An Overview of the Golf Canada Calgary Centre Facility Background
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- Caroline Perkins
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1 An Overview of the Golf Canada Calgary Centre There has been much discussion surround why Golf Canada owns and operates the facility in Calgary; Golf Canada Calgary Centre. Was it done for investment purposes? Is it a sport development investment? The answer, I believe, is that it is both. I have taken the liberty of putting together this information piece a) to provide some background on the facility usage b) provide a status update on the facility post flood and c) provide you with an update on a very exciting opportunity that has presented itself to the facility and has potential application across the country. Facility Background In the fall of 2002 the Royal Canadian Golf Association acquired the Calgary facility in an effort to strengthen brand awareness in western Canada along with provide affordable/accessible services for all ages and playing levels, grass root programming to assist in growing participation in the region The facility is composed of a 9 hole par 3 short course, double ended championship year round driving range, 18 hole all natural grass putting course Services include: an academy composed of 6 full time teaching professionals, recreational golf leagues, corporate events, seasonal golf simulators, food and beverage, merchandise, club fitting and repair(tenant), and the Golf Canada Calgary Performance and wellness Centre(tenants) The facility offers access to this regions top identified players as provided by Golf Alberta, supporting our drive to produce champions that will in turn grow participation through mentoring our youth The Calgary Centre hosts 30 plus schools a year accessing instruction and etiquette, the driving range, short game, short course and mini putt We host over 500 children in our CN Future Links Learn to Play program along with 2 3 annual Skills Challenges, Junior Golf League and Girls Club On average 2-3 Golf fore the Cure events are hosted at the facility annually The facility has developed a Junior High Performance Training Program Strive For Excellence designed for aspiring junior competitive golfers that fill the gap between the L2P and our provincial team programs. The facility employs a full time coach to run this program, this serves as a case study for movement/culture change we are attempting to make with the PGA of Canada. Golf Canada Calgary provides a financial benefit to Golf Canada (Average surplus of $236k / since acquisition, before amortization) in addition to being a pilot site for sport development and Golf Canada initiatives including the National Golf In School Program Calgary staff are proud ambassadors of our sport and represent Golf Canada within our region on a professional level with all stakeholders and a strong relationship with Alberta Golf The centre provides a green grass facility for Alberta Golf to access for camps and educational seminars
2 Golf Canada Calgary Centre; Post Flood Facility Update Golf Canada Calgary was heavily impacted by the June 2013 flood.the following serves as a high level update on status of the recovery: To a certain degree the flood was a blessing in providing opportunity; facilities and buildings have received an exciting fresh new face lift replacing and upgrading signs to Golf Canada branding, structures, landscape, furnishings and finishes throughout. At this point we have not been able to secure flood insurance. We are working with the landlord to investigate our options Championship Driving Range returned to operation on August 8, 2013 under the shelter on artificial mats. The grass tee hitting surface was reclaimed and will return to operation in The 9 Hole Par 3 Course has been completely reclaimed and is ready to re- open in spring All the greens and tee boxes were salvaged along with green surrounds and several fairways while we hydro- seeded and laid sod in areas around the perimeter and all heavily impacted areas beyond repair. Sand bunkers and infrastructure such as nets and perimeter fences were rebuilt. The main clubhouse, maintenance building and tenant spaces are complete emergency and rebuild and operations will return to normal for December 2013 after operating our driving range and academy services through a temporary portable trailer during the construction phase. The 18 Hole all natural grass Putting Course was completed destroyed and plans to develop were placed on hold as we realized the facility could not be rebuilt prior to the snow falling and priority focus was on salvaging the other facilities. Further information on this area is below. Golf Canada Calgary Centre; 18 Hole Natural Grass Putting Course In the absence of the 18 hole putting course the facility is impacted in several ways: The putting course was positioned facing the main traffic route into the facility and is currently an eye sore from a drive by standpoint. The parking lot and amenities were shared with our double ended driving range or Academy short game and private group teaching facilities that hosts our junior and adult clinics The Putting Course generated a surplus of $50 - $75k annually that is absent for 2014 The Putting Course provided a place to introduce the non golfer to our game Instructors used this an entry level introduction to the golf course for our level 1 and 2 L2P programs Family friendly facility offering a place for all ages and playing levels to participate together Presented an opportunity for parents to play a round with siblings while a child was in a clinic on the academy or dad to hit a basket of balls while children played the putting course Promotional opportunity for corporate events offering an option for the non golfer in the office to enjoy the golf environment often hosting groups that sent half of the participants to the putting course while the other half played and par 3 course and met in the banquet room for a meal following
3 Options for 18 Hole Putting Course land going forward In looking at the options for what to do with this area, there are a number of options: Option #1 - Rebuild 18 Hole Putting Course Returning to Pre- Flood State - Natural Grass Option #2-10,000 ft 2 Synthetic Green for Multiple 18 Hole Layout Mini Putt Option #3 - Rebuild 18 Hole Putting Course Synthetic Turf Option #4 - The Opportunity - Create a Shot Performance and Entertainment Facility (CAS) A brief summary of the options can be found on the following pages. I suggest that we create a working group of the Board (Paul/Doug?) to work with SMT to investigate these options further and bring a final recommendation to the Board by the AGM. The reco will take into account what we plan to do with the facility going forward in terms of keeping it/investing in it, or possibly selling it. Here is some preliminary due diligence on each of the options for background; Option #1 - Rebuild 18 Hole Putting Course Returning to Pre- Flood State - Natural Grass It was identified days after the flood that this was not a feasible solution. The Putting Course received mass destruction from the flooding washing out 50% of the greens and excessive damage throughout. Asphalt from the parking lot was scattered throughout along with electrical conduit for night lighting, irrigation, bridges and drainage tile was undermined and uprooted beyond repair. The estimated cost to return this area to pre flood is in the range of $800,000 (a full 5 6 months construction) and with a return on investment of 10 years based on historical net profit. Option #2-10,000 ft 2 Synthetic Green for Multiple 18 Hole Layout Mini Putt A rather uncomplicated and inexpensive solution with a reasonable construction timeline is to fabricate a 10,000 ft 2 practice green with undulation changes and a unique design to allow one to create a 12 or 18 hole putting layout that has the ability to change daily. The cost to develop this green and the complete the landscape surroundings to create a pleasurable experience is estimated at $80k for a synthetic turf green and surroundings(virtually zero maintenance) or $45k for an all natural grass USGA spec green(irrigation, grooming, repairs). Pros Ability to change the layout daily Inexpensive Short Construction Time Frame New Concept Low Maintenance if Synthetic Cons Manual Scorecard with ever changing layout Down Grade from previous facility; unpredictable impact participation
4 Option #3 - Rebuild 18 Hole Putting Course Synthetic Turf Highly recommended to construct a synthetic turf miniature putting course versus the very delicate, high maintenance and from experience, often abused by the uneducated non golfer, natural bent- grass layout Option for a 6, 9, 12, 18 Hole Design with the ability to expand Recommendation to build a fun, practical and aesthetically pleasing design incorporating a challenging and enjoyable experience for all ages with traffic flow, safety and entertainment in mind. An 18 Hole design Development Cost can be budgeted at $500,000 based on miniature golf course designer Stephen Wilson s experience with 3 very impressive Calgary and Area projects he completed in the past 2 years. Plus the Putting Course building ($60,000 maximum claim value on flood insurance). Projected Surplus $75- $125K with a ROI of 4-5 years Miniature Golf Course competition is in the far NE and deep SW quadrants of the city while we are positioned in the Central SE quadrant. The 2 competitor facilities have expressed a return on investment in less than 2 seasons. Surprisingly Calgary does not have any year round indoor miniature golf and therefore we see an opportunity here Option #4 - The Opportunity - Create a Shot Performance and Entertainment Facility (CAS) Taking the liberty of assuming there is alignment on why we own and operate the facility in Calgary part investment financially and part investment in developing initiatives that support the sport the following is an overview of an innovative project that has presented itself to Golf Canada to consider as a replacement project to simply reconstructing the mini putt course at the south end of the Golf Canada Calgary Center property. What is CAS? The CAS Facility is a Premier indoor golf practice, training and entertainment complex. The facility is composed of a family friendly miniature golf component, yard pitching and chipping area, high tech reaction greens with a variety of undulation and speed, full swing ball striking, designated instruction and club- fitting for full swing, chipping and putting video analyzing, sand play practice from green side to 70 yards, league and corporate gaming with the similar but specific to short game concept as topgolf.com venues. The facility is the perfect setting for the serious player, families, school and youth groups, corporations, new players and advanced golfers to enjoy a day of golf in the ambience of a country club environment with the restaurant and lounge, event seating, locker storage, modern design and leader board technology providing an entertaining day of golf!
5 The Benefits: Create- A- Shot (CAS) Performance and Entertainment Facilities will compliment Golf Canada Calgary s programs and services and align with Golf Canada s initiatives in: Providing affordable and accessible year round facilities for introducing and growing participation in our region Caters to all ages and playing abilities Opportunity to expand CN Future Links Learn to Play, Junior Skills, Girls Club, Leagues, National Golf In Schools Access for leading edge training facilities for our provincial and national team programs New; year round revenue streams for Golf Canada and the Calgary Centre Model for Junior Golf Development Centre s nationally Improved high performance practice facilities for our elite golfers Model for Golf Courses to recognize year round revenue opportunity Providing increased participation nationally Ability to assist golf courses financial success with a low season revenue stream that is not weather pendant Innovation of a pleasurable golf experience providing a unique competition(adrenalin and excitement) platform for leagues on a condensed footprint without the often undesirable experience of slow play experienced in our game Secured Investor group and no capital commitment for Golf Canada Public Facility driven by annual membership fees in addition to public hourly and day use fees.
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