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CC- 2330 Item # 1.       
Town Council Study Session
Meeting Date: 07/12/2017  
Requested by: Kristy Diaz-Trahan
Submitted By: Kristy Diaz-Trahan, Parks and Recreation
Department: Parks and Recreation  

Information
SUBJECT:
Presentation and discussion regarding consultant report for Town golf and restaurant operations
RECOMMENDATION:
Representatives from the consultant team of WLB, National Golf Foundation (NGF) and Forest Richardson & Associates will give a presentation summarizing their recommendations as a result of conducting a feasibility study on the golf and food & beverage operations at the Town's Community Center.
EXECUTIVE SUMMARY:
In January 2017, the Town published a request for proposals (RFP) for Land Planning and Economic Viability Consulting Services for the Town of Oro Valley El Conquistador Golf & Restaurant operations. The WLB Group, in partnership with National Golf Foundation (NGF) Consulting and Forest Richardson & Associates, were awarded the contract.
 
The consultants' report and recommendations are included in Attachment A.
BACKGROUND OR DETAILED INFORMATION:
An RFP for Land Planning and Economic Viability Consulting Services for the Town of Oro Valley El Conquistador Golf and Restaurant operations was published January 30, 2017. This feasibility study was intended to provide policy makers with sufficient information to allow them to consider continuation of current food and beverage operations, as well as the merits of continuing the current golf operations compared to re-purposing the land (or portions of the land) for alternative recreation uses.
 
The project focused on the economic viability of two primary considerations: (1) land use planning and (2) food and beverage operations.

Alternative land use options to be considered were as follows:
  1. Maintain the existing 45-holes of golf course
  2. Reduce the number of holes from 45 to 36
  3. Reduce the number of holes from 45 to 27
  4. Reduce the number of holes from 45 to 18
Food and beverage operation considerations were as follows:
  1. Maintain current operational arrangement
  2. Restructure the existing operations
The WLB Group, in partnership with NGF Consulting and Forest Richardson & Associates, were awarded the contract. Their work included research and analysis of background materials to include financial performance reports for the food and beverage operations, golf operations, acquisition and management agreements, bond covenants, maps, facility or structural assessments, site plans, Town ordinances, and other relevant information.
 
In addition, they conducted multiple interviews with Town representatives and key external stakeholders, which include the Troon management team. Furthermore, they met with current golf members, homeowners who live within the El Conquistador and Pusch X9 golf course communities, and other area golf courses. 
 
As a result of their extensive analysis and outreach feedback, the consultant team has compiled an in-depth report with their findings and recommendations. Highlights include:
 
La Cañada Golf Courses
  • Transition from 36 to 27 holes of golf
Food and beverage operations
  • Competitively bid the operations to a third-party vendor
 Pusch Ridge Golf Course
  • "Dirty Dozen" Concept
    • Reconfigure the current 9-hole course to a 12-hole, par 3 golf course
The full report is included as Attachment A.
FISCAL IMPACT:
This consultant study was funded in the Community Center Fund in the amount of $50,000.
SUGGESTED MOTION:
 N/A
Attachments
Oro Valley Final Report


    

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