Open Letter to the RochesterPark Board Commissioners
This letter is to share with you some concerns I have regarding Rochester Park & Recreation Golf Division - specifically the golf courses. This has been a difficult year for golf - there was a late start, weather was far below norms, & there was some unexpected damage due to storms, with Eastwood being the most impacted course. Now here in September most of the damage and wounds from the spring are healing. However, this letter is designed to focus on the longer term impact some of our choices are having on the golf courses.
As you know I am an avid golfer using all of our public courses & practice facilities, and I have much contact with the active golfing community. Over the years I have heard many stories regarding golf - golf makes money; golf loses money; golf is declining in popularity; golf is gaining in popularity; on and on! There are lots of stories in the golfing community - most of them are just stories rather than factual information. So to anchor this letter regarding golf I have gathered factual information from two sources - the primary source of data are the Annual Reports of the Park & Recreation Department to the City Council, beginning with the 1980 report. Over time the format of the reported data changed, so to fill in some gaps a secondary source of data came from the Director of Golf - Leif Erickson.
Here are some key observations -
- the golf courses cover 740 acres or 20% of the total land in the park system;
- golf is the largest revenue generator in Park & Recreation - nearly $1.4 million in 2012;
- in the last decade the number of rounds of golf played has been relatively stable averaging some 101,000 per year - see attachment A - Excel document sheet 1;
- over the past three decades golf has at times made money and more recently golf has been losing money - see attachment B-1 & B-2 - Excel document sheet 2 & 3;
- many changes have affected the golf courses, to name a few -
- Soldiers Field was closed in 1992 - impacted by the flood control project;
- Northern Hills has been physically disrupted several times due to the growth in NW Rochester, 2004 & 2005, then again 2006 & 2007;
- Eastwood was partially sold and a new nine constructed limiting play to only 9 holes for two years in 2006 & 2007;
- HawthornHillsLearningCenter was established, then closed for a year to construct what is now call HadleyCreekLearningCenter;
- there have been 4 different Directors of Golf since 1980;
- more details & observations on page 3.
So with that background, anchored in facts not stories, let me share my concerns. There is an expectation, desire, or goal to have golf break even - revenue will equal expense on an annual basis. This seems to be an unwritten expectation and the source of this expectation is unclear to me. Our Director of Golf has done good things to help achieve this expectation. He reduced rates with the desire of increasing the number of players and rounds played. He has increased revenue by assuming responsibility for cart rental & driving range at Northern Hills. He has reduced expenditures as well.
The expense reduction pressures are of concern to me. I view our golfing facilities as assets - some 740 acres of green space with grass, trees, and special turf to maintain. These assets are worn down daily by players, golf carts, maintenance equipment and by the weather. To repair & maintain these assets requires fertilizers, weed control, dirt, sod and other actions provided by our great grounds crews. Yet, I am observing wear and tear on our courses, not from just this season's challenging start, rather a slow, multi-year, deterioration of conditions of the golf courses. Members of the golfing community have shared similar concerns with me over the last few years.
Given the desire for golf to "break even" the focus is reducing the expenditures for the materials needed to repair and maintain the courses. I'm proposing, as we enter the 2014 budgeting cycle, the Board seek additional dollars from the CIP funds to restore the funding for materials needed to repair and maintain the golf courses. Here are some examples -
- CIP funds were used to enhance the identification/marking system for our trails - shouldn't CIP funds be used to replace the yardage marking systems at our golf courses or better yet make them the same at all courses;
- CIP funds are used for the 'Annual Trail overlay program' - is that any different than CIP funds for an 'Annual Fairway Enhancement Program or Tee enhancement program;
- CIP funds are set aside for roof repairs at the RecreationCenter; is that any different than using CIP funds to enhance the cart path systems at our golf courses;
- CIP funds are used each year for the tree planting program; CIP funds should be set aside and used for re-sodding worn areas or tree planting on our golf course.
These are just a few examples - the key point is - we should be investing more dollars into repairing and enhancing our golf courses.
Golf is the single largest revenue generator in the Park & Recreation Department - nearly $1.4 million in 2012, double anyother Park & Recreation activity. The footprint of our golf courses is 740 acres or 20% of the total parkland in our system. I'm proposing an annual CIP funding of $75,000 over the next ten (10) years to repair and enhance our golf courses. Our golfing facilities are an incredible asset of the City used by our residents and visitors alike. We, as Park Board Commissioners, should take steps to ensure we deliver top notch public golf courses deserving of the phrase 'a world class city.'
Rochester Golf - Observations & Comments
The primary source of data for Attachments A & B are the Annual Reports of the Park & Recreation Department made to the City Council & Mayor, beginning with the 1980 report. Over the 32 years studied the information reported changed. A secondary source of data was provided by Director of Golf, Leif Erickson. The secondary source of data filled gaps in the data and in most cases validated the data presented in the Annual Reports. (It should be noted that there was some historical data in the primary data source that was inconsistent with the secondary data source; in those cases the primary data source was used given it was publicly reported information. When the data varied, the variances were minor and do not impact the conclusions made.)
In 1992 Soldiers Field Golf Course was closed during the flood control construction project impacting the rounds played and revenue - both round played and revenue were down from previous years.
In 1999 Hawthorn Hills open as a golf learning center with an extensive driving range and 3 holes.
In 2004 & 2005 Northern Hills Golf Course had a reduced number of holes due to construction across the property reducing both rounds played and revenue.
In 2006 & 2007 Eastwood Golf Course was limited to nine holes impacting the rounds played and revenue - both rounds played & revenue were down from previous seasons.
In 2006 & 2007 Northern Hills again was disrupted by construction on holes 5, 6 &14 - both rounds played & revenue declined.
In 2008 Hawthorn Hills was closed for the construction of Hadley Creek reducing revenue, yet expenses remain about the same.
From 1999 with the opening of Hawthorn Hills and the transition to Hadley Creek in 2009, this golf learning facility lost money each year. These losses were incorporated into the overall financial performance of the Golf Division (see Attachment B-1) and in some ways masked the successful performance of the three primary courses. Attachment B-2 reflects the financial performance of the three primary courses with the revenue and expense of the learning center removed.
In the decade of the 1990's two 18 holes golf courses were built in Rochester- OakSummit & MeadowLakes. This increased the playing options for golfers and negatively impacted rounds played and revenue of the three city courses. Regionally a number of courses were built and/or expanded.
Regionally several courses have closed due to the economic impact of over supply of golfing options - Hidden Creek near Owatonna returned to farm land; Meadow Lakes in Rochester closed; & the 36 holes of Mississippi National in Red Wing closed.
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