LTC 048-2006 Special Resident Golf RatesMIAMIBEACH
OFFICE OF THE CITY MANAGER
NO. LTC # 048-2006 LE'I-rER TO COMMISSION
TO: Mayor David Dermer and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager.~~ ~
DATE: February 22, 2006
SUBJECT: Special Resident Golf Rates
The purpose of this LTC is to provide you with additional information regarding the closure of
the Normandy Shores Golf Course (NSGC) and our efforts to mitigate the impacts.
The City's approved concept for golf course operations has assumed that upon completion
of reconstruction activities at both the Miami Beach Golf Club (MBGC) and the NSGC, the
community would be served by two quality venues.
The MBGC has been intended to be the City's higher end course that competes with other
destination venues in south Florida, such as Doral. Rates at MBGC are competitive with
other premier courses. An important component to the player mix at this course is the
visitor/hotel guest that provides for a substantial component of the revenue stream and the
course ability to be self sustaining.
Our second venue is the Normandy Shores Golf Course (NSGC) that is intended to be our
principal resident course with a more affordable rate structure than MBGC. While the
course quality is to be similar to MBGC, fewer player amenities would be offered to help
control costs. The course is not expected to be self sustaining at this time as an insufficient
amount of play is anticipated to support operating costs. The amount of play is more
reflective of golf industry experience and demographics than any other factor. Combined
with a lower rate per round of golf, the course will need to be subsidized by the City annually.
The amount of subsidy will still have to be determined as it will be rate sensitive and final
rates have not yet been determined. A presentation to and discussion by the Finance and
City-wide Projects Committee will be set up as more information is known about construction
and operating costs.
When the NSGC was closed last spdng, it was with the expectation that the course would go
into reconstruction in the fall. Unfortunately several issues in design and permitting have
occurred that have delayed the reconstruction timeline so that construction is to begin in the
summer. Reopening the course is not possible without a significant capital expenditure.
While these issues have delayed the course construction, the Clubhouse component is
funded and will be proceeding soon.
In the final design phase for the course, other facility issues have developed that will need to
be dealt with in the immediate future. Originally renovations for the NSGC maintenance
building, cart barn and on course restrooms was anticipated. As the final design has
progressed it is apparent that new structures will need to be constructed for which a
construction funding source has to be identified. Options are being developed for discussion
by the City Commission.
With the extended closure time, in an effort to mitigate the inconvenience to our resident
golfers, the Administration in conjunction our golf management company, Professional
Course Management (PCM), has developed the following special golf rates that will be
offered to all Miami Beach residents for the remainder of the Winter season (through April
30, 2006 at which time the summer rate schedule goes into effect). Prior to this
recommendation being made the administration of the Parks & Recreation Department and
PCM management discussed vadous options that would best accommodate our residents
while being sensitive to the balance of resident, tourist and day guest players that must be
maintained to ensure the success of the Miami Beach Golf Club.
The options to be offered provide for expanded golf play opportunities with an additional
resident discount, beyond the discount already offered, at both the MBGC and the Miami
Shores Golf Club. Miami Shores Golf Club was selected because of its proximity and its
management by PCM. PCM has been very helpful and cooperative in structuring this
program to benefit our golf community. As the program at both the MBGC and Miami
Shores Golf Club provide for below market rates that are also below current resident rates
there must be some limits on availability. The program will provide for two days of more
deeply discounted golf play for residents at two quality courses.
The following rate structure will be made available to residents in the end of February:
· On Monday's a discounted rate of $50.00 + tax (regular rate of $79.00 + tax) will be
available to all Miami Beach residents at the Miami Beach Golf Club.
· On Tuesday's a discounted rate of $40.00 + tax (regular rate of $60.00 + tax) will be
available at the Miami Shores Golf Club (a PCM managed property).
Tee times for our residents can be made at either facility up to five days in advance and are
subject to availability.
This rate structure has been discussed and unanimously approved by the City's Golf
Advisory Committee at their February 7, 2006 meeting.
Our residents will be notified of the very special offer by notice in the City's section of the
Miami Herald's Neighbors, Sunday edition, as well as one of the Spanish newspapers
regularly utilized by the City. Additionally, the residents who had memberships at the
Normandy Shores Golf Course at the time of its closure will be notified via mail of this
special offer.
We believe that this accommodation helps to mitigate some of the impacts of the closure of
the NGSC.
Please advise if you have additional questions, comments or concerns.
JMGIRCMIKSlks
F:~='ngr~ALL~BOB~TC Winter Resident Golf Rates.doc
c: Robert C. Middaugh, Assistant City Manager
Kevin Smith, Parks & Recreation Director
Alberto Pozzi, Manager, PCM