HomeMy WebLinkAboutChamber of Commerce Lease Correspondencet ~ ~ PHONE (208)88
\\ \\ 1 1 I I I I I I I 111 ~ ~~
/~% M ERI DIAN
C hER OF COMMERCE
IiAM
~\ 416 EAST FIRST ST. • P.O. BOX 557
~~ \\\\ MERIDIAN, IDAHO 83642
~//lllllllll\\\
January 29, 1980
Cherry Lane Recreation, Inc.
c/o Pir. Wally Lovan
900 Long Blvd. 4421
Lansing, Michigan 48910
Dear Wally,
As you are well aware, the Meridian Chamber of Commerce was instrumental
in making Cherry Lane Golf Course a reality for the people of Meridian.
The concept of a municipal golf course was something many people in
Peridian had dreamed about for many years, and the Chamber worked very
hard to make this dream come true. Therefore, it is easy to understand
why the Chamber has such a vital interest in the success of our municipal
golf course, and why we have now taken an active part in trying to resolve
the dispute between Leavitt-Nu Pacific, the City of P~eridian, and Cherry
Lane Recreation, Inc. by forming a golf course task force. The task force
has spent time with Mr. Leavitt, Mayor Glaisyer, and yourself, and we have
decided that the primary concern of all parties involved is to select an
immediate course of action that benefits Cherry Lane Golf Course the most,
and will allow the operator of the golf course to move forward in making
preparations for the 1980 golf season. Therefore, we have concentrated
our efforts on trying to bring .about an immediate solution to get the golf
course going full-speed into the 1980 season, rather than trying to pinpoint
faults for the problems that have occurred in the past and place blame on
various individuals. Although we feel that these differences must be re-
solved, and we plan on addressing these problems at some later date, we
feel that the operation of the golf course, from this date forward, is the
key to maintaining a first class golf course for the City of reridian. In
the remainder of this letter, we will state some of the vital information
we have obtained in this investigation, and state the recommendations of the
Aeridian Chamber of Commerce, which we feel. arc equ.itablc, real..i_sti.c, and
workable for all parties concerned.
[Je met with Mr. Leavitt on January 22, 1980, and he made several. statements
that we feel are very pertinent to resolving this dispute over operation of
the golf course. First of all, he stated that he does not care ~~iho runs the
golf course, whether it be Wally Lovan, Rich Terrell, or whoever. He does
` , ~ ~ PHONE (208) 88b
\\\\\11II) IIIII11~~
/~
~ M ERI DIAN
CIiAMbER OF COMMERCE
\~\ 416 EAST FIRST ST. • P.O. BOX 557
~~~/ \\\\ MERIDIAN, IDAHO 83642
//IIIIIIII`
Cherry Lane Recreation, Inc.
January 29, 1980
Page 2
not have any personal grudge or ill-feelings towards you, Wally. He
said that if the City of Meridian decides that they want you to continue to
lease the golf course, then he would have no objections, providing that ,you
(or anyone else interested in leasing the golf course) meet the following
requirements:
1. Provide the City of Meridian with a detailed and complete
budget for the year 1980 and a pro forma budget for the
year 1981 as well. This budget must show that an adequate
cash flow is present in the operation of the golf course.
Also the operator of the golf course must have available,
whether it be in cash or in the ability to borrow, an
$80,000.00 - $100,000.00 source of funds that is available
throughout the year to mal',e necessary improvements to the
golf course, and serve as a reserve account that is avail-
. able in case of unforseen damages or repairs. This budget,
should be presented to the City of Meridian, and if they
are satisfied with its contents, then they will-present
thi$ financial data to Mr. Leavitt.
2. Mr. Leavitt wants the lessee of the course to be bonded.
3. You must provide the. city with a contract that shows your
agreement with a full-time PGA golf professional for the
year 1980, and preferably for future years.
4. You must present to the city a copy of your contract with
a full-time, experienced, qualified greenskeeper. You
must also show that you will provide an adequate staff to
operate all aspects of the golf course in a satisfactory
manner.
Mr. Leavitt repeatedly mentioned that your lease is with the city, and
that all of ,the requested information should be provided to the city for
their acceptance, and then they will make the recommendation to Leavitt-
Nu Pacific. If satisfactory information is provided to Leavitt, then he
wall accept the city's recommendation as to the lessee of the golf course,
and not proceed with trying to take legal possession of the course..
II ~ ~ PHONE (208)888-2a
~~\\\\III Illll//~~
~j,
M ERI DIAN
CIiAMbER OF
COMMERCE
\~\ 416 EAST FIRST ST. • P.O. BOX 557
~~j//111111111\\\\\ MERIDIAN, IDAHO 83642
Cherry Lane Recreation, Inc.
January 29, 1980
Page 3
We feel that most of these requirements are justified, and are in the best
interest of Cherry Lane Golf Course. Following is a list of the recommenda-
tions provided by the Meridian Chamber of Commerce, which we feel are
necessary to operate a successful and profitable golf course, and we feel
these recommendations can be accepted by all parties involved. If you will
provide the Chamber with all of the information that we are asking for,
then we will approach the City of Meridian and Leavitt-Nu Pacific and
present the information on your behalf, and try to resolve this dispute.
Our recommendations are as follows:
1. We ask that a detailed working budget for the year 1980
be presented to the Chamber task force, showing that the
operation will have an adequate cash flow, and that you
have the capability to provide the adequate capital
.needed to make the necessary improvements to the golf
course. This budget should reveal that you are able to
operate the golf course in a manner that will allow it to
be maintained in the best condition possible for a
second year golf course. We feel that it is not necessary
to set up an escrow account with $80,000.00 - $100,000.00
in it as Mr. Leavitt has suggested, but we feel that a very
specific and detailed budget must be provided so it can be
easily seen that there is a sufficient margin to operate
the course in a proper manner. This will be a very im-
portant tool for the Chamber to have if we are to present
a strong case to the City and Leavitt-Nu Pacific on your
behalf .
2. We feel that the most important ingredient in obtaining a
first-class golf course is to have an experienced, first
rate greenskeeper. You have stated in previous discussions
that you have made verbal agreements with Tom Funkliouser,
a man with 10 years experience as grounds superintendant
(Hillcrest C.C.), and that Tom will be your new greens-
keeper. We recommend that you finalize your negotiations
with P1r. Funkhouser, and present a written contract to the
Chamber as final and conclusive proof that we will have a
qualified greenskeeper for the upcoming year. We feel
. \\\\~C
~~~///11111
III ~ i PHONE (208)888-2g~ 7
VIII/~~
~ MERIDIAN
C~iAMb
ER OF COMM
~~ 4, ERCE
\\\\\~ 6 EAST FIRST ST. • P.O. BOX 557
11111\ MERIDIAN, IDAHO 83642
Cherry Lane Recreation, Inc.
January 29, 1980
Page 4
that this recommendation is the key element to solving
the dispute.
3. We feel that a golf professional is a very important aspect
of any successful golf course. Therefore, we recommend that
you present to the Chamber a copy of the contract that you
have with the golf pro you have selected to be the pro at
Cherry Lane Golf Course. You have previously mentioned that
you will probably have a part-time pro for a period of time
until you feel the course can support a full time pro. We
feel this concept is acceptable, providing that a part-time
pro works at the course on a daily basis, and provides an
adequate pro shop and is available for lessons on a daily
basis. YJe feel that with your presence at 'the golf course
as course manager, conducting activities at t}ie go]_f course
(leagues, tournaments, etc.), that a part-time pro would
suffice. We feel that a qualified, full-time greensl:eeper
is much more important to the Cherry Lane course at this
time rather than a full-time golf pro.
4. We would like you to give us a list of your proposed 1930
stafF, showing adequate personnel to operate the golf course
and the clubhouse. Last year, problems with the staff
aggrevated the situation at the ^ourse, and we feel that if
you show us that you will have an adequate and professional
staff, then this will alleviate another major concern of
P4r. Leavitt.
Wally, we feel that the conditions set forth by the Chamber of Commerce
are very reasonable and are very basic in accordance with operating a
successful golf course (any successful business). We want to settle any
differences in this dispute before the matter ends up in the courts, and
the golf course is damaged because of the inability of any of the parties
to properly maintain the course during such a legal battle. If this matter
ends up in the courtroom, then everyone comes out a loser, and we feel that
if you will provide us with sufficient information as we have requested,
F VIII III'// • ~ PHONE (208)888-2817
~ji
MERIDIAN
C~
AMBER OF
COMMERCE
~, \~\ 416 EAST FIRST ST. • P.O. BOX 557
f ~///III1IlIIII\\\\\ MERIDIAN, IDAHO 83642
Cherry Lane P.ecreation, Inc.
January 29, 1980
Page 5
then we believe i~1r. Leavitt will accept the proposal that L~lally Lovan
continue to lease and operate Cherry Lane Golf Course. Please provide
us with the information as soon as possible so we can seek to resolve
any differences that exist, and approach *1r. Leavitt and the City of
Meridian with this information. We are looking forward to seeing you
again.
Sincerely,
~-
~C~t~r~i~ ~~/late
Richard J. Terrell
President,
Peridian Chamber of Commerce
cc: City of Meridian - c/o Mayor Glaisyer
cc: Leavitt-Nu Pacific - c/o Don Leavitt
6
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'; U iJ s; !s '1' $ .R Y C O~ S T D is R A 'i' T U i+1
- 1979-3U -
'~:11., s~«Y,
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PROi~UG'1'S
-' _ y ;;1Z~ PRVUUCT
s ~ 1 lid 1JAG Iiigil Density Super Fair~ray
1'OT"AL
LIST f::_x i'
13.50 ~ ~,4_s;,'.i),~
:~1, L.iij. U')
Ll::iS 3~ QUA]liTIT7 ~ r
ati~, 3.~7. 1!i
I.L~S 3~b PHE-SEASON NE~r :~2,~8~.~?;!
,~~ ~tuantitp discount is available only vhen the total units as not„~
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-~',` _%'~ }r,-sea~,or~ miscount is offered for orders of 50 or more unitti
wh .... r,i; ce~i for_ delivery BY DECEMBER 19, 1979
!~ 1`~ iJ~G
i'LLi:~ I-C~~iNU
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- 1979-t3 t) -
PI~UD[ICTS
P>30DiJCT
iiigh ,Density Super Fairway
1)roaci Spectrum Fungicide (Winter)
Starter Fertilizer
I~ertiliiEr Plus Fungicid+~ (Minter)
NLN iiU Fertilizer Plus Iron
HD Greens Fertilizer
Iron-S
TOTAL
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„'
LIST ~~` :~''~,
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LES`i 3yi PRE-S$ASOx
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NET ~'3, h`) 1 . 1
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_' ~. .j ;
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"= i)~,iC:~~~1 LUr d~~lv~ry BY DECEMBEE 19, 1979
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4
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hi;~y Zr,u week
4
NEW HD rertilizer
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-~ •p t.r~mber 4th ti<~~k 4 NEW HD Fertilizer F1us Iron
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(Hinter)
~)~~:~uary :3r1 ~:~{~k 8 Broad Spectrum Funqicid; (Winter)
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(Minter)
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+{~ w :::~x 4 5tart~r F'ertilizF~r
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w~~ ;_s ;>1,ic~d for d~~liv~~rp BY DECEMBER 19, 1979
•
L]
!s II D G L T A R Y C O M S T D E R A T I O N S
- 1979-8U -
PROllUCT.i
PNODU CT
~_':r~:~:i-i. Spectrum Fuu<Ii~:ide (winter)
:~+.~i~_t4:r fertilizer
r'~~r: t ilizer Plus Fuiryici:ie (winter
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n!> ~r~~eYi.~ Fnrtilizc;r
Lrolr-~
,,~.1,~ E33~_,
C R
L
~~~ 7 1980
.cherry lane recreation, IIIC., 2040 interlachen way, meridian, Idaho 83642
..
pro
member December 30, 1979
Dear Rich,
treasure Congratulations on being the new Chamber President. It is a
valleys very rewarding experience. Would like. to wish you and the Chamber
quality.
public the best of every thing for the .coming New Year,
golf
club
It was nice talking with you today and learning of the Chamber's
continued interest in the golf. course. I would be pleased to give
you a report from Cherry. Lane Recreation, Inc. No organization has
ask for a report from the golf course.
private To review my back ground as pertains to golf courses, I was a
and member of the Broadmore Country Club, ilampa, Idaho, for about four-
group teen years, I served on the Board of=directors as Finance Director.
Instruction Ialso served on several other committees including the greens committee,
With that back ground, I was ask to be the chairr:an for Meridian
driving Chamber's first golf course committee. At that time the Chamber felt
range that it was to Meridian's interest that we have a public. golf course.,
It was the committees objective to get the City Council to accept the
golf course, as a gift, from Leavitt-iduPacific Company.
Cart
rentals - After the City agreed +.o accept the golf Bourse in principle, I
" was appointed by Mayor Storey and the Council to head a citizen's
committee to set up the operation of the golf course. On this committee
complete were three City Councilmen .
Ilne of
goltclubs, The new committee worked out for the City Council's approval, the
clothes, following agreements
shoes
and
accessories
1. To lease from Paul 1~'hite, White-Riedel Realtors, a house to
use as a temporary club house. ~-Jhi.te-Riedel Realtors would also
use the double .garage as their office. This lease was, to remain
until the other nine holes of golf were put in and until.the City
could see them-selves clear to build a permanent building.
2. :lire thru the PGA, nick Stanwood, PGA F'ro, to manage the golf
course for the city.
phone
(208)
888-4080
3. To consider buying from Mr. Bob Baldock used equipment that he
was using to work the golf course. Total cost - $8000.00- $9000.00,
4. Prepared a first years budget at $50,000.00.
5. Hire a greens keeper thru the Idaho Greens Kseper Assn.
' In the late summer of 1978 the 1~ property tax referendum was to be
placed ',on the Idaho November ballot. The City discussed the leasing of
the golf course because of what the referendums passage would to to the
city tax structure.
S formed a corporation and was the only one to come forth to work out
a lease agreement with the City. The Corporation was composed of Rich
Stanwood, PGA Pro anti hired as course manager, Bert l~.itchell and rr~yself.
We incorporated with $35,000.00 cash. Bert Mitchell and I agreed to make
up any cash flow that might be necessary.
During my negotiation with the City, Paul '~lhite called and said he was
ready to start the new club house for the City and his real estate office.
Upon learning of my pending agreement with the Cit~r, he insisted that he
had a verbal agreement to lease the club house to the City. I proposed and
he eagerly accepted that my corporation would live up to that agreement.:.
At the City Council meeting on October 2, 1978, the City Council agreed
to accept the golf course. In turn, Leavitt-vuPacific agreed to take care
of nine items as listed in the minutes of that meeting. On September 10,1979,
Lremirided the City of Leavitt-',1~,1Pacific agreement.
Upon taking over the operation of the golf course, we fo~ard that the
sprinkler system could only be operated by hand and had never operated as
an automated sprinkler system. Ray Conners came up from California and
corrected part of the probler.i in October 1978 and again in June 1979.
We blew out all 'of the sprinkler system as recommended by standard
practices and as recommended by Ray Canners.
There has been controversy as to its cause, Cherry Lane replaced over
5000 feet of sprinkler pipe with heavy duty schedule 80 PVC pipe rather than
the lighter schedule 40 PVC pips used in the original installation. This
was a $10,000,00 cost.
We purchased on a lease payout agreement $35,000.00 worth of equipment
for the golf course. Our equipment is very good for a 9 hole first year
course,
We purchased on a lease payout agreement $1k~,000.00 worth of golf carts.
We have seven rental carts, The average 9 hole golf course in the Pacific
Northwest has .less than three rental. carts per course:.:
_ -z
We installed fairway yardage signs, ball washers, trash receptacles and
custom made green flags. All of this is better than the average golf course.
We removed the pit run sand from the sand traps. It was-full of clay
and rocks as well as sand, ?Je replaced it with a good grade of screened
sand and this cost us an additional $3000.00 .
We are under O.M, Scotts fertilizer program., L~Ie use what they advise
us too use. We purchased $4300.00 worth of fertilizer during 1979. We
have already received part of 1980's fertilizer program which will cost us
$4800.00.
The pro shop carried about $2},000.00 in merchandise, our cost. We
carried some, of the top of the line in golf merchandise. -
The Idaho Health Department would not allow us to use a grill• for.
grilled cheese sandwiches or hamber~ers. We use the microwave to fix that
type of sandwich. irTe served Coffee, tea, pop, beer and hot chocolate. We
also have a refrigerated drinking fountain on the patio.
We had a total of 5 to 8 people working for us for most of the season.
We also had extra help during our pipe replacement period. In Sep+.einber
while I was there, I tried to hire qualified help but .found treat the other
golf courses were looking .for help also. At this time Bal3ock came out to
do a little work on the course and hired away my kid that ,diet: my hand
mowing. -
Also .Cherry Lane matched the $5000,00 in trees and labor that Leavitt-
NuPacific donated toward trees. The winter of 78-79 was extremely. hard
on trees and a good number of them were winter killed, Hoffman nursery has
just replaced part of the evergreens and will replace the decidious trees
in the spring time.
The insurance for 1980 has .already been paid..
Our expendutures for 1979, which includes our payments on our leases but
ldoes not include the cost of ~.he leased equipment, amoi,~nted to $120,000,00.
This was considerable more than our income. In addition, I have about
$20,000.00 in C.D.'s tied up as a guarantee of payment for our leased golf
course equipment.
I do not consider that much money involved in its first years operation
as operating on a shoe string as was reported in the news paper.
The loss for the year 1980 is estimated at $25,000.00..
In review of some of our trials with +,he golf course this past year,
Cherry lane was lead to believe on several occasions-that a number of
corrections would be made to the golf course and to the sprinkler system.
The last such agreement was made in July between Don Leavitt and ~Jita Loran.
In August Ilearned of Mr. Leavitt's.displeasure with Cherry Lane, I
called for Mr. Leavitt aL his Seattle office to clear up ary mis-ur-der.star-ding~.
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Ms. Eggert said Mr. Leavitt was in San Francisco but that, she would speak
for him. Ms. Eggert informed me that they were going to take the golf course
-.away from Cherry Lane Recreation.
In September I met with Mr. Leavitt. He also said that he was going
to take the golf course away from me, His parting words. to me-were to walk
away from the golf course before I lost any more money in 'the golf course. ,
From that point on. Nita and I were caught up in a discredit action that
came mostly from Cherry Lane Village development.
I do not know what most of the home owners think of me personally. I
do know that I need their. support. I also know that Cherry Lane being a
public golf course, owned by the city, can not give special privileges to the
home owners on the golf course. The home owners have to abide to 'the rules
of the golf course also,
They-have to come to the club house, sign in, pay their fee if not a
pass holder, and start on number 1 tee box. Some of the other paid fees have
threatened to "wrap a club around their neck" for jumping in front of them
for their golf play,.
A green is a delicate ,piece of grass and they can not pratice pitching,
putting or sand trap shots on them. One man was even praticing his iron
shots from one of them, diviots and ail.
Their children can not play in the fair ways, greens, or use the sand
traps as sand boxes. A well hit golf ball could be lethal. Their animals
should not use the-golf course as a sand box.
They can not put up KEEP OF THE (,BASS signs if they are going to live
on the golf course.
Every one whe+,her we be City, land developer, contractor, home builder,
home owner or golf course operator, has to homogenize their living habits
to fit•the needs of the city, neighborhood and neighbors trat surround us.
• Only that way can iae prosper.
In November we were led to believe by JUB that thgrwere on the golf
course to~make inprovements on at for us. We rented pipe for them,- used
our tractor and, fuel to pump water and let them use our parts and parts
shop. We also knew they were causing damage to the system due to the high
pressurers built up in the system with out sprinkler heads being turned
on with the pumps running. Due to the low water level and the dirt and
debree built up around the intake his was also pumped into the system, We
were dumbfounded b;;r the report that we heard came from their tirork. j-1e
only hear. rumors of reports...
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..Cherry Lane feels that the first difficult year is behind us. That the
golf course its self came thru 1979 looking better than the average first
year course. l4any players said it looked better than some of ,the older
courses located in the area.
We also feel that the pro shop is stocked better than the average shop
with quality merchandise. That our furnishings are better than average
thru out the club house. That our sandwich shop is handicapped by th Health
Department but we offer quality sandwiches and drinks.
We feel that our grounds keeping equipment is better than average for
a first year 9 hole course and is more than adequate to do a good service
on the course.
We have a greens keeper for the coming season who has many years of
experience and is fully qualified in all phases of grounds keepinga
We are making arrangements for a part time pro, until=such time that the
course can afford to support a full time, pro on its own. •
My proposed budget for 1980 is $96,000.00.
We will start upgrading and making the necessary corrections to the
sprinkler system and will not depend on any one to do it for us. We should
have done this sooner but we were convinced the corrections ~~ould be made
for us. Because of the monies involved this will be a three year project.
In the mean time we will .have additional hand watering to do to keep the
course looking nice. '~
Last fall the High School held a very successful district cross country
track meet at +.he golf course. We not only will be looking forward to this
kind of activity but will look forward to offering our cooperation in the~.r
golf program also.
With my coming back in March, I want to organize not only the twi-lite
league play for women and men but also the husband - wife, family type golf
activities during the summer. We ran a Couples Chapman last SeptemUer
while I was there. Every one was ready for another one.
I still believe that Cherry Vane Golf Course has the makings of a
quality public golf course. One that 1•ieridian can look to with pride. I
can work with anyone and hopefully all parties concerned-can again work
togeather in this endeador.
I would be happy to try and answer any questions you might have. Please
feel free to call me collect.
cc: Joe Glaisyer
Chamber Golf Course Committee
Sincerely,
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