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Home My WebLink About1988-07-28 Park Board PacketCITU CF EDINA J1 WEST 50TH STREET, EDINA, MINNESOTA 55424 612-927-8861 EDINA PARK BOARD SPECIAL MEETING July 28, 1988 7:30 p.m. Edina City Hall AGENDA I. Consideration of Braemar Arena Pavilion Improvement A. Braemar Park Study II. 1989 Budget Consideration Please bring your Park Survey book to the meeting. Thank you. RECOMMENDATION/REPORT BRAEMAR ARENA PAVILION RENOVATION On July 28, 1988, we opened bids on the Phase II of the Braemar Arena and Pavilion renovation. The results are as follows: COMPANY A B TOTAL EAGAN CONSTRUCTION COMPANY, INC. PENNER DEVELOPMENT, INC. 676,000 316,000 992,000 LOEFFEL-ENGSTRAND COMPANY 696,258 719,000 320,600 303,000 1,016,858 1,022,000 C.O. FIELD COMPANY ARKAY CONSTRUCTION COMPANY 704,000 718,000 322,600 320,000 1,026,600 ADOLFSON AND PETERSON COMPANY 697,200 346,200 1,038,000 1,043,400 MERRIMAC CONSTRUCTION COMPANY 741,599 342,500 1,084,099 HAGMAN CONSTRUCTION COMPANY 792,000 305,000 1,097,000 STEENBERG-HENKEL CONSTRUCTION 796,000 349,400 1,145,400 S.L.K. CORPORATION DEAN AND ASSOCIATES, INC. 865,600 312,000 1,177,600 830,000 468,000 1,298,000 I am recommending that we consider the Eagan Construction Company, Inc. at $1,020,000. This also includes a $28,000 figure for an add alternate for sprinkling of the pavilion over the ice. All the other portions of new construction are sprinkled, but a suggestion to sprinkle over the ice was made by the building department. On Thursday, July 28, a special Park Board meeting was held to consider the overall Braemar Arena Pavilion renovation and a planned suggested list of how to raise revenue to pay off the bonds for the total project. The total project right now stands at $1,819,200. Attached are the Park Board minutes and the discussion that was held on the recommendation of the Park Board to proceed with the total Phase II A and B bid. The Park Board recommendation is as follows: Jim Fee MOVED THAT THE PARK BOARD APPROVE PHASE II A AND B OF THE BRAEMAR PAVILION PROJECT AND THAT WE ALSO APPROVE AS AN OFFSET TO THE EXPENSE THE GOLF PROJECT THAT WOULD INCLUDE NINE HOLES AT BRAEMAR, LOOKING INTO THE POSSIBILITY OF PURCHASING THE GOLF DOME, AND LOOKING INTO THE PURCHASE OF NORMANDALE FROM OPUS. THE PROFITS FROM THE ABOVE GOLF FACILITIES ARE TO OFFSET THE EXPENSE GENERATED BY THE PAVILION PROJECT. Bill Jenkins seconded the motion. MOTION CARRIED UNANIMOUSLY. Bill Lord MOVED THAT THE REVENUES GENERATED BY THE EXISTING BRAEMAR GOLF COURSE FACILITY EXCLUDING THE NEW NINE -HOLE REMAIN WITHIN THAT FACILITY'S BUDGET IF AT ALL POSSIBLE. Mac Thayer seconded the motion. MOTION CARRIED. 10 to 4q The following is a recommendation that could be considered for immediate revenue for paying of bonds which are as follows: New Nine Hole Course Edina Hockey Association Commitment ($15/player x 800) Braemar Figure Skating Club Commitment ($15/player x 100) 1,500 Golf Dome Lease 15,000 Capital Plan ($217,000) 10,000/yr Arena Operation 20.000 $ 120,000 12,000 TOTAL ANNUAL $---178, 500 In this recommendation also is total construction of a new nine hole course with the following budget: Cost of course including irrigation and well $ 1.5 million (one additional maintenance building) REVENUES 35,000 rounds/year @ $11 $ 385,000 OPERATING COSTS Annual Maintenance $ 125,000 Operating Costs (rangers, starters, etc,) 20,000 Debt Service (20 years) 120,000 265,000 NET PROFIT OR (LOSS) $ 120.000 You will also notice in the Park Board minutes that consideration was given to purchasing the golf dome and also trying to acquire the Normandale Golf Course. It also suggested we do not immediately improve the Normandale Golf Course but use the basic revenue that it could produce in its present condition (approximately $60,000). NORMANDALE GOLF COURSE OBSERVATIONS AND RECOMMENDATIONS f0: City Staff FROM: John Valliere DATE: July 28, 1988 I have walked the Normandale Golf Course and looked at the maintenance and clubhouse building. I have talked with Mr. Robert Jankowski who manages Bloomington's Hyland Golf Course. I have visited with Mr. Don Herfort and Mr. Jerry Pirkl, golf course architects, regarding the redesigning and renovation of the Normandale site. I believe there are three questions which need to be addressed from the city's point of view: 1. Is there a need for additional golf facilities in the city of Edina? 2. Is it financially feasible for the city to purchase, redesign, and operate the course so as not to be a burden on the taxpayers? 3. What alternatives could the city use the land for that would be revenue producing instead of removing the property from the tax roles? QUESTION 1 Yes, present golf play is still on the increase. Golf, being primarily an adult recreation and given our city's aging population coupled with more leisure time, will reate an even greater demand on our present golfing facility at Braemar. QUESTION 2 The present course buildings and equipment are in questionable condition. Major expenditures would be required to renovate the fairways, tees, greens, and irrigation system to place the course in an attractive playing condition. The clubhouse is in marginal condition. An outline of these costs are as follows: Course reconstruction on top of peat $ 400,000.00 Clubhouse, moving present one or a new building 80,000.00 (minimal) New maintenance building Equipment to maintain course 50,000.00 Road access and parking ? ? Course hardware and incidentals (signs, ballwasher, benches, etc.) 10,000.00 Maintenance prior to opening Professional services (architectural and engineering) 30,000.00 TOTAL (without land costs) $ 570,000.00 NOTE: Golf course construction costs remain the same whether it is built here or elsewhere. At this location, the course would be smaller than elsewhere, and possibly on more difficult soil conditions. In addition, the layout may be cumbersome, given the surrounding homes and offices. EXPECTED REVENUE AND OPERATING COST Revenue 30,000 rounds @ $5.00 per round Net on food concessions, rentals, equip. sales Approximate total annual income Expenditures Maintenance personnel services (1 full time, 1 full time temporary, 4 seasonal) Maintenance materials (fertilizer, chemicals, repair parts, gas, supplies, etc.) Administration personnel services Supplies (score cards, office, etc.) Utilities (phone, heat, electricity, etc.) Total Expenditures APPROXIMATE NET PROFIT or (loss) before debt service $ 180,000.00 25.000.00 $ 205,000.00 $ 50,000.00 30,000.00 35,000.00 10,000.00 20.000.00 $ 145,000.00 $ 60,000.00 Bloomington's Hyland Golf Course consists of two small courses called an outside and inside nine. These were paid for outright on a general bond issue. The outside course would be comparable to the Normandale Course in length (approximately 1500 yards). The net profit at this facility, which includes two courses, is as follows: 1979 $ 47,800 - 2 courses 1980 33,200 - 2 courses 1981 64,900 - 2 courses 1982 59,500 - 2 courses 1983 55,000 - 2 courses The present green fee on the outside course is $5.30 per round. QUESTION 3 I looked at the aerial of the site to try and determine the feasibility of converting the area to a practice driving range. This would be complete with accouterments of practice sand traps and a putting green. The problem: There does not seem to be 300+ yards of open ground without the interference of the central pond. However, if this could be overcome, it could be a fairly high profit/low maintenance facility. The premise is that you can turn the hitting spot over for $3.00 in 15 to 20 minutes versus $4.50 for 1.5 hours. The next possibility which I explored was a smaller 18 hole pitch and putt course, possibly even 36 holes. This could mean less expensive renovation and upkeep. It would also mean fairly quick turn over in dollars. However, this type of golf is not usually for the serious golfer and appeals to the impulsive person for an hour's recreation. Ideally, it adjoins other recreational facilities or large shopping centers. If run successfully, they are highly profitable. Lighting of such a facility, would greatly expand the income. I did not explore non -golfing revenue producing facilities. The bottom line is approximately $600,000 plus land costs. 0 BRAEMAR GOLF COURSE NEW NINE HOLE FINANCIAL PROJECTION Revenue generation from additional nine holes of golf at Braemar: Cost of course including irrigation and well (one additional maintenance building) Revenues 35,000 rounds/year @ $11 = Operating Costs Annual Maintenance Operating Costs (rangers, starters, etc.) Debt Service (20 year) TOTAL NET PROFIT OR (LOSS) $ 1.5 million $ 125,000 20,000 120,000 $ 385,000 $ 265,000 $ 120,000 Such a course would not be in playable condition until the summer of 1990. BRAEMAR ARENA RENOVATION PHASE II A: Total completion of pavilion with locker rooms and walls B: Complete commons (connecting building) COMPANY A 0 TOTAL EAGAN CONSTRUCTION COMPANY, INC. 676,000 316,000 992,000 PENNER DEVELOPMENT, INC. 696,258 320,600 1,016,858 LOEFFEL-ENGSTRAND COMPANY 719,000 303,000 1,022,000 C.O. FIELD COMPANY 704,000 322,600 1,026,600 ARKAY CONSTRUCTION COMPANY 718,000 320,000 1,038,000 ADOLFSON AND PETERSON COMPANY 697,200 346,200 1,043,400 MERRIMAC CONSTRUCTION COMPANY 741,599 342,500 1,084,099 HAGMAN CONSTRUCTION COMPANY 792,000 305,000 1,097,000 STEENBERG-HENKEL CONSTRUCTION 796,000 349,400 1,145,400 S.L.K. CORPORATION 865,600 312,000 1,177,600 DEAN AND ASSOCIATES, INC. 830,000 468,000 1,298,000 Recommendations: Eagan Construction Company, Inc. 992,000 Recommend that the following be deducted from Eagan's bid: Masonry work on outside of pavilion east and west ends 13,600 Lockers in the figure skating room 6,900 Sound system 15,000 35,500 RECOMMENDED TOTAL EAGAN CONSTRUCTION PHASE I 956,500 PHASE II 691,200 1,647,700 ARCHITECT COST 108,000 TOTAL RENOVATION 1,755,700