Golf Complex Land Swap Proposal Information

WHY IS STAFF CONSIDERING THE SWAP?

In the last ten years, the three public golf courses closest to Alameda have invested in upgrades or complete top to bottom redesign and reconstruction.  Monarch Bay in San Leandro and the Chabot and Metropolitan courses in Oakland are far more competitive in luring golfers than they were in 2000.  Moreover, "Tigermania" is over -- and it shows.  Demand for golf is down nation-wide.  Consequently, in the last ten years the number of rounds played at Alameda has dropped by 50%, from 206,977 rounds in Fiscal Year 2000-2001 to 103,760 in Fiscal Year 2010-2011.  The weakening of market demand has impacted revenues at the Complex.  In FY 2000-2001 we collected $3.4 million in greens fees and monthly passes; in FY 2010-2011, we only took in $2.3 million, a decline of 31.9%.While most of thi drop took place in the 2001 2005 period, unless something is done soon, the General Fund will be forced to subsidize the Golf Complex within the next five years.

In addition, the Corica Golf Complex is in serious need of repair and upgrade.  A study performed by the National Golf Foundation in 2007 told us that we need to invest $6 to $8 million back into our courses in order to stay competitive with our neighbors.  That bill doesn't even include work that is needed at the Mif 9-hole course.  With the General Fund in structural deficit and unable to provide funding to the Golf Complex, we must take steps to preserve our Golf Complex now, and for the next 30 years. The City’s future ability to keep the Corica Golf Complex open as a 45-hole facility lies in the balance right now.  The facts are clear:  without a major investment in infrastructure -- and soon -- we run an undeniable risk as to whether we can afford to keep the entire facility open at all.

A proposal was made by Harbor Bay Isle Associates (HBIA) in April 2011 that offers to exchange their land at North Loop Road, plus $7.2M payment, for City land where the Mif 9-hole course now sits. HBIA wants to build 130 homes on that site. The City can use the money to repair the golf complex, maintain 45 holes, and build 3 new multipurpose sports fields at North Loop Road. 

Below is all the information related to this proposal:

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1. FAQ's - the most frequently asked questions about the proposal.
2. Timeline of the Process - this lays out the order and timing of how the process will play out.
3. National Golf Foundation Report - this 2007 study states what is needed to keep Alameda golf viable.
4. The three Mif land appraisals - Appraisal One. Appraisal Two. Appraisal Three.
   
5. Map of the proposed properties to swap - shows the land at the golf complex and North Loop Road to be exchanged.
6. Map of proposed housing - shows the sitemap of the proposed housing.
7. Map of proposed new sports fields - shows the proposed new sports fields at North Loop Road.
8. Report proposing deal points for a new management agreement with KemperSports - The City will need a management agreement with Kemper whether the land swap happens or not. Without the land swap money, the City would renegotiate the numbers with Kemper. 
   
9. Here are four Revenue & Expenditure Projections depicting when the Golf Complex would need to be subsidized by the General Fund.  In all four scenarios, No money is taken from golf by the City going forward:
       1.    Scenario 1
       2.    Scenario 2
       3.    Scenario 3
       4.    Scenario 4
10. North Loop Land Appraisal.
11. Harbor Bay Isle Association Agreement.
12. Request for Proposals for Operation and Maintenance of the Chuck Corica Golf Complex.