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debt is fully paid in 2012 and the Golf Course starts to generate a positive cash <br />flow of approximately $400,000 per year in 2013. <br /> <br /> <br />Review of Golf Course Alternatives: <br />Staff has done some initial consulting with different golf course professionals <br />and are encouraged that the City appears to have a variety of potentially viable <br />options from which to choose. Listed below are alternatives for the study of <br />the Golf Course and some initial staff comments about each. <br /> <br />Level 1 – Seek additional revenue and/or changes to operation <br /> <br />1.) Status quo with refinancing of debt: <br /> If the billboards go through the City will need to refinance the bonds as <br />taxable which will save the City $7,261 per year. Refinancing of the <br />current tax-exempt bonds would net an additional $27,655. Not enough <br />to offset the heavy debt. <br /> <br />2.) Billboard revenue: <br />The City is currently pursuing this option. However, even with this <br />additional revenue, internal loan debt continues to grow $40-50,000 per <br />year until 2013. <br /> <br />3.) Cell phone towers: <br />This a possible option to explore in order to increase revenue. <br />Each lease could generate approximately $10,000-15,000 per year. <br />Typically, the lessee would seek out the location needed for a tower. <br /> <br />4.) Restructure Course financing (e.g., write-down or write-off internal debt <br />plus refinancing): <br /> This relieves the Golf Course of debt and hastens its return to positive <br />cash flow, but short-changes other City Funds that could be paid back <br />over time. <br /> <br />5.) Privatize Golf Course operation: <br /> This may marginally increase the City’s operational profit, but would not <br />significantly address the large debt obligation. This scenario requires <br />thorough feasibility and market analysis, which may require an <br />investment of additional city funds. <br /> <br />6.) Partnership with another course(s): <br /> This may marginally increase the City’s operational profit, but would not <br />significantly address the large debt obligation. <br /> <br />Level 2 – Redevelop property and/or expand operations <br /> <br />1.) Sell and/or develop unrestricted land assets: <br /> Land that is unencumbered by deed restrictions (e.g., the current <br />driving range land) could be sold for private development. This would <br />be a one time cash infusion that could be used to buy-down debt. The