Mr. Rosen said, “he thinks it would be worth while to engage a broker to see what they believe the value of the golf course is” and “and maybe someone is out there that may want to buy the golf course and operate it“. Read the article in The Roanoke Times today and my article that will be in The Roanoke Star-Sentinel online Thursday and out on Friday. .
At the 2:00 PM Roanoke City Council meeting Court Rosen threw a monkey wrench into what was going smoothly and on "course" for a 5 - 10 year Request For Proposal for operation of the golf course. There was a 40 plus minute debate Monday afternoon that became clear that we have Council members working their way into selling the property. Mr. Rosen wanted financial data on the city's debt obligation compiled and a broker to assess it's sale value. He quoted some erroneous capital costs stating that the cart path repairs were 1.2 million dollars. With grass it is $25,000 and full pavement is $180,000. SEE corrected numbers below from Mr. Townsend. LISTEN AND WATCH HERE - pick 2:20 PM. .
It is not rocket science what the finances are with the golf course and it has been available for years. Mr. Nash, said Rosen was " mixing apples and oranges". The debt service is "apples" and the "operational costs" are oranges. WE ARE TALKING ORANGES. The golf course has sustained itself since its inception in 1967 and as Mr. Nash pointed out "something happens to THINGS when the City buys it". Meadowbrook, the current operator, has under reported their profit since taking over operation. Why might you think that Meadowbrook under reports it's profit? Why might you think that they might just want the $17,500 yearly lease reduced even further for a 5 year lease. Yes, rounds are down because of the state of flux but as any smart business would do - not report their actual profits to keep their lease cost low. I know that to be so in this case. It has not been marketed and heck, people say "Oh, I did not know it was still there".
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There are other local golf facilities wanting to operate the golf course. One in particular that has past experience in caring for the golf course had just called me between the two Council meetings Monday begging to be able to do a presentation to City Council. So now we know that they are out there but just can't get in.
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As I have been telling City Council for 2 years the almost $4 million loan on the property is financed at Carter Bank, amortized for 15 years at 6.25%. Have they ever heard of an amortization schedule? So exactly what can't they figure out in about 5 minutes? If I here "we can never have too much information" one more time well just say my hair is on fire. There is more to this than meets the eye. There are members of Council hell bent on having it sold for whatever reason. One thing that Mr. Rosen said, "we need money for neighborhoods and schools". So I guess we are not a neighborhood. He also said he did "not hear any citizens say they wanted to keep the golf course during the election". Well, Mr. Rosen, must not have listened or more precisely turned a deaf ear. It came out in forums where he said "we can never have too much information" and I will have to "study it". Roanoke City is NOT a corporation and City Council works for the people. City Administration is the business side of our local government and City Council members are the balance that weighs that with the well-being of the citizens. This is not the Pharma lobby he had been a spokesman for in Washington, DC, prior to coming to Roanoke.
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There was a briefing Monday as well on the NEW REC CENTER planned for Fallon Park. What's wrong with this picture? Let's take some of that amphitheatre money just sitting there and pay off this loan. Just think how much could have been saved these past years in interest. Way over 1/2 million in interest only now.
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Buena Vista BUILT a municipal golf course that sustains itself - Vista Links is just one example. Ms. Burcham is wrong when she said she could not find golf course that are not subsidized by the City. Looking at the financial figures she picked up from other golf course - they had "depreciation" as an expense. Well Countryside has ITS OWN equipment and there was NO depreciation on Countryside's disclosed financial information. The golf course operation has cost them not one red cent - it has made money as Mr. Nash stated. The debt service is the fault of the City and should be taken care of separately. Why is it that other projects seem valuable enough to put money into but Countryside not only sustains itself while other parks have to be subsidized by our tax dollar? I don't have to repeat the projects that get funding here. Again NOT ONE red cent has gone into the golf course and the debt - well the City got themselves into that by financing like a mortgage so they just need to deal with it!
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Mr. Rosen does not realize or does not care that we have no recreation in this part of the City. Mr. Rosen though cares for a dog park and has no concern that a "memorial tree" is planted right in the proposed location of the Highland Park dog park.
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NEW information just received on current operator's offer:
The cost to replace the irrigation system is $850,000. The golf cart repairs would be $300,000 with full pavement replacement and minor repairs to the clubhouse at $50,000. Meadowbrook wants $1.2 million upfront for these repairs. In turn Meadowbrook for a 10 year lease offered rent payment of 7.5% of total revenue or the following:
2009 = $30,000, 2010 = $50,000, 2011 - 2018 = $100,000
**Total revenue reported by Meadowbrook in 2005 was $917,839, 2006 was $912,319, and 2007 was $815,174. This would relate to the 7.5%.