HomeMy WebLinkAbout1990-09-12 Park Board PacketvCITY OF
JEDINA
48u I WEST 50TH STREET, EDINA, MINNESOTA 55424
612-927-8861
EDINA PARK BOARD
8:00 p.m.
September 11, 1990
MANAGER'S CONFERENCE ROOM
A G E N D A
1. Approval of the August 14, 1990 Minutes
4. Fees and Charges
BECAUSE OF PRIMARY ELECTIONS NO PUBLIC MEETING CAN BE HELD BEFORE 8:00 P.M.
THIS IS A STATE LAW.
2.
Edina
Football Association
3.
Golf
Course Report
4. Fees and Charges
BECAUSE OF PRIMARY ELECTIONS NO PUBLIC MEETING CAN BE HELD BEFORE 8:00 P.M.
THIS IS A STATE LAW.
May 2, 1990
To: John Valliere
From: Braemar Golf Association
Proposal: To establish a contingency fund for Braemar Golf Course
Proposed: Establishment and maintenance of a contingency fund in the amount of
$400,000. to insure the financial viability of Braemar Golf Course against adverse
conditions affecting the course. Such fund to be financed wholly out of net income
from Braemar Golf Course annual operations, with half of the net income from each
year dedicated to the reserve until $400,000. is reached.
Rationale #1: Golf Courses are vulnerable to the possibility of severe catastrophes
both natural and man-made. Few are inexpensive to remedy. Due to extremely cold
weather in mid December, 1989, Brookview Golf Course incurred severe damage to
all of its greens, causing the course to be closed for the entire 1990 season to
rebuild the greens. 1N August, 1987, a 13 inch rain flooded much of Braeamok
Golf Course resulting in a loss of approximately $170,000. in lost revenue and
repairs to the course. Also, Braemar has been fortunate, but remains vulnerable
to vandalism that has struck Minikanda, Dellwood and other courses in recent times.
Under certain conditions of temperature and humidity it is possible to lose all
of the grass on the greens in a period of only 24 hours. Greens also can be lost
when they are vulnerable to certain diseases. The cost of replacing turf on the
greens at Hazeltine three years ago was $260,000. Similar losses occurred at]
more than 100 courses in the midwest in the past several years. It is estimated
that it would cost Braemar $180,000. to $200,000. to replace its greens.
Rationale #2: The need to establish a contingency fund is heightened now that
Braemar Golf Course revenue and Golf Dome revenue is committed to pay the entire
amount or the debt retirement on the recently issued revenue bond for the repairs
to Braemar Ice Arena, the new building for the Executive Course and Driving
Range, and the purchase of the Golf Dome. This amounts to $176,225. for 1989.
The Golf Dome will probably be able to cover its own share of the debt retirement
out of earnings. Braemar Golf Course was fortunate last year with few days of
rain and cold weather. The 1991 total debt retirement will be $367,000. plus
the potential of some $68 00 if the Arena is unable to pay its bond indebtedness.
Inclement weather may adversely affect revenues at a potential rate of
$9,000. per day.
Benefits for the City of Edina and Braemar Golf Course:
1. The contingency fund is the city's protection against the possibility
of the golf course suddenly needing a "bailout" because of some unforseen
catastrophe.
Page 2
2. The contingency fund would allow use of "Net -income after operating
expenses and debt service" at the golf course to assure the golf
course management anogolfing patrons that Braemar's revenue
producing needs are protected.
3. The contingency fund would level off at $400,000. It is conceivable
that the contingency fund would need to be replenished up to its ceiling
from time to time as emergency (non operating) needs are met. The
formula for creating the fund can also be used to replenish the fund
to its ceiling.
NOTE: From: John Valliere
To: Edina Park Board
The Braemar Golf Association has gone on record in a unanimous vote
favoring this proposal. The Association solicits a recommendation from
The Park Board to the Edina City Council in approving the
establishment of a contingency fund from the net profits of the
golf course revenues.
THANK YOU
CITY OF EDINA
EDINBOROUGH PARK
1991 ADMINISTRATIVE REVENUES
AMOUNT TOTALS
Interest Income
- Fund Balance 4,857,000 million
- Estimated Interest Income base on 8% $388,560
Association Fees
- Park Plaza 201
Units @$15 per month
Actual Payment
is $3,030 @ 12 months
$ 36,360
- Village Homes
396 Units @$15 per month
Actual Payment
is $5,880 @ 12 months
70,560
- Hawthorn Suites
142 Rooms @$15 per month
25,560
- Village Homes
C.L. 176 Units @$15 per month
Phase I - 46 units
@$15 per month
8,280
Phase II - 46
units @$15 per month
8,280
Phase III - 42
units @$15 per month
7,560
Phase IV - 42
units @$15 per month beginning 4/1/91
5,670
- Corporate East
100,000 sq. ft. @$.21
Actual Payment
is $1,866 @ 12 months
22,392
- Centennial Lakes Retail 150,000 @$.10 per sq. ft.
Actual Payment
is $1,680 per month
20,160
- Centennial Lakes Medical Building
100,000 sq. ft
@$.10
Actual Payment
is $891 @ 12 months
10,692
$215,514
TOTAL ADMINISTRATION REVENUES $604,074
1991 POOL, ICE, TRACK, GREAT HALL REVENUES
General Admission
- Coupon Books 125 books @$22.50 $ 2,813
- A 5% projected increase over 1989 figures of
approximately $67,000 70,350
$ 73,163
Season Tickets
- Increased over 1989 based on new brochure $ 12,000
Merchandise Non- Taxable
- Edinborough Clothing 500
- Towel Income 11000
$ 1,500
Skate Rental
- 6,400 Skate Rentals @ $1.25 $ 8,000
0
Merchandise Taxable
- Art Commissions
$ 2,500
Grants and Awards
- Park Plaza monthly calendar @$1,000 per month
$ 12,000
- Twig $100 per month
1,200
- Pip printing Art openings @$100 per month
1,200
- Nine monthly dances @$250 each
2,250
- MedCenters/Ice Show @$750
750
- Special Events
1,000
$ 18,400
Lesson Income
- Jazzercise $250 X 12 months
$ 4,000
- Skating Program
5,000
$ 9,000
Rental Income
- 90 possible dates 90% or 81 rentals average at
$1,400 each
$113,400
- Beverage service income from rentals $1 per
person, 200 average attendance based on 50 events
10,000
- Caterer Commissions of 3% of gross sales estimates
of $250,000
7,500
- Misc. Hourly Rentals
3,000
- Photo Rentals
1,000
- Kay Zucarro Summer Swim Program
1,000
- Park & Recreation Swim Lessons
1,200
- Don Luger Monthly Breakfast Meetings
5,000
- Swim Club Pool Rental nine months @$360
3,500
$145,600
TOTAL POOL, TRACK, ICE AND GREAT HALL REVENUES
$270,163
1991 CENTENNIAL LAKES REVENUES
Concessions $ 50,000
Skate Rental 5,500
Equipment Rental 2,500
Building Rental Income 2,500
TOTAL CENTENNIAL LAKES REVENUE $ 60,500
n
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CITY OF EDINA
EDINBOROUGH PARK
1991 BUDGET SUMMARY
TOTAL REVENUES AMOUNT
Administration $604,074
Pool, Track, Ice Rink & Great Hall 270,163
Centennial Lakes 60,500
TOTAL REVENUES $934,737
TOTAL EXPENSES
Administration $349,796
Building & Grounds 364,319
Pool, Track, Ice Rink & Great Hall 51,991
Centennial Lakes 135,985
TOTAL EXPENSES $902,092
INCOME BEFORE DEPRECIATION $ 32,645
DEPRECIATION PROVISION (30,000)
NET INCOME (LOSS) 2,645