Facilities and Transportation
Monarch Golf
June 5, 2024
Recommendation
• Committee to recommend to City Council
the renewal of a 5-Year Contract with
America Golf Corporation (AGC) with the
following provisions:
• Incorporate minor additions clarifying
ownership of equipment.
• Include termination clause upon
successful Lease Agreement with
another operator if needed.
• Confirm all other terms remain
unchanged.
Background
• The current management agreement with
American Golf Corporation (AGC) will expire on
November 14, 2024.
• Potential interruptions to golf operations if the
agreement expires.
• In 1997, AGC invested $8.1M (equivalent to
$15.7M in 2024) in renovations, including doubledeck driving range and course improvements, in addition to numerous Capital Improvement
projects.
• Positive economic returns despite industry
challenges.
Management Agreement Overview
•Administer and
Monitor AGC
Agreement
•Review and Approve
Annual Plan
•Set golf fees
•Receive gross golf
course revenue
•Develop capital
improvement plan
•Oversee CIP projects
City
Responsibilities:
•Submit Annual Plan
•Operate and manage
all golf course
operations
•Staffing, advertising,
customer relations,
maintenance, etc.
AGC
Responsibilities:
AGC's Track Record
Experience, positive
community relations, and
economic performance
support renewal.
Projected revenues of $6.2
million over next five years
validate agreement's
financial viability.
Robust financial
performance: AGC's
projected net revenues for
FY 2024 are $1,242,022.
Recent Golf Course
Inspection Report scored
95.5 out of 100 points.
Fiscal Impact
• No fiscal impact on the City’s
General Fund.
• All net revenues will be allocated
to the Golf Fund for
administration and Capital
Improvement Projects.
• Anticipated total net revenues for
the proposed 5-year term:
Approximately $6.2 million.
Next Steps
• Staff will return with a comprehensive
long-range plan for the golf course:
• Analyze market trends.
• Complete a 10-year financial forecast.
• Address budget deficit on driving
range and renovation projects.
• Identify goals and objectives.
• Present Golf Course Operational
Alternatives (RFP)
• Establish a clear timeline for
implementation.
Questions
and Answers