Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

2010-06-09 Fort Sheridan Master Plan Advisory Committee - Lake County Forest Preserves


Published on

Published in: Business, Sports
  • Be the first to comment

  • Be the first to like this

2010-06-09 Fort Sheridan Master Plan Advisory Committee - Lake County Forest Preserves

  1. 1. Fort Sheridan Update June 9, 2010 June 9, 2010 Fort Sheridan Master Plan Advisory Committee
  2. 2. Fort Sheridan Update June 9, 2010 Agenda • April 14, 2010 meeting minutes • Review process/report on activities since April meeting • Land use concepts • Golf course routing options • Public access components • Financial aspect of golf options • Discussion • Assess next moves
  3. 3. Fort Sheridan Update June 9, 2010 Our Charter “The Committee will prepare, approve and forward a final report to the Forest Preserve Board of Commissioners, consisting of a recommended program and conceptual master plan of preferred future public uses for Fort Sheridan Forest Preserve, including a summary of options, analysis, opinions of probable construction costs, analysis of projected operating costs and revenues, and public input considered during the planning process.”
  4. 4. Fort Sheridan Update June 9, 2010 Timeline January Gather information February 2nd Committee meeting; brainstorm on ideas March Review public comments; gather additional information April 3rd Committee meeting; explore scenarios of potential alignment May Further define scenarios June 4th Committee meeting; explore options for blended scenario July- Potential Public Open House for blended August scenario option September Select and recommend preferred scenario
  5. 5. Fort Sheridan Update June 9, 2010 Group protocols and ground rules • Full participation • Mutual understanding • Inclusive solutions • Shared responsibility • One conversation at a time • Each party contributes • Stay on topic; we will use a “parking lot” for follow-up on topics not on the agenda • Process checks to re-focus • No interruptions
  6. 6. Fort Sheridan Update June 9, 2010 Concept of Alignment and Consensus • Alignment means “getting in line” behind an idea or concept • Consensus means getting to a maximum point of agreement so that action can follow • Usually involves compromise, give and take • Each party must be able to “live with it” and support the group’s decision • Even with consensus, each party may have a different level of support for the decision • Can this group come to consensus around a recommendation?
  7. 7. Fort Sheridan Update June 9, 2010 Advisory committee members Lake County Forest Preserve District Commissioners Chair, Carol Calabresa, Board District 15 Anne Flanigan Bassi, Board District 23 Michelle Feldman, Board District 22 Susan Loving Gravenhorst, Board District 13 Municipal and Park District Representatives City of Highland Park City of Highwood City of Lake Forest Lake Bluff Park District Park District of Highland Park Town of Fort Sheridan Master Homeowners Association Ex-Officio Members: (Invited) Mark Steven Kirk - United States Representative - 10th District William Brawner - U.S. Department of the Army
  8. 8. Fort Sheridan Update June 9, 2010 Steps taken since April 2010 meeting • Retained Lohmann Golf Designs Inc. to develop golf course concepts • Retained Chris Brewer, Principal, AECOM, to analyze 9 hole golf market and financial aspects of concepts. • Forest Preserve staff prepared land use concept maps based on Advisory Committee discussions 1. Allocating golf course on western end of site and open space on eastern end of site; 2. Mixing golf course and public open space throughout the site, with both uses taking advantage of the lake front.
  9. 9. Fort Sheridan Update June 9, 2010 Steps taken since April 2010 meeting (cont.) • Forest Preserve staff met with Lohmann to discuss Committee objectives. • Lohmann prepared Concept Plans and reviewed them June 2 with Advisory Committee Staff Working Group • Lohmann revised Concept Plans based on Staff Working Group input at June 2 meeting • Revised Concept Plans presented to Advisory Committee this evening.
  10. 10. Land Use Scenario 1
  11. 11. Land Use Scenario 2
  12. 12. Fort Sheridan 9-Hole Golf Market Implications by Chris Brewer
  13. 13. Project Context  Where we’ve been  Where we are  The 9-hole concept
  14. 14. Where We’ve Been Fort Sheridan Area Course Performance – 2006 to 2009  Four 18-hole courses  Total rounds: Decrease from 127,600 to 117,900  Total revenue: Decrease from $6.5 million to $5.9 million  Total operating expenses are flat: $5.7 million  Debt Service: Growth from $530,100 to $672,500  In aggregate – system is losing about $500K annually
  15. 15. Where We’ve Been LCFPD Golf System Perspective – 2005 to 2009  Total Rounds: Decrease from 135,300 down to 113,450  Total Revenue: Decrease from $5.3 million to $4.6 million  Total Expenses: Growth from $3.8 million to $3.9 million  Debt Service: Decrease from $662,500 to $211,000  System is profitable: about $500k in 2009
  16. 16. Where We Are  Debt Service Impact  2 local courses will retire their debt by 2014  ThunderHawk debt will retire by 2018  Operating expenses have been constrained since 2005  Course reinvestment pressure will emerge  Rounds appear to be up in 2010  Linked with gradual economic improvement & discounting  Revenue growth will wait till 2011  While market demographics remain attractive for golf, the area population is not poised for significant growth  Need for programs and facilities to broaden the market
  17. 17. The 9-hole Concept  The proposed course would be long by 9-hole standards  3,200 to 3,400 yards in length / Multiple tee boxes
  18. 18. The 9-Hole Concept  Peak Season Weekend Fee Comparison  $20 to $23 per round today
  19. 19. The 9-Hole Concept 18-Hole Yardage Comparison
  20. 20. Proposed 9-Hole Scenario Market Guidance  Average 9-hole weekend price per round is $17  Most courses are not regulation length Proposal is for a regulation length 9-hole course  3,300 to 3,400 yards / Par 36  Alternative tee boxes to approximate 18 holes  Rich Harvest Farms / The Dunes  Analysis assumes that the course will play along the bluff  Concept 2A and 2B
  21. 21. Proposed 9-Hole Scenario  Financial Model Revenue Assumptions:  Course opens 4-5 years from today  27,500 rounds – full season  In-season weekend fee: $24 for nine holes, excluding cart  Cart utilization at 30% / $12.50 per round  Temporary clubhouse – café / bar service @ $4.50 per round  Modest merchandise sales @ $1 per round  No driving range / practice facility revenue is assumed  Financial Model Expense Assumptions:  Assumptions include G&A, golf operations, maintenance, marketing, and replacement reserves  Assumes grow-in expenses are amortized with construction budget
  22. 22. Proposed 9-Hole Scenario Implications Forecast Results / Year 1: Concepts 2A / 2B  27,500 rounds  Effective gross income: $680,000  Operating expenses: $660,000  Forecast: modest operating profit  Insufficient net operating income to cover debt service  Impact on local courses:  Less compared to 18-hole scenarios for Fort Sheridan  Short term 5% to 10% impact on other courses  Pressing need to grow revenue per round
  23. 23. The 9-Hole Concept Business Plan Youth Golf Learning Center (Concept 2B)  Would support development of junior golf  Acknowledged challenge: where do the kids play?  Typical business models  Driving range  Lessons / fee based programs  Memberships  Partnerships with area schools / park agencies  Donations / sponsorships  Likely outcomes:  As a driving range / practice facility: modest profitability  As a youth golf practice facility: subsidy should be assumed
  24. 24. The 9-Hole Concept Business Plan Key Questions:  Nature of the driving range / practice facility  Will the course play like 9 or play like 18  Quality, length, risk / reward play into the decision  Layout of alternative tee boxes will be critical
  25. 25. Fort Sheridan Update June 9, 2010 Next Steps • July-August Potential public open house for blended scenario option • September Select and recommend preferred scenario