HomeMy WebLinkAbout2025-04-02 Packet1
COTTAGE GROVE CITY COUNCIL April 2, 2025
11099 HIGHWAY 61
COTTAGE GROVE, MINNESOTA 55016
RIVER OAKS GOLF COURSE & EVENT CENTER - 5:00 PM
1 Call to Order
2 Agenda Item
A River Oaks Golf Course, Event Center and Eagles Bar and Grill Business Update
Staff Recommendation: Receive a presentation on the River Oaks Golf Course, Event Center and Eagles Bar
and Grill Business Plan.
B Park Project and Financing Review
Staff Recommendation: Receive information on park project financing.
3 Recess
1
City Council Action Request
2.A.
Meeting Date 4/2/2025
Department Administration
Agenda Category Action Item
Title River Oaks Golf Course, Event Center and Eagles Bar and Grill
Business Update
Staff Recommendation Receive a presentation on the River Oaks Golf Course, Event
Center and Eagles Bar and Grill Business Plan.
Budget Implication N/A
Attachments 1. River Oaks Business Plan 2021-2025
0
2021 – 2025
Business Plan
1
Table of Contents
Executive Summary……………………………………………………………..…...2
Overview & Past Performance…………………………………….............3-5
Department Overview – Golf Shop………...…………………………...…6-7
Department Overview – Maintenance…………………………..…...….8-9
Department Overview – Eagles & Events………………….......…..10-11
Market Analysis………………………………………………………….......…12-14
Marketing & Sales Overview……………………………………....….....15-17
2021 – 2025 Projections………………………………………...………….……18
2
Executive Summary
River Oaks Golf Course, Event Center, and The Eagles Bar & Grill is a municipal golf course and entertainment facility
owned by the City of Cottage Grove and run under the leadership of the Parks & Recreation Department. The vision of
the facility is to provide a great customer experience at a rate of value to our guests. River Oaks strives to remain fiscally
responsible while providing many amenities to our customers. We not only offer a well-maintained course, a beautiful
event center, and a grill, we also offer programs that foster growth in the game of golf and events that draw golfers and
non-golfers alike to River Oaks. The following 2019 event information and statistics provide insight into what a typical
year looks like at River Oaks Golf Course, Event Center, and The Eagles Bar & Grill.
We learned a lot about our business operations in dealing with COVID-19 in 2020 and being responsive to all of the
required restrictions. With the adjustments we had to make in 2020, we saw event revenue negatively impacted with
losses of over $500,000 in estimated event revenue. We were able to control staffing costs by moving the golf shop into
the clubhouse which in turn showed an increase in food and beverage purchased by golfers. The clubhouse became a
one stop shop for everything a golfer would need for their round; golf service, merchandise, food and beverage. In 2020,
we served an average of 206 golfers per playable day which is an average of 52 more golfers than in 2019.
Our overall business goal in looking ahead from now until 2025 is to grow revenue faster than expenses while continuing
to maintain the quality of the course, facility, and the customer experience. We are a revenue generating business for
the city and realize increased revenue offers the greatest opportunity to reinvest back into the business to maintain
relevancy in the market. River Oaks is in the business of golf and hospitality with golfers and events being our main
source of revenue. Primary growth is most likely to come from increasing rounds of golf through targeting untapped
markets and incremental golfer spending. We will also be pursuing social groups and corporate events along with
continuing to support our current event partners, targeting new partners for events and catering, and hosting River Oaks
sponsored events. We are looking to enhance our outdoor dining experience to continue to draw guests to The Eagles
Bar & Grill. We will work to reduce expenses by controlling labor and food costs and maintaining a plan for smart
spending while consistently improving the facility and grounds.
The 2021-2025 River Oaks business plan sets benchmarks to continually analyze performance against expectations.
However, adaptability in the market and customer needs are a key part to the business plan and we must never let the
plan overtake the focus and flexibility needed to be a better business for the community.
2019 Events & Statistics
River Oaks Hosted Key Statistics
36 Golf Tournaments & Outings 33,382 Rounds Played
9 Weddings 22,727 Cart Rentals
36 River Oaks Sponsored Events 7,004 Range Admissions
136 Other Outside Events 84 Memberships
201 Adults For Lessons 368 River Oaks League Members
150 Juniors For Lessons 216 Playable Golf Days
6 River Oaks Golf Leagues 217 Total Events Hosted
3 External Golf Leagues $15,458 Overall Profit
2020 Key Statistics
40,090 Rounds Played
27,219 Cart Rentals
10,868 Range Admissions
74 Memberships
423 River Oaks League Members
166 Playable Golf Days
$34.31 Average Spend Per Golfer
3
Company Overview & Past Performance
COMPANY SUMMARY: River Oaks boasts an 18-hole scenic golf course with a par of 71. There are 52 sand bunkers
and three ponds located on the golf course. River Oaks Golf Course is a Golf Digest “4-1/2 Star Best Places to Play”. Our
clubhouse features a beautifully remodeled event center where we can host groups up to 225 people and The Eagles Bar
& Grill including a patio overlooking the course with views of the Mississippi River valley. We are quickly becoming a go-
to facility for social groups with the addition of bocce ball courts and an outdoor bar.
NEW MISSION STATEMENT : At River Oaks, we dedicate ourselves to create and maintain a venue where our guests
can play hard, eat big, and create memories. Both on the course and off, our commitment to continuous innovation and
improvement are centered around creating an exceptional guest experience for Cottage Grove residents and visitors in a
welcoming and professional environment.
COMPANY HISTORY: Opened in July 1991, River Oaks is a municipal golf course that is owned by the City of Cottage
Grove. The golf course is open to the public and is associated with various organizations including the Minnesota Golf
Association (MGA), Public Country Club (PCC), and Golf Course Superintendents Association of America (GCSAA). In
2001, the golf course added the event center and grill which expanded our product offering to include weddings, outside
events, and restaurant service. In 2019, we added an outdoor bar area and bocce ball courts with the goal of expanding
our brand to become more of an outdoor recreation and entertainment destination. In 2020 we expanded our banquet
kitchen with a goal of increasing our catering services.
WHO WE ARE: We offer many services at River Oaks Golf Course and Event
Center. For almost thirty years, River Oaks has focused on serving the
communities golf, event center, grill, and outdoor recreation needs. Although
all elements of the business are important to a successful and sustainable
operation, it is important to note that golf is considered the keystone due to
its direct and indirect revenue potential that supports the entire business.
Over the past three years, our main focus has been on creating an excellent
customer experience. Maintaining this is the responsibility of all departments
and employees at the course. For customers who trust us by spending their
money for golf, events, or in the grill, we want to make sure each person’s
needs are taken care of during every aspect of their time with us.
2020: Throughout 2020 we had to adjust to many changing COVID-19
restrictions placed on recreation/entertainment and food establishments.
We opened for golf on April 18, about two weeks later than we would in a
normal year; but golfers came out to play more than ever. Golf services has
been carrying the financial load for River Oaks through 2020 with a great
turnout on both the course and practice range. With capacity limits placed
on events, most scheduled events were either cancelled or moved to 2021.
The grill has also been under capacity limits so in order to control staffing
and food costs, on June 1 we moved the golf shop into the grill area and
focused on a limited food menu focused toward golfers.
Revenue % Of Sales
Golf $1,082,834 56.0%
Events $456,446 23.6%
Grill - Golfers $218,645 11.3%
Restaurant Hours $104,000 5.4%
Bev Cart $70,622 3.7%
Event Rentals $35,313 1.8%
Total Revenue $1,932,547
4
OPERATIONAL STRUCTURE: River
Oaks Golf Course and Event Center
is managed and maintained by five
full time staff which include one
General Manager, one
Superintendent, one Assistant
Superintendent, one Executive Chef,
and one Events and Grill Manager
along with one seasonal Golf
Professional. We also employ over
80 seasonal, part time staff
members that support all
departments within our facility.
Although our payroll has increased
approximately 9.5% over the past
four years, our payroll as a percent
of revenue has decreased roughly
13% over the same time period. Our
goal by 2025 is to have overall
payroll at 45% of revenue or less.
2016 2017 2018 2019 2020*
Payroll
Golf $248,636 $171,035 $169,982 $187,136 $321,292
Maintenance $305,135 $323,561 $325,905 $339,697 $339,546
Clubhouse -
Eagles & Events $398,990 $364,380 $468,765 $517,030 $305,468
Gratuity $47,541 $53,601 $78,803 $92,229 $39,350
Overall Payroll $952,761 $858,976 $964,652 $1,043,863 $966,306
Revenue
Golf $913,204 $904,791 $953,407 $1,082,834 $1,369,783
Maintenance $0 $0 $0 $1,879 $0
Clubhouse -
Eagles & Events $558,471 $554,275 $777,317 $885,027 $481,263
Total Revenue $1,471,675 $1,459,066 $1,730,724 $1,969,740 $1,851,046
Payroll as a Percent of Revenue
Golf 60.6% 54.7% 52.0% 48.6% 48.2%
Clubhouse -
Eagles & Events 68.8% 62.1% 55.8% 53.6% 60.2%
Overall 63.6% 57.3% 53.6% 50.7% 51.2%
*2020 as of 11/30/2020
5
FINANCIAL PERFORMANCE : River Oaks has been seeing steady growth in our revenue since 2016. Our revenue has
grown almost 34% from 2016 to 2019 while our expenses have grown by just over 16% during that same time period. In
2019 River Oaks showed a profit of $15,458.
2016 2017 2018 2019 2020*
Golf Services
Revenue $913,204 $904,791 $953,407 $1,084,713 $1,369,783
Expense
- Personal Services - Golf Shop $248,638 $171,035 $169,982 $187,136 $321,292
- Personal Services -
Maintenance $305,135 $323,561 $325,905 $339,697 $339,546
- Commodities - Golf Shop $7,318 $5,508 $7,701 $6,318 $13,877
- Commodities - Maintenance $108,148 $106,910 $109,978 $111,833 $105,153
- Contractual - Golf Shop $123,571 $100,139 $113,142 $139,315 $172,508
- Contractual - Maintenance $45,149 $43,580 $38,109 $38,171 $41,652
- Capital - Golf Shop $0 $10,135 $0 $5,458 $338
- Capital - Maintenance $44,901 $67,198 $110,581 $82,097 $89,192
- Financing - Golf Shop $38,200 $0 $0 $42,061 $0
- Financing - Maintenance $0 $0 $0 $0 $0
Total Expense $921,060 $828,066 $875,398 $952,086 $1,083,558
Clubhouse - The Eagles & Events
Revenue $558,471 $554,275 $777,317 $885,027 $481,263
Expense
- Personal Services $398,990 $364,380 $468,765 $517,030 $305,468
- Commodities $33,774 $29,153 $32,651 $41,527 $18,910
- Contractual $297,672 $283,524 $341,641 $405,313 $221,347
- Capital $4,110 $43,195 $0 $6,422 $62,057
- Financing $0 $0 $0 $0
Total Expense $734,546 $720,252 $843,057 $970,292 $607,781
Overall
Revenue $1,471,675 $1,459,066 $1,730,724 $1,969,740 $1,851,046
Inv Interest Revenue $0 $0 $860 $428 $51
Expense $1,655,606 $1,548,318 $1,718,455 $1,922,378 $1,691,340
Credit Card Fees $24,256 $23,518 $28,997 $32,332 $42,227
Profit/Loss -$208,187 -$112,770 -$15,868 $15,458 $117,529
*2020 as of 11/30/2020
6
Department Overview – Golf Services
PAST PERFORMANCE:
PRODUCT AND SERVICE OFFERING: River Oaks Golf Course & Event Center offers a full array of golf related products
and services to our guests.
TRENDS IN GOLF: Golf has seen a rise in the use of technology for the sport including GPS, golf cart ads, and apps
targeted at scorekeeping, swing analysis, and skill improvement. We also see technology increases in the form of
booking tee times through a website or mobile bookings and experiences such as Top Golf which represents a
technologically advanced social game of golf. Aside from technology, on course experiences and combo events, such as
dinner and golf or lessons and a drink, are gaining popularity. Other trends that we see with golf include nomadic
memberships, the return of short courses, and instituting monthly membership programs. There is also a trend to put
more emphasis on including non-golfers in events such as adding bags tournaments along with shorter golf events such
as six or nine-hole events.
GOLF SERVICES G OALS : Below are the five-year goals for golf services.
❖ Grow rounds to 40,000 rounds per year
❖ Grow and maintain 60 golf tournaments per year
❖ Introduce the game of golf to as many age and skill levels as possible through increasing quantity of lessons,
camps, and clinics while increasing participation at each level of instruction
❖ Create different opportunities for golfers using underutilized space on the existing property
2020 LEARNINGS : In navigating through COVID restrictions, we moved the golf shop into the clubhouse to control
staffing expenses during the golf season. We learned that synchronizing all sales opportunities into one location
resulted in golfers purchasing more product before and after their rounds. At the end of the season, we sent a survey
and through the responses and in speaking to our golfers, there is a preference to move golf services back into the golf
shop so we are moving forward with renovations to the golf shop in 2021.
2016 2017 2018 2019 2020*
Golf Shop
Rounds Played 28,479 29,561 30,193 33,382 40,090
Greens Fee Revenue $583,429 $568,167 $628,606 $678,434 $835,118
Average Greens Fee Per Round $20.49 $19.22 $20.82 $20.32 $20.83
Overall Dollars Per Player $32.06 $30.60 $31.58 $32.44 $34.31
Range Revenue $46,670 $47,690 $50,963 $63,874 $94,688
Golf Days 251 222 191 216 166
Rain Days 52 64 49 47 16
*2020 as of 11/30/2020
Golf Course Driving Range Golf Tournaments & Outings
Memberships Leagues $5 Junior Golf
Group Lessons, Camps, & Clinics Individualized Instruction State Of The Art Golf Carts
Golf Related and Branded Merchandise Regripping Swing King
7
COMPETITIVE OVERVIEW : Below is an overview of rates of area golf courses surrounding River Oaks Golf Course &
Event Center. Rates are studied annually to assure competitiveness with area golf courses of similar status.
Course Name Google
Rating
Weekday-
18
Weekday-
9 Weekend Twilight Cart Twilight
cart Senior Senior
Cart
Tax
incl
Prestwick 4.3 $70.00 $39.00 $70.00 $39.00 $21.00 $16.00 N
Stoneridge 4.3 $69.00 $89.00 $59.00 N
Keller 4.5 $47.00 $25.00 $45.00 $27.00 $16.00 $16.00 $34.00 $12.50 N
Eagle Valley 4.3 $40.00 $26.00 $45.00 $32.00 $16.00 $12.00 $28.00 $12.00 N
Loggers Trail 4.2 $39.00 $24.00 $45.00 $23.00 $16.00 $14.00 $30.00 $16.00 N
Highland National 4.4 $36.00 $23.00 $39.00 $23.00 $17.00 $12.00 $24.00 $11.00 N
Inverwood 4.1 $36.00 $20.00 $43.00 $28.00 $20.00 $15.50 $26.00 $15.00 N
Manitou Ridge 4 $36.00 $22.00 $36.00 $21.00 $16.50 $16.50 $25.00 $13.00 N
Valleywood 3.8 $36.00 $24.00 $44.00 $30.00 $12.00 $20.00 $12.00 N
Summit 4.6 $35.00 $23.00 $38.00 $31.00 $16.00 $28.00 N
Hastings GC 4.5 $35.00 $20.00 $40.00 $25.00 $17.00 $14.00 $25.00 $10.00 N
River Oaks 4.5 $35.00 $23.00 $37.00 $22.00 $17.00 $13.00 $24.00 $13.00 N
Oak Marsh 4.2 $35.00 $20.00 $40.00 $18.67 $17.74 $11.67 $24.41 $11.76 N
Emerald Greens 4.1 $35.00 $23.00 $37.00 $14.00 $17.00 $13.00 $22.00 $12.00 N
Les Bolstad 4 $34.00 $18.67 $22.00 $17.00 $24.00 $10.00 N
Phalen 4.2 $33.00 $20.00 $36.00 $22.00 $17.00 $12.00 $24.00 $16.00 N
Como 4.2 $33.00 $20.00 $36.00 $22.00 $17.00 $12.00 $24.00 $16.00 N
Oak Glen 4.2 $32.00 $19.00 $38.00 $25.00 $16.00 $16.00 $36.00 Inc.
Goodrich 4.2 $32.00 $21.00 $30.00 $21.00 $16.00 $16.00 $22.00 $12.50 N
Southern Hills 4.1 $32.00 $21.00 $41.00 $27.00 $23.00 $15.00 $24.00 $12.00 N
Bellwood Oaks 4.7 $30.00 $18.00 $34.00 $23.00 $18.00 $11.00 $23.00 $11.00 N
Hidden Greens 4.6 $30.00 $17.00 $34.00 $36.00 $18.00 Inc. $20.00 $12.00 N
Stillwater Oaks 4.1 $29.00 $22.00 $34.00 $20.00 $12.00 $15.00 $19.00 $12.00 N
Cannon Falls CC 4.4 $28.00 $20.00 $34.00 $19.00 $18.00 $19.00 N
Clifton Highlands 4.6 $25.00 $17.00 $32.00 $23.00 $20.00 $9.00 $23.00 $10.00 N
Clifton Hollow 4.5 $25.00 $19.00 $31.00 $22.00 $18.00 $9.00 $22.00 $10.00 N
Gopher Hills 4.5 $22.00 $14.00 $27.00 $29.00 $20.00 Inc. $17.00 $8.00 N
PROJECTED UPGRADES TO GOLF SERVICES : Over the course of the next five years, below are the upgrades we
would like to incorporate into golf services.
❖ 2021 – Pro Shop upgrade including movable counter, carpet, seating, and merchandising fixtures
❖ 2022 – Practice range upgrade to add another tee box
❖ 2023 – Create chipping and pitching area to enhance our customer experience
❖ 2024 – Three-hole short course addition to enhance our customer experience
❖ 2025 – Golf Academy building development to include putting green, fitting area, technology for swing analysis
during all seasons.
8
Department Overview – Maintenance
SERVICES PROVIDED : The River Oaks Golf Course & Event Center maintenance department supports all aspects of the
facility by assuring aesthetics and playability of the grounds and building maintenance.
Maintains Course Grounds Equipment Maintenance
Irrigation Repair Golf Shop Repair & Maintenance
Clubhouse Repair & Maintenance Wedding Area Maintenance
Construction Of Special Projects Course Projects
Landscaping Course Planning
TRENDS IN G OLF MAINTENANCE : The golf industry as a whole is focused on reducing or improving the
environmental impact of grounds maintenance and boosting technology opportunities for course maintenance. These
trends include things such as GPS sprayers which results in a reduction of chemical applications, a reduction in water
usage, new technology including nomadic mowers, cultivating no mow areas to include native landscaping plants and
cultivating pollinator friendly areas. We have also looked to trends that can help us better allocate our staffing and
equipment resources such as bunker and tree quantity reduction.
GOLF MAINTENANCE GOALS : Below are the five-year goals for the maintenance department.
❖ Find efficiency in managing labor resources
❖ Design and replace irrigation system
❖ Reduce bunker count
❖ Redesign of holes 10 and 18 for both playability and maintenance improvement
2020 LEARNINGS : 2020 has brought many changes around the course but our maintenance crew has done a fantastic
job of adjusting to the changes throughout the season. We heard nothing but compliments about the condition of the
course even with the higher cart traffic because of the one person per cart restrictions. We took ancillary items off the
course along with limiting garbage cans which saved time for our crew when mowing. We had employees on the course
every week sanding and seeding which helped to maintain good golfing conditions even with the higher use. That
maintenance habit also reduced the hours the equipment was used which lowers fuel and maintenance costs.
EQUIPMENT REPLACEMENT PROGRAM: Replacing old equipment saves labor costs, reduces down time, and helps
control fuel and fertilizer costs. Below is a chart that shows some of our larger maintenance costs over the past four
years.
2016 2017 2018 2019 2020*
Maintenance
Fuel $17,929 $21,189 $26,511 $22,934 $14,809
Fertilizer $32,566 $32,170 $28,993 $29,016 $36,619
Equipment Repair $34,250 $27,088 $21,183 $19,235 $20,492
*2020 as of 11/30/2020
In 2019, River Oaks obtained a new fleet of golf carts that reduced our fuel costs. A new GPS controlled chemical
sprayer was purchased in 2018 which reduced our spending on chemicals. With a consistent equipment replacement
schedule, we have seen a reduction in equipment repair costs as well.
9
EQUIPMENT REPLACEMENT SCHEDULE: The projected five-year equipment replacement needs of the facility are as
follows:
2021 Equipment Golf ID Trade-In
Equipment Age Hours Cost Notes
Irrigation System/Land
Management Architect
Design $20,000
Tractor 402 John Deere 4600 21 $62,000
Zero-Turn
45-8505-
03 Exmark Lazer Z XP 20 ~2,600 $15,000
Greens Roller New Purchase $15,000
$112,000
2022 Equipment Golf ID Trade-In
Equipment Age Hours Cost Notes
**Irrigation Replacement $100,000
Aerator New Purchase $35,000
Fairway Mower 209 Toro 5410 10 ~3,000 $60,000
Truck
55-5009-
06 Dodge Ram 1500 16 ~125,000m $35,000
Work with Adam Moshier on
options
$230,000
2023 Equipment Golf ID Trade-In
Equipment Age Hours Cost Note
**Irrigation Replacement $100,000
Irrigation Maintenance Plan $10,000
All-Weather Utility Cart 114 Diahatsu 34 ~23,500m $45,000
Bunker Rake 304, 305 John Deere 1200H 16 ~3,000 $20,000 Trade in both John Deere 1200H
Utility Cart 124 John Deere E-Gator 17 ~2,600 $16,000
Utility Cart 125 John Deere E-Gator 17 ~2,600 $16,000
$207,000
2024 Equipment Golf ID Trade-In
Equipment Age Hours Cost Note
**Irrigation Replacement $100,000
Rough Mower 250 Toro 4100-D 8 $60,000
Utility Cart 121 John Deere 2030 23 $35,000
$195,000
2025 Equipment Golf ID Trade-In
Equipment Age Hours Cost Note
**Irrigation Replacement $100,000
Greens Mower 228 John Deere 2500B 8 ~3,000 $50,000
Greens Mower 229 John Deere 2500B 8 ~3,000 $50,000
Tee/Approach Mower 208 Toro 3100-D 22 ~5,300 $50,000
$250,000
10
Department Overview – Clubhouse – The Eagles & Events
PAST PERFORMANCE :
PRODUCT AND SERVICE OFFERING: Our clubhouse and surrounding area offers a full array of services to our guests.
Weddings Various External Events River Oaks Hosted Events
Grill/Patio Beverage Cart Catering
Bocce Outdoor Bar Fundraisers
TRENDS: Trend analysis is extremely important for our Event Center to remain relevant to our customer base. A trend
that never changes is extreme personalization for events and creating a unique experience for each occasion. Guests
want services that are tailored to their preferences and see value in that personalization. Trends regarding the
restaurant industry include exploiting technology, eco-friendly and social responsibility within the restaurant, scratch
made and creative food, offering more plant-based proteins, and creating a food and beverage offering that is unique.
CLUBHOUSE G OALS : Below are the five-year goals for the clubhouse.
❖ Achieve $1.0 million in sales by 2025
❖ Increase our weddings to an average of 30 per year by 2025
❖ Grow our number of overall events by 5% year over year
❖ Reduce labor expense percentage to be 45% or less
❖ Reduce food cost percentage to be approximately 33% or less
❖ Continue to increase technological aspects within appropriate areas of the clubhouse
2016 2017 2018 2019 2020*
Rentals
Rentals $15,511 $23,708 $30,026 $35,313 $16,589
Food - Cost of Goods Sold**
Cost of Goods $132,029 $106,061 $132,558 $159,545 $73,787
Revenue $286,698 $286,737 $365,314 $436,956 $183,777
Total Expense 46.1% 37.0% 36.3% 36.5% 40.1%
Alcohol - Cost of Goods Sold
Cost of Goods $41,200 $49,716 $62,675 $67,107 $41,506
Revenue $182,386 $177,914 $263,525 $279,168 $198,543
Total Expense 22.6% 27.9% 23.8% 24.0% 20.9%
NA Beverages - Cost of Goods Sold
Cost of Goods $11,519 $12,009 $14,348 $17,006 $15,280
Revenue $23,503 $13,805 $33,139 $39,652 $41,633
Total Expense 49.0% 87.0% 43.3% 42.9% 36.7%
Overall Clubhouse - Cost of Goods Sold
Cost of Goods $184,748 $167,786 $209,581 $243,658 $130,572
Revenue $492,587 $478,456 $661,978 $755,776 $423,953
Total Expense 37.5% 35.1% 31.7% 32.2% 30.8%
*2020 as of 11/30/2020
**At the beginning of the 2020 golf season, meat prices were very high and remaining inventory has not been taken into account
11
2020 LEARNINGS : We had many restrictions on the food and beverage side of the business in 2020 due to the
pandemic. We opened for golf on April 18 but were not able to serve food other than to go orders and we were not
able to sell alcoholic beverages at the time. On June 1, we were able to start selling more food and start selling alcohol
and moved the golf shop into the clubhouse with a limited menu and no regular restaurant hours (Friday and Saturday
from 3-9pm) in order to control staffing expenses and social distance employees. Outdoor patio seating was popular in
2020 and will continue to be a focus for us as we move in to 2021 and work to recapture general public business when
the weather permits.
The event center has been largely empty due to the capacity, food and beverage, and party restrictions that were placed
on social gatherings by the state. Most events were either cancelled or moved into 2021 in hopes that restrictions
would ease by that time. We estimate our lost event revenue in 2020 to be over $500,000.
2020 showed an increase in people looking to host events outside. In the time we were shut down to guests, we took
the opportunity to update our outdoor wedding area and the bocce ball courts. We were also able to expand our
banquet kitchen and add additional storage to allow for better social distancing between workers. This expansion allows
us to expand revenue-generating services; in particular catering services and multiple party events.
COMPETITIVE OVERVIEW : Below is an overview including available rates of wedding venues in the surrounding area.
The data reveals that, we offer competitive rates compared to area wedding venues with similar status.
PROJECTED UPGRADES TO THE CLUBHOUSE : Over the course of the next five years, upgrades to the facility include:
❖ 2021 – Kitchen equipment updates and upgrade to the outdoor bar area
❖ 2021 – Sun blocking shades over the patio area
❖ 2022 – Patio update including expansion for additional seating
❖ 2023 – New carpet in the clubhouse and new upright oven
❖ 2024 – New divider wall in the Event Center
❖ 2025 – Clubhouse interior design update and kitchen equipment
Venue Name
Wedding
Rental
Cost
Ceremony Fee
Required
Security or
Setup/
Cleanup
Cost
Capacity
Able To
Host
Ceremony
In House
Catering
Food &
Beverage
Minimum
Average
Buffet
Cost
Hope Glen Farm $9,500 Included 300 Yes No $30
Historic John P Furber Farm $8,995 Included $1,500 500 Yes No $5,000 $30
Cedarhurst Mansion $5,000 200 Yes Yes
Hastings Golf Club $2,500 $2.50-$4/chair Yes No
Oak Marsh Golf
Course $2,000 $600 $250 300 Yes Yes $5,000 $26
StoneRidge Golf Club $1,950 $750 300 Yes Yes $5,000 $31
River Oaks Golf Course $1,750 $750 225 Yes Yes $4,000 $21
Prestwick Golf Club $1,750 250 Yes No
Oak Glen Golf Club $999 $399-$1,599 400 Yes Yes $6,000 $26
VFW $800 $150 200 No
Eagle Valley Golf Club $750 $350 140 No
**All rates are based on a Saturday event from May-October
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Market Analysis
INDUSTRY STATISTICS:
GOLF: According to the National Golf Foundation, approximately 24.3 million people played golf on a course in 2019
which includes about 2.5 million who played golf for the first time. At courses across the US, the biggest age segment,
6.1 million of these participants, are between the ages of 18-34 years old. Juniors account for 2.5 million players of
which 36% of the juniors are girls and more than one quarter are minority juniors. There were roughly 5.6 million
female on-course golfers of all ages in 2019. There were approximately 441 million rounds played in 2019 with golfers
playing an average of 18.2 rounds per year. Senior golfers (65+) played an average of 36 rounds in 2019 while golfers
aged 18-34 played an average of 12 rounds.
EVENTS : In 2019, 69% of event planners chose a venue based on word of mouth recommendations while 58% overall
used search engines to find a venue. High prices at venues annoyed 47% of event planners while 44% are most irritated
by poor WIFI. Available event technology is more important than ever with about 53% of planners requiring some
technology. Nationwide, conferences and trade shows are the most common meeting type with these representing 23%
of the event market. 41% of these event organizers are planning dinner and awards ceremonies. As far as weddings,
88% of planning is done online. 21% of couples hold their reception at a banquet hall, followed by 18% at a barn/farm
venue, and 12% at a historical building. (Sources: WeddingWire, Concierge, and Event Manager)
RESTAURANT : 13% of consumers consider themselves brand loyal to restaurants. Food quality over everything else is
what drives 72% of diners’ decision when choosing a restaurant. 90% of restaurant guests research online before
visiting a restaurant with 33% reading other guest’s reviews before selecting where to eat. Technology is extremely
important in the restaurant industry with 68% of customers agreeing that it improves the restaurant experience. Digital
menu boards, handheld POS systems, and digital ordering are included in these trends. 53% of millennials look for new
experiences when choosing a place to eat. 41% of restauranteurs say high operating costs are the biggest challenge in
this business. (Sources: Net Waiter, Upserve, Small Business Genius)
INDUSTRY TYPE: River Oaks is in the business of golf and hospitality with golfers and events being our main source of
revenue.
The Minnesota Golf Association website shows that there are approximately 160 golf courses of all types around the
Twin Cities. Golf courses tend to draw from a population of golfers that are willing to drive to participate in the sport.
With over 33,000 rounds at River Oaks in 2019, golfers have come from all over the Twin Cities to play at golf.
According to eventective.com, there are more than 500 event venues of all kinds located around the Twin Cities. These
range from extremely high priced to budget friendly venues. River Oaks falls within the reasonable priced category
which appeals to a mass category of venue shoppers. However, our facility and service quality make hosted events at
River Oaks an excellent value.
There are over a thousand metro dining options for guests. Because our location is remote, The Eagles Bar & Grill is a
destination restaurant. We see it as a destination restaurant because of the patio seating and ambiance of being at the
golf course with a spectacular view and our outdoor amenities. Our market focus is on golfers and residents of the city
of Cottage Grove and surrounding neighborhoods.
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MARKET SEGMENTATION: River Oaks has a broad range of target markets based on the three main functions of the
facility. Overall, golf is the main source of revenue for the business with the lowest cost of doing business. Events with
controlled expenses is our second most successful source of revenue. The grill has the highest variable costs associated
with it thus making it the most challenging revenue source. Because we have a great facility and improving equipment,
we continue to strive to improve our grill sales performance to non-golfer. Below is a breakdown by department of our
target markets.
Golf
•Full Price Golfers
•Casual/Recreational Golfers
•Higher spend
•8-12 rounds per year
•Golf Tournaments
•Golf Outings
•PCC Members
Events
•Weddings/Anniversaries
•Golf Tournaments
•School Events
•Corporate Events
•River Oaks Events
•Golfers
•Regulars
•City of CG Residents
•Senior Population
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STRENGTHS : Our main strengths are built on the customer experience and the quality of our golf course. We have
long-term, experienced staff who know the customers by name and take pride in working at River Oaks. We also have
built a reputation of dependability through our hosted events and other options that keep people coming back to visit.
WEAKNESSES : River Oaks has a largely senior, male customer base. A large group of our other golfers only golf here
once or twice per year which could be helped by regular phone contact and direct marketing. We have not yet been
able to tap into much of a millennial and junior base of customers. Also, a majority of our staff is seasonal and although
some have been here long term, we do have high turnover rates in the grill.
OPPORTUNITIES : There are untapped golf markets for us in the younger generations, women, juniors, and families.
We have a great $5 junior golf program that starts everyday two hours before dark where the junior and adult can golf
all the holes they can get in for $5. Adding a junior club team to our facility will also help to increase attracting junior
golfers to the course. The addition of a short course and more lesson opportunities could help us tap into these
markets. Targeting social groups and some of the local corporations for hosting off site events are also an opportunity
that we need to approach. Increasing our catering business is a possibility because of the kitchen expansion. The
kitchen expansion will also help us realize a savings in food costs with being able to easily prepare scratch-made food
instead of having to purchase items premade. People are also now looking to host outdoor events and smaller events
which we believe suits our facility well. The recent purchase of outdoor tents, updating of the outdoor space, and
addition of four bocce ball courts with outdoor bar will help us accommodate these types of events as well.
THREATS : Competition is always a threat and comes from other golf courses, event centers, and restaurants in the
area. Our irrigation system consumes many maintenance labor hours and is about at the end of its life cycle. Operating
the grill for regular hours beyond the golf season remains a challenge as we attempt to meet customer, community and
performance indicator needs. We continue to study this area to identify methods for improvement. Specific to golf
services, although we can’t control disposable income or the amount of free time of our guests, we can avoid
discounting fees and programs by providing experience value to our guests. The market has shown that once a course
gets involved in the discount game, it is tough to maintain customers that pay regular rates. StrengthsCustomer experience
Quality of the course
Playability for the
average golfer
Experience of staff
Recreation options
beyond golf
Planned events hosted by
River Oaks
Lent fish fry
Outdoor dining
dxperience
Practice range WeaknessesDependent on large
senior, male customer
base
Dependability of
seasonal/part-time staff
Engaging once or twice
per year golfers
Regular phone contact
with customers
Lack of a short game
practice area OpportunitiesAddition of a short course
Lessons
Younger generation
Women
Juniors & families -$5
junior golf
Junior club team
Social groups
Corporate events
Catering
Scratch made food
Outdoor events
Smaller events
Bocce ball
Patio seating with shades
Tents ThreatsIrrigation system
condition
Golf courses around the
Twin Cities
Other event center
facilities
Costs associated with
hosting regular
restaurant hours
Discounting programs in
the market
Potential lack of
disposable income
Limited available free
time for guests
Seasonality of business
opportunity
SWOT ANALYSIS:
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Marketing & Sales Overview
KEY MESSAGES : Our facility tagline is “Play hard, eat big, and create memories”. Our focus is to create a great
customer experience from the time a customer walks in the door to the time they leave our facility. That is true on the
course, at an event, or in The Eagles Bar & Grill.
MARKETING ACTIVITIES : River Oaks has been working on rebranding for the past couple years. A key focal point of
that effort includes providing a clear and concise message about who we are and what a customer can expect when
coming to River Oaks. Below is a chart of ongoing marketing activities. Specifics for each category are provided in the
second chart.
Marketing
Plan
Social
Media
Word of
Mouth/
Referrals
Search Engine
Optimization
Website
Facility
Technology
Pay Per
Click
Email
Campaigns
Cold
Calling
Cottage
Grove
Reports
CG Area
Chamber of
Commerce
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•Producing videos regularly
•Creating branded, original content regularly
•Paid advertisements
Social Media
•Starts by the guest having a great customer experience
•We need to start asking more for reviews and referrals
Word of
Mouth/Referrals
•Skol Marketing does an annual review for us to maintain our SEO
Search Engine
Optimization
•Maintaining a consistent message and branding
•Updating as things get changed, moved, added, or deleted
•Regularly mainting event calendar and online store for purchasing options
Website
•Digital sign on Highway 61 with varying messages based on what is happening at the facility
•State of the art GPS and bluetooth enabled golf carts with on screen advertising
•Handheld POS system
•Social indoor digital advertising boards in the bathrooms
Facility
Technology
•Skol Marketing manages our PPC
•We have a focus on golf during the golf season
•We have a focus on weddings all year long
Pay Per Click
•Working on getting all of guests in silos and segments to be able to target
specific groups -targeting, segmentation, and automation of emails
•Can quickly create email campaigns with our partnership with TeeSnap
Email Campaigns
•Reaching out to personal contacts to develop them into leadsCold Calling
•Consistently providing information to be included each month
•Creating a reminder to all city residents that we are an ammenity for them
with many different offerings
Cottage Grove
Reports
•Developing a partnership to become the go to facility to host events
•Networking ability with the business of Cottage Grove and surrounding
areas
CG Area Chamber
of Commerce
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SALES STRATEGY : We strive to build a brand that is based on customer experience. We want to create a customer
experience that is open to all. Every guest interaction we have is working to build that brand. We are a golf course first
and foremost but with the addition of other areas of entertainment at our facility, we are able to target families and a
younger generation with a fun, less traditional atmosphere where non-golfers can come for an enjoyable experience.
Building the River Oaks brand includes getting our logo on items en masse and
into the hands of our customers. The logo to the right is what we have been
promoting through different branded items that are for purchase in our golf
shop. You will see the same logo used throughout our marketing and around
the course and facility including on carts, flags, entry doors, uniforms, etc.
Branding our facility requires training of our staff to be able to sell the brand,
the facility, and the experience to our guests. For every potential sale there
needs to be a staff member who is qualified to sell every aspect of the
experience to the guest. We hold ongoing training for our staff members on
selling and improving the customer experience.
When we are looking at sales, there are three main steps to gaining a customer. Those include attracting the right
guests, engaging them where they are, and converting them to become a customer.
ATTRACT : River Oaks utilizes all of the tools listed in our marketing plan to attract customers
ENGAGE : We engage customers by building relationships with them through presenting our brand, asking questions and
actively listening. Part of this step is adding value to an experience without necessarily expecting anything in return.
CONVERT: In this step, we overcome objections and ask for the sale. Once a guest becomes a customer and sees value in
the experience and services provided, that is when we seek reviews and referrals. These conversions to be a part of our
core customer family is what keeps the business solvent.
Attract
Engage
Convert
Customer
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2021 – 2025 Projections
PROJECTIONS : Coming off a year like 2020 makes it difficult to make projections. Utilizing 2019 financials accompanied
by the goals of this business plan project our position from 2021 – 2025.
CONCLUSION : River Oaks strives to remain fiscally responsible while providing many amenities to our
customers. Our goal is to grow revenue faster than expenses while continuing to maintain the quality of the
course, facility, and the customer experience.
1
City Council Action Request
2.B.
Meeting Date 4/2/2025
Department Administration
Agenda Category Action Item
Title Park Project and Financing Review
Staff Recommendation Receive information on park project financing.
Budget Implication N/A
Attachments None