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City Council Packet 04-17-2001 Special
Agenda City of Plymouth Special City Council Meeting Tuesday, April 17, 2001 Immediately following Board of Review) Police Training Room 1. Call to Order 2. Hollydale Golf Course 3. Future Study Session Topics 4. Adj ourn DATE: April 12, 2001 TO: Mayor and City Council FROM: Dwight D. Johnson, City Manager SUBJECT: Possible Golf Course Acquisition Background. During the recent Council consideration of the extension of Holly Lane across the CP railroad tracks, some discussion also was generated regarding the possible future acquisition of Hollydale Golf Course by the City. The City's 2000 Comprehensive Plan update addressed this issue by identifying the need to retain at least one golf course for public play in Plymouth and outlining several strategies that could be used to accomplish this if public golf in Plymouth is threatened. These strategies included (1) acquisition by another public agency such as Hennepin County which already operates several public golf courses; (2) a public-private partnership; or 3) acquisition and operation by the City. Hollydale Golf Course was noted as the best of the current courses for possible acquisition. Currently, Plymouth has three 18 hole golf courses: Hollydale, Elm Creek and Hampton Hills. In addition, Begin Oaks, a nine hole course, opened last Fall and the County's new nine hole golf course is expected to open later this year. Potential cost of acquisition. Before any acquisition strategy can be evaluated, the size of the acquisition needs to be estimated. Land use prices have been escalating in Northwest Plymouth generally. Hollydale Golf Course occupies 154 acres. Although the land is currently guided Public/Semi-Public/Institutional and it is the City's adopted policy to try to retain public golf in Plymouth, the City could not reasonably deny a request for re -guiding to residential. Approximately 460 single family units could be developed on this site. Sewer, water, transportation and other necessary City infrastructure is in place. Based upon other recent sales of property in Plymouth, a reasonable current market value for the Hollydale Golf Course is $100,000 to $150,000 per acre or a total between $15.4 million and $23.1 million for the total acreage of the property. In estimating the possible acquisition cost, some allowance should also be made for needed improvements. If the City acquired the course, two needed improvements seem evident. One is the need for a new, larger clubhouse. Newer public courses depend upon revenue from such items as food and beverage concessions and a pro shop. These items would be important if the course needs to support a revenue bond. The other needed improvement is the parking, which was identified by the current owners in the discussion of the Holly Lane extension. Potential resources for acquisition by the City. a. Community Improvement Fund. This fund was created with the adoption of the City Charter in 1992 and currently contains $6 million. The City has maintained a practice of retaining at least $5 million in this fund since its inception to (1) generate ongoing interest funds for identified capital projects, (2) retain capital for unique, community -wide needs or opportunities that may arise, and (3) to provide for major disasters or emergencies. The Council would need to evaluate whether or not the use of these funds to acquire a golf course falls within the intent of providing for a unique, community -wide need or opportunity. Also, the City Charter requires that any expenditure of more than $3 million from this fund requires approval of the voters. b. Revenue Bond. Springsted, Inc., the City's bond advisors, notes that any revenue bond would likely be a "gross revenue" bond in which the first dollars of revenue are dedicated to bond principal and interest. Although not a general obligation bond officially, the City would be obligated to operate the golf course and produce revenue even if the total enterprise is operating at a loss. This practically means that the City would have to commit property tax dollars to the operation of the course if total course revenues are insufficient to pay back both the bonds and the operating costs. Springsted notes that they have not seen a revenue bond of over $5 million succeed in any analysis that they have done for a similar facility. This is because the required coverage of the principal and interest payments is generally 150% to provide adequate security for the bondholders. Principal and interest on a $5 million bond, even at today's excellent interest rates, is estimated at a little over $500,000 per year. If this is divided into an average of 35,000 rounds per year at the golf course, the average increase in the 18 hole fee would be about $14, or more than a 50% increase in the current fee. A $10 million dollar revenue bond would double the fee and be likely infeasible since the rates would far exceed the fees for other similar courses in the area. c. General Obligation Bond. These are bonds that would be issued with the full faith and credit of the City and therefore could be issued at the most favorable interest rate available to the City. However, general obligation bonds require a referendum for approval. The recent City Charter amendment requires that a referendum must be by mail ballot unless it is conducted as a part of a general election. General obligation bonds provided the majority of the financing for the Plymouth Creek Center facilities. G.O. bonds directly impact the taxpayer because a levy must be made each year to assure that the principal and interest payments are covered. Each million dollars of issuance of a G.O. bond would raise the City's tax levy by about three fourths of one percent (.75%) or $3.82 per year for the average homeowner. For example, a $15 million bond issue would raise City taxes by $57.30 or 11.25% for the average homeowner. Impact on the City. The funding sources noted above, particularly the CIF and G.O. Bonds, must be evaluated in terms of their potential impact on the City's ability to provide other services. For example, the CIF or general obligation bonds may be needed to fund any of all of the following in the next 5-10 years: Fourth Fire Station Acquisition and development of the 10th playfield Further acquisition of open space lands or greenway areas Addition of a third sheet of ice at the Ice Arena Additional City Center area improvements A major golf course acquisition may tend to reduce the City's ability and/or the taxpayers' willingness to finance some of the other improvements. Summary. The total market acquisition cost has escalated sharply to an estimated $15-23 million. Currently identified City resources are inadequate to fund this amount. Revenue bonds in this amount are likely unfeasible. Voters may be hesitant to approve a G.O. Bond or CIF expenditures over $3 million because of the sheer size of acquisition (2 or 3 times the Plymouth Creek Center), because it would benefit only limited numbers of residents, and because it could directly or indirectly cause a significant property tax increase. The acquisition could impact other large capital projects that might be needed or desired. Alternative. The best alternative for City acquisition in the future could involve a creative, cooperative agreement with the current owners to partially donate the course to the City in a way that would provide tax or estate advantages to the owners. The City acquired a piece of what is currently French Park in this manner about 5-6 years ago. There may be several mechanisms to explore in this regard and they could be formulated to leave the course in private hands until some specified future time. A similar approach might involve acquiring only the development rights for the golf course. Tom Campbell of the City Attorney's office works with estate planning matters on a regular basis and could be available by telephone conference call at our study session meeting (he is recovering from knee surgery). The staff could be directed to refine these options and then arrange a meeting with the owners to discuss them and determine if there is any interest. 04-'10.01 17:12 FAX 851223300.1 SPRINGSTED INC. 1ih00, 85 E. SEVENTH PLACE, SUITE 100 SAINT PAUL, MN 55101.2887 651.223-3000 FAX: 651-223-3002 fZJ EXTERNAL MEMORANDUM TO: Dale Hahn, Finan c irectoe Cr City of Plymouth, Mn FROM: Dave Ma vray -,- v - DATE: April 10, 2001 SUBJECT: Golf Course Gross Revenue Bonds SPRINGSTED 4d;eors to the Public Sector From our discussions we have prepared a "general estimate" of the financial structure for this type of issue. We have used $5,000,000 as a baseline net funding requirement for illustration purposes only; and not as an indicator of this specific project's financing capacity. This is a 'gross revenue" bond issue in that bondholders would be secured by the 'first dollars" of project revenues, and no general obligation pledge. However, as we have discussed, a typical requirement for marketability of a gross revenue issue is a pledge by the issuing city that the golf course will be operated while bonds are outstanding. Therefore for practical purposes, if annual project revenues are insufficient cover both debt service and operations, the city will be expected to provide the funding from whatever sources to operate the facility. The interest rate assumption is based on discussions with an area underwriter specializing in this type of transaction, with these rates approximating the current market position_ For this illustration we have structured the issue with a 20 -year repayment term, a debt service reserve and a 150% expected coverage requirement. These structuring elements are generally representative for this type of security, but any final terms would be based on the specks of the project and its financing package. We believe the 150% coverage is generally a minimum level for this type of project. We would be glad to assist the City in further review of this project. CORPORATE OPFiCE: SAVfr PAUL. MN - visit tour website at www.springsted-oonn U4.10,'01 17:12 FAX 851:23300: SPRINGSTED INC. City of Plymouth, Minnesota 5,675,000 Gross Revenue Bonds, Series 2001 SOURCES & USES Dated 08/01/2001 Delivered 08/01 /2001 SOURCES OF FUNDS Par Amount of Bonds.......................................................... $5,675,000.00 TOTAL SOURCES.............................................................. $5.675,000.00 USES OF FUNDS Total Underwriter's Discount (1.800%) ...... ...— ................... 102,150.00 Costs of Issuance................................................................ 63,700.00 Deposit to Debt Service Reserve Fund (D5RF).................. 509,067.50 Deposit to Project Construction Fund .................................. 5.000.000.00 RoundingAmount. ....................................................... ....... 82.50 TOTALUSES...................................................................... $5,675,000.00 lih 003 Springsted incorporated toss Revenue fonds- SINGLE PURPOSE Public Finance Advisors 4/10/2001 3:06 PM U.1 10•'01 17:12 FAX 6512231002 _ SPRINGSTED INC. Z004 City of Plymouth, Minnesota 5,675,000 Gross Revenue Bonds, Series 2001 NET DEBT SERVICE SCHEDULE Date Principal Coupon Interest Total P+l DSR Net New D/S 2/01=02 12.726.69) 12,726.69) 2/01/Z003 15,000.00 4.250% 494.002.50 509.002.50 25.453.38) 463,549.12 2/01/2004 180,000.00 4.500% 328,697.50 508,697.50 25,453.36) 483.244.12 2/01/2005 185,000.00 4.750% 320,597.50 505,597.50 25,453.38) 480,144.12 2/01/2006 195,000.00 5.000% 311,810.00 506,810.00 25.453.38) 461,356.62 2/01/2007 205,000.00 5.100% 302,060.00 507,060.00 25,453.38) 481,606.62 2/01/2008 215,000.00 5.250% 291,505.00 506,605.00 25,453.38) 481,151.62 2/01/2009 225,000.00 5.400% 280,317.50 505,317.50 25,453.38) 479,864.12 2/01/2010 240,000.00 5.500% 268,187.50 508,167.50 25,453.38) 482,714.12 2/01/2011 250,000.00 5.600% 254,967.50 504,967.50 Z5,453.38) 479,514.12 2/01/2012 265,000.00 5.700% 240,967.50 505,967.50 25,453.38) 480,514.12 2/01/2013 280,000.00 5.750% 225,852.50 505,862.50 25,453.38) 480,409.12 2/01/2014 295,000.00 5.800% 209,762.50 504,762.50 25,453.38) 479,309.12 2/01/2015 315,000.00 5.900% 192,652.50 507,652.50 25,453.38) 482,199.12 2/01/2016 335.000.00 5.000% 174,067.50 509,067.50 25.453.38) 483,614.12 2/01/2017 355,000.00 6.100% 153.967.50 508,967.50 25,453.38) 483,514.12 2/01/2018 375,000.00 6.200% 132,31Z.50 507,312.50 25,453.38) 481.859.12 2/01/2019 400.000.00 8-250% 109,062,50 509,062.50 25453.38) 483,509.12 2/01/2020 420,000.00 6.250% 84,062.50 504,062.50 25,453.38) 478,609.12 2/01/2021 450,000.00 6.250% 57,812.50 507,812.50 25,453.38) 482,359.12 2/01/2022 475,000.00 6250% 29,587.50 504,687.50 534,520.88) 29.833.38) Total 5,675,000.00 4,462,442.50 10,137,442.50 1,030,851.79) 9,106,580.71 Dated- ............. .................................................. ..................................... 8/01/2001 FirstCoupon Date......................................................................................... 8/01/2002 YIELD STATISTICS Bond Year Dollars......................................................................................... $74,397.50 AverageLife.................................................................................................. 13.110 Years AverageCoupon........................................................................................... 5.9961081% Net Interest Cost(NIC).................................................................................. 6.1354111% True Interest Cost (TIC) ........................................ ........ ...... I .................... .... 6.1578466% Bond Yield for Arbitrage Purposes................................................................ 5.9476558% All Inclusive Cost (AIC)............................................................................... 6.2917857% IRS FORM 8038 Net Interest Cost........................................................................................... 5.9981081% Weighted Average Maturity..................................................... 13.110 Years Revenues generated are required to provide approximately 1.5x annual debt service cost. Coverage' 725,323.68 724,866.18 720.216.18 722,034.93 722,409.93 721,727.43 719,795.18 724,071.18 719,271.18 720.771.18 720,513.68 718,963.68 723,298.68 725,421.18 725.271.18 722.788.68 725 413.58 717,913.68 723,538.68 Springsted Incorporated File = PLYMOUTH.SF•01 Gross Revenue Bonds- SINGLE PURPOSE Public Finance Advisors 4/1012001 3:18 PM 8.2.5.2 Planned Special Facilities There are no specific plans for special park and recreation facilities in the City at this time. However, two special facilities, due to their specific location requirements, deserve further examination: living farm and environmental park. Each is discussed more fully below. 8.2.5.2.1 Living Farm A living farm is a farmstead that has been preserved and is actively managed to demonstrate farm facilities, animals and farming practices. A living farm would be a beneficial community asset from a variety of standpoints. Natural resource preservation, community gardening, historical interpretation, equestrian activities such as horseback riding and educational programming can all take place through a living farm. In considering a living farm, the City will use the following process: Gauge the community's desire for such a facility. Select potential sites and begin acquisition process (the Baer Farm is one potential site and is shown on Figure 8-3). Develop a management plan for the site, understanding that extensive ongoing monitoring, maintenance and staffing will be required. Explore the possibility of partnering with other municipalities or groups, such as the cities of Medina, Corcoran and Maple Grove, or the Plymouth Historical Society, Hennepin County and local colleges. Restore and upgrade the farm site. 8.2.5.2.2 Environmental Park Plymouth as a whole lacks outdoor environmental education facilities, although some elementary schools are establishing small sites. Eastman Nature Center at Baker Regional Park is the nearest major center for environmental interpretation. An environmental park may take many forms, ranging in size, staffing and maintenance. It may be incorporated into an existing park or it may be a new facility designed specifically for nature interpretation and education. A possible site for a new environmental park facility is the large City -owned parcel near I-494 and Schmidt Lake Road (see Figure 8-3 ). A likely site for an interpretive area within an existing park would be the lowland hardwoods of West Medicine Lake Park. 8.2.6 GOLF COURSES Golf is a sport that is growing rapidly in popularity. According to the National Golf Foundation, there are over 25 million golfers in the United States today who play on over 16,000 courses. Since 1986, the number of golfers in the United States has increased by 33 percent and the Plymouth Parks Plan — August 8, 2000 8-34 average number of courses being built per year has risen from 150 to 400. The Upper Midwest, in particular, has seen high participation in golf. Minnesota, Wisconsin, North Dakota and Michigan are the top ranking states, each with approximately 20 percent of the population golfing on a semi -regular basis. Current information points to a vital golf economy in Minnesota, where the complement of golf courses has grown from 387 in 1989 to 469 in 1999. The City of Plymouth is home to several golf courses (see Figure 8-5 and Table 8-10) and a large number of golfers. The consideration of public golf in the City is important for three reasons: Recreation diversity — The City of Plymouth strives to provide a variety of recreation opportunities to its residents. Provision — of green space. Golf requires large tracts of undeveloped land and, therefore, golf courses provide the opportunity to maintain large areas of the community as green space that would otherwise be developed. However, golf courses need to be designed to ensure compatibility with the City's natural resource preservation goals. Golf courses should be sited on suitable land of appropriate size to allow for the retention or creation of natural habitats between and around holes. Golf courses should include on-site storm water retention and buffering of wetlands and streams. The use of chemical fertilizers, pesticides and herbicides should be limited. Native plant materials should be used. Quality of life — Plymouth residents have come to expect the presence of public golf courses in the community and nearby. Seventy-nine percent of the respondents to the City's 1999 survey said that it was important to have publicly accessible golf in the (Source: Decision Resources, Inc.). As Plymouth's population increases, it will be important to ensure that this recreational diversity, natural resource preservation and quality of life is continued. 8.2.6.1 Types of Golf Courses Golf courses may take numerous forms and vary widely in cost, maintenance, challenge, accessibility to the public and other attributes. Courses can be described most easily by accessibility and length: Accessibility Public: operated by a government entity, such as a City, county, or parks department Private/ Open to the Public: operated by a private owner, but offering tee times to any user. This is the most common type of course. private: operated by a private owner or club which charges a membership fee and provides tee times ONLY to members. Plymouth Parks Plan — August 8, 2000 8-35 FIGURE 8-5 GOLF COURSES IN PLYMOUTH USE AREA tw._. i 1--77 " French L d Open00, Sundance Br oldyn r t°' Pa c Vn Core Pheasant Run Edinbur h£ t , Shamrock© Rush Creek USA Brookland r i -- --- Exec Nine. rte' t = Mapie GrBrooklyn € ng Greene nowFRolli, . a 01Ea le L.ak e r t Begin Oaks,. Elm Creek ::: Hampton Hills; New i1 - Hoe Centerbrook l iu s • Hollydale' Medina Ne. E Ho e Baker t__ National . Plymouth ` Go a QyenGolclen flep Woodhill a ` E . yWazata Brookview - Theodore Lakevi i Orory " 1 Wa Zata R - Minneapolis W Yin to Ica r Red Oak_ t- —Q 1 Oak.Rid ei ouls Miuric nikanda Lafayette a vi Meadowwoods, tins 41 Meadowbrook a°n Interlache Edina- " r 6 a Minnetonka 4ILf, r' Fred 1f Via. Glen Laked Edina Richards 1 Plymouth Golf Use Area Existing Private Course not included in tabulation) Existing Public Course Course Outside Use Area, Proposed Public Course Open to Public not included in tabulation) m Existing Private Open Course Course Outside Use Area, Private Proposed Private Open Course L1 (not included in tabulation) Plymouth Parks Plan - August 8, 2000 8-36 TABLE 8-10 PUBLIC AND PRIVATE OPEN GOLF COURSES IN PLYMOUTH GOLF USE AREA Map No. Course Acres* Holes Access 1999 Fees ** Par Notes COURSES IN PLYMOUTH 6 Begin Oaks 70.5 9 Private Open Under Construction 5 Eagle Lake Hennepin Parks) 18 **** Public PROPOSED Exec. 9 and chip/putt course 8 Hampton Hills 147.5 18 Private Open 22 73 9 Elm Creek 105 18 Private Open 27 70 10 Hollydale 154 18 Private Open 24 71 COURSES NEAR PLYMOUTH 1 Pheasant Acres 18 Private Open 25 71 2 Shamrock 18 Private Open 21 72 3 Rush Creek 18 Private Open 100 72 4 Brooklyn Park 9 Public 9 31 7 New Hope 9 Public 9 27 Exec. 9 11 Baker National Hennepin Parks) 18 Public 29 72 12 Orono 9 Public 10 33 13 Brookview City of Golden Valley) 27 Public 24/ 9 72/ 27 Full 18 and Exec. 9 14 Theodore Wirth City of Minneapolis) 18 Public 25 72 15 Meadowwoods 9 Private Open 15 29 16 Glen Lake (Hennepin Parks) 9 Public 11 31 Total 225 Source: SRF Consulting Group, Inc., Star Tribune only determined for golf courses that are existing or under construction within the City of Plymouth based on weekend rates for maximum number of holes (18 or 9 depending on the course) golf course is part of larger Regional Park, course acreage not known not included in total number of holes Length 18 -hole — Though these courses may vary slightly in par, they are full-length courses designed to offer a complete golfing experience. Par -3 — An 18 -hole course consisting entirely of shorter (par -3) holes. This type of course is often used by beginning golfers or by golfers with tighter schedules. Plymouth Parks Plan — August 8, 2000 8-37 9 -hole — These courses offer all the challenge of a regulation 18 -hole course, but only offer 9 holes. It is possible to play the course twice, but users are more apt to play through once when they do not have time available to play a full 18. Executive 9 — A 9 -hole course with a greater than average number of par -3 and par -4 holes. Aesthetics also play a role in course choice by golfers. Many avid golfers are willing to travel longer distances and pay higher greens fees to play a high quality course. For the purposes of this analysis, aesthetics are not considered due to their subjective nature. 8.2.6.2 Guidelines for Assessing Need for Golf Courses There is currently no accepted nationwide standard for quantifying the need for golf courses, as participation in the sport varies significantly from region to region. Rather, as in the case of park standards, it is important to select or establish a standard that best fits the community and its goals. The measure typically used to determine golf course needs is the number of holes per capita. According to the National Golf Foundation, in the nation's 315 Metropolitan Statistical Areas, the average number of holes per 100,000 persons is 78. This equates to approximately 4.3 eighteen -hole courses per 100,000 persons. This number, however, varies greatly by region. The Upper Midwest tends to have a greater number of holes per capita, while the deep south aside from Florida and the Carolinas) and metropolitan New England have much fewer holes per capita. In Minnesota, there are 4.7 million people and approximately 400 public and private golf courses assuming 30 percent of the 469 existing courses are 9 -hole facilities and count as half), which establishes a ratio of 8.5 18 -hole courses per 100,000 persons. This state -based ratio is significantly higher than the national average, but it should be emphasized that Minnesotans golf much more frequently than the nation as a whole. It is also important to note that the state ratio includes many outstate courses that are used only by vacationers. In Plymouth, according to the City's 1999 survey, 52 percent of the residents responding said they or a member of their household play golf. Most (89 percent) of these golfers do not belong to a private club (Decision Resources, Inc.). This analysis employs three methods for assessing the need for additional golf courses in Plymouth: A comparison of Plymouth's existing facilities to the state ratio A comparison of a Plymouth resident "use area" to the state ratio Results of the City's 1999 resident survey Plymouth Parks Plan — August 8, 2000 8-38 8.2.6.2.1 Existing Facilities Analysis There are currently 3 publicly accessible 18 -hole courses (see Figure 8-5 and Table 8-10) within the City of Plymouth (Hollydale, Hampton Hills and Elm Creek) and one 9 -hole publicly accessible course under construction (Begin Oaks). Hennepin Parks is expected to begin constructing a new executive 9 -hole course in Eagle Lake Regional Park in 2000. Because this course has not begun construction, it is not included in the analysis that follows. Table 8-11 shows Plymouth's current and projected population in relation to existing publicly accessible courses and the state ratio. According to this analysis method, there is currently a golf course deficit in Plymouth, which will continue to increase as the population continues to grow. TABLE 8-11 COMPARISON OF PLYMOUTH POPULATION AND GOLF COURSES TO STATE RATIO Year Population State Ratio courses per 100,000) Current Number of Courses State Standard Need Deficit 1999 62,548 8.5 3.5 5.3 1.8 Projected 2020 64,720 8.5 3.5 5.5 2.0 Projected Ultimate 73,390 8.5 3.5 6.2 2.7 Source for population projections: city of rlymoutn Source for state standard and current courses: Star Tribune, SRF Consulting Group, Inc. 8.2.6.2.2 Use Area Analysis Plymouth residents use golf courses outside of the City of Plymouth because of their proximity, and these courses are included in the "use area" analysis. Plymouth's golf use area was defined based on travel time. Most golfers live within 10 miles of the course they typically use, but golfers are willing to travel greater distances to gain some variety in facilities. The average golfer will travel 20 to 25 minutes on a regular basis to play golf. This measure of travel time was used to identify the area within which Plymouth residents are likely to golf (see Figure 8-5). Table 8-10 tabulates the publicly accessible golf courses in the Plymouth Use Area. Table 8-12 compares golf accessibility in the Plymouth Use Area to the state ratio. According to this analysis method, there is a golf course deficit in the Plymouth Use Area as a whole, which will grow over the next 20 years without construction of additional courses. Plymouth Parks Plan — August 8, 2000 8-39 TABLE 8-12 COMPARISON OF PLYMOUTH USE AREA TO STATE RATIO Year Approximate Population in Use Area State Ratio courses per 100,000 Current Number of Courses State Standard Need Deficit Present 1999 300,000 8.5 12.5 25.5 13 Projected 2020 325,000 8.5 12.5 27.5 15 Source: City of Plymouth, Metropolitan Council, SRF Consulting Group, Inc. 8.2.6.2.3 Resident Survey The City's 1999 resident survey (Decision Sources, Inc.) included several questions dealing specifically with golf. According to the survey, a large number (52 percent) of Plymouth residents indicated that they or another member of their household play golf. The overwhelming majority of these golfers (89 percent) do not belong to a private club. These golfers tend to play a variety of courses both in and out of the metro area, but those that play one course regularly tend to play at Hollydale (14 percent), Baker National (8 percent) and Elm Creek (6 percent) most often. A large number of the golfers (37 percent) reported that they play more than 20 times a year. A significant number (28 percent) reported that they play over 30 times a year. This level of participation would probably rank golf second, behind walking, as the most } frequent recreational activity of Plymouth residents. / Specific questions were asked regarding the development of new golf courses and the need to retain the three existing golf courses in the City of Plymouth: Do you think there is a need for additional golf courses in the City?" Yes: 17% No: 65% Don't know/refused: 18% Should the City take steps to assure at least one of these courses remains open to the public?" Yes: 79% No: 10% Don't know/refused: 11 % Would you favor or oppose the City spending funds to keep at least one of these courses available to the public?" Favor or strongly favor: 54% Oppose or strongly oppose: 29% Don't know/refused: 17% Plymouth Parks Plan — August 8, 2000 8-40 Based on public response, it is not necessary to promote construction of additional courses within the City. However, based on the survey results, it should be a City priority to retain at least one publicly accessible 18 -hole golf course in the City. 8.2.6.3 Policies Related To Golf Courses The two analysis methods that utilize the state ratio describe a significant golf shortage in Plymouth and surrounding communities. The severity of this deficit may be the result of utilizing a state ratio that includes a disproportionately high number of golf courses per capita outstate. It does reveal, however, the importance of preserving existing publicly accessible courses, preferably in private hands. According to the City's 1999 resident survey, respondents do not feel the need for additional golf courses within the City. They do, however, support the preservation of at least one publicly accessible course. Any of the four privately owned golf courses that currently exist or are under construction in Plymouth could be redeveloped for other uses in the future. If this occurs, the City would lose golf holes while it gains population. In order to satisfy resident desires and to maintain the present high level of service, quality of life, recreational diversity and protection and enhancement of natural areas, it is important that Plymouth strive to preserve publicly accessible golf courses in the City. Public ownership would ensure accessibility to a golf course. A decision to seek public ownership of any of the existing private golf courses in the City would need to be made following a detailed analysis of the facilities and financing options. Based on a preliminary review of the characteristics (location, accessibility, topography, soils and water resources) of the three existing 18 -hole courses, it appears that Hollydale Golf Course would be the most suitable for conversion to a publicly -owned facility. The following policies will guide future actions with respect to golf courses: The City will avoid policies, regulatory actions or economic pressures (such as assessments for public improvements) that would encourage redevelopment of the courses for other uses. At least one publicly accessible 18 -hole golf course should be preserved within the City. If the availability of a public course is threatened, the City will consider acting to ensure continued access by the public. Possible City actions may include creating a public-private partnership, purchasing and operating an existing course, or seeking other public agencies to purchase and operate a course. Should the City determine the need to act to preserve public golf in Plymouth, first priority would be given to preserving the Hollydale Golf Course. Plymouth Parks Plan — August 8, 2000 8-41 April 16, 2001 Mr. Dwight Johnson City Manager City of Plymouth 3400 Plymouth Boulevard Plymouth, MN 55447 Dear Dwight: I am enclosing a quick overview of a charitable remainder trust. As you can see, this would permit the owners to transfer the golf course to the City, either during their lifetime or at death, but reserving the income produced by the golf course for the benefit of named trust beneficiaries. If you have any questions, you can contact me at 651-234-6235 or at 651-459-0970. If questions arise during the discussion of this subject on Tuesday evening, please feel free to call me at 651-459-0970. Very truly yours, CAMPBELL KNUTSON Professional Association ff TJC: rwg Enclosure Thomas J. Campbell I yj 1 pI yj m 7\i l-i1 I Charitable Remainder Trust Deferred Gifting) The deferred gift involves an irrevocable transfer of an asset, in this case the golf course real estate, to a qualified organization, which includes a political subdivision. The irrevocable transfer of the property is accomplished by the use of a written trust created during the life of the donor or by the donor's Will. A transfer by the donor during the donor's lifetime provides a charitable deduction, the amount of which is the present value of the remainder interest as calculated under IRS tables. Likewise, the transfer of the property at the death of the donor provides the donor's estate with a charitable deduction. The use of a charitable remainder trust allows the owner/donor or other named trust beneficiaries to continue to receive income from the transferred asset, which in this case would be the revenue produced by the ongoing golf course operation. The trust is created for a determined amount of time, not to exceed 20 years, or for the lives of the named trust beneficiaries. When the term of the trust ends, the remaining asset (the golf course real estate) becomes the outright property of the City. Agenda Number: TO: Dwight D. Johnson, City Manager FROM: Laurie Ahrens, Assistant City Manage SUBJECT: Consider Future Study Sessions DATE: April 13, 2001, for City Council meeting of April 17, 2001 1. ACTION REQUESTED: Review the list of pending study session topics and, if desired, establish future special meetings. 2. BACKGROUND: Attached is the list of pending study session topics, along with calendars, for the Council's use in scheduling future topics or sessions. 3 Staff has suggested one new study session topic for consideration -- Elm Creek Interceptor Project. The Metropolitan Council has tentatively established a public meeting for Wednesday, May 30, 7:00 p.m., at Plymouth Creek Center to present information on the proposed project and possible sewer alignments. They will be notifying all owners of property in Northwest Plymouth of this meeting. The Council may wish to receive an update on the project from the Metropolitan Council prior to the public meeting. Community Development Director Anne Hurlburt has contacted staff at the Met Council to inquire if they would be available to do a brief presentation to the Council on May 1 at 5:30 p.m. (prior to the Board of Review reconvene meeting). Pending Study Session Topics at least 3 Council members have approved the following study items on the list) Joint meeting with EQC on Medicine Lake water quality improvements. late summer, videotape meeting). Joint meeting with school districts to discuss safety issues, traffic, future school sites, trends in population -- start with ISD 284. South Shore Drive safety improvements, including pedestrian patterns and Luce Line impacts, speed humps, and stop signs (late summer). Consider ways to minimize effects of exposure to second-hand smoke. Report on Snowplowing (May). Disposition of houses along County Road 101 bought by the City (late summer) Capital Improvements Program (July) Quarterly check-in with City Manager (next in May/June). Other proposed study session topics: Elm Creek Interceptor Project OFFICIAL CITY MEETINGS April 2001 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3 4 5 6 7 DAYLIGHT SAVINGS 7:00 PM YOUTH ADVISORY 7:00 PM SPECIAL COUNCIL 7:00 PM PLANNING COMMISSION, 7:00 PM HUMAN RIGHTS COMMENCES - COUNCIL, MEETING: City Council Chambers COMMISSION - set clocks ahead 1 Medicine Lake Center Streetscape Medicine Lake hour Room Imp., parking bays on Ply Blvd., Police 7:00 PM SKATE Room Training Room PARK INFORMATIONAL MEETING, Plymouth Creek Center 8 9 10 11 12 13 14 7:0o PM 7:00 PM EQC, 7:00 PM PRAC, REGULAR Council Council COUNCIL Chambers Chambers MEETING, Council Chambers 15 16 17 18 19 20 21 7:00 PM YOUTH ADVISORY COUNCIL, 7:00 PM BOARD OF REVIEW, Council Chambers M NG ION, CoufncilChamberss 7:00 PM HRA - Medicine Lake Room 11:00 AM CITY EMPLOYEE RECOGNITION Medicine Lake Room SPECIAL COUNCIL MEETING IMMEDIATELY FOLLOWING BOARD 7:00 PM PUBLIC SAFETY LUNCHEON, Plymouth Creek Center OF REVIEW): HOLLYDALE GOLF ADVISORY COURSE; FUTURE STUDY TOPICS BOARD, Police Dept. Library 22 23 24 25 26 27 28 7;00 PM PACT- Bass Lake Room 6:30 PM MEDICINE LAKE WATERSHED IWAMLOCALaUSINESS Couecu.R.ai..o,Nar S:W PM SPECIAL COUNGL ECC) MEETING. BASSETT CREEK SUB -COMMITTEE, JOINT POWERS AGREEMENT; FUTURE Medicine Lake Room STUDY TOPICS, Porq TMiMV R— TOD PM REGULAR COUNCIL MEETING, Cour11 CM6m 29 30 Mar 2001 May 2001 7:00 PM YOUTH S M T W T F S S M T W T F S ADVISORY COUNCIL, 1 2 3 1 2 3 4 5 Medicine Lake 4 5 6 7 8 9 10 6 7 8 9 10 11 12 Room 11 12 13 14 15 16 17 13 14 15 16 17 18 19 18 19 20 21 22 23 24 20 21 22 23 24 25 26 IL-- I 25 26 27 28 29 30 31 27 28 29 30 31 I I modified on 4/12/2001 OFFICIAL CITY MEETINGS May 2001 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3 4 5 Apr 2001 S M T W T F S 7:00 PM BOARD OF REVIEW HUMAN RIGHTS COMMISSION 7:00 HUMAN RIGIG HTS 1 2 3 4 5 6 7 RECONVENED), REGIONAL COMMISSION - 8 9 10 11 12 13 14 Council Chambers WORKSHOP, Plymouth Medicine Lake Crook Center Room 15 16 17 18 19 20 21 22 23 24 25 26 27 28 7:00 PM PLANNING 29 30 COMMISSION, Council Chambers 6 7 8 9 10 11 12 5:00 PM YOUTH ADVISORY COUNCIL TOWN 7:00 PM EQC, COUr1C11 7:00 PM PRAC, Council 10:30 AM - 4:00 PM PLYMOUTH HISTORY FEST, Parkers Lake 7:00 PM PLYMOUTH PANDAS ICE SHOW THE FORUM, Plymouth Chambers Chambers WORLD WITH THE Pari Creek Center 7:00 PM REGULAR CHAMPIONS", Plymouth lea Center 2:00 PM & 7:00 PM - PLYMOUTH PANDAS ICE SHOW "AROUND THE WORLD WITH COUNCIL MEETING, THE CHAMPIONS", Council Chambers Plymouth Ice Center 13 14 15 16 17 18 19 2:00 PM PLYMOUTH PANDAS ICE SHOW 7:00 PM YOUTH ADVISORYPLYMOUTH 7:00 PM 7:00 PM PLANNING 7:00 PM HRA - Medicine Lake Room AROUND THE WORLD WITH THE CHAMPIONS', COUNCIL, Medicine Lake TOWN MEETING, COMMISSION, Council Chambers 7:00 PM PUBLIC SAFETY ADVISORY BOARD, Library Dept. Police Plymouth Ice Center Room Plymouth Creek Center 7:00 PM YOUTH SERVICE AWARDS, Plymouth Crook Center 20 21 22 23 24 25 26 6:00 PM MILLENNIUM GARDEN GROUNDBREAKING 7:30 AM LOCAL BUSINESS COUNCIL, Radisson 700 PM PACT - Bass Lake Room CEREMONY, Plymoulh Creek Center Hotel 7:00 PM REGULAR COUNCIL MEETING, Council Chambers 27 28 29 30 31 un 2001 MEMORIAL DAY 7:00 PM YOUTH S M T W T F S Observed) - City ADVISORY 1 2OfficesClosedCOUNCIL, Medicine Lake 3 4 5 6 7 8 9 Room 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 modified on 4/12/2001 OFFICIAL CITY MEETINGS June 2001 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 May 2001 Jul 2001 S M T W T F S S M T W T F S 1 2 3 4 5 1 2 3 4 5 6 7 6 7 8 9 10 11 12 8 9 10 11 12 13 14 13 14 15 16 17 18 19 15 16 17 18 19 20 21 20 21 22 23 24 25 26 22 23 24 25 26 27 28 27 28 29 30 31 29 30 31 3 4 5 6 7 8 9 7:00 PM 7:00 PM HUMAN PLANNING RIGHTS COMMISSION, COMMISSION - Council Chambers Medicine Lake Room 10 11 12 13 14 15 16 7:00 PM YOUTH 7:00 PM 7:00 PM EQC, 7:00 PM PRAC, ADVISORY COUNCIL, Medicine Lake REGULAR COUNCIL MEETING, Council Council Chambers Council Chambers Room Chambers Flag Day 17 18 19 20 21 22 23 7:00 PM PLANNING COMMISSION, 7:00 PM HRA - Medicine Lake Room 9:15 AM MUSIC IN PLYMOUTH 5k RUN Council Chambers 7:00 PM PUBLIC SAFETY ADVISORY BOARD, Police Dept. Library LEAGUE OF MINNESOTA CITIES ANNUAL CONFERENCE, Duluth DECC 24 25 26 27 28 29 30 7:00 PM YOUTH ADVISORY COUNCIL, Medicine Lake 7:30 AM LOCAL BUSINESS COUNCIL, Radisson Hotel 7:00 PM PACT - Bass Lake Room Room 7:00 PM REGULAR COUNCIL MEETING, Council Chambers modified on 4/12/2001