LTC 164-2011 Status Update City's Participation M I AMI BEA CH
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OFFICE OF THE CITY MANAGER
NO. LTC # ,164 -2011 LETTER T 01 $AftS�
CITY C1..,EI RK'S OF ICL
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: June 29, 2011
SUBJECT: Status Update - City's participation hhe mier Card Summer Golf Membership
Program `
This Letter to Commission is being sent to provide you information in response to the recent
questions regarding how the Premier Summer Golf Membership program works, and what have
been the benefits to the City of Miami Beach.
Background
The summer period is a very challenging time for golf course operators to, generate play. The
weather.conditions, heat and reduced tourist business requires management to generate rounds
from local and regional golfers. The summer golf market is highly competitive, with courses
substantially dropping their golf fees, developing marketing packages that may include driving range
balls, reduced priced beverages and food, and discounts for multiple rounds purchased, etc. A
summer membership is one of the most common programs developed to attract golfers, increase
revenues and reasonably ensure an increased number of golf rounds during the slowest time of the
golf year.
Prior to participating in .the Premier Card golf program, the City of Miami Beach offered summer
memberships to the Miami Beach Golf Club (Normandy Shores Golf Course was closed at this
time). The first summer membership program, initiated in 2003, offered a single resident golfer a
membership (good from April 15 to September 30 for unlimited golf at the price of $1,000, plus a
cart fee of $20.00 per round.-The initial program sold 66 memberships and generated $126,088 in
income. In subsequent years the City implemented similar summer golf membership programs
which, in its' most successful year, (2005) saw a total of 126 memberships, which generated an
income of $213,706. At one point, although not actually participating in the Premier Card program,
the Miami Beach Golf Club offered Premier Card holders the option of playing the course,Monday—
Thursdays only, for a rate of $50.00. This generated limited play and minimal income.
Based on the past responses to summer membership programs at the Miami Beach Golf Club and
the need to generate substantially more income than the localized summer membership was
creating, and the documented positive impact on golf rounds, as well as revenues that the Premier
Golf Summer Program had on participating golf courses, the City of Miami Beach became a full
partner in 2009.
Premier Card Overview
I
The Premier Golf Card is a summer membership program that for the summer of 2011 includes 26
of the finest public access golf courses in Miami —Dade and Broward Counties. The program was
conceived and developed with the sole- purpose of increasing play and revenue at participating
courses during.the traditionally slow summer months.
Page 2 of 2
Premier Card
Fifty percent of the income generated by the card sales (after marketing and administrative
expenses, which in 2010 equated to approximately 13.2% of the total revenue) is distributed equally
among the participating clubs; the remaining fifty percent of revenue is distributed to the clubs based
on the percentage of rounds played at each golf course.
Since its inception, and despite a difficult economic environment, Premier has had accelerated
growth both in the number of participating clubs and card sales. This year the program is projecting
more than 10,000 Premier card sales, in excess of $6,000,000, generated to participating courses in
card sales distribution and cart fees; these kind of results make Premier the most successful joint
summer membership program in the country.
The clubs participating in the 2011 Premier Card Summer Program are:
Miami - Dade County Broward County
Country Club of Miami Carolina Club
Crandon Golf at Key Biscayne Grand Palms
Doral Golf Resort McLean Course Bonaventure Country Club
International Links Miami Hillcrest Country Club
Shula's Golf Club Inverrary Country Club
Miami Beach Golf Club Jacaranda Country Club
Miami Shores Country Club Pembroke Lakes Golf Club
Normandy Shores Golf Club Plantation Preserve
Palmetto Golf Course Heron Bay Golf Club
Deer Creek Golf Club
Woodlands Country Club
Woodmont Country Club
Seven Bridges at Springtree !
Benefits to the Miami Beach and Normandy Shores Golf Clubs
The City of Miami Beach golf clubs began participating as a full partner in the in the Premier Card
Summer Membership Program in 2009. The following is a summary of the program by year.
2009 i
The City received a total of $1,064,161.51 in revenue from the 2009 Premier Card distributions and j
rounds. This was comprised of $440,373.41 at the Normandy Shores Golf Club and $623,788.10 at
the Miami Beach Golf Club. By comparison, the last year Miami Beach Golf Club offered its own
individual summer membership program (2008) a total of 55 memberships were sold which
produced combined revenues (membership dues, cart fees and driving range) of approximately
$110,000.
2010
The City received a total of $1,137,766.64 in revenue from the 2010 Premier Card distributions and
rounds. This was comprised of $657,931.59 at the Miami Beach Golf Club and $479,835.05 at the
Normandy Shores Golf Club, which represented 63% of the total golf course revenue for the period.
2011
The 2011 Premier Card Summer Golf Program began on May 1 st. As stated, there are j
26 of the finest public access golf courses in Miami —Dade and Broward Counties participating (see
above list). As of June 15, there have been a total of 7,891 cards sold program -wide. Although the
first distribution of the City's portion of revenues is not scheduled until the end of June, it is projected
that the City will meet or exceed last year's revenues for the period.
Please advise if you have questions, comments or concerns.
i
JMG /HMF /KS
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