What is the benefit City Council will perceive receiving from the proposed leasing of the Thompson Park Golf Course to a local group wanting to run it in 2027
Well, there is $21,000 in new revenue from rent...Roughly the cost of two Christmas Parades. That will cover much of the legal bills for drafting the agreements and preparing the bid for home rule legislation. But it's money.
Presumably the new tenant will get their own electric and water meters so that's a plus for the City. The City will not have to worry about the rickety golf carts and perhaps the biggest savings will be reduced staffing as city employees will no longer cut the grass, and the new tenant is using a lot of family for staffing, saving them payroll costs.
Of course you lose the revenue streams from greens fees and on site advertising like Tee Box signs. But those transactions should generate sales tax...Modest, yet, but something.
Another savings would be maintenance of equipment and the City would no longer have to buy an ice machine at taxpayer expense.
This is the view Council is promoting. Not addressed is long term continuity but for people who are bowled over by numbers like 21,000 this may be the perfect fit.
The only Council Member not immediately embracing the resolution offered for Monday but he will likely go along. For now Mr. Shoen is waiting for "the numbers."
32 comments:
It's a shame that the 12 million dollar ice rink folly will never break even, let alone make a profit.
There is no sales tax collected on city property, and the electricity is free. So is the water and sewer
Gosh it is funny that you have conveniently left out the operating loss the taxpayers have incurred over the last few years, that accounts for a major reason.
Remember it's always straight but never forward.
$21K from rent isn’t worth the hassle that’s.002% of the City budget. Why bother? sell it!
Ben Onley
Bottom line is the COW can thank Cliff, Lisa and Patrick for this mess. Taxpayers were told it was "turn key" and a money maker. Once they found out it loses money, then Cliff changed the narrative to the purchase was "for the land". Lease it and cut your losses. In a hundred years or so, we might break even.
You avoided my question Mayor, what percentage of your clientele work? IF they are supported by the "guvment" then technically, you are profiting from that same guvment. I am demanding an answer!!!!!
Only stupid people pay taxes
This sounds exactly what the city needed and wanted
Ben Shoen is waiting for the numbers. Good.
That's what every Council member should be doing.
The question isn't whether $21,000 in rent is better than losing money under the way the course has been operated.
The question is whether leasing it for $21,000 produces a better five- and ten-year result than operating the property properly as a municipal business.
The City would shed payroll, carts, maintenance and some operating risk. But it would also give up greens fees, carts, tournaments, advertising, food and beverage, events and whatever future revenue the property could produce. Those numbers have to be compared.
And be careful with the old “loss” figures. Capital purchases such as mowers and electrical improvements were charged to the year they were purchased. That's valid municipal accounting, but it is not the same thing as the recurring annual cost of running the golf course.
Revenues have been increasing, while the reported loss has been declining.
Andrea Doane may have presented a perfectly reasonable proposal. This isn't about knocking her. It's about determining what is worth more to the taxpayers:
$21,000 rent and transferred risk, or the long-term value of operating and developing the entire property ourselves.
Maybe the lease is the better deal.
Maybe municipal operation is. Show us both first.
Cliff Olney
I hope the city has funds available to place a recognition plaque honoring Cliff Olney and Mrs Ruggiero for buying this lasting money pit.
🎯
FORGET THIS DAMN PARADE JUST DRIVE DOWN FACTORY STREET OR VISIT WALMART U WANT A PARADE OF NUTS HIT THOSE TWO SPOTS.
8:57 AM - Jim Mills used an accounting presentation that lumped major capital purchases into the first two years they were bought, and the result was a media headline loss figure that made the ongoing operation look far worse than its recurring cost.
Whether that was his intention or not, that is the picture the public was given for the effect it has had. And I understand why.
Maybe you do too. Or maybe you just didn't dig deep enough into the story to find the truth?
Cliff Olney
Clifford Gilbert Onley, III
Not a lawyer or attorney.
Not an engineer.
Not a CPA.
And DEFINITELY not an MD or PA.
Care to comment on your information to the citizens that it was a "turn key" money maker? You reviewed the books Cliff? What happened? You have never run a successful business that is what happened.
Jeff Graham, the major benefit to the city is that they receive the professional service of running the golf course expertly with experience. Something the city is unable to do itself without hiring an expert at a substantial salary and hoping that employe is smart enough to run it, but we’re just in that fine line between somebody smart enough to run a business but not smart enough to actually own one themselves. And as a bonus, leasing it costs the city nothing.
My name is Gary and I am totally obsessed with Don Trump, thank you for being my orange male god.
Nobody cares what you have to say Cliff! You are the reason we are in this mess to begin with. Thank you Cliff, Lisa, and Pat
Says the guy that got us in the current situation. No thanks.
Care to comment on 12:19's post, 11:43?
Not your city, not your bizness Gin Nut.
Thought you saw the numbers and we should be rolling in cash by now. That was a lie only you were used by two developers
Says the non-city resident
Dannie/2:00, if you paid taxes ,Ike other people you would care. Then again, I'd expect you to support cliff and the others.
Clifford Jr., 12:19. His boy is the third.
I guarantee that Dan pays FAR more in taxes than you, Jiz/Garie.
4:42PM - Yes. lol. They "hide" these facts in books.
You too could become any one and learn about anything you like.
Try opening one.
Cliff Olney
Maybe they hide them in books for you layman types to read, Clifford. But not the textbooks I read in college decades ago.
Cliff flip flops like a cold fish out of water.
Funny how you tell someone to open a book when you have not, CliffGPT.
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