HomeMy WebLinkAbout2015-01-24 PACKET 1445 2:45 PM HIGHWAY 61 CORRIDOR
IMPROVEMENTS
BACKGROUND PROVIDED / FUTURE
DISCUSSION TOPICS
CITY OF COTTAGE GROVE
GOLF COURSE ANALYSIS - BY DEPARTMENT
12/31/2014 - PRELIMINARY
Indirect expenses (overhead) includes full time wages,
GOLF COURSE/PRO SHOP
communications, data processing, insurance, utilities
Revenue$ 902,581
Direct expenses:
Pro shop 190,900
Maintenance 248,018
Indirect expenses:
Pro shop 194,092
Maintenance 207,711
Revenue over (under) expenses
$ 61,860
CLUBHOUSE
Fish FryLoungeBeverage CartBanquets
Revenue$ 481,557 $ 35,222 $ 138,954 $ 42,585 $ 264,796
Direct expenses$ 330,115 28,740 93,086 23,397 184,892
Indirect expenses$ 222,935 10,548 47,465 - 164,922
Revenue over (under) expenses
$ (71,493)$ (4,066)$ (1,597)$ 19,188 $ (85,018)
TOTAL
Total Net Operations$ (9,633)
Add: Transfers from General Fund
55,405
Less: Capital outlay (125,526)
Total Revenues over (under) expenses$ (79,754)
CITY OF COTTAGE GROVE, MINNESOTA
GOLF COURSE
COMBINING STATEMENT OF REVENUE, EXPENSES AND
CHANGES IN FUND NET ASSETS
For The Year Ended December 31, 2014
With Comparative Totals For The Year Ended December 31, 2013,2012,2011,2010,2009
GolfTotalGolfTotalGolfTotalGolfTotalGolfTotalGolfTotal
CourseClubhouse2014CourseClubhouse2013CourseClubhouse2012CourseClubhouse2011CourseClubhouse2010CourseClubhouse2009
Operating revenue:
Charges for services - user fees 902,581 481,556 1,384,137 904,325 461,172 1,365,497 1,005,723 555,302 1,561,025 893,415 499,693 1,393,108 1,003,630
512,718 1,516,348 1,058,113 505,286 1,563,399
Operation and maintenance:
Personal services 282,481 261,462 543,943 278,509 254,654 533,163 275,715 267,440 543,155 273,783 248,439 522,222 265,148 246,197
511,345 257,056 236,181 493,237
Commodities 114,154 18,985 133,139 112,356 19,212 131,568 115,318 23,881 139,199 117,298 18,852 136,150 102,870 17,575
120,445 86,188 23,795 109,983
Commodities - items for resale 32,264 160,819 193,083 46,116 168,706 214,822 57,835 176,805 234,640 54,694 158,928 213,622
76,081 150,991 227,072 75,551 154,929 230,480
Contractual services 59,092 111,783 170,875 43,503 112,216 155,719 52,856 117,504 170,360 35,993 107,458 143,451 41,113
101,943 143,056 39,463 107,808 147,271
Other charges - - - - - - - - -
- - - - - - - - -
Total operation & maintenance expenses487,991 553,0491,041,040 480,484 554,7881,035,272 501,724 585,6301,087,354 481,768 533,6771,015,445 485,212 516,7061,001,918 458,258 522,713980,971
Operating expenses:
Administrative and general:
Personal services179,946 - 179,946187,395 - 187,395189,252 - 189,252171,751 - 171,751170,195 - 170,195166,400 -
166,400
Commodities6,978 - 6,9787,466 - 7,4666,143 - 6,1434,179 - 4,1795,998 - 5,9986,011 - 6,011
Contractual services126,291 - 126,291114,885 - 114,885121,998 - 121,998105,313 - 105,313107,214 - 107,214107,625
- 107,625
Golf Cart Lease39,51439,51438,20038,200 -
Other charges-administrative charge - - - 51,700 - 51,70050,700 - 50,70049,200 - 49,20049,200 -
49,20049,200 - 49,200
Capital Outlay44,81880,708125,52646,42146,421
Depreciation - - - - - - 115,37657,164172,540108,13757,165165,302109,95154,334164,285113,26053,097166,357
Total administrative and general397,547 80,708478,255 446,067 - 446,067 483,469 57,164540,633 438,580 57,165495,745 442,558 54,334496,892 442,496 53,097495,593
Total operating expenses885,538 633,757 1,519,295 926,551 554,788 1,481,339 985,193 642,794 1,627,987 920,348 590,842 1,511,190 927,770 571,040 1,498,810 900,754 575,810 1,476,564
Net income from operations17,043(152,201)(135,158)(22,226)(93,616)(115,842)20,530(87,492)(66,962)(26,933)(91,149)(118,082)75,860(58,322)17,538157,359(70,524)86,835
1.9%-31.6%-9.8%-2.5%-20.3%-8.5%2.0%-15.8%-4.3%-3.0%-18.2%-8.5%7.6%-11.4%1.2%14.9%-14.0%5.6%
Nonoperating revenue (expenses)
Investment earnings - - - - - - - - -
- - - - - - 1,327 - 1,327
Miscellaneous - - - 2,349 1,087 3,436 3,163 1,847 5,010 3,749 2,347
6,096 - - - - - -
Gain (loss) on disposal of fixed assets - - - - - - - -
- - - - - - - - - -
Transfer - - 55,405 - - 53,000 - - - -
- - - - - - - -
Capital contribution - - - - - - - - -
- - - 18,021 18,021 - -
Debt service:
Interest - - - - - - - - -
- (13,163) (13,163) (1,300) (23,450) (24,750) (18,624) (30,416) (49,040)
Interfund interest - - - - - - (42,767) - (42,767) (32,000)
- (32,000) 106,500 - 106,500 (76,500) - (76,500)
Paying agent fees - - - - - - - - -
- - - (267) (338) (605) (1,637) - (1,637)
Bond issuance costs - - - - - - - - -
- (1,760) (1,760) (1,386) (1,925) (3,311) (2,252) (1,925) (4,177)
Total nonoperating revenue (expenses) - - 55,405 2,349 1,087 56,436 (39,604) 1,847 (37,757) (28,251)
(12,576) (40,827) 121,568 (25,713) 95,855 (97,686) (32,341) (130,027)
Net income 17,043 (152,201) (79,753) (19,877) (92,529) (59,406) (19,074) (85,645) (104,719) (55,184) (103,725) (158,909) 197,428
(84,035) 113,393 59,673 (102,865) (43,192)
Net Assets - January 1, as previously reported - - - - - - 1,667,036 (1,296,892) 370,144
1,722,220 (1,193,167) 529,053 1,524,792 (1,109,132) 415,660 1,465,119 (1,006,267) 458,852
Cumulative effect of change in accounting principal - - - - - - -
- - - - - - - - - -
-
Net Assets - January 1, as restated - - - - - - 1,667,036 (1,296,892) 370,144 1,722,220
(1,193,167) 529,053 1,524,792 (1,109,132) 415,660 1,465,119 (1,006,267) 458,852
Net Assets - December 31 17,043 (152,201) (79,753) (19,877) (92,529) (59,406) 1,647,962 (1,382,537) 265,425 1,667,036 (1,296,892) 370,144 1,722,220
(1,193,167) 529,053 1,524,792 (1,109,132) 415,660
Green Fee/Golf Round Break-Out
201320142015
Green Fee Revenues
Green Fee Only524,414521,580
GF w/season pass revenues567,126571,643
GF Revenues per round18.219.39
18 Hole Rounds
18 holes weekday3,0832,014
18 holes weekends3,4232,901
18 holes senior/jr6,1366,803
18 holes weekday patrons130251
18 holes weekend patrons248269
9 Hole Rounds
9 hole anytime644586
9 hole patron6770
9 hole senior/jr741763
misc 9 holes87 na
Reduced Rounds
Employee golf442493
Twi-Light7,0756,466
Value Golf91294
High School193165
Internet391254
2 for 1 Cancer Card319 na
2 for 1 PGA Card960625
Tee Master89 na
Difference Rounds4970
Kids/Adults Play Free7481,232
Military Discount5122
Bachlor Party13225
Direct Mail na na
U29303102
Foursome Special338273
Fall Golf
18 weekday324587
18 weekend487 na
18 senior/jr895895
Member Rounds3,8464,177
Total Member7051
Total Rounds31,17029,488
Golf Cart Revenues and Percentage of Golf Carts to Rounds Played
201320142015
Golf Cart Total Revenues206,881205,272
Rentals to Rounds40%41%
Twi-Light Rental to Rounds73%75%
Driving Range Overview
201320142015
Total Revenues46,19047,787
Range Revenues to Rounds1.491.62
Bucket Size Sold
Small2,6392,393
Large1,8171,758
Jumbo1,1811,300
Coupon Book Large2027
Coupon Book Jumbo2527
Season Range Members6058
Golf Merchandise Revenues
201320142015
Total Revenues65,41556,934
Revenues per Round2.11.93
Patron Card Holders
201320142015
521580
River Oaks Golf Course Business Plan
2013
Golf Course Division
Revenue Fund
Mission
River Oaks Golf Course is a Golf Digest 4'/z Star Best Places to Play facility. River Oaks will
provide a golf course that appeals to golfers of all skill levels.
Staff will provide to all customers outstanding turf conditions, service, food and beverage;
always maintaining the highest environmental standards, while keeping rates and fees affordable.
Description of Activity
18 hole golf course with great views of the Mississippi River, doubled ended driving range that
accommodates 60 golfers, golf shop with PGA Professional teaching staff, grill/golfers lounge
seating 75 and banquet facility seating 275, with an award winning patio/deck area offering
panoramic views of the Mississippi River and golf course.
Organizational Structure
City Council
EDA
City Adrninistrator
General Manager/Golf
Professional
MAINTENANCE GOLF OPERATIONS FOOD & BEVERAGE
Superintendent Golf Professional Food & Bev. Manager
Asst. Superintendent Golf Shop Staff (PT) Asst. F&B Manager
Grounds Crew (PT) Grill/Banquet 5taff (PT)
Team Structure of River Oaks Golf Course
River Oaks was created and developed as an enterprise of the City of Cottage Grove in 1989
Financing was provided by a Revenue issuance of the City Economic Development Authority.
As such, River Oaks has a reporting relationship up through the EDA. Initially a division of
Public Works River Oaks, it is currently a division of the Department of Administration of the
City of Cottage Grove.
River Oaks opened for business in 1991. In 1996 the Cottage Grove City Council approved a
staff reorganization plan.. Under this plan, Bruce Anderson, Golf Professional/Manager was
assigned the responsibility of overseeing and directing Golf Operations, Maintenance, and Food
and Beverage. In 2001 (CONFIRM) River Oaks was expanded to include a 7,000 square foot
lounge and banquet facility. This facility serves as an expansion of the initial Pro Shop.
Bruce Anderson has been the Golf Professional/Nlanager since the course opened in 1991. He is
a Class A member of the Professional Golfers Association of America. In 1994, 1995, 1996, and
1997 he won the Minnesota PGA Section Horton Smith Award from the Minnesota PGA Section
for his service and contributions to improving the educational opportunities for PGA
Professionals. In 2001-2002 he was elected Minnesota PGA Section President and in 2002 was
given the Minnesota PGA Section highest award as Golf Professional of the Year.
Ben Ratzlaff has been with River Oaks since its' opening in 1991. He is currently the Course
Superintendent. He is a class A member of the Golf Course Superintendent's Association of
America. Ben has a Bachelor of Science Degree in Agriculture Engineering Technology from the
University of Wisconsin at River Falls.
Chad Snuggerud has been with River Oaks since 1993. He is currently the Assistant Golf
Course Superintendent. He is a class C member of the Golf Course Superintendents Association
of America. Chad has a Bachelor of Science degree in Environmental Horticulture with an
emphasis in landscaping and turf from the University of Minnesota.
Sue O'Connell has been with River Oaks since 2000 and has been the Food and Beverage
Manager since 2005. She has a Certificate in Food and Beverage Management from Lakewood
Community College.
River Oaks Golf Course golf operations has one full time and twenty seasonal staf£ The
Maintenance Department has two full time with twenty seasonal employees. The Food and
Beverage Department has two full time with thirty seasonal positions.
Staffing for the golf season is weather dependent with itinerant staff generally available from late
7anuary through October with full staffing from May through August. Annually, itinerant staff is
trained on specific j ob duties and responsibilities, customer service, weather situations,
emergency situations and other j ob related procedures.
Seasonal Wages
Hours Wages Cost/Hr
Maintenance
2012 10,380 106,435 $10.25
2011 10,076 102,757 $10.20
2010 9, 827 99, 570 $10.13
Ave 10,094 NA NA
Clubhouse
2012 11,239 124,921 $11.11
2011 10,327 113,043 $10.95
2010 10,386 116,517 $11.22
Ave 10,651 NA NA
Pro Shop
2012 7,264 73, 871 $10.17
2011 6,393 62,903 $ 9.84
2010 7,166 65,867 $ 9.19
Ave 6, 941
Total
2012 28,883 305,227 $10.57
2011 26,796 278,703 $10.40
2010 27,379 281,954 $10.30
Summary: Hourly wage cost for the operation increased 0.97% for 2011 and another 1.63% for
2012. For 2013, 2014, and 2015 an assumption of 2% increases in each year seems appropriate.
2012 was a longer golf season than is typical which explains, at least in part, the increase in
seasonal hours. Golf operations have been flat in recent years while there has been moderate
growth in customer bookings on the banquet side. Recognizing stable golf activity an annual
goal of 10,000 seasonal hours in maintenance, 6,800 hours in the pro-shop and 10,800 hours in
the clubhouse should be achievable (total per year of 27,600 hours).
Vulnerabilities and Risks
*Golf, much like agri-business, is weather dependent. Fiscal performance cycles based upon
early or late springs, early or late falls, excessive heat, too much or not enough rain and even
inclement weather forecasting that may not actually come to fruition
*Competition and marketing; program and pricing actions of the competition
*Growth or lack thereof of market demand versus supply of golfing opportunities within the
market (such as growth of the junior market as future customers); the entire Twin Cities golf
market is our competition; golfers will drive significant distances to sample various golf venues;
golf loyalty programs are both an opportunity and a risk
*Customer time or disposable income availability allocated to golf versus other recreational,
personal, or entertainment options
*Potential for change in leadership or direction from the owner (City Council/EDA),
administration or within golf/F&B/maintenance operations.
*Holes 11-17 are on leased premises from 3M; lease extensions currently terminate in 2023
*Increased costs due to equipment failure, equipment replacement and human error.
*Budget constraints for operations or maintenance of capital facilities.
*Travel time impediments such as have existed with the eight year 494/61 Wakota Bridge
proj ect 2002-2010, Hwy 61 overlay proj ect of 2011 and the 2012-2014 Hastings bridge
reconstruction proj ect.
*Turf Disease on golf course or perceived lack of quality of fairways, greens and tee boxes by
the customer
* Flooding due to storms and irrigation breaks
*Loss of water due to well failure, irrigation failure and potential future government regulations
*drought impacts overall quality of non-irrigated rough areas
*winter kill caused by ice cover
*damage caused by golfer divots, ball marks, etc
*criminal activity from vandalism and theft
*cart traffic causes compaction resulting in thinning of turf
*storm/lightning damage to irrigation system and wind damage to trees/facilities
*insects cause damage to turf and trees
*power outages
*having course open during adverse conditions including frost, excess water, and dormant turf
*supplier cost increases
*customer priorities or desire changes such as loss of ineeting bookings due to internet/video
conferencing held at business locations vs venues such as River Oaks
*not remaining current with trends, technology, social networking facility aesthetics/decor
Objectives
*Revenues exceeding expenditures / maintain sound business practices
*Pay back or assign EDA loan by 2023
*Provide recreation to the community of Cottage Grove and others
*Continue to elevate Golf Digest, Hackers Guide and other ratings of facility
*Provide employment opportunities for area residents
*Provide golf learning center for development
*Provide golf league opportunities for all ages and genders
*Provide affordable golf for all ages and abilities
*Provide friendly, helpful and prompt customer service
*Retain and grow customer base both from within Cottage Grove and the rest of the market
*Grow Tournament Bookings and Satisfaction Ratings
*Provide appropriate teeing grounds for all abilities
*Keep up to date with newest trends in golf
*Market facility with traditional and non-traditional methods to motivate people to
utilize River Oaks facilities
* Strive to be the first course within the Twin Cities market to open and last course to close
*Continue to contribute to positive market value growth of adjacent residential properties
*Maintain high quality of turf with minimal disruption to customers
*Maintain the physical plant/facilities within budget guidelines; below mean of competition
*Recruit and retain high quality staff
*Keep cost of goods as low as possible
*Seek out additional partnerships and ways to raise awareness/promotion of services/products
delivered
*Continual updating of the facilities
*Continual improvement of www.riveroaksmuni�olf.com and www.riveroasweddin s.g com
*Improve the experience of Brides through such as development of a Bridal Room
*Continual improvement to ceremony site, provision of outdoor chairs and the like
*Provide improvement for photo opportunities for special events
*Provide patio improvements
Product/ Services/Future Products and Services
Current Product
1. 18 hole golf course
2. 75 golf carts
3. 60 stall driving range
4. practice putting/chipping green
5. full service golf shop
6. starting times
7. vending machine
8. snow golf
9. Golfers lounge/grill with seating up to 60 guests
10. Banquet facility seating up to 275 guests
11. Ceremony site
12. On and off site catering
Current Services
1. group, private, ladies only, adult, junior golf lessons
2. golf club fitting and rental
3. golf leagues for men, ladies, juniors, couples, seniors
4. outside tournament play
5. daily golf play to public
6. golf cart rental
7. Snow Golf
8. Golf Range
9. retail golf shop
10. Basic grill menu
11. Beverage service
12. Facility handicap accessibility
13. On site and off site catering
14. Banquet room facility rental
15. Liquor
16. Event planning
Future Products
1. 3 hole short golf course
2. Bridal room
3. Partnership opportunities/leveraging
Future Services
1. 3 hole short golf course for golfer development
2. Partnership opportunities/leveraging
3. Hotel Shuttle Service for banquets
Area Competition/Competitors
Golf Course Market Competition
Spring 2013
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Stoneridge Lake Elmo 74.00 49.00 53.00 16.00 16.00 4.5 915 5 stars
Prestwick Woodbury 60.00 34.00 29.00 20.00 11.00 4 937 NR
Miss. Dunes Cottage Grove 44.95 29.95 16.00 16.00 4.5 901 4 stars
Eagle Valley* Woodbury 38.00 24.00 26.00 10.00 10.00 NR 876 NR
Keller* St. Paul 36.00 20.50 26.00 16.00 12.00 4 672 NR
Oak Marsh Oakdale 33.00 19.50 20.00 16.50 12.00 NR 923 5 stars
Inverwood* Inver Grove Heights 30.00 17.00 20.00 17.00 12.00 3.5 788 NR
Manitou Ridge White Bear Lake 34.00 19.50 25.00 14.50 11.00 3 723 NR
Emerald Green Hastings 29.00 18.00 20.00 15.00 10.00 NR 802 NR
Goodrich* St. Paul 33.00 19.00 24.00 14.50 11.00 3 844 NR
Clifton Highlands Prescott 26.00 16.00 19.50 15.00 10.00 3.5 790 NR
Bellwood Oaks Hastings 25.00 14.00 20.00 15.00 15.00 3.5 917 NR
Hidden Greens Hastings 25.00 13.00 16.00 15.00 15.00 3.5 918 NR
Les Bolstad Falcon Heights 33.00 17.00 29.00 16.00 10.00 3.5 838 NR
Tartan Park Lake Elmo 39.00 19.00 25.00 16.00 16.00 NR 787 NR
Rich Valley Rosemount 28.00 17.00 19.50 16.00 15.00 NR 657 NR
Highland National St. Paul 33.00 21.00 21.00 15.00 14.00 2.5 665 NR
Phalen St. Paul 33.00 21.00 21.00 15.00 14.00 2.5 672 NR
Como St. Paul 33.00 21.00 21.00 15.00 14.00 2.5 590 NR
Loggers Trail Stillwater 35.00 18.00 16.00 12.00 NR 788 NR
Sawmill Stillwater 18.00 16.00 18.00 16.00 10.00 3.5 872 NR
Summit Cannon Falls 35.00 18.00 18.00 15.00 10.00 NR 708 NR
Gopher Hills Cannon Falls 24.00 13.00 19.00 15.00 3.00 NR 794 NR
Troy Burne Hudson 80.00 62.00 19.00 13.00 4.5 915 NR
Afton Alps Afton 24.00 12.00 19.00 14.00 14.00 NR 634 NR
Oaks Glen Stillwater 25.00 19.00 25.00 15.00 19.00 4 881 NR
Summary
Average w/o top 3 30.41 17.53 21.36 15.02 11.91 3.36 785
Average Total 35.69 19.89 24.77 15.52 12.50 3.53 800
River Oaks Cottage Grove 30.50 19.50 19.45 15.50 10.50 4.5 899 5 stars
Competition/Competitors Golf Course Amenities
Stoneridge: 18 holes, range, banquets
Prestwick 18 holes, range, home lined holes, banquets
Mississippi Dunes: 18 holes, range, Mississippi River Views, banquets
Eagle Valley: 18 holes, range, home lined holes
Keller*: new 18 holes, range, banquets
Oak Marsh: 18 holes, range, banquets
Inverwood*: 27 holes, range, snack bar
Manitou Ridge: 18 holes, snack bar
Emerald Greens*: 36 holes, range, banquets
Goodrich*: 18 holes, snack bar
Clifton Highlands: 18 holes, range, banquets
Bellwood Oaks: 18 holes, snack bar
Hidden Greens: 18 holes, snack bar
Les Bolstad: 18 holes, range
Tartan Park 18 holes, range, banquets
Rich Valley: 18 holes
Highland National: 18 holes, range
Phalen: 18 holes, range
Como: 18 holes, range
Loggers Trail: 18 holes, range
Sawmill: 18 holes, range
Summit: 18 holes, range
Gopher Hills: 18 holes, range, banquets
Troy Burne: 18 holes, range, small banquets
Afton Alps: 18 holes, banquets
Oaks Glen: 18 holes, range, banquets
*municipal
2013 Hackers Guide Ratings 2013 Hackers Guide Ratings
Metro Area 18 Hole Public Courses Metro Area 18 Hole Public Courses
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Rush Creek � Maple Grove 945 $128.00 4 Boulder Pointe Elko 777 $ 49.00 NR
StoneRidge Stillwater 915 $100.00 4.5 Dahl reen Chaska 755 $ 49.00 3.5
The Wilds Prior Lake 913 $ 96.00 4.5 Tanners Brook Forest Lake 732 $ 49.00 NR
Le ends Prior Lake 794 $ 89.00 4.5 Highland National St. Paul 665 $ 49.00 2.5
Meadows at M stic Lake Prior Lake 758 $ 85.00 NR River Oaks Cottage Grove 899 $ 48.50 4.5
Chaska Town Course Chaska 936 $ 83.00 4.5 Pheasant Acres Rogers 793 $ 48.00 3
Prestwick Woodbury 937 $ 80.00 NR Francis A Gross National Minnea olis 868 $ 47.00 3.5
Stonebrooke Shakopee 839 $ 74.00 3.5 Columbia Minnea olis 830 $ 47.00 3
Deer Run Victoria 899 $ 69.00 4.5 Meadowbrook Ho kins 789 $ 47.00 3
Island View Waconia 794 $ 69.00 3 Manitou Ridge White Bear Lake 723 $ 47.00 3
Mississi i Dunes Links Cotta e Grove 901 $ 65.95 3.5 Elm Creek Plymouth 713 $ 47.00 NR
Ridges at Sand Creek Jordan 902 $ 59.00 4 Hiawatha Minneapolis 679 $ 47.00 3.5
Bunker Hills Coon Rapids 857 $ 59.00 4 Theodore Wirth Golden Valley 596 $ 47.00 3
Edinburgh USA Brooklyn Park 836 $ 59.00 4 Green Haven Anoka 767 $ 46.50 3
Loggers Trail Stillwater 788 $ 59.00 NR Chomonix Lino Lakes 645 $ 46.50 3.5
Victor Links Blaine 809 $ 58.25 NR Goodrich Maplewood 844 $ 46.00 3
Ea le Valle Woodbur 876 $ 58.00 NR Oneka Ridge White Bear Lake 814 $ 46.00 2.5
Bluff Creek Chaska 832 $ 58.00 2.5 Rum River Hills Ramsey 805 $ 46.00 2.5
The Refuge Oak Grove 822 $ 58.00 4 The Ponds St. Francis 779 $ 46.00 NR
Links at Northfork Ramsey 940 $ 57.00 3.5 Phalen Park St. Paul 672 $ 46.00 2.5
Majestic Oaks-Signature Ham Lake 812 $ 56.00 3 Como St. Paul 590 $ 46.00 2.5
Inver Wood Inver Grove Hei hts 788 $ 56.00 3.5 Bellwood Oaks Hastin s 917 $ 45.00 3.5
Valle wood A le Valle 854 $ 55.00 3.5 Shamrock Corcoran 708 $ 45.00 NR
Fox Hollow St. Michael 829 $ 55.00 3.5 Fountain Valley Farmington 624 $ 44.00 NR
Pebble Creek Becker 723 $ 55.00 4.5 Daytona Dayton 582 $ 44.00 2.5
Creeks Bend New Prague 689 $ 54.50 NR Hidden Greens Hastings 918 $ 43.00 3
Oak Marsh Oakdale 923 $ 54.00 NR Sawmill Stillwater 872 $ 43.00 3.5
Braemar Edina 881 $ 54.00 4 Dwan Bloomin ton 695 $ 43.00 NR
Baker National Medina 834 $ 53.00 4 Afton AI s Hastin s 634 $ 42.00 NR
Tartan Park Lake Elmo 787 $ 53.00 NR Gopher Hills Cannon Falls 794 $ 41.00 NR
Cannon Cannon Falls 794 $ 52.50 3.5 Rich Valley Rosemount 657 $ 41.00 NR
Valley View Belle Plaine 838 $ 52.00 2.5 Hollydale Plymouth 707 $ 37.00 2.5
The Summit Cannon Falls 708 $ 52.00 NR Sanbrook Isanti 572 $ 29.00 NR
Les Bolstad Falcon Hei hts 838 $ 51.00 3.5 Average of 75 Courses 791 $ 54.78 3.39
New Prague New Prague 822 $ 51.00 3
Emerald Greens Hastings 802 $ 51.00 NR Mean: $54.78
Southern Hills Farmington 746 $ 51.00 3 Median: $50 to $50.50
Keller Maplewood 672 $ 50.50 3.5 Mode: $47
Oak Glen Stillwater 881 $ 50.00 4
Ma�estic Oaks-Crossroads Ham Lake 816 $ 50.00 3 Most proximate to CG
Sundance Golf & Bowl Maple Grove 784 $ 50.00 2.5 Highest Rated Courses
Brookview Golden Valley 768 $ 50.00 3 Highest Frequency Fees
Banquet Facility Competition/Competitors
8anquet Food &
Qff-Slte O�rSlte Ceremory Room Bar& Golfz�s Rer�al Bererege Pn�atel Bndal Ma»imum Wadding #ofHotels Shuttle Liquor CekeG�rt Hendicap
p Parking p
Yes Yes Yes Yes Yes Yes $895.D0 $9,500,00 Puhllc Yes 350 Yes Yes 5 No Yes $50 [flat Yes
Dlher Golf Courses
iJ Mississippi
NIA Yes Yes Yes Yes Yes $1,000 $6,Q00,00 Publlc Yes 300 NIA Yes 2 No Yes $1.00Iper Yes
2] Oak Marsh No Yes Yes Yes Yes Yes $80� $5,000.00 Pu611c N1A 300 No Yes 5 No Yes $1.00lper Yes
No Yes Yes Yes Yes Yes $999 $3,500,00 Public Yes* 350 Y'es Yas 0 Plo `(es $1.001per Yes
4]CliftonHighland No Yes No Yas Yes Yes $15� No Pu61ic No 160 No Yes 0 No Yes No Yes
5� Hastings $10��—
No Yes Yes Yes Yes Yes No Pneete Pdo 280 No Yes 5 No Yes IVo Yes
8� Prest�+lck
No Yes NlA Yes Yes Yes $875 $8,004,�0 Puhllc No 250 Yes Yes 5 No Yes No Yes
7) Stoneridge Golf _
NIA Yes Yes Yes Yes Yas $2,750 $4,500,00 Public NIA 345 NIA Yes PI;A Yes $1AOJper 1'es
B] Hudson Country
No Yes Yes �Ne�+J Yes 'r"es Y"es $1,500 $?,500,00 Fublic NIA 250 fdo Yes 4 No res $0.751per Yes
B�EagleValley No No NIA Y'es Nu Yes NIk NIA Publlc No 15� No Yes 3 No Yes(3�,2) rJa Yes
Olher Banquetl Caterinq Facilities
1J Little Log Cahln No No Yes* Yes No No Seasonal NIA Pu61ic Yes* 325 No Yes 0 No No NIA Yes
2) MotorSpods Be
No Yes No Yes Bar IVo Pdo No Pu611c No 60 No Yes 2 No Yes NIA Yes
3� UFUI' (Red $600
PJo No `�'es Yes Bar No c NIA Publlc No 300 No Ves 2 No Yes NIA Yes
Yes Yes No Yes Yes No No NIA Public No 50 No Yes 5 No Yes NIA Yes
5 Prom Cemer Yes Yes fJo Yes No No No 1A 000.00 Public No 400 No Yes 5 No Yes NfA Yes
8] Hope Glen $6485 Yes Yes
* = 3 hours for $540
Creating Banquet Competitive Advantage
A review of customer comments on competitive wedding/banquet venues reveals customer
desire for the following:
1. Attentiveness and follow through of venue staff; limit staff turnover and ensure
customer importance is reinforced before, during and after the event
2. Ensure a feeling that staff is taking care of things so the client does not have to worry
about event details prior, during and after the event
3. Provide clarity and simplicity in pricing; no hidden extra's; all inclusive may be an
appropriate marketing approach
4. Ensure a clean facility beyond expectations
5. Neutralize decorating for banquets to avoid the feeling that the banquet is in a golf
space
6. Attention to detail inside and outside of the facility
7. A changing room would be a highly valued amenity
Partners & Vendors
*City of Cottage Grove and all offices/employees within
*All residents of Cottage Grove as "members" by virtue of ownership
*Allied golf associations
*Golf Course Employees
*Golf, banquet, meeting, and lounge customers
*Local Business owners and employees
*Local schools including South Washington (specifically Park and East Ridge) and Hastings
districts
*Local organizations (lions, chamber of commerce, etc.)
*All golf equipment, supply, fertilizer, chemical, DJ and cart vendors and liquor, linen, paper
products, food, beverage and floral distributors
*All technology companies to reach golfers
* Washington County Health Department
Note: We must continue to leverage and work together with these groups for our business,
reciprocal arrangements, future customers, expertise and loyalty.
Advertising, Marketing Strategy, Market Define
Dangers in Discounting
1. Focuses attention on price only
2. Starts a price war you can't win
3. Affects perception of service and product (less value)
4. Quality of service affected
5. Fixed costs still exist with reduction in variable revenues
Instead, we look for ways to get the edge over discounters by offering service, ambiance,
tournament history, great golf product, great food, follow-up, quality and FLTN.
Marketing Philosophy
Customer retention, newsletters, thank-you cards and follow up, e-mail data base, social media,
very little print advertising free publicity, web page, web page ads all with a direct call to action
with required results. Engage our customers, entertain and inform customers and build
relationships so River Oaks Golf Course is their place for gol£ Reinforce reputation as a
Preferred Wedding Vendor upon location, ambiance, pricing, veteran/seasoned staff, quality food
and beverage services, on site planner, continual updates of food menu options.
Advertising, Marketing, Promotion, Sales Strategy
Sample Campaigns
Designing of an advertising campaign for a specific group of people with a specific intent/result.
Example: a campaign to the Minnesota Chapter of The Executive Women's Golf Association
would be specific to female orientated material such as ladies golf leagues, ladies lessons, or a
price reduction for showing your EWGA Membership Card at the time of purchase.
If River Oaks Golf Course has a slow time, design a campaign that will bring individuals in or
groups that might be specific to them by gender, price, or family wants or needs. Example:
Tuesday/Wednesday Senior Men 6am-l0am, attract senior men who are retired and able to play
golf at this time while others are working.
Face book, with entertaining conversational content. You tube, showing golf is fun and
entertainment; we are in the entertainment business.
Golf lessons on our web page; we are a golf course offering golf lessons; a free 2 minute video
wetting an appetite for more.
Use of testimonials on our web page and mailings has proved to attract curious inquires and
request for tournaments, leagues play and other golf options.
Use of collection points on numerous web pages to collect email addresses. These will be used
for the transferring of information and personal correspondence.
Use of Internet Free Campaigns, Tee Master (reaches 70,000 golfers), Twin Cities Golf Com
(reaches 55,000 golfers) Minnesota Golfer (reaches 23,000 golfers), Minnesota Golf Association
(100,000 golfers)
Using league residence data and electronic starting time data (all listed below) to segment where
advertising and marketing will give the best result.
Market Segmentation by Residence of League Players at River Oaks Golf Course
Tar ets Market
Other
Seniors Men's Ladies League Couples Thur
Mens
Cottage Grove 50 26 54 51 7 90 278
Afton 2 2
Apple Valley 2 2
Bloomington 0
Burnsville 1 1
Cannon Falls 1 1
Dundas 1 1
Eagan 3 1 3 11 18
Eden Praire 1 1
Farmington 2 2
Hastings 9 3 6 18
Hudson 1 1
Hudson 2 2 4
Inver Grove Heights 10 4 6 26 46
Lake Elmo 3 1 4
Lakeland 1 1
Little Canada 1 1
Mahtomedi 1 1
Maple Grove 1 1
Maplewood 3 2 5
Mendota Heights 3 1 3 1 8
MPLS 1 3 4
Newport 5 2 7
Oakdale 3 2 1 6
Osseo 1 1
Richfield 0
Rosemount 1 1 2
Roseville 1 2 3
Savage 1 1
So St Paul 4 1 2 10 17
St Paul 14 6 10 30
St Paul Park 4 1 1 6
Stillwater 3 3
Vadnias Heights 1 1
West St Paul 11 2 2 6 1 22
Westly Chapel 1 1
Woodbury 17 4 1 3 4 29
Analysis: League Players from Eagan, Hastings, Inver Grove Heights, South St. Paul, West
St. Paul, St. Paul, and Woodbury comprise 34.1% of League membership. Cottage Grove
members constitute 52.6% of inembership. Combined, these few localized communities
represent 86.7% of League membership.
Electronic Starting Times Reservation System Tracking Rounds Played 2011-2012
Tar ets Market
MN Saint Paul Public 548 MN Little Canada Public 9
MN Minneapolis Public 524 MN New hope Public 9
MN Cotta e Grove Public 336 MN Cham lin Public 8
MN Eagan Public 221 MN hopkins Public 8
MN Bloomington Public 114 MN Lakeland Public 8
MN Roseville Public 113 NJ nutley Public 8
MN Stillwater Public 93 MN Ramsey Public 8
MN Edina Public 80 MN Robbinsdale Public 8
MN Inver Grove Heights Public 80 MN Scandia Public 8
MN Maplewood Public 80 MN Monricello Public 7
MN Shoreview Public 73 WI Prescott Public 7
MN Burnsville Public 71 MN Oak Grove Public 6
MN Mendota Heights Public 70 MN Prior Lake Public 6
MN fridley Public 69 MN Shakopee Public 6
MN Oakdale Public 69 MN St Louis Park Public 6
MN Eden Prairie Public 62 MN columbia heights Public 5
St Anthony
MN Pl mouth Public 51 MN Villa e Public 5
MN St Paul Park Public 50 MN Crystal Public 4
MN Apple Valley Public 47 WI Ellsworth Public 4
MN White Bear Lake Public 47 MN Grand Rapids Public 4
MN lakeville Public 43 MN Mankato Public 4
MN Vadnais Heights Public 40 MN Medina Public 4
MN Chanhassen Public 39 MN Mound Public 4
MN Savage Public 34 MN North Branch Public 4
MN St. Louis Park Public 34 MN North St Paul Public 4
MN l�astings Public 33 CA Plumas Lake Public 4
MN Coon Rapids Public 32 WI Roberts Public 4
MN Lake Elmo Public 32 UT sandy Public 4
MN Richfield Public 31 II, South Holland Public 4
MN golden valley Public 29 MN St. Anthony Public 4
MN Arden Hills Public 28 MN circle pines Public 3
MN New Brighton Public 28 N/A marshall Public 3
MN Minnetonka Public 27 MN Rochester Public 3
MN Mahtomedi Public 26 MN Big Lake Public 2
MN N/A Public 26 MN Cannon Falls Public 2
MN Rosemount Public 26 WI Centuria Public 2
MN W. St. Paul Public 24 MN Cot Public 2
MN Lillydale Public 22 AZ green valley Public 2
MN Maple Grove Public 22 WI Houlton Public 2
MN Newport Public 22 MN Isanri Public 2
MN Marine on St.Croix Public 20 IA Johnston Public 2
MN lino lakes Public 19 WI Marinette Public 2
MN Farmington Public 16 FL Naples Public 2
WI Hudson Public 14 WI New Richmond Public 2
MN brooklyn center Public 13 MN St. Michael Public 2
MN brooklyn park Public 13 MN Sunfish Lake Public 2
MN Blaine Public 12 AZ Tucson Public 2
MN hugo Public 12 CA Turlock Public 2
MN osseo Public 12 UT West Jordan Public 2
MN s st paul Public 12 MN Willmar Public 2
MN Andover Public 10 MN Albertville Public 2
MN Cl�aska Public 10
MN Forest Lake Public 10
WI River Falls Public 10
Analysis: Electronic reservations come from throughout the Twin Cities and even beyond.
Of 3,798 rounds booked in 2011-12 through the reservation system 14.4% are from St.
Paul, 13.8% from Minneapolis, 8.8% are from Cottage Grove with another 5.8% from
Eagan. The balance are spread from around the Twin Cities and Western Wisconsin with
less than 1% coming from outside of Minnesota (likely area lodging customers).
Past Marketing Efforts for the Facility Generally
Television/Radio
1. Around Town Commercial: Channe161oca1 cable
2. KARE 11: golf tips
3. KFAN: Bruce has been called for numerous golf shows as an expert
4. WCCO Radio: Bruce worked with John Gordon from the Twins as a call in guest
5. Minnesota Twins: Bruce hit multiple golf shots at Metro Dome during 7 inning stretch
6. Produced our own commercial with Comcast for local cable ads
7. Local Government Channel: Bruce discusses what is happening at River Oaks
Print Ads
1. Local papers (Cottage Grove, Hastings Free Press, Pioneer Press)
2. Golf Minnesota: featured golf course and ads
3. Tee Time Newspaper: Featured golf course and ads
4. SAVE Coupons: direct mail
5. Golf Cart Advertising (75) carts with golf/f&b specials
6. Clubhouse Advertising: within facility
7. Minnesota PGA Golf Card: discount book with tight usage criteria
8. Cancer Card: discount book
9. Yellow Page, White Page ads
10. Country Inn and Suites: hotel advertising in room and lobby
Miscellaneous
1. Parade Floats: Cottage Grove, Hastings, St Paul Park
2. Chamber of Commerce: Business Expo
3. Taste of Cottage Grove
4. Bridal Shows: Minneapolis, St Paul, Hastings, surrounding areas
5. Minnesota Golf Show: purchased booth
6. Caribou Coffee: handed out coupons for golf with coffee purchased
7. Cottage Grove Reports
8. Direct Mail to golf course data base of 6,000
9. Ice Arena ads
10. Flyers at local schools
11. Donations to charities and local events
12. Park High School, Prescott High School Athletic Programs
13. Church Bulletins
14. Youth Expo
15. Participate in Minnesota Golf Week
16. Free Golf Lesson Campaign
17. Highway 61 advertising with monument sign
18. Social Media: Facebook and foursquare
Banquet Facility Past and Present
1. City of Cottage Grove Reports/water bill
2. Banquet room advertising with photos
3. Marketing of Pioneer Press Patio ranking
4. Santa Breakfast
5. Cottage Grove Web site
6. River Oaks web sites for current and future events
7. Yellow Pages golf and banquet section
8. Local phone book golf and banquet section
9. Ice Arena golf and banquet information for upcoming events
10. Park High School sports advertising at football stadium and all sports programs with coaches,
teachers and booster clubs
11. South Washington County Bulletin
12. Employee referral/incentive program
13. St. Agnes state fair booth promoting weddings, fall golf and food drive and Santa Breakfast
14. Country Inn & Suites
15. Spring Showcase/Business Expo at Ice Arena
16. Minneapolis/St. Paul Magazine wedding information
17. The Perfect Wedding Guide, wedding fair booth at Prom Center and Magazine / online
advertising
18. The Knot wedding advertising magazine/online
19. River Valley Brides wedding booth and magazine/on line
20. Go to Wed advertising
21. Hastings Free Press wedding/banquet advertising and fish fry
22. Social media: facebook: River Oaks, City and employees; twitter, linkedin
23. Word of Mouth
Miscellaneous Banquet
1. Local parades: Cottage Grove, St. Paul Park, and Hastings
2. River Oaks taste test
3. Marquee on Hwy 61
4. Direct emails to client website base of approx. 6000
5. Handouts at clubhouse
6. Local donations
7. Church Bulletins
8. Hastings Family Services fund raising event @ Hastings Catholic Church (food
samples/brochures)
9. KDWA for fish fry, upcoming events, school packages, banquet facility
10. Fishing contest
11. Burger Night
12. Taco Night
13. Friday Fish Fry from 1 Friday in February through Good Friday; ave guest count of 233
Going into the Marketing Future
Using the two target market research analyses from league players and electronic reservation
system gives River Oaks Golf Course the knowledge to target specific advertising areas for our
best results. This research provides a guide such that limited marketing dollars are not expensed
in areas with an expectation for little or no return on the investment.
A new Loyalty Program, a software system that tracks information about guests that visit River
Oaks Golf Course is currently under development. This loyalty program would not give
discounts, as these individuals pay full priced green fees, bring guests, give us referrals, buy
merchandise, take lessons, attend special events, play in tournaments and spend money in the
bar/grill. Providing discounts to this customer class would result in revenue declines without an
identified upside. This new system would identify Birthdays to send cards, send e-mail of a golf
story, send a survey, send a golf print, Christmas card mailing and more. In summary, identify
our best, but never ever neglect the others. The loyalty program would be based on gifts,
service, and special touches so our best customers don't want to go elsewhere.
Currently one of our best loyalty systems is the relationships that form between the Golf
Professional, our frontline employees and our regular customers. Uwe work the counter and
know who, what, why people are buying from River Oaks Golf Course and why not. We identify
our best customers, try to show special acknowledgement to them (call by name every time, just
like CHEERS), treat them special with a free range token or soda, a golf tip, special starting
time, listen to them and be their friend in golf.
We currently host approximately 195 banquets/events per year with about 30% coming from the
immediate Cottage Grove area, 40% coming from Hastings/Dakota County/Goodhue County and
30% from the remainder of the metro area. Guests for the banquet facility are attracted by
location, amenities and pricing.
Consideration will be given to reciprocity programs with other golf courses and banquet vendors.
Continued growth in on-line advertising is key including use of social media. The new POS
system will increase capabilities with gift cards, ringing merchandise from the golfers lounge,
cross record keeping, and invoicing.
Branding of River Oaks Golf Course
"This is what I am, this why I exist, if you agree, you like me, you can buy me and recommend me"
1. 18 hole golf course designed for all levels and great views
2. clean golf carts that run great
3. fun staff, ready to help you, they know my name
4. well maintained golf course, good greens
5. good teaching staff
6. care about the pace/speed of play and work for a great experience
7. have various golf programs
8. my friends play there
9. great range turf
10. fair price/good value
11. convenient
12. first to open in the spring and last to close in the fall
Note: after twenty two years in existence this is our brand, we are not high end golf, not
championship golf, we are a golf course to test all abilities, have fun and try not to be something
we are not. Staff operates on a lean budget and works for a better product each year with price
moderation if possible.
Technology
Currently the golf shop has a two cash register system for expediting customer service. The
current system was purchased in 1999. This works fine but has limitations for the Loyalty
Program discussed earlier.
Two computers are also located in golf operations, one for handicapping and the other located in
the management office for daily work The handicap computer is out dated and slow. The office
computer is out dated but runs great. One computer is located in the maintenance building. The
computer was included with the recent irrigation upgrade.
The golf shop has high speed wireless communications along with the clubhouse and the
maintenance shop for weather monitoring. The golf shop also features one large television for
customer use and one smaller television located in the management office for weather scanning.
The Golf Shop also has four telephones for use by starters/rangers, beverage cart and golf shop
staff communications. The Golf shop has a new phone system purchased Apri12013, for
customer phone calls.
The electronic monument entrance sign purchased in 2011 for advertising to cars passing on
highway 61 for golf, banquet, greetings, special/promotions, course status and tournament
players/banquet guests.
The banquet facility has recently installed large flat screen (up to 60 inch) tv's; 3 in the main
banquet facility and one in the garden lounge along with two existing in the golfers lounge. We
provide a laptop computer for guest use for power point presentations.
Golf Course Benefits to City
1. Provide recreation for current and future residents
2. Attraction to community
3. Amenity for business attraction
4. Place for employment for residents
5. Sense of ownership for residents; reinforced with member discounts
6. Help develop relationships for users of the facility
7. Property value benefit for surrounding homes
8. Pride from golf course with local and state awards
9. Environmental Stewards for water usage and agriculture
10. Gathering place for functions
11. Food and beverage alternative for residents and businesses
12.
Keys to Success
L Market and Financial responsibility- deliver the right golf course product, food beverage
product for our market and put the correct financial process in place.
2. Golf Course- creates a golf course that will stand out from the crowd and add value to the
City of Cottage Grove.
3. Clubhouse-optimize our customer experience and our bottom line.
4. Water management and irrigation-always look to invest in technology so our investments
will pay their own dividends.
5. Human Resources-attract the best people for outstanding results.
6. Golf Operations-manage facility to deliver an exceptional golfing experience and meet all
golfers needs.
7. Marketing-drive business by communicating the right message to our target customers,
and create/maintain a positive reputation.
8. Sustainability-future proof golf course and business, to stay ahead of the curve in the golf
industry and food and beverage industry.
9. Optimize our banquet customer experience that will be a one of a kind place you refer
friends to
Key Performance Indicators
1. Green Fee vs. Starting Times
It's possible to increase play and decrease revenue if you simply look at tee times.
Tracking the number of tee times and comparing them from year to year doesn't give you
a clear picture of how bookings affect revenue if you offer different green fees. We track
different green fees we charge and analyze the course play fee.
2. Repeat golfers vs. New Players
Repeat golfers cost us zero to very little in marketing dollars while first time golfers
usually require marketing expenditures to get them through the door. We try to segment
repeat golfers into three categories; occasional, regular and frequent players. An
occasional golfer may play two to three times a year. A regular player might visit six to
eight times a year, with a frequent player playing weekly and monthly. With this
information we create a plan to increase play and buying habits for each segmented
group.
3. Maintenance Costs
River Oaks Golf Course Maintenance Staff breaks down each category for tracking. This
includes labor, mowing, fertilization, watering, aeration and equipment. This allows staff
to track our costs and if there is a market change or higher expenses we can take quick
action.
4. FoodBeverage Banquets
Labor costs, labor turnover, food costs, food cost per head, kitchen management,
linen costs, liquor costs, liquor costs per head, spoilage of products, turnover rates,
average profit, booking increase/decrease along with number of individuals per booking
past history, customer satisfaction and return on investment are the key indicators. These
indicators lead us in a direction of what sells what does not and greatest profit centers.
Also, what future business decisions need to be made to kitchen, expansions and
entertainment options.
Green Fee/Golf Round Break-Out
2012 2011 2010 2009 2008 2007
Green Fee Revenues
Green Fee Only 587,352 521,349 558,707 578,151 570,260 591,559
GF wlseason pass revenues 640,756 573,349 617,707 662,745 638,350 656,687
GF Revenues per round 17.44 18.1 18.01 18.64 18.49 18.94
18 Hole Rounds
18 holes weekdays 3,027 2,391 4,334 4,389 4,319 4,229
18 holes weekends 3,699 3,924 3,460 4,383 4,693 4,348
18 holes senior/junior 6,346 6,078 6,450 6,143 5,697 5,116
18 holes weekday patrons 116 110 16 94 22 228
18 holes weeknd patron 265 223 17 22 45 229
9 hole Rounds
9 hole anytime 696 1,990 3,089 3,686 3,704 3,174
9 hole patron 61 1,224 15 16 31 72
9 hole senior/junior 843 690 995 1,127 867 798
misc. 9 holes 116 0 87 92 96 113
Reduced Rounds
Employee golf 457 512 721 503 530 659
Twi-Light 9,034 3,848 4,072 4,881 3,814 5,512
Value Golf 46 116 307 203 286 265
High school 0 140 310 815 370 900
Internet Special 567 424 611 509 351 424
Great Green Fees na na na na na na
2 for 1 Cancer Card 681 219 278 230 412 150
2 for 1 PGA Card 498 697 747 882 793 277
Tee Master Card 60 49 57 na 83 56
Differnce Rounds 63 92 74 110 370 232
18 holes Lifetime 0 na na na 370 232
Birthday 0 173 275 202 75 na
Kids Play Free 836 48 27 75 na na
Military Discount 10 21 15 48 35 na
Bachlor Party 100 99 76 46 na na
Direct Mail na na na 153 na na
u29 383 305 na na na na
Foursome Special 490 191 na na na na
Snow Golf 5
Fall Golf
18 weekday 736 1,290 702 450 670 639
18 weekend 487 750 705 499 742 913
18 senior/junior 1,328 1,449 1,499 700 1,062 1,281
Member Rounds 5,789 4,715 5,358 5,398 5,086 4,810
Total Members 75 80 89 100 90 83
Total Rounds 36,739 31,768 34,297 35,656 34,523 34,672
Average: 34,609/year
Golf Cart Revenues and Percentage of Golf Carts to Rounds Played
2012 2011 2010 2009 2008 2007
Golf Cart Total Revenues 230,481 194,271 218,708 231,225 226,756 220,593
Rentals to Rounds 45% 50% 51 % 52% 51 % 52%
Twi-Light Rental to
Round 74% 60% 61% 62% 48% 67%
Driving Range Overview
2012 2011 2010 2009 2008 2007
Total Revenues 47,871 39,736 44,271 48,171 41,478 43,199
Range Revenuesto
Rounds 1.31 1.25 1.29 1.36 1.21 1.25
Bucket Size Sold
Small 3,100 2,721 2,970 3,127 3,063 3,350
Large 2,120 1,768 1,956 2,526 2,058 2,399
Jumbo 1,485 1,172 1,314 1,665 1,366 1,411
Coupon Book (10) 22 19 15 11 22 20
Jumbo Coupon Book (10) 18 20 27 23 22 42
Season Range Members 50 46 53 34 15 na
Golf Merchandise
Revenues
2012 2011 2010 2009 2008 2007
Total Revenues 75,126 70,125 96,972 91,424 128,633 124,865
Revenues per Round 2.05 2.21 2.83 2.58 3.77 3.61
Patron Card Sales
2012 2011 2010 2009 2008 2007
Total Sales 390 365 3 4 14 18
In 2011 the Premium
Membership was
launched offering free
Patron Cards to each
and every resident of
Cottage Grove. This
membership entitles
the holder to:
$3 off 18 hole round
$2 off 9 hole round
15% off golf shop
merchandise
10% off food and
beverage
Advance start times
This provides an
opportunity to market
directly to residents as
Members: you belong,
you have a
home,which benfits
you with money
savings, ownership
pride, benefit back to
individual, builds
loyalty and repeat
rounds and multiple
sales beyond golf to
f/b and merchandise
Banquet Facility
Activities
2012 2011 2010 2009 2008 2007
Banquets 102 94 86 83 87 62
Weddings 32 32 34 31 34 43
Meetings 19 21 18 16 18 24
Golf w/Food 35 35 32 27 27 36
Total 188 182 170 157 166 165
Banquet Revenues
2012 2011 2010 2009 2008 2007
Non-Alcholic Beverages 43,124 38,503 44,157 41,257 41,241 50,663
Alcohol Beverages 167,055 154,588 156,319 152,781 145,119 177,719
Food Revenues 282,953 251,209 254,468 220,427 254,858 274,187
Total 493,132 444,300 454,944 414,465 441,218 502,569
We experienced a revenue decline in 2008-9 due to the recession and general market conditions.
We experienced a decrease in both wedding and banquet bookings during this period. Recovery,
while slow, has been occurring since. Weddings and events are very price sensitive and
spending on extras such as alcohol has declined due to both expense and liability concerns of the
customer. Our meeting capacity would be 250 days per year after weekends and holidays
depending on size of event. Therefore, in theory there is significant opportunity within this
market although our draw must be beyond the Cottage Grove business market to realize full
potential in this area. The main banquet facility can be divided into 3 rooms which all have
internet capacity, with new and additional television screens just arrived. Companies have
reduced dollars for meeting space via conference call ability. We continue to work with the
Chamber and other business groups and end users.
Several businesses we work with also move functions around the east metro. We attempt to keep
our offering and facility fresh, in fact we work with many golf tournaments that have been here
for years and offer new games, and fun events to enhance the customer experience. We require
f/b minimum for events and most small groups will go to lower cost venues such as a chamber
office or free community rooms to save dollars.
Future Equipment Replacement Golf Operations
1. New roof $100,000 (both buildings) 2014
2. Overlay parking lot $50,000 2015
3. Overlay cart paths $15,000 2015
4. Register system $40,000 2015
5. Carpet golf shop $5,000 2015
6. 3 hole short course (when available)
The 3 hole course would be located between the driving range and holes 7 and 8 with an average
length of 50-70 yards. Construction would include tree removal, grading grass seed and greens.
It would provide: family and beginner advantages, player improvement/practice opportunities.
River Oaks Golf Course Areas Maintained
River Oaks is a 159 Acre Facility. Area Breakdown:
Greens and Green Collars 3.5 Acres
• Mowed at 9/32 of an inch height
• Mowed Daily May 1 to Oct 1 and as needed April and October
• Sprayed with plant protectants as needed
• Cups changed daily May 1 to Oct 1 and as needed April and October
• Type of grass is Penncross Bentgrass
• Topdress all greens bi weekly to maintain a smooth surface and manage thatch
• Aerify all greens a minimum one time annually to relieve compaction and control thatch
• All greens receive fertilizer at a rate, which promotes consistent, healthy growth and recuperation
• All greens receive appropriate fungicide applications to prevenUcontrol fungal disease activity
• Plant protectants are applied to guard turfgrass from pests and for the overall health and vigor.
• All greens are treated to prevent or halt insect damage.
Fairways and Approaches 35 Acres
• Fairways are mowed at 11/16— 13/16 of an inch height
• Mowed as needed from opening day to June 1, then 4 times per week from June 1 to Sept 7, then
as needed until close
• Type of grass is Kentucky Bluegrass/Ryegrass/Poa
• Fairways and approaches aze aerated in the fall of every year
• Fairways and Approaches receive fertilizer at a rate, which promotes consistent, healthy growth
and recuperation
• Plant protectants are applied to guard turfgrass from pests and for the overall health and vigor.
• Fairways and approaches are treated to prevent or halt insect damage.
• Herbicides are used in the appropriate amounts and times to prevent the intrusion of weeds
Tees including Driving Range Tee 8 Acres
• Tees mowed at 11 / 16 - 13 / 16 of an inch
• Mowed as needed from opening day to June 1, then 4 times per week from June 1 to Sept 7, then
as needed until close
• Type of grass is Kentucky Bluegrass/Ryegrass/Poa
• Tees are aerated in the fall of every year
• Tees receive fertilizer at a rate, which promotes consistent, healthy growth and recuperation
• Plant protectants are applied to guard turfgrass from pests and for the overall health and vigor.
• Tees are treated to prevent or halt insect damage
• Tees receive appropriate fungicide applications to prevenUcontrol fungal disease activity
• Herbicides are used in the appropriate amounts and times to prevent the intrusion of weeds
Driving Range7 Acres
• Mowed at 13/16 of an inch height
• Mowed Weekly May 1 to Oct 1 and as needed April and October
• Type of grass is Kentucky Bluegrass/Ryegrass/Poa
• The Driving Range receives fertilizer at a rate, which promotes consistent, healthy growth and
recuperation
• Herbicides are used in the appropriate amounts and times to prevent the intrusion of weeds
Rough
• Rough is mowed at 2.5 inches.
• Herbicides are applied as needed to control weeds
Bunkers
• Bunkers are raked 4 times per week.
• They are hand edged once per season.
Irrigation System
The Irrigation system has several components:
1. Deep Well - the well fills the irrigation pond which is used to irrigate the whole golf
course. The well is pulled and overhauled every 7 years. It is due to be pulled in 2014.
Estimated cost is about $20,000.
2. Pump Plant- It has a total of 4 pumps, two SOhp, one 20hp, and a pressure sustain pump.
And one control panel. A new control panel was installed in 2004, with a life expectancy
of over 20 years. Costs $1,000- $3,000 annually to service and maintain. This comes out
of the irrigation budget.
3. Controller System-This system is being installed and programmed now. It is a Toro Links
computer with radio control. This controls all irrigation sprinklers and valves about 600
total. Cost est. $50,000 with a life expectancy of 20 years.
4. Sprinkler Heads- There are about 600. Most heads are 23 years old, with a life
expectancy of 20 — 25 years old. We replace about 20 — 30 per year. Cost is about
$3,000-$4,000 and is part of the irrigation budget.
5. PVC Pipe and Wire- The life expectancy is 20 — 30 years, our pipe is 23 years old.
Should plan on replacing by 2020. This is expensive and needs to be explored. We
currently have 30- SO leaks annually. Cost is included in labor and irrigation budget.
6. Irrigation Pond- Current pond is 3.5 — 4 feet deep. Ideally it should be 8 feet deep to add
more capacity and control weeds. It must be kept weed free to prevent pump plant failure.
Clubhouse Building and Grounds and Entrance
• Grass Type Bluegrass, Rye
• Mowed, trimmed 1 time per week from June 1 thru Sept 1
• Annual flowers planted and maintained during growing season
• Perennial plants maintained as needed
• Weeds controlled as needed
• Insecticides applied as needed
• Mulch as needed
• Repair irrigation as needed
• Wash building
• Change light bulbs
• Troubleshoot problems that arise
• Keep clean and orderly
Five Major Maintenance Expenses
Information was from the Golf Course Superintendents Association of America
2012 Maintenance Budget Survey- North Central Region
It is attached as well as a map of the region.
1. The biggest expense is labor for maintenance, which accounts for over 60%.
• All repairs to turf, equipment, irrigation etc.
• All mowing, trimming, cup changing, chemical and fertilizer applications, aerating, seeding,
tree maintenance, clubhouse grounds, cart paths, pond, sand traps, buildings, etc...
• Training, recruiting, scheduling, cleaning, organizing, purchasing, planning etc.
2. Equipment Maintenance Repair
• Parts and Hired repair cost.
3. Chemicals
• Fertilizer
• Herbicides
• Fungicides
• Insecticides
• Growth Regulators
• Wetting Agents
4. Fuel & Lubricants
• Motor Fuels
• Lubricants and additives
5. Utilities
• Power for Irrigation system
• Maintenance building electricity and natural gas
Pulling It All Together
Pulling It All Together
River Oaks is a$1.5 million recreational operation within which approximately 65% of revenues
are created through the golf operations and the balance is through the banquet facility. Revenues
are generally sufficient to cover operations but are deficient in coverage of extraordinary capital
expenditures and any financed debt. This plan supports an opportunity to adjust pricing with an
expectation of revenue enhancement perhaps in the neighborhood of 5% of current revenues.
Resulting variable costs will consume a portion of those revenues. Hence, even with aggressive
pricing/merchandising the existing debt gap will continue to at least some extent going forward.
It is recommended that the City address this gap.
At the same time, however, there are opportunities to continue to grow the operation and the
importance of River Oaks within the market place and as a community amenity. Following are
identified immediate and short term adjustments intended to improve the operation over the
2013-2015 timeframe.
Marketing
1. Reinforce benefits of Cottage Grove "membership" which are:
a. $3 off 18 hole rounds
b. $2 off 9 hole rounds
c. 15% off golf inerchandise
d. 10% off lounge food and beverage
e. Advance starting times
2. Top of fold Newsletter articles including overcoming publicity hurdles
3. Create ongoing/growing list of testimonials to rotate through publications/web/releases
4. Publicize putting, chipping, driving range amenities that are not always available at competing
venues
5. Emphasize 4.5 star, speed of play, quality of facility and turf, customer service
6. Recognize that customers often go to venues because their friends suggest their visit or take
them
7. Consider opportunities presented by expansion of marriage definition; and opportunities for
divorce/funeral events, and catering opportunities for backyard parties, grad parties, family
reunions
8. Provide similar "bar" deals that bars give with evidence of golf attendance
9. Repeat customers are easier/cheaper to retain than grabbing new customers; need to retain
these customers and encourage greater spending per customer
10. Need to reinforce that we are the people's/mainstream/moderate priced golf course
11. Work with communications to encourage larger lunch crowds and catering opportunities
12. Regular reminders to employees of incentive programs and extend those to customers and
vendors if possible
13. Attempt to leverage community events
14. Advertise Internet/cable/conferencing opportunities
Banquet
1. Pursue outside wedding chairs in the $40-$50 range/chair; anticipated that 10 outdoor
weddings will occur/year; 150-200 chairs (ceremonies at 20 minutes do not call for a tent);
update lounge/patio furnishings/tables
2. Universal support by staff that kitchen expansion would not provide a ROI
3. Net $1500/night at fish fry; look for opportunities for similar theme events
4. Could look at Sunday Brunches and Mothers Day events again but need firm reservations to
avoid food waste
5. Staff one server per 20 customers at banquets
6. Re-evaluate menu's/offerings
7. Food tasting is twice/year which is complimentary for booked weddings and $14.95 for others;
should reimburse that $14.95 with future booking
8. Consider all inclusive options including cakes, photography and DJ's; be aware of all periphery
service vendors within the marketplace
9. Complete the Banquet IT connections
10. Expand Capital outlay items to ensure the facility is always updated and fresh and other than
golf oriented decorating such that the non-golf customer knows they are as important as the
golf customer
11. Consider catering expansion when staff resources exist (eg. Competing venue opportunities)
12. Provide constant reinforcement to staff as to what drives banquet bookings which are(these
ideals should be part of our marketing/brochures to assure the customer that we understand
their needs):
a. Attentiveness and follow-through of venue staff ensuring that customer is not handed off
from one person to another through the process; reinforcing that customer is as important
after they have booked the event as they were during the booking process
b. Ensure that staff is taking care of customer needs so the customer can take comfort that
details are handled prior, during and after the event
c. Ensure clarity in pricing such that the customer does not receive surprises of extra charges
through the booking process and never after the booking process
d. Ensure that facility cleanliness and appearance are top of mind for all staff to include
clean/non-wrinkled table cloths, landscaping, paint and carpet and everything in between
Golf
1. Snow golf should be discontinued; the experiment was not profitable
2. Twilight golf is a very good item to continue and expand
3. Kids golf for free good to continue and grow
4. By 2014 Mississippi National in Red Wing and Parkview in Eagan will be closed. Courses in Lake
City and Lakeville are struggling; may present opportunities
Revisit: Check-in with management/EDA with regularly timed status updates of plan
implementation