Battle Creek Parks and

Recreation

2015

Background and

History of Operations

1957

578 acres of land (known as

Charles Binder Park) is donated

to The City of Battle Creek

Deed restrictions require land to be

used for community recreational opportunities

1962

The City of Battle Creek builds an

18-hole golf course

1970

The City of Battle Creek creates an

enterprise fund requiring the golf course to pay its

own way.

1985

A 25 year renewable lease agreement for 60

acres is established with the Binder Park

Zoological Society

Background

History of Operations

1990

115 acres of land

adjacent to the golf course is

purchased by the City

of Battle Creek

1991

340 additional acres are leased to

Binder Park Zoological

Society

1995

1.64 additional acres are

purchased by the City

of Battle Creek

2000

The City invests 3.5

million dollars to add an

additional 12 holes, driving

range, clubhouse

and First Tee facility

Background

History of Operations

2008’s Southwest Michigan economic crisis greatly affected rounds of play and revenues to support the new facility and increased bond payments.

The City sold potential park property on Southwest Capital and used that revenue to help offset the golf course’s growing deficit.

Bond payments were restructured with the intention that the economy would turn around enough to cover the escalating debt payments.

Today’s Golf Market

Nationally the economy has taken an upward

turn, however, the number of rounds of golf

being played has not recovered to its

prerecession levels.

Local market continues to be saturated with

comparable golf courses.

Binder Park Golf Course

2015 Facility Usage

Approximately 40,000 golf starts each year

Year round facility offering traditional golf

for all ages and abilities.

First Tee youth golf program (4,500+ participants)

PGA Junior League

23+ golf leagues

St. Phil and Harper Creek High School golf

teams

Several non-profit fundraising golf outings

9-hole foot golf course

Binder Park Golf Course

2015 Facility Usage

Virtual simulated golf leagues

Winter Sports Park

Cross country skiing

Sledding

Snow shoeing

2015 YTD Budget

2016 Projected Budget Projected 2015 Proposed 2016

Income

Green Fees $276,697 $282,783

Memberships 69,340 71,980

Golf Cart Fees 215,803 223,297

Range 22,100 22,790

Club House - (Pro Shop, Lounge) 386,200 367,800

Golf Programs, Lessons & Sponsorships 101,666 101,666

Non-Golf Related Revenues & Misc * 2,176 19,000

Sale of Land 160,000

Transfers-In 51,201

Income $1,125,183 $1,249,316

Expense

Total Operating Expenses $967,714 $949,346

Bond Principal 160,000 165,000

Bond Interest 77,264 71,976

Bond Agent Fee 500 500

Expenses and Bond Payments $1,205,478 $1,186,822

Change in Net Assets -80,295 62,494

Unrestricted Net Assets Balance $100 $62,594

Budget Projection

2016 - 2020 Projected 2015 Proposed 2016 Projected 2017 Projected 2018 Projected 2019 Projected 2020

Income

Green Fees $276,697 $282,783 $282,783 $282,783 $282,783 $282,783

Memberships 69,340 71,980 $71,980 $71,980 $71,980 $71,980

Golf Cart Fees 215,803 223,297 $223,297 $223,297 $223,297 $223,297

Range 22,100 22,790 $22,790 $22,790 $22,790 $22,790

Club House - (Pro Shop, Lounge) 386,200 367,800 $367,800 $367,800 $367,800 $367,800

Golf Programs, Lessons & Sponsorships 101,666 101,666 $101,666 $101,666 $101,666 $101,666

Non-Golf Related Revenues & Misc * 2,176 19,000 $55,000 $130,000 $135,000 $140,000

Sale of Land 160,000 $70,000

Transfers-In 51,201

Income $1,125,183 $1,249,316 $1,195,316 $1,200,316 $1,205,316 $1,210,316

Expense

Total Operating Expenses $967,714 $949,346 $949,346 $949,346 $949,346 $949,346

Bond Principal 160,000 165,000 $170,000 $175,000 $180,000 $185,000

Bond Interest 77,264 71,976 $71,976 $71,976 $71,976 $71,976

Bond Agent Fee 500 500 $500 $500 $500 $500

Expenses and Bond Payments $1,205,478 $1,186,822 $1,191,822 $1,196,822 $1,201,822 $1,206,822

Change in Net Assets -80,295 62,494 3,494 3,494 3,494 3,494

Unrestricted Net Assets Balance $100 $62,594 $66,089 $69,583 $73,077 $76,571

Financial Position

As depicted in the projected budget overview, the

Golf Course is unable to continue to cover

operational costs with the escalating bond payments.

As the golf course continues on with its current means

of operation, alternate solutions need to be discussed

and a direction needs to be established that fits within

the community’s recreation needs, City’s financial

abilities and the land’s deed restrictions.

New Revenue Opportunities to

be Implemented

Wedding Receptions and other

Corporate Meeting/Event space

Outdoor Festivals, Events and/or Concerts in collaboration with other

community partners

Sale of 39 acre Collige Farm property, 2 residential lots in Woodland Hills, and 20

acres on the golf course (non-deed restricted property)

*estimated value $275,000

Other Non-Golf programming opportunities

295 Acres

Binder Park Golf Course

Operational Business Lease

with a 3rd Party

Golf Management Company

Simultaneous to the implementation of

new internal revenue opportunities, the

City will explore the possibility of

negotiating a 3rd party management

contract to operate the golf course.

THE PLAN:

What Action is needed

right now? Approval of a 2016 (calendar year) Golf

Course budget prior to January 1, 2016.

Staff will develop and implement non-golf

revenue producing programs/business

plan beginning with the 2016 budget year.

City will market and begin the sell of

excess land to support Golf Course

operations in the near term.