05-28-2002 Council Packet - Laserfiche WebLink

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ORONO GOLF COURSE CURRENT ANALYSIS Facility Description Orono Golf Course is owned and operated by the City of Orono. Minnesota. The goH course is nine holes in length and plays to a par of 33 with a total yardage of 2,139 yards. The terrain is interesting and esthetically pleasing, providing an overall parkland feel. The property is characterized by gently rolling hills, pleasing valleys, and elevated plateaus thai serve as natural tee and green sites. There are six short length par 4 holes playing between 224 and 345 yards. Three par 3 holes, ranging from 124 yards to 190 yards, complete the nine hole mix. Hole design is simple with characteristics typical of golf course construction techniques prevalent 50 or more years ago. Hazards from trees, water, or bunkers have been kept extremely minimal. Green sizes are small, in the size range of 2,000 to 2,500 square feet. The greens were built in the YmjsH* up" style and constructed from native soils. Subsurface drainage is limited. A significant recent investment to the course ’s irrigation system provides ad^uate water for consistent turfgrass quality. The course holds the distinction of being the state's first public course with grass greens. The clubhouse is a converted two-story house that provides a small sitting room for customers, a counter area for sales of aO products, and a small set of restrooms. The second floor of the building goes largely unused consisting of the empty bedrooms from the original house. The building makes an interesting clubhouse, but at this point could use a renovation in order to increase both function and appearance. The facility operates wHhout a driving range and there is insufficient land available for this type of business expartsion. In fact, any expansion in additional business opportunities such as a clubhouse, an additional nine holes, or putting course development is impossible due to lack of land space. While the course could be viewed as having several shortcomings when compared to courses of modem design, it serves as a functional golf product for beginning and intermediate golfers of all age groups. Business Analysis Viewed as a business over the past five years, Orono Golf Course has generated a cumulative net irreome for the period of approximately $190,000. Operating expenses are well managed and the City has adequately kept up with the capital reinvestment necessary to both maintain and improve the property. The balance sheet is healthy with cash assets generating investment earnings of approximately $15,000 per year with no debt service on the liability side. The chart below depicts key operating data for the time period: 1907 1998 1960 2000 2001 Operating R«vfnu«218^223,344 219529 219,122 16SSS7 Nit Operating Inoom#66.9^58263 43,771 41,972 {14J294) Nit Oparatmg Mijpn 30%26%20% .. • 19% Total Rounds 19.642 19,181 18.673 17,458 1Z9M Orono Golf Course experienced a difficult business year in 2001 with operating revenue off by 24 percent. Three primary factors contributed to depressed business conditions for Orono Golf Course and the local golf ma^t as a whole. L