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Golf staff seeks $167,000 loan to add simulators and year‑round programming
Summary
Golf course staff presented a business plan asking council to approve pursuit of a $167,000 loan to install golf simulators and related clubhouse infrastructure; staff said the proposal could turn a seasonal course into a year‑round revenue generator and will go to finance for review.
Golf course management presented a business plan to convert part of the new clubhouse into an indoor simulator operation and asked the city to allow staff to pursue a loan of $167,000 to cover equipment, infrastructure and furnishings.
Kyle (clubhouse/golf staff) told the committee the proposal aims to move Dykeman Park Golf Course from roughly a seven‑to‑eight‑month operation to 12 months by installing simulators and adding infrastructure such as Wi‑Fi and security cameras. Kyle said the total project cost is $167,000, composed of a $92,625 simulator package, $49,408 in infrastructure and $24,967 for furnishings.
Kyle said the simulators are already widely used in the industry, that the superintendent and current staff expect to operate the simulators with existing personnel most of the year, and that leagues and reserved sessions would provide recurring revenue. He estimated reservation pricing and referenced the TSheets reservation software'that includes a simulator feature.
Kyle said staff ran an RFP for financing and received multiple offers; Security Federal (the staff recommendation) offered the lowest rate and a five‑year repayment plan with an estimated first‑year payment in the low‑to‑mid $30,000 range (Kyle said the first year payment was about $37,000 as a planning estimate). Kyle said the loan agreement would allow early payoff.
Council and staff discussed staffing, scheduling, typical rates and marketing. Board members asked whether membership discounts would be offered; Kyle said staff would monitor popularity and might test discounts later. Several council members agreed the project should proceed to finance day so finance staff can review loan terms and repayment assumptions.
The committee agreed to move the loan request and the business plan to the finance department for review; no final borrowing resolution was made at the meeting.
Ending: The loan request and business plan will be forwarded to finance for underwriting and recommended terms; staff and council will bring final loan paperwork back to council for approval if finance recommends proceeding.
