Monday, July 29, 2019

Summary: Oro Valley Town Council Special Session – July 24, 2019 – Part 1.

TOPIC: Discussion and Possible Action regarding Town of Oro Valley Golf Operations

This meeting is part of a “Golf Options” series, including a Town Council Study Session in January 2019, a Listening Session in February 2019, and approximately 6 Executive Sessions. (The Executive Sessions focused on contractual obligations between Troon, HSL, and the Town of Oro Valley.)

The meeting was organized as follows:

Staff presentation – Public Input – 15 minute break
Additional 30 minutes of public input – Town Council Discussion

Mayor Winfield set the ground rules for the meeting. He asked the audience to please be respectful, acknowledging that the meeting was taking place in a house of worship (Church of the Nazarene). He requested that there be no applause or jeering during or after any resident’s speech. He reiterated that he wanted the meeting to be a civil and safe setting for everyone.

According to a local news report, there were over 700 people in attendance.

Town Manager Mary Jacobs gave her summary analysis of golf operations
She referred to the Summary Document which is on the Town’s website – Summary of Town Manager’s Analysis of Golf Operations.
“The Town acquired the former El Conquistador Golf and Tennis Club in December 2014 for $1M dollars….At the time of the purchase, the initial projections predicted that following an investment of $2.8M in capital improvements, the golf courses, restaurant and tennis operations combined would break even after 5 years…In addition, there would need to be about $9.2M in various capital expenditures over 10 years of which an estimated $6.4M would be for the golf courses.”
Town Attorney, Gary Cohen discussed three key contractual obligations
(1) Golf course restrictions. The agreement between HSL and Oro Valley limits the possible uses to golf courses, open space, or recreational amenities in a manner compatible with the operation of the resort as a first-class property.

(2) HSL’s rights upon discontinuation of one or more of the courses. HSL shall have the right to lease such facilities from the Town for a 50-year term. He believes the lease tern is $10,000 per year.

(3) Golf course operator provision. The requisite qualification for the operator of the golf courses is as follows: a professional national or regional management company with prior experience managing both municipal and resort golf courses.

Slide presentation by Mary Jacobs

2017 National Golf Foundation Options (NGF recommended Option B: 27 holes)

Town Criteria

Key Overall Assumptions

Capital Investment Assumptions

Natural Open Space Examples – “The Art of the Possible” 

Public Park Space Examples 

36-hole option – Pros and Cons 

27-hole option – Pros and Cons 

18-hole option – Pros and Cons 

No golf/Open space/Recreation – Pros and Cons 

Part 2 will be published on Wednesday and will include the public comments.