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Home My WebLink About1998-11-18 PACKET 13.D.REQUEST OF CPTY COURlGIL ACTfO�I COUNCIL AGEfVDA P�iEETING IT # DATE 11 /18/98 a PREPAREd BY Public Works John Fredrickson ORIGINATING DEPARTMENT STAFF AUTHOR # # at �k * S * # * R # # * * # k R k •k 4 M * # +F k # k k * # k * ak * * R * * * * t * * * * * * * COUNCIL ACTION REQUEST Review and discuss ciubhouse expansion options and provide steff with feedback and direction. BUDGET IMPLICATION: $ BUDGETED AMOUNT ADVISORY COMNIISSION ACTION DATE ❑ PLANNING ❑ PUBLIC SAFETY ❑ PUBLIC WORKS ❑ PARKS AIJD REGREATION ❑ HUMAN SERVICES/RIGHTS ❑ ECOtJOMIC DEV. AUTHORITY ❑ SUPPORTING DOCUMENTS $ ACTUAL AMOUNT FUNDWG SOURCE REVIEWED ❑ ❑ ❑ ❑ ° a ❑ MEMO/LETTER: ❑ RESOLUTIOhI: ❑ ORDINANCE: ❑ EiVGINEERING RECOMMENDATION: ❑ LEGAL �?FGOMMENnATlON: y�' C�THER: Report - John Frec9rickson and �ruce Anderson ADMI NISTRATORS CO MMENTS : APPROVED ❑ ❑ ❑ ❑ ❑ Cit}r �,dministrator DENIED ❑ ❑ ❑ ❑ ° a 1( Qat� x> a e< o- ,e : w� a�:a r a m rr e x ce c a� w++r �+,� ,e c� n a a»«++<� s+ a w n n a cou�cr� Ac�rao� raK��: [� �w��a�r�� C=� r��i�� [� o�r��c�a River 0aks Municipal Golf Course •. . •. . EXPANSION PLANS Since 1995, the River Oaks Golf Course operation has dramaticaily improved its financial status and is in a position to consider expansion of the clubhouse. Staff is suggesting that Counci! give consideration to two options. Option 1 would involve the construction of a new food and beverage facility with seating for up to 100 people. Option 2 calis for the remodeling of the existing facifity and a 3,800 sq. ft. expansion, originally proposed in 1995. Bruce Anderson has prepared financial projections, for option 1 and are included in this report. Projections for option 2 were prepared in the fail of 1995 and have not been reviewed by staff to determine if they are stiil valid. o�� Staff is suggesting that the City Council give consideration to constructing a new food and beverage facility, 2,000 ta 3,000 sq. ft in size, located adjacent to the existing clubhouse. Staff is estimating construction costs for option 1 to be in the range of $400,000. The expanded facility as propased, woutd provide seating for 90 to 100 peopie and be s+mi(ar in size and architectura( characteristics as the existing ciubhouse. The facifity will be built on grade with limited or no baser�nent. The roofline of the new faciiity wiil be connecfed to the roofline of the existing clubhouse, with both facilities being served by a common walkway. The existing facility would be redesigned to accommodate golf operations and administration, with the new additian being designed to accommodate the food and beverage operation. A large deck, running the entire length of both buildings (on the driving range side) would be constructed to provide outside dining and socializing. The existing golf car staging area would be expanded to accommodate our fleet of 60 cars. The golf operations building, food and beverage buiiding and starter building vviil have matching maintenance free viny! or steel siding. A landscaping plan will be developed to complement the buildings and the natural surroundings. A scoreboard wiii in the southwest corner of the deck. The grill area and serving counter wiil be located along the northwest section of the facility. Bathrooms wil! also be inciuded in the pian. The backside of the facility (facing the driving range} wili be constructed of glass to take advantage of naturai light and provide an open airy feeling with an outstanding view of the range. An e�erior double door will be installed along the back wali to provide direct access from the facility to the outside deck. The food and beverage area wiil be equipped with a grili and deep fryer's to provide basic fast food items such as: burgers, brats, polish sausage, hot dogs, chicken strips, chicken wings, onion rings and french fries. Ham, turkey, roast beef, tuna and chicken sandwiches will also be soid. A Breakfast menu will also be provided. Fountain pop, fruitjuices, tap beer, can beer and a limited selectian of liquor wiil be sold. OPTiON 2 Review and reconsider expansion plans prepared in the fail of 1995, (drawings and floor plan attached) calling for the remodeling of the exis#ing facility and construction of a 3,800 square foot addition. The remodeled and expanded facility as proposed, would provide seating for approximately 168 in the banquet room and an additiona140 seats in the lounge area. The preliminary cost estimate for remodeling and new construction (exciuding parking lot expansion) in November of 1995 was $730,325. Option 2 provides the City the opportunity to derive additional revenue through rental of the banquet hall. The hall could be booked for weddings and other private functions frorn October 1 through May 1 without adversely impacting golf operations. The facility could also be rented on an as available basis during the golf season. �INANCIAL PROJECTiUNS Expenditure Proiections tfood and beveraqe onlv) Personal Services — $53,300 (Seasonal staff with benefits only, does not include Assistant Manager position) 1999 Season (July through October) 92 days x 44 hours per day x$8.00 =$32,384 31 days x 20 hours per day x$8.00 -- $ 4,960 $ 37,344 Commodities - $14,000 Operating suppiies are based an 6% of the totai gross saies. 5% to 7% is the norm in the industry. Commodities include paper goods, glassware, cooking suppiies etc. Contractual Services $75,250 Communications are increased to reflect two (2} additionai lines to accommodate the food and beverage operation. Utilities are based upon industry norm for operations. Food and beverage for resafe is based upon an average tood cost of 25%. Our food cost projections very from 16% on the low side to 32% on the high side. Liquor resale cast average is also 25%, again, based on the industry average. Tatal food and beverage expenditures in 1999 (not including debt service) $142,550 Revenue Projectior�s (food and bev. operation oniy) 1997 1998 1999 20G0 2001 2002 Food, Soda Snacks 63,700 65,000 121,000 174,000 181,040 188,300 tiquor 47,500 55,000 75,000 78,000 81,200 85,000 Totals 111,200 120,000 196,000 252,000 262,000 273,300 SUMMARY: Year 1999 projections are based upon the completion af the expansion and open for business on July 1, 1999. Staff anticipates revenues of $196,000 in 1999, with an increase of 4% in years 2000, 2001, and 2002. Since our inception, food and beverage revenues have grown fram 3-8% annually. In 1999, staff anticipates on average food and beverage sales per person to be $4.70 compared to $2.66 in 1997 and $2.85 in 1998, based on 42,000 rounds. __ 1999 Area Co�npetition (some what compararive) River Oaks Golf Course (current) 1. Food sales (micro-wave) 2. Beverage cart and pop Manitou Ridge Golf Course, White Bear Lake 1. Food sales (no griil, deli sandwiches): 2. Beverage cart and bar service: (full bar service) Inverwood Golf Course, Inver Grove Heights 1. Food sales (deli sandwiches): 2. Bevera;e cart and pop: (3.2 beer and pop) Prestwick Goif Course, Woodbury S2'7,400 594,000 $121,000 $97,000 $161,000 $258,000 $120,000 90,0 �Z1�9WV 1. Food sales (,small grili burgers and dogs): 5130,600 �2. Beverage cart and pop: $?0.00 (strong beer and wine) 5200,000 ►/ I c� Z� Y Q O a � � � o � � =a �o e m < J < � n . Jx � . , . V w m - I i '. �� i� ',. _""_� � � I' � � �� ' �'�--; � �.-� �� °'� �� r, . a , � �� , ij� m ��i � �o-� �s � � '�,�2,6" ` 1�' � � i 1, � � K �� P 6 o f � $ il y �� 1 y.� P 3 O f � Q _ _ Y.�Y: . _ . e$ s�« i� u�. i Q �—�--------� _====�:� �� ; � .o. �� as= � : � i� .- a i .� 8d') a W Q LLLLLLLL LL t9NMN N d0�00 � 'OOH Y1 f!! O NNpj � QWQW 606� �JJ'J'J r < < < 6 W W � 6 C 4 < O b V1 J ! r` �� a� � % ✓ �—_�_._ — _�� ,'.�i � —� �_ warmvwcmi , —/��___.____________________________� �-__�- mv me�� -� T� - 6 ,�a,.t� _ _ _ _ —_—r______________________________' N�u n - vG'IP4 i � ' 1�!� !ltf �'� i . � _______r ' ._�___________________________________ . `____ _________'________ I � ,e._ — r� _ __ _ _ .�_ _ __ _ — _ _ _ ________ _______�`�,____________ L' 'r1e_"vt T �� wr �\ cye c' c p••.a� _. �� w,� cu. ry. Ao� o \ � , ., E l� �i:� )tt3 -. CITY OF COTT�GE GROVE RIVER OAKS CLUBHOliSE EYP�NSION Commission iVo. 941Q0.01 CONSTRliCTION DOCTJ�IENT COST ESTIVLATE 18 November 199� • General Construcuon Includes expansion and interior remodeling; site work, sepric and well . Kicchen Equipment Assumes ail new equipment ❑ Subtotal ❑ 5% Contingency ❑ Totai Dednc� Altemares: l. � 3. 4. 5. 6. Delete boilers (no winter operadon of buildin�) Delete convection oven, range, hood, one boiler, one air handler Purchase approximately half new kitchen equipment, half used Delete retainina wall and new asphalt paving Delete fireplace Reduce seatine capaciry by 30, i.e. 124 in dining, 20 in bar; reduce foo�princ by 400 sq. ft �6?1,500 85.000 �696,500 34.825 $730,325 (30,000) (30,00�) (16,600) (9,000) ' (4,000) (30,000) r Notes: A. Preliminary desien assumed one exhaust hood in ki[chen; current layout requires [hree hoods and additional make-up air uni� B. State Heaich Depart�nent is requiring expanded septic system based on kitchen/dining layout