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Enterprise Funds <br /> Page 4 <br /> 6. The Council may also have the option of leasing the entire golf <br /> course to a private individual and have him come in and take over the <br /> complete management and operation of it for either a flat fee, which <br /> he will pay the City, or a percentage of the profits that he would <br /> realize at the end of the year. I would suggest if the Council gave <br /> this serious consideration, that we had better take the flat fee, <br /> because his maintenance costs are going to be sufficient as it is. On <br /> the other hand, if the Council is not concerned with receiving money <br /> from the golf course as long as it does not have to make up deficits <br /> from golf course operations, you may well want to consider letting a <br /> private individual lease it and just let him operate it as best he can. <br /> Should he fail in his attempt to operate it to his own satisfaction, <br /> then we could take it back. <br /> Finally, I would like to point out to the Council that the time and <br /> effort that has been required to supervise the golf course and train <br /> � clubhouse personnel and even now in the process of hiring a new <br /> golf course superintendent,- that it has taken a tremendous amount of <br /> the staff' s effort to keep the golf course going. The golf course, " <br /> under its current operation, is an administrative burdon on the staff. <br /> Let me end by simply saying that Mr. Benson and I would welcome the E`°: <br /> opportunity to talk ta the Council some more on this item, for whatever <br /> your decision is, we � as the staff here, can do it. We just want to <br /> be able to establish a clear understanding that whatever the decision <br /> is, that we are all in tune to what the consequences and the outcome = <br /> may be. ;�; <br /> �, <br /> `; <br /> �?z <br /> COMMENTS ON SKI TONKA <br /> Ski hills are something which I do not know very much about. So my <br /> first suggestion and recommendation to the Council would be that, should <br /> they ever consider seriously buying Ski Tonka as an on-going skiing <br /> facility that we would hire the �eal �state �esearch �irm in the <br /> Twin City area to do a market analysis for us. In addition, we would <br /> of course, ask Mr. Primus for full disclosure of his books. The <br /> Senior Primus had indicated to me, once, that the ski hill did not <br /> make very much money and the operation was a lot of headaches and <br /> under no circumstances would I ever recommend to the Council that we <br /> would take on an enterprise which we may be facing a deficit to <br /> start with. We owe it to ourselves to get the best market analysis <br /> i� possible. I do not have to stress the point, but Orono is a small <br /> City that has a very limited budget and we have our annual budget <br /> problems in trying to deal with our day to day operations to maintain <br /> a satisfactory level of service to the citizens. This puts enough <br /> strain on our budget, much less, attemptinq to aborb a possible <br /> loss from another enterprise operation. <br /> :��, . „ � � <br /> .� � _ . �: � �� :.. <br /> � ,�� � �� <br /> � �a�, r ��� <br /> � , ;�� <br /> 4� �, . e =- <br /> .� �t - ���, <br /> -���,,�.j'�,���,�, <br /> ...;. L • . . . �.�� � �-�� a4 }Tz �n-; <br /> �� �; <br /> . . .. . . . . . � . . . . � . . � � . .. . _ �'��;,, „. <br />