2,875, $ 120, $ 575, $ 695, $ 1,158, $ 463, $ 575, $ 2,300, $ 100, $ 575, $ 675, $ 1,158, $ 483, $ 575, $ 1,725, $ 80, $ 575, $ 655, $ 1,158, $ 503, $ 575, $ 1,150, $ 60, $ 575, $ 635, $ 1,158, $ 523, $ 575, $ 575, $ 40, $ 575, $ 615, $ 1,158, $ 543, $ 575, $ - $ 20, $ 575, $ 595, $ 1,158, $ 563, Page 18 of 21 $ 4,226, $ 11,500, $ 15,726, $ 23,175, $ 7,448,

19 Annual Debt Service 4% vs Estimated Additional Revenue Annual Interest Principal Total Additional Amount in Excess Year Payments Bond Balance Payments Payments Annual Payments Revenue of Debt Obligation $ 11,500, $ 575, $ 10,925, $ 460, $ 575, $ 1,035, $ 1,158, $ 123, $ 575, $ 10,350, $ 437, $ 575, $ 1,012, $ 1,158, $ 146, $ 575, $ 9,775, $ 414, $ 575, $ 989, $ 1,158, $ 169, $ 575, $ 9,200, $ 391, $ 575, $ 966, $ 1,158, $ 192, $ 575, $ 8,625, $ 368, $ 575, $ 943, $ 1,158, $ 215, $ 575, $ 8,050, $ 345, $ 575, $ 920, $ 1,158, $ 238, $ 575, $ 7,475, $ 322, $ 575, $ 897, $ 1,158, $ 261, $ 575, $ 6,900, $ 299, $ 575, $ 874, $ 1,158, $ 284, $ 575, $ 6,325, $ 276, $ 575, $ 851, $ 1,158, $ 307, $ 575, $ 5,750, $ 253, $ 575, $ 828, $ 1,158, $ 330, $ 575, $ 5,175, $ 230, $ 575, $ 805, $ 1,158, $ 353, $ 575, $ 4,600, $ 207, $ 575, $ 782, $ 1,158, $ 376, $ 575, $ 4,025, $ 184, $ 575, $ 759, $ 1,158, $ 399, $ 575, $ 3,450, $ 161, $ 575, $ 736, $ 1,158, $ 422, $ 575, $ 2,875, $ 138, $ 575, $ 713, $ 1,158, $ 445, $ 575, $ 2,300, $ 115, $ 575, $ 690, $ 1,158, $ 468, $ 575, $ 1,725, $ 92, $ 575, $ 667, $ 1,158, $ 491, $ 575, $ 1,150, $ 69, $ 575, $ 644, $ 1,158, $ 514, $ 575, $ 575, $ 46, $ 575, $ 621, $ 1,158, $ 537, $ 575, $ - $ 23, $ 575, $ 598, $ 1,158, $ 560, Page 19 of 21 $ 4,830, $ 11,500, $ 16,330, $ 23,175, $ 6,845,

20 Annual Debt Service 4.5% vs Estimated Additional Revenue Annual Interest Principal Total Annual Additional Amount in Excess Year Payments Bond Balance Payments Payments Payments Revenue of Debt Obligation $ 11,500, $ 575, $ 10,925, $ 517, $ 575, $ 1,092, $ 1,158, $ 66, $ 575, $ 10,350, $ 491, $ 575, $ 1,066, $ 1,158, $ 92, $ 575, $ 9,775, $ 465, $ 575, $ 1,040, $ 1,158, $ 118, $ 575, $ 9,200, $ 439, $ 575, $ 1,014, $ 1,158, $ 143, $ 575, $ 8,625, $ 414, $ 575, $ 989, $ 1,158, $ 169, $ 575, $ 8,050, $ 388, $ 575, $ 963, $ 1,158, $ 195, $ 575, $ 7,475, $ 362, $ 575, $ 937, $ 1,158, $ 221, $ 575, $ 6,900, $ 336, $ 575, $ 911, $ 1,158, $ 247, $ 575, $ 6,325, $ 310, $ 575, $ 885, $ 1,158, $ 273, $ 575, $ 5,750, $ 284, $ 575, $ 859, $ 1,158, $ 299, $ 575, $ 5,175, $ 258, $ 575, $ 833, $ 1,158, $ 325, $ 575, $ 4,600, $ 232, $ 575, $ 807, $ 1,158, $ 350, $ 575, $ 4,025, $ 207, $ 575, $ 782, $ 1,158, $ 376, $ 575, $ 3,450, $ 181, $ 575, $ 756, $ 1,158, $ 402, $ 575, $ 2,875, $ 155, $ 575, $ 730, $ 1,158, $ 428, $ 575, $ 2,300, $ 129, $ 575, $ 704, $ 1,158, $ 454, $ 575, $ 1,725, $ 103, $ 575, $ 678, $ 1,158, $ 480, $ 575, $ 1,150, $ 77, $ 575, $ 652, $ 1,158, $ 506, $ 575, $ 575, $ 51, $ 575, $ 626, $ 1,158, $ 532, $ 575, $ - $ 25, $ 575, $ 600, $ 1,158, $ 557, $ 5,433, $ 11,500, $ 16,933, $ 23,175, Page $ 6,241, of 21

21 Bobby Jones Golf Club Study Committee Unanimously Passed the Following Motion In support of a long term capital investment in Bobby Jones Golf Club the Committee recommends: The City of Sarasota hire a Master Planner/Golf Course Architect to Develop a Master Plan for Bobby Jones Golf Club that implements the recommendations of the Committee as directed by the Sarasota City Commission. 19 Page 21 of 21