HomeMy WebLinkAboutOB 3 T.R. GOLF COURSE 9-6-88 OLD BUSINESS
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OATE: SEPTENBER 6, 1988
TO:
FROM:
SUBJECT:
WILLIAM A. HUSTON, CITY PIANAGER
CHRISTINE SHINGLETON, DIRECTOR OF COMliUNITY DEVELOPMENT
TUSTIN RANCH DISCOUNT GOLF COURSE FEES
RECOI~IENDATION
Receive and file.
BACKGROUND
In response to an inquiry by Councilwoman Kennedy, staff had requested that the
Irvine Company consider discount green fees for City residents at the Tustin Ranch
Golf Courses.
Attached is the Irvine Company's response to Councilwoman Kennedy's request.
Christine Shingleton ~e
Director of Community velopment
CAS'pef
Attachment:
August 4, 1988
IRVlNE COMMUNITY
O 'VELOE NI n' COMPANY
Christine Shingleton
Director of Community Development
Community Development Division
City of Tustin'
300 Centennial Way
Tustin, Ca. 92680
Dear Chris:
This responds to your June 9 letter regarding the green fees proposed for the
Tustin Ranch Golf Course. Our delay in responding is the result of a thorough
evaluation of the City Council's suggestions.
It is our conclusion, Chris, that the suggested discount on green fees isn't
economically sound given the type of first rate private facility the city both
desires and requires. In surveying other golf course operations in the nearby
area, it appears that discounts are'provided to residents in some instances.
However, in each case we found where a discount was allowed it was at a city
owned course. The "discounts" in these cases were subsidized by the city. In
addition to this economic issue, we also have strong reservations about the
practical problems of administering such a discount program.
We would be happy to discuss our rationale in greater detail with you and the
City Council. For the purposes of this initial response, though, please convey
to the Council our principal concern, that being the economic viability of the
course under a discount green fee operation.
Without an operating history, it is difficult to project usage with precision.
We do know, however, the substantial investment that is being made both in
premium land and dollars to achieve the first class facilities that our
negotiations have envisioned. We have added an additional 10 acres to the
course in order to meet the intent of the "high quality" course as we committed
to in the Specific Plan. We have retained a highly regarded consultant team
and operator. To justify this investment -- and to assure the course's
long-term financial viability -- the Tustin Ranch operation must be assured a
fair and adequate return. A discount green fee program is not consistent with
this goal and could effect the prospects for successful operation of Tustin
Ranch Golf Course as a high quality facility.
If you wish, we would be happy to discuss this further with you or with the
City Council members. Chris, thank you in advance for passing our comments to
the appropriate people.
Sincerely,
Jennings D. Pierce, Jr.
Project Director
JDP:sb
500 Newport Center Drive, P.O. Box I, Newport Beach, California 92658-8904 (714) 720-2380
A Division of The Irvine Company