HomeMy WebLinkAboutIR 7589 INFORMAL REPORT TO CIT . COUNCIL MEMBERS No. 7589
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March 12, 1992
DoE 40RT� To the Mayor and Members of the City Council
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rex"y Subject: UPDATE ON PRIVATIZATION OF PECAN VALLEY GOLF COURSE
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In the fall of 1991, the American Golf Corporation (the current lease contractor at Z. Boaz
Golf Course) expressed an interest in leasing Pecan Valley Golf Course. In response, the
City Council requested a review of the overall golf enterprise program.
A presentation was made to the Privatization Committee of the City Council on
February 18, 1992, including the Internal Auditor's evaluation of contract performance
by the current leasees; a financial performance review, capital improvement history and
comparisons of current financial performances of the City and lease management
companies; and a specific financial and capital performance history for Pecan Valley
including potential lease management fees should the facility be leased. A number of
observations were made related to the benefits and restrictions of lease management and
a series of alternatives ranging from minimal or no changes to the current program to
additional leasing and/or private development of other sites were identified. Due to
requirements within the current lease agreement with the U.S. Army Corps of Engineers
for the Pecan Valley property (The lease agreement with the Corps of Engineers
currently requires that all revenues generated in excess of operating costs at Pecan Valley
be spent on improvements to the golf course and surrounding parks.), and current
contracts performance levels,it was recommended that no further leasing be considered
at this time.
The Committee requested that the City Manager investigate the potential for
renegotiation of terms within the Corps of Engineer's agreement to allow expenditure
of net operating funds at other current or former federal properties outside the project
area. In addition, should the terms of the existing agreement remain non-negotiable, a
schedule of improvements is to be developed for the project site, including the
identification of any additional operating costs which may be incurred as a result of any
improvements. Based on the above, staff was requested to review performance
measures to compare financial and capital gains which could be achieved under the
enterprise fund and lease management structure. The above is to be presented to the
Privatization Committee in six months.
In a related matter, the committee requested that a report be submitted within 90 days
regarding the potential for private development of a golf course on other sites.
Development costs would be fully underwritten by the private sector and lease
management would be contracted on a long-term basis.
Please let me know if you desire any additional information.
OFFICIAL RECORD
CITY SECRETARY
'NA Fl. VJORTN�-
/Da Iv ,ryManager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS