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Home My WebLink About1991 - 18 Hole ExpansionCity of Sebastian POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570 SUBJECT: Golf Course Expansion) Agenda No. 9�•30 � Commission Appraisal ) ) Dept. of Origin: City Manager Approved for Submittal By: City Manage EXPENDITURE REQUIRED: $5,500 Date Submitted 10/28/92 For Agenda Of: 11/04/92 Exhibits: - Hanson Appraisal Proposal Dated, 10/19/92 - Armfield-Wagner Proposal Dated, 10/22/92 - Conceptual Drawings by Peter Jones Dated, 10/29/92 AMOUNT BUDGETED: -O - SUMMARY STATEMENT APPROPRIATION REQUIRED: $5,500 At its Regular Workshop Meeting of September 2, 1992, the City Council received the final Golf Course Expansion feasibility report from the Professional Golfers' Association ("PGA"). The PGA report concluded that there is sufficient unmet demand to justify an expansion of the municipal golf course. Further, the report concluded that it is financially feasible to expand the golf course on a self supporting basis. A number of issues were reviewed during the September 2, 1992 City Council Meeting and staff was directed to look at the land issues that were discussed, in particular, Collier Place PUD and the Saint Sebastian PUD. There are a number of objectives which could be met should the City expand its municipal golf course. Specifically, should the City expand the golf course by adding nine (9) holes to the east on the Saint Sebastian PUD property and nine (9) holes to the west on the Collier Place PUD property, the following factors could be taken into consideration: 1. An expansion of the golf course would mean more availability of this fine community amenity. Currently, only one (1) in three (3) building lots in the City is built upon. As our community and surrounding area continues to grow there will be additional demands and additional needs for municipal golf facilities as documented in the PGA report. ga. 30 41 2. An expansion onto both properties would mean upscale residential developments with golf course frontage lots. These lots would lend themselves to a deed restricted type community with mostly privately maintained streets and infrastructure. With higher valuations and lower burdens on infrastructure maintenance, these types of subdivisions have a positive impact on the City's tax base. 3. The City should be able to acquire the property at below fair market value prices. The construction of golf holes will make the surrounding residential properties much more valuable and therefore provide an incentive for the owners to sell the property to the City at a lower price. 4. The expansion of nine (9) holes onto the Collier Place PUD would maintain the City's transportation plan to extend Wimbrow Drive from Main Street to Roseland Road. 5. An expansion of nine (9) holes onto the Saint Sebastian PUD would complement the proposed Airport Community Compatibility and Master Plan. The golf course and airport are currently good neighbors. An expansion of golf holes under the approach of runway 2-7 would provide a compatible land use as required by Florida Statute. 6. A golf course expansion would be very compatible with the sensitive environmental issues of the existing wetlands on the Saint Sebastian PUD and the jurisdictional lines of Collier Creek in the Collier Place PUD. In order to determine the feasibility of a nine (9) hole expansion onto each property, the property owners and the City jointly commissioned Peter Jones, Architect, to prepare conceptual plans. The total cost was $3,000 - $1,500 City and $1,500 property owners. Copies of these conceptual plans are included as exhibits to this memorandum. The next step is to determine a fair market value of the properties in question. An evaluation of the fair market value should include four (4) options: A. Purchase the entire 158 acre tract of the Collier Place PUD for expansion of eighteen (18) holes, B. Purchase of seventy (70) to eighty (80) acres on the Collier Place PUD for the expansion of nine (9) holes, C. Purchase of approximately 150 acres of the Saint Sebastian PUD for the expansion of eighteen (18) holes, and D. Purchase of approximately seventy (70) to eighty (80) acres on the Saint Sebastian PUD for the expansion of nine (9) holes. The properties would be assessed on the basis of raw land only plus an estimate of the enhancement of the property value with the construction of nine (9) holes of golf course on each property. The City solicited proposals from two (2) State Certified Real Estate Appraisal firms. We requested these firms to quote a fee and to provide a profile of their qualifications. Both firms quoted precisely the same fee of $5,500, which includes appraisals of both properties as outlined above. Both firms appear to have sufficient experience and credentials. However, the firm of Armfield-Wagner of Vero Beach, appears to have more on - point experience and seems to have a better understanding of the engagement. The fiscal 1993 budget does not provide an appropriation for these appraisals. However, there are sufficient reserves in the Golf Course Enterprise Fund to cover these costs. RECOMMENDED ACTION Move to approve the engagement of Armfield-Wagner Appraisal & Research, Inc. of Vero Beach to perform property valuation appraisals for possible golf course expansion onto the Collier Place PUD and / or the Saint Sebastian PUD in the amount of $5,500 as outlined in their proposal dated October 22, 1992. ,�W, 3a(/ Special City Council Meeting/Workshop November 4, 1992 Page Nine The City Manager said the County confirmed today with bikepath locations on both sides of CR 512 and the City Engineer said the County's Forester has recommended planting red cedar instead of wax myrtle. MOTION by Oberbeck/Corum I would move that we approve the agreement for the Wentworth Ditch relocation. ROLL CALL: Mr. Oberbeck aye Mrs. Corum aye Dr. Holyk aye Mr. Reid aye Mayor Powell aye MOTION CARRIED 5-0. 92.304/ B. Golf Course Expansion Commission Appraisal (City 91.235 Manager Recommendation dated 10/28/92, Hanson Appraisal Proposal dated 10/19/92, Armfield- Wa ner Proposal dated 10/22/92, Jones Conceptual Drawings dated 10/29/92 [Under Separate Cover]) The City Manager reiterated his recommendation to City Council and explained the need for the appraisal. He said the proposal from Armfield-Wagner best meets the city's needs and that staff is asking for concurrence of City Council to look into whether purchase of land is feasible. Following some discussion, motion was made. MOTION by Holyk/Corum I would move that we hire Armfield-Wagner to appraise the property for the proposed Golf Course expansion. ROLL CALL: Mrs. Corum aye Dr. Holyk aye Mr. Reid aye Mayor Powell nay Mr. Oberbeck nay MOTION CARRIED 3-2 (Powell, Oberbeck - nay) Mr. Oberbeck was excused from 10:19 p.m. to 10:20 p.m. 01 City of Sebastian POST OFFICE BOX 780127 o SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 FAX 407-589-5570 DATE: February 14, 1992 TO: P.G.A. Services., Attention John Rossi FROM: Jim DeLarme, Pro/Manager) RE: Feasibility Study John, as you know the Council accepted task two (2) of the feasibility study on February 12, 1992. The Council also approved proceeding to task three (3) of the study. This memo is to reaffirm these facts in order that you may begin task three (3). The purchase order number is 3162. The information you requested on rounds and my latest Golf Course revenue summary (October 91), for this fiscal year are enclosed. c: Robert S. McClary, City Manager c: Kathryn O'Halloran, City Clerk JFD/eeh City of Sebastian POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570 SUBJECT: Golf Course Expansion Approval For Submittal By: City Manager Agenda No. , 23 Dept. Origin: Golf o e Date Submitted: 1/30/92 For Agenda Of: 2/12/92 Exhibits: PGA Report Dated dated 1/10/92 i ) EXPENDITURE AMOUNT APPROPRIATION REQUIRED: BUDGETED: REQUIRED: SUMMARY STATEMENT The Professional Golfers' Association ("PGA") was engaged by the City to perform a market analysis and feasibility study for expansion of the Sebastian Municipal Golf Course. Task 1 of the PGA, the overall market assessment, was reviewed by City Council on 12/11/91. The PGA has now completed Task 2, Proposed Golf Facility Market Analysis. Mr. John J. Rossi will be present at the 2/12/92 City Council Meeting to present this report and respond to questions, concerns or comments from the City Council. ACTION Review the Task 2 report by the Professional Golfers' Association and, if appropriate, to authorize the PGA to proceed with Task 3 of their contract for preliminary financial projections for expansion of the golf course. 9r. 23s Regular City Council Meeting February 12, 1992 Page Ten MOTION by Oberbeck/Holyk I move to accept task 2 and authorize the PGA to move onto task 3. ROLL CALL: Councilman Powell aye Councilman Reid aye Mayor Conyers aye Councilman Holyk aye Vice Mayor Oberbeck aye MOTION CARRIED 5-0. 92.054 B. Ms. Marilyn Switchkow, CPA = Hoyman, Dobson & Co. - Fiscal 1991 Audit Report (Audit Report Under Separate Cover) Tom Kirk, Hoyman, Dobson & Co., presented the audit report. 11. MAYOR'S MATTERS Mayor Conyers said he'd like to revisit city employee insurance and the Elkcam Dam issue. 92.055 A. Proposed Shooting and Destination Range (Conyers Letter dated 1/27/92, Olberman Proposal, Map, Pi Article) Mayor Conyers presented a proposal for a north county shooting range and a brief discussion followed. MOTION by Reid/Powell I move that the Council adopt a resolution in support of building such a firing range on the Coraci property. ROLL CALL: Councilman Reid aye — Mayor Conyers aye Councilman Holyk aye Vice Mayor Oberbeck aye Councilman Powell aye MOTION CARRIED 5-0. Vice Mayor Oberbeck was excused from 9:11 p.m, to 9:12 p.m. 10 Regular City Council Meeting February 12, 1992 Page Nine Complex. He said there will be additional electrical service charges for tie-in. MOTION by Oberbeck/Holyk I move to approve item D of the consent agenda. ROLL CALL: Councilman Holyk aye Vice Mayor Oberbeck aye Councilman Powell aye Councilman Reid aye Mayor Conyers aye MOTION CARRIED 5-0. Item E Mayor Conyers reiterated his concern for waiving bids. The Director of Community Development said this was bid, however, none were received at that time. MOTION by Conyers/Oberbeck I move to accept item E of the consent agenda. ROLL CALL: Vice Mayor Oberbeck aye Councilman Powell aye Councilman Reid aye Mayor Conyers aye Councilman Holyk aye MOTION CARRIED 5-0. 10. PRESENTATIONS 9.1.235 A. Mr. John Rossi, PGA - Task 2 - Proposed Golf Facility Market Analysis (Staff Recommendation dated -1/30/92, PGA Report dated 1/10/92) John Rossi presented the Task 2 Report on proposed Golf Course expansion and a Council discussion ensued. The City Manager said, since excluded from the PGA proposal, it is his intent to solicit a proposal from the original Golf Course architect to prepare construction estimates. TAPE II - SIDE I 0 City of Sebastian POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570 M E M O R A N D U M DATE: August 26, 1992 TO: Lonnie R. Powell, Mayor & Sebastian City Council FROM: Robert S. McClaryA.. RE: Golf Course Expansion Attached are two (2) reports regarding the possible expansion of the Sebastian Municipal Golf Course. One report is the Market Study and Financial Analysis prepared by the PGA and the other report was prepared by Charles F. Ankrom, Inc., and projects typical construction costs to expand an existing eighteen (18) hole golf course to either twenty-seven (27) or thirty-six (36) holes. Staff has not yet completed its review of these documents and at this time is not prepared to make specific recommendations. However, we do plan to schedule a review of these reports at the September 2, 1992 City Council Workshop Meeting. /jmt Attachment T H E P R 0 C- E S S 1 0 N A L G O I. P Ii R s 100 AVENUE OF THE CHAMPIONS Box 109601 PALM BEACH GARDENS FLORIDA 33410-9601 TELEPHONE: (407) 624-8400 FAx: (407) 624-8452 RICHARD N. SMITH President GARY L. SCHAAL Vice President THOMAS H. ADDIS Ill Secretary PATRICK J. RIELLY Honorary President )1.f L. AWTREY Executive DirectorlCEO Making your golf game better Making golf a better game July 24, 1992 Mr. Robert S. McClary City Manager City of Sebastian P.O. Box 780127 Sebastian, FL 32978 Dear Rob: A S S O C I :A T 1 0 A O P A \I E R I C A C� Ln ed Cn ikece ee CtY *14 Ma g co o 0 Enclosed are 10 copies of our report entitled "Golf Facility Expansion - Market Study and Financial Analysis." We wish to thank you, Jim, Mike, and Larry for your courtesy and assistance in providing necessary information during the course of the project. It was a pleasure working with you. Please let me know when the council presentation is scheduled. Don't hesitate to contact me if you have any questions or need additional information. Best regards, Johfi J. Rossi PrGOLF SERVICE, INC. JJR/ylc Enclosures MEMORANDUM TO: City of Sebastian FROM: PGA Golf Services, Inc. DATE: November 25, 1991 SUBJECT: Sebastian Golf Course Expansion Preliminary Market Planning and Market Assessment The City of Sebastian is considering the expansion of its 18 -hole regulation golf course and related facilities. The existing facility was constructed in 1980. In 1990-91, the facility accommodated a total of 73,800 starts (9 -hole and 18 -hole rounds). The golf facility offers annual memberships to residents and non-residents. At the end of the 1990-91 season, there were 340 memberships (510 individuals). Member play constituted 48 percent of total play during the year. This memorandum outlines our findings and conclusions as a result of a preliminary planning review and overall market assessment of the market area served by the existing facility and any future expansion of the facility. This memorandum summarizes our activities as part of Task 1 of a detailed market analysis and financial feasibility study for an addition to the facility. The specific goals of Task 1 of the project were to: o Assess all relevant project plans and documents as well as appropriate demographic and economic data and projections for the area. o Determine key issues and objectives based on discussions with city staff, golf course operators and others in the market area. o Define the market area for the Sebastian facility based on demand sectors, travel patterns and area perceptions. o Identify the existing golf supply with emphasis on competitive facilities and how they effect the Sebastian market area. o Estimate overall market demand within the Sebastian market area. This memorandum summarizes an assessment of overall market support for golf facilities in the Sebastian market area. Subsequent study is required to determine specific market penetration rates, fee structures and the financial feasibility of any expansion. This document should be used for intemal planning purposes and should not be construed as a complete market analysis and financial feasibility study. Such activities are to be conducted as part of subsequent tasks of this project. AREA GOLF SUPPLY An analysis of all golf facilities with Indian River, Brevard, and St. Lucie Counties was undertaken to determine the distribution of facilities by type (i.e. public or private access) and current level of play (rounds) in relation to their distance from the Sebastian site. The Sebastian golf course and potential expansion sites(s) are located within the city boundaries in northern Indian River County, approximately Sebastian Golf Course Expansion Preliminary Planning Review and Market Assessment Page 2 1 mile west of U.S. Highway 1 and 4 miles northeast of the Sebastian and Fellsmere exit from 1-95. The site is located to the south of the Sebastian Airport. The table below summarizes the existing golf facilities and estimated 1990-91 rounds of golf played in each of the three counties. County Facilities Holes Rounds Indian River 17 342 604,900 Brevard 20 369 846,000 St. Lucie 13 252 455,500 Source: PGA Detailed listings of all facilities are included in the Appendix Tables A-1, A-2, and A-3. Table A-4 summarizes the number of golf holes based on 10 mile distance increments from the Sebastian site. There are a total of 576 holes of golf within a 30 mile radius of the Sebastian site. Of these, 396 holes are within 20 miles of Sebastian. In 1990-91, and estimated 1.13 million rounds of golf were played at facilities within 30 miles of Sebastian. About 689,000 rounds were played at facilities within 20 miles of the Sebastian site. See Table A-5. The existing golf facility inventory was analyzed to determine the number of public rounds of golf played in the three county area. Public play varies considerably among the three counties. In Indian River County, 43 percent of the play, or 259,000 rounds, is estimated to be 'public play'. This is defined as a non-member round of golf at either public or private access facilities. In Brevard County to the north, public play totalled an estimated 402,000 rounds, about 48 percent of total play. St. Lucie County had an estimated 80,000 rounds of public play or 17 percent of total rounds. This is due few public access facilities in the county. A new public facility, developed by St. Lucie County (Fairwinds Golf Course), is scheduled to open in December. It is located north of Fort Pierce in the northern portion of the County. There are two other public facilities which will affect play in the Sebastian area. Since they were not open during the 1990-91 period, no rounds were included in the totals cited. The Habitat golf facility is located in southern Brevard County about 12 miles north of Sebastian. It opened in October 1991 and is owned and operated by Brevard County. An 18 -hole addition is proposed at Sand Ridge (Indian River County facility). We understand that bonds have been issued and construction is imminent. Tables A-1, A-2, and A-3 summarize the public and private play estimates and number of members at all facilities. MARKET AREA DEFINITION The market area for a golf facility is strongly influenced by area travel and development patterns. Development in all three counties has occurred linearly along the Atlantic Ocean and Intracoastal Waterway. Interstate 95, the major access road to the region, runs between 5 and 10 miles west of the Intracoastal Waterway. The major population centers are located on the mainland. These include Sebastian Golf Course Expansion Preliminary Planning Review and Market Assessment Page 3 the cities of Sebastian and Vero Beach in Indian River County. In Brevard County, the major centers are Palm City, Melbourne, Cocoa, and Titusville. In St. Lucie County, the centers are Fort Pierce and Port St. Lucie. Given the location of the Sebastian site and area travel patterns, the primary market area is defined as that area within a 20 -mile radius of the site. This equates to about a 20-25 mile driving distance of the site. The primary market area is the area from which the majority of play will be drawn. The 20 mile radius includes Vero Beach and the southern portion of Indian River County, the northernmost portion of St. Lucie County, and the southern portion of Brevard County including the City of Palm Bay and the major populated areas in the City of Melbourne. The market area also includes the beach communities within the 20 -mile radius. AREA DEMOGRAPHICS Area demographics were reviewed to determine overall levels of population and their age and income characteristics. These serve as a basis for estimating the overall level of demand for golf in the area. Total population in Indian River and Brevard Counties in 1990 was 489,000 persons. This is estimated to increase to 565,000 persons by 1995, a five year growth rate of 17 percent. Preliminary population estimates in the 20 -mile market area are 250,000 persons. Population is estimated to increase to about 290,000 persons by 1995. These projections may be overstated given the lingering recession of 1990- 91. Nevertheless, steady and strong growth is apparent in the two county area, particularly in southern Brevard County. OVERALL MARKET SUPPORT Based on the age and income characteristics of the population, estimates for the total demand for golf were prepared. Age and income characteristics reflect an older population with moderate incomes. However caution is necessary in interpreting this data. For example, in Indian River County, there are a number of exclusive high income enclaves in the coastal area as well a low income areas in the outlying areas of the County. Given the size of Indian River County, averages should be carefully used. Within Brevard County with a much larger population base, there continues to be an influx of younger moderate income facilities along with a growing retiree population. Thus in determining golfer participation rates and play rates, careful attention needs to be paid to household age and income distributions. For purposes of this analysis, a range of participation rates was considered to estimate the overall level of support for an additional golf facility. These assumptions take into account national, regional and state participation and frequency of play rates. The basic assumptions used were golfer participation rates of 8-10 percent (population over 5 years of age) and an average public frequency of play of about 18 rounds per year (non-member play). In addition, assumptions of 20 and 25 percent of year round resident play were incorporated in the estimates of demand to account for golf play by seasonal residents and visitors to the area. Estimates of unmet demand, that is rounds of golf not being accommodated by existing facilities were prepared 1991 and 1995. A number of assumptions were made regarding the construction of new facilities during 1991-1995 and were factored in the estimate of unmet demand for 1995. The assumptions included the completion of the Sand Ridge and Fairwinds (St. Lucie County) facilities, the completion of an expansion at Barefoot Bay, the construction of two other privately owned daily fee facilities, and the completion of the private facility at Windsor. In total, these facilities can be expected to draw about 115,000 rounds from the Sebastian market area. The table below summarizes the overall, demand analysis under Sebastian Golf Course Expansion Preliminary Planning Review and Market Assessment Page 4 various assumptions, including the new facilities. Projected rounds for an expanded Sebastian facility are not included in the estimate of unmet demand. Thus these estimates represent rounds available to the Sebastian facility. Summary of Unmet Market Demand (Golf Rounds) 20 -Mile Market Area Sebastian Golf Facility Source: PGA Within the market area, under a 8 percent participation rate and 20 percent seasonality factor, it is estimated that there is an estimated total demand for about 400,000 rounds of golf in the market area. Existing facilities accommodate about 338,000 rounds. Allowing for an increase of play of 10 percent at existing facilities, there is an estimated unmet demand of about 62,000 rounds in the Sebastian market area at present. Using a higher participation rate of 10 percent, which is appropriate for the market place, with the low seasonality assumption, total demand is about 500,000 rounds, leaving an unmet demand of about 162,000 rounds. See above table. By 1995, with the addition of the facilities mentioned above, under an 8 percent participation and low seasonality assumption, total demand is 481,000 rounds. The existing 1991 supply accommodates 338,000 rounds and the new facilities accommodate 115,000 rounds from the market area. Thus, unmet demand is estimated at 28,000 rounds. At a 10 percent participation rate, unmet demand is estimated at 148,000 rounds. With an increased seasonality factor (25%), unmet demand is estimated at 173,000 rounds. While no specific participation rate studies have been completed for the Sebastian market area, given the income and age structure of the population, a participation rate of about 10 percent appears reasonable. Thus, in a best case scenario, an additional facility could be supported by the market including the additional facilities mentioned above. Under a worst case scenario (lowest participation rate), a new facility would be partially supported by the existing market. SUMMARY The Sebastian market area will continue to grow at a healthy rate during the 1990's, although rates in the 1990-95 period will be somewhat more modest as a result of the current recession. Public demand for golf will continue to grow. Recognizing this, local governments in all three counties have recently added or are in the process of adding public golf facilities. Despite the increasing supply of public golf facilities which will draw from the market area, under reasonable participation assumptions, there appears to be support for an additional golf facility in the Sebastian market area at present and in 1995. However, the Sebastian facility will be competing `head 1991 1991 1995 1995 Seasonality 200% 25% 20% 25% Participation Rate 8 % 62,275 78,960 28,223 48,281 9 % 112,331 131,102 88,398 110,964 10 % 162,387 183,244 148,573 173,646 Source: PGA Within the market area, under a 8 percent participation rate and 20 percent seasonality factor, it is estimated that there is an estimated total demand for about 400,000 rounds of golf in the market area. Existing facilities accommodate about 338,000 rounds. Allowing for an increase of play of 10 percent at existing facilities, there is an estimated unmet demand of about 62,000 rounds in the Sebastian market area at present. Using a higher participation rate of 10 percent, which is appropriate for the market place, with the low seasonality assumption, total demand is about 500,000 rounds, leaving an unmet demand of about 162,000 rounds. See above table. By 1995, with the addition of the facilities mentioned above, under an 8 percent participation and low seasonality assumption, total demand is 481,000 rounds. The existing 1991 supply accommodates 338,000 rounds and the new facilities accommodate 115,000 rounds from the market area. Thus, unmet demand is estimated at 28,000 rounds. At a 10 percent participation rate, unmet demand is estimated at 148,000 rounds. With an increased seasonality factor (25%), unmet demand is estimated at 173,000 rounds. While no specific participation rate studies have been completed for the Sebastian market area, given the income and age structure of the population, a participation rate of about 10 percent appears reasonable. Thus, in a best case scenario, an additional facility could be supported by the market including the additional facilities mentioned above. Under a worst case scenario (lowest participation rate), a new facility would be partially supported by the existing market. SUMMARY The Sebastian market area will continue to grow at a healthy rate during the 1990's, although rates in the 1990-95 period will be somewhat more modest as a result of the current recession. Public demand for golf will continue to grow. Recognizing this, local governments in all three counties have recently added or are in the process of adding public golf facilities. Despite the increasing supply of public golf facilities which will draw from the market area, under reasonable participation assumptions, there appears to be support for an additional golf facility in the Sebastian market area at present and in 1995. However, the Sebastian facility will be competing `head Sebastian Goff Course Expansion Preliminary Planning Review and Market Assessment Page 5 on' with the new Habitat facility and the proposed expansion at Sand Ridge in Vero Beach. Should some of the private facilities included in the projections fail to develop, then the Sebastian facility market position will be enhanced. This is possible given the difficulty of securing private financing for real estate developments throughout the United States. The city can consider phasing of the development (9 -holes at a time), depending on the availability and cost of land for an expansion. The city can expect to realize certain 'economies of scale' because of the existing facility which will serve to reduce operational and development expense. These costs and savings factors will influence the financial performance of an expanded facility. Such considerations should be taken into account as part of subsequent tasks of this project. We were asked to address the advisability of developing an 'executive' golf facility due to potential land limitations. Executive courses, because of their shorter length, use about one-half the amount of land used by a regulation length 18 -hole facility. Executive courses are well accepted in the market place and are popular among senior golfers. However, since many of the competitive daily fee facilities are executive courses, and the newer public facilities are regulation length courses, the city should consider the development of a regulation facility with a variety of tee placements to permit both a short and long game. This would satisfy a wider market and yet maintain competitiveness with regulation length facilities. The existing Sebastian facility can be a marketing asset. By maintaining a strong market position with the existing facility, the expansion will be able to capture unmet demand more rapidly than a completely new facility. In summary, our preliminary planning review and market assessment supports further investigation by undertaking the detailed market analysis and financial feasibility tasks as outlined as Tasks 2 through 4 of our work program. semkt001. � y La t0� O O N C W� N O CM) 00to IoOOtoOOOO 00 h U O OO � �O C6 C6(6.1i = O n. 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im CL CL (D 70 LLw'cc20-z- 12 7u) ti a - O CD to CO M O CO CO M T c0'') 1% u U W U J Fa - 0 Table A-4 Number of Rounds -1991 Indian River, Brevard, and St. Lucie Counties 10 11-20 21-30 FCSEBDSI llasror 21:00:57 41-50 51+ TOTAL Driving Distance From Site (miles) 7% Tyne 10 11-20 21-30 31-40 41-50 51+ TOTAL Municipal 135,900 0 212,000 70,000 45,000 0 462,900 Daily Fee 30,000 205,000 132,000 89,000 125,000 40,000 621,000 Non -Equity 64,000 85,000 70,000 179,500 0 70,000 468,500 Equity 6,000 163,000 25,000 110,000 50,000 0 354,000 Totals 235,900 453,000 439,000 448,500 220,000 110,000 Percent Distribution 12% 24% 23% 24% 12% 6% 100% 18 -hole equivalent rounds PERCENT DISTRIBUTIO Rounds Driving Distance From Site (miles) Type 10 11-20 21-30 31-40 41-50 51+ TOTAL Municipal 7% 0% 11% 4% 2% 0% 24% Daily Fee 2% 11% 7% 5% 7% 2% 33% Non -Equity 3% 4% 4% 9% 0% 4% 25% Equity 0% 9% 1% 6% 3% 0% 19% Totals 12% 24% 23% 24% 12% 6% 100% CUM 36% 59% 83% 94% 100% FREQUENCY Driving Distance From Site (miles) Type 10 11-20 21-30 31-40 41-50 51+ TOTAL Municipal 2 1 4 1 1 0 9 Daily Fee 1 4 3 2 2 1 13 Non -Equity 1 3 2 6 0 2 14 Equity 1 7 1 3 2 0 14 Totals 5 15 10 12 5 3 50 Cumulative 20 30 42 47 50 ource: Table A-5 Number of Holes -1991 Indian River, Brevard, and St. Lucie Counties FGSE"I 11125191 21:11:05 Driving Distance From Site (miles) Type 10 11-20 21-30 31-40 41-50 51+ TOTAL Municipal 36 18 72 18 18 0 162 Daily Fee 18 72 54 36 54 18 252 Non -Equity 18 54 36 90 0 36 234 Equity 18 162 18 81 36 0 315 Totals 90 306 180 225 108 54 963 Percent Distribution 9% 32% 19% 23% 11% 6% 100% 18 -hole equivalent rounds PERCENT DISTRIBUTIO Holes Driving Distance From Site (miles) Type 10 11-20 21-30 31-40 41-50 51+ TOTAL Municipal 4% 2% 7% 2% 2% 0% 17% Daily Fee 2% 7% 6% 4% 6% 2% 26% Non -Equity 2% 6% 4% 9% 0% 4% 24% Equity 2% 17% 2% 8% 4% 0% 33% Totals 9% 32% 19% 23°x6 11% 6% 100% CUM 41% 60% 83°x6 94% 100% FREQUENCY Driving Distance From Site (miles) Type 10 11-20 21-30 31-40 41-50 51+ TOTAL Municipal 2 1 4 1 1 0 9 Daily Fee 1 4 3 2 2 1 13 Non -Equity 1 3 2 6 0 2 14 Equity 1 7 1 3 2 0 14 Totals 5 15 10 12 5 3 50 Cumulative 20 30 42 47 50 Source: PUA Table A-6 Number of Market R - 1991 Indian River, Brevard, and St. Lucie Counties Driving Distance From Site (miles) FCSFBDSI 1123/91 21:14:20 Type 10 Driving Distance From Site (miles) 21-30 31-40 Type 10 11-20 21-30 31-40 41-50 51+ TOTAL Municipal 122,020 0 92,000 14,000 4,500 0 232,520 Daily Fee 21,000 125,000 50,100 13,900 3,000 0 213,000 Non -Equity 57,600 45,000 23,000 28,200 0 0 153,800 Equity 4,800 113,100 0 29,500 7,500 0 154,900 Totals 205,420 283,100 165,100 85,600 15,000 0 754,220 Percent 100% FREQUENCY Distribution 27% 38% 22% 11% 2% 0% 100% ' 18 -hole equivalent rounds PERCENT DISTRIBUTIO Market Rounds Source: PUA Driving Distance From Site (miles) Type 10 11-20 21-30 31-40 41-50 51+ TOTAL Municipal 16% 0% 12% 2% 1 % 0% 31% Daily Fee 3% 17% 7% 2% 0% 0% 28% Non -Equity 8% 6% 3% 4% 0% 0% 20% Equity 1% 15% 0% 4% 1% 0% 21% Totals 27% 38% 22% 11% 2% 0% 100% CUM 65% 87% 98% 100% 100% FREQUENCY Driving Distance From Site (miles) Type 10 11-20 21-30 31-40 41-50 51+ TOTAL Municipal 2 1 4 1 1 0 9 Daily Fee 1 4 3 2 2 1 13 Non -Equity 1 3 2 6 0 2 14 Equity 1 7 1 3 2 0 14 Totals 5 15 10 12 5 3 50 Cumulative 20 30 42 47 50 Source: PUA MEMORANDUM TO: City of Sebastian FROM: PGA Goff Services, Inc. DATE: January 10, 1992 SUBJECT: Sebastian Golf Course Expansion Task 2 - Proposed Goff Facility Market Analysis INTRODUCTION This memorandum summarizes our findings and conclusions regarding a facility market analysis for the proposed expansion of the City of Sebastian's 18 -hole regulation golf course and related facilities. The existing facility was constructed in 1980. In 1990-91. the facility accommodated a total of 73,800 starts (9 -hole and 18 -hole rounds). The golf facility offers annual memberships to residents and non-residents. At the end of the 1990-91 season, there were 340 memberships (510 individuals). Member play constituted 48 percent of total play during the year. This memorandum summarizes our activities as part of Task 2 of a detailed market and financial analysis for the proposed addition to the facility. A memorandum presenting the results of a market assessment was prepared in November 1991 and indicated that a detailed market analysis was warranted based on the overall level of demand and supply for golf facilities in the market area. The specific goals of Task 2 of the project were to: o Analyze the proposed site(s) to determine the appropriateness of the site's configuration for the expanded golf facility as well as access from the market area. o Analyze the competitive golf supply in the market area (existing and proposed facilities). o Project current and future demand for the proposed expansion based on market area demographics. o Develop projections of facility utilization and proposed rate structures. o Develop recommendations for the facility to serve as a basis for subsequent financial projections (to be prepared as part of Task 3 of this study), and development cost estimates to be prepared by others. This memorandum presents a summary of one of a series of tasks in the overall market analysis and financial feasibility study. The overall study is incomplete. Subsequent study is required to determine the financial feasibility of any expansion. As such, this document should be used for internal planning purposes and should not be construed as a complete market analysis and financial feasibility study. Sebastian Goff Course Expansion January 10, 1992 Page 2 RECAP - TASK 1 - MARKET ASSESSMENT This section of the memorandum summarizes key findings as a result of previous work tasks. Please refer to the prior memorandum for more detail. The primary market area for the proposed facility was defined as that area within a 20 mile radius of the site. The primary market area is that area from which the majority of play will be drawn. This equates to an area within a 20-25 mile driving distance of the site. The 20 -mile area includes Vero Beach, the northernmost portion of St. Lucie County, and the souther portion of Brevard County including the City of Palm Bay and the major populated areas of the City of Melbourne. In addition to the 20 mile radius, demographic data and the golf supply was analyzed for a 25 and 30 mile radius and for the counties as a whole. The market area is expected to grow a healthy rate in the 1990's. Existing public golf facilities do not meet current golf demand and public demand for golf will continue to grow in the market area. Despite the increasing supply of facilities in the market area which have been recently been completed or are anticipated in the near future, the market assessment indicated support for an additional 18 -hole facility at the Sebastian site from the standpoint of market demand. This memorandum presents the detailed market analysis for the proposed expansion. DETAILED MARKET AREA DEMOGRAPHIC ANALYSIS Population. Household Income. and Median Aqe Tables 1, 2, and 3 on the following page summarize population estimates and projections for the area within a 20, 25, and 30 radius of the site. Current population within a 20 -mile radius is estimated at 207,000 persons. This is projected to grow to 253,000 person by 1996, a 22 percent increase over the 5 year period. Within a 25 mile radius, the current population of 266,000 persons is expected to grow to 339,000 persons, an 18.6 percent increase by 1996. During the same period, Indian River and Brevard Counties are expected to grow at a rate of 16 percent. Average household income within 20, 25 and 30 miles of the site was estimated at about $36,500 (1991). It is projected to increase to about $45,000 by 1996. Countywide average household incomes are higher with Indian River County at $39,000 and Brevard County at $38,200. Median age of the population within a 20 and 25 mile radius of the site is approximately 40 years, well below the Indian River County median of 45 years and slightly above the 38.3 year median of Brevard County. In summary, the primary market area can be described a having a higher population growth rate, lower average household income and a median age higher than that of Brevard County, but well below that of Indian River County as a whole. The data reflects the demographics of Indian River County being offset by the somewhat younger and middle income characteristics of the population in southern Brevard County (Palm Bay and the southern portions of the City of Melbourne). Sebastian Golf Course Expansion January 10, 1992 Page 3 Table 1 - Population Estimates and Projections - 1980-1996 Florida (000) 9,746 13,266 14,901 12.3% Source: NPDC SEBDEM01 01/20192 Table 2 - Average Household Income - 1990 18:30:56 Area/Group 1991 1996 20;(�Ilile.Ring Percent 25 Mile Ring 36,774 45,296 Change Area 1980 1991 1996 1991-96 20 Mile Ring 107;458 :206,870 252,718. 22`2% 25 Mile Ring 171,672 286,489 339,653 18.6% 30 Mile Ring 243,561 377,799 440,349 16.6% Indian River Cnty 59,896 93,228 108,272 16.1% Brevard County 272,959 412,196 478,030 16.0% St. Lucie County 87,182 156,636 188,862 20.6% Florida (000) 9,746 13,266 14,901 12.3% Source: NPDC SEBDEM01 01/20192 Table 2 - Average Household Income - 1990 18:30:56 Area/Group 1991 1996 20;(�Ilile.Ring 536;806;;':::::;$45;153;`: 25 Mile Ring 36,774 45,296 30 Mile Ring 36,541 45,433 Indian River Cnty 39,041 48,659 Brevard County 38,295 47,681 St. Lucie County 32,409 40,122 State of Florida 38,037 48,693 United States 36,474 45,584 US Golfers 45,100 NA Source: NPDC, NGF Table 3 - Median Age(years) - 1991 Area/Group 1991 20 Mile Ring 40.4 25 Mile Ring 39.9 30 Mile Ring 39.0 Indian River Cnty 45.1 Brevard County 38.3 St. Lucie County 39.2 State of Florida 38.2 United States 33.1 US Golfers 34.9 Source: NPDC, NGF Sebastian Golf Course Expansion January 10, 1992 Page 4 Household Age and Income Distribution Household age and income distributions were analyzed for the primary market area and the area within a 25 mile radius to determine growth trends in various age and income categories. This data was used to prepare estimates of current and potential golfers in the respective study areas and thus determine the potential demand for golf. Figures 1 and 2 display the number of households by age and income for 1991 and 1996 within the primary market area. Major increases are projected for households with heads in the 35-54 year age categories and in income ranges above $35,000. Total households are projected to increase from 85,500 to 108,600 by 1996. Tables A-1 and A-2 present the detailed information on households. Golfer Population and Public Golf Rounds Household data was converted to population living in households to develop estimates of potential golfers. Using 1990 State of Florida golf participation rates (by age and income group), current golfer population is estimated at between 20,700 and 23,000 golfers in the primary market area. This reflects an overall golfer participation rate of between 11.2 percent and 10.7 percent (population over 5 years of age). The 1989 national average was 10.8 percent. By 1996, the golfer population is projected to range between 25,000 to 30,000 golfers in the primary market area. The range estimate reflects projection sets based on age and income, with the income based projections producing higher participation rates. An estimate of the number of public golf rounds played was developed using State of Florida rates for age and income groups. The resultant estimates ranged between 17.7 and 19.0 public rounds per golfer on an annual basis. Table 4 presents the estimated golfer population, participation rates and average public golf round play. Sebastian Golf Course Expansion January 10, 1992 Page 5 V) 0 0 O 22 20 18 16 14 12 10 8 6 4 2 n 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 n Figure 1 Head of Household Age Distribution - Market Area 1991-1996 117.5\M.7._.\ M5.:.\ M..7.: 5M..3\ M_.e\ 0:.:\ 0ZZX0 M W..\ 1 25-34 45-54 60-64 70-74 80+ AGE GROUP (AGDS201 ® 1991 ® 1996 Figure 2 Household Income Distribution - Market Area 1991-1996 ��.\�.��..d\moi._\�� ►\��.SV �gK•N�.vSV��.LS�\mss\mss ��ii7iIIZC1 7.5-14.9 20.-24.9 30.0-34.9 40.0-49.9 75.0+ HH INCOME GROUP [INDS20M] ® 1991 ® 1996 Sebastian Golf Course Expansion January 10, 1992 Page 6 Table 4 SSHH2OMI Golf Participation and Frequency of Play Assumptions 01120/92 20 Mile Ring Household Population 20,767 25,112 Percent Income Distribution 221 266 Change Income Group 1991 1996 1991-1996 TOTAL 203,894 249,256 222% Under $10,000 23,440 21,614 -7.8% $ 10,000-$14,999 20,578 17,863 -13.2% $ 15,000-$24,999 40,634 43,799 7.8% $ 25,000-$34,999 36,396 37,850 4.0% $ 35,000-$49,999 37,986 46,600 227% $ 50,000-$74,999 29,194 44,774 53.4% $ 75,000 and over 15,666 36,758 134.6% Potential Golfers Based on Income PARTICIPATION RATES 11.28% 1216% 7.7% Potential Public Golf Rounds - Based on Income 20,767 25,112 Percent 5-11 221 266 Change Income Group 1991 1996 1991-1996 TOTAL 23,008 30,297 31.7% Under $10,000 1,081 996 -7.8% $ 10,000-$14,999 1,097 952 -13.2% $ 15,000-$24,999 3,913 4,218 7.8% $ 25,000-$34,999 4,113 4,277 4.0% $ 35,000-$49,999 5,781 7,092 22.7% $ 50,000-$74,999 4,575 7,016 53.4% $ 75,000 and over 2,449 5,745 134.6% PARTICIPATION RATES 11.28% 1216% 7.7% Potential Public Golf Rounds - Based on Income AVERAGE PUBLIC ROUNDS 18.42 17.73 -3.8% Source: NPOG. PGA, NGF Acle Distrbution 20,767 25,112 Percent 5-11 221 266 Change Income Group 1991 1996 1991-1996 TOTAL 423,889 537,128 26.7% Under $10,000 14,793 13,641 -7.8% $ 10,000-$14,999 28,616 24,840 -13.2% $ 15,000-$24,999 102,874 110,886 7.8% $ 25,000-$34,999 70,246 73,052 4.0% $ 35,000-$49,999 101,176 124,119 22.7% $ 50,000-$74,999 72,051 110,503 53.4% $ 75,000 and over 34,133 80,089 134.6% AVERAGE PUBLIC ROUNDS 18.42 17.73 -3.8% Source: NPOG. PGA, NGF Acle Distrbution 20,767 25,112 Percent 5-11 221 266 Change Age Group 1991 1996 1991-1996 TOTAL 5 YRS+ 194,458 238,657 227% 5-11 17,142 20,657 20.5% 12-17 14,201 18,920 33.2% 18-24 17,071 18,312 7.3% 25-34 26,616 28,725 7.9% 35-44 28,683 36,782 28.2% 45-54 21,607 33,634 55.7% 55-64 26,124 30,259 15.8% 65-74 26,898 30,314 12.7% 75+ 16,116 21,054 30.6% Potential Golfers Based on Age Distribution Change Percent 1991 1996 1991-1996 Change Age Group 1991 1996 1991-1996 TOTAL 5 YRS+ 20,767 25,112 20.9% 5-11 221 266 20.5% 12-17 612 815 33.2% 18-24 2,383 2,556 7.3% 25-34 3,785 4,085 7.9°x6 35-44 3,373 4,326 28.2% 45-54 2,455 3,821 55.7% 55-64 2,962 3,431 15.8% 65-74 3,841 • • 4,329 12.7% 75+ 1,135 1,482 30.6% PARTICIPATION RATES 10.68% 10.52% -1.5% Potential Public Golf Rounds - Based on Age Percent Change Age Group 1991 1996 1991-1996 TOTAL 5 YRS+ 396,116 476,933 20.4% 5-11 1,037 1,250 20.5% 12-17 5,013 6,679 33.2% 18-24 18,564 19,914 7.3% 25-34 48,218 52,039 7.9% 35-44 39,600 50,782 28.2% 45-54 36,794 57,274 55.7% 55-64 60,316 69,863 15.8% 65-74 137,163 154,583 12.7% 75+ 49,410 64,550 30.6% AVERAGE PUBLIC ROUNDS 19.07 18.99 -0.4% Sebastian Golf Course Expansion January 10, 1992 Page 7 COMPS IITIVE AREA GOLF SUPPLY An analysis of all golf facilities in Indian River, Brevard, and St. Lucie Counties was undertaken to determine the distribution of facilities by type (i.e. public or private access) and current level of play (rounds) in relation to distance from the Sebastian site. Table 5 summarizes the existing golf facilities in each of the three counties. Table 5 Existing Goff Supply - January 1992 Source: PGA Detailed listings of all facilities are included in the Appendix Tables A-3, A-4, and A-5. There are a total of 396 holes of golf within a 20 mile radius of the Sebastian site. In 1990-91, an estimated 903,000 rounds of golf were played at facilities within 25 miles of Sebastian. This represents about 46 percent of all rounds played in the three county area. About 683,000 rounds were played at facilities within 20 miles of the Sebastian site (primary market area). The existing golf facility inventory was analyzed to determine the number of public rounds of golf played in the three county area. Public play varies considerably among the three counties. In Indian River County, 43 percent of the play, or 257,000 rounds, is estimated to be 'public play'. This is defined as a non-member round of golf at either public or private access facilities. In Brevard County to the north, public play totalled an estimated 402,000 rounds, about 48 percent of total play. St. Lucie County had an estimated 156,000 rounds of public play or 31 percent of total rounds. This is due fewer public access facilities in the county. However a new facility developed by St. Lucie County (Fairwinds Goff Course) is scheduled to open in January. It is located north of Fort Pierce in the northern portion of the County. Within the primary market area (20 mile radius), 293,000 public rounds of golf were played, about 42 percent of total play. Primary competition to the Sebastian facility is the public course at Sand Ridge, daily fee executive facilities in Vero Beach (Vista Plantation and Vista Royale) and two municipal facilities in the City of Melbourne (Harbor City and Melbourne Golf and Country Club). There are two additional public facilities in the primary market area which will directly affect play at the Sebastian facility. Since they were not open in the 1990-91 period, no rounds were included in the totals cited. The Habitat golf facility (Brevard County facility) is located in southern Brevard County about 12 miles north of Sebastian. It opened in October 1991. An 18 -hole addition is proposed at Sand Ridge (Indian River County facility). We understand that bonds have been issued 1990-91 County Facilities Holes Rounds Indian River 17 342 599,900 Brevard 20 369 846,000 St. Lucie 13 252 500,100 Source: PGA Detailed listings of all facilities are included in the Appendix Tables A-3, A-4, and A-5. There are a total of 396 holes of golf within a 20 mile radius of the Sebastian site. In 1990-91, an estimated 903,000 rounds of golf were played at facilities within 25 miles of Sebastian. This represents about 46 percent of all rounds played in the three county area. About 683,000 rounds were played at facilities within 20 miles of the Sebastian site (primary market area). The existing golf facility inventory was analyzed to determine the number of public rounds of golf played in the three county area. Public play varies considerably among the three counties. In Indian River County, 43 percent of the play, or 257,000 rounds, is estimated to be 'public play'. This is defined as a non-member round of golf at either public or private access facilities. In Brevard County to the north, public play totalled an estimated 402,000 rounds, about 48 percent of total play. St. Lucie County had an estimated 156,000 rounds of public play or 31 percent of total rounds. This is due fewer public access facilities in the county. However a new facility developed by St. Lucie County (Fairwinds Goff Course) is scheduled to open in January. It is located north of Fort Pierce in the northern portion of the County. Within the primary market area (20 mile radius), 293,000 public rounds of golf were played, about 42 percent of total play. Primary competition to the Sebastian facility is the public course at Sand Ridge, daily fee executive facilities in Vero Beach (Vista Plantation and Vista Royale) and two municipal facilities in the City of Melbourne (Harbor City and Melbourne Golf and Country Club). There are two additional public facilities in the primary market area which will directly affect play at the Sebastian facility. Since they were not open in the 1990-91 period, no rounds were included in the totals cited. The Habitat golf facility (Brevard County facility) is located in southern Brevard County about 12 miles north of Sebastian. It opened in October 1991. An 18 -hole addition is proposed at Sand Ridge (Indian River County facility). We understand that bonds have been issued Sebastian Goff Course Expansion January 10, 1992 Page 8 and construction is imminent. In addition, the Fairwinds facility in northern St. Lucie County, which is outside the primary market area, will compete for players within the City of Vero Beach. Other facilities which were factored into the competitive analysis were a proposed expansion at Barefoot Bay, a new facility on the island in Brevard County, an additional daily fee facility in the Melbourne area, a new facility at Windsor, and completion of the 9 -hole addition at Cocoa Beach. Tables A-3, A-4, and A-5 summarize the public and private play estimates and number of members at all facilities. The tables indicate the percentage of total and public play drawn from the primary market area and the area within 25 miles of the site. CURRENT AND FUTURE GOLF DEMAND Estimates of demand for public golf were prepared based on population projections for the market area and expected household age and income characteristics. In addition seasonal population was factored into the calculation of demand. Based on area demographics, conservative golf participation rates of 10.0 and 10.5 percent(population over 5 years of age) were used to develop a range estimate. Seasonality factors were calculated at 15, 20, and 25 percent of resident population. At a 10.0 percent participation rate and a 20 percent seasonality factor, total demand for public golf in the 20 mile market area is estimated at 432,000 rounds. Existing facilities accommodate about 318,000 rounds. Allowing for a 10 percent expansion of play at existing facilities, there is an 'unmet demand' of about 81,000 rounds in the 20 mile market area. Within the 25 mile area, total public demand is estimated at 598,000 rounds. Current supply totals 416,000 rounds, leaving an unmet demand of 181,000 rounds. Thus both the 20- and 25 -mile areas show additional need for public access facilities. To estimate demand in 1996, a number of assumptions were made regarding the construction of new facilities during the 1991-1996 period. The assumptions included the opening of Fairwinds (St. Lucie County), the completion of the 18 -hole addition at Sand Ridge, the completion of an expansion at Barefoot Bay, the construction of two private daily fee facilities in Brevard County, and the completion of the facility at Windsor. Taking into account new golf supply and population increases by 1996, total unmet demand (under 10.0 percent participation and 20 percent seasonality factor) is estimated at 64,000 rounds. Within the 25 mile area, it is estimated at 158,000 rounds. Under a 10.5 percent participation rate and 25 percent seasonality factor, current unmet demand is estimated at 121,000 rounds and 114,000 rounds in 1996 with the assumed completion of new facilities. Within the 25 -mile area, current unmet demand is estimated at 237,000 rounds at present and 225,000 rounds by 1996. Table 6 summarizes estimates of unmet demand for the 20 -mile market area. The detailed information is contained in Appendix Tables A-6 and A-7. In general the market can be described as a strong public golf market. This applies to the immediate project market area (20 -mile radius) as well as larger areas (25 -mile area) and parent areas, particularly Brevard County. For the three county area, unmet demand ranges from 482,000 to 612,000 rounds depending on participation and seasonality assumptions. Unmet demand in the three county area is expected to grow over the next five years, despite the construction of new facilities identified. Sebastian Golf Course Expansion January 10, 1992 Page 9 Table 6 Summary of Unmet Market Demand (Golf Rounds) 20 -Mile Market Area Sebastian Golf Facility` Seasonality Factor »: Participation Rate 1 1991 1 1995 1 15% 1; .W2WKIU25WWl 15% 9% 21,958 38,149 54,340 (8,571) 11,293 31,156 t0 9fi 63,335 ..$1,325` 99,315 42,191 64 262. 86,333 84,024 102,913 << 21 8..03'; 67,573 90,747€ +ftgg 11% 104,712 124,501 144,920 92,954 117,232 141,509 ' Excludes projected play at new Sebastian Facility Source: PGA FACILITY RECOMMENDATIONS The market analysis supports the construction of 18 additional holes at the Sebastian facility. Given the configuration of the existing facility, the additional 18 -holes could be accommodated in several ways. Privately owned land to the west of the site could support an additional 18 -holes, but this would utilize the bulk of the parcel, with tittle land residual for residential development. A privately owned parcel to the east of the site could also accommodate an expansion. A third option would be the construction of an additional 9 -holes on each site, thus retaining land for residential development on both parcels. In addition, there is land owned by the airport adjacent to the 13th fairway which might be appropriate for expansion. Should the development be phased, or only nine holes be constructed, then one site could be used for the expansion, although expanding to the east could make a returning 9 -hole configuration difficult. A key factor to be considered is the cost of land for expansion under various layouts and additional capital requirements for clubhouse expansion, golf car storage and maintenance requirements. By minimizing land costs, the City will reduce debt requirements and thus improve operating performance of the new facility. Schematic routing plans should be prepared to evaluate the configuration options and requirements for additional facility improvements prior to the determination of the most appropriate parcel(s) for expansion. Sebastian Goff Course Expansion January 10, 1992 Page 10 Facilitv Utilization and Rates With an 18 -hole expansion, the expanded facility could handle an additional 40-45,000 rounds of play. This represents a stabilized level of play and could be achieved in the second or third year of full operation. The existing facility accommodated 73,800 starts in the 1990-91 season, the equivalent of about 66,500 18 -hole starts. Table 8 presents current greens fees at competitive public access facilities. Greens fees fall in the mid range of the most directly competitive facilities (Sand Ridge and Habitat) as well as the new Fairwinds facility. Rates are substantially above those at the City of Melbourne facilities (Harbor City and Melbourne G&CC). Greens fees at the majority of public facilities increased marginally between the 1990-91 and 1991-92 seasons. In discussions with golf course managers, it was indicated that due to the lingering recession, greens fees were maintained at levels comparable to the preceding year. Volume of play has remained relatively level over the past two years. An expanded Sebastian facility should command rates at or near the top of the public access market consistent with its current pricing strategy. Fees can be expected to grow at or slightly above the rate of inflation in the 1993-1996 period assuming the end of the recession by late 1992. 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T Nt. 00 1\ O to to N c� p Q O r 1\ M N r O T T M C[[V NtnN NN N v t0 ovD cm tOMM Am M O Co 0 0 Cl 0 0 Co 0 0 O O pOj m mmm N N n O O O O O O O Cl O N OI Mme NCO - CO 0 0 Co 0 0 0 0 N N T r m M tO M .6,: CD C7 tO C tO d O tO OO M tO N N tO 11. 1,. M T CD M N T T co N N W—N CO � M _ we IDIC3 tlJ m , 'CO T O W tD T t` r M tO N O strlO.. N 't CO) N MCO r CD m OCOr N CO m C 'It OOCIO MW tO f` r rM E6 -7 1, r C N C07 1co CO OODD CO U T r, m � cD o to c0 T M T N COO. COO. Cl) N �- r- OND aCO NO 00 O O COr ON N M OD N N � C? m p TIM NO N CD In �°rOrn c�tnrz 00 O m NON CD — CTD N 'Cp NMtO NtO N N C� ) r�N NN N .0... m TCDM d'm M CO M M CO M N N CD pl nM NM T OD N07 CD tVtO) co 1- CD 1l IN -CD C^7M d' N (DOOOOQOO 40 0 O Cl O CO CO n r CD 0 M N W T O C) M CO .. M M t0 1\ CD CD M Cl) N K U) 0 0 CL m I-0 m Z i C c cd E m m E c D 41. SEBASTIAN SEBASTIAN MUNICIPAL GOLF COURSE (SMGC) CONSULTANT REQUEST FOR PROPOSAL - PLAN & REPORT DISTRIBUTION Date Company Address Tel. No. nn - yv 3-e g- l F .�3yr/D 1 City of Sebastian POST OFFICE BOX 780127 a SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 o FAX (407) 589-5570 December 13, 1991 Mr. John Rossi Professional Golfers' Association PO Box 109601 Palm Beach Gardens, FL 33410-9601 Dear Mr. Rossi: The Sebastian City Council, at its December 11, 1991 Regular Meeting, authorized the PGA to proceed with the second task of the Sebastian Municipal Golf Course Expansion assessment. If you have any questions, please do not hesitate to contact this office. Sincerely, ,Gt.` Kathryn M. O'Halloran City Clerk KMO/sam cc: Jim DeLarme Michael Hudkins City of Sebastian POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570 CITY COUNCIL ACTION M E M O DATE: December 13, 1991 TO: Jim DeLarme Golf Course Manager FROM: Kathryn M. O'Halloran City Clerk MEETING DATE: December 11, 1991 RE: 91.235 - PGA Report _ Golf Course Expansion MOTION by Holyk/Oberbeck I move we proceed with the second task of the study. ROLL CALL: Councilman Holyk aye Vice Mayor Oberbeck aye Councilman Powell aye Councilman Reid aye Mayor Conyers aye MOTION CARRIED 5-0. sam City of Sebastian POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570 SUBJECT: Golf Course Expansion Approved For Submittal By: City Manager Agenda No. �� 3 Dept. of Origin: Golf Course (JDL) Date Submitted: 12/05/91 For Agenda Of: 12/11/91 Exhibits: - PGA Report Dated 11/21/91 EXPENDITURE AMOUNT APPROPRIATION REQUIRED: BUDGETED: REQUIRED: SUMMARY STATEMENT The Professional Golfers' Association ("PGA") was engaged by the City to perform a market analysis and feasibility study for expansion of the Sebastian Municipal Golf Course. Task 1 of the PGA engagement is a report on the overall market assessment. Mr. John J. Rossi will be present at the 12/11/91 City Council Meeting to present this report and respond to questions, concerns or comments from the City Council. RECOMMENDED ACTION Review the Task 1 report by the Professional Golfers' Association and, if appropriate, to authorize the PGA to proceed with Task 2 of their contract for market analysis and feasibility study for expansion of the golf course. 91)-35- TO: FROM: DATE: SUBJECT: INTRODUCTION AW 4 MEMORANDUM City of Sebastian PGA Golf Services, Inc. November 25, 1991 Sebastian Golf Course Expansion Preliminary Market Planning and Market Assessment The City of Sebastian is considering the expansion of its 18 -hole regulation golf course and related facilities. The existing facility was constructed in 1980. In 1990-91, the facility accommodated a total of 73,800 starts (9 -hole and 18 -hole rounds). The golf facility offers annual memberships to residents and non-residents. At the end of the 1990-91 season, there were 340 memberships (510 individuals). Member play constituted 48 percent of total play during the year. This memorandum outlines our findings and conclusions as a result of a preliminary planning review and overall market assessment of the market area served by the existing facility and any future expansion of the facility. This memorandum summarizes our activities as part of Task 1 of a detailed market analysis and financial feasibility study for an addition to the facility. The specific goals of Task 1 of the project were to: o Assess all relevant project plans and documents as well as appropriate demographic and economic data and projections for the area. o Determine key issues and objectives based on discussions with city staff, golf course operators and others in the market area. o Define the market area for the Sebastian facility based on demand sectors, travel patterns and area perceptions. o Identify the existing golf supply with emphasis on competitive facilities and how they effect the Sebastian market area. o Estimate overall market demand within the Sebastian market area. This memorandum summarizes an assessment of overall market support for golf facilities in the Sebastian market area. Subsequent study is required to determine specific market penetration rates, fee structures and the financial feasibility of any expansion. This document should be used for internal planning purposes and should not be construed as a complete market analysis and financial feasibility study. Such activities are to be conducted as part of subsequent tasks of this project. AREA GOLF SUPPLY An analysis of all golf facilities with Indian River, Brevard, and St. Lucie Counties was undertaken to determine the distribution of facilities by type (i.e. public or private access) and current level of play (rounds) in relation to their distance from the Sebastian site. The Sebastian golf course and potential expansion sites(s) are located within the city boundaries in northern Indian River County, approximately Sebastian Golf Course Expansion Preliminary Planning Review and Market Assessment Page 2 1 mile west of U.S. Highway 1 and 4 miles northeast of the Sebastian and Fellsmere exit from 1-95. The site is located to the south of the Sebastian Airport. The table below summarizes the existing golf facilities and estimated 1990-91 rounds of golf played in each of the three counties. County Facilities Holes Rounds Indian River 17 342 604,900 Brevard 20 369 846,000 St. Lucie 13 252 455,500 Source: PGA Detailed listings of all facilities are included in the Appendix Tables A-1, A-2, and A-3. Table A-4 summarizes the number of golf holes based on 10 mile distance increments from the Sebastian site. There are a total of 576 holes of golf within a 30 mile radius of the Sebastian site. Of these, 396 holes are within 20 miles of Sebastian. In 1990-91, and estimated 1.13 million rounds of golf were played at facilities within 30 miles of Sebastian. About 689,000 rounds were played at facilities within 20 miles of the Sebastian site. See Table A-5. The existing golf facility inventory was analyzed to determine the number of public rounds of golf played in the three county area. Public play varies considerably among the three counties. In Indian River County, 43 percent of the play, or 259,000 rounds, is estimated to be 'public play'. This is defined as a non-member round of golf at either public or private access facilities. In Brevard County to the north, public play totalled an estimated 402,000 rounds, about 48 percent of total play. St. Lucie County had an estimated 80,000 rounds of public play or 17 percent of total rounds. This is due few public access facilities in the county. A new public facility, developed by St. Lucie County (Fairwinds Golf Course), is scheduled to open in December. It is located north of Fort Pierce in the northern portion of the County. There are two other public facilities which will affect play in the Sebastian area. Since they were not open during the 1990-91 period, no rounds were included in the totals cited. The Habitat golf facility is located in southern Brevard County about 12 miles north of Sebastian. It opened in October 1991 and is owned and operated by Brevard County. An 18 -hole addition is proposed at Sand Ridge (Indian River County facility). We understand that bonds have been issued and construction is imminent. Tables A-1, A-2, and A-3 summarize the public and private play estimates and number of members at all facilities. MARKET AREA DEFINITION The market area for a golf facility is strongly influenced by area travel and development patterns. Development in all three counties has occurred linearly along the Atlantic Ocean and Intracoastal Waterway. Interstate 95, the major access road to the region, runs between 5 and 10 miles west of the Intracoastal Waterway. The major population centers are located on the mainland. These include Sebastian Golf Course Expansion Preliminary Planning Review and Market Assessment Page 3 the cities of Sebastian and Vero Beach in Indian River County. In Brevard County, the major centers are Palm City, Melbourne, Cocoa, and Titusville. In St. Lucie County, the centers are Fort Pierce and Port St. Lucie. Given the location of the Sebastian site and area travel patterns, the primary market area is defined as that area within a 20 -mile radius of the site. This equates to about a 20-25 mile driving distance of the site. The primary market area is the area from which the majority of play will be drawn. The 20 mile radius includes Vero Beach and the southern portion of Indian River County, the northernmost portion of St. Lucie County, and the southern portion of Brevard County including the City of Palm Bay and the major populated areas in the City of Melbourne. The market area also includes the beach communities within the 20 -mile radius. AREA DEMOGRAPHICS Area demographics were reviewed to determine overall levels of population and their age and income characteristics. These serve as a basis for estimating the overall level of demand for golf in the area. Total population in Indian River and Brevard Counties in 1990 was 489,000 persons. This is estimated to increase to 565,000 persons by 1995, a five year growth rate of 17 percent. Preliminary population estimates in the 20 -mile market area are 250,000 persons. Population is estimated to increase to about 290,000 persons by 1995. These projections may be overstated given the lingering recession of 1990- 91. Nevertheless, steady and strong growth is apparent in the two county area, particularly in southern Brevard County. OVERALL MARKET SUPPORT - Based on the age and income characteristics of the population, estimates for the total demand for golf were prepared. Age and income characteristics reflect an older population with moderate incomes. However caution is necessary in interpreting this data. For example, in Indian River County, there are a number of exclusive high income enclaves in the coastal area as well a low income areas in the outlying areas of the County. Given the size of Indian River County, averages should be carefully used. Within Brevard County with a much larger population base, there continues to be an influx of younger moderate income facilities along with a growing retiree population. Thus in determining golfer participation rates and play rates, careful attention needs to be paid to household age and income distributions. For purposes of this analysis, a range of participation rates was considered to estimate the overall level of support for an additional golf facility. These assumptions take into account national, regional and state participation and frequency of play rates. The basic assumptions used were golfer participation rates of 8-10 percent (population over 5 years of age) and an average public frequency of play of about 18 rounds per year (non-member play). In addition, assumptions of 20 and 25 percent of year round resident play were incorporated in the estimates of demand to account for golf play by seasonal residents and visitors to the area. Estimates of unmet demand, that is rounds of golf not being accommodated by existing facilities were prepared 1991 and 1995. A number of assumptions were made regarding the construction of new facilities during 1991-1995 and were factored in the estimate of unmet demand for 1995. The assumptions included the completion of the Sand Ridge and Fairwinds (St. Lucie County) facilities, the completion of an expansion at Barefoot Bay, the construction of two other privately owned daily fee facilities, and the completion of the private facility at Windsor. In total, these facilities can be expected to draw about 115,000 rounds from the Sebastian market area. The table below summarizes the overall. demand analysis under Sebastian Golf Course Expansion Preliminary Planning Review and Market Assessment Page 4 various assumptions, including the new facilities. Projected rounds for an expanded Sebastian facility are not included in the estimate of unmet demand. Thus these estimates represent rounds available to the Sebastian facility. Summary of Unmet Market Demand (Golf Rounds) 20 -Mile Market Area Sebastian Golf Facility Source_ PGA Within the market area, under a 8 percent participation rate and 20 percent seasonality factor, it is estimated that there is an estimated total demand for about 400,000 rounds of golf in the market area. Existing facilities accommodate about 338,000 rounds. Allowing for an increase of play of 10 percent at existing facilities, there is an estimated unmet demand of about 62,000 rounds in the Sebastian market area at present. Using a higher participation rate of 10 percent, which is appropriate for the market place, with the low seasonality assumption, total demand is about 500,000 rounds, leaving an unmet demand of about 162,000 rounds. See above table. By 1995, with the addition of the facilities mentioned above, under an 8 percent participation and low seasonality assumption, total demand is 481,000 rounds. The existing 1991 supply accommodates 338,000 rounds and the new facilities accommodate 115,000 rounds from the market area. Thus, unmet demand is estimated at 28,000 rounds. At a 10 percent participation rate, unmet demand is estimated at 148,000 rounds. With an increased seasonality factor (25%), unmet demand is estimated at 173,000 rounds. While no specific participation rate studies have been completed for the Sebastian market area, given the income and age structure of the population, a participation rate of about 10 percent appears reasonable. Thus, in a best case scenario, an additional facility could be supported by the market including the additional facilities mentioned above. Under a worst case scenario (lowest participation rate), a new facility would be partially supported by the existing market. SUMMARY The Sebastian market area will continue to grow at a healthy rate during the 1990's, although rates in the 1990-95 period will be somewhat more modest as a result of the current recession. Public demand for golf will continue to grow. Recognizing this, local governments in all three counties have recently added or are in the process of adding public golf facilities. Despite the increasing supply of public golf facilities which will draw from the market area, under reasonable participation assumptions, there appears to be support for an additional golf facility in the Sebastian market area at present and in 1995. However, the Sebastian facility will be competing 'head 1991 1991 1995 1995 Seasonality 20% 25°x6 20°x6 25% Participation Rate 8 % 62,275 78,960 28,223 48,281 9 % 112,331 131,102 88,398 110,964 10 % 162,387 183,244 148,573 173,646 Source_ PGA Within the market area, under a 8 percent participation rate and 20 percent seasonality factor, it is estimated that there is an estimated total demand for about 400,000 rounds of golf in the market area. Existing facilities accommodate about 338,000 rounds. Allowing for an increase of play of 10 percent at existing facilities, there is an estimated unmet demand of about 62,000 rounds in the Sebastian market area at present. Using a higher participation rate of 10 percent, which is appropriate for the market place, with the low seasonality assumption, total demand is about 500,000 rounds, leaving an unmet demand of about 162,000 rounds. See above table. By 1995, with the addition of the facilities mentioned above, under an 8 percent participation and low seasonality assumption, total demand is 481,000 rounds. The existing 1991 supply accommodates 338,000 rounds and the new facilities accommodate 115,000 rounds from the market area. Thus, unmet demand is estimated at 28,000 rounds. At a 10 percent participation rate, unmet demand is estimated at 148,000 rounds. With an increased seasonality factor (25%), unmet demand is estimated at 173,000 rounds. While no specific participation rate studies have been completed for the Sebastian market area, given the income and age structure of the population, a participation rate of about 10 percent appears reasonable. Thus, in a best case scenario, an additional facility could be supported by the market including the additional facilities mentioned above. Under a worst case scenario (lowest participation rate), a new facility would be partially supported by the existing market. SUMMARY The Sebastian market area will continue to grow at a healthy rate during the 1990's, although rates in the 1990-95 period will be somewhat more modest as a result of the current recession. Public demand for golf will continue to grow. Recognizing this, local governments in all three counties have recently added or are in the process of adding public golf facilities. Despite the increasing supply of public golf facilities which will draw from the market area, under reasonable participation assumptions, there appears to be support for an additional golf facility in the Sebastian market area at present and in 1995. However, the Sebastian facility will be competing 'head Sebastian Goff Course Expansion Preliminary Planning Review and Market Assessment Page 5 on' with the new Habitat facility and the proposed expansion at Sand Ridge in Vero Beach. Should some of the private facilities included in the projections fail to develop, then the Sebastian facility market position will be enhanced. This is possible given the difficulty of securing private financing for real estate developments throughout the United States. The city can consider phasing of the development (9 -holes at a time), depending on the availability and cost of land for an expansion. The city can expect to realize certain 'economies of scale' because of the existing facility which will serve to reduce operational and development expense. These costs and savings factors will influence the financial performance of an expanded facility. Such considerations should be taken into account as part of subsequent tasks of this project. We were asked to address the advisability of developing an 'executive' golf facility due to potential land limitations. Executive courses, because of their shorter length, use about one-half the amount of land used by a regulation length 18 -hole facility. Executive courses are well accepted in the market place and are popular among senior golfers. However, since many of the competitive daily fee facilities are executive courses, and the newer public facilities are regulation length courses, the city should consider the development of a regulation facility with a variety of tee placements to permit both a short and long game. This would satisfy a wider market and yet maintain competitiveness with regulation length facilities. The existing Sebastian facility can be a marketing asset. By maintaining a strong market position with the existing facility, the expansion will be able to capture unmet demand more rapidly than a completely new facility. 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HUU Li LULL N N Q Q r O O LQ M , Table A-4 Number of Rounds -1991 Indian River, Brevard, and St. Lucie Counties Driving Distance From Site (miles) FCSEBDSI f,izsrof 21:00:r7 Type 10 Driving Distance From Site (miles) 21-30 Type 10 11-20 21-30 31-40 41-50 51+ TOTAL Municipal 135,900 0 212,000 70,000 45,000 0 462,900 Daily Fee 30,000 205,000 132,000 89,000 125,000 40,000 621,000 Non -Equity 64,000 85,000 70,000 179,500 0 70,000 468,500 Equity 6,000 163,000 25,000 110,000 50,000 0 354,000 Totals 235,900 453,000 439,000 448,500 220,000 110,000 """" Percent 94°x6 100°x6 FREQUENCY Distribution 12% 24% 23% 24% 12% 6% 100% 18 -hole equivalent rounds PERCENT DISTRIBUTIO Rounds Driving Distance From Site (miles) Type 10 11-20 21-30 31-40 41-50 51+ TOTAL Municipal 7% 0% 11% 4% 2% 0% 24% Daily Fee 2% 11% 7% 5% 7% 2% 33% Non -Equity 3% 4% 4% 9% 0% 4% 25% Equity 0% 9% 1% 6% 3% 0% 19% Totals 12% 24% 23% 24% 12% 6% 100% CUM 36% 59°x6 83% 94°x6 100°x6 FREQUENCY Driving Distance From Site (miles) Tyne 10 11-20 21-30 31-40 41-50 51+ TOTAL Municipal 2 1 4 1 1 0 9 Daily Fee 1 4 3 2 2 1 13 Non -Equity 1 3 2 6 0 2 14 Equity 1 7 1 3 2 0 14 Totals 5 15 10 12 5 3 50 Cumulative 20 30 42 47 50 Table A-5 Number of Holes -1991 Indian River, Brevard, and St. Lucie Counties FCSERWI 115191 2,:11:05 Driving Distance From Site (miles) Driving Distance From Site (miles) Type 10 11-20 21-30 31-40 41-50 51+ TOTAL Municipal 36 18 72 18 18 0 162 Daily Fee 18 72 54 36 54 18 252 Non -Equity 18 54 36 90 0 36 234 Equity 18 162 18 81 36 0 315 Totals 90 306 180 225 108 54 963 Percent CUM 41% 60% 830/0 94% 100% Distribution 9% 32% 19% 23% 110/0 6% 100% 18 -hole equivalent rounds PERCENT DISTRIBUTIO Holes Driving Distance From Site (miles) Type 10 11-20 21-30 31-40 41-50 51+ TOTAL Municipal 4% 2% 7% 2% 2% 0% 17% Daily Fee 2% 7% 6% 4% 6% 2% 26% Non -Equity 2% 6% 4% 9% 0% 4% 24% Equity 2% 17% 2% 8% 4% 0% 33% Totals 9% 32% 19% 23% 11% 6% 100% CUM 41% 60% 830/0 94% 100% FREQUENCY Driving Distance From Site (miles) Tvpe 10 11-20 21-30 31-40 41-50 51+ TOTAL Municipal 2 1 4 1 1 0 9 Daily Fee 1 4 3 2 2 1 13 Non -Equity 1 3 2 6 0 2 14 Equity 1 7 1 3 2 0 14 Totals 5 15 10 12 5 3 50 Cumulative 20 30 42 47 50 Source: VGA Table A-6 FCSF.BD31 Number of Market R - 1991 111251.91 Indian River, Brevard, and St. Lucie Counties 21:14:20 18 -hole equivalent rounds PERCENT DISTRIBUTIO Market Rounds Driving Distance From Site (miles) Type 10 11-20 21-30 31-40 41-50 51+ TOTAL Municipal 122,020 0 92,000 14,000 4,500 0 232,520 Daily Fee 21,000 125,000 50,100 13,900 3,000 0 213,000 Non -Equity 57,600 45,000 23,000 28,200 0 0 153,800 Equity 4,800 113,100 0 29,500 7,500 0 154,900 Totals 205,420 283,100 165,100 85,600 15,000 0 754,220 Percent 65°% 87% 98% 100°% 100°% Distribution 27% 38% 22% 11% 2% 0% 100% 18 -hole equivalent rounds PERCENT DISTRIBUTIO Market Rounds FREQUENCY Driving Distance From Site (miles) Type 10 11-20 21-30 31-40 41-50 51+ TOTAL Municipal 16% 0% 12% 2% 1% 0% 31% Daily Fee 3% 17% 7% 2% 0% 0% 28% Non -Equity 8% 6% 3% 4% 0% 0% 20% Equity 1% 15% 0% 4°% 1% 0% 21% Totals 270% 38% 22% 110% 2% 0% 100% CUM 65°% 87% 98% 100°% 100°% FREQUENCY Source: VGA Driving Distance From Site (miles) Type 10 11-20 21-30 31-40 41-50 51+ TOTAL Municipal 2 1 4 1 1 0 9 Daily Fee 1 4 3 2 2 1 13 Non -Equity 1 3 2 6 0 2 14 Equity 1 7 1 3 2 0 14 Totals 5 15 10 12 5 3 50 Cumulative 20 30 42 47 50 Source: VGA J City of Sebastian POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570 CITY COUNCIL ACTION M E M 0 DATE: December 13, 1991 TO: Mike Hudkins Finance Director FROM: Kathryn M. O'Halloran City Clerk MEETING DATE: December 11, 1991 RE: 91.235 - PGA Report - Golf Course Expansion MOTION by Holyk/Oberbeck I move we proceed with the second task of the study. ROLL CALL: Councilman Holyk aye Vice Mayor Oberbeck aye Councilman Powell aye Councilman Reid aye Mayor Conyers aye MOTION CARRIED 5-0. sam City of Sebastian POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570 CITY COUNCIL ACTION MEMO DATE: 10/11/91 TO: Jim DeLarme Golf Course Manager FROM: Kathryn M. O'Halloran City Clerk CITY COUNCIL MEETING DATE: 10/9/91 Regular Meeting SUBJECT: 91.235 - Golf Course Feasibility Study - Modify Current PGA Contract - "Notice to Proceed" Basis By Task It was decided that the contract with Charles Ankrom for a construction estimate could be approved at a later date as the study goes along. MOTION by Holyk/Oberbeck I move we approve and accept the Golf Course feasibility study and modify the current PGA contract and give them the notice to proceed on a task by task basis. ROLL CALL: Councilman Reid aye Mayor Conyers aye Councilman Holyk aye Vice Mayor Oberbeck aye Councilman Powell absent MOTION CARRIED 4-0 (Powell - absent) ACTION.16 City of Sebastian POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570 October 7, 1991 Mr. Carl R. Julian 7491 Conroy -Windermere Road Orlando, FL 32811 Dear Mr. Julian: The City of Sebastian is considering the possibility of expanding its facilities at the Sebastian Municipal Golf Course. Consequently the Professional Golfers Association (PGA) is being authorized to prepare a study (the "Study") and analysis of the various issues that may affect the economic feasibility of such an expansion. During the process of the Study, certain parcels of land in the vicinity of the existing course will be considered as potential sites for an additional golf course. Since you are the owner, as trustee, of the tract that is contiguous to the east, known as the Saint Sebastian PUD, the City, by this letter, is advising you of its potential interest in your property, and requesting that permission be granted to the City and its representatives to contact you or your representatives in order to obtain the information about your property that may be necessary in order to complete the Study. It is to be noted that neither our request, nor your granting of the request, obligates either of us to any duty other than cooperation. There can be no assurance at this time that the City will proceed with the expansion of the golf facilities, nor that there will be any active interest in your property if the expansion does go forward. Once begun, the Study is expected to be completed within a period of about six to eight weeks. Considering that some delays may be inevitable, our intention would be that your approval would terminate, unless extended, by December 31, 1991. Every effort will, of course, be made to complete the study in as short a time as is possible, within the constraints of prudence. Mr. Carl R. Julian October 7, 1991 Page 2 Should you agree that your property may be considered and evaluated as part of the Study, along with other potential sites, please acknowledge your permission by signing at the place set aside below for your signature. If questions should arise in your review of this letter, please give us a call, and we will respond if possible. Please execute both copies of this letter and retain one of them for your files and return the other one to us. Thank you for your consideration of this request. Sincerely, Robert S. McClary 001' City Manager RMS/sg Carl R. Julian, Trustee Saint Sebastian PUD !1111 our" — rchifecf.4. Coneulfanb &I- annerf CHARLES F. ANKROM INC. DATE:' SEPTEMBER 26,.1991 TO: CITY OF SEBASTIAN ATTN: JAMES F. DELARME PROFESSIONAL/MANAGER SEBASTIAN MUNICIPAL GOLF COURSE 101 E. AIRPORT DRIVE SEBASTIAN, FLORIDA 32958 FROM: CHARLES F. ANKROM GOLF COURSE ARCHITECT SUBJECT: Proposal to document.typical estimated construction cost for expansion of the.Sebastian 18 hole golf course. 1. Evaluate the typical or estimated construction cost for the installation of a new 18 hole or 9 hole golf course on properties abutting the existing golf course. 2. Cost estimates shall be provided for: A) An 18 hole golf course on +150 acres to the southwest of the golf course (left of existing,hole No. 1). B) A 9 hole golf course on a portion of the 150 acres to the southwest of the golf course (left of, existing hole No. 1). C) A 9 hole golf course. on available airport property to the northwest of hole No: 14, and,13 green. 3. Since the Architect has only portions of aerial maps as reference, and there is not a concept golf course "Master Plan" or proposed "Route Plan" at this time, the Architect shall consult the City on typical. cost estimates using a variety of assumptions and typical industry construction costr and using as reference the Architects past experience in the design and construction of both public and private golf course, and the past personal experience and familiarity with the existing Sebastian)Municipal golf course. 4. This proposal shall consist of a "brief report" on typical estimated cost assumptions of paragraph 2, and shall include a listing of each typical construction category. P.Q. BOX 898 STUART, 1=L. 34995-0898 9 (407) 283-1440 6 MEMBER: A.S.G.C.A. �/23r 5. The fees for this consulting service shall be $600.00, plus $100.00 to cover.estimat6d cost and :expenses of L.D. calls (up to 5),. reproduction zerox of�two aerial maps, zerox and postage, and secretarial.'serVices for teport 11typing and preparation: The fees'.of this.proposal exclude any separate trips to the site or city,',., but. includes any telephone calls necessary for `explanation : The total-.fees•With expenses will be $700.00.- 6. The City .of Sebastian shall- be responsible for the -future updating of typical `'construction Icost estimates from both Architects and Engineers during or after the production of a golf; course Master Plan', and when more accurate aerial and topographic maps:are. made'.availabie._. _ 7, The Architect, shall be' available for future consulation or design services at per diem ',rates,' p1i3s expenses, or by a separate negotiated agreement L2 C es F, Ank m President City of Sebastian POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570 SUBJECT: Golf Course Feasibility Study Approved For Submittal By: City Manager REQUIRED EXPENDITURE: Agenda No. %/`Z,35 - Dept. of Origin: Golf Course Date Submitted: 10/03/91 For Agenda Of: 10/09/91 Exhibits: Ankrom letter dated 9/26/91 BUDGETED APPROPRIATION AMOUNT: REQUIRED: SUMMARY STATEMENT At its Regular Workshop Meeting of October 2, 1991, the City Council reviewed a proposal by the Professional Golfers' Association ("PGA"). The "PGA" proposal is for a market analysis and financial feasibility study for a expansion of the Sebastian Municipal Golf Course. The study would be divided into four (4) tasks. The consensus of the City of Council is that the project be completed in tasks and that the "PGA" would not begin task two (2) until the City Council had reviewed and accepted task one (1), which is the Preliminary Planning Review and Market Assessment. The "PGA" proposal does not include construction and development estimates. Staff recommend these estimates be prepared by Carles F. Ankrom, Inc., who designed the City's existing course. Mr. Ankrom's proposal is for a fee of $700. RECOMMENDED ACTION Move to approve the engagement letter with the Professional Golfers' Association ("PGA"), dated September 13, 1991 subject to a "Notice to Proceed" by the City for each task; and move to approve the engagement of Charles F. Ankrom, Inc. per the terms of his letter dated September 26, 1991. 9r. 23s City of Sebastian POST OFFICE BOX 780127 a SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 FAX 407-589-5570 SUBJECT: New Golf Course Feasibility Study Approved For Submittal By: City Manager /4 -.V -V , EXPENDITURE REQUIRED: Agenda No. Dept. Origin Date Submitted For Agenda Of Golf Cours 9-18-91 9-25-91 Exhibits: P.G.A. proposal of estimated fees and scope of services. AMOUNT BUDGETED: SUMMARY STATEMENT APPROPRIATION REQUIRED: The City of Sebastian is growing in size rapidly as is our golfing population. In order to accommodate our growing size another eighteen (18) hole golf facility is needed. In order to determine the feasibility of another City of Sebastian eighteen (18) hole Golf Course, a study has to be initiated. This feasibility study can be made in conjunction with the consultant company now doing a report on our existing course. A significant savings can be realized by using the P.G.A. while doing their present work. The cost of this study would be approximately thirteen thousand $13,500.00 dollars. RECOMMENDED ACTION To modify the present contract with P.G.A. to include a feasibility study, for an addition eighteen hole golf course for the City of Sebastian. �rz3s I II L V R U I F. S S I O N A 1. V o L E L R S �pF E1cCF�t�� ,� rn Q 1% QI !i /' 6 . 199,1 September 13, 1991 Mr. Jim DeLarme Director of Golf Sebastian Municipal Goff Course 101 East Airport Drive Sebastian, FL 32978 Dear Mr. DeLarme: A s s o C I A I 1 o N o 17 A M 1: R I C A 100 AVENUE OF THE CHAMPIONS As you requested, we are submitting a draft scope of work for a market analysis and financial feasibility study in conjunction with the proposed expansion of the City of Box 109601 Sebastian golf facility. We understand that the City Is considering adding an additional PALM BEACH GARDENS 18 -holes to your existing 18 -hole facility. FLORIDA 33410-9601 This proposal sets forth the engagement objectives, our approach to completing the TELEPHONE: (407) 624-8400 work, our prior experience, and our anticipated fees. We are confident of our ability to FAX: (407) 624-8452 perform this project based on our project market experience, knowledge of the market and the background of the individuals Involved. OBJECTIVES McIIARn N. SMITII The objectives of this project are: President o Assist in the determination of the development concept for the expanded GARY I_ SCIIAAL golf facility. Vice President o Assess the overall market support for the expanded facility. TIIOMAS H. AcIms ❑I Secretary o Prepare a detailed market analysis for the facility Including projected utilization and rate structures. PATRICK J. RIELLY Honorary President o Prepare physical facility recommendations. JIM L. AWTREY o Prepare financial projections for the expanded facility. Executive Director/CEO o Prepare financial feasibility report. OUR APPROACH A detailed description of the tasks Inherent in a golf facility market and financial feasibility analysis is provided below. We believe that our background and experience will allow us to work with you in a meaningful way within each of the project tasks. The speck tasks outlined suggest areas of participation based on our understanding of your requirements and the overall timing of the study. Where we feel certain issues might need further in-depth study, we have so indicated in our task descriptions. The work program has been divided into the following four major tasks. Making your golf game better Making golja better game 912,35— City of Sebastian Page 2 They are: Task 1 - Preliminary Planning Review and Market Assessment Task 2 - Facility Market Analysis Task 3 - Preliminary Financial Projections Task 4 - Market and Financial Feasibility Report Each task is described in the following section at a more detailed activity level. The final part of this section presents a proposed work program schedule and budget. Task 1 - Preliminary Planning Review and Market Assessment Our overall approach is to provide strong management and technical input in the initial task of the project. A preliminary planning review is crucial to the overall success of the project and will assure that appropriate feedback occurs on key project issues as early as possible In the program. We plan to draw upon our senior personnel to participate as part of the project team in assessing existing information, identifying key issues, outlining the options to be considered, and finalizing the work plan and detailed approach to completing the balance of the work program. The personnel proposed bring together a clear understanding of the development process, financial structuring and feasibility analysis. The activities conducted as part of Task 1 focus on the assessment of the overall market support for the expanded golf facility. A careful assessment of the market requires delineation of appropriate market areas, and identification of the existing golf supply with additional emphasis on those facilities which are deemed to be competitive with the proposed facility. In addition, area demographic and economic characteristics need to be analyzed in order to determine potential golf participation rates by market area residents and other demand sectors. Based on this, an estimate can be developed of overall market support which could exist for the project, both presently and in the future. This is an Initial and essential step in determining basic viability for additional golf facilities within the market area As part of Task 1i we anticipate the following detailed activities: 1.1 Document Review. The purpose of this activity is to quickly assess all relevant project plans and documents as well as appropriate demographic and economic data and projections. All documents will be reviewed in order to Identify key information and issues which will be the focus of this market study. This task will be conducted as part of our field work in Sebastian. 1.2 Identification of Key Issues. Upon review of existing documentation and preliminary discussions with you, the project team members will summarize the issues to be addressed as part of the study. This activity will be result in a clear understanding of the major objectives of the assignment, define the development options, and provide input to the detailed market assessment. We anticipate meeting or teleconferencing with local officials and staff during our field visit to Sebastian. 1.3 Determination of Market Area. Prior to the definition of the market area, an identification of market sectors will be made. This will identify potential sectors of demand such as: residents, tourists, and other potential market sectors. Residential market areas, both primary and secondary will then be defined. 9iZ3s City of Sebastian Page 3 1.4 Identify Competitive Supply. The existing golf facility supply will be identified for the primary and secondary market areas utilizing the PGA facilities data base. In addition, Indian River and Brevard County totals will be reviewed to more completely understand the mix of competitive supply at the macro level. The Identification of competitive supply will take into account all facilities which could compete for various sector demand. From this overall inventory, facilities which are deemed directly competitive will be identified. Information on these facilities will be developed including current utilization rates, rounds of play, mix of participants, fee structures and other program and facility information. This information will be gathered as part of our field work In Sebastian. 1.5 Analyze Area Demographics and Economic Characteristics An analysis of current demographic and economic characteristics of the resident population will be undertaken to determine the potential level of participation in golf based on population age, family and income characteristics. Existing population projections will be reviewed for the market area and two county areas to determine potential growth rates. In addition, if household age and income projections are not available, we will order these for the market area from industry data projection sources In order to assess the potential growth in demand for golf facilities. 1.6 Estimate Overall Market Demand. Based on the above tasks, an estimate of overall market demand, that is, support for rounds of play on an annual basis will be prepared for the designated market area(s). This will result in an overall assessment of market support for a facility(s) within the primary market area. A memorandum summarizing the market support potential will be prepared for review by you prior to proceeding with Task 2. Task 2 - Facift Market Analysis Task 2 focuses on identifying the specific market support for the proposed facility. Given an overall support level within the primary market area as determined in Task 1, this task identifies the positioning of the expanded facility to achieve appropriate levels of utilization. 2.1 Site Analysis. An analysis of the proposed site will be undertaken to determine the appropriateness of the site's configuration for the expanded golf facility and its location and accessibility factors in terms of access by residents within the primary/secondary market areas as well as access by other sectors of demand as identified In Task 1. This task does not envision detailed engineering studies. Its purpose is to identify those market factors which could be affected based on the site's location, accessibility, and configuration. 2.2 Analysis of Competitive Supply. A detailed analysis of the competitive supply as identified In Task 1 will be undertaken. Existing facilities which are deemed competitive as well as those that are under construction or proposed for development will be identified In order to understand the competitive environment within which the proposed facility will operate during Its Initial years. Emphasis will be placed on maximizing the level of play at the expanded facility and the rate structures which would be necessary to remain competitive with other facilities. 2.3 Proiect Current and Future Demand. Based on the competitive analysis, an estimate of existing demand which could be captured by the expanded facility will be prepared. In addition, estimates of future demand will be projected based on market area demographic characteristics and anticipated development patterns of new facilities in the near future. An estimate of facility utilization, that Is, rounds of play and the proposed fee structure will be developed so as to maximize the economic viability of the facility while meeting service requirements of the residents of the market area. City of Sebastian Page 4 2.4 Facility Recommendations. Based on the above analyses, recommendations for the facility will be developed to serve as a guide for the development of specific cost estimates and financial projections for the facility which would be developed as part of a latter phase of this program. The facility recommendations will consider the golf course, clubhouse, golf shop, golf range, snack bar, car storage, and maintenance facility requirements. 2.5 Presentation Meeting. Upon completion of the market analysis, we would be prepared to meet with you to discuss the results of our analysis and conclusions. Task 3 - Preliminary Financial Protections Upon the completion of the market analysis, we will finalize our conclusions and, with your approval, proceed with the financial analysis of the project. 3.1 Develop Financial Assumptions. Financial assumptions for facility operating revenues and expenses will be developed to serve as the basis for preparing facility financial operating projections. The source and basis for the assumptions will be identified. Estimates of project development costs will be provided by the City of Sebastian. These estimates will serve as the basis for the development of the project financing structure. 3.2 Develop Net Operating Income Protections. Projected net operating Income (cash flow before debt service) will be prepared based on the financial assumptions as prepared In Task 3.1. The projections will be presented in both uninflated and inflated dollars and will be In sufficient detail to reflect major revenue and expense categories. income projections will Include greens fees, golf car rental, golf shop, food and beverage and other departments as appropriate. Expenses will be prepared for go€f course maintenance, other departments and for administrative and other fixed charges. Assumptions underlying inflation estimates will be made explicit In the financial section of the final report. 3.3 Develop Financing_ Structure. Based on the proposed method of financing, we will develop a financing structure for the project. The structure will Identify project equity and debt requirements, based on project development costs and net operating income projections. Projections of cash flow after debt service on the proposed facility will be prepared. Task 4 - Market Analysis and Financial Feasibility Report At this point in the engagement, we will meet with you to discuss our findings. Upon your approval, we will proceed to prepare the final written report documenting our findings, conclusions and projections. Although the exact format of the report may vary, major topics to be covered include the following: o Introduction o Executive Summary o Site Evaluation o Economic Environment o Market Analysis o Development Conclusions o Financial Projections City of Sebastian Page 5 The specific tasks are: 4.1 Prepare Draft Report. We will prepare a draft report summarizing our findings and conclusions. We envision the draft report to be produced in a black and white, typed, laser printed format with supporting exhibits as appropriate, also prepared in black and white. 4.2 Client Review - Draft Report. We have allotted a two week period for client review of the report. 4.3 Prepare Final Report. A final report, will be completed no later than two weeks after receipt of comments. Ten (10) copies of the report will be delivered. Our report will not ascertain the legal and regulatory requirements applicable to this project; including zoning, other state and local government regulations, permits and licenses. Further, no effort will be made to determine the possible effect on these projects of present or future federal, state or local legislation including environmental or ecological matters of interpretations thereof. Our report will contain a statement to that effect. Our study will be based on estimates, assumptions and other information made available to us during the conduct of our study, the sources and bases of which will be stated in the appropriate sections of our report. Some assumptions inevitably will not materialize, and unanticipated events and circumstances may occur; therefore, actual results will vary from those described in our reports, and the variations may be material. Our reports will contain a statement to that effect. We will have no responsibility to update our report for events and circumstances occurring after the date of our report. We will so state in our report. However, we will be available to discuss the necessity of revision In view of any such changes. PROJECT STAFFING This section identifies and briefly outlines the capabilities of the project staff proposed for this project. The following are the responsibilities of the key staff: John Rossi, would serve as the project director and will be responsible for overall management and direction of all phases of the project. He will be the single point of responsibility. He will see that the various staff roles are coordinated, ensure team communications, and see that the project moves forward on time. He has extensive experience in the management of complex market and financial analysis of development programs. Specific PGA staff are available to provide support to the project in both a policy advisory capacity as well as serve a specific technical resources for the project. Resumes of the key project staff are attached to this letter. In addition to these senior personnel, our PGA offices in Palm Beach Gardens, Florida and our section offices have substantial support staff to meet specific requirements for individual tasks. Our offices are linked by computer and fax machines. PROJECT SCHEDULE We envision initiating the work program upon authorization to proceed. We estimate that the draft report could be prepared within a 6-8 week period after the start of work. Specific timing will be developed as part of the preliminary planning proposed as part of Task 1. 9/25' City of Sebastian Page 6 ESTIMATED FEES AND EXPENSES Fees for the services outlined will be based on the time required to complete our study which will be determined in part by the complexities of the market and the availability of data essential to the evaluation process. Our fees will be computed based on our standard hourly rates for the professional staff assigned. Based on our experience with similar projects, the preliminary information received and on our project plan, we estimate our fees as follows: TASK ESTIMATED FEE TIMING (Weeks) 1. Preliminary Planning Review and Market Assessment $ 5,000 2-3 2. Facility Market Analysis $ 5,000 1-2 3. Preliminary Financial Projections $ 2,500 1-2 4. Market and Financial Feasibility Report $1,000 223 TOTAL FEES $13,500 6-8 We do not expect that our fees will exceed this estimate. However, If unforeseen circumstances did occur that would adversely affect our fees, we would discuss the situation with you before expending additional time and expense. Should less time be required than we now anticipate, you will, of course, be billed a lesser amount. Every effort will be made to keep our time to the minimum consistent with the requirements of the engagement. Out-of-pocket expenses such as computer costs, graphics, purchase of demographic projections, travel, subsistence, telephone, report reproduction and similar costs will be billed separately at our cost. Typically out- of-pocket expenses are 10-15 percent of the estimated fee for an engagement of this type. However, due to your proximity, we are prepared to limit these costs not to exceed $750. Billings for fees and expenses will be rendered monthly and are payable upon presentation. All outstanding invoices must be paid prior to the issuance of any summary, letter or report. Our fee estimate provides for approximately eight (8) hours of conference time. Any additional meetings with respect to the engagement would be billed separately for actual hours spent at our standard hourly rate. It is our policy to require a retainer In the amount of forty percent of our estimated fee upon acceptance of a proposal. However, as a municipal client, we are prepared to waive this requirement. If the market analysis is terminated or if the decision is made to discontinue our study, our fee will be based upon the time and out-of-pocket expenses incurred to that date. e_l�. n S City of Sebastian Page 7 OTHER TERMS OF ENGAGEMENT Our report may be used for your internal planning purposes and to support your efforts in securing financing for the project. if the feasibility report is to be included as part of a development package or public finance document, we will need to review the entire document prior to its release. Should the date of our report be more than ninety (90) days prior to your document Issuance date, we may require an update of our report prior to its use in conjunction with your documents. Use of our report In this manner will require prior written approval by PGA Goff Services. You agree that use of the report is limited to the purposes identified, and that the report is not intended and shall not be used so as to establish or imply any affiliation, association, or other relationship between the City of Sebastian and the PGA of America. Any reference to the report, or reference to the PGA Goff Services, Inc., or the PGA of America in connection with the report will require prior approval In writing from PGA Goff Services, Inc. PGA Goff Services makes no warranty respecting the financial viability of the proposed facility. The City of Sebastian agrees to indemnify and hold PGA Goff Services, its parent corporation, officers, directors, employees, agents and affiliates harmless from any against any and all claims, costs, damages, penalties, fines and expenses of any kind including attorney fees, (whether incurred In preparation for trial, at trial or on appeal) concerning the proposed facility. QUAURCATIONS AND PRIOR EXPERIENCE PGA Golf Services, Inc. specializes in providing quality advisory services in the area of golf course development, financing, and operations. PGA Goff Services, Inc. was incorporated In October, 1986 as a wholly owned subsidiary of the PGA Corporation. The PGA of America, formed in 1916, is the nation's largest sports association with a total membership of over 18,000 members and apprentices at over 6,800 golf facilities in the United States. The PGA conducts a variety of programs and events Impacting nearly every aspect of the game of golf. PGA Goff Services, Inc. was formed in response to the continuing growth of the golf Industry and the long term mission of the PGA to promote the development of the game. Our practice focuses on providing value to our clients by: o Providing quality advisory services In the areas of golf course development, financing and operations. o Delivering of personalized service with emphasis on practical solutions. o Offering nation-wide and local area perspectives, drawing on the strength of PGA members and sections throughout the country. o Utilizing a staff of PGA golf professionals and finance and real estate Industry professionals with diversified backgrounds. City of Sebastian Page 8 Our Services The consulting group within PGA Goff Services, Inc. is involved in providing advisory services In three major areas. They are: golf course development, golf course financing, and golf course operations. These service areas are consistent with our goal of facilitating both the development of new golf facilities and improvement of existing golf operations where necessary. The service areas are briefly described in the following section. o Development Advisory Services - With the growth In demand for new golf facilities throughout the country, PGA Golf Services advises developers, local and state governments, private owners and Investors, and the military In the areas of development of new facilities. Our services include the preparation of market analyses and/or needs assessments for individual projects and local areas. We also assist owners in the development of project concepts for new golf facilities. This includes the integration of golf facilities with other uses within large scale residential communities and resorts. PGA Goff Services will often work as part of a development team In the planning and due diligence stages of a project. o Financial Advisory Services - PGA Golf Services provides advisory services in the areas of project financial feasibility, financial operations, and project financial structuring. with the continued growth In public and private daily fee facilities, appropriate project financing structures are critical to the success of the golf facility. o Golf Operations Advisory Services - Assisting clients In improving operations and financial performance at existing golf facilities is a third areas of service. Activities include operation reviews, assessment of the golf course and physical Improvements, the golf program, merchandising and marketing efforts, and management and organization analysis. Our Organization The PGA Golf Services consulting practice is located at the PGA of America national offices in Palm Beach Gardens, Florida. As such, PGA Goff Services has the direct accessibility to the more than 90 staff members of the PGA of America In addition, PGA Goff Services works with the 41 local sections of the PGA throughout the United States. Q463014.SCO 4�i )ns r; City of Sebastian POST OFFICE BOX 780127 ❑ SEBASTIAN. FLORIDA 32978 TELEPHONE (407) 589-5330 FAX 407-589-5570 M E M 0 R A N D U M DATE: January 19, 1993 TO: Lonnie Powell, Mayor& Sebastian City Council FROM: Robert S. McClary (11_ _ RE: Golf Course Expansion Appraisals This is to inform you that we have received the appraisal report from Armfield-Wagner for the two parcels being considered for the Golf Course Expansion. The report is one hundred and forty-three (143) pages plus addendums and is on file in the City Clerk's Office for your perusal. However, I have attached the summary page for your information. We do not have a recommendation at this time since we have not had an ample opportunity to review the contents of this report. /sg ARMFIELD-WAGNER APPRAISAL & RESEARCH, INC. PETER D. ARMFIELD. MAI. ST. CERT. GEN. REA 00000524 VERO BEACH. FLORIDA 3229677-0797 RICHARD L. WAGNER. MAI. ST. CERT: 6EN. REA •0000606 DANIEL D. FULLER. MAI. ST. CERT. GEN. REA +0000567 TELEPHONE (4077 5620532 FAX 407-778-1121 January 15, 1993 Mr. Michael L. Hudkins, CPA City of Sebastian Post Office Box 780127 Sebastian, Florida 32958 Dear Mr. Hudkins: As requested, we have inspected the two vacant properties known as the St. Sebastian and Collier Place which consist of a 312 acre parcel and 185.84 acre parcel located north of Main Street adjacent to the Sebastian golf course in Sebastian, Florida. This is for the purpose of providing you with an appraisal of the Market Value of the fee simple interest to these properties as of December 4, 1992. Market Value estimates are also made of the remainder parcels if the 18 proposed hole expansion of the existing Sebastian golf course was complete as of the appraisal date. The property is physically described in the following report of 143 pages. The opinions expressed in this report and the value conclusion reported below are subject to the general and special limiting conditions on pages 1 through 4. A single approach to value was used consisting of the Sales Comparison Approach. Based on the analyses presented in this report, it is our opinion that the Market Value of the fee simple interest to the property appraised, on December 4, 1992 is as follows: PARCEL A: St. Sebastian (312 acres) $3,500,000 Remainder Parcel (217 acres) AS IF GOLF COURSE COMPLETED $2,675,000 PARCEL B: Collier Place (158.84 acres) $1,950,000 Remainder Parcel (94 acres ±) AS IF GOLF COURSE COMPLETED $1,550,000 We believe the report to be complete, but any questions you may have are welcomed. Sincerely, 7aniel A. Nelson 3t.Cert.Gen.REA #0000897 `.•AN/PDA/caa $CAA Peter D. Armfibeld, MAI St.Cert.Gen!ZEA #0000524