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RECEIVE UPDATE ON SWENSON PARK GOLF COURSE RFP AND CIVIC ENGAGEMENT PROCESS FOR VAN BUSKIRK GOLF COURSE
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RECOMMENDATION
This is an informational item. Staff is providing an update to the City Council on the progress in selecting a leaseholder for the Swenson Park Golf Course and results of civic engagement meetings conducted with Van Buskirk Golf Course stakeholders. No Council action is requested at this time.
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Summary
On December 4, 2017, the City Council gave direction to staff to provide a solution that reduces the City’s growing general fund golf subsidy and preserves golf at the Swenson Park Golf Course. Mayor Tubbs subsequently formed a Golf Task Force to develop a recommendation. The Task Force recommended that the City release a Request for Proposals (RFP) for a long-term lease of the Swenson property to keep it maintained as a golf course. An RFP was released On May 22, 2018. Three proposals were received. Two proposals offered a long-term lease and favorable terms to keep golf at Swenson and one proposal offered to operate Swenson under an agreement similar to the one currently in place. Each proposal was evaluated by a panel composed of City staff and members of the public, including a representative from the Mayor’s Golf Task Force. The panel also conducted interviews with each proponent and reviewed proposed financial terms from each company. The panel unanimously recommended a proponent who offered a long-term lease for golf. Negotiations are in process. Both proposals seeking a long-term lease made offers contingent on the City ceasing existing golf operations at the Van Buskirk Golf Course.
Staff also conducted a civic engagement process with residents and golfers in the Van Buskirk area. Internal and external stakeholders were solicited for ideas for future uses of the property. Results indicate that residents desire recreational amenities such as expansion of the existing community center, walking trails, biking trails, or aquatics amenities. Golfers prefer that the golf course remain as is. Internal stakeholders and residents agree that should Van Buskirk Golf Course close, there are immediate security, safety and accessibility issues that must be addressed before any long-term solutions are implemented. Staff will use the results of the community engagement process to plan for short and long-term goals that meet resident needs and are financially sustainable.
DISCUSSION
Background
For almost a decade, municipal golf courses have been a topic of regular Council discussion. In 2010, facing mounting financial issues, the City hired a consultant to analyze the golf courses and make recommendations about their future. The consultant determined that the golf courses would not be sustainable under the City’s management. In 2010, the City issued an RFP for the lease or purchase of one or both courses. There were no respondents. In 2011, the City awarded an agreement to operate the golf courses to KemperSports, who has operated both courses since that time. The courses were included in the bankruptcy proceedings filed in 2012 and were held as collateral until the City exited bankruptcy in 2015. Continued declines in the national golf market show that municipal courses will continue to require more General Fund subsidy without the ability to make needed improvements, achieve profitability or break-even status.
Staff brought an informational item to City Council in December 2017 seeking direction on the future of the golf courses. Members of the public made clear that it was imperative to maintain golf at Swenson. The City Council directed staff to provide options that maintained golf at Swenson, offered alternatives for Van Buskirk and reduced or eliminated the General Fund subsidy. At a town hall meeting held in January 2018 residents reiterated their preference that golf remain at Swenson.
Later that month Mayor Tubbs established a task force and sought public input on recommending a solution. The task force recommended that the City pursue a Request for Proposals for a long-term lease of Swenson.
On May 22, 2018, the City issued an RFP for Swenson Municipal Golf Course Operation, Maintenance and Improvement. A total of three proposals were received. A panel composed of City staff and two community members, including a representative from the Mayor’s Golf Task Force, conducted the evaluation process. Upon completion of the evaluation process, the panel unanimously selected one proponent as the most qualified applicant.
Staff are currently in negotiations. The process is time-consuming as the City is moving from an operating agreement to a long-term lease. In this type of transition staff must conduct additional due diligence during the process including determining fair market value of equipment, responsibilities for water rights and reporting, and inspections. With the possible closure of Van Buskirk staff must also develop a transition plan to return daily control of the property to the City and determine interim maintenance and security needs as well as long-term improvements that support the needs of stakeholders.
To prepare for this possibility, two community engagement meetings were held. The first was held on December 19 at Conway Homes with 22 people in attendance. Among the most popular ideas presented are the expansion of the existing Van Buskirk Community Center, biking/walking trails, skate/bike (BMX) park, swimming pool or aquatic feature, and farmers market to address food desert issues and a local museum.
The second meeting was held on January 12 at the Van Buskirk Community Center with 42 people in attendance, including a significant presence of golfers who use the Van Buskirk Golf Course. Their preference was to keep the property a golf course. Other attendees supported ideas such as building a pool or water feature, reducing the property to a 9-hole golf course, skating rink, a skate/BMX park, family gardens, First Tee program, a University Campus and a soccer complex facility.
Staff also talked to internal stakeholders from Police, Fire and Public Works about the immediate needs for the property upon any closure. There was widespread agreement that the property would need additional security presence, fire abatement related to fallen trees and debris, and additional operating funds to maintain the land in a safe manner. A regular presence on the property was also suggested with the idea that the clubhouse building could serve as a headquarters for a local non-profit or other agency providing services to residents. Residents also wish to have community stewardship opportunities during the property’s transition and beyond. The residents also shared that, while some youth have participated in golf through Stockton First Tee, the course is primarily used by golfers from outside the area.
Present Situation
Following the direction of the City Council, staff has identified a company that has agreed to enter a 15-year lease agreement with the City for the operation and maintenance of the Swenson Park Golf Course contingent upon the City ceasing golf operations at Van Buskirk. Negotiations are currently underway, and staff is preparing a recommendation for City Council approval.
Staff also has a clearer understanding of the needs of Van Buskirk community stakeholders and their preferences for how the property should evolve. A transition of this magnitude requires short and long-term planning. Staff is now better prepared to develop a transition plan for Council approval. During any transition, it will be necessary to use the budgeted subsidy amount toward the upkeep of the Van Buskirk property and to allow time to implement long-term solutions. These actions represent the City’s first step in a multi-step process toward a more responsive and affordable approach to meeting the recreation needs of all residents.
Financial Summary
This is an informational item only. There is no financial impact.