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Home My WebLink AboutItem 10 - Golf AcademyMEMO TO: FROM: MEETING DATE: SUBJECT RECOMMENDATION: tTEM 0 /0 -- HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL ROGER NELSON, CITY MANAGER/ JANUARY 21, 2003 RECOMMENDATION TO ESTABLISH A GOLF ACADEMY City Council to consider approval of a staff recommendation to establish the Grapevine Golf Academy at Grapevine Golf Course. FUNDING SOURCE: See attached Budget BACKGROUND: As completion nears for all three phases of the golf course expansion and renovation, Staff examined options of how to best utilize the course and how to best market the facility. The Staff considered options which allowed for the maintenance of high quality course conditions and increased play at the course. With that in mind, Staff proposes the addition of another level of service — the Grapevine Golf Academy. The program would become a division of the Grapevine Golf Course and would be managed by a contract employee who would work for the Director of Golf. The new employee's title will be Director of Instruction. He or she will be paid a minimum base pay of $23,400 plus City benefits. The balance of the income will be obtained from commissions received from a percentage of sales of lessons, clinics, schools and other instructional activities conducted at the Grapevine Golf Course. The base pay and base benefit costs for start up will be obtained from utilization of a portion of the part- time/temporary funds budgeted in the Lake Enterprise Fund. The balance of the commission income plus salary based benefits will be obtained from fees received from academy participants. If the Academy is as successful as staff believes it will be, the Academy will become entirely self-supporting from participants fees. The FY 2003 Budget funds are needed for the start up year only. (A proposed budget is attached.) The Golf Department staff has considered the Academy concept for some time. Staff believes there is a demand for this service in the metroplex and that the concept will fit in well with the hotels in the area and the continued marketing of Grapevine as a destination. Golf academies and golf schools are a common way for golf courses to attract new uses through instruction of the game and thereby increase the numbers of individuals who will use the golf course and the food and beverage facilities. January 16, 2003 (1:53PM) The Academy represents an opportunity to offer a new service in Grapevine, as well as showcase the 27 holes of first class golf and the practice facility which can accommodate all levels of golfers from beginners to low handicappers. The 27 holes enable the Staff to keep 18 holes open for play at all times while using the "extra" nine holes for special programs such as on -course play by academy participants, family and couples twilight play, league play, walkups and overflow play from the regular 18 holes. The academy will be a key ingredient in encouraging more people to play golf and to utilize the Grapevine Golf Course. The staff attended work sessions sponsored by the National Golf Foundation (NGF) to stay abreast of issues in the golf market. The NGF is a national organization that studies trends and issues that affect the golf industry and it produces studies to assist golf course developers and operators in marketing strategies and operating plans. Studies have shown that daily fee courses have taken the lion's share of the market in recent years, as opposed to private country clubs and golf clubs that dominated the market as late as the 1970's. Daily fee courses include both privately and publicly owned courses that are open to anyone who has the price of a green fee. (Grapevine Golf Course is a public daily fee course and the Cowboy's Golf Club is a private daily fee course.) Recent trends indicate that the number of golf facilities has increased at a greater annual rate than that of the number of golfers. In 2001 the annual increase rate of facilities was shown to be at 1.9% while the number of golfers was increasing at rate 0.6%. This results in a relatively static number of golfers being spread among more golf courses in a given area. The primary cause of the increase of golf facilities is the development of real estate related golf course in housing developments. Through the Grapevine Golf Academy, Staff will offer a high quality teaching and practice facility plus a chance to play on the extra nine without the intimidation of regular players behind them. It offers students a chance to learn at their own pace from a qualified instructor and at a fee that is affordable. While Grapevine is not unique, there are not that many golf facilities in the area which can offer the whole package of high quality golf courses and practice at an affordable price. There are several other teaching facilities in the area and a brief summary of those facilities is attached. It should be noted that not many of these facilities can offer the affordability and playability of Grapevine. The staff recommends this program as an opportunity to increase play and income at Grapevine, while offering an excellent opportunity for more people to learn and enjoy the game. If this meets with Council approval, a motion to authorize the program and authorize the staff to proceed with implementation is recommended. WAG/cjc HVemoGolfAcademyl-21-03 January 16, 2003 (1:53PM) Grapevine Golf Academy Budget Base Salary and Benefits $ 32,040 Professional services (brochures) 3,600 Apparatus and tools (tent) 500 Insurance premiums 1,440 Total Base Expenditures $ 37,580 Private lessons (220 @ $90/hr) $ 19,800 3 Day clinics (16 with 6/clinic @ $400) 38,400 4 Day schools (4 with 10/sch @ $600) 24,000 5 Day Jr. Camp (4 with 10/camp @ $300) 12,000 Total Gross Revenues $ 94,200 City Share of fees $ (15,865) Green fees (12,304) Cart fees (5,376) Food and Beverage and Range fees (5,070) Supplies (4,380) Teaching Assistant fees (15,000) Subtotal uses $ (57,995) • • MM •/ 'i' MEMEMOMM Indirect revenues to City** Green fees $ 6,720 Cart fees $ 2,920 Sales of goods(% of sales) $ 1,650 Total indirect revenues $ 11,290 ** Estimated additional revenues to City due to more traffic outside the immediate Academy activities ( rounds of golf and use of facilities) AREA GOLF ACADEMIES/SCHOOLS Byron Nelson Golf School 2'h day golf school $3,000 Four Seasons Resort (includes rooms/meals Las Colinas lessons and rounds of Hank Haney Golf Ranch McKinney (other satellite) Locations in Dallas area) rate depends upon Instructor Golf) 3 day retreat 2 day retreat 3 day program 2 day program 1 day school Private Instructors $2,825 $1,900 $600-$1,280* $525-$1,120* $375-$800* Hank Haney $360/hr Other Instructors $60/$160/hr.* Arnold Palmer Golf Academy 3 day instruction $650-$930* The Golf Club at Castle Hills 2 day instruction $460-$650* Lewisville 1 day instruction $460 *depends upon instructor Private Instructors $95-$150/hr. and weekday & weekend rates The Academy at Waterchase Family Memberships Fort Worth 1't member $800 2nd member $600 each additional $400 Private Lessons rates not published The Golf Academy of Dallas 1 day of learning $600 Tennison Park Golf Course Start up clinic $128/hr. Dallas Warm up with Pros $300/group (prior to tournaments) Grapevine Golf Academy (Proposed) 3 day clinic $350-$450 4 day school $500-$700 5 day junior camp $250-$350 Private Instructor $90-$100/hr Note: The exact type of schools/clinics and other instructional events for the Grapevine Golf Academy will be tailored to needs established after completing market surveys and responding to need voiced by clientele. Fees are also estimated and will be adjusted based upon market conditions. January 16, 2003 (8:57AM)