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Home My WebLink AboutLakeview Golf Course Lease Ext. Page 1 of 1 Tara Green From: Ted Baird Sent: Tuesday, April 18, 20063:45 PM To: Bill Nary Cc: Will Berg; Tara Green Subject: FW: Current financial model for LakeView Meridian Follow Up Flag: Follow up Flag Status: Green Attachments: Lease Extension Model 1 0.5.05.xls This is on the Precouncîl agenda for next week, It pertains to an upcoming amendment to the Golf Course Lease to firm-up the terms of the second 30-year lease period. From: Kelly Fuller [mailto:kelly@oaaslaney.com] Sent: Friday, December 23, 2005 9:42 AM To: Ted Baird; Kim Clarke Cc: T. Erik Oaas Subject: Current financial model for LakeView Meridian Ted, Here is the most recent financial model. You will probably want to print the tabs 'Assumptions' and 'Summary' only. (The tab 'Model' shows all years and the 'Summary' tab rolls the years into 5 year increments to make it more readable.) Kim, Please print the first two tabs for Erik. Thanks, Kelly Fuller 4/21/2006 RECEIVED APR 1 8 2006 .OAAS LAN ~LC City Of Meridian City Clerk Office February 15. 2006 Councilman Shaun Wardle President, Meridian City Council City Hall Meridian, Idaho 83651 Dear Councilman Wardle, We are pleased to be invited to the City Council to provide you a status update and present our plans for the LakeView Meridian Golf Club. Additionally, as promised we have prepared a proposal for the 30 year extension to the lease executed last fall. First, the lease extension proposal incorporates the concept that the City of Meridian ought to be compensated for its ownership of the course based on the revenues earned at LakeView Meridian Golf Club. There is a simple formula for calculating the amount earned by using a fixed percentage of each revenue component, (i.e. green fees, cart rental, food and beverage and pro shop), summing all four component amounts and comparing that total to a guaranteed minimum payment. The City will realize the larger of the two amounts fTom its investment subject only to a deduction for capital improvements (i.e. allocation of 25% of total eligible expenditures), The plan summary is attached. Second, we are pleased to tell you about all the exciting and positive changes we have made to the Clubhouse, and the status of the Maintenance Building as well as the planned site improvements., A site drawing is attached. Finally, we have exciting plans for the first three hole improvements to be undertaken this year. We will begin reconstructing the greens on holes 1, 6 and 7 and installing other necessary changes as soon as the weather allows. The drawings showing the proposed changes to each hole are attached. Thank you again for your support, we hope the City of Meridian is pleased with our progress to date and we look forward to the exciting things to come at Lake View Meridian Golf Club. Vl! ~UI~~ ~~~IS Lake eridian Golf Club P.O. Box 2020 . Boise. Idaho 83701 Ph. (208) 429-9596 . Facsimile (208) 429-9597 Oaas Laney LakeView Meridian Golf Course Lease Analysis - Assumptions February 15, 2006 Minimum Payment to City (Years 2035 - 2065) Minimum lease rate beginning in 2035 is $100,000 per year Minimum lease rate beginning in 2045 is $150,000 per year Minimum lease rate beginning in 2055 is $200,000 per year Alternative Minimum Payment Calculation Revenue Source (A) * Revenue Multiplier (8) Greens Fees 5.0% Golf Carts 4.5% Food & Beverage 2.5% Pro Shop 1.0% = Gross Lease Amount The City of Meridian will contribute ~5% of Capital Improvement expenditures beginning in 2035. Capital expenditures that are eligible for the City's contribution allocation will include; course repair, hole redesign, irrigation, golf carts and other maintenance equipment, pressure washer, drill seeder, maintenance facility and other similar items. These contributions will be used to facilitate the course quality of play, and assure the City of Meridian's crown jewel to remain in pristine condition. Daas Laney LakeView Meridian Golf Course Lease Analysis - Summary February 15, 2006 Years 31 - 35 Years 36 - 40 Years 41 - 45 Years 46 - 50 Years 51 - 55 Years 56 - 60 Hypothetical Revenue 48,316,610 61,665,598 78,702,666 100,446,761 128,198,349 163,617,190 Hypothetìcal Net Income (10% of Revenue) 4,831,661 6,166,560 7,870,267 10,044,676 12,819,835 16,361,719 Annual Capital Improvements 2,289,927 2,654,653 3,077,471 3,567,632 4,135,863 4,794,599 Gross Lease Amount (A) . (8) (See Assumptions) 1,968,902 2,512,873 3,207,134 4,093,206 5,224,083 6,667,400 Less Cìty's Portion of Capital Improvements Gross Lease Amount Less Capital Improvements (C) 1 ,396,420 1,849,210 2,437,766 3,201,298 4,190,117 5,468,751 Minimum Payment (5 year period) (0) 500,000 500,000 750,000 750,000 1,000,000 1,000,000 Annual Minimum Payment 100,000 100,000 150,000 150,000 200,000 200,000 Total Payment to City of Meridian (2035 - 2064) Greater of (C) or (0) 1 ,396,420 1 ,849,210 2,437,766 3,201,298 4,190,117 5,468,751 Payment as a Percent of Revenue 2.9% 3.0% 3.1% 3.2% 3.3% 3.3% Payment as a Percent of Net Income 28.9% 30.0% 31.0% 31.9% 32.7% 33.4% Oaas laney lakeView Meridian Golf Course lease Analysis - Summary February 15, 2006 Years 1 - 5 Years 6 - 10 Years 11 - 15 Years 16 - 20 Years 21 - 25 Years 26 - 30 Total Payment to City of Meridian (2005 - 2034) Fixed Payment I - 24,000 30,000 30,000 30,000 30,000 I -;¡./ 'r/ IJ oI6Gr-. - SoIIen Grewo C<>nII:u~ Slope, - Q.., Shape. SIr8 end Loc:aIIan To RerncIn ....... - Lcwer CMoraI HeIØIt 01 Green CorrØeo< To IncrWOI8 VIIIbIIIv 01 Water _1118 -1Iernov8 -. ., ,l ~ '><.° 'Çì ~ ì ~'r 'x" I (!:, ~ '/' !J À~~ \1:1" \" ) .I kD< \Iß VJ " - ,V ::; ~ ,?rr~ -1}..J' ~T.. i> ~jJ .'(11"" \e" \ j.? "\v:y Jr ,; - 0mcmenIaI T_For C<>Icr Md To Frcmø The Gc/ Hdo, Løge SoII- To Add C<>nII:u (1ypJ. (1-2 n..-. n hi.) 0 00 I'IanI 0marn8ntá ~ I'or C<>Icr Md To Frcmø 1he GoII- 'o...o!~ '/fIo"'" P"-~ b rø1Þ;'<:t' ~:::~I' #6 Existing Green #6 Proposed Green #7 Existing Green #7 Proposed Green Notes: 1. This Plan is conceptual and is subject to change. ,~ 2. Th is Plan is not to be used for construct ion. '- r ~/--r-\ ~ ..." t r1 ¡j~ .? ~~ #1 Gr-. - SoIIen Gr-. CcnIcu. - Gr-. s.øpe. SIzø end Loc:aIIan To Remon ....... - f'Iac8 A &.r.k8r front lBIt And BocII CenIer/RIgN, 3793 sf. 3793 sf. 3227 sf. 3227 sf. North Scale: 1"=70' t~J IA~ 2m:~:'c~:::' Fe""'..., I. .... 1400 Ta1aatore W..,. MorIdIuo, IdaIoo c-J - Holes #6 & #7 Preliminary Master Remodeling Plan Easle. Idaho 89616 œlli (211:81 8t.:iHI017 o~l~oa}799-9707 2012 Lakeview Golf Club Sheet ~ ~ I 8 0 ~;-. / ~ _.~""""" ..,-- ,-"" .".. ,., ""',,"" ,.. --.-,,---.- --_._--_.._---_.._.."-"-------_._--,,-~,,_.,,._,,, .".,. '" ,..". - "". ----." ,,--....-... - ..".,,- -'-""-'-"""'-"'---"------ ---;/ '1 ß L? ' - dl ~ :j II¡k J. l I.ev8I Tee ':1 ,t? " '>,0 'Çì II I\!- ~ f' tI .}.t;'f "J!I y '(~ j ~O< \é rl '" kt1 ~~ \'/ .f \-~e.. lr \ -\\-~~ #6 GnIen . Soften SIøen Conlolr/11edUC8 SI- 0 Green Shape. SIre and lacaIIon To ~ AlII. . . Lcr.o.<er 0VeIaII HeICIhI or Green CorrØe>< To L-ocrec8B WbIDIy ÖI WaI8r _1M -Remove_. 10 II. WIde SateIy SheI!. PIon! 0InamenI0I - For Cola' And To - The Goff Hole. !age Salt - To Add ConIol.r (typ.). (l-2 II maIL In hi.) 0 00 I'IonI 0mamenIaI- For Cola' And To frame The Golf Hole. ,-~,,~ "" ..... '0 ,j. ",0 1;)1>4"-,; ~"I ~'Q~' .~l; 1"' -A Notes: 1, This Plan is conceptual and is subject to change, 2. This Plan is not to be used for construction. #1 Green - SoIIen Gr--. ConIol.r, - Green Shope. Sloe and locoIIon To IIemoh AI IL - P\oce A!kmker FrcnIIsII And Back CllntllrIRllt>!. #6 Existing Green 16 Proposed Green #7 Existing Green 17 Proposed Green 3793 sf, 3793 sf. 3227 sf, 3227 sf. tI. ~/1'\ ~ ..!¡"...¡J ffi ~ *" t VtJ ~~ North Scale: 1"=70' (Je.¡J IA~ ~;!:~:'D:1::: Fo'..,..r, " 2005 t400 TaIamon W.,., ModdJan, Idaho (:lOB) .... Lakeview Golf Club Holes #6 & #7 Preliminary Master Remodeling Plan 2012 Sheet