Fiscal Note
The proposed resolution authorizes the City to enter into an agreement with Michael and Jocelyn Keiser and the Madison Parks Foundation for a donation of improvements to the Glenway Golf Course. The estimated value of the donated project planning, design, and construction is approximately $750,000. There is added value in the donation in having an accomplished golf course developer lead the work of design and construction. The City would be recognized as the owner of the improvements.
The Glenway Golf Course would not be operational for much of 2021 while this work is completed, which would negatively impact course revenues. Estimated revenue losses for 2021 are $400,000 based on revenues received in 2016 through 2020. Parks staff indicate that these revenue losses would be offset by approximately $200,000 in variable costs associated with course operation, resulting in a net loss of $200,000 in 2021 for the Golf Enterprise. This is an increase over the course’s historical net losses, which ranged from $27,000 to $120,000 from 2016 to 2019. In 2020, the Glenway Golf Course realized net revenues of nearly $50,000 associated with the increase in golf due to the pandemic. Parks staff speculate that some golfers would instead choose to golf at other City of Madison courses, but the level of golf round transference is currently unknown.
The plan calls for changes that align with the City’s sustainability goals. Specifically, the plan calls for a significant reduction in inputs (fertilizers and chemicals), as well as reduction of mowed turf areas that will be converted to natural areas. In addition, a portion of the donation will be to provide investments into updated, energy efficient mowing units that will reduce time, emissions, and costs associated with mowing operations. In total, staff estimates that the project should have a net positive impact of between $20,000 and $60,000 per year. If this increase in revenue is realized, it would take between 3 and 10 years to pay back the foregone revenue from the 2021 improvements. If maintained appropriately, the improvements should last longer than that timeframe.
Title
Authorizing the Mayor and City Clerk to enter into a Donation Agreement and a Developer’s Agreement with the Madison Parks Foundation and Michael and Jocelyn Keiser for the Privately Funded Improvement of Glenway Golf Course.
Body
WHEREAS, the Glenway Golf Course first opened for play in 1927 and, while consistently popular and profitable, has deferred capital needs that have not been met in quite some time; and,
WHEREAS, By Resolution 19-00456, Legistar 56004, adopted June 18, 2019, the Task Force on Municipal Golf in Madison Parks was created by the City of Madison Common Council to make recommendations regarding the future of municipal golf in Madison; and,
WHEREAS, The Task Force reviewed the current operational model for the Golf Enterprise including course utilization, current operations, staffing, capital infrastructure, and financial performance of the courses; and,
WHEREAS, The Task Force received substantial feedback and input from the community through surveys, focus groups, two town hall type meetings, and direct testimony (both written and verbal); and,
WHEREAS, the final report contains recommendations regarding continuing to offer municipal golf, removing the enterprise fund designation, updating the mission, closure of holes and seeking alternative operating models for specific courses, enhancing integrated pest management practices, increasing environmental sustainability, promoting equity and inclusion, increasing utilization of courses for non-golf purposes, responsible capital investment and refraining from selling land; and,
WHEREAS, following the acceptance of the Task Force Report, the City was approached by the Madison Parks Foundation regarding a potential donation at Glenway Golf Course that would promote many of the recommendations from the Task Force; and,
WHEREAS, Michael Keiser is a Madison resident and a renowned golf course developer, recently developing the world-famous Sand Valley courses in central Wisconsin; and,
WHEREAS, Michael and Jocelyn Keiser are willing to donate the time, expertise, and private funding to create and implement an updated Master Plan for Glenway to reimagine municipal golf, enhancing and improving the course while making the property more inclusive and welcoming to the entire community; and;
WHEREAS, the Madison Parks Foundation, the City’s official non-profit fund raising collaborator for the City’s parks and open space system, is agreeable to acting as an intermediary party to effectuate the donated master plan and physical improvements to Glenway.
NOW, THEREFORE, BE IT RESOLVED, that the Mayor and City Clerk are authorized to enter into a Donation Agreement with the Madison Parks Foundation and Michael and Jocelyn Keiser for the Glenway Golf Course Improvements, on a form and in a manner that is approved by the City Attorney and the Parks Superintendent; and,
BE IT FURTHER RESOLVED that the Parks Superintendent is authorized to accept, on behalf of the City, an updated Master Plan for Glenway Golf Course and to approve any plans and specifications for the privately funded Golf Course improvement project; and,
BE IT FURTHER RESOLVED that the Madison Parks Foundation is authorized to construct public improvements to Glenway Golf Course consistent with the updated Master Plan, in accordance with the terms of the Contract For the Construction of Public Improvements That Will be Accepted by the City of Madison at the sole cost of the developer; and,
BE IT FURTHER RESOLVED that the Mayor and City Clerk are authorized to enter into a Contract For the Construction of Public Improvements That Will be Accepted by the City of Madison with the Madison Parks Foundation for the Glenway Golf Course Improvements, on a form and in a manner that is approved by the City Attorney, the Parks Superintendent and the City Engineer; and,
BE IT FURTHER RESOLVED that the Mayor and City Clerk are authorized to execute, deliver, and accept and record any and all documents and take such other actions as shall be necessary or desirable to accomplish the purpose of the Donation Agreement, in a form approved by the City Attorney.