Options for the use of the Becky Peirce Municipal Golf Course

Agenda Background & Councilmember prior questions: Ownership history of JHP property? Any deed restrictions associated with property? Development plan/budget for JHP? Recent history of rounds played on the golf course? Fiscal health of other municipal courses in the region (city subsidy for operations)? Two options for use of the land: Option 1 Renovate & re-open the golf course Option 2 Convert land to other recreational uses Questions/Comments

JHP Property History/Restrictions 1940 City acquired 700 acres from the Anderson family. Deed contained no restrictions to use of the property. 1956 Municipal Golf Course constructed. 1956 1963 City acquired additional parcels. 1963 City conveyed property to the Airport Authority and leased back that portion containing the golf course. 1968 City re-acquired property from the airport authority, including the portion containing the golf course. Over the following years several parcels were sold or conveyed to other entities for private or public uses leaving 459 acres in City ownership. 1988 City Council set aside portions of the remaining 459 acres for recreational purposes (Res 88-537). The land containing the golf course is included in the restricted property.

Map of 1940 Land Purchase

Map of 1963 Sale to Airport Authority

1988 & Current JHP Map

JHP Recreational Purpose Dedication (Res. 88-537) That property now owned by the City which is a part of the property known as the Old Huntsville- Madison County Airport, and which has not heretofore been leased on a long term basis, or permanently used for non-recreational municipal purposes, is hereby dedicated in perpetuity to be used only for passive or active recreational purposes.

Facts about John Hunt Park 459 acres of land; 140 acres are the golf course Existing programing: Iceplex (future expansion - $6M - $8M) Events building (future renovation - $2.5M) Kids Space Playground (add accessible area - $150K) Baseball/softball complex Soccer fields (future expansion - $3M - $4M) Tennis complex (on-going expansion - $2M) Planned additions: Volleyball complex ($2.5M) Festival/concert lawn ($750K) On-going work: Building street network ($200K) Piping/filling large drainage ditches ($850K) To be determined: Joe Davis Stadium Golf Course

Background on Closing of Golf Course November 2016: Robertson Golf Management potentially facing bankruptcy; Council votes to terminate contract. January 2017: Golf course closed; City released an RFP for renovation and management of the course. February 2017: City received one response. Bid did not meet minimum criteria and bidder refused opportunity to adjust bid. March 2017: City interviews multiple other golf management companies expressing interest. April 2017: City Council approves Raven Golf to assess feasibility of two options for the golf course.

Rounds Played at BPGC (1999-2016) Rounds Played 1999-2016 54,456 60,000 50,000 40,000 30,000 22,127 20,000 10,000 - CY99 CY00 CY01 CY02 CY03 CY04 CY05 CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 Daily Fee Rounds Passholder Rounds Total CY99 CY00 CY01 CY02 CY03 CY04 CY05 CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 Daily Fee Rounds 36,191 33,462 35,623 31,037 30,025 31,488 29,869 31,217 30,022 29,634 28,380 24,274 25,771 25,554 22,048 20,705 17,331 12,273 Passholder Rounds 18,265 17,019 16,137 17,117 13,907 11,942 13,568 13,536 13,388 12,725 10,781 9,063 9,291 7,713 4,787 6,247 6,382 9,854 Total 54,456 50,481 51,760 48,154 43,932 43,430 43,437 44,753 43,410 42,359 39,161 33,337 35,062 33,267 26,835 26,952 23,713 22,127 * In 2016 there were 89 annual passes sold. Prior year data is not available.

Regional Municipal Course Performance Course Rounds/Yr City Subsidy/Yr Point Mallard (Decatur) 23,000 $200K - $300K Blackberry Trail (Florence) 26,000 $400K Cross Creek (Cullman) 23,000 $150K Ol Colony (Tuscaloosa) 32,000 $160K

Option 1 Defined Renovate the existing 18-hole layout and re-open under professional golf management company.

Option 1 Scope/Cost Estimate Immediate needs: Greens renovation: $285,000 Bunker renovations: $62,000 Tee-box renovations: $28,000 Irrigation system repairs: $84,000 Driving range renovations: $23,000 Temp. cart paths patching: $21,000 Misc course repairs: $75,000 Clubhouse rebuild: $1,500,000 Rebuild bathroom: $210,000 $578,000 Future needs: Repave cart paths: $215,000 Rebuild Driving Range building: $200,000 Rebuild/Upgrade irrigation system: $300,000 Total: $2,288,000

Assumptions COH provides all capital funding and covers any operating losses Significant growth in rounds played per year Market-based pricing model Start renovations no later than end of June

Summary of ProForma Daily Fee Rounds Total Revenue Total Expense Profit/ Loss YR 1 25,000 $798,350 $831,630 ($33,280) YR 2 28,500 $1,012,100 $987,117 $24,983 YR 3 30,000 $1,164,880 $1,039,634 $125,246 YR 4 31,500 $1,517,640 $1,298,465 $195,495 YR 5 33,000 $1,576,890 $1,301,981 $209,481 Pricing Strategy (YR 1 3; increase fees in YR 4) Weekday Weekend* After 3pm 9 Holes: $19.00 $22.00 $18.00 18 Holes: $33.00 $40.00 * Weekend rates apply Fri, Sat, Sun, & Holidays Annual Passes Indiv: $1,200 Senior: $975 Junior: $650 (under 16)

Proposed Timeline Late June - Begin renovations (7 weeks to complete) Aug Sep Grow-in period (8 10 weeks) 1 st week Oct Ready to open* *Note: Ready to Open = Course ready for play. Clubhouse and restrooms in temporary facilities. Limited food & beverage options. Anticipate 18 months to design and build new clubhouse and restroom facilities.

Strengths Location Quality course with challenging layout if maintained properly HSV/Madison County demographics indicate potentially strong golf market HSV/Madison County population growth rate National Golf Foundation models indicate there should be sufficient unmet demand in HSV

Option 2 Alternate Uses Concepts considered resulted from user group requests to Parks & Recreation over the last few years.

Option 2 Defined Convert the land to the following uses: Expanded, lighted golf practice facility Cross Country running track Walking & fitness trail network Mountain bike tracks & training facility Disc golf course Dog park

Facility Scope Golf Practice Facility: Lengthen and widen driving range Add target greens in range Light driving range Re-build building to provide indoor teaching space Refurbish practice greens Create chipping & bunker practice areas Cross country course: 8K & 5K NCAA regulation courses Designed for daily use as well as meeting standards for regional and national races Walking & Fitness Trails Utilize existing cart paths for various length walking trails Install fitness stations along trails Currently 5.8 miles of existing cart paths

Facility Scope, cont. Mountain Bike Trails & Training Facility: Trails around perimeter of property (training & racing) Pump, Jump, and Family Skills tracks Disc golf Course: 18-hole course for recreation and tournament competition Dog Park: Separate fenced areas for large and small dogs

User Group Membership Huntsville Track Club: 2157 members UAH Cross Country/Track team 65 HCS Cross Country Teams 5 teams w/ 160 members Southern Off-road Bicycling Assoc (SORBA): 363 members N. Alabama Mountain Bike Assoc (NAMTBA) represents two National Interscholastic Cycling Assoc teams: 80 members Rocket City Chain Gang (Disc Golf): 200 members

Option 2 Cost Estimate Programmed facility estimated cost: Expanded, lighted golf practice facility $600,000 Cross Country running track $100,000 Walking & fitness trail network $250,000 Mountain bike tracks & training facility $230,000 Disc golf course $30,000 Dog park $40,000 $1,250,000 Other common-use facilities to be considered: Additional restroom $210,000 Large pavilion $225,000

Summary Option 1: Renovate the existing 18-holes and operate as a municipal golf course. Estimated cost (Phase I): $2,288,000 Option 2: Renovate the front 9 holes, create a 6 hole short course, expand the driving range and short game practice facility. Option 2: Alternative uses such as mountain biking, cross country, dog park, walking trails, lighted driving range and more. Estimated cost: $1,250,000

Questions/Comments